So, what's a good stock to buy as the market is super cheap, a question. A lot of people are asking right now and what better way to plan this out with my little sister, i haven't filmed a video with her in quite some time. I hope that you guys learned something new and if you think that we should film future videos together, all you literally have to do is destroy that like button and make sure that you subscribe to the channel. So let's go ahead and actually uh start sharing.

My screen and i actually already asked her - and this is something that you're getting a little bit more into right. You're saving money, especially as market conditions, are very, very cheap, uh we're going to be breaking this down and planning out the entire trade so facebook. As of last year right, so this is going to be november of 2021 was trading at around three hundred and eighty dollars a share from where we're at right now at current lows of a hundred and ninety dollars, a share uh according to aftermarket hours, so 190, A share facebook stock has dropped 50 percent. So when a stock drops 50 percent, what percentage roi potential does it have for recovery? Do you know fuji? No, no one you're working up right.

You lose 50 percent, but when you make it back, it's twice as much. So, look at that, so it's 100 roi math is crazy. This is wonderful and she just graduated this year so sure. So one of the things that i do want to share with you is like yeah.

Facebook is really cheap, but a lot of different stocks are very cheap right now, so, although the stock is cheap, one thing that we have learned in the past five months as the markets have been selling off is the cheap can always get cheaper. So this is where we're going to talk about position size a little bit, but before we even do that, i want you to also know what has caused facebook to dramatically drop because a lot of stocks are down, but not everything is down 50. So as of not last quarter but the previous quarter before that that was at the end of, if i'm not mistaken, uh q4, they announced it, i'm sure you heard of it. They announced their transition from facebook to now meta, yeah right and that's where they're now spending a lot of money.

I think their first quarter in doing so, they blew through 10 billion dollars and you have to think when a company is publicly traded and they report this they're reporting that they're not making as much as before, because they have such a large expense because they're investing. Hopefully, for the future into meadows, so the way that i view facebook right now is you know: markets always tend to recover and rightfully so. But facebook has such a focus right now in meta or the metaverse that if it doesn't play out the way that they originally expected, it might actually do them more harm than good. So if you believe in the metaverse and if you believe that that is where the future is going, then not only can facebook potentially recover to previous eyes but surpassed that because they've completely pivoted to that.

So, in that sense they would be one of the market leaders in metaverse, but i just want you to understand that that is one of the main reasons that it's dropped significantly is fundamentally they're earning reports are not as well or as good as they were before When they were very, very bullish with that being said, i mean: what is your intention with facebook? Are you trying to buy it now and sell it in a month? Are you trying to buy it now and hold it for years? I'm asking you i i i want you to plan this out according to what your intention is. That's why i'm here, i kind of wanted you to give me some pointers, but pretty much also well with my intentions behind facebook is to buy it right now that i see it's super low, because i do think that uh a company like facebook is going to Recover, i don't see it going away anytime soon, so i, and also they don't they uh own instagram. Now yeah, facebook or meta platforms is the holding company. It's like the mother company of everything yeah, so i mean especially if it has instagram still.

I definitely i i see a lot of value in this stock and i'm actually really surprised that it's one of the cheaper stocks. Well, the reason why you have to understand is overall: markets have been selling off, so that's not really the concern there. It's the concern is that facebook has transitioned into meta and they're spending so much money there. So if they end up blowing through all that money and then they end up failing, then they do have the potential to do worse than they previously did.

But i do agree with you that facebook's cheap. I want to share with you one of the things that i always try to teach to our learn plan, profit members and it's all about position size. We did this with your tesla position. You said: hey i'm going to fund it.

I want to buy this amount of tesla and i was like hold on the cheap can get cheaper. The past five months have taught us that that the stock can continue to sell off. If you want to buy facebook, because you think it's cheap great, but i want you to plan out your entire trade, meaning that if you have a thousand dollars that you're going to be working with facebook right now is 190 a share. I'm really big on position.

Size, i don't think that you should ever be, especially as a beginner, more than 20 percent invested in a position while it's still selling off. Let me ask you a very simple question: is facebook indicating signs of an uptrend like this, where it's indicating signs of higher highs and higher lows, or is it still selling off? It looks like it's still wrong yeah. So again, if something is losing money, do you want to pour all your money into it? No, no! If there's no indication of a support, if there's no indication of a reversal - probably not right so this is why we're going to talk about position sizes right now, if you were to go in with a thousand dollars or your goals to be fully invested with a Thousand dollars we'd shrink that to 20, this not only allows you to not lose as much money, but also if you have to cut losses, it's going to much be much easier for you to cut losses because you have less money on the line. Therefore, it's less emotion, a very common mistake.

A lot of people make, i would say i mean what would you say if you go in at 190? What would be your desired exit price point, or what do you want to sell? Do you want to hold it again? This is why i asked you: what's your intention, do you want to hold it for a year? Do you want to hold it for years? I think so. Actually, i probably would hold it for years because i mean, even if you even yeah, even if you're, even if you're buying a thousand dollars worth of it, it's not like you're, going to make a life-changing amount of money right. But again it's it's your intention. It's whatever i mean you can you can hold it until it recovers.

You know, halfway until it recovers to previous highs. Maybe you make 20 and then you sell - or you know, until it uh recovers to previous size. So let's say more moderately uh that you wait for it to recover to 300 dollars a share. Most of this consolidation before it reported, was right around 300 a share.

So let's say that your exit that you would aim for is 300 again. A goal is something to work towards, not something that you have to hit every single time and when it comes down to cutting losses right, let's say you're in with 20: that's 200. So that's really you just buying one share. Where would you call it quits? What does facebook have to drop below or how much do you have to be down to be like hey? I don't want to be in this anymore.

What would you say if you go in with 190 dollars? What would it have to? Would you be okay with losing at all? Well that's my question: when can you lose it all? It goes to zero so like if it goes to zero. That means you lose it all. Of course, can they just take it? They don't take it. What if it goes back up - and you still have the stock, then that's the whole point of holding it yeah, so i would just hold it.

You only have one share right, and this is why you're managing your, but i still think that some form of i mean normally people buy more than just one share, i'm obviously i want you to start off very lightly. I want you to ease into this, so this is why we're talking about it. So let's say that you would cut losses because you have to have some form of exit plan. Let's say that you cut losses based off of.

I wouldn't do that, though. I would only wait until it goes higher, but if it doesn't go higher, let's say facebook ends up completely failing because of how much money they spent due to meta platforms or metaverse, and then they end up filing for bankruptcy. Okay! Well, they went then, when they filed for bankruptcy, then well at that point, the stock itself would be. This is this is the whole point that this is what we want to avoid that it's not when something is happening that i want you to begin to prepare.

It's now that you're ahead and before you actually trade that you make the decision, because it's non-emotional and non-irrational. This is why you you plan this out. First, before you actually take the trade, so this is why i'm, actually i see what you're saying normally it you have to take into consideration what your upset potential is versus your downside, so at 190 a share if this thing recovers to 300 right to 300. A share this thing would offer about 60 roi, so with 60 roi you could even risk 10.

So if facebook were to drop another 10, that's where you would be like hey, i'm gon na cut losses, but even then you don't have to do it. Then you could, you don't have to let's say, because it previously hit lows of 169 say that you wanted. You want to cut losses if it goes below that so, let's say 168., just something to have some form of risk management. Do you get what i mean? Yeah, do you get it okay, yeah and then this should calculate your risk to reward ratio.

So this means that for every five percent you have the possibility to make you're risking one percent, which is actually a really good risk to reward ratio. Make sense yeah. Does that make sense yeah so imagine be like hey clarissa, try to take that pen for me or that pencil on my desk, you put in you, have the potential to make five dollars, but i want you to bet one dollar. That's the idea! Well, it's like.

Okay, well, i only need to be right once i can fail four times to be right once and you still walk away with five dollars. You lost four dollars, but you still walk away net positive one dollar. That's the idea! It's a numbers game with this. It's not about being right all the time, but making sure that the times that you do choose to trade or invest that the odds are in your favor okay.

So when it comes down to shares, we're just going to keep it very simple, you're starting off right when it comes down to one share, there's broken down to 190 a share um or we actually don't enter it. There we enter market value is 190, but it would actually it should auto enter. So we drag and drop 190 a share and then we drag and drop and then the potential profits out of 190 of you investing. If things go according to plan - and it goes to 300 out of 190, you would be making a hundred and ten dollars a share.

That's huge yeah right! So um, that's really just it i'll have to follow up with you, facebook again as right. Now the market's still selling off, but i think right now would be a good time for you to be able to open up a weeble account and then i'll talk to you a little bit more about that later, but again guys. I hope that you guys enjoyed today's video, if you guys did make sure if you guys haven't already, we do have a free discord group, especially if you're an absolute beginner. That's going to be that first link down below this trading platform that i'm using right here is our weeble trading platform and you guys actually can earn six free stocks by using the second link in the description just by signing up and depositing one dollar and again It is um, what's it called a a current sale that weeble has and you do have to use that link in the description.

The last thing is, you heard me talk about them in this video. It's the learn plan profit group, the other group that gets to watch me. Trade live every day. If you are an absolute beginner and you feel like you would learn better in a structured format where you would get lifetime access to the a2z video lesson library.

You get lifetime access to my daily live training sessions and you get lifetime access to our private discord chat. We also just opened the doors to our hq in chandler, arizona and again you're more than welcome to visit us there at any time and that's exclusive to our learn plan profit members whenever it is that you're ready again, all the information is down in the description Hope that earned your thumbs up, please consider subscribing and like always, let's make sure that we in the year on our green now take it easy team.