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FUSE SPAC Warrants | Fusion Acquisition Corp | 100% PROFIT POTENTIAL! - YouTube
Channel: Wolves Of Investing
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fusion acquisition corp spac warrants
that's what we're going to be talking
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about in today's video coming up
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i am not a financial advisor this video
is for entertainment purposes only
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learn to invest like a wolf at your own
risk what's up everyone
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welcome back to my channel wolves of
investing
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my name is donning nguyen and i'm the
founder of wolves of investing
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if you're new my channel is primarily
about investing
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in the stock market if you want to learn
how to achieve financial freedom through
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investing
be sure to click on that subscribe
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button and notification bell
if you haven't yet all right so today
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we're going to be talking about the
fusion
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acquisition corp spac stock warrants
and this is a space that's focused on
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fintech their closing price at the time
that i made this video
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was 90 cents per warrant i am currently
invested in these warrants
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and i'm going to talk about why i'm in
this trade
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and i'm also going to talk about the
risks
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all right so first i want to talk a
little bit about my position sizing
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the reason behind my position sizing and
a little bit about the risk
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so these warrants are listed as fuse
plus
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on td ameritrade i currently have 350
dollars invested at 70 cents per warrant
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for a total of 500 warrants this is a
very high risk trade
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i could easily lose 50 percent or more
of my capital
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and these warrants could expire
worthless so it's not like my long-term
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investment
it's not like the s p 500 where i can
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just dump a ton of money
into the s p and even if the s p 500
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drops 50
i can just dump more money into it as
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long as i've got 10 or 15 years of
investing left
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if these stock warrants expire worthless
they are gone they are zero
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forever so this is a very high risk
trade
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so in order to mitigate that risk i'm
currently investing
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no more than one percent of my capital i
may scale this up a little bit
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but i do plan to keep these trades to be
a very small part of my portfolio
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next let's talk about why i like this
back
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the first reason i like this back is for
its management team
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jim ross is the non-executive chairman
and a senior advisor to state street
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since may 2020
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executive vice president of ssga from
2013-2020
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chairman of the global spdr etf
business from 2016 to 2020
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global head of the spdr business from
2012 to 2016
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responsible for all aspects of the
spider business including profit and
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loss management
product innovation sales and marketing
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numerous executive positions such as
director and chairman of the board for
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state street global advisors funds
management
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and ssga's registered investment advisor
from 2012 to 2020
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member of ssga's executive management
group as well as
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ssga's global product committee from
2015 to 2020
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and 2009 to 2020
responsible for leading ssga's
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engagement with etf stakeholders
including regulators mutual fund and etf
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board of directors
industry associations key clients
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partners in the media
and here on state street's website jim
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ross spdr chairman and etf
innovator to retire
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ross who joined state street in 1992 was
instrumental in creating developing and
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bringing to market
many of the world's first etfs earning
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him the moniker
the godfather of etfs
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the product grew from inception in 1993
when spy was launched on the american
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stock exchange
to an industry that today stands at
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almost six trillion dollars worldwide
and is still one of the fastest growing
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investment products in the market
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without question jim has been one of the
most influential figures in the
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investment
management industry
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his role in creating many of the world's
first etfs ensures he will go down in
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history as an instrumental player and
perhaps the most important product
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innovation the industry has seen
the etf today provides a vital
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diversified investment product for
investors across the spectrum and for
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that we and the industry owe
jim a great deal
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jim's contribution to the history of
financial services is irrefutable he is
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a titan who has played a key role
enabling institutional and individual
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investors to invest in new
and unique manners with greater
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precision of exposures and liquidity
we are extremely proud of his
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accomplishments in helping to create
many of the world's first etfs
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alright so the next reason i like this
trade is because the warrants are
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currently trading
under one dollar and i think that they
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could hit two dollars
in less than one year so to get a
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hundred percent return on my investment
in less than one year would be
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pretty incredible and the reason i think
that is because i'm comparing this trade
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to another trade that i just recently
made that made me
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100 in one month and that trade was with
lf capital acquisition corp warrants
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and their spac had a very similar story
and they had a really solid management
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team
in the financial industry as you can see
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here i made a very small trade
on august 3rd in the 60 cent range for
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these warrants
and then i got out of that trade on
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august 31st
for a dollar 65 so in less than one
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month
i made over 100 return on my investment
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in this particular trade all right so
now i'd like to talk a little bit about
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the risks
the first risk of course is that a
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warrant can expire worthless if no deal
is made
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so i can lose 100 of my capital i'm not
too worried about this particular risk
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because most backs are actually getting
their deals through
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and the spac management teams have a
huge monetary incentive to get a deal
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done
okay so the next risk is that the merger
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target could be a dud
and if they do pick a company that
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investors don't like
the warrants can drop 50 or more
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just because they have a great
management team does not necessarily
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mean that they're going to find this
awesome company that investors are going
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to shoot to the moon
and the final risk that i don't hear a
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lot of people talking about is that
we could potentially be in a bubble and
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i'm not
talking about general market bubble i'm
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talking specifically about spacks
at the time i'm making this video
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there's approximately 100 to 150 specs
that are in their searching phase
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and there are new specs filing pretty
much every day
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i'm predicting by the end of next year
that we could have 300 or more spacks in
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their searching phase
so it's kind of hard to say are we in a
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bubble or not and oftentimes you don't
know you're in a bubble until it bursts
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and you lose all your money
so this is a real risk and if we are in
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a bubble it could burst at any time
all right so tell me what you think
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about the fuse warrants what you think
about this trade
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really interested in hearing your
opinions and thoughts about this
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particular trade
drop me a line in the comment box and be
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sure to leave a like on this video
before leaving
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thank you so much for watching and i'll
see you next time
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