In this presentation, we're going to add a cost of good sold accounts that we're going to be used as we go through our bookkeeping process. Let's get into it, within to it, QuickBooks Online. Here we are in our job costing company file. We're on the dashboard. We're going to be considering entering accounts now. So let's first jump over to our Excel worksheet to see what our objective will be. When we enter this into our practice problem within Excel, we're basically going to put all this information if it's going to a job to the cost of good sold. It's going to be part of the cost of the job. So we're going to put that into the cost of good sold. However, we might want more detail than that as we enter this into our QuickBooks system. So we'd like to be able to break it out by possibly categories of, say, at the least, the direct materials, direct labor, and factory overhead, and possibly more detail than that, including something like if this was going to be the types of things that we have within our job costing, we might set up these types of accounts. This is what we'll set up in our practice problem. Surface finishing, plaster and gypsum board, cement render, ceramic tile, drop, drop ceiling, flooring, marble wall covering, and so on and so forth. So we're going to be following along with our practice problem, but we're going to be adding more detail as we go. So we're going to set up these in our accounts and we're going to do so so we can provide that more detail as we go through our projects. So to do that, we're going to go to the accounting at the bottom. So we've got the hamburger, of course, open. We're going to the accounting and we want to take a look at the chart of accounts. So you want to be on that first tab, that's going to be the chart of accounts. Now I tried not to get QuickBooks or let QuickBooks set up a chart of accounts, but I couldn't. They gave me one anyway. So here's the chart of accounts that we have set up. We're basically going to be creating more accounts that are going to be lined up in the cost of good sold type of section. So that's what we're going to do. I'm going to close up the hamburger to do this. And then I'm going to go back up top and we're going to be adding new accounts. Now as we do this, just remember, of course, these accounts are going to be lined up by typically you want to think of them at least by account type. You could search them in other kind of formats as well, up top type name and so on. But usually you want to think about them in terms of account types, assets, liabilities, equity, income, and then expense type of accounts. We're looking at expense type of accounts here. And I'm going to categorize all of our job related information into expense type of accounts. That will allow us to have that kind of breakout on the income statement of the job related items all being in cost of good sold. And then any other period costs will be down below in the cost of good sold. And then we can further break this information out into the subcategories if we so choose. So here's how we're going to set this up.  And I'm going to call this a cost of good sold type of account. So we want to make this a cost of good sold type of account. That will basically allow us to kind of put it in a separate category when we do the groupings. Now I'm just going to take other for all the cost of good sold types. And then I'm going to make this a category. Now this is going to be a subcategory type of field. I'm going to call this materials. So I'm just going to call it materials. And I'm going to put up top materials. And that's going to be it for materials. That's going to be our name. And then I'm going to use that as kind of like a parent account where I'm going to put the other kind of material items into. So then I'm going to say save and close. And that's where we're going to put all of the material accounts that we'll take a look at. But the other three items that we would have involved, I'm going to say new now. I'm going to make another one. It's going to be cost of good sold. So I'm going to go back down and say I want another cost of good sold account. I'll put this into the other, into other. And then I'm going to call this labor. So labor. And again, I'm not going to make it a subaccount. These are going to be like the parent type of accounts in cost of good sold. So we'll have cost of good sold that we can group. And then these basically parent accounts, which will be then housing the subaccounts within them. So then if we scroll down just so you can see these now. So now we've got the cost of good sold here for the labor and the materials. And you can see the account types being the cost of good sold. Then I'm going to go back up top and I'm going to say we want a new one. And I'm going to call this cost of good sold. Again, I'm going to make it a cost of good sold. And I'm going to call this, I'll make it an other. And this is going to be overhead, overhead. So like so, and I'll put that in the description as well. Probably don't even need the description, but then we'll have that. So now when I start to categorize these items, I can categorize them into the subcategories here. Now I'm going to set up our accounts for the things that we're basically going to be using. And that's going to be these items. Now these I'm going to put all under basically the materials items, because these are all in essence going to be in the materials column. So now these are all going to be sub kind of accounts under materials. So we got cost of good sold. You're visualizing then under that you've got these three categories, which are going to be direct materials, labor and overhead. And within materials, we're going to have the specific materials. So I'm going to be now adding these items. I'm just going to copy and paste them over. So I'm just going to say, all right, I'm copying that, and then I'll minimize this. And then I'll go back over here and we're going to say new account. This is going to be a cost of good sold type of account. That's going to be a bit tedious, I know. But here we go. It's going to be great. It's going to be great. Not tedious at all. This is good stuff. And then it's going to be going into the name, surface finishing. And then I'm going to make this a sub-account of the cost of good sold for the materials. Materials. All right. So that's what we're going to do with all these. I'm just going to make them all a sub-account for the materials. Okay. And then I'm going to say save. And this time, instead of saying close, why don't I do save and new? That could save us some time. Probably could have done that a few times already if I wanted to. And then we're going to do this all the way down. I'm going to say plaster. I'm going to double-click on that. I'm going to copy that. I'm going to minimize this. And we're going to say this is going to be a cost of good sold type of account. And it's going to go into other, like so. And then that's going to be the name. And this is going to be materials. Materials. Same process. That's the sub-account. So we're going to imagine this being under that cost of good sold materials type account, which is all going to be under cost of good sold. Then we'll do this again. To save and new again. And then we'll do this again. And I'm going to say this is going to be the cement. So let's copy that. And then I'll minimize this. And then we'll say that this is going to be a cost of good sold type of account. And then we're going to say that I'm going to put it as other. And this is going to be the name. And it's going to be under the materials, like so. And there we have that. I'm going to save and new. Let's do it again. We're going to go back on over to the worksheet. I'm going to copy the next one, ceramic tile, so on and so forth. I'm going to make this a cost of good sold type of account, as is our practice, cost of good sold. Name is going to be here. And then it's going to be under the sub-category of materials. Some materials. And then we're going to do this again. Going to go back on over. And we're going to say we have the dropped ceiling and so on. That's one. And I'm going to minimize that. We're going to be putting this into the cost of good sold, as well, cost of good sold. We're going to make this in the other area. We're going to then paste this on over. This is going to be under the category of materials. Materials. All right. Let's do it again. We're going to save that one and then go back on over into Excel. We're going to be double-clicking. Now we've got the floor. So we'll copy that one. We're going to minimize the tab up top. We're going to call this a cost of good sold account. So once again, it's going to be in that cost of good sold. It's going to be into the other. Let's make it that other one. I'm going to paste the name here and put in the sub-account of materials. So there we have that. And we'll save a new again. Go on back over to Excel. And we'll pick up the next one is marble. So I'm going to copy that one, copy the marble. Marble's nice. And then I will hit the dropdown. We're going to make this a cost of good sold type of account. I'm going to put it into the other once again, other. And then I'll paste this as the name. It's going to be the sub-account of materials, I think. Pretty sure. That's the one. Yeah. All right. Then I'm going to say save a new. Let's do this again. We're going to go back on over to Excel. We're going to copy the next one. We're almost there. We're pretty close. We're pretty close. Then we have to stop. This is good time. So we'll have to stop after that. We don't have any more we get to do. This is going to be in the cost of good sold. We're going to put this into the detail other. And then I'm going to say name. It's going to be that name that I copied. And then this is going to be materials. Some materials once again. We're going to say save a new once again. Then we're going to go back into Excel double click and we're going to pick the next one up paint wood stain and that stuff. So I'm going to minimize this and we're going to say then we'll say this is going into the cost of good sold cost of good sold. And then the type is going to be other. That's not other. That's delivery. It's not the one I wanted. I want the one above it. Then I'll paste this one here and we're going to say this is going to go into. Yeah. Yeah. Materials. And then we're going to say save a new and we only got two or three more two or three more three more staff. So I'll minimize this staff a type of artificial stone. Okay. I thought that was like labor. No. It's an artificial stone staff. All right. That should go into materials and then we're going to say this is going to be other. And this is where we have it. So again staff doesn't mean it should go into labor. It's an artificial stone. So we're going to then say this is materials and that should correctly go into the materials and we're going to say save a new and then we get to do this two more times two more times. So make sure you relish the last two's because this is it. We're done with it after this one. Then we'll go back up top and we're going to say that this has got to be into the cost of good sold cost of good sold. And I'll put that into other again and we'll paste the name there and this will go into the sub of materials materials and then I'm going to say save a new the last time last time we should do it really slow just to make sure we get everything out of it. We're going to say the wood finishing and then go back on over we're going to be picking up the cost of good sold cost of good sold and then we want to put that into the other category. I'm going to paste this up top in the name. It's going to be the subcategory once again and finally of materials. So there we have that.  If you didn't see that you can close it afterwards but now if you go down here now we've got all these cost of good sold accounts and you can see the labor doesn't have any other sub labor but you can do the same process for the type of labor. And then of course we've got the materials and then we have the sub accounts of the materials which we added all those basically sub items for and then we've got the cost of good sold item down here. I'm not going to be using in the practice problem the shipping at this time so I could just right click on this and make it inactive. So I'm going to go ahead and make that inactive that might be a good thing to do. And then if I go back down we had this is just like the general cost of good sold account. Let's go ahead and make that inactive as well. I'll say let's make that inactive and there we have that and so that now you're imagining when we make our financial statements now we're going to have on the income statement cost of good sold which we'll be able to minimize if we need to have a subgroup of it and then within there you've got the parent groups of labor materials and overhead and then within labor we're going to have the breakout of our subcategories of the labor all of these in the type of accounts as the cost of good sold. That's going to be it for now let's get out of here.


Second here. All right there we go. All right well everyone thanks for coming I know that it was you know closing bells always exciting time to have everyone here. Usually one of the great things about closing bells we kind of always like to bring experts coming in we you know we cyber cyber expos has been a very staple of Cybertree University and we have been doing them a while but now we're starting to bring them back because we know that going into this time of the year September October November you know election year coming up you know everything that's happening in the market you know you could see the volatility inflation this is like the best time kids are back at school holidays are coming around the corner we're getting a lot of great volatility in this market you see what's happening from yesterday to today my god last week we had this big bounce almost 1200 points and you know and we always like to bring experts in here to see and let you know a little bit about how we feel and how they can contribute to your every day of trading so Don Youngchaman has been a very big contributor to the markets if you haven't seen him or heard him before just a little bit about him he's been trading you know my god just as long as I have and you know once again I've been doing it for almost 30 years and you could see he's been doing it for 27 years started as a bond option trader on the board of the stuff the stock of Chicago board of trade he's been banking doing more futures option stocks so he basically you know as a floor trader and as a bond trader and worked on the pit lot to do similar to what I've done he also helped manage over a quarter of 250 million it's over 16 billion dollars on the management I mean let me tell you when you're managing that much money you better know what you're doing and believe me no one will give that much money unless you knew what you were doing he did really well during the financial crisis and I always tell everybody this and you know and I know Don you'll probably talk about it one of the greatest books and one of the greatest movies you could watch is the big short I was actually going to watch it the other day but that has everything to do about the financial crisis just got to remember you gotta watch it two or three times to really know what's going on and let me tell you you know unfortunately these catastrophes made opportunities if you have been around as long as we've been around as in the trading we went through the not only the financial crisis hurricane sandy the internet bubble you know a lot of you also been here and went through the the virus you know I mean that was also another big big issue but once again if you could survive through those you could survive through everything so don't want to take too much away from time from him you're gonna talk about about 45 minutes tell you about his thoughts about what's happening the market had a perfect and help you to be a better trader which is why we have him here so let me pass the mic over to him and he'll take over so just want to do a quick audio check down do you hear me okay sure do Foster how you doing I'm doing good I'm doing good thanks for coming here looking so forward to having you and you know and the traders here are very active in the market you know they trade every day some of them some just work part-time just like we always tell them what to do and just love to hear your feedback and tell them you know listen you they learn a couple of things here it just helps them how to survive and be more successful in today's markets yeah okay so um uh yeah you know I'm just curious what what's what's on your guys mind and what do you uh what do you think you'd uh what's on top of your mind here in this market Foster well like what we've been looking I mean one of the big things is that there we just kind of like there's a lot of nice little stocks and the big percentage gainers that really made some really nice movers and you know regarding about we had some nice little cheap little runners like ian rx made a nice move uh rbt moved pretty nicely I mean there's some cheap ones that we like to trade you know the goal the main goal what we try to do is you know if if the market's not moving like it did today you know we'll trade stocks that just have good volatility good liquidity and just make a day's pay yeah yeah well you know I think um uh you know I can talk to a little bit about um you know the overall market conditions I mean the way I approach it uh is uh you know the um I do a lot not much day trading right if I make a gain in a day and close it out then um you know that I just got lucky you know they're you know they're usually uh a few weeks you know for uh you know for my trades to work out uh but um you know we've got a big part of uh of of what I fold into my trading and I use you know some I use a volume profile basically just kind of time my trades and see when things are getting set up uh but I got uh you know the macro environment is very key for me kind of like you know let me know whether or not I just need to pass on stuff that looks like it's kind of bullish you know in this kind of market that we're in or you know vice versa uh so uh I spent a lot of effort uh and just I've always enjoyed it the top down macro uh look and so that's uh that's a big part of my focus um you know and I think maybe I mean I suppose we could talk about you know there's certainly when you're thinking about the market and broad strokes right there is a um uh you know you can't tell that it's so clear cut in talking to financial from uh listening to financial media you know but I think it's more than clear and I've been saying it for a few months now that we're absolutely in a bear market um and we're going to continue to be so uh for quite some time and so you know whenever um I'm putting on trades or you know recommending trades it's all uh it's always with uh the context that we're in a bear market right so that means those the rallies can be short and violent um uh and uh but but um you know pretty much uh fleeting all right well that's a good question and that's you know and I like to ask you something about that because you know you watch the financial stations and obviously everybody's all like you know they're always trying to like pick the bottom you know and there are people like oh there's just this time the buys and I always feel like they're just like you know followers you know they're not leaders and you know we kind of focus on being more of a leader we follow the orders we use our level three or level four we just see what the money is and which leads into like the big swing trades and you know one thing that always intrigues our traders and I always like to have them on here is regarding you know full traders they don't realize that you know to to be a good trader you know you got to be down at the pit you got to you know listen it doesn't matter what you trade you just want to make money but regarding about you know you're here you are you because you sound just like me you know I still think that this is just all just rainbows and puppy dogs when we're getting a little bit of a rally here but is it really a rally I mean you still think it's a down market oh yeah yeah no I very much do we've got um you know I you know here's all I can I got a couple things I can share on this um you know even you just share your screen I'll share it yeah yeah you'll go ahead no so even if um uh even if we if you ignore right uh the geopolitical scene right you know the the massive inflationary environment that's going to take uh some quite a bit of pain to alleviate um you know if you're a European scene right uh with between energy markets and who knows what else is going on right uh if you're gonna war with Russia and Ukraine you know the restructuring of the global dollar block you know the uh that all of it if you ignored all of that none so none of that is is conducive to growth right and the status quo but even if you ignored all of that stuff and just um uh focused on the fundamentals in the market I'd still we would be in a bear market and we would still be in a bear market and you know it's really comes down to three things right and um uh you know it's it's what we're doing is the the bull market that we have experienced since 2008 well 2009 um is a uh in large part right now it does that it's not the only thing right I mean they did uh shortcut the downside in the economy with everything that they did right I mean instead of but you know they also let losers limp along for the next 15 years right but um you know they it did help uh uh to keep you know a lot more clearing from the market and we kind of resumed on an upward trend probably sooner than we otherwise would have right so and there was there's definitely been you know uh growth and innovation and all that stuff driving earnings um over the last 10 years but most of it has been uh led by you know all this consumption driving earnings and that consumption was a result of all this massive stimulus right that we that we uh pumped in the economy uh and that has had three big that that created three massive tailwinds for stocks right so the first thing you know you've had this you know this mantra and you guys have seen stuff like this and you know and I'm just kind of quickly go through it you know here's here we've got the monetary based federal reserve starting back in uh you know going all the way back for 1960 and I've got it on a log scale so you can actually see when there's a big change in in magnitude right and for 50 years you know the money supply just kind of grew at a steady pace right and here we get into the great financial crisis uh you see this um uh you know I don't know if you can you can you see my hourglass you probably can't see my hour oh you can okay good so you see right here right so this is um when the Fed started that the the the monetary base was around 800 billion at that time right and then we know quantitative easing and all of this right and look how much look how dramatic that was in terms of you know from 800 billion to you know nearly nine trillion right so so that was nuts uh and that had uh that that did two that did several things one of them it it boosted consumption and earnings and what you ended up with if you were looking at the way that people value those early so most not not only did it boost earnings but it boosted expectations of even more earnings growth right uh and here we have the Schiller PE model which does some adjustments and takes a price earnings calculations in very real turns and it created a stock market with the second highest PE of all time right I mean it got only the internet bubble uh exceeded it right and the Black Tuesday back in the um oh this is you know the crash in the 30s right this goes all the way back you know so 19 this 1929 yeah so this the highest the the highest um kind of PE ever and that was you know um uh that was a result of all that extra support and juice the market's had right and you know a lot of the cash that created just went into the market and because the um uh it sat on this uh bank's balance sheets but who used that it didn't get lent out as much but what it did uh do is it found its way on the prime dealer desks and uh you know bank's balance sheets and they used it to prop up their prop trading right so uh there's just been a it's found its way into the market rather than into necessarily consumption and that explains that large PE and that's that was a massive boost to equities I'm sure you guys have seen the the money supply and the equity market kind of correlations you know but um uh that's that was very real right so that was that that PE multiple expansion was one tail in tail wind uh then you've got you know the those earnings get uh when you look at stock price those earnings get discounted back right and if you discount those earnings back at a low interest rate those earnings are going to be worth a lot more right that's that's what's been the theme you know ever since Volcker in the 80s right we've had this long long long long period of uh this is the great moderation this is the great moderation that you might hear sometimes speaking the press but after the great financial crisis you know we just that just continued until it couldn't go any further right basically got to zero on the 10-year rate uh this whole period right this as this thing moves down that just means every dollar of earnings is even is worth even that much more right so uh that's another boost stock market values and that's turned right uh and then finally you have inflation inflation expectations here is inflation expectations measured between the difference between regular bonds and tips inflation protected bonds right so you can you can tease out the market's expectations for inflation over different time periods and those expectations stayed very stable you know or low right I mean they dramatically dropped during the great uh they dropped dramatically during the great financial crisis but they stayed roughly around two percent or so right and then of course that's changed um but it's this assumption of stability around price you know that just kind of makes everybody feel good and comfortable about the purchasing power that what those earnings and dividends and all that stuff is going to be worth what the stock price is going to be worth right you sell your stock it's going to provide more well that's all been undermined right so now you don't no longer have uh stable inflation you no longer have falling interest rates and you no longer get that tailwind of boosting earnings from uh free money right so that's got a that's going to reverse itself and that's all working in reverse and so it's those headwinds all those tailwinds are now headwinds and that's what the market is ultimately going to be is fighting against uh so that's uh yeah that's kind of where I think um and that that's where I think we are you know I think that's what we still got to deal with so how much how much low I mean so what's going to take for it to come back uh well for those headwinds turn around right you know and that's you know we could be you know and when you say turn around right I mean there's there's this um assumption that you know once once everything's okay in the USA the equity markets are going to go up 10 12% a year on average right and that's what when you look at long-term expectations and if you look at basically a post-world war two period that's kind of what well definitely at least from the towards the end of the 70s you know the 80s 90s you know for this century um those have been rewarded right that that those kind of assumptions have been rewarded and that's mainly because I'm sorry it's mainly because of the great moderation right from Volcker into the Volcker cramp in inflation this whole period in the Federal Reserve opportunistically lowered interest rates and and managed inflation um this that was a that was a 30-year process you know 40 I'm sorry 40-year process um and you know this the assumption that stocks are always going to just once we get through this and they're off to the races again um I don't know that we'll we may not see that again as long as you and I are trading it's it doesn't mean that stocks you can't make money in stocks uh but this passive only I mean just look at all the things right that the last the 15 years the move to passive investing has just been completely mindless right and when you're investing passively you're not paying attention to anything right right and that's not going to be that you know close your eyes and buy that's over uh declining we can't lower interest rates for the next 40 years right uh and those are pretty significant factors that you know you you don't think about day-to-day uh but um you know as you're looking if you think about the market in terms of three, five, ten years uh Japan has been going sideways for um since the end of the 80s right uh most markets there's a great book uh Try for the Optimists uh and it goes through and talks about you know the U.S. market and compares it to all global markets the average return on most equity markets is three to five percent uh and uh we're we were just in a very fortuitous window so I don't know that we can expect 10 to 12 percent a year um going forward even after we clear out these headwinds and work through whatever you know overhangs that we currently have right now yeah but Dom do you think it's a hole or do you think it's just certain industries certain you know certain industries and certain stocks I mean oh you know that's just no it'll be so it'll be a challenge for everyone right capital will be will be more um harder to come by uh right so projects and and raising companies raising capital will have to prove a higher return on investment their the bar is raised on everybody for raising capital right um there there definitely will be industries to succeed I'm not saying the end of society Europe is a pretty nice place to walk around I mean it's you know they're in Japan too right I mean those are all developed economies but just making money on a long only basis expecting stocks to continue to just go up right you're just going to have to work for it just everybody's going to have to work harder for it companies are going to have to work harder for capital they're going to have to work harder to prove it and we you know investors are going to have to actually the stock selection and you know trading and that sort of thing is going to is is going to be the most important thing it wasn't it wasn't till the 70s that passive investing was invented and it took 20 years for people to even believe it you know people actually used to uh active worry about what they were buying every single day you know so well that's why we like the day trade we just make our money we done for the day and you know what you could I mean there's always going to be good volatility but yeah I mean when you look at some of the stocks like even the market in general even like in a past year or so we haven't gone anywhere I mean it's really been it really on we're making lower lows I mean Bloomberg just came out 100% going into a you know a recession what does it take to get into a depression would you say what does it take to get into a depression oh um well I mean a couple of um uh a couple of crises right and so then you know that's those three things were you know though you know I said those were happening no matter what right and that's that's putting us in a bear market but a bear market doesn't have to be oh my god right just as it sucks but um you know so you get a I mean we can paint one scenario all of this natural gas volatility uh and electricity volatility that's pretty much bankrupting energy trading companies in Europe right they can't you can you imagine what the the maintenance margin how fast that changes on something that's you know going up like it's got like a hundred percent ball right right right so I mean that's what they deal with so they say they can't uh they they can't meet their uh they can't hedge because they're not allowed to hedge because they don't have the margin anymore right uh and um you know then they go bankrupt and they have to get bailed out by uh you know the uh Germany or you know several there's been bailouts of a company in almost every country in Europe um well it's not like that is immune from the banking sector right so um you can have like what we had in uh in England with their a pension the the UK pension fund uh public pension fund uh they put on some hedges to kind of lock in their liabilities at the highest level as they could but you know the hedges and those liabilities are their pension like uh obligations but the hedging that they did uh was mark the market day trades plus some structured products that banks and consultants sold them sounds risky though but you know that's what um that's what caused the mass of scare two weeks ago right because they had uh uh that uh those um those hedges needed cash and there's no cash in a pension plan right you can't so so they had to be bailed out by the bank of England and uh you know that now those kind of uh you know it reminds me of you know Bear Stearns I don't know that how many people actually remember that Bear Stearns was a thing in 2008 I remember like yesterday I remember trading that stock I was in I mean some of the biggest catastrophes I remember I was in I was actually in Arizona doing a coaching class one of my students went to go train them down there and I mean I'd never seen them get crushed so bad in like three days yeah things just like and we made a fortune on a way up on the bounce but telling laughs like a day yeah well the um the um uh uh the the price you know so they are lending money to the street right they're lending money to all the hedge funds right and uh it all those then there's one big margin call right they they don't have enough money they have to start calling in money everybody then has to sell things and you just get the cycle right so Bear Stearns was bad and it was a first indication but it wasn't really the the thing people remember Lehman right that was that people remember Lehman but Lehman was caused by Bear Stearns right and all the knock-on effects that uh that occurred from that and so uh and that's when what the you know contagion just like the Asian financial contagion in 97 right uh you had LTCM long term capital management uh they had all these relative value arbitrage is going on that they thought were locked in sand um and then the currency started to go the wrong way right he had this Asian financial crisis LTCM went bottoms up the Fed did its first bail out right and that was that didn't that didn't end up being um as long term right but those things can lead to another thing and and you know what what we have is uh they they've taken the risk off the bank's balance sheets but then now they put it on the central banks balance sheets right the regular banking industry has lowered their risk from the great financial crisis but um you know that's sitting now on central bank balance sheets and uh they are in a really tough position trying to um uh you know manage the inflation that they created while at the same time they've got these massive balance sheets with all this risk on it so it could be any number of things I would and I wouldn't be surprised to see it start in Europe and that and that you know crush that that takes out demand and then it's becomes a self-fulfilling uh or a self-feeding cycle on the downside and it could be depression you know and I'm definitely not ruling that out of you know out of the scenarios and you know I'm going to trade it either way uh but um you know as far as looking at the big picture you know there's a lot of um uh there's a lot of stuff that got uh funded over the last 15 years that nobody in their right mind would have funded 30 years ago right because money was cheap right right money's cheap and that's not going to be cheap anymore because now with the rates I mean I've been doing this for a long time I don't think the same thing with you Don I don't think I've ever seen rates go up so fast the way they've gone ever well this yeah that this this tightening cycle is definitely uh I mean it caught you know we my my wife's father passed away about a year ago right and so he had this house and we um we were you know I'm like you guys you know if we need to sell this thing let's let's get it out let's move well um you know even after about one or two rate hikes right the price of the the value of it in in terms of the mortgage payment because that's what people buy right they buy a mortgage they don't buy a house right and so for that same dollar mortgage payment um the value of the house went down 60 70 thousand dollars and it wasn't that much of a to begin with you know so um uh you know it's uh that yeah that's it's been very aggressive you know I think um and let me show you something let me share something else um you know where just to and this isn't a I don't say this as you know a a prediction right because I'm I'm looking at things with fresh eyes every single day right you know I just hey has it changed has it changed has it changed I just haven't seen anything that would make me think has changed a whole lot yet but um you know if you look at here's the S&P uh let me let me let me clear this up a little bit uh here's the S&P you know going back 10 years or so and this is this is the last little sellout that we've had right here um now this volume profile here this this this this this is what I look at from a technical level and it just happens to not that I look at it over 10 years but what it does it tells you how much volume there has been at different levels right so I can we can look back and see that there was a lot more trading back at 2100 on the S&P than there has been you know all throughout you know this the you know it's definitely the post COVID tie right you guys follow me on that yeah I see that yeah yeah so and then what if you look at this 10-year level you know there is uh these this um in this volume profile there's a a couple of numbers that are key that it calculates this point of control which which is where the most volume has happened here this is at 2056 and then this value area high which is the upper end of the 70 percent of the trading right so 70 percent of the trading volume over the last 10 years happened below 2905 so think about that right that's at least in the S&P 500 futures contract right there was what the the trading of the last three years has been completely draw uh uh dwarfed by the trading of the the seven years before that right so that's um uh that's just interesting but you if you go back to like these 2015 highs you look at this and then take this value area high you know that's that's 2900 on the S&P 500 and I know at the beginning of the year I was looking at the capital base of the S&P 500 and it's like it equated to like $2,800 right so basically you know in uh in a big cleansing bear market you trade you you get rid of the premiums in the stock price and you basically trade down to book value okay the whole market trades down close to book right and it's not a technically like an accounting you know book value but it's it's the capital base uh that's invested in these companies um which is effectively the same thing and that number was right around 2800 so there's a couple you know this 2800 I've had in my eye on this since the beginning of the year as a potential pullback area for the um uh for the S&P and that happens to coincide with roughly this upper end of this value area uh the value area high right here uh and that's that takes us back to what 20 uh yeah what is that um 2018 but then you know there's another level here this point of control which uh you know this this would be you know if I was ignoring the fact that I was looking at 10 years you know and just something a little shorter term you know this is a very uh bullish pattern down here right then when you when you see this kind of pattern and it gets into it then you're like okay we've kind of really hit the bottom uh but that's that's at around 2000 on the S&P um and that corresponds to a 2015 or a 2015 high yeah so you know that's I think that's not out you know that's not out of the question uh and what um people don't you know realize was the great financial crisis which you know I think we've got everything um that what we're looking at is easily is is severe as the great financial crisis um you know that wiped out let me just show you here this so this is the you know 2008 going into great financial crisis 2007 you know and this so this was the peak 1500 which it also got at the beginning at the internet bubble right so it traded back up to that 1500 level and then it traded all the way down here to 666 right I remember just buying uh em puts on EEM right here and um the uh that wiped out uh that took us back to 96 so from 2009 I you know it wiped out um 10 to 13 years worth of stock price appreciation and here I'm talking you know roughly seven years of stock price appreciation so you know there's nothing unprecedented about it um and certainly not even in in terms of percentage change it could be pretty significant you know I don't know if it would exceed the great financial crisis uh but in terms of um you know whether I'm just looking at this the the volume profile or um uh looking at a couple more fundamental reasons you know I mean this this market could go quite a ways the tailwinds uh alone that are now headwinds could take it most of the way but if something cracks or breaks uh which is you know when you have this much uncertainty of price nobody knows how to price nobody can budget anything right no uh traders don't know what the um uh interest rates are going to be in five ten years they don't know if they're going to be higher or lower you know not that they even know which general direction they're going right there's so much uncertainty out there so um um if something breaks you know it could easily take take it down to those lows now regarding about you know because I see the same pattern on my end too and that's why a lot of us are very very scared of holding any positions but um what would you expect to to come out regarding in the future right now regarding about is elections going to change anything is you know less uh fed the fed of raising the rates less than what they expected or I mean because I got the warts going on I mean like there's a lot of there's a lot of stuff going on I mean like you having them want to change the way we do business you know here in the states with it's the green new deal or anything like that I mean it's kind of changing the world but how do you think it affects certain stocks because doesn't look like it's really making that big effect yet yeah what's that the um um the interest rates aren't having that big effect yet or what do you mean well not just like like I said there's there's so many moving parts that is going on right now regarding about the interest rates and stuff like that that a lot of these traders that are out there I mean we I mean I got a couple of swings I mean we all have IRAs but it's like do we stick with dividend stocks do we just basically with growth stocks I mean there are things still moving it's just the question is which industries you think we should stay away from the high tech stocks when ones look like they get killed yeah well I mean I know so I don't think from a like a sector or in there's no there's no cute way to own stocks through this if it you know if we're in a bear market and something breaks you know there's not there's either if you if you need to hold on them you just hold on to them right I mean there's there's no way to be long stocks and you know not it'll there might some do a relative basis better there could be a sector maybe that you know holds it you know treads water or maybe even goes up a little bit but I have no idea how to you know that the macro forces that right now this to me the macro is dominating the scene and it just swamps all the other you know valuation considerations relative value stuff it just swamps all of that right and you've just got the macro the macro picture really dominating and you know you talked about elections I don't those are I put those that's not going to do anything it doesn't matter who goes in the office and we would be in basically the same place had trump won in 2000s and there's there was nothing that other than you know maybe the whole russia ukraine thing that may have been handled differently but fundamentally where we are these things have been building up these are the accumulation of 15 years of monetary policy mismanagement right and now we're dealing with it this is a 15 years of of malinvestment which is what happens when you send the wrong price signals by keeping money artificially low and we've we'd be working through that no matter who is in office and it doesn't matter who gets in office next we still have to work through all of that and then you know whatever else you throw on it that's we'll just see right you know that well that's what that leaves us a question with janice and in the trading room just asked really quick you think that you think the crypto market's going to really screwed up a lot of the markets the so i think the crypto so cryptos got do i think it screwed up the markets is it going to screw up the market or did it screw up the market was it a factor um well it's uh the um well crypto was in large part a result of all that free money right you know i talk about projects getting funded that never should have been funded you know right almost all of those crypto projects just made no sense right it was just all hype um you know i'm a big believer in bitcoin i'm a big believer in decentralized distributed technology uh and um you know and and and money and all that stuff i have been following bitcoin since day one um the uh but you know they when the money ran out crypto crashed right crypto didn't crash the market crypto crashed when the money ran out right when the money stopped being when the when the feds turned right and uh now uh yeah you had a lot of leverage so um there was a lot of leverage in crypto and you saw that getting taken out one way the other but now it's it's still you know i look at primarily bitcoin um but it's it's a risk asset it's not acting as the currency it is right and so you know frankly i think bitcoin could get down to around 10 grand or so it'll it you know get cut in half from where it is right now i think below that level it would look really great but um you know it's just going to trade in sympathy with you know all other asset classes the correlations go to one in environments like this you know that's why bonds are going down and stocks uh and gold uh the only thing that's going up is a dollar right so yeah so maybe you know time to travel yeah oh yeah that's right we um we're looking at uh going to my mother's from norway we're looking at uh and i'm like well let's just wait a little bit longer i think we might be able to pick up tickets pretty cheap yeah tickets are one thing i mean to go in there i think that he was a euro dollar for dollar now mm-hmm it's less right so the euro is trading and that's what we've been trading a lot we've been trading uh uh writing the pound down the euro uh the yen um you know that um and gold bitcoin all doing those cold hasn't gone anywhere i mean i own gold forever it's been stuck here forever well it's been something to trade i we've done let me show you i mean we've been uh i mean almost at the point that i want to sell all my gold i'm getting sick of it i had a promo cycle okay well no so like if you hold on to it i mean that's uh yeah it hasn't uh no so that's just it it's not going to respond as an inflation hedge um because you know the fed is the most aggressive um bank out there right um and it everybody wants the the u.s economy to crash not only the fed but every other central bank so that you know the fed stops putting pressure on their currencies right because as they raise interest rates um that increases the attractiveness of the dollar through deposits right uh and um relative to all other currencies and they've been doing it the most aggressively right that the the bank the bank of england got trapped by that pension fund collapsed the bank of japan actually wants more inflation they're just trying to bring it up but but at the same time they don't want to see the currency fall right but you know here's what so we did this the japan we um and on the yen we uh this is this is the futures kind so it's an inverse quote right from what you're typically used to seeing in the end but we did um let me um the um uh we've been short from wow wait way up here uh and just trading this sucker down and somewhere right i think this was the intervention or maybe a couple weeks ago that when uh uh the the bank of japan intervened and of course it just failed right so it just all those interventions all their emergency measures uh all that they are all just running square into inevitability and you know basic law of economics which they try to buy you know they they want to violate day in day out um and now it's uh it's it's they're getting paid uh or they're having to pay for it and um that's what we've been yeah we've been trading the uh the currencies and a lot of those uh instead of individual stocks which you know i was doing most of until about june or july and then it just turned into uh you know i saw the most the clearest opportunities in just the big macro products whether it was individual commodities or broad market equities or currencies or that sort of thing and what do you think your outlook is for silver, gold and in the next three years because i have a vignette that's asking if they're asking about it in the room so uh you know i think over three years i think it'll be wonderful um it will you know once once the the the bank of japan the bank of england and the um uh the the your ecb get taken care of right once those three currencies get taken to the cleaners you know then the the the fed you know depending on when they turn right i don't think they're going to be as aggressive as they as they hope right i just think it'll be a long ways before they pivot but once they pivot they'll just go back to money printing and gold and everything else will be and it'll be on a much lower asset lower base of productive assets so i think gold will be beautiful but it could you know it we could see a trade down to around 1200 or so ah damn serious what you know this is my just one man's opinion uh but uh yeah well let's take a look yeah i like your first answer he said look pretty but pretty his look at 1200 well it'll but it'll look pretty from there how about that yeah but i mean that you know it could go and there's no that once once um once the the the fed is um uh the last man standing right and they they can go back to and they have to and and they have to end up bailing out the economy um that'll be really significant for bitcoin and gold in a very positive for those assets but i think we've got a long way to go before uh they stop being weighed down by um growth and just overall risk environment okay all right now does anyone else have any any questions um for don in the trading room i know vini did and janice did a couple of people asking his his expertise on cause question do you think we need to get rid of the the fiat currency oh well i mean it's that's it the it's it's um when we need to get rid of it it'll it'll leave or not you know it'll take care of itself i think that um i mean i i think a better world would be a better world without fiat um but um you know i think that uh it i think it'll uh could very well just burn itself out all right you know it just could very well burn itself out and um you know i think um the uh you know one thing i wanted to chat with you guys so you know it's you guys are traders i'm traders i'm always looking for ideas and um one thing that you know i kind of when i really started uh focusing on the the publishing newsletter side of this right i'm like all right uh i need uh you know i need a uh trade a day or an idea day right and that's necessarily a trade a day but an idea day right so uh we started this product um uh service called the daily pick right and that's where i basically make a call on either an individual stock or an ETF or something like that and give you the direction how far it's going to go stock price all that stuff like that but every single day i'm in there we've been killing it is something like um now we closed 11 winners in one day just a couple weeks ago uh and um uh the um and mainly because a lot of those recommendations have been on the short side of the market uh which is feeds in the macro view but you know it's just nine bucks a month it's a simple service i just give you uh you know the entry price to ticker you know stop loss the target price that sort of thing but every single day you get one uh and it's nine bucks a month man it's uh no brainer and somebody just dropped the note don i i just joined yesterday i bought your recommendation this morning and i paid for it many times over by noon so but you will we went short devon energy this morning um and uh that worked out but uh yeah anyway yes so that's um uh that's one way for you know you guys to if they want more trade ideas uh for them to get into get to know me a little bit and uh how i look at the world uh you know they should join us nine bucks a month it's easy i got the details here so you know if anybody wants to join me come on over yeah nine dollars can't ask for too much more i mean it's pretty cheap like everything else try everything out listen i always tell all my traders you gotta try a little bit of everyone's stuff and there's always different styles and sometimes you know you find something that works best for you so try it out and we'll go from there so with that said uh don listen thanks for coming we always appreciate you and love to have you come back again and see how you know if you're around uh i know you uh traders always you know love feedback and be able to kind of benefit from it but uh thanks for coming and and uh happy halloween yeah buster hey thanks a lot man i appreciate you having me on and uh enjoy the conversation thanks a lot thanks everybody for coming and we'll see you next week on trade and on closing bell again in the meantime we'll see you already in the morning to do some live trading again all right good luck everyone enjoy the rest of your evening


So, today's session what we will do is, we will first start with problem practice, problems on whatever we have done last, problems on whatever we have done till now in gravitation we will take up those problems and then we will discuss few of the concepts which are beyond your school curriculum, but they are you know they are there in J syllabus okay. So, we will start with the problem solving all of you ready should we start or you have any specific doubt in this chapter which you want to discuss first okay. So, I think let us start fine I will start taking up your questions from your school book okay first once we are done with your school level questions then only we will go to the next level okay. So, you can see this question right in front of your screen question number 8.5 you see this please solve this anyways please attempt this question number 8.5. So, in this chapter in this chapter you will see that concepts are straightforward when it comes to the school level questions, but calculation is bigger. So, you should be good at calculation and let me tell you a fact in 2019 in 2019 the common feedback is that common feedback in January J means is that the paper was calculation intensive okay. So, many students could attempt only 20 out of 30 questions fine the attempt was less because they could not calculate very fast getting it. So, you must not use calculator in these type of calculations you must do the hand calculation otherwise you know the speed will take a beating your speed will be very less and because of that even though you know how to solve it you will not be able to attempt the full question paper okay. So, don't make that error which you know I have again told the same thing to your seniors also but few listened few chose not to listen. So, no surprises who suffered at the end okay. Anyone is able to get the answer? R is not the radius of Phobos R could be the orbital radius of the Phobos. What concept will you use here? Which concept will you use? You will use T square is proportional to R cube isn't it? So, T1 by T2 whole square will be equal to R1 by R2 whole cube fine alright. So, Phobos has a period of 7 hours 39 minutes and orbital radius of Phobos is given. So, let's say T1 is for Phobos okay we need to find the okay this is I think this is not used right now the first one the first part is something else Phobos has time period given and the orbital radius is given we need to find mass of the Phobos okay. So, we know that the when you equate mass of Phobos into orbital velocity square divided by R this should be equal to G times G times mass of mass into mass of Phobos divided by R square. So, from here you will see that mass of Phobos get cancelled out alright. So, velocity will come out to be a root over G mass of mass divided by R okay this is the velocity okay time period is 2 pi R divided by velocity okay. So, you will get 2 pi root GM G mass of mass okay into R raise to power 3 by 2 okay. So, we need to find the mass of the mass right. So, just rearrange the term first you should get what is mass of what is the mass of the mass in terms of other variables okay. So, root over mass of mass is equal to 2 pi divided by TG R raise to power 3 by 2 right then square both sides. So, mass of mass will become equal to 2 pi divided by GT square into R cube alright. Once you get this then you substitute the values okay then you substitute the values to get the answer okay T must be in seconds. So, convert 7 hours 39 minutes into seconds how will you convert that 7 hours 60 minutes 60 seconds okay plus 39 minutes. So, plus 39 into 60 seconds this is the value of T which you should substitute over here R cube you convert this in meters okay and then cube it and the value of G is known okay yeah 2 pi is squared. So, this fine 7 calculated is it no Shavan we are calculating mass we are not calculating the time period right now mass will be 5.97 into transfer 24 kg all of you clear about this one. Now, the second part of this question is assume that earth and mass move in a circular orbit around the sun Martian orbit is 1.52 times the orbit radius of the earth what is the length of Martian year in days one year should be what one year should be the time taken by the planet to complete one revolution around the sun that is how one year for every planet is defined okay. So, here you need to use this Kepler's law time period of earth around this sun which is one year is given as 365 days okay. So, let's say T1 is for the earth okay R1 is radius of revolution for the earth and R2 is for the mass okay. So, I can say that T2 is equal to T1 times R2 by R1 times 3 by 2 okay R2 by R1 is 1.52 okay 1.52 raised to power 3 by 2 you have to do it here. Now, you can you can't find out 1.52 raised to power 3 by 2 using hand calculation. So, you must be very much familiar with the lock tables okay. So, try using lock tables if you don't have a lock table please get a copy of that. So, using lock tables you'll get 1.52 raised to power 3 by 2 and then multiply that with T1. T1 is what 365 days it's just been clear any doubt please ask quickly okay fine great this is 8.5 8.6 mass is this 6.4 into transport 23 this one 8.6 okay can you get the expression like how will you find forget about the final answer okay can you tell me using what all two different methods can you get the mass of earth okay can you tell me the two different methods in which you can get the mass of earth don't worry about the final answer tell me the concept really what all two concepts will you be using to get the mass of earth yes this is one method this is one method the value of accession due to gravity G is given right. So, since G is given I can use the value of G to find the mass of earth because G must be equal to G into mass of earth divided by radius of earth square radius of earth is also given okay what is the other method other method is time period okay but time period revolution of moons orbit is given it's not the earth's time period that is given so how will you do that this is suppose moon that is orbiting the earth okay this is the earth fine so if moon has a velocity of let's say u okay and this is the orbit of the moon distance of the moon is given as this so this is the orbit of moon also right so that is r and let's say this is moon mass of earth is m e and mass of moon is m m what did I say last class any situation in which something is moving in a circle the first formula you should write is this m v square by r should be equal to g times m m divided by r square okay so from here you'll get this velocity velocity of the orbit okay and once you get the velocity of orbit okay time period will be 2 pi r divided by v getting it okay and you can see that the velocity of orbit depends on the mass of the earth all right so when you substitute v over here mass of earth will come in the expression okay so that time period is also given 27.3 days that you convert in seconds okay how do you convert in second 27.3 into 24 into 60 into 60 okay now it is a good idea to remember how many seconds one day is how many second one day is it is a good idea to remember this and also one year has how many seconds so if you remember this it will really help you so I hope all of you are clear any doubts this question 8.8 the hint is you need to use conservation of energy conservation of energy okay if final energy e2 is more than e1 so how much energy you need to give you need to give e2 minus e1 right energy cannot be created you have to give the energy anyone got the answer just do the first part okay just till here should I do it all right so let us see the potential energy is what potential energy is minus of g m1 m2 by r this is a potential energy right and we have already derived that kinetic energy is minus of potential energy by 2 right so total energy is what total energy is potential energy plus kinetic energy which is u by 2 right so always remember if radius of revolution is r total energy will be always g m1 m2 divided by 2 r this is the total energy you don't need to find out a kinetic energy and potential energy separately so it's a good idea to remember that if radius of revolution of object is r okay then the total energy will be minus g m1 m2 by 2 r okay now don't calculate right now so so initial energy initial energy when the this satellite is at that orbit will be equal to what minus of g mass of earth into mass of satellite divided by two times of 2 re that is 4 re this is your initial energy initial total energy and final total energy will be minus of g mass of earth into mass of satellite divided by two times of the new orbit radius which is 4 re so that is 8 times re okay now tell me is t2 greater than or less than t1 is t2 more or less than t2 t1 t2 is more than t1 or not right t2 is more right it is closer to i mean the absolute value of t2 is less but when you put a negative sign with it okay then t2 becomes more than t1 all right so if t2 is more than t1 then t2 minus t1 extra energy is required to have t2 okay because one thing is very uh uh you know you should note a point that if if a satellite is revolving around a radius of r then it's potential energy it's kinetic energy and total energy everything can be written in terms of r only so if r is fixed its energy is fixed okay if if its energy increases automatically its radius will change fine so suppose you have a let's say a satellite which is revolving around the radius okay and if you want to change its uh if you want to change its orbital radius then what you do you burn some fuel put you can put it like a rocket you can increase its velocity so if you increase its velocity its kinetic energy automatically increases okay so if energy increases automatically it will spiral into the larger radius having more energy getting it so if you want to decrease its radius you decrease its velocity velocity of satellite if you as soon as you decrease the velocity of satellite its orbital radius will orbital radius will change because its total energy is changing fine so total energy is a direct function of radius of revolution all of you understood this one once you know what is the uh change in a total energy you can find the change in kinetic and change in potential energy as well clear all of you okay so let's try to solve few of your school questions can you solve 8.12 okay you're doing it or should i should i attempt it yes yes all of you get the value okay learn from your seniors mistake don't avoid calculation in fact you should welcome it you should feel good that okay fine it should be like a challenge right that let me quickly find the correct answer then only you'll improve on calculation check from your back of the book is it correct whatever answers you're getting you can check the back of your book 8.12 question is that the correct answer all of you tried right now i can solve should i solve now ashutosh got 0.1 into 10 is for 8 meters deviation which is like 10 is for 7 meters 10 is for 7 meter is like 10 is for 4 kilometers that's like 10 000 kilometers more he got okay others are also getting the similar thing all right let me solve this a rocket is fired from the earth towards the sun at what distance from the earth center is the gravitation force on the rocket 0 mass of sun is given mass of earth is given and so this is earth the sun is vast it will be very very big okay but compared to the distance between earth and sun it will size of the sun and earth will be like a point mass okay so rocket is fired like this you have to find distance where the gravitation force on the rocket is zero so i think this is a straightforward question so let's say this is the distance at which the gravitational force due to earth equals the gravitational force due to the sun so they will be equal and opposite right so all you have to do is equate them so g times mass of earth into mass of rocket divided by mass of sun is given mass of earth orbital radius is this okay so let's say this distance is d distance from the earth is as right so let's say this is d and that distance center to this point distance will become r minus d okay so this should be equal to g times mass of sun into mass of rocket divided by r minus d whole square right so all you do equate this and mass of rocket will get cancelled out fine so from here you get the value of d even g is gone fine so d will be equal to r minus okay r minus d under root of me by ms so from here just simplify it further you get the value of d okay all of you clear i think this should be something just straight forward


Welcome back everyone. Today we're going to practice breaking passwords on files. These could be on files, it could be on maybe protected or encrypted disks. It's a very important skill for digital investigators to have because it's very easy to put passwords on word documents, PDFs, JPEGs, whatever it is that you want to put a password on or encrypt. It's really easy to do it now. So investigators need to be able to know how to basically decrypt at least simple passwords or recover simple passwords for different types of files. So what we're going to be using today is John the Ripper to be able to recover or do brute force password cracking. I've created two files here. One is called secret and it's a PDF document. If you open it up, open it up, then it asks for the password. If you give the wrong password, then unlock nope. Okay, so then you can't get into it. And then I also have this, I can tell that there's some sort of JPEG inside of it, just by the file name probably. And it's a zip file. And if I try to open it up, then I can see that, again, most likely a JPEG image. If I try to open it up, nope, nothing. Okay, so both of these might have potentially interesting evidence inside of them that I want to recover. So I'm going to use John the Ripper to try to recover it. John the Ripper is a command line tool, freely available command line tool to try to brute force password, try to do brute force password cracking. Yeah, so I'm going to run it from command line. The commands for Windows and Linux are pretty much the same. So it works for Windows, Linux and OS X. So pretty much do the same, the same as what I do here. For all operating systems, you can download pre compiled binary. So you don't actually have to build them yourselves. I built the binary, or I built the binaries from source, you just go into, first you download the source folder, and you go into the src folder, and just do dot slash configure, and then make and make install like usual.  What we really want to see is John. This is the the actual tool to do the password cracking. Just to show you, basically what what brute force password cracking is, is trying to guess all possible combinations of characters, characters, numbers, and special characters in a password. Okay, so we can we can see actually what John is doing by doing John. And in Linux, you run a program with dot slash. If you were doing it on windows, you would just type john.exe. And that would that would run it Linux dot slash john. And then we can do dash dash incremental. And dash dash std out. And basically what this is going to do is generate passwords incrementally and output that to the standard output or basically my screen. So if I press enter, now I'm going to stop this and we can see what exactly is this doing? Well, it's essentially generating in this case numbers, but if I go up far enough, we'll probably get back to characters.  Now it's not necessarily exactly incremental. So it doesn't go 20, 20, 21, 22, 23. What John is trying to do is guess the most likely combinations based on certain patterns. And you can configure what those patterns are. But basically it's just going through and it's trying a bunch of different patterns of characters. And what John actually does is, well, you can make it generate, generate a character set or generate a password. And then John will encrypt this password, or it will hash this password with whatever hash type is used to hash passwords for zip files or PDFs or whatever it is that you're trying to crack. So it will generate the password, hash that password, and then compare the hashes. If the hashes are the same, then that password is effectively the same or should be. Okay, so John can both generate brute force passwords and also hashes those brute force passwords. Okay, so let's start, let's start working on this. So I'm going to try to get the password hash for secret.PDF. Secret.PDF stores, the PDF stores the password hash inside the file. So if we know where that password hash is located, then we can extract it and then run it through John the Ripper. Luckily for us, John has a tool called PDF to John, and it's a Perl script. So if we just run dot slash PDF PDF to John, and then tell my desktop, so desktop secret.PDF, and I press Enter, then this is the password hash extracted from the PDF file. Now I need to save that into a location. So I'm going to save the password hash to my desktop and call it PDF.Hash. Okay, so what I'm doing here is using PDF to John to extract the password hash from secret.PDF, and then saving that to a file on the desktop called PDF.Hash. So if I press Enter, now we have PDF.Hash, if I open it up, then you can see the hash value. Okay, so now that we have the hash value, I'm going to run dot slash John, and this is going to actually try to crack the password, or password hash, and then I'm going to feed it the password hash file that we just extracted. So John, and then the file that I saved the password hash in. Okay, hit Enter. Now it opened up. Basically, what we want to see is loaded one password hash, that's good, because we did want it to load password hash, and it was a PDF, and this is the hash type that it's going to try to crack. It's running on eight open MP threads, so it's using eight processors. These are just CPUs. If you set John up to use GPUs, it will go much, much faster, and right now it's cracking. If I press any button, or any button, then you can see the current progress and basically how many passwords it's guessing at the same time. So I'm not guessing a lot here. So it'll take, for this password, I know this password is simple, so it should take a couple seconds basically to do it. Okay, so now it's finished. And it says, okay, how long it took to actually crack it? Well, it took one minute. The reason it took one minute is not because my computer is extremely fast, it's because the password was very, very easy. Okay, so now we want to actually see what the password is. So we need to use the show command, so john dash dash show, and then give it the hash file that you just gave it. So desktop, and it was called PDF, PDF to hash, okay, enter. And then this is the format of the password. So for secret PDF, the password is test one two, password is test one two, that's a pretty easy password. So if we open up the PDF now, type in test one two, and we can see the content. So the peanut is in the butter. Okay, great. Next, let's try to crack this zip file. So we need to do the same thing. There's another utility called luckily for us, there's another utility called zip, zip to john, here it is zip to john. So I want to run dot slash zip to john, zip to john is not a pearl script. But anyway, so we run zip to john, and then we give it the zip file. It's called help. So if I do this, we can actually see the hash value and it's a different type of hash for the zip file. So I just want to save it again to the desktop like I did before desktop and I'm going to call this zip dot hash. Okay, now I just need to run dot slash john, and then give it the hash value zip dot hash john. So I ran zip to john and gave it the zip file saved the hash value into zip dot hash, and then give john the hash value. So then hit enter. One password hash loaded, it's detected as zip, when zip, and then this is the hash type, we'll run on eight MP threads that looks good. So now we just wait for it to crack. Okay, so now it's finished. So we just do it like last time, john, and then dash dash show, and then give it the hash file that we had, and hit enter. And then we can see that the password in this case help test to one. Okay, so if we try to open this up, go in test to one, and then we can open up the image. Right. Now one thing I want to point out, if you notice last time, if we go way up, okay, I don't want to go past the hash. But last time, it took one minute to finish the hash or finish hashing and finding the password. In this case, it took six minutes. Now I skipped ahead. I skipped ahead so you don't have to see it all, but it took six minutes to get the hash on this system. And before the password was test one to this time, the password is test to one. So why did it take so much longer for test to one? Well, because it's more common for, for example, to have the pattern some word, and then one, two, three, four. That's much more common than having a word and then a reverse number. Now we eventually found it, and we found it only in six minutes. So it's still a really bad password. But just be aware that whenever you are trying to break a password, it's a really odd combination. For example, even just reversing numbers isn't very normal because people normally do one, two, three, four, or just some sort of, yeah, people usually do like ABC one, two, three, four instead of backwards. So small variations can have huge impacts on the time it takes to break passwords. So just be aware of that. Again, I chose really simple passwords that can break pretty easily. Notice this is a one, two, four, five, six, six character passwords. So six character passwords on my system that's not even very powerful, I can break them pretty quickly. So if you have like six or less characters, you're, let's say pretty insecure. So again, the more characters you have, the longer it's going to take. And by default, John is set, I think I need to check again, but I'm pretty sure there's an eight character limit for the default configuration. So you do need to go in and modify your configurations if you know that passwords are going to be longer, especially for Korean. Right now, it's just testing basically ASCII character sets. So if you want to do Unicode, you also have to get different dictionaries and different libraries of words and tell John how to use those words. Okay. So that's it for basic password cracking. Thank you very much.