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today today's topic is entries and exits
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so
during this mini class i'm going to be
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you can see my order entry window you
can see everything and if you want to
download a few of these live trading
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and
you'll also get
my pre-trading checklist a special video
on holding losers too long and selling
winners too soon which is something that
many traders struggle with all right so
with that said why don't we go ahead and
jump in to today's topic which is
entries and exits for momentum trading
i'm going to go to full screen
and
i've got my drawing tool
and yes it's working all right so we'll
add some uh graphics here make this look
nice and pretty and let's go ahead and
jump in i'm going to go
full screen
let's see and i'll
remind folks
who perhaps don't already know
the trading is risky i want to make sure
i put my disclaimer out there trading is
risky most beginner traders do lose
money and my results are not typical
having said that it's important that you
know the person that you're learning
from is qualified and
i am uh i will show you let's see um
where's my trader view
i think i had it up here um
looks like maybe i closed it
i have uh over 11 million dollars in
gross profit trading a momentum day
trading strategy that i'll be sharing a
little bit with you today uh just as
as it pertains to entries and exits so
i do think that i'm very qualified to be
speaking on this topic
so if you're out there wondering well
you know is this even real money you can
go over my website warriortrading.com
and you'll see my broker statements on
the footer of the website
all right so uh with that said let me go
ahead and
jump back in here all right so
and back to full screen
so high level before we start talking in
detail about
entries and exits
i want to talk about the momentum
checklist
this is uh pretty important because
the problem that a lot of beginner
traders have is trading the wrong types
of stocks and when you trade the wrong
types of stocks you invariably end up
catching yourself with big losers small
winners
and chasing
chasing setups because they don't
resolve the way you would expect them to
so what is the criteria or what is the
checklist for momentum
well so for momentum you can trade all
day long i wouldn't say that you can
only trade in the morning or you can
only trade in the afternoon you can
trade momentum at any time of the day
however i've always found that the first
two hours are the best and that's
uh you know it used to be from 9 30
until about 11 30 and more and more so
it's starting pre-market so from 7 30 8
until 10 30 11 11 30 is still pretty
good cut off but pre-market i'm trading
8 8 30 9 a.m before the market even
opens now if you're not sure how to
trade before the market opens
i have a separate video where i talk
specifically about that so
don't worry i can answer that question
for you separately but
uh generally speaking i would say the
best time of day to be trading
aggressively is early earlier is better
all right
so now what type of stock do you want to
be trading
if you're focusing on momentum and
you're looking for stocks that have the
percentage or the
potential to make big percentage gains
you're going to be looking for lower
float stocks
so one of the things that i found in my
career is that you're never going to
capture the entire move if the stock
goes up
you know 50 you're never going to
capture the full 50
you'll capture a small piece of that
so if a stock is only going up four or
five percent a small piece of four or
five percent
even if you're using leverage even if
you're trading with options
isn't significant you're not going to be
able to make good money so i think you
want to look for stocks that have the
potential to go up at least 10 to 20
percent but really with a target of 50
75 100 or more
so i'm going to pose the question to you
how does a stock go up 100
in one day what
in maybe the past when you've seen that
happen what has been the context around
it what's been the story around that
stock how has that been possible if you
think of uh dwac the
special acquisition company that you
know was slated or is slated to acquire
trump media true social that went from
10 to 175 dollars in two days
was that the type of stock i would like
trading
absolutely definitely and i did trade it
that had a catalyst and it had a
relatively low float the float was 28
million shares
so there were only 28 million shares
available to trade
that's certainly under the 50 million
cut off and
combined with a really strong catalyst
there was a huge imbalance between
supply and demand
and that in turn resulted in very high
relative volume
so relative volume
this is simply
uh oh sorry relative volume right here
this is simply the volume today versus
what is average for a stock over the
last 14 days so if a stock over the last
14 days has been trading on average with
a hundred thousand shares a day and
today is trading 150 000 shares its
volume relative volume is 1.5
200 000 shares would be a relative
volume of two right so and it goes on um
so on and so forth
i focus on stocks with at least two
times relative volume i prefer five
times relative volume
all right so a stock will have five
times relative volume if it's already up
20 30 percent has a great catalyst
that's almost always going to be the
case
ideally for a strong momentum chart
momentum stock we want to see a good
daily chart the daily chart should be
above the 9 ema we also would like to
see it above the 200 ema but if it's
below the 200 ema we'd like to see that
has a lot of room to come up to the 200
ema before it hits resistance there
again
not trying to get into a ton of
technical analysis here in this episode
i have another episode uh that you guys
can check out on um the four indicators
that every trader should be using so can
point you in that direction i'll put
some links to these videos in the
description um
so requirements stock should have a
catalyst or be a former runner which is
a form of momentum stock
price range between a dollar fifty and
twenty but this is applicable on all
price ranges uh dwac went all the way up
to 175 dollars a share so it's certainly
possible that you could trade a higher
price stock uh trading momentum but the
risk is going to be a little bit higher
so how do we find these types of stocks
to trade i find these types of stocks of
trade every single day using scanners so
i use stock scanners to search the
market and i have a couple um right over
here that i can show you
so uh this is a the software that i use
right here
so i can go scanners and
do large cap
i can go to small cap top gappers so
these are the top gappers today in the
entire u.s equities market
if i go to scanners i go to high a day
momentum these are stocks that are
moving up right now in real time so this
is how i find stocks to trade and then
once i've found a stock that i think is
a good candidate because it's got high
relative volume it's up enough it's got
a good float the price is okay the daily
chart looks good then it's time to take
the trade
all right so this gets into entries and
exits
entry is based on a chart pattern
generally speaking you probably already
understood that and i'll go split screen
so you can see those
charts a little bit better
so a chart pattern
is
basically it's a pattern that you are
familiar with that you know consistently
gives you winners
okay so these are just four examples
of chart patterns
in each of these patterns there is an
apex
which is the entry point
the point the price to be
a buyer
all right so in the case of
right here this first example where
we've got this sell-off
the entry is the first candle to make a
new high right here so if you've got
five 10 plus red candles in a row your
entry is the first candle to make a new
high and now some people will have some
questions about that for clarification
so let's look i'm going to go
full screen here all right so
this right here as you can see
is a bull flag
all right
so this stock has squeezed up right here
it's squeezed up up up and then it's
experienced a little bit of pullback
we've got one red candle and we've got a
second red candle
so during this pullback
this is where i might be looking
at the stock and saying i think i want
to buy this now an aggressive trader may
trade during this ramp up right here we
don't know what time frame this is we
could say this is a one minute time
frame and if it is then you know that
right around here was a micro pullback
right around there because you can see
how this candle was a high and this one
opened a little lower which means it
popped up it pulled back just for a
second and gave you a micro pullback so
you can see micro pullbacks on
this little instance right here
so it moves higher it pulls back just
for a second and then it continues all
right sometimes it looks like this and
sometimes it looks like that so a micro
pullback is a totally valid entry
now in this case that would be
aggressive
and so it would be a bit of a more
conservative entry would be waiting for
the pullback to occur
and then buying the first candle to make
a new high now notice i have this dotted
this um this little sort of dotted line
here
as soon as this green candle breaks the
high of this previous red candle
i'm a buyer
now if this candle let's say the high
this candle is five dollars the high of
that red count is five dollars
when this starts coming up if i see
green
on the tape
which is right next to our level two
window if i see green on the tape at 495
496 497 498
i may go ahead and i likely will go
ahead and buy to anticipate the break
through this level
sometimes i'll take a starter 5 cents or
even 10 cents early
and then i will add as it approaches and
comes through that level
i'm then looking for continuation and
resolution of the pattern which in this
case is through the high of day
if i'm feeling aggressive i can go ahead
and add again as it breaks through high
of day
and then as we squeeze up here i make
the decision of either taking profit off
the table
or
if let's say right up here is let's just
say this is
six dollars i may say i'm gonna go ahead
and add for the break of six because
this is parabolic it's moving so quickly
that i have the opportunity to keep
adding because this could go higher and
that type of decision would be based on
the quality of the daily chart the
quality of the catalyst and the flow to
the stock
so
when we're looking at these patterns
these are all these are just examples of
patterns and there's
literally hundreds of different patterns
that you could choose to trade
one of the things that's going to be
important for a beginner trader is
making a decision about which patterns
you want to focus on right i mean
ultimately that's that's an important
component of
of your strategy so as part of creating
a strategy
for reference
so on this page here
this has a pdf of my micro pullback
strategy so the micro pullback strategy
is what we've got going on right here
that's a micro pullback it pops up it
pulls back for a second and it continues
it doesn't even form a full pullback
like what we got right here
or like what we saw right here
these are both stocks trending up this
is a stock trending down and then it's a
reversal trade
all right so this is a very well defined
pullback this is a well-defined pullback
that has a false attempt pulls back and
then goes higher and this is a micro
pullback so if you want to learn more
about those specific strategies that are
around those patterns then you know you
should check this out
if you already have
a strategy that you're sort of trading
but you just feel like your entries
aren't dialed in you're getting in a
little too high
you're not selling it quite the right
place you're not fully maximizing on the
opportunities of these trades
then
when we get into the live trading
archives i think that's going to help
you uh quite a bit
all right so
let's talk about the entry and by the
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now let's talk about the entry all right
so what is the apex point of this
pattern
so back to our little case study right
here
the apex point
of this pattern
if this if you're going to take an entry
on the bull flag
then the apex point
is the first candle to make a new high
which is right here
that's the apex point now some traders
would take a high a day break
and if you're taking a high day break
then your apex point is literally high
of day
all right so this could have two
important levels i would say important
levels to watch
this right here and then this up sorry
this right here and then this up at the
top all right depending on which
strategy you're focusing on if you're
taking a high day break you're going at
the top if you're taking first candle
make a new high on the bull flag pull
back then you're entering entering right
there so what's the apex point of this
pattern now if we go back to our
previous slide
you'll see that
this pattern down here
initially
was a bull flag
it squeezes up and then it pulls back
and the first candle makes a new high
right so that's your first entry first
candle makes a new high right there
max loss is the low of this pullback
it goes up but it doesn't break through
the high
okay so this ends up forming a false
breakout
however this is a different pattern as
it continues to consolidate above the
low of this pullback this is what we
would call a longer period of
consolidation it is a wedge we can call
it an abcd pattern
and now we're watching for the price to
break this high right here and then go
through the high a day and what we find
is that when these stocks continue to
trend in these small ranges that
eventually they break they can break out
up or they can break down
right so there's no guarantee that's
gonna break to the upside but if this is
a stock that has a strong catalyst that
has a relatively low float
it's a popular stock a lot of people are
watching it the price is right then
there's a good chance it'll break to the
upside and time of day is also a factor
but there's a good chance so in this
case initially with your entry down here
and your max loss
would this have been a winner or would
this have first trade have been a loser
well that depends on how you trade if
you're an aggressive trader using
leverage then there's a very good chance
that you would have taken profit off the
table as it came up here or as the first
candle closed red
and or made a new low versus this
pullback
because this was telling us that it
can't get through the high on this first
attempt right it's pulling back all
right so
this should have been a winning trade
but if you had a very small position
maybe you'd say well it wasn't up enough
to be a winner it didn't hit my stop so
i'm still holding it pulls back almost
all the way back to your stop
but then it comes back up
and then on this attempt as it breaks
through the high this is where you would
look to maybe take some profit off the
table but a more aggressive trader could
take two three or four trays in this
area your first trade is right here
your second trade is right here and then
you've got another trade on an ad for
the break through the highs
so you can be very active if you'd like
to or you could be less active so you
have to first figure out what is the
apex point of the pattern and if you
don't know the apex point of the pattern
it's
because of the definition of apex
the other way of saying it is what is
the point that needs to break for this
pattern to be resolving
all right if you don't know what that
price is you need to get a better
understanding of the pattern that you're
trading
then a question is what is the proximity
of the nearest half or whole dollar
relative to the apex point this is
important because
we have psychological resistance around
half and hold dollars so as stocks are
approaching these levels it's very
common that we find resistance so back
to our little chart here
so in the first example i think i said
this was like 498 right so 4.98 or that
was 5
so i'd be a buyer
as it's approaching that critical level
of 498 for the break of five i might be
buying at 495 496 might even be buying
it for 485 depending on how much it
pulled back and what the level two looks
like now level two and time and sales
i'm going to show you when we get into
the live trading archives and in just a
few minutes of this
this episode
but if this right here this high a day
was at 5 50.
then your high a day is right at
psychological resistance and there's a
higher likelihood that we're going to
come up and we're going to double top
against that level because it's
psychological resistance then we need to
pull back hold over five psychological
support and then come up for a second
attempt through five
so this is something that we're going to
struggle with a lot around half dollars
in whole dollars stocks that are really
really strong sometimes they can just
break right through those levels which
is phenomenal when they do but more
often than not
a stock is going to run into a little
bit of resistance so
if the apex point of your
chart or of your pattern for instance is
like 495
that presents a problem because the apex
the breakout spot is just below
a psychological resistance of a wall
we'd rather have an apex point be right
at it or just above it so when it has
that burst of volume coming into the
breakout it's enough to carry it
clear through that level
when
it has that burst of volume but then it
runs right into a sort of a ceiling
that's when you can have a false
breakout
so what is the apex point of the pattern
what's the proximity of the nearest half
dollar whole dollar relative to the apex
point and what is the max loss of the
pattern so the max loss generally
speaking is going to be the low of this
pullback right here so this is your max
loss
so if you're entering and it's the
bottom of that wick so if you're
entering in the high here is five
dollars but this is 425
that's a 75 max loss
that's going to be too much risk
most likely it doesn't mean you can't
take the trade you could still take the
trade and you could take the approach of
saying you know what i'm going to buy it
at 4.95
but i'm not going to hold it all the way
down to 425 i'm just going to set an
arbitrary stop on this at
475.
so you know risk
20 cents
and it might drop down to 475 and then
come up for a second attempt at five and
the chart will look like it was never a
bad chart why did you stop out well it's
because i got in with a little too much
size near the highs i couldn't afford to
hold through the whole pullback
different traders will have different
points of view on this
because i try to leverage my account
which is to say i take as big of a
position as i can possibly take
for a lot of setups then i'm not going
to be in a position to hold through a
really big drawdown if you're gonna hold
down 75 cents based on two to one profit
loss ratio you should have the potential
to make a dollar fifty so i'd rather
hold down 15 cents with the potential to
make 30 cents 30 cents especially on a
three four dollar stock is much more
obtainable than you know 50 75 cents or
a dollar a share so
you know again that that's you know your
discretion do as you'd like use either a
tight stop uh and know that sometimes
you get stopped out and then it'll end
up ripping
but of course the best setups work right
away you know the best setups don't
falter they just go right through that
level so if it doesn't work right away
well you know it's probably okay you can
always get back in if you really want to
or you can use a looser stop but then
you're gonna have to use smaller share
size and the profit loss ratio still
might not make sense
so the max loss of the pattern and then
uh enter the position then this is what
i do if there's high relative volume and
green on the tape as it approaches the
apex point so high relative volume again
the term that we talked about already
that's versus the relative volume over
the last 14 days we want to see it at
least two times but preferably five
times or higher and just for reference
today
the stocks that were on the scanner
uh so this one leading gapper relative
volume 710
spi relative volume 22 acer relative
volume 310 i mean these are all
except for this one they're almost all
far in excess of the two to five
so
usually that's not going to be hard but
sometimes you might have a stock that
just pops up on one of your scanners in
the middle of the day
and
you know it might have lower relative
volume i mean all of these are in this
column here
are still pretty high this is 3.46 but
this one's 0.42 right so that might be
one where we say you know what i the
relative volume is too low i can't
justify a trade on it and generally if
you looked at that stock what you would
find is that it doesn't have news
so we don't really know exactly why
you know it's popping up five or ten
percent
you know it could be i don't know some
large trader hedge fund or mutual fund
decide to take a position
there's a million reasons but
the likelihood that it's going to
continue intraday to become you know a
100 move without
a catalyst is sort of unusual so then
we've got our
entry order types
okay so for actually executing your
entry
so we're going to use i'm going to use
hotkeys generally but you can use an
order entry window if you'd prefer it's
up to you
and you'll see in the live trading
archives examples of me using both so
i'll show you that we'll get we're going
to get into those examples in just a
moment and it'll be a little easier to
explain but i just want to make sure i
kind of covered the bases here with this
first
so um
using hotkeys uh or in the order entry
window my order type is a marketable
limit order
so a marketable limit order
uh that's a limit order where you're
saying okay the ask on this stock here
um you know right now is let's say the
spread is 4.95 by five dollars
so i'm going to put my buy order on this
at 5 15
and i'm going to press the buy button
and the second i press the buy button
i'm going to start buying shares at the
current price of whatever it is 4.98
4.99
i will keep getting filled my position
but i won't fill anything higher than
the high of my limit order so in the
case of that example would be 5 15.
i do that because
and i always buy on the ask i don't buy
them the bid i buy on the ask because if
a stock is strong i will not have the
opportunity to get filled on the bid if
it's really strong it's moving quickly
right now i won't fill on the bid so
breakout traders always buy the ask and
then we also will try to take profit on
the ask we'll talk about that a little
in just a second
so
as soon as i get in trade sometimes
people say ross how do you manage your
risk
do you set a stop order you know what do
you
what do you how do you do this so
i do not use live stop orders and i
never have
the reason is because if you use live
stop orders if you put a stop order out
let's say you buy 25 000 shares of this
stock um that we were just
talking about let's see by 25 000 shares
of the stock at five dollars and you put
a stop order at 475 it's a live stop
order remember that broker dealers can
see your stop order and they could stop
hunt
stop hunting is when the market makers
and a sell order goes through they clear
the book it drops down and as it sweeps
down every order that goes through below
someone's stop will make those uh
orders execute as market sell orders the
orders fill the stock drops and then
immediately fills back in so you get
these flash drops which are these candle
wicks and then it fills right back in
that's stop hunting it's called stop
hunting and i never want to subject an
order to get uh picked up by stop
hunting market makers so i don't put out
live stop orders now pre-market
uh you can't put out stop orders anyways
so prior to 9 30 stop orders
aren't allowed so it doesn't really
matter for pre-market and for regular
hours even though i could do it i don't
do it so
mental stop only which means i need a
button on my keyboard that i can press
and when i press it my order will sell
at the bid
to bail out it's basically a panic sell
button i don't want to have to pan excel
if i can help it but i have that button
on my keyboard just in case all right so
that's a hotkey
so now let's talk about the exit if this
is a leveraged position all right so a
leveraged position would be where you're
using leverage or where you basically
have you know a huge position in the
stock
i'm probably going to want to take a
little profit through the breakout
my highest risk is from the moment i am
in with full size until i've taken some
off the table so i'm going to be
inclined to take some off the table
and then i can look for continuation to
add back to my position and this starts
getting into very active trading
which is what i do when we've got
parabolic momentum for just base hit
stuff i may not add back i may just get
in and then take profit through the
breakout if it's a smaller position you
can hold through the breakout and then
look for continuation to the next
resistance level
which is fine it just depends on your
account size and how aggressive you are
in in your strategy
so depending on my cost basis and share
size if i see red on the tape large sell
orders or a red candle on the one minute
and certainly on the five minute that
may cause me um to go ahead and bail all
right so and if i did that i'd be trying
to sell on the ask but if i can't get
filled then i'll hit the bit however
using my hotkeys i sell into strength
and i avoid hitting the bid at all costs
because it feeds weakness and it will
hurt my existing position so if i'm
holding 25 000 shares and then i hit the
bid for 12 500 shares it's gonna show as
red on the tape
right and what that red signals to other
traders is weakness when i see red like
that i interpret weakness i never want
to hurt a position that i'm still
holding and so i'm always going to try
to sell into strength now a lot of
beginner traders out there certainly
robin hood traders traders that are on
their mobile phone
they might just do market order entry
market order exits market order entries
will be green on the tape because
they're a buy order market order exits
will be read on the tape
and if you hit a market order exit with
a large position which we sometimes see
on some of these meme stocks it can
cause these momentary flash drops as the
market makers clear the book the fills
stop hunting maybe perhaps as well and
then it fills back in
so that's something you have to be
careful of it is more common on certain
types of stocks especially meme stocks
where you have multi-day
hold uh traders that are holding
positions from you know days or weeks
previous that the stock has been
trending
using hotkeys i can also set profit
target orders so i can send order to
take a
quarter of my position off the table up
15 cents or 25 cents i mean all of these
hotkeys you can configure however you'd
like i will do that in certain instances
not all the time i'm more likely as it's
going up just to put out my order at
that moment to take profit um at the ask
you can also use offsets above for
profit or below if you've got a stock
with a big spread which is fine but if
you have a tighter spread stock you
wouldn't want to do that probably
stop the rest at average cost all right
so stop it which is break even
if it's a false breakout i'll still try
to get out on the ask if i can but i'll
hit the bid as a last resort
okay so i went through that fairly
quickly
but let's go ahead and
look at some live examples and see if
this helps add a little bit more context
to
those
those descriptions
all right so
hang on a second
and by the way those just getting tuned
in
in case you didn't already know
i am donating a dollar for every thumbs
up we get during this video for
humanitarian causes in ukraine and i'll
be donating two dollars for every share
that this uh video gets so i would love
for you guys to
share
hit the thumbs up and share this
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all right so
let's see
okay so this is gonna be the first one
we look at and so this is one of the
live trading archives um
one of the live trading archives that
i've included in this um
bundle of free downloads we're going to
give you guys is
from a day where i made a hundred and
thirty-two thousand dollars
so you can check that out that's a
pretty cool one
all right so let's look at this here
all right so first we're gonna get
oriented
so
let's look at our chart pattern
okay so our chart pattern's right up
here all right so
we have a stock that has made a big move
the ticker is abio the percentage gain
on the day is 210
percent okay this is a big percentage
gain
let's see um
let me check the float on abio today is
14 million shares on this particular day
it may have been lower i'm not sure but
in any case so
we've got this move up it's about 10 30
a.m we have a red candle at the top a
second candle pullback this candle has
formed what you'll notice is that i have
already
drawn a line at 12 51.
note that 1251 1250 is psychological
resistance because it's a half dollar if
we look at the one minute chart you will
see that it pulled back quickly
came back up and was under 12.50
couldn't break did one of those flash
crash kind of drops came back up went
sideways tried to break 1250 again
couldn't do it came back down
double bottom
off of 1160.
now if you're a dip trader you could
certainly
look for a double bottom off of 1160 as
one of your entries that's an entry that
i would consider to be
riskier and since a lot of you are
probably beginner traders and feel free
to comment below with how long you've
been trading which is out of curiosity
since my guess is many of you are
beginner traders i would say that dip
trading is not the place to start while
you might think well you get a better
entry buying on a dip that's true but it
requires a high degree of intuition
about whether or not the stock is
dipping and is going to keep going
higher or has reversed and is going to
keep going lower
so that educated intuition takes a lot
of experience so i would start by
focusing on breakout trades breakout
trades are where you're going to have
high volume it's where you're going to
have breakout or bailout instant
resolution when they work they work
right away when they don't work they
don't work there's no guessing and
you're not going to be too much in the
habit of buying stocks or selling off
so thanks for
for chiming in there on how long you
guys have been trading so a lot of you
are fairly new so i would be very
cautious about buying dips
okay so um so on this one
um
let's see
so this is our chart pattern so i'm
gonna go ahead and press the play button
uh and this
do i maybe i'll
so
if you don't know what this window is
this is a level two window i have other
videos on how to read level two how to
use level two so
i have content around that if you're
interested um
this is our order entry window right
here
okay so this is my order entry window
and i have this same setup for four
different stocks one
two
three
four
and then i have the chart in focus for
the one stock that i'm trading
okay so in the case of this stock i
already have an order prepared at 12.52
that's the price for 2 000 shares
and i have my mouse on the buy button i
am ready to click the buy button and you
see there's some green on the tape right
there so when i'm talking about the tape
this is what i'm talking about this
section right here those are the
transactions that are actually going
through
the market
there's more green on the tape there at
40.
so the question on this is will i get in
a little early to try to anticipate the
break through 1250
hands on there we go so hand was on the
buy button right there
now 2 000 shares as many of you know for
me
is a starter position
so this is a trade where i took a
starter position
at
12 20 and 12 25. now i didn't really
care whether it was 20 or 25 my order
was still 1252 but i clicked the buy
button twice
and in the same second i filled five
cents apart
my order's filled actually between the
spread
so
this first entry
is not one that is a beginner trader you
would have had the confidence most
likely to take
your entry is going to be 12.50
now you pay a higher price for
confirmation
but you avoid the risk of false breakout
at least the fact like right here if
this drops back down to 1160 you'd look
back at the chart and you'd be like why
did you even buy it you didn't get the
first candle to make a new high
so now up here
i have added at 37 and
so initial starter was at 20 now adding
as we're approaching this breakout level
12.50
now we see on the level 2 a 15 000 share
seller at 42.
new order i've moved up to 1261.
that seller is starting to get bought up
see it went from 15 to 10 to 7
7 000 shares on the ask
and then it pulls back again
this is a chart that i would say is
multi-time frame alignment
that means both our one minute and our
five minute are giving us the same
message now there's a little bit of a
red flag on the five minute chart
and that is that the high a day volume
uh
the highest candle was a red doji which
is a reversal indicator and it's on
fairly high volume
aside from that
it's a pretty good five minute chart for
a first candle to make a new high it's
also just a little extended off its nine
moving average which is this gray line
so it's not perfect but it's pretty good
the one minute is fine
and the level that we need to see break
is 12.50
so that right there
is what we look for that's called
resolution
that's the breakout now one of the
problems is if you waited for the break
of 1250 in this case
you might have missed it
right
so i now have 10 000 shares at an
average price of 12.32 and i'm up
3321 dollars so you can see my open p l
right here
and this is a up a spot right here where
i could take half off the table if i
wanted to
alternatively i could add because we're
still just opening up confirmation is
just started and we still have a target
of 13
and i don't remember what i do so we'll
we'll we'll both find out
uh but let's just rewind that for like
three seconds
so where was the indicator this was
gonna break well if you were looking at
the chart
for your indicator it happens you don't
really see it on the chart it just
breaks through this level so on the
chart you would probably say well based
on the chart pattern the the entry is
1251 but of course it'll break quickly
because that's the apex point so i'll
probably want to get in this around
maybe 12 45 12 48 just a little bit
under that level to catch that break
through that level
now let's just step back for one second
and talk about traitor psychology
so
we want to think about the inverse
position what if you were short this
stock what if you shorted this stock
maybe around 1240 one of the times it
came up to 1250 and then reversed off
that level because we know that there
was psychological resistance at 12.50 so
you're short at 12 40. it drops down to
11 or 2 sorry 12 maybe you add short it
flushes down to 1160 it looks like it's
going to roll over and it's done you've
got that red hi a day doji so makes
sense
but then it starts curling back up where
do you cover that position
well your stop is 1250 because that's
the pivot
but alternatively you're certainly
covering it high of day which is 13. now
of course some short short sellers would
say i'm going to keep adding at 12 50
and 13 and if it goes to 14 i'll add
more if it goes to 15 i'll add more and
if it goes to 25 i'll add more but
that's also how those short sellers blow
up accounts so everyone has to manage
risk whether you're long or short so
1250 because that's a place where a
short seller will likely cover you
should see short covering to help propel
the stock through that level
that's what you want to see
all right so at 12.50 at 12 45 12 46 12
47 12 48 you're gonna have some short
sellers who start to cover a little
early so they don't get as much slippage
on the breakout this is the exact same
as what i do when i'm selling a stock at
1205 before catching the break of 12 and
then slippage down to 1160 at the bottom
of a bottoming tail
right so it's anticipating what's going
to happen
so as a long trader you can capitalize
on that by getting in as you're seeing
green on the tape to anticipate the
squeeze through that level
you're also going to have some traders
who use buy stop orders
so a buy stop order is an order that
will trigger when a stock crosses a
certain price so that's that may be
something that someone would use if
they're taking more of a five-minute
long trade probably with smaller share
size for a longer hold time if they put
that order at 1250 it's going to execute
market long as soon as it breaks 1250 so
let's go back to this
example here so let's again reorient
ourselves so we've got 1242 on the ask
we've got green on the tape
and right there all of a sudden look at
this green now we're at 1250 and with
all of that green it's going to propel
it through this level and it's going to
snap immediately to 76. 75 and i put the
order out right there to take half off
the table
okay so i took half off the table
selling into strength
i'm going to be happy to add back to
this position but first i'm taking
profit off the table i'm protecting
myself in the event that this becomes a
false breakout
where it goes you know 1266 and then
immediately reverses
so i'm you know
you know taking a little profit off the
table which is the right decision so
sort of adding a little cushion
and then the high was 1280.
i've got another order here at 1266
to sell the ask it's not selling
this has to hold over what level well
psychological resistance was 12.50 so it
can come back and re-test 1250
and if you're aggressive you could buy a
dip off of 1250 or 1255 with a stop at
12.48
right because again you're setting your
stop right underneath psychological
support
and this just came down and it held that
level so now is it going to break
through 1240 uh 1284 let's see
so let's back this up again let's watch
the whole thing
all right so we're coming up we break
through 12 7 12 50 we'll go 1270 1277
and i take a little bit off the table at
69.
now we've got 12
74 i put an order to sell half it
doesn't fill
and see how i place an order at the ask
and then cancel it and place a new one
if my order doesn't fill i'll i have to
cancel and place a new one but i'd
rather sell on the ask than selling the
bid and look at that there we go
okay now this
in this instance
look at that
i just added at 1207. sorry 1307. now
we're looking for a squeeze up to 13.50
look at how fast that trade was
let's back this up
so this would have been a perfect
example of a dip off of 1250 right down
here 1253 1258 this would have been a
great place to buy
with a stop at 12 48.
and and that's totally fine so this is
what we would call right here
this is a one minute micro pullback so
on the five minute this is a five minute
bull flag we have resolution and this on
the one minute we would call the first
pullback following the five minute
breakout or we would call it a one
minute micro pullback following a five
minute breakout
so we popped up
i was already in from before but if you
weren't already in
right get in the mind of someone who's
not already in if you're not already in
where would you buy
well you'd let it pull back and then
you'd buy the break over this candle and
your target would be a squeeze to the
high what if you're still short what if
you haven't covered yet where would you
cover
as it breaks through this level because
you don't want to be holding as it
squeezes through the high
could go into a halt up
all right so let's watch this again
we'll back this up
so the entry again on this one my entry
was a little bit early
on a sort of a dip
so this wasn't the the best example for
a beginner entry because i was i was
adding it um 1225
sort of mid-range with a stop just under
12 dollars but then i added at 12 35 but
right here as this comes up
so you could have certainly
added right here at 12 40.
and does it break
not quite okay that's okay so you still
have your stop most likely at 12. when
you get in a little higher you've got a
bigger stop
and then you watch for the second
attempt
so now it's coming
let's see 35 46
40 set 40 uh sorry 36 37 49
and this is the place to be punching
that buy button
and now you could take a little off the
table if you'd like
or you could even keep adding right in
here depending on how aggressive you
want to be
adding right there at 58 and 60 would be
a great dip trade stop is at 48. now
we're looking for the breakthrough 85.
it breaks 85 goes right to 97. now we're
looking for the pop through 13.
there's 98 on the ask pops up there's
1308 there's 13 24. i got an exit 4 000
shares at 13 24.
okay so this is just one example
now
for reference um
again this is
this is what i do
for members of warrior trading we've got
any more examples i could possibly count
our slide deck is over a thousand slides
and it's all strategy development
because there's more than one pattern
this is just one pattern and this is one
example of that pattern but i'll show
you a couple more today all right so now
let's look at um
this one which is called let's see
again those you guys who haven't already
downloaded um
uh or signed up here for this download
make sure you do that you'll get a copy
of my micro strategy lesson pdf a copy
of my small account strategy worksheet
some more live trading orders just like
um
live trading archives just like the one
i just showed you i appreciate trading
checklist and a special video on holding
losers too long
all right
okay so here's another one
all right so this one
this is a micro pullback
okay so uh and yes thank you for those
who are hitting the thumbs up i really
appreciate it again donating a dollar
for every thumbs up and donating two
dollars today for every uh time the
video is shared
so right here this stock wahfu it's up
349
it just squeezed up through the volume
weighted average price that's a
technical indicator again if you're not
familiar with those indicators i've got
other videos where i talk about them so
now we're on a one minute micro pullback
following the break of v wap
okay the high is looks like around 12 uh
10 12 or so
i'm holding uh 333 shares at the
beginning of this video
and watching hand is on the buy button
so again getting oriented we've got our
level two we've got some green on the
tape order entries ready for 10 10 and
30 cents share size 1500 shares hands on
the buy button
are we going to hold 10 psychological
support actually looks like the high
right here
was a little a little higher maybe
around 10 dollars and 20 cents
and one of the things here is that this
candle closed red so like let's look at
our volume profile high volume green
candles light volume red candle now
we're looking for first candle to make a
new high high volume
so
for those that are curious like what's
the benefit of
you know being a member of warrior
trading one of the benefits is the live
market commentary
while i'm trading because i've been
doing this for so long
i can keep all of these things in my
focus at the same time
volume profile position relative to
technical indicators position relative
to high of day the candle of the high a
day volume the daily chart this is a lot
of stuff to keep organized at the same
time and this moves quick so it really
helps to have you know first base coach
uh kind of saying this is what i'm
looking at here and it's not just first
base coach i mean i'm actually running
around the basis here doing the trades
okay so let's back that up so this was
an entry exactly the first candle making
new high
see the green on the tape right here at
14. boom boom that's where i'm pressing
the buy button now i just bought as it
squeezed up here
6 000 shares
okay
this candle has just started to make a
new high
and now we're looking for a squeeze
through the high right there target is
12.50 my cost basis is 10.14
okay so let's watch this
there's green and look at how fast that
resolves up to 10.49
now i will say that this doesn't have
perfect multi-time frame alignment the
five-minute charts not perfect the
five-minute charts in fact a bit
extended with this entry up here but
this is a one minute pullback following
a fresh break of v web and this is where
short sellers will start to get squeezed
out who were holding short for an
all-day sell-off
because now all of a sudden uh-oh this
thing's back above v-wap and it's
looking strong for a move up to 12 39
so let's see how high it wants to go
to manage risk i take a little off the
table into that squeeze
right so it took a little off the table
there new order is ready to add back the
high this candle is around
10.60 added back right there at 10 55.
i took profit and then i added back on
that micro pullback at 10 55 now looking
for 65 75 and 85
the red to green is at 11
11 right here is today's open
so there's 75 now i'm holding 6000
shares to 42 average and i just added
right there for the breakthrough eleven
taking a little profit off the table as
we squeeze through the psychological
resistance of eleven dollars
now eleven is holding a support i may
wanna consider buying a dip right here
okay 11 broke
still holding a 1052 average putting my
order 1150
and added right there 10.99 average 7
000 shares long
profit at 11.25
look at how fast this is moving now
these are bordering on quick breakout
trades
right around psychological levels of
support and resistance bought the dip
right there at 11 13
so that was a dip trade it should break
over 25 real quick
we don't want to break below 11. and i
stopped out there for a small loss as it
came back down to 11.
so you know again
this is initially
this was the first setup and within that
i took three trades was it three or
maybe four
so the first trade was uh the first kill
to make a new high
and then i took profit at 55
and then i added back at 55 with the
squeeze up to 11
and then it pulled back and then i added
back around 11 whatever it was for the
move up to
11.50 so trading around half dollars
whole dollars
very aggressive
that's the way i trade it you don't have
to trade it that aggressive you could
trade however you want you could say oh
well i'm just going to buy this and i'm
not going to sell it 11.50 i'm going to
set my target at 12 19 and i'm going to
let it work that's fine too
a smaller position but a bigger move
it's fine just different ways to
approach trading
so my exits are entirely with hot keys
by pressing the buttons
little pause there that looks like
possibly a little order a little um
internet latency
it's very unlikely that the level two
actually paused
let's see
so this is where i got in
there you go look at that wow
that right there was a clean trade let's
back that one up
so the first dip didn't work the second
one did
so bought the dip at 11 13
stop is 11
now that's the same thing i did before
remember i stopped at 1101 so i lost
like 900 bucks but i got back in i tried
it again
alternatively where could you wait to
add well let's look at the clock i
haven't even mentioned this yet the
clock we've got our clock right up here
it's showing 10 22 and 40 seconds
how many seconds do we have left on this
one minute candle we've got 20 seconds
left of course 60 seconds in a minute
so what we're looking at here is first
candle to make
a new high
all right now our high was 11.50 and my
suspicion here is that this is going to
break look at that now this candle is
turning green
now we've got 35 this is a micro
pullback and i'm adding right here
at 44 for the breakthrough psychological
resistance
even if you only add there that's fine
as your first trade you get in at 11 44
for the break of 11 45 11 sorry 11 50.
and watch 11 50 hit pause for a second
then that's 11.72
now you want to go real aggressive
add here at
11.75 why not you've got an average of
11 21
do it
or take profit either way
right if you're aggressive you're going
to add and sometimes i will and
sometimes i won't in that case i sold it
1181 and that was most likely a hotkey
mistake i probably meant to sell half
and i accidentally sold the whole thing
and sometimes that happens with hotkeys
you know you've got a whole set of
hotkeys on your keyboard and in an
instance you press one and then oops uh
oh
i pressed the wrong one and on that
trade with nine thousand shares i left
40 cents on the table four thousand
bucks
just about
so now we're coming up to 11 26
and i realized oh shoot i fill up see my
mouse is over here
at this and i'm realizing i filled at
1181 that's not a good fill
but oh well
so now watching 1126 the halt level
what the hell level moves up
there we go there's 11 sorry there's a
1252
now
pulling out the chart a little bit more
recognizing of course we had that
earlier high near 16 dollars
so this ended up being a really epic
one-minute pullback following a break of
v-wap
and i i very actively traded it i got in
i got out i got in i got out in fact
what i have done better if i just took
the trade and held you know for the
whole move sure but in this case it went
to a high of 1150 and then it dropped to
10.75 that's a 75 pullback i went from
being up a dollar a share to being up
only like 25 cents
right you know that's not that's not
great
so
what'd this do um
was that the end of the video
yeah i guess that was the end of the
video but that's fine
all right so uh i got another one
hey by the way if you guys enjoy these
kind of videos if this is helpful for
you
this is how i teach for students that
are over at warrior trading
generally the classes are
uh they're they're uh a combination of
going in and out of a slide deck where
i've got a ton of examples
all right so like this for instance so
i'm going in and out of this slide deck
where i've got all of these examples
this is a slide deck that's like a
thousand slides long
all right so down here and then we go
into the live trading archives
so one of the goals that i've had for
the way i teach
is that i try
to connect the dots so there's a clear
path in the strategy
like
sort of the description of what trading
is and what i tr what i trade so i could
have just said okay guys
entries and exits buy the first candle
to make a new high
and then take profit as it goes higher
video is over
hit the thumbs up and that would have
been a less than a minute long video
because simply that's what it is and
that's what a lot of educators do they
just give you the general generally
speaking this is what it is and then
they'll show you maybe one or two of
their trades like this is what it looks
like you buy here and you sell there
done
okay what i wanted to do because the
feedback that i got from a lot of our
students early on was that i just took a
class with so and so and the problem is
talked a lot about their trading showed
a lot of patterns and that
but there was this huge gap
between all of that and
like the actual execution
like how do i actually execute that
strategy how do i find those stocks in
real time
where do i actually press the buy button
and sell button
and so they finish those classes feeling
like i'm i'm lost and i don't want um i
don't want you to feel that way as
always my legal disclaimer is that i
can't guarantee that you're going to
find success
and trading is risky my results are not
typical but i've made a real effort to
make this educational experience
as thorough as possible
okay so let's see so we got that one um
so we've got a we've got another one
here um
this one also a little bit more active
trading
thank you guys who have hit the thumbs
up i appreciate it and of course um
you are
making a donation here so
okay
all right so let's back this one up this
is a quick video so
here we go very similar pattern that we
just saw um a moment ago right i mean
this is the same pattern that you see
right here right so we're looking at
first candle make a new high we've got
three three four green candles a couple
candles of pullback first candle to make
a new high
okay so what do we have here up on the
screen we've got four green candles two
red candles first kale to make a new
high so i'm a buyer at 16 18. this is a
cannabis stock
so just added a thou two thousand shares
there at sixteen dollars and nineteen
cents okay so that's my that's my entry
now this is already starting to resolve
the high of this candle right what's our
profit target our high is just under 17.
daily chart it is below the 200. not
great but it has a lot of room up to the
200.
so it's it's still worth trading
okay so there's 16.38
now you'll notice on this one
a little bit stacked up see how there's
a big stack of sellers at 39.
see that wall
you can see that on the level two
there's 40 there's 47 there's 50 there's
60. i took a little off the table there
into strength
so this was basically of and then
there's a 10 000 share bid that's good
to see so this is a fairly simple first
candle to make a new high
now the ad back that got a little more
aggressive okay so let's rewind this
let's do it again
so why did i buy here at 16.18 cents
it's the first candle to make a new high
what's my max loss technically the low
of that candle 1570 ish
but i'd rather set the stop tighter at
around 16
so stop is 16 which means on this trade
i'm risking 400 bucks
i'm in it just under
16 19 16 20.
so right here i'm up 200 bucks
which is okay because that's a
one-to-one risk to reward ratio
so there we're coming up to 50 so i'm up
632 on this trade
so we've got 1650 on the ask there we
break it i add 1650. why psychological
resistance i add for the break through
that level scott no i don't get out with
market orders
i always say if i always try selling the
ask that's a that's a limit order
because i'm choosing the limit price
with my hotkey if i have to hit the bid
that would be a marketable limit order
but just a marketable limit order
all right so now my average is 1624. i
added a thousand shares
and as soon as it comes up to that level
i put an order to sell half
at 16.59
all right so that's a one cent offset
below the ask
i take a little more profit scaled down
to just 375 shares
so about 800 of profit and then look at
this
the level two
let's see let's back that up one second
see that 10 000 share order right there
i saw that bid flash up and i thought
you know what i should do
i should buy
why
because if i buy here at 1654
5000 shares i can always turn around and
sell to 1648
the 10 000 share buyer so i'm really
only risking a couple cents
so i add back right there 2000 shares
average is 51 and there's 1680 on the
ask up another 400
so that trade was based almost entirely
on level two
on the chart
of course i knew we were on a breakout
maybe a little bit of a dip trade but
really it was a level two based entry
taking a little off the table there at
83.84 new order goes at 17.
now can i buy here
1695
97 for the breakthrough 17.
let's watch
if we see green on the tape now we're
seeing a little red so it's pulling back
a little bit
still holding 594 shares at 16.50 it
flashes down
which is not super pretty
so i glance over at the one minute chart
and it's okay i mean it broke out it's
not perfect
now we're back down to 1643
and looks like that was the end of the
video okay so i don't know how much
where it goes from there so i might have
lost on the last 600 shares didn't break
through 17.
all right i have
do you guys want to see one more example
or two more examples
let's see
you tell me
okay
all right so live trading itc
all right so let's watch this one
all right so this one
um
two more examples all right we'll do two
more examples okay
so
this one here
a little bit of a this is a little
tricky
okay so on this one i was using my small
account i was doing a small account
challenge
so
the pivot on this
chart is this level right here
the break of that level and then that
sends us higher up towards our previous
high a day which is around 29.
so we've got a little bit of double top
risk here
and the high that candle was just under
27.
the low
big range
if it can hold this level then you're
looking for a squeeze back up to the
high
now we're looking for a micro pullback
right in this area
and then the first candle to make a new
high through 27.
so let's move this a little bit further
forward so we're pulling back
and let's watch this
now we're coming back up a little bit
more so see that first candle just made
a new high right there
so
you could have bought that first candle
to make a new high this is a small
account challenge so i wanted to wait
for confirmation and take a quick trade
through the highs so the entry is going
to be a little closer to 27. i need more
confirmation to trust it
paying a higher price for that the
winner will probably be a little smaller
but i'm okay with that
so moving my order here up to 26.90 100
shares 27 100 shares
and right here as we're seeing green i'm
adding 300 shares at 26.78 for the break
of 27.
so looking for 85 and then 95
a break of 27
psychological resistance
okay so up there 27 we had a little bit
of a seller
10 000 shares
and it broke right through no problem
no problem
okay now if you want to be aggressive
you could add at 27.25
for the squeeze up to 27.50
new stop 26.99 20 or 27.05 set the stop
just above this level
depending on how you want to trade it
so now we're looking for 27.50
and then a squeeze up towards 28.
new orders at 27 uh 50.
adding there at 40 to anticipate the
breakthrough 50. there's 60 there's 70.
now right into that squeeze it might not
have been a bad idea to take half off
the table i'm up almost a dollar a share
there's 77
it's stalling out just a little bit
there's 80 there's 90.
can we break 28 on the break of 28 i
should probably take a little off the
table
up over a dollar a share
so see i should have taken profit there
because it hit 28 it pulled back now 50
cents 27.50
and this is where you could start to
feel like a little bit of weakness
but
i added aggressively
and looking for the squeeze through 28
and my guess is that as soon as it
breaks 28 i'll take it all off the table
right there yep
so took it all off the table for 532
dollars a profit so that was a small
account challenge
so that one's not maybe as exciting of a
trade but
a good trade and now let's look at um
one last one here
okay
so this is pixie the setup is sort of
similar to
the one we looked at earlier on waffu i
think it was which was a break over the
volume weight average price
so this hit a high of 12.50 it came up
to the v-wap over it and then it's back
below it
the high of day is around 1494. so
psychological target up around 1494.
putting my order at 1253 for 1500 shares
it's ready to go
so that was the first candle to make a
new high right there that was the spot
where i could have taken an entry
i didn't
i added a little higher uh well wait a
second
[Music]
um oh i'm focusing it looks like on a
different stock at this moment all right
so let me go a little further forward
all right let me back this up
all right so we've got a double top
around 1250
so now i've added there at 12 45 for the
break of 1250
looking for the squeeze up to 13.
there's 69
30 on the bid
77 on the ask
this one you can see has a tendency of
popping and then having these
topping tails
this is a little bit of churn here
there's more red on the time and sales
than i'd really like
so now we're on a one-minute pullback
under 13.
new orders at 13
halt levels 1335.
and there you go there's 13 20.
took some off the table at 13 18.
and there's back to 13. so you know the
question is how high does this one end
up going does it does it sort of squeeze
all the way back up to the high
the video's not too much longer so i'm
not sure how much higher it goes
high was about 13.50 there's 13 53.
you can see on this one a decent amount
of red going through the tape and that
that's something definitely to be
mindful of if you're seeing that not
sure why but you know it seems to be the
case and that's probably an issue
all right so let me back out of this
again um i want to put this back up for
those of you guys that want to keep
learning i encourage you definitely to
subscribe to the channel and hit the
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pre-trading checklist and a video on
holding losers too long
what i think i'll do here
[Music]
is maybe just
a couple minutes of q a and answer
questions that
a few of you had and then
i will uh end the broadcast and
we'll see you guys first thing tomorrow
morning for the morning show around uh 8
45
for those who are tuning in maybe just
for the first time for this video i do
the morning show
every day around uh 8 30 9 o'clock i go
live and then i give you my watch list
for the day
so what simulators are quick with orders
yeah so that's that's a great one
because i definitely encourage you to
trade the simulator before you put real
money on the line a td ameritrade
simulator isn't as fast as the type of
trading you were just seeing um really
not even not even close
so
you've got a couple different options
interactive brokers i think has a
simulator
but i think you have to have an account
there so that would cost you somebody
set up the account you can sign up for
paid simulators they have a simulator
sterling has simulators das trader has
simulators but you have to pay for the
real-time market data it's like 100 and
some some of them are 150 175 a month
so they're not super cheap which is kind
of a pain
for what it's worth
for our
pro members we do include
access to the sterling simulator which
would cost you probably about a hundred
dollars a month to subscribe to on your
own so that is included in your
membership
but you could also go subscribe on your
own if you prefer
how does your broker benefit from giving
you margin so
your broker benefits from more shares
that you trade because some brokers will
sell order flow so the more shares of
orders that are being sold the more
money they'll make
brokers that are not selling order flow
still get better negotiating ability by
the amount of volume that their their
firm is
is trading so
it's to their incentive to let you trade
more aggressively
so what exactly i look for in level two
beyond the big uh the big orders i would
say it's
so someone asked me this earlier um
about the spread uh you know one cent
spread is not necessarily a good thing
if you've got a really really tight
spread then you know that's telling me
that you've got a stock that is pretty
thickly traded might have a higher float
may not make as big of a move so a
spread of three to five cents or five to
ten is totally fine
that's not a big deal
i can look at the level two to see how
stacked up the orders are going
down on the bit or up on the ask
and i can look at the tape and the tape
is what i look at probably the most
closely because i want to see
is this moving quickly is it moving up
quickly are there a lot of orders going
through in green because that means
there's other people stepping up to the
plate and buying this thing and if
there's other people buying and it's
moving quickly that's where i want to be
buying too
so i don't use a cash account i do use a
margin account in my retirement account
i don't have leverage but it's still a
margin account so i can trade very
aggressively if i'd like to
um when trading my small account
challenge how's the um
psychology differ from when i'm trading
on my normal account so when i'm trading
on a small account i naturally feel more
pressure because i know that one mistake
could blow up the account right so that
means i'm going to be a little bit more
cautious about my entries i'm going to
trade less i'm going to focus on one
trade a day and i'm going to take as big
of a position as i can on that trade but
i'm only going to take one trade a day
and i'm going gonna focus on the best
quality setups so by taking one trade a
day if i can afford to buy a thousand
shares of a three dollar stock that
would be three thousand dollars in the
trade and it goes up 20 cents that's a
200 winner that's a that's a great trade
if it goes up 30 cents it's a 300 winner
that's 10 percent
one trade
in and out that's it and then do it
again tomorrow rinse and repeat one
trade a day rinse and repeat again and
again again until the account grows and
if i have a loss i have a loss
i'm going to because i'm focusing on the
best quality setups my losses should be
um
smaller in percentage i'll have a higher
accuracy but it's not possible i could
take a 20 or 30 cent loss and be down
300. so the account be down 10 percent
one day but by continuing that strategy
as long as i'm maintaining 75 to 80
out of 10 trades with a one-to-one ratio
i'm going to be profitable
anything over 50 is profitability in
terms of accuracy
let's see um so you know beginner trader
you could certainly set up a cash
account they're easy to set up you could
set up a cash account with td ameritrade
you could trade half the balance every
other day but there's pressure on that
also that you just feel like you can
only take one trade a day because of
margin because or because you'll run out
of buying power because buying power and
then if you don't take it then you feel
like oh man i didn't take the one trade
i should have
so
i found trading with a cash account even
more stressful than trading with a small
margin account
what do i mean sell the ask and not the
bid so
of course you can a market order is
going to sell at the bid it's just a
marketable order to sell at the bid
and it's going to be a red order that
goes through on the tape if you sell at
the ask you're putting an order at the
ask and you have to wait for someone to
buy the shares from you and when they
buy the shares the transaction will be
green on the tape
right so if you're holding a position my
opinion is that i want to scale out
slowly on the ask to get the best price
and because i'm still holding a core
position i don't want to hit the bid and
have a red order go through because that
increases
bearish sentiment and i don't want to
increase any bearish sentiment when i'm
still holding a position i want to keep
going up right so i just want to scale
out slowly on the ask
so those who have more questions what i
encourage you to do is leave them down
in the comments i can come back through
and answer them later today i'll come
back and continue answering questions as
always they're posted on the youtube
channel we always answer questions so
please feel free to leave questions i'll
be back at it first thing tomorrow
morning for the live day trading morning
show so make sure you guys tune in for
that i'm happy to try to be as clear as
possible if i know some questions coming
up i can articulate um you know very
specific things relative to this video
on entries and exits i'll try to be
extra mindful of that tomorrow
all right so thank you so much for
tuning in i hope you've enjoyed this
episode this has been a little on the
longer side but i hope it's been
beneficial i hope you feel like you've
learned a lot i want to remind you as
always that trading is
risky most beginner traders lose money
and my results are not typical so i
encourage you to take it slow and trade
in a simulator before you put real money
on the line do yourself that favor i
didn't do it and i wish i had so really
take it slow train a simulator before
you put real money on the line don't try
to blindly follow me or anyone else
all right thank you for tuning in thank
you for hitting the thumbs up we'll be
doing some donations so i'm excited
about that and i'll see you first thing
tomorrow morning for the morning show
you