The Ultimate Day Trading Guide (Full Training Chapters 1 - 10)

0:00[Music]

0:01in today's episode I'm going to teach

0:03you how to start day trading and I'm

0:04going to share with you a trading

0:06strategy that you can Implement in your

0:08own trading starting today this is a

0:10strategy that I think is one of the best

0:12for beginner Traders and the reason is

0:14because the rules of this strategy that

0:17dictates the type of stocks to trade

0:19where to buy where to sell and how to

0:21manage your risk these rules are simple

0:24and easy to understand so here's my goal

0:26for you today through this class you

0:28will learn all the basics of how to

0:30start trading how to perform technical

0:32analysis how to find strong stocks to

0:34trade and at the end of the class you

0:37will walk away with a strategy you can

0:39Implement in your own trading starting

0:41today I ask you one thing to practice

0:44this new strategy you're learning in a

0:46simulated environment a stock market

0:48simulator that way you can test yourself

0:50and see if you can actually trade it

0:52profitably before putting real money on

0:55the line and don't worry I will show you

0:57not only how to use a stock market

0:59simulator I will give you a couple

1:01suggestions of ones that you can use

1:02some that are free others that you pay

1:04for depending on what works best for you

1:06so let's start this class by jumping

1:08into the slide deck I've got a

1:10whiteboard we've got a slide deck and

1:12we've got a lot to cover and I want to

1:14begin with a little quiz to set the

1:16stage and kind of see where you're at at

1:18the beginning of this class we will do

1:20another quiz at the end of the class so

1:22you can see how much you've learned here

1:24today so here's the question should I

1:26buy this stock right now now you may

1:29look at this and already feel a little

1:31over your head and don't worry I'll fill

1:32in all the blanks of what's going on in

1:34this chart but let's just see where

1:36you're at so we have a stock right now

1:38this clearly moved up quite a bit we've

1:40got some nice big green candlesticks

1:42then it pulled back it rallied up again

1:44and now it's pulled back again so what

1:46do you think it's going to do The

1:48Logical answer probably is that it's

1:50going to Rally up one more time oh boy

1:53you're dead wrong no that's not what's

1:55going to happen here hey look that's

1:57okay that's why you're in class so this

2:00chart actually gave me a signal that

2:03told me it was not going to go higher

2:05that signal was very subtle but it was

2:08clear as day on the chart for me and it

2:10was this indicator right here Crossing

2:13into the negative when that blue line

2:14crossed right there that told me this

2:17stock most likely was not going to move

2:20higher and in fact it did not it sold

2:23off so something that I find really

2:25interesting is that there was a clear

2:28sell signal there you didn't see it yet

2:31because your eye probably hasn't been

2:34trained to to pick up on those subtle

2:36cues this is the language of the

2:39financial Market is the language of

2:41technical analysis and as you immerse

2:43yourself in a community like here on

2:45YouTube of people that are speaking this

2:47language you will learn it it takes time

2:50just like reading any other language or

2:51learning another language but to me it's

2:53fascinating and the reward for learning

2:55it is tremendous if you can really get

2:57it dialed in because something you're

2:58going to learn is that the trade traders

3:00who make the most money are the traders

3:01who are able to nearly see into the

3:04future they can predict what's going to

3:06happen next on the chart so let's look

3:08at this well now I I bet you know the

3:11answer probably the first thing you

3:12checked was right down here and you see

3:14that this is negative good job all right

3:17so if you answered this is going to fail

3:19you were correct let's look at another

3:21example so now you're probably saying oh

3:23this is going to work look the macd is

3:24open wow wrong again okay all right no

3:28look it's okay it's okay this we all

3:30earned somewhere so so here I tricked

3:32you and I did this because I want you to

3:34know that there's another indicator that

3:36we have to check and it's the volume

3:38right here so this had a different

3:40warning signal the warning signal was

3:43that there was high volume selling on

3:45these red candles and that means in

3:47total there were more people that were

3:49selling the stock than were buying the

3:51stock these are two of the of the

3:53indicators that I look at before I take

3:55any trade and if just one of them say no

3:57I don't take the trade they both have to

4:00say yes for me to take a trade so the

4:02volume said no even though the macd

4:05which is an indicator you'll learn more

4:06about through this class said yes so the

4:08answer was no one no means no now here's

4:12another example this one I think you can

4:14already guess the answer the macd is

4:16coming down it's still positive but it's

4:18coming down but the volume is going to

4:20tell us go and that's correct now let's

4:22look at this finally we've got something

4:24to work with or do we is there is this

4:26another trick well let's see let's look

4:29we've got high volume and the volume is

4:30on green candles the macd is positive is

4:33there anything telling me

4:35no I don't think so this is a good entry

4:38I should buy right here and therefore

4:41look at that squeeze right we get that

4:42nice squeeze these indicators were

4:44giving us positive signals they weren't

4:46saying no we had light volume selling

4:48the macd was positive and the entry is

4:51right here as that first candle makes a

4:54new High versus the high of the last one

4:56that's the setup I'm going to teach you

4:57as we go through this class now what

5:00about this uh this chart here so this

5:03one uh to me is a pretty clear no the

5:07issue is the mati is flat and there's a

5:09hide candle so this is not a good setup

5:11we wouldn't take that trade one of the

5:13reasons a lot of beginner Traders lose

5:14money is because number one they don't

5:16have a strategy they're following so

5:18they're just shooting from the hip and

5:19number two they're not trading the right

5:21stock so they get themselves sidetracked

5:23trading stocks that don't have enough

5:24volume they don't have enough volatility

5:26and they just get chopped up trading

5:27stocks in the wrong places let's look at

5:30this one here should I buy here well

5:32macd is positive I don't see any warning

5:34on the volume uh bars here so the answer

5:37would be yes this is a trade that I

5:39should take every trade carries risk and

5:41what we're trying to do is we're trying

5:42to manage our risk where we can take a

5:44position where the amount that we're

5:46risking is as little as possible the

5:48amount we can make is more than what

5:50we're risking and where we feel where

5:53we've got an 80% chance of this working

5:56even the perfect setup occasionally will

5:59not work

6:00so I'm going to tell you right now

6:01there's no such thing as a strategy that

6:03works 100% of the time but if you have a

6:05strategy that over the course of 100

6:06trades is giving you profit 60% of the

6:09time 70% of the time that can be enough

6:12to be a very profitable Trader as long

6:16as you learn to cut your losses quickly

6:19I'll teach you how to do that today all

6:21right so now you've looked at a couple

6:22examples of a few different chart

6:23patterns this is also going to be a yes

6:25we've got a nice volume profile macd is

6:28open so everything about this looks good

6:30all right so what are the topics that

6:31we're going to cover today we've got 10

6:33big topics we're going to cover and this

6:35I sort of picture this as helping lay

6:39the foundation so because I want to keep

6:42this class concise and make sure I give

6:44you as much value as I can for your time

6:47I'm not going to go into a huge amount

6:49of depth on each one of these topics but

6:51they're pillars of the foundation this

6:54is your starting point and as you learn

6:56all of these Concepts what we can do in

6:59additional classes that you can watch

7:00here on YouTube and or you could uh

7:02watch it where you're trading is we will

7:04fill in more depth around these so

7:07you're going to learn that this each one

7:09of these topics can be expanded upon

7:12with a lot more depth but of course

7:14rather than starting with a tremendous

7:16amount of depth and overwhelming you I

7:18want to start with laying a solid

7:20foundation of making sure you understand

7:22the basic concepts necessary to be a

7:25Trader okay so let's go ahead and you

7:28know what I I want want to start by just

7:31saying one thing there's a lot of people

7:33out there on YouTube and on social media

7:35who talk a big game and I want to thank

7:37you for tuning in to this episode right

7:39here but you may be wondering what does

7:41this guy know about trading in a small

7:44account what does this guy know about

7:45growing a small account and so I'm going

7:47to show you in

7:482017 I funded an account with

7:52$583 15 with the goal of seeing how

7:55quickly I could grow that account to

7:57100,000 bucks at the time I thought it

8:00might take me a full year in fact I did

8:02it in just 45 days and so since I

8:05achieved the goal so quickly it was only

8:07March I decided to just keep trading in

8:09that account by December I had grown the

8:11account to

8:13$335,000 the next year I made almost

8:16half a million dollars the year after

8:17that I crossed over a million dollars

8:19and during the pandemic the stock market

8:22boomed and I ended up crossing over $10

8:25million in fully verified trading

8:28profits now I'm one of the few Traders

8:30out there that's actually had all of my

8:32trading profits subjected to an

8:35independent third-party accountants

8:37audit so I'll show you the audit results

8:39in just a second but for those of you

8:41guys who are considering trading in a

8:42small account I want you to know that

8:45I've put my money where my mouth is I

8:47actually traded the strategy that I'm

8:49going to share with you with a small

8:51account and this is the small account

8:52challenge I'm best known for but I've

8:54done more small account challenges than

8:56I can count I just set up an account

8:58with 500 bucks or a th000 bucks I'll

9:00grow it spend a month doing it you know

9:03it's a fun Challenge and then I'll do it

9:04again 6 months later whatever the case

9:06is so you'll notice if you look at the

9:08calendar that each one of these days I

9:09only took two trades two trades two

9:12trades two trades two trades I keep it

9:14focused and this was just the first uh

9:16the first month the first month of uh

9:18first maybe first 20 days so these are

9:21the audit results right here uh this

9:23verifies that I started with $583 15 and

9:26by the end of December in 2023 my

9:29account was at

9:3210,719 th000 now 2024 it's been a

9:35fantastic year the account is currently

9:37sitting at just over $ 12.3 million of

9:41verified trading profits the 2024 uh

9:44trading year will be audited in early

9:46January of 2025 so if you want to learn

9:50how to trade what I'm telling you is

9:52that you've come to the right place not

9:54only do I know how to day trade I know

9:56specifically how to grow a really small

9:59account so as we begin this class I'm

10:01going to give you some PDFs that you

10:03guys can download you can print them out

10:05you can put them on your desk you can

10:06use them in your own trading and you can

10:08follow along through this class with

10:09these PDFs so I will have a link it'll

10:12be pinned at the top of the comments and

10:13Linked In the description where you can

10:15download my small account worksheet so

10:18it's my small account strategy worksheet

10:20and where you can download my trading

10:22plan this is the plan that I want you to

10:24implement in your own trading but in a

10:27simulated environment to prove that you

10:29you have what it takes to trade my

10:31strategy here's something I'm going to

10:33tell you I will share my strategy with

10:35you I have no problem doing that I'll

10:36put it all on the table but success will

10:40only come from traders who have the

10:42discipline to follow the rules of the

10:45strategy so that's where the ball is in

10:48your court all right so this is very

10:50important now I'll teach you some tips

10:51and tricks to being a more disciplined

10:53Trader all right so hopefully you guys

10:55have already downloaded these PDFs these

10:57worksheets there'll be a selection in uh

10:59the download so I'm going to give a

11:01bunch of them to you for free and you

11:03can utilize them and Implement them in

11:05your own trading and follow along

11:06through this class with those

11:11PDFs all right so topic number one your

11:14choice of platform there are literally

11:16dozens and dozens of different trading

11:18platforms out there and it can make it a

11:20little overwhelming for a beginner

11:21Trader to know which one to use now one

11:24of the things that I said early on is

11:26that I want you to trade in a simulator

11:28before you put real money on the line so

11:31that means first you need to figure out

11:33which simulator you're going to use now

11:36if you set that as sort of your first

11:37goal what is ultimately going to happen

11:40is you're going to eliminate another a

11:42number of these Brokers because they

11:43don't even offer simulated trading so

11:46for instance Robin Hood they don't offer

11:48a simulator so boom they're off the list

11:51now to me you might think it's crazy why

11:54don't these Brokers offer a stock market

11:57simulator so their clients can practice

11:59practice the market and of course if

12:00they practice they're probably more

12:02likely to be successful long term and

12:04therefore be successful clients who are

12:07then making the broker a lot of money

12:10the answer lies in asking the question

12:13of how do the Brokers actually make

12:15money in the first place and the way

12:17commission-free Brokers make money is by

12:20selling your order flow to institutional

12:23trading firms so the institutional

12:25trading firm actually buys all of the

12:28order flow from that broker and what

12:31they do is they they essentially scalp

12:34every trade that the clients place for a

12:37fraction of a penny just a fraction of a

12:39penny and so what happens is you're able

12:42to get free commissions because you're

12:44losing a fraction of a penny to that

12:46institutional trading firm on every

12:47single trade that you take and the

12:50broker they get a cut of that and this

12:52is to the tune of billions of dollars

12:56per year but here's the problem if

12:58you're trading in a simulator there's no

13:00order flow to sell so they make no money

13:05if you're trading in the simulator so

13:06when you're in the simulator you're

13:07using real-time Market data which costs

13:09them money you're using their platform

13:11which has server loads and everything

13:13else you might even be emailing customer

13:15support they're making no money off of

13:17you so a lot of Brokers just simply

13:19don't offer simulated trading but you

13:22know what's even more annoying is the

13:24Brokers that do offer simulated trading

13:27a lot of them don't include include the

13:29same features that are offered when you

13:31trade with real money man that is

13:33annoying so let's talk about what to

13:35look for in a broker high level if

13:38you're going to trade the strategy that

13:39I trade every single day which is a

13:41momentum trading strategy meaning I'm

13:43looking for stocks moving higher I like

13:45to buy those pullbacks and sell as they

13:48squeeze up to the next level what I need

13:50is a reliable trading platform that is

13:52fast and I think it's great if it's

13:55popular among Big Money traders because

13:58I like to see that other Traders out

14:00there six figure seven figure maybe even

14:02eight figure Traders are showing that

14:04this is a platform that they like and

14:06that they're comfortable using to make

14:09good money so if you look at an obscure

14:11platform and you don't know of anyone

14:13else that's using it that by itself

14:15itself kind of makes me question whether

14:16or not that's the right platform to use

14:18so a trading platform that's reliable

14:20and is popular among Big Money traders

14:22number one number two you need a

14:24platform that has fast order execution

14:27which is the time between where you

14:29press the buy button and when you get

14:31your shares filled now in this day and

14:33age with highspeed internet it should be

14:37almost instantaneous and it is for a

14:40number of Brokers but there are other

14:42Brokers that for various reasons for the

14:44way they've set up their platform and

14:46this and that their order routing is

14:49slower and unfortunately that means

14:51you'll be slower to buy and you'll be

14:53slower to sell and that's not an

14:55advantage when you're trading so we've

14:57got to make sure you're choosing a

14:58broker that has fast order execution

15:01you're also going to need full level two

15:03Market data you may not know what that

15:04is yet but you're going to learn about

15:06that in today's class you're also going

15:08to need a broker that offers hot keys

15:10for Rapid entries and exits hot keys are

15:13when with the Press of a button shift

15:15one shift two you can buy 100 shares or

15:18buy 200 shares this is an old keyboard

15:20that I've used and you can see it's

15:21gotten used quite a bit and the way I

15:23trade is by pressing shift 1 shift two

15:26and then if I want to get out of a trade

15:27I press contrl z contr x contr C I've

15:30pressed that one a lot contrl C is to

15:32sell a quarter of my position so these

15:35hot keys are incredibly important

15:37because they allow you to move into the

15:39market just like that you don't have to

15:42point and click you don't have to type

15:44in the share amount or the numbers or

15:46the price you just press a button and

15:48your order is in or it's out easy and

15:51you want it to be easy number five you

15:54really want a platform that allows Sim

15:55trading so you can practice before going

15:58live when you're learning how to drive

16:00you want to learn how to drive on the

16:01car that you're going to take your

16:02driving test on if you can right now if

16:05you take your test on a car that's

16:07totally different from what you're

16:08training on the day you're taking the

16:09test and you've got a parallel park

16:11imagine you learn how to tra or you

16:13learn how to drive on a tiny little car

16:15and then you take your driver's test in

16:17a full length SUV parallel parking it's

16:20completely different so why go through

16:22that transition with trading that's

16:24unnecessary learn to trade in the same

16:27software that you're going to use

16:29with real money that way it'll translate

16:32right that's the right way to approach

16:33this so that means it's really important

16:35that we choose a broker that does allow

16:37simulated trading a stock market

16:39simulator okay so I'm going to narrow it

16:41down to what I think right now are the

16:43three best stock market simulators

16:46thinker swim Weeble and Warrior trading

16:48Warrior trading does have a simulator

16:50now you're going to think I'm biased and

16:52I I am a little bit on this but for my

16:54strategy I really think it's a great

16:55platform but thinker swim and Weeble are

16:57pretty good as well but here's the thing

17:00that I find really interesting about

17:03both thinker swim and

17:05Weeble at so so right now the Market

17:08opens at 4:00 a.m. and it closes at 8:00

17:11p.m. that's the full trading day but at

17:13think or Swim their simulator doesn't

17:15work before 9:30 a.m. it only works

17:18starting at 9:30 and that's a problem

17:20because there's a lot of stocks that are

17:22moving early in the morning 7: a.m. 8:

17:24a.m. 9:00 a.m. you can't trade them in

17:27their simulator why I have no idea and

17:30then Weeble on the other hand their

17:32simulator doesn't allow you to use hot

17:35Keys you can use hotkeys with real money

17:37but not in the simulator why I have no

17:40idea and what makes matters worse is

17:42that both platforms and I've tested them

17:45both side by side when I press the buy

17:48button in Weeble I have to wait one two

17:51I'm just waiting and waiting and waiting

17:54until finally the order fills I did the

17:57same thing at thinker swim I I open the

17:59platform I press the buy button and

18:01waiting and waiting until it finally

18:04fills so if you want to use either

18:07thinker swim or Weeble there is a

18:10workaround both of these platforms are

18:13commission free which means if you fund

18:16an account even just with a couple

18:18hundred dollars you could trade with one

18:21share you're trading low price stocks

18:23that are $2 $3 a share so you could take

18:25tons of Trades one share per trade and

18:28ENT ually you are simulated you're doing

18:31simulated trading you're doing it with

18:32real money but you're only doing it with

18:34one share now the broker likes that cuz

18:36now they get to sell your order flow but

18:38they're not going to make much money on

18:39you when you're only trading with one

18:40share but they unlock the instant

18:43execution both Weeble and thinker swim

18:45your execution is a lot faster when

18:47you're with real money you don't have to

18:48sit and wait it's it's like night and

18:50day their simulator is slow and then

18:52real money is fast so thinker swim and

18:55Weeble you can use them with to you can

18:58Sim do simulate trading there quote but

19:01it's really you have to fund an account

19:03with a couple hundred dollar and trade

19:05with one share if you do that with

19:07thinker swim then you'll be able to

19:09trade extended hours so let's look at

19:11these seven kind of bullet points of of

19:13my comparison and I'll hide my video

19:15here for you for a second so uh so the

19:18first question is is the platform better

19:20with real money and the qu the answer is

19:22yes it is with thinker swim yes it is

19:24with Weeble and Warrior trading we're

19:26not a broker dealer so we don't have a

19:29real money platform which so by the way

19:32we don't have payment for orderflow the

19:34way the big Brokers do because we don't

19:36we're not a broker dealer so the only

19:38way that we make money on the simulator

19:40is by selling it as a software selling

19:42it as a service so we do have our

19:44simulator that we sell but it's not free

19:46because we don't make money on the

19:47payment for orderflow the other Brokers

19:49do so just as a heads up on that but

19:51thinker swim um is better with real

19:53money and so is Weeble extended hours no

19:56with the simulator on thinker Swift but

19:59yes with with the real money account and

20:01Weeble does offer the simulator uh in in

20:06extended hours but it's still better to

20:08use real money there in my opinion all

20:10three offer level two

20:12data uh only Weeble and Warrior trading

20:16offer Advanced hotkeys and again with

20:19Weeble you only get those Advanced

20:21hotkeys asteris when you fund a real

20:22money account now thinker swim does not

20:25offer Advanced hot Keys even with real

20:27money halt lels you're going to learn

20:29about HAL level halt levels today and

20:31thinker swim does not display them but

20:33Weeble does with real money and the

20:36warrior trading Sim does as well

20:37resumption quotes you won't get those

20:39with thinker swim but you can with

20:40Weeble and you can with Warrior trading

20:42trading metrics you don't get them

20:44either at thinker swim or Weeble but

20:47Warrior trading does have them now in

20:49terms of price The Thinker swim uh

20:51simulator is totally free and if you

20:53fund it with real money it's also free

20:56you just have to put you know a couple

20:57hundred dollars in so you could take one

20:59trade uh one share of every trade you

21:01take Weeble cost $10 a month and that's

21:04a sort of a discounted rate but it is

21:07$10 a month the warrior trading Sim is

21:10uh free for 90 days for warrior Pro

21:12members which we think is enough time

21:13for you to use it but then after that

21:15it's $100 a month so we have to cover

21:17our Market data costs our server costs

21:19and all of that stuff because we don't

21:21have the commissions and pay for order

21:22flow that would make up for it uh

21:24however if you wanted metrics you'd have

21:26to pay $50 a month uh at with thinker

21:29swim or Weeble and you would be using

21:31the platform right over here that I use

21:33which is Trader viiew so this platform

21:35is $50 a month however at the warrior

21:38trading Sim we integrate that type of

21:41data and Reporting inside our platform

21:44so it's included so at the end of the

21:46day I think your best bet if you're on a

21:48budget is going to be Weeble right down

21:50here and you really need your metrics

21:52and I'll explain why as we go through

21:53this class but this is going to be your

21:55best bet so you're about $60 a month the

21:57warrior Trading s it's going to be $100

21:59a month but free for the first 90 days

22:01so it's up to you if you trade in it

22:03longer than that but I do want you to

22:05make the commitment to sim trade only

22:09and with the asterisk that if you trade

22:11with one share of real money I would

22:13consider that the equivalent of sim

22:15trading and it would be acceptable so I

22:17want you to do simulated trading only

22:20until you've proven that you can be a

22:22profitable Trader now as we go through

22:24this course I'm going to show you

22:26examples of students at Warrior Trading

22:29who have followed the trading plan that

22:30I'm going to share with you then sent me

22:32their p&l of their calendar showing sort

22:35of like how they performed in those that

22:37first month of following the plan and I

22:39think that that'll be inspiring for you

22:41to see so I really want to encourage you

22:43not to put real money on the line until

22:45you've proven you can make money in the

22:50Sim how much money do I need to start

22:53with so most retail Brokers at this

22:56point do not have minimum deposit

22:58requirements could fund an account Robin

23:00Hood or Weeble with a 100 bucks a 10

23:02bucks doesn't matter but here's the

23:04thing if you're trying to grow an

23:06account you have to be realistic with

23:08the amount of money you're starting with

23:11so I'm going to what I'm going to do is

23:12kind of talk about profit goals and how

23:15that relates to how much money I would

23:18start trading with in my experience in a

23:21cash only

23:23account I can realistically grow the

23:25account by 10% on a on a really good day

23:29so that means if I had an account with

23:30100 bucks in it I could grow the account

23:32by $10 on a really good day although

23:35most days would probably be in the range

23:37of $3 to5 now some of you will say Ross

23:40$3 to5 obviously not enough to cover my

23:43cost of living and I get it but one

23:45thing that I'll tell you is that one of

23:46my students his name is Danny I recently

23:49did an interview with him and that

23:50interview is published here on YouTube

23:52he traded um for about 6 months with a

23:55daily goal of $10 but what he knew was

23:58is that if he could consistently make

24:00$10 a day with small share size that the

24:04only difference between $10 a day and

24:05$20 a day was increasing his share size

24:08but he wouldn't do it until he first had

24:10proven that he had a track record of

24:12being consistent of being able to trade

24:14profitably so he was able to scale his

24:16trading from what was initially a daily

24:18goal of $10 a day he's scaled up and

24:21he's now at about

24:22$350,000 on the year that's incredible

24:25and it started with a $10 daily goal so

24:27I don't want you to be too um you know

24:30dismissive of oh $3 to5 a day is not

24:33good because if if that's your proof of

24:36concept and it's part of the plan that

24:38you're following then I think that

24:39that's fantastic now realistically

24:42starting with a $100 account is is a

24:45very small amount of money while you

24:47could do it you would have to be content

24:48with making very small progress so

24:51naturally if I start with you know

24:52$1,000 or 10,000 my daily goals would

24:55scale up but I also would caution

24:57against saying oh well I'll just start

24:59with

24:59$100,000 because that's too much money

25:01to start with you start with a lot of

25:03money like that and what's going to

25:05happen is you're not going to believe

25:07the emotional response you're going to

25:09have to having both big Winners but

25:11certainly big losers and that emotional

25:14response can sort of send you into a

25:16spiral where if you take a big loss next

25:18thing you know you're feeling anger

25:21frustration disappointment and that

25:23feeling is so strong that you seek to

25:26get rid of it as quickly as possible and

25:28so the action that you take to to make

25:31that emotion go away is to take another

25:33trade because your your mind is thinking

25:36if I take another trade and I can make

25:37back what I just lost I don't have to

25:39feel terrible anymore unfortunately as a

25:41beginner Trader when you get into that

25:43place of being desperate you go into a

25:45downward spiral so it's always better to

25:47start with a small account and build it

25:49up slowly as your track record supports

25:53so if you start with $1,000 and you

25:54trade in that account for a few months

25:56and then you're doing well it's like

25:58okay okay I'm going to add a couple more

25:59,000 I'm going to go up to $3,000 I'm

26:01going to go up to$ 5,000 and of course

26:03you're making a little bit of profit

26:04along the way and then you make your way

26:05up to$ 10,000 to 15,000 and we'll talk

26:08about different account types uh that

26:10you can use for this challenge so I

26:12would start with a small account I think

26:14that that's the best way even if you

26:15have a lot of money I think it's better

26:16to start with a small account okay so

26:19the account types include cash uh only

26:22accounts which are probably going to be

26:24the most popular accounts for most of

26:26you guys tuning in uh to this episode

26:28when you open a brokerage account there

26:30are two types that you can open it's a

26:32cash account or a margin account a cash

26:35account will allow you to trade with the

26:37cash that you've deposited but once

26:40you've traded all the available cash you

26:42have to wait until the trade settle

26:45before taking additional trades and

26:47trades don't settle until overnight so

26:50that means if you deposit into your

26:52account let's just say for the sake of

26:54argument you have $100 in there and then

26:57you take you you trade a $1 stock um so

27:00it's a $1 stock and you buy one share of

27:03it so you could do that times a 100 you

27:05could take a 100 trades in one day

27:07you've used up your $100 and so now

27:10you've got $ Z available that's left but

27:12you had 100 trades And1 $100 worth of

27:15trading the next day that'll reset to

27:18100 and it'll be plus or minus your

27:20profit or loss so the nice thing about a

27:23cash account is that you can day trade

27:25in it but you will run out of of of cash

27:29eventually so if you're going to try to

27:31day trade and make a lot of money and

27:33use big positions you probably wouldn't

27:35want to use a cash account but as a

27:38beginner getting started I think a cash

27:39account is terrific now the big thing

27:41that changed this was within the last

27:44year um we had a change in the

27:46settlement time to being overnight it

27:49used to be three days so if you traded

27:51on Monday you couldn't trade again until

27:53um Thursday and then they changed it to

27:55two days so it was Wednesday and now

27:57it's just changed to one day so it's

27:59Tuesday so now it's fantastic because

28:01you could trade every single day but

28:03when you run out of cash you're locked

28:04up until the next day now the margin

28:07account is is what I use at this point

28:10and most traders who have accounts that

28:12are larger will use margin accounts so a

28:15margin account uh allows unlimited

28:17trading you don't run out of cash you

28:19could just keep trading and trading and

28:20Tra you could trade a million times in

28:21one day if you want to but there's a

28:23rule that you have to have at least

28:26$25,000 in the account that has to be

28:28your minimum cash balance now it can be

28:30a combination of stock Holdings and cash

28:32but you have to have at least 25,000 in

28:35your account now this is only for us

28:37broker dealers International Brokers do

28:40not enforce this minimum balance

28:42requirement so it's only for us Brokers

28:45and US residents so if a US resident

28:49opens an international broker account

28:52which would be some do it's kind of a

28:54workaround but if let's say you had

28:57$110,000 say I'm going to go open an

28:59account with a broker in the Bahamas and

29:02there's a bunch of these offshore

29:03Brokers that cater to us Traders you

29:05could actually have margin uh even

29:07though you're under

29:0925,000 so some people will do that and

29:12and that's fine it's a it's kind of a

29:13risk reward ratio decision for you does

29:16this make sense for me to open this

29:18account do I need that additional

29:21ability to buy and trade more frequently

29:23and I think you do if your metrics

29:25support it but if you're a beginner

29:27that's not the right place to start at

29:29this point thanks to the T1 settlement

29:31time so at this point it makes more

29:33sense just to fund an account with a US

29:35broker if you're us resident and just

29:38focus on a cash account and growing it

29:40slowly through proof of concept and just

29:42slowly grow that account that's the

29:43right way to set to sort of lay a solid

29:46foundation if you're an international

29:48Trader opening an international account

29:50yes you would be able to trade more

29:52frequently but that's not necessarily a

29:53good thing I think it's good to take it

29:55slow okay so the minimum amount of money

29:58you need to start an account to open an

30:00account I mean it the fact is there's

30:03really no minimum it's just the most

30:05that you can kind of put in and feel

30:07comfortable with because you know

30:08trading is of course risky and making

30:11sure that you do have enough buying

30:12power where you could trade every day

30:15all right so now um number two so the

30:18real goal here is focusing on

30:20consistency prove that you can be

30:22consistently profitable in a simulator

30:24again whether it's trade uh thinker swim

30:26or uh Weeble and you're using just one

30:28share or you're using the warrior

30:30trading simulator that's fine as well

30:32but you want to focus on this being your

30:34proof of concept period it's not about

30:37making a lot of money you don't need a

30:38lot of money in the account just build

30:40your track record that's what's

30:42important right now so this is how I

30:44analyze performance for uh for Traders

30:47for certainly a student Warrior trading

30:49and and certainly for myself I use this

30:51software Trader view where I can

30:53actually import all of my trades now if

30:55you're using the warrior trading Sim all

30:57of your we aggregate your data for you

30:58so you can see similar reports but if

31:00you were using Weeble or thinker swim

31:02then you would want to import your

31:03trades um into a platform like this or

31:06in fact Trader viiew itself now I'll

31:08just say I don't have by the way any

31:09affiliate relationship with Weeble

31:11thinker swim or Trader viiew so if you

31:12use them use them if you want if you

31:14don't want to it doesn't make any

31:15difference for me I I don't need the

31:17money to have an affiliate relationship

31:18with these platforms so I just am

31:20sharing with you what I think really are

31:23pretty much the best uh tools out there

31:25and Brokers that are available right now

31:27for the Strat that I'm trading now I

31:29will also say that uh the broker that I

31:31use on a day-to-day basis is Light Speed

31:34trading which is a broker in New York

31:36and it checks all of the boxes with the

31:39exception that they charge Commission on

31:42every trade you take they're not a

31:44commission-free broker and so for that

31:46reason it's not appealing for beginner

31:49traders who are wanting to take one

31:51trade a day or you know one trade with

31:53one share because you're going to you're

31:54going to lose money in commission so

31:56it's it doesn't really make sense for

31:58beginners but it can make sense after

32:01you've traded for 6 months or a year

32:02with a commission free broker and you

32:04want to unlock some of the features that

32:07come with a a bit of a more professional

32:10platform like light speed okay so when

32:13it comes to analyzing metrics what I

32:16focus on for anyone that's going through

32:19the trading plan that you're going to be

32:20following is first and foremost what is

32:23your net profit now the reason we look

32:26at net profit even with one sh I want to

32:28see that you're green so if you're not

32:31green then that by itself tells me all

32:33right you got to keep studying you got

32:34to keep getting experience so we look at

32:36your net profit what's your profit right

32:38up here the next thing I look at is the

32:40relationship of your average winners and

32:43your average losers you can see that

32:45mine are about even they're within like

32:47$19 $18 of each other so $1,300 average

32:51winners $1,300 average losers and that

32:54means that I have to be right 50% of the

32:57time in in order to break even so now I

33:00want to check to see what your accuracy

33:01is and right here my accuracy is showing

33:03at 66% which is why I'm up $12.3 million

33:07If I Only Had 50% accuracy this wouldn't

33:09be there if I had 75% accuracy or 80%

33:12accuracy that number would probably be

33:14bigger but nonetheless it is what it is

33:16so I look at these metrics because these

33:19tell a story they paint a picture of

33:21what you're trading so first we look at

33:23the total profit your average winners

33:26your average losers and your accuracy

33:28that's the first tier the next level

33:31down is getting dialed in at what's the

33:33price of the stocks that you're trading

33:36what is the time of day that you're

33:37trading and are there some patterns or

33:40hints or clues that we can gleam that

33:42would tell us what we could do to to be

33:45even better so let me show you an

33:47example of a month that I didn't trade

33:48very well so this was um March let's see

33:52so we'll do the the whole month of March

33:54here I'm going to go apply so this was a

33:56month where only only made 10,000 bucks

33:58this was not a great month for me you

34:00can see my average winners were $10,000

34:03sorry um my average winers were $700 my

34:05average losers were $11,000 my accuracy

34:07was

34:0861% and when I looked at um price and

34:12volume I noticed that I was losing money

34:14on stocks I was trading above $10 now

34:17that's not typically the case for me but

34:19it was the case during this period so

34:22what do you think I did in April in

34:25April I said all right based on this

34:26data right here I need to to make a

34:28change I need to change the price that

34:30I'm focusing on and so going into the

34:31month of April I told myself focus on

34:34stocks between 2 and 10 that's where

34:36you've been doing better so in April I

34:38made

34:39$36,000 it was a better month and look

34:42at the profitability it's all on stocks

34:44between 2 and 10 I traded a couple of

34:46stocks that were more expensive but not

34:48much I really stayed focused on the

34:49price range where I knew I was doing

34:52better so if you're a beginner Trader

34:54and you maybe have been trading for some

34:56time and you don't know your own metrics

35:00that to me is a huge mistake you've got

35:01to learn your metrics because there will

35:03be hints and clues in those metrics at

35:05what you're doing that works and what

35:07doesn't work now let me tell you a story

35:09when I was learning how to trade I went

35:10through this long process where I didn't

35:12have someone like me that I was able to

35:14learn from I was in Vermont I'm

35:16self-taught so I had to figure out

35:18everything the hard way now this was

35:20also in a period of time where the

35:22accessibility for Education like this

35:24just wasn't the same as what it is today

35:26so it is what it is but that was the

35:28situation that I was in so I spent my

35:30first year learning how to trade

35:32experiencing a little bit of beginner's

35:33luck and maybe it was the market maybe I

35:35don't know what it was but I made some

35:37money in my first year it was remember

35:38it was 25,000 or 30,000 it was right in

35:41that area which was not bad and then

35:43what happened in the second year was I

35:45lost that amount of money I went down

35:47$30,000 so I had made 2530 and then I

35:50gave it right back in the second year

35:52and in August of that second year I had

35:56this this this terrible experience where

36:00I on the first week of the new month I

36:03lost $5,000 and that put my account

36:06where I couldn't take any more trades

36:08unless I added more money into it and I

36:10was devastated this was a time in my

36:12life where I was broke I didn't have

36:14another job I I needed to make money

36:16from Trading to pay my bills and so I

36:19was so devastated I was so frustrated I

36:22I couldn't trade and I I remember at

36:24first I just went outside and I was

36:26chopping wood I had this wood shed had a

36:28wood stove in my house and I was just

36:30like so frustrated but I got some energy

36:32out and then I came back inside and I

36:36said there has to be something here if

36:38you've seen that movie Apollo 13 there's

36:41a scene when they realize down at

36:44Command Center okay we got to figure out

36:46how we're going to save these astronauts

36:48and they said this is what we have we've

36:49got to just figure it out and they start

36:51trying to figure out you know how to get

36:53the oxygen working again quiet down

36:55let's work the problem people let's not

36:58make things worse by guessing and I kind

37:00of did something similar where I went up

37:03into my little area where I was trading

37:06my little desk and I looked at all my

37:08trading records and I printed them out

37:10and one thing that I had been really

37:11good about was I wasn't using software

37:13like this back then I was using an

37:15actual um Excel sheet so in Excel I was

37:18tracking each trade I was taking but I

37:20did that and so I printed out and then I

37:22started on the computer sorting the data

37:24by biggest winners biggest losers and I

37:26was trying to find a Rel relationship

37:28you know something like a hint of what

37:30might help me get out of this funk and

37:32get back into the right direction and I

37:35actually discovered that all of my big

37:37Winners had a common denominator they

37:40were on a very specific type of stock

37:43and these losers I was taking these

37:44outlier losses the these were just

37:47unnecessary trades that were outside

37:50that kind of core of what was really

37:52working for me and I realized well you

37:54know actually over the last 18 months if

37:57if I had eliminated all of these

37:59outliers I'd actually would have been

38:00doing really well so then I thought well

38:03what if I can do that starting today and

38:05moving forward so I then began the

38:07process of selling stuff in my barn to

38:10fund my account so I could trade in it

38:12again and then when I had the account

38:15back up and running I was so disciplined

38:17that I would only trade these setups and

38:20ultimately the setup that I'm going to

38:22share with you today is that setup that

38:25was my turning point it was that big

38:27that even now all these years later I

38:29still trade it so been collecting my

38:33metrics I wouldn't have been able to

38:35figure out what was actually working for

38:38me I just would have been overwhelmed

38:40with the losses and had nowhere to look

38:43so that's why it's so important for you

38:44to track your metrics and and it's it's

38:46worth the $50 a month to do

38:52it number three let's talk about how to

38:54manage risk we know that trading is

38:56risky and it's especially risk risky

38:58because anyone can open an account and

38:59begin trading the barrier to entry is

39:01very low but just because you can open

39:04an account doesn't mean you have the

39:06skill or strategy to produce consistent

39:08profits as we well know most Traders

39:10come into the market they fund an

39:12account with real money and the

39:13inevitable happens what is that they

39:15take a big loss they don't know what

39:17they're doing they lose money and the

39:19loss of money creates emotion so now

39:22they're emo they're all upset and that

39:24creates desperation which actually

39:27increases the quantity of bad trades and

39:30what does that result in losing more

39:33money and when they lose more money they

39:35get more emotional and then they trade

39:37even more you can see where we're going

39:38here this is a death spiral and this is

39:41what happens to a lot of beginner

39:42Traders they go into this downward

39:44spiral they come into the market and

39:46then they are quickly escorted right out

39:49and you know what's sad is that a lot of

39:50those Traders might have had the

39:52potential to actually become successful

39:54If Only They had slowed down and

39:57approach this the right way so let's

40:00learn from the mistakes that these other

40:02Traders have made before us and for you

40:04right now set a commitment that I'm

40:07going to focus on learning this and

40:09learning to do this the right way and

40:11that means learning a strategy and

40:13trading it in a Sim before you put real

40:14money on the line so that's the first

40:17step to managing your risk of course but

40:19um so we trade in simulator until proven

40:22profitable and and I always ask what is

40:24my exit price on this trade so if I'm

40:26going to take take a trade if I don't

40:29know what I stand to lose then in my

40:31opinion that's a gamble that's not a

40:33trade the only way it becomes a trade is

40:35if you're managing your risk against

40:38your reward so the way I like to trade

40:41is that I'll risk

40:43$100 to make a reward which is a risk to

40:47reward ratio of 200 oops whatever 200 so

40:51risk to reward 200 uh 100 200 which

40:54would give us a ratio of a profit to

40:57loss profit to loss ratio of 2: one and

41:01this is this is important because if you

41:02have a 2:1 profit loss ratio you

41:04actually only need to be right 33% of

41:06the time in order to be break even one

41:08to one is 50% so I would like you to

41:11look at a trade and say all right this

41:13is how much I'm going to risk and the

41:14amount that I stand to gain is at least

41:172x what I'm risking and if you could do

41:19that on every trade then you're thinking

41:21about risk and reward the right way as a

41:23beginner your intuition is going to be p

41:27because you you're new and that's okay

41:29it's to be expected that means your

41:30accuracy is going to be lower so you're

41:31going to take trades and you're going to

41:32have losers but you're looking at the

41:34right things and asking the right

41:36questions when it comes to profit and

41:38loss ratio and risk versus reward so

41:41you've got to monitor your metrics and

41:43understand your average winners and your

41:45average losers in dollar amount and

41:47you've got to monitor your accuracy so

41:49you know what percentage of the time

41:51you're successful you have to analyze

41:53your metrics to begin to understand the

41:55type of stocks you trade the best and

41:57the worst and at that point you focus on

41:59the winning stocks and you avoid the

42:01type you lose on so this ties into the

42:03importance of having this uh these

42:06metrics the downward spiral of many

42:09beginner Traders begins with poor

42:12accuracy poor accuracy creates a poor

42:15track record which creates poor

42:17self-confidence and increased losses and

42:19it just keeps going so how do you break

42:24this downward spiral now hopefully none

42:26of you are in this downward spiral but

42:28let's just let's just say maybe maybe

42:30one of you right now is in this downward

42:31spiral how do we break out of that

42:33downward spiral we break out of it by

42:36understanding that the cause of this

42:38downward spiral is an emotional response

42:42and that in fact one of the most

42:44important keys to success in trading is

42:48having the right mindset mindset is so

42:52important so how do you cultivate the

42:56mindset of success especially if you're

42:59a beginner Trader who is not yet

43:01successful well first of all we bring

43:04the stakes down big time by trading in a

43:06simulator that way if you lose money in

43:09a simulator it doesn't trigger an

43:11emotional spiral that's important so

43:14number one trading in a simulator number

43:16two we focus on accuracy that's how we

43:19break that negative feedback loop so

43:22what it means is that by focusing on

43:24accuracy you're Trading high quality

43:28stocks now remember today I'm going to

43:30share with you the five pillars of stock

43:32selection the five pillars of stock

43:33selection are also in the collection of

43:36PDF resources that hopefully you guys

43:38have already downloaded but if not the

43:39link is pinned at the top of the

43:40comments and in the description so you

43:43have to trade a quality setups by

43:45trading a quality setups you won't

43:47eliminate your losers but you will

43:48reduce the losers because you're trading

43:50the right type of stocks so a quality

43:54setups increases accuracy

43:57accuracy going up will improve your

44:00profit to loss ratio because a poor

44:03profit to loss ratio is typically caused

44:05by a few outlier trades that are huge

44:08losses that drag down your entire profit

44:11loss ratio and it's devastating but

44:13that's the reality so by increasing

44:16accuracy you'll increase your profit

44:18loss ratio and that then leads into

44:21consistency more green days more green

44:24weeks now you have more green days more

44:25green weeks what does that mean

44:27now you're building a strong track

44:29record a strong track record increases

44:32self-confidence increased

44:33self-confidence means you're going to

44:34increase the total number of Trades

44:36you're taking you're going to feel

44:37confident increasing your share size and

44:39that means increasing profitability and

44:41now you're on a positive feedback loop

44:45this is the right way to start so let me

44:47tell you this if you've already traded

44:49with real money if you've already been

44:50on the negative feedback loop I was

44:53there too and I was able to break that

44:55cycle it is not easy you have to be

44:58incredibly disciplined so the step to

45:00Breaking the cycle is putting yourself

45:02into what I call Trader rehab Trader

45:05rehab is when you bring your share size

45:07all the way down so you're trading at a

45:09level that does not trigger emotional

45:12response when you lose you bring it way

45:14down now if you have to go in a

45:15simulator that's fine or if you're

45:17trading with real money you go down to

45:19one share or 10 shares or whatever

45:21basically is is right at the point where

45:23you're not feeling an emotional response

45:25but you also are treating it like real

45:27money and and taking it seriously you

45:29focus on doing that for a minimum of 10

45:32days 10 days that's two weeks two

45:35trading weeks right so you do that for

45:36two weeks and I'm telling you if you

45:38could do that for two weeks you will

45:40feel like a different person at the end

45:42of it even if at the end of it you're

45:45green only four of the

45:47days all of a sudden you're going to

45:49feel this weight off your shoulder like

45:51wow I brought the temperature down so

45:53much and now when the temperature comes

45:55down you're able just to focus on

45:58building your strategy building your

46:01experience taking the highest quality

46:03setups and everything else kind of Fades

46:05it's it's incredible how much those

46:08emotions stay with us like if you have a

46:11big loss today then tomorrow the next

46:14day the next day like it just it takes a

46:16week it could take two weeks for it to

46:18kind of go to the Wayside but it needs

46:20to so you can reset your brain and get

46:23focused on building that positive

46:25feedback loop it begins with accuracy

46:27highest quality setups improve profit

46:29loss ratio improv consistency improve

46:32confidence and that's where it

46:37begins you've got to be thinking well

46:40gosh Ross how do I find the right stocks

46:41to trade let's get let's get into it

46:43right so I'm going to teach you how to

46:45set up scanners because stock scanners

46:48are one of the most valuable tools that

46:50Traders use this software searches the

46:53market in real time for stocks that meet

46:56certain sets of criteria now you choose

46:59the criteria and you tell the scanner to

47:01look for it most Brokers offer some

47:04basic scanning technology a simple

47:07scanner such as the leading percentage

47:09Gainer on the day we'll give you a list

47:11of the stocks that are up the most on

47:13the day and in fact I get these

47:15notifications all the time from Brokers

47:17telling me which stocks are up the most

47:19today why are they doing that why are

47:21they pushing these stocks because they

47:24want you to have little fomo they want

47:25you to trade them because they make

47:27money when you trade the payment for

47:29orderflow model so now the stocks are up

47:32the most each day they do get a lot of

47:34attention they have a lot of people

47:35paying attention looking at the charts

47:37and trading them and that gives them

47:38more volume which can be a good thing so

47:40I'm going to give you my scanner

47:42criteria and this this is going to

47:45introduce the concept of supply and

47:48demand as it pertains to active trading

47:51so what we look for is an imbalance

47:54between supply and demand that's what

47:56allows a stock to go up 50% 75% 100% in

48:00one day I mean these can be absolutely

48:02incredible moves now let me show you

48:04just as an example here um I've got a

48:07stock here that is up uh about

48:10139% right now so it's 139% that's a

48:14huge move it's impressive and so how did

48:17this stock go up that much now this is

48:20my platform here we haven't we haven't

48:21really gotten into charts too much yet

48:23except for the very beginning but you

48:24can clearly see that this is a stock

48:26that's up a lot so what happened with

48:28this company was they put out breaking

48:30news this morning it was right down here

48:33they put out this breaking news headline

48:35the news came out that they were

48:36launching a satellite with SpaceX and

48:39immediately the stock went from 350 all

48:41the way up to six bucks it pulled back

48:43and then it rallied up to eight it

48:45pulled back and it rallied up to just

48:47under nine so this company put out news

48:50that was so strong every Trader that saw

48:53it more or less was like I want to get a

48:56piece of this AC

48:57and so what happened was it began with

49:00number three which was a news Catalyst

49:03there was a news event that the company

49:06put out and that immediately brought in

49:10volume so the way it starts is the news

49:13comes out early traders who subscribe to

49:16data feeds that give them the news and

49:18I'm one of those Traders see it and

49:20immediately read it and are like wow

49:22this is strong and the stock almost

49:25instantaneously when the news comes out

49:27the news comes out and the stock almost

49:29immediately starts squeezing up right

49:31here so as it pops up right here it

49:34begins triggering my alerts that my

49:37scanners use so all of a sudden the

49:39stock is up 10% let's just say in 5

49:42minutes so my scanner is telling me hey

49:45Ross even if I haven't seen the news yet

49:47my scanner is going to tell me hey Ross

49:49there's a stock right now up 10% in 5

49:51minutes you should check you should

49:53check it out pay attention to it es and

49:55that's going to be especially true if

49:56the stock is between the prices of 2 and

50:0020 now we know 2 and 10 is a little bit

50:02better but 2 and 20 so if it's in that

50:05range and it's spiking up my scanners

50:07are going to tell me with an audio alert

50:09bing bing bing bing bing and they're

50:10going to show me the stock and I'm going

50:11to pull it up I'm going to see the news

50:13and I'm going to realize this is why the

50:15stock is moving higher so that that's

50:18how we find these stocks so what I know

50:21is that when a stock has a news event

50:23when it's priced between approximately

50:25$2 $320

50:27that it's already up 30% on the day that

50:30it has five times higher volume than

50:33average that these are the common

50:35denominators among my biggest winning

50:39trades so this is the profile of the

50:42type of stocks I make money on and

50:43that's not just opinion that I I think

50:46that I actually know that I know that in

50:50my data this is over $12 million of

50:53trading profit well no not right here

50:54we've got to filter it we were in just a

50:56month of April but we'll go back to the

50:58total so um so right here we'll go to um

51:02so we know the price uh we can go to

51:05instrument and this is loading a lot

51:07there's thousands and thousands of

51:09trades in here um but this is going to

51:10show me that I make more money on stocks

51:12that have higher volume that I do better

51:14when the stock has five times relative

51:16volume now why would a stock have five

51:18times higher volume today than what is

51:20average for that stock it's the news

51:23catalyst so all of these um these items

51:27in green here are indicators of high

51:29demand a stock between three and 20 is

51:31going to have higher demand than a stock

51:33at $300 a share it just is it's more

51:36affordable more people are going to

51:37trade it a stock with news event is

51:38going to be more uh in demand a stock

51:40already up 30% people are going to be

51:42attracted to it I know it's up a lot but

51:44people are like it could go higher and

51:45we've certainly seen that a stock with

51:47high relative volume has got high demand

51:49so these are all of the elements and

51:51characteristics of demand but what about

51:55Supply so there's only one element of

51:58supply and that is the float the float

52:01is a term that means the number of

52:03shares available to trade so when a

52:06company does an initial public offering

52:08they do an IPO they sell shares onto the

52:11open market so let's just say a company

52:13decides to sell 10 million shares they

52:16sell 10 million shares as an in their

52:18IPO and the IPO is just priced at let's

52:21say $8 a share so at $8 a share I'm

52:23going to change my marker here they're

52:25going to raise how much money 10 * 8 $80

52:27million it's a lot of money all right so

52:29they're raising $80 million in their IPO

52:32and from that point forward the stock

52:35begins trading at $8 and they have 10

52:37million shares that are available to

52:38trade that equals the float and so when

52:42we see a stock that has 10 million

52:44shares available to trade we know that

52:47the amount of shares is relatively

52:49limited so to give you context a company

52:51like Bank of America has a float of I

52:53think it's 10 billion shares 10 billion

52:57shares why have they sold so many shares

52:59they had to sell shares in order to

53:00build out the company in order to build

53:02all of the banks all the locations in

53:04order to have the capital to do all the

53:06lending they needed that money and so

53:08they sold the shares in order to raise

53:09that money smaller companies will sell

53:12fewer shares to raise money they don't

53:13need billions of dollars and they

53:15wouldn't be able to raise that money

53:16even if they wanted to because investors

53:18would be like wait what do you need all

53:20that money for what are you going to do

53:21with it the it just wouldn't make sense

53:23to value a tiny company at the amount of

53:26money to raise you know that kind of

53:28that kind of cash and so what ends up

53:30being the case is that most of the

53:31stocks between 2 and 20 not all of them

53:33but a lot of them between 2 and2 the

53:35lower price stocks also have relatively

53:37lower floats the number of shares

53:39available at trade is limited and so

53:41when we have the initial public offering

53:43that's the IPO these are the shares that

53:45are available from that point forward

53:47that's the shares that are available to

53:49trade unless a couple of things happen

53:52one is a

53:54buyback so sometimes a company will do a

53:56a buyback and they'll say you know what

53:58we're going to buy back 2 million shares

54:00so if they did that their float's going

54:01to go to 8 million or they could do

54:04what's called a um a secondary offering

54:07so a secondary offering will sell more

54:10shares onto the market so a secondary

54:13offering this is an initial public

54:15offering this is a secondary offering so

54:18here they sell another let's say 5

54:20million shares and that would bring

54:22their float up to 15 million and that's

54:24not uncommon they would raise that 5

54:26million uh sell that 5 million shares

54:28and maybe they sell it $8 the same as

54:30their IPO maybe they sell it for Less

54:32depends on what the current market is

54:33for the company but they would sell

54:34those shares they would raise more money

54:36and then it would bring the total

54:37Capital raise to the new dollar amount

54:40and of course the hope would be that

54:41they take that money they invest in in

54:43in the company and are able to make the

54:44company worth more that's not always the

54:46case with low price stocks they're

54:48usually lower price because they're

54:50underperforming um Market expectations

54:52in one way or another but that can also

54:55present an opportunity where you got

54:56something that's been really beaten up

54:58it's lower priced and then when they

54:59come out with some great news you could

55:02have the stock that goes you know 300%

55:04off the lows from $3 to $9 or $10 or 12

55:08or 15 I mean we've seen it I I'll show

55:10you an example right here of a stock uh

55:12this was just a couple weeks ago where

55:15we had a stock that literally came out

55:16with news and I can't remember what the

55:19Catalyst was on this but I want to say

55:21it was um a catalyst with Nvidia um but

55:26but I could be wrong in any case this

55:28this stock went in a matter of I mean it

55:31happened so fast it went from $6 a share

55:33to $50 a share in like 15 minutes now it

55:36came back down a lot but this was like

55:39an unbelievable move off the lows um

55:42this is another stock drug that we um

55:45that I traded this year this one went up

55:49um couple

55:51th% from about $2 a share all the way to

55:53$80 it's still holding at 40 $40 a share

55:57it's incredible these are huge moves so

55:59these are companies it's got a 6.9

56:01million share float so the number of

56:03shares available to trade is is pretty

56:04limited the company put out news it's a

56:06biotech company it was good news well

56:09received by the market and you know off

56:10it goes so now what I've done is I've

56:14taken the data that again is not opinion

56:17but it's fact about the type of stocks I

56:19make the most money on and I have

56:22programmed that into my scanners so I

56:24created a custombuilt scanner to help

56:27give me an edge in the market this

56:29scanner uses the data from more than a

56:31decade of my own trading history to

56:33search for the type of stocks I

56:34statistically make the most money on

56:37when a stock hits my scanner I

56:39immediately analyze the news headline

56:41and begin performing a combination of

56:43fundamental and technical analysis and

56:46so this software right here is what I'm

56:49using this is called day trade Dash and

56:51I actually hired a development team to

56:53build out this software for me I use it

56:55in my own trading every single day

56:57exclusively and members at Warrior

56:59trading my warrior Pro students they

57:02have access to it as well now people can

57:04also subscribe to it just on our website

57:06but this is a software that I use to

57:08search for stocks that are moving what I

57:10love about the software is that our goal

57:12was to create a UniFi dashboard that had

57:14the charts the scanners the news feed

57:17the chat room everything in one place so

57:19you don't have to go toggling between

57:22four or five different platforms so we

57:24tried to make it pretty easy I think

57:25we've done a pretty good job of that so

57:27I don't need that up so all right now

57:29let's go ahead and um jump in here to oh

57:33well let me show you this so when I have

57:35the scanners um coming up each stock

57:38that hits the scanner right here this is

57:41my top gainers scan so I'll just do it

57:43on here it's a little bit more clear so

57:46this top gainers scanner is showing me

57:48the top leading percentage gainers in

57:50the entire market and the flame is

57:52telling me if it has news a red flame is

57:55hot hot hot that means the news was in

57:57within the last 2 hours the orange flame

57:59the news is uh between 2 and 12 hours

58:02and the yellow flame is between 12 and

58:0324 hours so I like to see stocks with

58:06red and orange Flames which means I'm

58:08hopefully trading the very beginning of

58:11a breaking news squeeze and I'm I'm in

58:13it on the early side now in real time

58:17this scanner called the small cap highay

58:19momentum scanner will trigger audio

58:22alerts when a stock meets the criteria

58:25that I've trained the scanner to search

58:27for so it's almost like radar in real

58:29time going bing bing bing this stock

58:31meets the criteria and what I get is the

58:33time of the alert the ticker for the

58:36stock the price the the amount of volume

58:39the stock is traded today the float the

58:41number of shares available trade the

58:43relative volume the stock is currently

58:44experiencing so wkey had relative volume

58:48of

58:4996 that one traded 96 Times Higher

58:52volume today than its average which is

58:55huge

58:56um and then we also it tells us how much

58:58the stock was gapping up and how much it

59:00was up from the previous day's close

59:02which was um 66% actually has Peak and

59:06the these are the names of the different

59:07scanners that I have and then I can set

59:09the audio alerts to which scanner I want

59:12to trigger the Bell that way I only hear

59:14the scanners that I really like and the

59:16running up scanners the similar uh scans

59:18slight variation of that so this is the

59:21tool that I used to find the best stocks

59:23to trade and in the PDF handout of the

59:26Five Pillars of stock selection you will

59:28have um you will have access to each of

59:30those criteria and some expanded uh

59:33definitions and and um details about

59:40that let's talk about how to set up your

59:42charts once you found a stock you like

59:45on the scanners you need to know how to

59:47analyze that chart so we have a stock

59:50and we'll just use the example of wkey

59:52it hits the scanner boom there it is on

59:55the scanner so now we're pulling up our

59:57charts all right so I click on the stock

59:59it'll update the charts it'll update the

1:00:00news feed and everything else so now

1:00:02we're looking at the charts and this is

1:00:04where we're getting into the language of

1:00:06technical analysis which is the

1:00:08universal language of the financial

1:00:10markets all right so you found a stock

1:00:12on scanner that you like how do we

1:00:14analyze it let's go ahead and jump in

1:00:15here this is the basics of candlesticks

1:00:18now some of you may already be familiar

1:00:20with this and this will just be a quick

1:00:21brush up but for others this is brand

1:00:22new so the candlesticks are uh the type

1:00:26of chart that we use and if we look at

1:00:29um the the actual trading software up

1:00:31here or the day trade Dash platform you

1:00:34can see that each one of these charts

1:00:36has these shapes and these are called

1:00:38candlesticks and these are therefore

1:00:39called candlestick charts Candlestick

1:00:42charts have been around for uh well over

1:00:44a century they were developed um in

1:00:48Japan to trade rice Futures and they've

1:00:51become widely uh adopted and used by

1:00:53Traders of all different markets and

1:00:55they're the most popular type of chart

1:00:57today in the financial market so

1:01:00Candlestick charts are the type of chart

1:01:02that we use to view historical price

1:01:05action and that's really what the stock

1:01:07chart is it's showing us what has

1:01:10already happened and then we use that

1:01:12information to try to make a prediction

1:01:14of what we think is going to happen next

1:01:17so stock charts create context for us to

1:01:20help us better understand the current

1:01:22price because if you said hey this stock

1:01:24is currently at $5

1:01:26it it's like well what's that relative

1:01:29to is that a good thing or a bad thing

1:01:31you know it's a good thing if the stock

1:01:33was down here and it's come up it's a

1:01:34bad thing if the stock was up here so

1:01:36the chart creates the context to help us

1:01:38better understand current price all

1:01:40right so the individual candlesticks

1:01:42that create these charts are very

1:01:45important these are the building blocks

1:01:47for this language of the financial

1:01:49Market each individual Candlestick has

1:01:53four pieces of information it

1:01:56communicates the open price the Clos

1:01:58price the high price and the low price

1:02:01for that period of time so when we're

1:02:04looking at a chart each one of the

1:02:06charts represent for me a different time

1:02:08period so this chart right here says

1:02:121D and that means it's a daily chart so

1:02:16each one of these candles represents one

1:02:18full day of time and so if a candle

1:02:22represents one day of time and it

1:02:23communicates four pieces of information

1:02:25we have the open price which was the

1:02:27bottom of this candle and this also

1:02:29happens to be the low so the open and

1:02:32the low share the same price it open and

1:02:34it never went down it just went straight

1:02:35up so that's the open and then the top

1:02:38of the body is the close and that's the

1:02:41high of day so although there's only

1:02:43three different prices that create this

1:02:45candle it's actually four different

1:02:47pieces of information the open the low

1:02:50the high and the close the open yeah

1:02:52sorry the high the low the open and the

1:02:54close all right so now if we jump back

1:02:56onto our uh slide deck a green candle

1:03:01opens low and closes high and that's why

1:03:04it needs to be colored differently so

1:03:06you can understand which direction it

1:03:08went a red candle opens high and closes

1:03:11low so that we color it red so we

1:03:14understand that the price went down the

1:03:17upper line here is called a wick a

1:03:20candle wick so it's candle wicks also

1:03:23sometimes called Shadows an upper lower

1:03:25shadow I like to call them candle wicks

1:03:27generally so these are upper and lower

1:03:29candle wicks so a stock that has um

1:03:32let's say looks like this would have a

1:03:35large uh bottoming tail or a lower

1:03:38candle wick the same shape with the

1:03:41candle wick on the top we would

1:03:43sometimes call that a topping tail and

1:03:45in the certain a certain context we

1:03:47might even call that a shooting star

1:03:48candle I'll show you what that looks

1:03:49like in a second so the each individual

1:03:54candlestick communicat Ates information

1:03:57to us the way I think about it is that

1:03:59each Candlestick shape is like a

1:04:02different letter in the alphabet so we

1:04:05have these different shapes and then

1:04:06when you have just like letters you have

1:04:08multiple letters together they form a

1:04:09word and the words that we're looking

1:04:11for is buy and sell all right the these

1:04:14are the very key words that we're trying

1:04:16to pick up from the chart and we

1:04:18actually can get that so the first

1:04:20candle that I want to teach you about is

1:04:21called a dogee a dogee candle is a

1:04:25candle CLE where the open and the close

1:04:28are more or less at the same price and

1:04:30so here we see a stock that moved up and

1:04:33at the very top has this funny shaped

1:04:35candle that's a dogee the open and the

1:04:37close are at the same price which is why

1:04:39there's a flat line right down there but

1:04:41it has an upper candle wick so the four

1:04:45pieces of information here the open the

1:04:47close and the low all are the same and

1:04:50the only one that's different is the

1:04:52high so that's an unusual candle but

1:04:54that that can happen now this is called

1:04:56a gravestone dogee and the reason is

1:04:59because if you have a stock that's been

1:05:01very strong showing large green candles

1:05:04and then at the top of that run this

1:05:07candle forms it's an indicator of a

1:05:09potential reversal why is that well

1:05:12let's think about how that candle was

1:05:14actually created so we had green candle

1:05:17green candle green candle and then this

1:05:20final one right here so the price opened

1:05:23and usually the open is more or less at

1:05:25the same price is the previous close

1:05:27sometimes they Gap up but usually it it

1:05:28closes and then the next one opens

1:05:30closes and then the next one opens so it

1:05:32closes and the next one opens and it

1:05:35starts moving higher so we're like okay

1:05:37this is looking great and in this moment

1:05:39it would actually have been a green

1:05:40candle so wouldn't have just had the

1:05:42line it would have actually been a green

1:05:44candle at that second and then all of a

1:05:47sudden sellers came in and push the

1:05:50price back down and so the price dropped

1:05:53down so then we had the high which was

1:05:56this candle wick but the body was

1:05:58getting lower and lower and lower until

1:06:01finally at the close of that period

1:06:04again doesn't matter if it's a one

1:06:05minute chart or it's a f minute chart or

1:06:08it's a daily chart by the end of that

1:06:10period all we had was this little body

1:06:12right here and so what this tells us is

1:06:15that there was weakness the stock

1:06:18squeezed up but ultimately sellers were

1:06:20stronger and they pulled the price all

1:06:23the way back down in fact this could

1:06:26even occur where the candle ends up

1:06:29closing red they were so strong that the

1:06:32whole candle goes red and it's got a

1:06:34small body and I'll show you that's

1:06:37there's a a specific name for that

1:06:38candle but right now we'll just stay

1:06:40focused on this being a doy so the open

1:06:42and the close are the same and in this

1:06:44case the low is also the same so that is

1:06:48a candle of indecision it means the

1:06:50reversal has already begun and the next

1:06:52candle is likely to go red and continue

1:06:55the pullback no one who really

1:06:57understands the language of the markets

1:06:59would buy directly following that candle

1:07:02because this is a very clear cell signal

1:07:04so you learn it's a sell signal in this

1:07:07context now if this wasn't occurred in

1:07:09the context like this where you had just

1:07:13a bunch of small kind of little dogee

1:07:16candles like this maybe one like this

1:07:18and they're kind of gaing a little bit

1:07:20what would this tell us this would tell

1:07:22us that this is a stock that more or

1:07:24less is just going side sideways and if

1:07:26a stock is going sideways it's already

1:07:29exhibiting indecisiveness so there's not

1:07:32really anything significant communicated

1:07:34by a candle that has a topping tail the

1:07:37Stock's already indecisive it's already

1:07:38going sideways it's only when a stock is

1:07:40showing a strong Trend and then shows

1:07:43this indecisive candle that you worry

1:07:46that whoa we might be about to see a

1:07:48change in Trend so a gravestone dogee is

1:07:51a bearish candle bearish means going

1:07:55down bullish means going up the next

1:07:58candle is a dragonfly dogee now

1:08:02dragonfly dogee is a candle that occurs

1:08:04at the bottom of a selloff so you've got

1:08:07you know a few red candles doesn't have

1:08:09to be three it could be more it could be

1:08:10less but the bottom of a

1:08:12selloff you have a candle that opens and

1:08:15closes at the same price dips down but

1:08:17then comes back up so this is the exact

1:08:19inverse of this and so would this be

1:08:22bearish or

1:08:23bullish the answer is that this is a

1:08:25bullish pattern because the candle shows

1:08:28that the buyers came in and pulled the

1:08:30price back up and that the reversal may

1:08:32already be starting it then is confirmed

1:08:35as the next candle is green and moves

1:08:38higher so when you look at a chart like

1:08:39this you're always like well clearly

1:08:41that was the low yep and then so when

1:08:43it's happening in real time as you're

1:08:45seeing that bottom form with that

1:08:47bottoming tail or you're seeing that

1:08:48topping tail form you learn to recognize

1:08:51here we go it's happening right now and

1:08:53this is where it gets pretty cool

1:08:55because the better you get at this

1:08:57you're actually starting to visualize in

1:08:59your mind what's going to happen next so

1:09:01it's like you're you're seeing in the

1:09:02future but you're visualizing okay I've

1:09:04seen this pattern this many times when

1:09:06this happens this follows right that's

1:09:08the relationship and the pattern

1:09:10recognition that we're working on here

1:09:11so you're learning the language we've

1:09:13got the gravestone dogee we've got the

1:09:15dragonfly dogee and now we've got the

1:09:16long-legged

1:09:17dogee a long-legged dogee is just simply

1:09:20a dogee where you've got a long upper

1:09:23Wick and a long lower Wick it's not it's

1:09:27it it's still indecisive whether it

1:09:29occurs at the top or the bottom of move

1:09:30it's still showing indecision it often

1:09:32leads to a temporary correction and so

1:09:35it's maybe not quite as ominous as a

1:09:38gravestone dogee it's not quite as

1:09:40strong as a dragonfly dogee it just

1:09:42shows that there's a real tug of-war

1:09:44going on up here between buyers and

1:09:46sellers okay so these are three types of

1:09:49dogee candles that are important to be

1:09:51aware of and you may not always refer to

1:09:53them as a gravestone dragonfly

1:09:55long-legged dogee you could refer to all

1:09:57three of them as a dogee and and no one

1:09:59would give you a hard time for that so

1:10:01now a Candlestick that occurs

1:10:03specifically at the bottom of a selloff

1:10:06can be called a bottoming tail so this

1:10:09is a stock that has sold off again

1:10:11doesn't have to be three candles it

1:10:12could be more it could be less and at

1:10:14the bottom you had a candle that

1:10:16bottomed out and then the buyers came in

1:10:18and it sent it back up and it actually

1:10:20closed green which indicates the

1:10:22reversal has already begun this C handle

1:10:25is also called a hammer it's hammering

1:10:29out the base so this is the base the low

1:10:34is the base that becomes support as long

1:10:36as a stock can hold above support this

1:10:38is confirmed to be the base and the low

1:10:41so what often happens here if this is a

1:10:43red candle it still communicates a

1:10:46reversal is likely starting but when

1:10:48it's a green candle it confirms the

1:10:50reversal has already begun and then the

1:10:52next candle continuing green confirms

1:10:54that even further so usually when people

1:10:57take a trade in this area they're going

1:10:59to be buying not the first candle

1:11:02they'll buy the second candle here as it

1:11:05confirms the trend by continuing to move

1:11:07higher so that would be the same in

1:11:09these examples here where if you were

1:11:11selling it your final exit would be when

1:11:13this candle second one goes red if

1:11:15you're buying your entry would be on

1:11:17this candle here as it goes green and if

1:11:19you were selling here your exit would be

1:11:21down here all right so this is a

1:11:24bottoming tail also sometimes called a

1:11:27hammer this is a topping tail so now

1:11:30I've got stock that's been squeezing up

1:11:32and instead of forming the dragonfly

1:11:33dogee it actually has or sorry the

1:11:35gravestone dogee it actually has a body

1:11:37here um however that topping tail is

1:11:40ominous it indicates that although there

1:11:42were buyers the sellers were stronger by

1:11:44the end of the candle and brought the

1:11:45price back down this could also be

1:11:48called an inverted hammer or a more

1:11:51appropriate name is a shooting star a

1:11:54shooting star comes back down to earth

1:11:57so when you have a shooting star up high

1:11:59it indicates the price is likely going

1:12:01to come back down and so the exit on

1:12:03this would have been on this candle here

1:12:05when it confirmed by going red and

1:12:07breaking to a new low so you notice

1:12:09these candles keep making new highs

1:12:11they're sort of stair stepping up and as

1:12:14soon as we have a stock that makes a

1:12:15step down that's the exit indicator now

1:12:18a step up Step Up step up sometimes

1:12:21we'll go down to flat and then come up

1:12:23again and that's okay but when we make

1:12:26the full two sort of steps down that we

1:12:28have to get out so it's basically when

1:12:30you have two candles that go lower and

1:12:32lower that we get

1:12:33out so when I'm looking at my charts I

1:12:36do use technical indicators and at the

1:12:38beginning of this episode we looked at

1:12:39the macd the macd is one of my one of my

1:12:43favorite indicators and I didn't use it

1:12:44for a long time um however during the

1:12:47bare Market of 2022 I began using it and

1:12:50I found it really helpful um in in

1:12:53helping me avoid false breakouts so let

1:12:56me share with you the indicators that I

1:12:58use I'm a big believer in keeping your

1:13:00charts simple you can over complicate

1:13:03them by adding dozens and dozens of

1:13:05technical indicators and unfortunately

1:13:07what some Traders will do is they'll add

1:13:09a lot of indicators hoping to find the

1:13:12perfect combination where the indicators

1:13:15will tell them where to buy and where to

1:13:17sell and they will never lose money and

1:13:19that desire to find that comes from a

1:13:22deep fear of loss a deep aversion to L

1:13:25and I understand not wanting to lose

1:13:26money nobody wants to lose money but

1:13:29this is trading you will lose money

1:13:32being a successful Trader doesn't mean

1:13:33not losing it means being good at losing

1:13:36which is cutting your losses quickly and

1:13:38then focusing on winning trades adding

1:13:40to Winners not to losers you'll learn

1:13:42about that more as we continue on with

1:13:43this class so in an effort to keep it

1:13:46simple this is what my charts look like

1:13:49I have moving averages on my charts and

1:13:51a moving average is the average price of

1:13:54the stock over a set period of time

1:13:57there are two types of moving averages

1:13:59exponential and simple I use exponential

1:14:03because they move a little bit faster so

1:14:05they adjust faster to the price and I

1:14:07use the 9 the 20 and the 200 so over on

1:14:11my charts here and whether you use um

1:14:14you could use any platform you want I

1:14:16mean you could use think or Swim you

1:14:17could use U day trade Dash you could use

1:14:20Weeble it doesn't matter what you use

1:14:22I'll pull up my Weeble account here just

1:14:24um I think I have my thinker swim

1:14:26account up as well um well I can log in

1:14:28but in any case doesn't matter which

1:14:30platform you use you can set up your

1:14:31technical indicators on your charts now

1:14:33this is the Weeble kind of light layout

1:14:36um but let's just change this to um wkey

1:14:39so we're looking at the same stock so on

1:14:43Weeble right now I've got a moving

1:14:45average on here that I don't even think

1:14:47I added because I don't really this is

1:14:48sort of you know I have it set up for

1:14:50doing demos and stuff like that little

1:14:53small account challenges but I don't use

1:14:54this on a daily basis for me uh but over

1:14:57in uh our platform what you can do is um

1:15:01you can click the FX button and the FX

1:15:04then you type in moving average and I do

1:15:07the exponential moving average I click

1:15:09that it'll then add to the chart and

1:15:12then I can actually hover over it and

1:15:14either double click it and it'll pull up

1:15:16the data about it and when I double

1:15:18click it I can change uh some

1:15:21information about it so let's see so

1:15:23this is the 9 EMA

1:15:25uh it's based on the close price which

1:15:27is correct there's no offset it's an EMA

1:15:30and then under style I can change the

1:15:32color I could make it Bolder I could

1:15:34make it less bold I could change the

1:15:36color so I have my 9 EMA in Gray I have

1:15:40my 20 EMA in blue and I have my 200 EMA

1:15:44in purple or magenta and I think that

1:15:46that for me works just great so I've

1:15:48kept it that way for years and years and

1:15:50years so I always know what that looks

1:15:52like and I use the same exact act

1:15:55indicators on my 1 minute my 5 minute my

1:15:58daily chart and even my 10-second chart

1:16:01so these are different time frames but

1:16:03they're the same exact indicators now

1:16:05over on um thinker swim I recently did a

1:16:08think or swim challenge and on thinker

1:16:09swim I kept my charts very simple uh but

1:16:12you can go into studies you could do add

1:16:13a study you can go down to um moving

1:16:16average oops moving average and then you

1:16:19go to um let's see where is it moving

1:16:23average exponential right there there it

1:16:26adds it right there I can click on it I

1:16:28can it's currently the nine I'll change

1:16:30that from that cyan color to my gray

1:16:33color that I prefer and um I think that

1:16:37that's fine just like that so I'll click

1:16:38apply and then I would just do the same

1:16:40thing I would go to studies I would add

1:16:42another study I would add the next

1:16:43moving average which is the the 20 and

1:16:46so on so forth once you've done that

1:16:48then you can save your chart you can

1:16:50save your layout and then you can

1:16:52duplicate that for a 1 minute and a 5

1:16:55minute uh and a daily or the 10-second

1:16:58depending on how many charts you want to

1:16:59set up so I use these three moving

1:17:02averages the 9 the 20 and the 200 and

1:17:05then I also use the volume weighted

1:17:07average price you can see that's this

1:17:09orange line right here the volume

1:17:12weighted average price is like a moving

1:17:14average except it also factors in the

1:17:18amount of shares traded and so in other

1:17:21words if you had a stock that traded

1:17:25let's just say um just for the sake of

1:17:27argument those would be sort of odd

1:17:28numbers but let's just say it traded at

1:17:30$1 a share and it traded a 100 shares

1:17:34and then it traded at $10 a share and it

1:17:37traded um a th000 shares a simple moving

1:17:41average would show the average price of

1:17:43five it would just say it's five it's

1:17:44right in between uh an exponential

1:17:46moving average would also just show the

1:17:48price is right in between but the volume

1:17:50weight average price would say well wait

1:17:52a second there was 10 times more volume

1:17:54up here at 10 so the vwap would actually

1:17:57price it way up here closer to probably

1:17:599 something so the volume weight average

1:18:03price tells us the average price of the

1:18:06stock

1:18:07today including all of the volume that

1:18:10was traded at each of the different

1:18:12prices and so what it gives us is the

1:18:15true kind of equilibrium of this is the

1:18:18most average price of the day so if the

1:18:20stock is trading above it it's bullish

1:18:23if it's trading below it average it's

1:18:25bearish and generally I like to trade

1:18:28stocks that are trading above the volume

1:18:31weight average price certainly a stock

1:18:34like wkey for most of the day was

1:18:37trading above vwap it did dip down below

1:18:40it just for a moment um at a couple

1:18:42points but certainly in the afternoon it

1:18:44was trading well above vwap so it was

1:18:46definitely bullish definitely strong if

1:18:48it came back down to vwap was below it

1:18:51and held below it I would feel that the

1:18:53stock was in control by

1:18:55uh the Bears or perhaps the sellers

1:18:58right because it's clearly not holding

1:19:00this level that is important now the

1:19:02next indicator and I'll just go based on

1:19:05the chart here is the volume so the

1:19:08volume is communicating the number of

1:19:11shares that traded in that period and so

1:19:14it just Auto scales where the highest

1:19:17volume candle will be the the top of

1:19:19this sort of panel here and so then you

1:19:22get a sense of okay was this a high

1:19:24volume candle relative to the others

1:19:26it's colored based on whether the actual

1:19:28candle was green or red right so whether

1:19:32the actual candle went up or down the

1:19:34volume will be colored to match now

1:19:36there are some ways that you can uh

1:19:38change this to to attempt to show the

1:19:42actual number of orders that went

1:19:45through that were buy orders versus sell

1:19:47orders but I don't find that to be

1:19:49particularly helpful this is the style

1:19:52that I've always used for volume and and

1:19:54so that's I've kept it now the last

1:19:57indicator is the macd the macd is the

1:20:00moving average convergence Divergence

1:20:03indicator and we've got to get on the

1:20:04Whiteboard for me to explain this one

1:20:06because this is an important one so we

1:20:08have a stock that has been um generally

1:20:11strong so let's say it squeezed up and

1:20:14then I'll just keep this in green even

1:20:15though this would be red pullback it

1:20:16moved higher and then pulled back and

1:20:20then it moved higher and then pulled

1:20:22back and then right here it's kind of

1:20:25going sideways all right so if we had

1:20:29the 9 EMA here the 9 EMA and let's just

1:20:34say this um you know had already made a

1:20:37move up here and then pulled back again

1:20:39before that move so our 9 EMA is always

1:20:42the average price of the last nine

1:20:44candles so it goes nine candles back so

1:20:46you know 1 2 3 4 5 6 7 8 nine so the

1:20:49average price is somewhere like here so

1:20:51we're just going to kind of draw this

1:20:53like this now that's the 9 EMA the 9 EMA

1:20:58so now and I should well it's fine so

1:21:00we'll do the 20 EMA in brown it's not

1:21:02what I typically would do but it's fine

1:21:04so the 20 EMA the average price over the

1:21:07last 20 candles is actually going to be

1:21:09lower because it's including candles

1:21:11from further back where the price was

1:21:13lower so what ends up happening is the

1:21:1620 EMA is a little slower to catch up it

1:21:20does move but it's a little bit slower

1:21:23and so what ends up happening is when a

1:21:25stock starts moving quickly you have

1:21:28these periods where the moving averages

1:21:30are diverging they're moving apart and

1:21:34when they're moving apart quickly that

1:21:36tells us the price is going up they only

1:21:38they only move apart because the price

1:21:40is going up but when the moving averages

1:21:42begin converging coming back together

1:21:45here it tells us that the price is

1:21:47compressing we're going into an area

1:21:49where the price is kind of going into a

1:21:51tighter range and what I have found in

1:21:54my Trad and this was very consistent

1:21:56especially during the bare Market was

1:21:59that when these moving averages when the

1:22:02macd actually crosses right here that

1:22:06signifies the end of the front side of

1:22:10this move and more times than not any

1:22:13attempt to break out will reject and the

1:22:16price will end up selling off the very

1:22:19fact that the stock went sideways for

1:22:22this long going sideways for this long

1:22:25unfortunately it just sort of killed the

1:22:27chart it it the Traders gave up on it

1:22:30this is a stretch where it had strong

1:22:32momentum it's moving quickly but then it

1:22:35kind of goes into this range where

1:22:36people are no longer as enthusiastic and

1:22:39so the trend is ending the strong trend

1:22:42of momentum so this is the place here

1:22:44where you have to be really careful and

1:22:47during the bare Market I kept finding

1:22:48myself buying some of these trades and

1:22:50then catching this reversal which is

1:22:52when I started to say you know what I

1:22:53got to pay more attention the moving

1:22:55average convergence Divergence indicator

1:22:56the macd because this is telling me

1:22:59right here that it's a it's a very clear

1:23:01signal that I should wait this out so

1:23:04those are the five well the four

1:23:07indicators that I'm using the moving

1:23:08averages the vwap the macd and the

1:23:11volume bars on Candlestick charts and

1:23:13that's it I really keep my charts super

1:23:16simple and so the way I do it um is I

1:23:19have um I well so and I'll go over this

1:23:22in a second but I have four charts for

1:23:24one stock so each of these charts are a

1:23:27different time frame so we've got the

1:23:29daily chart down at the bottom and I

1:23:32keep that the smallest because once I've

1:23:34looked at the daily chart I'll expand it

1:23:36I'll look at it I'll see oh okay yeah so

1:23:39recently so this was a level back here

1:23:41where it came up to 1045 all right so I

1:23:43Mark that level out I just do a trend

1:23:46line I click on that trend line tool I

1:23:49click on the chart and if I press my

1:23:50control button it'll actually do a

1:23:52magnet to the top of the candle and I

1:23:54just click that and then I might look to

1:23:56the left and up and say oh well is there

1:23:59any other nearby resistance so I look

1:24:02left and then up oh low of that candle

1:24:04there all right so what was that that

1:24:06was 12 and I kind of look to the left

1:24:08and up and oh there's a couple candles

1:24:10there so what was that 1640 I'll sort of

1:24:12Mark out a couple of those levels so

1:24:14then once I've done that the levels are

1:24:17marked and they're on my chart and I

1:24:18don't really need to sort of look at it

1:24:20anymore so now at that point I've

1:24:23analyzed my daily chart for areas of

1:24:25support and resistance and now I'm

1:24:27getting into focusing on my 5minute

1:24:29chart if the 5-minute chart looks good

1:24:32meaning the price is above vwap you know

1:24:34I'm not seeing any big exit indicators

1:24:36or any big issue then I get focused on

1:24:38the one minute and on the one minute is

1:24:40where I actually use the macd I don't

1:24:42use the macd on my five minute or my

1:24:44daily chart I don't find the signal to

1:24:46be as helpful but I do use it on the one

1:24:48minute and then the 10-second chart I

1:24:51usually use more as a teaching tool to

1:24:53show people sort of in very tight ranges

1:24:56what I was seeing uh it's a little fast

1:24:58for trading but you can use it if you'd

1:25:00like to the macd on the one on the 10c

1:25:03is too fast so I don't use it down there

1:25:06either so I have basically four time

1:25:10frames all for the same stock these are

1:25:13C four different Candlestick charts but

1:25:14they're all for the same stock but of

1:25:16course the 10c is just a essentially

1:25:20like a zoom in of the one minute the one

1:25:22minute is zoom in of the five minute the

1:25:235 minutes is a zoom in of of the daily

1:25:25so it's sort of like just you can look

1:25:27for the patterns on multiple time frames

1:25:29and in fact we often will you'll look

1:25:32for a pattern on the five minute and

1:25:34then you look for the corresponding

1:25:35pattern on the one minute and the best

1:25:37the best trades are when multiple time

1:25:40frames are aligning and giving you

1:25:42positive signals to buy that that's kind

1:25:45of like the best case scenario that

1:25:46doesn't always happen I will take trades

1:25:48that don't have multi-time Frame

1:25:50Alignment but it's nice when you get it

1:25:53now when it comes to important in

1:25:54resistance most stocks will have support

1:25:57at the volume weighted average price so

1:25:59when the price comes down to the vwap

1:26:01most stocks will will show support there

1:26:04at least for a moment now if there's a

1:26:05lot of selling they might break through

1:26:07that level but the stock will usually at

1:26:09least try to bounce the vwap they also

1:26:11usually have support at the moving

1:26:13averages the 9 the 20 and the 200 and

1:26:17this is true on all time frames the 200

1:26:19moving average is a great level of

1:26:21support on the daily chart and then we

1:26:24often draw trend lines and draw lines

1:26:27around previous prices as I did on this

1:26:30daily chart on wkey to sort of help

1:26:33understand context right so okay there

1:26:36was a little bit of resistance at the

1:26:37high of those candles so that c now if

1:26:40it gets above that level and holds above

1:26:42it we might say that that actually is

1:26:43going to become support and that's very

1:26:45common that prior resistance once the

1:26:48stock can break above it becomes

1:26:51support and then when a stock is below

1:26:53any of these levels it has resistance

1:26:55coming back up into them so when I do my

1:26:58f length classes on technical analysis

1:27:01and how to read Candlestick charts we go

1:27:03into a lot more depth of analyzing all

1:27:06of the different chart patterns that I

1:27:08trade the very specific ways to draw

1:27:11ascending and descending support and

1:27:13resistance trend lines how certain

1:27:15levels on the daily chart are are

1:27:17particularly uh well respected and so

1:27:20there's a lot more depth that we can go

1:27:21into it but as I kind of said at the

1:27:23beginning of this class I want to lay a

1:27:25foundation of the key Concepts that you

1:27:27need to understand and then when we come

1:27:29back to it if you continue taking

1:27:31classes watching either here on YouTube

1:27:33or taking classes at where you're

1:27:34trading you'll you'll like you'll get

1:27:36okay right we already covered on that

1:27:37and now that I understand that we can

1:27:40take it sort of a step further it's kind

1:27:43of I mean it is like learning a language

1:27:44you got the 101 then the 2011 the 301 we

1:27:47kind of keep progressing higher and

1:27:49higher but we need to First lay that

1:27:52solid

1:27:53foundation and at the end of the day as

1:27:56active Traders we're focusing on pattern

1:27:58recognition that's what we're doing so

1:28:00we start to learn when this happens this

1:28:02happens when this happens this happens

1:28:05when this happens this happens so the

1:28:08better you get at developing your own

1:28:11internal database of patterns the better

1:28:15you will be at trading so what I want to

1:28:17do now is I want to teach you what is my

1:28:21favorite pattern and this is the pattern

1:28:23that I would encourage you to practice

1:28:25trading of course in the simulator as

1:28:27you're following the trading plan that

1:28:29I've laid out for you well the the

1:28:31trading plan has been laid out for you

1:28:32in the PDFs which hopefully you've

1:28:33already downloaded but we're going to

1:28:35we're going to I'm going to go through

1:28:36that uh in uh in just a moment okay so

1:28:40this is the chart pattern so we're still

1:28:41on we're still on chapter five here part

1:28:43five on how to set up your charts so

1:28:45this is this is my favorite pattern but

1:28:48this is how it looks when it's forming

1:28:50so the stock starts squeezing up it

1:28:53moves a little higher on the next candle

1:28:55so in these moments the stock would be

1:28:57hitting what it'd be hitting our

1:28:58scanners we'd be getting the audio

1:29:00alerts ding ding ding stock is moving

1:29:02higher that would give us the chance to

1:29:03pull up the chart to look for the news

1:29:05to try to figure out why is this thing

1:29:07moving up what's it doing and then once

1:29:09we figure out why it's moving and what

1:29:11it's doing at that point I'm watching

1:29:13the chart and I'm waiting for a

1:29:16pullback one of my favorite ways to buy

1:29:19a strong stock is to wait for a pullback

1:29:21because here's the problem if I bought

1:29:23this right here what would be my Max

1:29:26loss well I typically would say my Max

1:29:29loss is where the stock just came from

1:29:32so it just came from down here so my Max

1:29:34loss is really far away how much my

1:29:37profit Target have to be two times that

1:29:40that's that's kind of unrealistic and so

1:29:42it's better for me to wait for the stock

1:29:44to pull back and and I always say look

1:29:47there'll be another train that comes

1:29:48around don't worry about missing this

1:29:49train or jumping on while it's leaving

1:29:51the station just wait for the next one

1:29:52so this starts pulling back we get our

1:29:55first red candle we get our second red

1:29:57candle so now we've got a confirmed

1:29:58reversal which is fine and I'm not

1:30:02factoring in right now volume or the

1:30:04macd we're just going to focus on the

1:30:06candlesticks so let's just assume the

1:30:08volume and the macd are favorable we

1:30:10have this pullback here and then we

1:30:12begin to bounce right here right so now

1:30:15we have kind of a double bottom so this

1:30:17becomes our new low so if I bought right

1:30:20here my stop would be the low of this

1:30:22pullback now this this is a more

1:30:24manageable level of risk this could be

1:30:26$100 of risk and then this up here is a

1:30:29$100 of profit 200 of profit 300 of

1:30:31profit you know maybe 400 or higher If

1:30:33It Moves if it moves further and so what

1:30:36we're looking for is that first candle

1:30:38to make a new high so our entry is right

1:30:40there at that cross this is the place

1:30:42where we're buying as that first candle

1:30:44makes a new High versus the high of the

1:30:46previous candle that's our entry spot

1:30:48the low is our Max loss our profit

1:30:51Target is a retest a high a day so we

1:30:53always want to retest a high a day so

1:30:55when I'm asking myself what I'm risking

1:30:57I know my stop is the low of this candle

1:30:59when I'm asking myself how much I stand

1:31:01to gain my target is high of day because

1:31:04when this setup works it goes to the

1:31:05high of day now sometimes it hits the

1:31:08high of day and then pulls back so I

1:31:10want to make sure just to high of day

1:31:12without breaking is enough profit for me

1:31:14to justify the risk of taking the trade

1:31:17all right so now we're back on a little

1:31:19bit of a quiz here all right so now I'm

1:31:20going to back this one out and I'm going

1:31:22to let's see I'm going to do this one a

1:31:24little bit differently I'm going to move

1:31:25this to the left and right so we're on a

1:31:28pullback pattern we've got a stock

1:31:30that's made a nice rally up my question

1:31:32for you right here is what do you think

1:31:34is going to happen

1:31:35next well if we look at this chart right

1:31:38now we've got how many green candles in

1:31:40a row we've got 2 4 6 8 10 12 14 15

1:31:44green candles in a row we're pretty

1:31:46extended and this candle has a little

1:31:49bit of a dogee it's got a a bit of a

1:31:51bottoming tail a small topping tail so

1:31:54clearly it's extended and it's starting

1:31:55to show some of that indecision can we

1:31:58buy here the answer is no we have to

1:32:00wait for a pullback is a pullback coming

1:32:02it might be and let's see we start to

1:32:04get the pullback fine all right so we

1:32:06get a pullback and we get another red

1:32:07candle that forms but notice here now we

1:32:10have a bottoming tail right so when I

1:32:14see this pattern with light volume

1:32:16selling relative to the green and the

1:32:18macd being open I know it's compressed

1:32:21and kind of hard to see but it is open I

1:32:23would say this is now a spot we should

1:32:24be looking for an entry Max loss is low

1:32:26of this pullback profit Target initially

1:32:28is right here in truth this is probably

1:32:31close to a one to one profit to loss

1:32:33ratio but this ends up making a pretty

1:32:36big move now if we look at this stock

1:32:38here the price was 460 so this went from

1:32:40about a low of$ 340 up to

1:32:42$495 this is a really big range when you

1:32:45have a stock that has big ranges like

1:32:48this I will sometimes take the risk of

1:32:50taking a trade even if it doesn't offer

1:32:52The Perfect 2 to1 profit to loss RTI

1:32:53ratio but still nonetheless the pattern

1:32:56there looks pretty good all right so now

1:32:57let's look at another one all right so

1:32:59here we've got BNF this stocks um

1:33:03actually wait is this no just this very

1:33:05similar um no looks like did I grab the

1:33:08same pattern twice um oh this is why so

1:33:13wow it just kept going higher oh my

1:33:14goodness it went all the way from four

1:33:17all the way up to five to six to seven

1:33:19to eight to nine to 10 and so the the

1:33:21caption here if I cap my losers not my

1:33:23winners

1:33:24I want to cut my losers quickly so if it

1:33:26goes down to that Max loss point I get

1:33:29out I sell I don't hold I don't hope

1:33:31this is a big mistake a lot of beginner

1:33:32Traders make but we've got to just cut

1:33:34our losses we've got to get out so I get

1:33:36out I bail on the trade but when I'm in

1:33:38a winner I want to hold as long as I can

1:33:41so that means I don't want to sell

1:33:44ultimately until I see an exit indicator

1:33:48SO waiting to sell until you get an exit

1:33:50indicator can be very difficult for a

1:33:52beginner Trader but it is super

1:33:55important so what does an exit indicator

1:33:58look on a like on a Candlestick chart on

1:34:01a Candlestick chart the exit indicator

1:34:04will be either let's go on the

1:34:08Whiteboard so exit

1:34:11indicators on a Candlestick chart

1:34:13specifically because there are other

1:34:14indicators that we'll get um from

1:34:16another place I I'll teach you about in

1:34:18just a moment so the first is high

1:34:21volume red candle

1:34:24right if we have a high volume red

1:34:25candle we know that's a reversal

1:34:27indicator and an exit indicator if we

1:34:29have um Mac D

1:34:33crossover now if we have a macd

1:34:35crossover or a high volume red candle

1:34:37the reversal is in a way already begun

1:34:39like this is not great that we're still

1:34:41in but it's definitely at this point an

1:34:43exit indicator that we've got to be

1:34:44getting out number three

1:34:47topping tail a topping tail candle and

1:34:52you know slash ad doe a do certainly

1:34:54topping tail and doe would indicate a

1:34:57possible time to exit so these are the

1:34:59most obvious number four certainly break

1:35:04of vwap going

1:35:07down and number five

1:35:10break of 9 EMA again going

1:35:15down okay so now let's look at the next

1:35:17one all right so here we've got a stock

1:35:20that is popped up right we've got a nice

1:35:22little pop a little pull back and we're

1:35:24looking for that first candle to make a

1:35:26new high first candle makes a new high

1:35:28boom we got to squeeze back up to the

1:35:29high now we're going to wait for another

1:35:31pullback all right so if you took that

1:35:33first trade right here if you took this

1:35:35trade at this um white arrow that was a

1:35:38great trade and then if you missed it

1:35:40you look for the next setup so the next

1:35:42setup boom we get another pullback and

1:35:44what's often the case is that these

1:35:46stocks will give us multiple

1:35:48opportunities it'll give us that first

1:35:50pullback it'll give us a second it might

1:35:51even give us a third my rule of thumb is

1:35:54I always like to trade the first and the

1:35:56second pullback and if the stock keeps

1:35:59going higher I'm very cautious continue

1:36:01and trade it third and fourth pullback

1:36:03it can be a little too risky so as a

1:36:05beginner I think it's a good idea to

1:36:06focus on the first two pullbacks now I

1:36:08have a book here called thinking in bets

1:36:10by Annie Duke she wrote this book about

1:36:13her experience as a professional poker

1:36:15player and she talks about learning to

1:36:16play poker from her brother and he told

1:36:19her that when you're learning to play he

1:36:22gave her a a sort of a set of these are

1:36:24the hands that you should play he said

1:36:25don't play anything else just play these

1:36:27and she said well I don't understand cuz

1:36:29I'm seeing other people playing other

1:36:31hands that you're not that are not on

1:36:33your approved list so what's the deal

1:36:34with that and he said yeah they've been

1:36:36doing it for a while you're a beginner

1:36:38you need to trade the basic setups and I

1:36:40think that's kind of the same with

1:36:42trading right take the setups that are

1:36:44the bread and butter that have the

1:36:45highest probability of success so that's

1:36:47first pullback and second pullback don't

1:36:50overstay your welcome so this is a set

1:36:53up that I call the micro pullback so

1:36:56inside that re that P that Suite of PDFs

1:36:59that I gave you that's in the the link

1:37:01that's in the in the description and

1:37:03pinned to the top of the comments one of

1:37:04the downloads in there is that micro

1:37:06pullback strategy PDF and this documents

1:37:09this exact setup it's one that I trade

1:37:11pretty much every single day and it is

1:37:13the strategy that the it's the

1:37:16individual setup I would have you focus

1:37:18on trading if I were getting started

1:37:20that's what I would do it's I would

1:37:22focus on trading this pattern on stocks

1:37:24that meet all five pillars of stock

1:37:26selection and this is where we're kind

1:37:28of

1:37:29combining all of the different concepts

1:37:31that we've already learned so far now

1:37:33we've we're only on uh step five here

1:37:36but we're combining stock selection

1:37:38understanding how to manage risk and

1:37:40making sure we're trading the setups

1:37:41that have the highest probability of

1:37:43working the reason these setups work is

1:37:45because we have a stock that's moving up

1:37:48quickly with a catalyst and other

1:37:50Traders see it moving they're getting

1:37:52notifications from their Brokers that

1:37:54this stock is moving higher the broker

1:37:55wants them to start trading it and

1:37:57they're they're thinking themselves

1:37:58where can I buy this stock where I'm

1:38:00taking the least amount of risk possible

1:38:02and the answer is by waiting for a

1:38:03pullback so it pulls back and then as it

1:38:06rallies higher you get that extension

1:38:08into the move as Traders continue to buy

1:38:11a stock that it's just moving super fast

1:38:14all right so let's look at another one

1:38:16here uh in this example we've got high

1:38:18volume green candles nice we've got a

1:38:21red candle what do we think is going to

1:38:22happen next probably a little bit of a

1:38:23pullback right so we get a little

1:38:25pullback here we dip down light volume

1:38:27pullback and then it rallies back up

1:38:29this is a nice looking trade there's

1:38:31nothing to complain about here this is a

1:38:33trade that I want to take every single

1:38:35day and this is a trade that's going to

1:38:37work the best when it's occurring on a

1:38:40stock that meets all five criteria for

1:38:42stock selection stocks that are obvious

1:38:45are the ones that trade the best so if

1:38:47we look at um wkey and this is a stock

1:38:51that I did trade and did quite well on I

1:38:53finished the day up about

1:38:55$116,000 um it's a stock that is the

1:38:58number one leading percentage gainer in

1:39:00the entire Market it is the most obvious

1:39:04stock so the days I do the best are when

1:39:07we have a stock like this that is super

1:39:10obvious it's got a ton of volume

1:39:13everyone's focused on it and there's a

1:39:15ton of exuberance people are just

1:39:16excited this thing is strong it's got

1:39:19great news and it just keeps going

1:39:20higher and I mean I've seen stocks go up

1:39:23a th% in one day it's it's insane how

1:39:26high they can go when you've got a

1:39:28really good Catalyst and you've got that

1:39:30imbalance between supply and demand

1:39:32which comes from a good Catalyst with on

1:39:35a stock that has a relatively low float

1:39:38all right so let's see um so when it

1:39:40comes to finding the trades I'm using

1:39:42the scanners to find the stock that's

1:39:44moving higher right and then I'm doing

1:39:47my D diligence pulling up the chart to

1:39:49perform my technical analysis and it's

1:39:51really it like I don't want to make it

1:39:54like oversimplified but at the same time

1:39:56keeping it simple is important trade the

1:39:58right stocks and trade just the patterns

1:40:01that have the highest probability of

1:40:07working so now you've got to know where

1:40:09to actually buy and sell and and how to

1:40:11execute that trade so I want to show you

1:40:14using um this platform right here how I

1:40:17actually set up my orders and take trade

1:40:20this is a day where I made

1:40:2298,6 $54.39 and if I haven't said it

1:40:26already I want you to know that my

1:40:27results are not typical I have been

1:40:29doing this for a very long time I don't

1:40:31show this to you because I want you to

1:40:32assume that you're going to be able to

1:40:34do the same thing it's important that

1:40:35you know that I'm credible and that this

1:40:37is real money but but more important for

1:40:41you is that you focus on building your

1:40:44own track record and that you know that

1:40:47this is a strategy that other people are

1:40:50trading it's a real strategy it does