Day Trading A Live Strategy | Jay P | Skillshare

Day Trading A Live Strategy

Jay P, Learn.Implement.Profit

Day Trading A Live Strategy

Jay P, Learn.Implement.Profit

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22 Lessons (1h 50m)
    • 1. Class Agenda

      0:28
    • 2. What is the Breakout Strategy?

      2:01
    • 3. Breakout strategy on chart

      6:25
    • 4. Placing order

      3:02
    • 5. Breakout strategy live: Ticker Symbol (PPSI)

      13:28
    • 6. Breaking Down the Breakout Strategy on (PPSI)

      6:20
    • 7. What is the Criteria

      2:06
    • 8. Finding the Criteria

      4:47
    • 9. Live trade criteria on vvpr full class

      7:11
    • 10. Criteria Trade Live: Ticker Symbol (VVPR)

      3:52
    • 11. Breaking Down Criteria Trade (VVPR)

      5:03
    • 12. 5 Laws of managing Risk

      4:09
    • 13. Cutting losses: Live Trade (Ticker Symbol: LIVI)

      4:33
    • 14. What is Volume, Level 2, And Time and sales?

      1:51
    • 15. How do we use Volume ,Level 2, And Time and Sales

      3:14
    • 16. Live Trade Using The Trifecta: Ticker Symbol (MDLY)

      9:53
    • 17. Breaing down trifecta full class

      6:45
    • 18. Live trade age full class

      9:17
    • 19. P1860238

      0:18
    • 20. Breakdown on stock age full class

      4:04
    • 21. Cutting losses: Live Trade (Ticker Symbol: LIVI)

      4:09
    • 22. Breaking Down: Trifecta Trade (MDLY)

      6:45
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About This Class

What will your learn in this course?

The main goal of this course is to help you understand the live markets. I do this by showing you the strategy I use to trade live, And then show how to trade it with live money! I don't lecture you on what you "could do" in the markets, I explain my strategy, and then show you how I trade live and what that looks like! too many instructors never show you how to trade in the live markets. My goal is to help clear up the confusion that comes with day trading!

This course is a more Advanced course that still covers basics to refresh your trading memory! I recommend having prior trading knowledge before taking this course.

Section 1:

  • What is the breakout strategy? I start the course off explaining exactly what strategy I use

  • Breakout strategy on chart: This helps you understand how you can use a trading platform to find this strategy on your own charts at home

  • Placing orders: The biggest struggle I see a lot of traders have is understanding the basics of how to place a stock order. I show exactly how to do this in that Lecture!

  • Breakout strategy live on (PPSI): What good is teaching a strategy if you can't use it in a live market? See live my thought process when placing trades live!

  • Breaking down Trade on (PPSI): In this section I go in and slow down the trade I just took to help you understand what I was looking at!

Section 2:

  • What is the criteria? This shows you what we look for before ever placing a trade

  • Finding the Criteria: I show you live how to look for stocks that fit our criteria in the Pre-Market!

  • Criteria Trade live: (VVPR): Showing live trade on this stock VVPR

  • Breaking Down the Criteria trade: Showing you again in slower motion what I was looking for in this stock

Section 3:

  • 5 Laws of managing risk: How do I manage risk when placing all of these orders? I will show you what I do to manage my own risk in trading

  • Cutting losses live on ticker symbol (LIVI): show you how I get out of a trade that isn't working out for me

  • Breaking down the managing risk trade: Showing you again in slow motion how I manage my risk

Section 4:

  • What is Volume,Level 2, And time and sales? see what these key trading tools advantages hold in trading

  • How do we use these 3 tools? Showing you what it looks like to add all of these together to place live trades

  • Live trading using Trifecta on stock MDLY: Putting all 3 of these together what does it look like to use them in a live trade?

  • Breaking down Trifecta trade: slowing down the live trade I took to help you understand what I was looking at!

Section 5:

  • Live trade on stock AGE: putting everything together from what we learned from the course to show you all live trading in this final Section!

  • Breaking down stock AGE: slowing down the live trade we just took to help you understand what I saw

  • Final words: Gibing my final thoughts on this course!

  • Free chatroom access: watch me trade live every morning and see what my morning watchlist looks like!

Meet Your Teacher

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Jay P

Learn.Implement.Profit

Teacher

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Transcripts

1. Class Agenda: So starting off this actual course, we're gonna go into what is a brca strategy, placing orders and exactly how to do that, plus also breaking down the breakout strategy on a chart, then I'm gonna place that trade live. So you can see throughout this whole, entire courts how to actually place trades live and what that looks like. Because a lot of times, like I said, we're taught the fundamentals of how to actually place traits. We never actually are shown how to place a trade, what that looks like and what your money does. So let's get right into it, guys. 2. What is the Breakout Strategy?: So what is the breakout strategy and the breakout strategy? We use three different types of styles of trading when actually using this strategy. One is scalping, Suez averaging down, and three is momentum type strategies. We talked about breakout strategy, term a stock that is going to break a previous resistance level, to go higher to the upside, to rebuy before that level and sell after that level. So when using these three different styles, first we're about scalping. That means I'm taking small orders between the bid and asked him buying and selling and very fast movements to when I talk about averaging down, that means I'm gonna buy at a certain price. If that stock drops, I'm gonna buy again that lower price than changing my average cost. And when I think about momentum strategy, that means also I'm looking for volume in a stock. That means if people are trained that stock, any momentum being pushed in that stuck it, there's no momentum in a stock. There's no reason to actually get into a trait. And that is what the brca strategy is. Another key thing that we look for is Overview up, view up is a volume weighted average price of a stock which tracks volume plus price from historical data than to show a line, it's actually on a chart. Now when we go into the next lesson about going into charts, I'll be able to show you this exactly by one to help you understand exactly what different styles are actually in this trading scheme or a trading strategy when talking about criteria, when you're stuck full, that's actually under a 100 million. We need the volume to be over a 100 thousand. We need there to be news on a stock. We need to start to be a previous mover. Plus we also need it to be over the view up. So there's a five-part criteria when actually getting into a trade. There's a reason why we take the breakout trades. We don't just jump in at any stuff that's moving. We defined y, those stocks are moving. So the breakout strategy is simply put as this. When I'm in a stuck, I need to be kept up and hit a certain resistance level after it hits at low and ESA drawdown. And when it drops down a bind at that level, looking for the bright pass, that previous resistance level. And when it breaks set, that's actually I'm going to sell my position. That is what the breakout strategy is. So now it's going to look on a chart and how can I actually trade that? Let's get right into it, guys. 3. Breakout strategy on chart: So now we're going to break down the actual breakout strategy on a chart so you can see exactly what we're looking for when it actually comes to getting into the stock. Dina keep in mind is we're actually taking three different type of strategies as we talked about our different styles when taking this one trade. So we're taking scalping type strategy and averaging down-type strategy plus awesome momentum type strategy. So there's different variables actually come into play when looking to find a breakout strategy. So this is on thinkorswim platform, this tan line or here is actually a view up level, the volume weighted average price. And these are all candlestick. And so when you see candle sticks, right here on the bottom is actually the volume. The volume shows how much shares are being pushed in this candlestick. And as we can see, these are one-minute candle sticks. And real quick, what does that mean? If I go to my top of my chart, if you've got the top of your chart on thinkorswim. Now if you click on the one-day, one-minute, different time-frames will actually pop up. And we are day traders, so we use an intra-day chart. There's also daily and there's a custom. But what you wanna do is actually go to intraday charts. And you can do one day, five minutes because we use one-minute charts, five-minute charts, 50-minute charts all the time when we're ever day trading. So if you go to a five-minute chart, each one of these cantos represents five-minute of trading Simon. So this one engulfing candle right here is five minutes of trading time. So we can actually see that five minutes a train time or in this one candle, it means that 1.5 million shares traded in that five-minute candle. So let's go back to our woman charter quick. What I'm looking for is I'm using support and resistance. The simplest concept we can understand when it comes to training. So honored about support and resistance. I mean, this we can see that the stock has been getting up from about it looks like it closed the previous day at 157 and started getting up around 801 from $1 to 241, all the way hitting highs of 292, right? This talk was moving. So first off, we know the stock is actually a mover. So now when I'm drawing resistance lines, I wanna first off, make sure the stock is actually over the view up. And as you can see, this is a view up Lehner here. So it's been falling as V applied for a good amount of time. So right here we can draw the first resistance level. And whenever you're drawn resistance levels, you draw out what it hits. Now when it closes, mechanicals is out here. I'm not gonna draw resistance right there. I'm Sharon outward level at tapped. When I said open and close, what does that mean on my screen I have two candles. You can see a green one and you can see a red one. Whenever I'm talking about an open and close of a stock, this is what I mean. When a stock opens on a green candle, it opens at the bottom. So whenever the stock makes a new candle, it opened at that level. At the top is where that candle close debt before making a new candle. So it's the last price a hit before it closed this top wake you'll see in candles as where a stock hit. So I mean it hit this level but actually drew down to this close level. And on the bottom is the same thing or they're stuck hit after the stock opened. So if it opened here at this level right here, it hit down here, then gap in all of that up to this high, where a hit then closed here. And now the red candle does same thing but only reversed. So it opened up here, but then it closed down here because it's a red Kino means going to go to the downside. So it's gonna close on the bottom. And then down here is where the stock hit. At the top is where a stock gets up to after opened, but it never broke and it get down lower to this previous level down here. So when I say open and close, that's what it means. So let's get right back into the video. So now when we come over here, this is the opening of a stock or the stock market opened at 930. And as you can see, there's what, 3.2 million shares being traded in this one minute Canto, This is woman at training time, the stock actually opened up at 3.3.2, went all the way to 360. Then dropped all advected 3-20 before actually closing at 3.2.4. The reason why don't try the first five minutes of an openings because it's so volatile and there's actually no pattern setup yet. Now if we go over another cantos, another woman at Canto, as you can see, a dropped and broke that view up level. So now it's under View up. I don't want to treat it if it's under View up what the breakout strategy, I'm putting a resistance line at the most recent resistance level. So out of all these resistance levels, we can see that this is the most recent, hit this level and then started galloping down. So that's what I'm looking for. I'm looking forward to hit a level, then you start getting down a good amount of price. This is the first five minutes of the actual markets when I'm seeing this, it's still under View up. What I'm looking for in an actual break-up strategy is first off, if it goes under view up to actually break over that view up level. But keep going. We can see it's still under that view up. But what happens is we can see as break and view up. And it started getting up closer to that previous resistance level. So as it started getting all the way down at Chrome back up. And then once you start tapping this previous resistance level at 336. So when it's doing that, my entry is when this doc taps that 36 level or that previous resistance level and then starts to draw down once it taps that. So as you can see right here, is where it actually tap that level, 3.3.5. And so as soon as I see it's tapping that resistance level, that previous resistance level, the most recent one. I'm looking for a drawdown, meaning a sell off. And so I tap over, we can see a sell-off happened right here. We can see it sold off all the way to through 16. I went to see a stuck brake, the view up level, then sell-off closer to that V up level again. So if it breaks of you up, I want to sell off down back towards the view up my entries at this dip, right? This dip levels were I want to actually enter this specific stuck because when it dips, as I can see right here, if this doc pushed up Ali from 3.3.30, if someone had a 1000 shares, they just make them into dollars. So what are they gonna do? They're going to sell off that stock Y because they're taking their profits. This Kenner hears people taking their profits. And when I see this, I'm actually going to buy into the profits, right? I'm find people's profits. So as they're taking their profits, I'm actually buying and getting into the stock. So when that happens, you can see right here, the stock than jumped from 316 to 3-4-5. And that's the breakout strategy I'm looking at getting before it breaks a previous resistance level. So as we can see, it corrode down. I was patient, it taps at 3.3.5 level, then gaps down at 316. We're actually going to get into a tray because the view up is a big level of support. So I'm going to get it in that trade. And as I see this and now gaps up, all we'd have 3-4-5. And if I'm at 316 and I don't want to surmount for that day, I'll take my profits because a lot of times even though it gets higher, the next most recent highest resistance level is here at 350. The $0.5 mark and a whole dollar mark, or the biggest resistance levels in trading. So I'm gonna do is when that stock does break this previous resistance level right here, I want to take my profits as it's getting up. That's a break it down on a chart after watching it live and showing the breakdown on that live trade. This is how you actually look at it when the markets closed on a chart. And now it's actually going to the criteria of how to find the breakout strategy. Let's get right into it, guys. 4. Placing order: So before going into the live breakout strategy, let me show you exactly how to buy and sell a stock because I use hotkeys when it comes to training. But I want you to actually follow and understand how you can buy and sell a stock. Let's make it really simple and really quick. Let's go to our actual montage window. So, so what do we actually use when it comes a dashed trader? And most brokerages you use will actually look like this, because the main things we need are all in this bottom part right here. Whenever we want to get to a stock to make sure we actually have the ticker symbol in that montage window. So as you can see, it says AGE, This is a stock that's actually the chart right now. So AG is our stuff we want to trade, right? And as we get to this on-target lesson, you'll understand why we take trades or what sucks we actually need to get into. Now if you come down here, you'll see it says shares. If I want to take a 100 shares, that means that every $0.10 move will equal $10. Now if I want to take a 1000 shares, that means that every $0.10 move will actually equal a $100. Now you want to take 10 thousand shares every $0.10 move is a $1000, right? So that is actual share size. Now say I wanted to get straight on this doc right now, as you can see on the left-hand side is the bid and on the right-hand side is the Ask, the bid and asked me if I want to buy to somebody to ask is a seller's people who want to sell to me. So I want to buy at the ESC. So as you can see, it's 847600240 going back and forth, back and forth. So what I wanna do is actually place what love I want to get into. So if I want to get in at the 240 level or I want to get at 250. I can actually put 250 and then I'll put exactly how with or to actually be executed. I always use a limit order. And 99.9% of the time we use a limit order. A market order means that you'll actually get into a stock or place a trade and it'll execute you at whatever the market once execute, right, so that's what a market order is. So let's put a limit order. So as you can see, the stuck stepping up higher and higher. So let's put it actually at 268. We'll hit by a 1000 shares. Whenever you hit by actually goes as executed order. So if you have a 1000 shares, you can see all the stocks moving. So stocks move it higher and higher and higher. And that means I'm actually into a stuck. This is the unrealized position. And it says unrealized and that's what you're in, money you're making, but you actually haven't taken that money out. So now as you can see them, when stock moves higher and higher and higher, i want to exit position has certain price. So what I'll do is go back to my order window and I'll type in say 280 or to 85 is I want to get out of, So I wanna get out to 85. I wanna hit cell at that level. So I'm gonna hit sell at 285. So stock needs to actually hit that little at two 85 As you so now it actually goes to your realized position. I've already actually taken a trade today. So that's why it says 800. But whenever you sell a position, that means you're actually going to be out of the stock. You're now you're out of that stuck on that level and advocacy of stocks moving higher and higher and higher and higher, like this thing once a move away to $3.4 dollars, That's how you actually buy and sell an order. So it's actually good to live trade. And this video is a little longer because actually what you'd understand them break it down by made it really simple so you guys can follow along and understand how to take a trade live. So let's get right into it guys. 5. Breakout strategy live: Ticker Symbol (PPSI): So now I'm gonna get right into aloud trade when starting off this course, I want you to go into exactly what it looks like on how actually trade live. And then from there and each section break down how I get to the point to where I am now. So we have a stock PPS psi, and its stock is a daily gaps. And so I'm going to do is actually draw my lines on the day. And what I'm doing is actually I put TD Ameritrade on the right-hand side. So whenever you guys are looking at the actual right-hand side right here, you guys will actually be looking at the thinkorswim platform. So you guys can see both. I recommend that before starting this course that you actually download it if you can't, that's fine, but there's better to follow along with me so you guys can actually understand and really grasp these concepts will also be using Canvas. So first I'm actually gonna be looking at, is looking at the flow of a stuck. So I'm actually going into a stuck. I need understand the flow and if you go to fin viz, they can use for free. So I'm gonna go here, I'm Pope fin bizarre should go to p PSI. That is a stock symbol or ticker symbol. So go to PPS psi, I can scroll down and see what the float is. A short flows that 3.2 million. So it's a low flow. Low-flow means a stock will move a lot faster and as you can see, the stock is getting down faster, ready. So when it comes to the breakout strategy, what are we looking for? And just, you know, this is my order window right here. Whenever I'm placing order, it's gonna go into this box and then fill down here. So you guys can help understand that right now we have a stock selling off like crazy. It's dropping lower, lower, and lower and lower. So our breakout strategy first stuff needs to realize that it's over the view up level. I don't know what the VOPs is showing on this monitor, but if you look over here at thinkorswim, the view up is as tan line right here. So as we can see on the first one-minute candle, the stock RA dropped below the view up, which is a bad or negative sign when getting into a tray, whenever I want to take a trait on the actual breakout strategy. And these would be over that view up level. Otherwise, I don't want to take the trade because investors believe that when it stuck is actually under the view up. It means it won't even show any upside potential because under the view up means you want to sell the stock if it's over the view up, it means that once to actually be a bullish movement, which bullish means upfront. And now when it's under the view up and wants to be a bearish trend, which is a downwards trend. And so as you can see on the thinkorswim platform, the stock is moving under the view up and it's tapping that level. Now I'm going to break out strategy. It needs to break first off past that view AP level. And also it needs a break past these previous resistance levels. So if I draw it out here on thinkorswim, by the way, if you want to draw your own lines, you can just right click on your mouse, go add drawing, and actually hit this little price level center here. And if you want to actually duplicate that, you can hit spacebar and it'll duplicate that. But for right now we're going to draw that line, that Greenland R3 here. The green line indicates I went that stuck to actually break up of that level or at least tap that level. Then drawing back down close to the top level for it to actually break past 337 level. So I hover over this actual line is at 337 level. So if I want to draw on this level over here as well, my levels are up here, right? This is my levels right here. I want to start to actually break this previous level. And nothing to caution you with is a $0.5 mark is a biggest resistance level you'll see in trading a lot like the $0.5, like 350, 250, whatever that number is, the $0.5 is a huge support and resistance level. So just like the vi Up is considered support level that they want you to understand about VOP o is at V oc tracks past action. So we talk about technical analysis of view up levels, actually tracking past historical data on a stock. So it's not like an SMA or EMA where it's actually tracking the future price movement or what a stock would do. It's more so trekking historical data to price and volume to actually create this line that we see. So if we're looking at a stock right now, we can see that we don't want to any trades. Alright, I'm going to take a trade on anything right now because there's nothing to actually trade. The stock has no pattern or no setup. What I'm looking for a specific setup has to do also with the phenotype that I'm looking at when I'm actually looking to get into a stock, I'm looking at specific candles. One candle being the engulfing candle, the green engulfing Kindle. I wanna see a green engulfing candle shoot up to that 336 level. I want see it tap and then create DOJ Kindle at that on the one-minute chart. When I talk about one-minute charts, that means that each of these kinesics that you see represent one minute of trading side. Volume are here, isn't the amount of volume of people traded, but the amount of shares traded. So these volume bars that you see, this red one, you can see first off, a huge topping tail candle right here. And then you see an engulfing candle or running golfing candle plus UC also a dodgy almost DO G-type kinda, but another topic Kindle as well. And so now we can see that stuck is starting a gap up again, right? Volume is being pushed but not enough volume as momentum traders, we trade volume. Why? Because there's no volume in a stock. That means there's no reason to be in it because nobody else is actually trading stock. So what I'm looking for, like I said, it's for to tap that 336 level. Now, look to the right over here, you can see that it's starting to break view up, but it's not holding overview of this candle might look like it's going to woman at Chart. This is a woman at char over here as well and thinkorswim. But as you can see, it went overview up but never closed. What about clothes on a candle? That means I want the stock to actually, if it breaks that view up to hold view up, I don't want to break view up instantly and umbilical Kalman jump into stock now know I want to see it break up and then hold on a new candle. Because as of right now you can see there's WhatsApp and to tap right here on the view up level, right there's two taps are ready and this stuck, tried to push past few up. But now it's starting to sell off lower, lower and lower. And as you can see, a lot of volume is coming in. So as I can tell, I really don't wanna get into the stock right now because personally there's nothing that it's doing, that it's good to sell off candle. It's a sell-off stuck on the other side. I see moving up right now is actually WWR, but it looks like it's halted right now. So right now you can see is this PPS psi, right? But lots, I'm going to actually trading, you're looking at these gaps scanners and so Gaps getters, or these two scanners are here on the left hand is an NYSE top gainers, on the right hand is a nasdaq. So I actually switched my chart to WWR. Would you see a stock is actually halted. So this is a very fast moving stock. Holders stuck me that there's so much volatility of so much volume being pushed into a stock that actually pause it. And there's different codes that they may have been a little more technical we don't need against you right now. So we're gonna go back to P PSI. What I'm gonna do, I'm gonna keep watching his stock would continue to sell off lower and lower and lower. All kinda lose interests because there's no volume being pushed into this stuck. I don't actually want to jump into anything because there's nothing to actually get into. There's no pattern formed because you want to jump in right now and have no pattern or no plan or no trading plan. You're asking me a gambler and trading because as you can see right now on the right-hand side, on a thinkorswim platform, it's starting to break. It wants a break that view up level, but it's not actually breaking it right now. As you can see, it's kind of playing with that level right now. So again, a new kindle form, but again it broke under the VM level, but it hasn't closed yet. So now we can see it starting to break hired higher on view up. So I want to see this movement right here, this moment with a good amount of volume coming in because more volume there is to upside, the stronger stuck is to actually break out. Because right now I'm gonna change this color to a green. A green line. So I'll get into this trade. I'm not going to just jump in right away. I'm waiting for to tap that 36 level. As we can see, it's starting to curl up higher and higher and higher. So look for that, curl the 336 to actually tap that level. Then when it drops, I want to actually get in on that dropped the trade almost like a dip trading with my strategy. There's three different mentees will be go into its averaging down, dip trading. Plus it also goes into the breakout strategy, which is momentum type strategies. So as you can see, it's about a tap that 33611 wine a break above that level. So I can see that the next level it wants to break, we'll be up here. You can see I've got three almost 350 level, right? The 350, so right now it's stepping up higher and higher and higher. So I'm not gonna take a trade. Yeah, I wanted to get tapped that level. See, just as it's doing right now and stay at that level. Then draw down a little bit. We're on a new candle. And when it draws on a new candle, that's when I actually want to get into my trade, then place that trade, see if it actually holds that level to now break over 336 to 350 than go higher and higher and higher. As you can see, there's a huge sell-off comment iterate now. So I'm going to do is actually averaged out my position. And as you can see, my ordered got accepted but enough filled. That means there's a lot of volume coming in, so I'm gonna take another order and now my orders actually fill out, took a 1000 shares on the stock. Now if a stock drops even lower, I would take him on the ticket, 1000 more shares. But also look into that break. I actually want to break the 36, so I'm actually going to get it right before that level as well because RE tablet level and drew down. Now I'm actually looking for that break of three 36. So I'ma wait patiently on this stock right now. So as we can see, it's still starting to move up higher and higher and higher. And look at those drawdown kinda right here, right? This is a drawdown can I'm looking for right here, right? I'm gonna get it at that level. So now in at 2 thousand shares on the stock, and when average down even more if it goes to 3-20, but my exit point is around 310. So now you can see it starting to curl down. It's wanting to push down low. The sellers want to push the stock lower, lower, and lower. As you can see, oh, there's light volume on this red candle. These two green candles had a lot of good positive volume. This rec, you know, has less volume on it. So now let's take another averaging down position to where I'm going up by 1000 more shares. So now my average position is actually average cost will be at three to four. That means that my breakout level or my actual evidence out would be around 314 to 37. But what I'm looking for is this the curl down like this to actually then break pass at 336 level and my exit will actually be closer to 350 now because that's about 300 sent move. So as I'm doing is you have to be patient in the stock. You can't just jump in and just wanted to work immediately. There has to be patients here to see actually people wanting to get in. So as you can see it start to push higher and higher and higher and higher. As you can see, I'm gonna pick up a 1000 shares though at three forties, almost guess scalping as well. When we're in this trading world, I do a lot of scalping plus average down a momentum type strategy. As a stock moves higher and higher and higher, you can see your P&L move as well. So write down that break on the ticket 1000 shares off. And as you can see, my realized, I actually, I actually bought those shares. See, I'm using hotkeys, so I'm gonna take off with 1000 shares at that level. So now that my realize it's actually a 115. So now my fur to get even higher to that 50 level. So it's a lot of resistance is coming in, which isn't a good thing to see because that means once a pushed down even lower and might get stuck in this candle. So I'm going to take off another 1000 shares. So now I'm up 3.3.5 and right now I have another 1000 shares in the stock. The stock starts at drawdown pests, the 326 again, that's showing weakness in a move and I don't want to be in a week MOOC. Now because he's starting to get higher. But you're gonna see there's at 350 level that it wants to actually break. So now I'm actually can take up my last 1000 shares because it's a lot of resistance at that level. So when it comes to the breakout strategy, we're looking for these moves were looking for this gap up to a previous resistance line, then the gap down by about that gap down on the actual dip trade, then for it to break even higher pass that previous resistance. And like I said, 350, as you can see, is a huge resistance level. So when I'm actually wanting to get into a stock, I don't want to be in at that level. That has to do with resistance because I know the stock can go higher to through 60 to 370. It can go all the way to $4.5 dollars. I understand that, but it's also I just made about $510 and the span of three to four minutes because $500 a day if there's a $100 thousand a year. So if you're able to actually do is consistently to remake it $500 a day. But actually understand the strategies because as you can see, the subject's gap down all the way to 3.2.2. And if someone who's a new investor, they're gonna hold and hold that stock. Wanted to do this, but it's not actually going to be good for them because they're gonna get stuck in a trade like this. When he was like in a trait like that as a new investor, you, it makes you not want to trade because it's basically a bunch of bigger investors placing their orders to push you out of a stock. And when they do that, you can see exactly what happens. They'll push you out of a stock as a newer investor dropped all the way down, that this is a 30% drop. That's a huge drop. If you've got 1000 shares, that's $300. You just lost in a span of seconds, right? Because bigger investors actually dropped that stock. And as you can see, the stuff has started a move lower and lower and lower. A lot of times the people in trading, they want to hope the stock goes higher. Because as you can see, as I said, 350 is a big resistance level. So when I'm looking at beginning as stock thrifty, I'm looking for it to break that level, yes. But it shows too much resistance towards not actually breaking that level. It's kinda like playing with that level. You can see that stock wants had dropped even lower. So this was a live trade. Now let's go into the whole, entire course of how to break down how I got to this point. What am I looking at when it comes to candle sticks? What count? 06:00. Am I looking for the volume? Why am I looking at volume? Why am I looking at float? Why do I actually break down the chart? How do I break down the previous resistance levels? How do I find those levels? How do I understand those levels? I wanted to show you guys exactly what it looked like a trade lives. You can understand that we're actually shown you how to trade, and I'm actually going to show you how to place orders as well. I'm using hotkeys right now. But when you're buying and selling a stock, how does it actually look to hit by? And so my goal is help you understand why albeit buy-in so where to hit buy and sell and exactly how to do that. So now let's go into breaking it down without the market moving on how to break it down on a chart to find the view up strategy before going into how do we even find these bric at levels? Why do we even trade this? What I trade the stock? What was the reason for treating this specific star? Why did I know to get into the stock, what was I looked at for the criteria we need understand when actually getting into trades, how to find the stocks, how to build that route scene of actually be able to trade in the morning time. Having a consistent routine is the most important thing when it comes to training because we had to treat it like a job. Yes. You can work one to two hours a day or even sometimes, as I just showed you, five to 20 minutes, depending on the day, but don't think that it's all trading is, it is a business and if you treat like that, you'll be able to actually make money in the markets live to where you're making a hundred, two hundred and five hundred thousand and two thousand dollars a day. But understand that you're not always making that every single time. So now it's going to break it down, what I just trade it and how you can benefit from that. And what I'd like you to do is actually go into your thinkorswim platform if you have an open and start bringing it down with me as well. So you guys can see exactly how I do that and why we do that. So let's get right into it, guys. 6. Breaking Down the Breakout Strategy on (PPSI): So getting into this whole answered course, whenever I do a breakdown on a trade, there's always five keys we looked for whenever breaking down a stock. The first one is that I follow my strategy to how much size that I take or how many shares that buy and sell. Three is where did I buy, and then four is where did I sell? And then five is, what can you learn from this? What can you actually get out of this and grasp these concepts? So let's get right into it guys. So first we look at what actually when we took this stock is did I follow my strategy? And if you know, if you watched the first video, the strategy goes into, it, taps a previous or most recent resistance level. When it taps at level a new kindle forms and draws down and I buy it that level. When I buy it that level I'm taken by size. And then if I have to average down, I will average down. And when I average down and looking for it to break than that previous resistance level. So let's watch and see. So as you can see, the stock is right now hitting this resistance level at 336. There's one temperature here, once separate here, and also multiple ones over here as well. So that's the first my strategy, uneasy you make sure actually taps at level. The next thing is I need to look for a drawdown on a new candle. So as, as drawdown happens, I'm actually taking my first 1000 shares. So I tried to get thousand shares there but they actually didn't get accepted, which means they didn't get filled. My order didn't get filled, so had to cancel the order and place a new order. As you say, I'll place a 1000 shares on PPS psi for average cost of 325. So as you can see, a stock still moving up and down, I started to average them up position as well as look for another drawdown of that candle. So I started a gap up. You can see the P&L moving. So right here when sorts of dropdown, you actually see me average Dennett's position on the new candidate forums. I wanna see a drawdown right here. So my smart strategy states that I wanna see a drawdown on this candle. So as it starts to drop down, you can see me take another thousand shares. Now my position is that 2 thousand shares on the day and my average cost change at 326, I took another 1000 shares, averaging down my position, making my cost averaged change by $0.02. As you can see, the average cost now is at 324 as a stock is drawing down. And also if my average cost is at 324, my stop-loss would be at 314, As you can see it close tab close to that level, my stop-loss is always $0.10 below my last averaging down position. As I get to a stock words at 324, I'm looking for a breakout to the upside. So my strategy states that if it hits a previous resistance level, which you can see over here, it draws down by at that level. And so now I'm looking for it to break that level. So as you're watching this stock move, you can see it does exactly that. And so as you can see right here, as stock has started a gap up higher and higher and higher. Look at the P&L right now. The PNLs already at 170. And as it breaks that level, about 336 level, you can see the Pinel going up and up as well. Now it's a 440 on 3 thousand shared with peanuts at 440. So what I did is I actually wanted to take off a 1000 shares, but what I actually did, it's used my hotkeys to actually buy a 1000 more shares. I'm in a position now if my average cost changing to 327 for 4 thousand shares, I'm still up to 20 or 260. I'm looking for is that break right there to actually take off at 1000 shares. So as you can see right there, I place an order to actually sell a thousand shares. It looks at the price that film that was at 342 to sell 1000 shares, and I sell it 1000 shares. You can see that my unrealized as to 55, my realized is 115 with 3 thousand shares left in the position. So what I'm looking for is actually to tick off a 1000 more shares. And as was breaking even more, I took up another 1000 shares. And now you can see my, my shares at 2 thousand. My realized that 200 and my unrealized at 190 as a trade continues to go on. You can see kinda start playing with these levels. So what I was looking for is it to break closer, there's 50 level now to tick off my last 2 thousand shares. So as I can see, there's a lot of resistance at that level. Samadhi realize that 250 and my realized that to hundreds. If I take out the last 2 thousand shares, I'll be up 450. So as it's getting a little higher, I will think of my last 1000 shares of that, that 44 level. So as you can see right there at 40, took up another 1000 shares. So my unrealized is one-to-five am I realize it's 335. So what I'll do for now is just holding only a 1000 shares. I want to see a break to have 50 level. I don't wanna, I don't want to break past that level IS won't see a break to that level or get close at level before taking my last 1000 shares off. So Susan's can't start forming. I saw at 47 hit SR, There's a lot of resistance here at 48 on the level two, as you can see, one fifty five, sixty six, sixty four, add two zeros to that. So that's 15 thousand shares at 486,640 as well. Sixty four hundred and thirty seven hundred, two thousand, thirteen hundred a lot of cell pressure at 48. So as you can see, I have a 1000 years left in the position. I have 105 on their unrealized mean the amount of money that's still in the stock. And so what I did is I took off my last 1000 shares as it started to break that level. So I'm talking about last 1000 shares and I can see my realize is 5-10. So my average cost change about three times the first time I got around 28 and that my average cost change at 24. And then my last average cost was at 327. I had 4 thousand shares when I went to so I actually changed my average cost 227. So as it broke that level, I took off 2 thousand shares as it broke that premise resistance level broke debt level identical. My last 2 thousand shares around that 40 to 48 level between that area, I took up about my last 1000 shares and that's actually the stock. So that fall my strategy, yes, of course. Where did I buy and where did I sell? I bought in at that dip when people were taking their profits. And what Broken Sword of $0.4,840 range. In that 48 range, I took on my last 2 thousand shares, having a realized about 5-10. So what you can learn from us is the fact that whatever to any single trade, you can always find the same strategy doing the same thing. I don't try a different strategy every subatomic into a trade. I'm trained this one strategy and if it doesn't set up for me, I'm not gonna get to the stock. So what you can learn from this is understand that we take one strategy using my strategy as well. It works when you know what to look for, and it's not a 100% guaranteed, of course, right? Nothing is a 100% guaranteed. But it gives you a higher edge and probability in the markets when ever you follow these strategies, when you see these levels hit, you, buy it, where you need to understand where to buy it and understand where to get out of if it's not going your way. You can buy these levels are someone a break set level to actually so, and that's why you're taking a trait. Deltas haunt our course. Every lie tree I take, it all looks the same. It taps a previous resistance level, it draws down, I bind it that draws on OF that break. I sound to that break. That's my strategy over and over and over again. So when you understand that what you need to learn is that when you have a strategy set in your ways and have a routine, that's when you actually become profitable in the markets. And that's how I can become profitable in markets where you can make 510 two thousand, ten hundred dollars a day. Understanding these strategies, understand how to break it down. So this was a live trade using the breakout strategy. 7. What is the Criteria: So before going to any single trade, there's a specific criteria that we actually have to get into that trait. The first step is that we need the actual volume in a one-minute candle to be over a 100 thousand, meaning that each one minute candle has a 100 thousand and trading volume or shares being pushed in before getting to a trade to I didn't mention the actual flow is under a 100 million, a float being the number of shares available to the public to be traded back and forth from buyer to seller. Whenever you have a company, there's always insider traders, but people who own shares of that stock privately to where you actually can't buy and sell those shares. Now the remaining shares out of those outstanding shares is the float. The float is what? The supply and demand of a stock. I mean, it's actually available to the public to trade mean us, we're actually able to trade shares of that specific stock, and that is what the flow is. Now three, we also know mentioned there's news on a stock. Is there a reason why a stock's actually getting up or down and why is it doing that is a good or bad news. That's number three in the criteria lists, also needs to be over the view up, meaning the volume weighted average price. Because as we know, the volume weighted average price treks historical data, volume and price. It's different from an SMA, which is a simple moving average plus an estimate and moving average. Both of those can track a trend more closely, but the V up as well, a lot of day traders use to actually buy and sell stock. It shows minor trends in a movement. So if it's below the view up, it means some Meyer downtrend. If it's over the view up, it's a minor upturn. So a lot of day traders actually look at this indicator. And so one of the most popular indicators you'll hear in training. So that's number four analysts. And these would be over the view up level, the volume weighted average price. And number five, and lastly, is also needs to be a previous mover, meaning that the stock is actually gapped up 234 $5. And previous dates, meaning of today's October first if two months ago to stock have a same gap up movement to where it kept up three to $4 in a single day or even 2.50 has actually been a previous mover that shows momentum in that specific stock or specific company. And those are the five things on our criteria list. Before actually getting into a stock, we need those five things to match up to actually get into a trading position. So now let's get into how to find that criteria live. Let's get right into it guys. The next meeting. You 8. Finding the Criteria: So now we're in the pre-market. What does it actually look like to find a stock that matches our criteria? How do we even find that for actually we're using Yahoo Finance, fin V's and thinkorswim as well, plus the CME G dash trader Pro. Open them now to actually follow along and see how I find these different things. Let's get right into it. So as I talked about before, on the right-hand side, we have thinkorswim, right, left hand side we have the dashed trader Pro, which is powered by CME G. And as you can see, we're going to use in these two scanners, the NYSE top gainers plus the nasdaq top gainers, munis stocks move the most on each one of those exchanges. So now what we're gonna do is actually searched by volume, because as we talked about, our criteria fits that we won't look for volume in a stock if there's no volume or shared being traded, we don't wanna get into a strategy. So we're gonna do is actually tap this right here and find the highest volume on. So right now, oh, PTT is a highest volume. For looking at it, we can see the pre-market gets already get up to 440, but dropped all the unto 45. So we're actually looking to get into a stock though to make sure it fits our criteria. So we go to Think or Swim. I can type in OPT D and we can find a view up levels. So as we can see, it's under the view up are now it's kept up over the view up but didn't really hold that level. As you can see, it's red, kinda broke that view up. So already I'm not looking at the stuff I might put to this side. So now if I go to fin viz, let me actually type in o PTC. So o PTT. Now we're gonna go down. You'll actually see that I can see the float, the shares float the flow of a stock is 18.4 million, meaning that, okay, it's a pretty low flow. It has potential to move higher and higher and higher, a lot faster. But is there any news on that stock? So then again, I can now grab Yahoo Finance, or sometimes I can even scroll down here and see if there's news or not. But let me go actually bring up Yahoo Finance. You guys can see this on this as well. So if I type in o PTT, which is its ticker symbol, as you can see, it's symbol, how you actually search accompany. If I scroll down, I hit news right here. The most recent news was about two months ago. Mean it today the stock is getting up on nothing. It's stepping up just because people are willing to put a stock up. There's no real reason why the sucks actually moving. So I'm going to move on next. Let's actually go into the next highest volume. This is on the nasdaq top scanner. So we have SUN w. Now this is a great stock. It's kept up Ali from 310 to about 520, right? So we can draw a resistance level right here, ready? So it's actually going Think or Swim as well as u and w. So as we can see, this is a great stock or now has a lot of volume being pushed into it, as you can see right here, the volume down here in each one-minute candle, looks like it's over a 100 thousand. Right here is a 188 thousand over a 160 thousand Ali's candles showing actual move and actual pushed to the upside right here. The first kinda at eight o'clock actually had 475 thousand in volume. So this is a good sign, actually look into a stock. So after I find the actual volume on a stock and it's actually over a 100 k. What's the float? Right? So as we bring up fen visit and let's go to flow. If I type in SUN w, what is the flow of a stock? And as you can see, it's a low flow as well. It's under a 100 million. So right now the stock is fitting all I criteria levels. Now if I go over here, we can see it's overview up as well. The SEC is over the volume weighted average price. What has to be over the volume weighted average price on a woman it candle, which is so that's also three things. It's RFR criteria. Now there's two more. Does a stock actually have news today? So if I bring our friend viz again, let me scroll down and see if there's actual news on a stock. So as we can read, Sun work announces 10 million in quarter three project wins, meaning there's pretty good news on the stock. If I click on it, it'll actually bring me right to Yahoo Finance. Fan vids and Yahoo Finance work really well together. So if we can actually go ahead and read, because it's actually good news on this specific stuck. So now if we bring this back over and actually go to this specific chart, we can go and see on the one-year, one day, whenever we go to look at the previous movers, we go to a one-year, one-day chart. So if you go to Think or Swim, you can actually click down, hit one year, one day. So we're gonna click that and see if the stock is actually been a previous mover. And as you can see, the stock has kept up all the way from 3-3 once. Now to 850. The SEC has been a previous mover. So this talk is actually all that criteria levels, one as trading over a 100 thousand shares and each one minute Candle in the pre-market, two has a float that's under a 100 million to flow of a stock is actually under a hundred million. Three, it has positive news. Mean there's actual news pushing stuck up and investors want to get into a cycle, has positive news wanting to break at higher and higher and higher. Then it's also over the view up, as we can see on the one day, one minute, the stock is actually pushed, pass over the view up on a woman it Candle in the market, the stock is still over that volume weighted average price level. And lastly, it's also a previous mover. So if you go to one year, one day, we can see it's moved from 330 all the way to 850, right? It's like moved from 330, the 850. So that is how you find a criteria in a stock when looking for the breakout strategy because it fits our criteria. 9. Live trade criteria on vvpr full class: So I've actually been trying this Morningside by actually get into a criteria trade, as we just talked about, the criteria that we look for in a trait is volume over a 100 thousand shares in a single woman it candle flow under a 100 million innovations overview out previous movement has news on it. So we're never actually gotten stuck. Vdp are which I've actually taken a couple of trades on posing the pre-market. So as we can see, that stuff just had a huge drop-off. And if I want to bring this over, I once with a float is on the stock, as we can see, the Stockton was very, very fast, so I'll brings or for you guys as well. If we type in VV PR, which is its ticker symbol, remember that ticker symbol, we see that the flow is extra 2.8 million on the stock. So it's a very, very low Float. What's the news on the stock now executes definitive agreement to actually acquire 51% of electric vehicle company. Okay, so it's actually, it's pretty good news, actually really good news, very positive news on this stuck also it's over the view up level which is as tan line are here, the volume weighted average price. We go the daily chart, one year, one day. So each of these cantos represent one day. We can see that it's already been a previous moved before this stock. If I draw a line here, A1, A2, all the way to 1489, it was a very big move when it comes to stocks because you can tell it has a low flow because a very short supply of actual shares to be traded to the public. So as we can see, it's not the markets on even open yet. It's 929 I'm sorry, up about $900 a something because after this one tray that we had that 1-20 loss. But I want to show you guys it's live trade, but look for the criteria so as we know, it fits all IE criteria levels on the one-minute candle has over a 100 thousand and actual volume. And I guarantee on this first canada actually, when the market opens, we'll see a huge, a huge amount of volume on a woman it candle close to a million shares or even three million, four million shares being pushed in. So we have on both thinkorswim plus we have on the nasdaq thing. So there's the bow stocks very hesitant to the upside. I wanted to be surprised the stack actually has a halt coming in. So let's see if there's a hot love on a stock. As we can see, the hot levels at 1742, which is all at this previous resistance level. So 1742 appears a halt level into the downsides that $14, which is about down here, it looks like so like so we don't know the first five minutes of the actual market. So basically just watching the first five-minute counts actually form. And then from there we'll look to see where we can actually get into a train. So what I'm actually going to do is skip two are actually start placing the trace because we can watch you scandals back and forth. But for the most part, not gonna learn anything until I actually take the trade. So it's actually skip to that point. So it's actually the four-minute Canada now. So we have one more keen on, as you can see, it's tapped the view up level twice already. Once right here, and once right here. Our resistance level to actually for it to break would be at the 1727 level. As you can see, it's tapped once over here and once over here. So we're looking at this, we have about one more. We have about 40 seconds left before the new candle actually forms. They want to get into the stock. So as I'm looking right now, it's looking pretty weak to the downside. We've already seen three red candles. If we see a fourth, fifth, and might want to break that view up level. So right now it might actually break view up. But if it breaks me up and actually doesn't close under View up, that's still a pretty good sign to the upside. So actually went to tap that view out level and as you can see, it just broke that view up level. So I don't wanna go into a tree if it breaks view up and it actually holds that level. So as you can see it going for a new Canada actually form because if it does break this level. We need it to actually then break up above you up again before actually we're going to place a trade. So right now it's looking at sign off a lot. If you go to five-minute chart, it's under V up on a five minute chart as well. So it's not a good sign to the upside yet. They're showing no row potential because as we know, if it's under View up, it's a minor trend. The downside, that's what view up is indicated whenever you want to get to a stock, if it's overview up, it's a minor trend to the upside where we actually can get in for profits. So right now it needs to actually break that level of V02 up. And the next minor resistance level would be at the 1650 level right here. Because at this level, before drawing down to these candles, so resistance is drawn by looking at where stock is tapped and then drawn down from that level. So as you can see, it's tapped here. Plus you can see another tab over here and two minor ones. This would kinda tipped over it a little bit. But still for types of resistance at this level, and as we know, 1650 will be another level of resistance as well because the $0.5 mark $0.5 hold other are bigger distance levels. So stock actually just close above you up. So look for the actual tap to about 16501660 before actually wanting to get into the stock now. So starting a gap up higher and higher and higher, which is a good sign. But I think we might see a drawdown again close to this 15 level before breaking that. So now it's getting up to 1650 or for 1660. I want to tap that level, have a new kindle form and that's where I'll actually take my entry point, my first trade. So as you can see, it started gap ups that 16501660 level. So I'm really, really good strengthened if it breaks that level, my next level would be 1727 to actually get into the trade. As you can see, he got very close to tapping that level before drawing down. So Taps at level has a new kindle form that's actually, I'm going to place my trade so we have about probably 15 seconds left before a new kindle actually forms. So as you see, it's tapping that level when actually breaking it. Some way for a new Canada form then to get in on the profits because this is, as you can see, that's already a duller move. Others are taking their profits. So new cantos forming, I'm going to get in on that candle. As it draws down, look for that breaks out, starting to break. That's actually when I exit my trade. And as you can see, I'm already out of the trade. And I just made about $800 and span of 30 seconds, right? It's all about patients and as you see, it's actually about to get halted. So what I did is I actually allows already up at $1000 on the day from taking pre-market trading. Now, what I was doing is looking for that candidate brick, that previous resistance level before drawing down and then breaking past closer to the next resistance level, just 1727. And so I'm taking my trades, it's very split seconds. I use hotkeys. So shift one actually buys a thousand shares, control once cells with 1000 shares. So I'm buying and selling and very fast movements. And as you can see, it's a blink of an eye. You can barely see it. It moves very, very fast. You can barely until I took a trade, right? Because we're looking at key points in the market, I think to about 3 thousand shares. And so when you're training these stocks, I'm looking for that minor gap down right here. Gss assumes that candle forms. I can use a level to, to actually see Romana Get out of the trade. So whatever, what level to level two is a bin as what we were actually placing orders that so I see people are placing orders a huge amount on the actual bid. Mean there's a lot of orders being pushed into, actually push it higher and higher, higher. I can see the breakout actually for me because as you can see, the stock's going to go higher and higher and higher. So when Bring It On the Criteria guys, you're to understand, we're looking for this specific crates here because it actually helps get into these stocks when you have all this criteria is working together toward they're all there. It goes, a higher probability and edge in the market. Tory actually can place traits to actually benefit from that because we know we're looking for, we're not looking at any stock or looking at specific five key things, right? Volume and a woman it kill, it's over a 100 thousand, then the flow is under a 100 million and also want there to be news on an actual stock. News are catalysts and then we also need it to be over the V up level, the volume weighted average price. And then after that, the last thing is we need to actually be a previous Mover. Once a previous mover, it shows actual movement to the upside to actually get into a breakout strategy, it actually has momentum behind the stock, so that is alive triggers the criteria actually follow. So let's actually quickly break down a straight again and get to the next lessons guys. Let's get right into it. 10. Criteria Trade Live: Ticker Symbol (VVPR): So lateral you saw on the criteria type train had tic that live trade and you understand that that stock went very, very fast. So it's kinda hard to look and understand exactly I've bought and sold and also how the strategy exactly worked. So let me break it down to a slower version so you guys can see exactly how I took that trade and how fast it was the first thing our checklist that we follow our strategy, yes, right? As you can see, we see this previous resistance level right here, one tab right here, and one tap right here. As you see, a stock is over the VOP broke up, we'll blow and wants to tap that level and look for a new Canada form to draw down, bind to that position than a break between these levels right here. That is a brca strategy. So one, does it follow strategy? Yes. How much sighs I take. I took about 2 thousand shares on the stock, only 2 thousand shares. And then I'll show you exactly what I bought and where I sold into the stack. So this one was a very fast movers, was kind of hard to follow me when actually I took this trade, but let me break it down on actual chart. So as right now I'm looking at, you can see I'm way for a new Canada actually form. The stack has been getting up and going for new candidate actually formed for actually bind into the stack. So as you see a new kind of form, see how it drew down right here. See that drought on a candle, how fast it was. So as I saw that in as Susie gap down and then it push all of that up in the span of 20 seconds, just like that. And it wanted to push higher pests that resistance level. So as you can see, I take my first 1000 shares. What does my cost at? My average cost is at 655. Was that level right there as 1655 is where my first cost average is. I'll have a 1000 shares in the stock right now. So now I have 2 thousand shares in the stock, as you can see. So now my position is at 2 thousand shares on the day. So my cost average is at 1657. And you can see on the bid it's 1673. So my cost average that 1657 because I took two other shared among I felt a little higher. So I'm going at 2 thousand shares and my unreliable in the span of seconds is already at 310. So where to actually sell a position n. So the stock went so fast as I told you earlier, the stack was already up. I was already up at $1000 on the day. So this trade, and as you can see, it jumped up so fast to 17, that was barely even recognizable to see how fast that took the train. So as you see, I'm at 2 thousand shares and it's such a all a 17 to Article 1000 shares right there. And then I'll add opposition completely and the span of seconds. So where do I buy and wear it? I so let me show you guys adequacy and a shorter here. I bought VBP are 65, another one at 660, changing my average cost is 1657. And as you see the times, I took a trade at 937019702 and I sold at 9370793708. So literally seconds guys, I took a trait for $800. So I've bought in at 1650 level that Bonilla 1000 shares changing. My average cost is 1657 and then selling at 16921702, those are my trades that are faster to the trade. So what can you guys learn from this? You guys understand that trade can be taken so fast sometimes to wear it you can barely see with the blink of an eye. And you understand exactly where you're getting in an albatross, you're not holding a stock because I knew exactly who was going to get in and browse and get out. I know isn't getting when a Tet, the resistance level, a new kind of form I was going to buy at that new Kino Forming, look for that push pass, a previous resistance level. And as soon as I did that, I took my profits immediately because I don't need to hold the stock hoping it goes higher and higher and higher. I don't want get stuck into a tree. So that times a halt can go in, you'll get stuck into a halts rate and an open set at dollar to lower. So I know executor, I wanted to get in and out is what you need to understand when you're actually taking trades. You're not hoping that the stock does something, you know exactly. We are going to get in and out and what the criteria look for either just talking about this whole, entire lesson. Our criteria for finally specific traits. I know exactly I'm gonna get in and get out because my strategy always stays the same. It hits a previous resistance level, it drops down, I bite that level, I sell at that break, the same pattern over and over. It's a routine. And when you create a routine, that's really become profitable in the market. So this was breaking down the criteria trade on VV PR and guys also click the resources so you guys can see write bought and sold on the stock, on a chart. Plus you can actually see the time that took those traits add so much. You've got, you've got the resources. 11. Breaking Down Criteria Trade (VVPR): So let's get into the five laws of actually mitigating or managing risks. How do we manage risk in a position? First off, if you know that you have an account and you tend to over trade or overextend your positions, where you can actually do is call your broker. And if you ever want to take more than say, 500 shares or 1000 shares, your broker actually restrict that for you. So you can't actually take that size. No matter how much you want to take that size, you can call your broker or even email them however they work, hey, I actually don't want you to allow me to trade more than 1000 shares in a single day or more than two thousand, five thousand, whatever your risk tolerance is, you need a find that because if you're taking 5 thousand shares and position and it goes against you, like I said, $0.10, that's already $500. So you know, you tend to over trade and use higher size. You can actually call your broker and tell them, hey, put a restriction or a limit on my traits for that single day. That's the first law. The second law is a manager risks before you even start a day. What do I mean by that? It means that if you have a fight with a family member or a fight with a coworker or whatever it may be and you wanna go into a trade, you'll take that anger on the markets. So you need to be mentally prepared and psychologically prepared to actually get into a trade. Do not trade in that single day. If you are having a bad day, your girlfriend, boyfriend, a wife, husband, whoever is, is getting on your nerves, or your kids are going to dinners, whatever may be the actually is frustrated and you do not get into a trade because a lot times you'll take it out on the markets and a result in a loss because you're taking your anger out on a market. What's the market doesn't care. The market will do what it does. So when you feel like the market owes you something, there's no point in doing that. That's why you need to be mentally prepared and very tough when it comes to the markets. Third Law is a two-to-one, three-to-one ratio. That means if I take a trade and I make $200, that means my next trait, if it's a loss, shouldn't be more than a $100, mean two-to-one. Because if I'm making $200 on a trade and then I'm losing $200 on a trade. That's a one-to-one ratio. It means that every time I make $200, I lose $200. So even 3-2-1 make them dollar on a day, and then I lose them a dollar a day, that's one-to-one as well. But if I make $200 a day, but my Lawson and trade is only a $100 per trait or wherever your risk tolerance is, that means that you actually go away profitable because you're not taken bigger size. So you need to have a 2-to-1. 3-to-1 ratio also gets into a max loss portrayed a max loss per day. If you have an account valued at $10 thousand, you should be risking more to two to 3% of your actual account. Meaning should be risking two to $300 each trade. That's what you need to max loss portrayed and also a max loss per day. Those are two very important things you need to look at when getting into any single trade. You need to understand your own risk tolerance. You're counts at $1000. You shouldn't be taking ten to $20 risk per trade and also their accounts at $10 thousand. You shouldn't be taking more than a hundred and two hundred dollars per trade risk portrayed. And the last one is setting a stop brighter. So let me show you guys that real quick. So I want to get to the stock right now that's moving. This isn't a real trade. This is me. Just show you guys exactly how to place a stop order. So we wanna do is you actually want to come here and as you can see, the stock, we're in a stock right now for a thousand shares, what you wanna do is actually go to this window right here. I mention you have a 1000 shares set in there because we've got in at 1000 shares. And what you can do is gonna hit this drop down and you're hit stop order. When he hit stop order, you're going to hit sell. And when he hit cell the or type of pop-up. So you'll put a mark or a mark is stop order. You want to trigger exactly how you want to get out. When it comes to stop orders, you wanna be executed immediately, right? So we've got a market stop order and our trigger price, we'll say will be 225. So then we'll hit OK. And as you can see, it goes to this window order here, mean that until the stock on the chart hits 225, we just see the side. We also see the quantity that open price, the route that actually was used, and also the type. So we want to sell market order at 225. So until the stock actually hits to 25 were in the order. But once it does, it will execute the order and get you out of it stuck immediately. So we're managing risk, especially as a new trader, you need to have a stop order. Mean that epicycles against me 100 automatically trigger out. I can't get a hold of stuff. You can't do that because you'll automatically RB out of stock. So when you do that, and you can see it's dropna to 25 right now. It says to 25 on the actual bid, but, and you say to 25 on them, ask. So once it does, it'll actually automatically trigger my order. And so as you can see now, we're out of that stock. We took a loss on that trait of a 120 because the stock hit our stop loss. But if that's in your risk tolerance, you can take a losing position. You can understand that. So, you know, make sure you actually have a stop market order on your traits. And that's how you can actually mitigate and manage your risk when you put all these five laws together, call your broker tone. I want to actually have a restriction on my trades managers before you even start trading have a two-to-one, a three one ratio and also a profit loss per trade and a profit loss per day. And for you would have a stop order, right, as I just showed you a set stop order. And lastly, walkaway, The best way to mitigate risk is not to trade just a walk away, right? Sit on your hands, don't try it if you don't need to. Another the five laws of actually mitigating brisk. So let me show you a trade live on how we can actually cut our losses fast and understand where we need to cut losses. Let's get right into it, guys. 12. 5 Laws of managing Risk: So right now we're actually was stuck moving up l i, z. If we bring over fin viz, let's see exactly the flow is on the stack. So on LSI, let's see what we got. We got 22.6 million flow shares outstanding. That OK, so there's actually news on the stock today, which is a first selected B into government-backed pilot programs. So it's pretty good news. So stocks moving up pretty well on that day. This is actually started looking out on the side and it's 936 right now. So actually wasn't watch this stock previously. So as we can see, the previous resistance level is here that for 25 which just broke so much looking to get into stock. I wanna get in on that dip right here. I'm going for it to push higher that 40-45 level. So now as it's pushing higher and higher and higher Arctic today on MDL. Why? But how do you actually mitigate your risk when you're in a trade? You need to understand that when you're taking a buy order, actually my average cost, that 4.2.6, which is right here. If my average cost at 4.2.6, I should be exiting right there. My exiting point should be when it drops down to 416 level. And so if I'm in at 2 thousand shares, as you can see, I need to exit my position. And just as you can make $360 or 280, it can also go against you that same amount. So when you're mitigating risk, you need understand exactly those points of where to get out of a stock. Because as you can see, my entry point was at 4.2.6. If my entry points out for 26 for 2 thousand shares, I need to be out of that stock at 416. I don't wanna be holding the stock wafer to push higher and higher if it's not actually going to go there. And he understood exactly where to get in and out of a trait. So just as you can make money in the market, they can also go against you in the markets. You understand that if I want to get in at 4.2.6 and I'm thinking 2 thousand years and it's my average cost. My stop-loss is always $0.10 below that, my southwest tells me if I made up for 26, I want to give it up for 16. I don't wanna be in a trade longer than I need to have if it goes against me, $0.10. But what I'm actually looking to make 3-to-1, 4-to-1, even sometimes 5-6 to one on a specific trade. That's all you're consistent in the markets at my profit loss portrays a $500 profit loss per trade. That means if I'm down that surmount per trade or in a specific stock and you honestly my tolerance before actually getting into a stuck because as of right now you can see a stuck is still getting higher and higher and higher. So I can say I wanna get into stuck again because if I get into the stock, might three-to-one, my 2-to-1 tells me that if I get into this stock and it goes for me, I'll be up $600.6 hundred seventy, eight hundred dollars or even 1000 on that specific trade. Mean that my lose it you see, gets wiped out. I don't take losses and then think, oh, well I took a loss on trade. That happens, it's trading. You take losses and trading, but you know how to actually mitigate your losses. My way of mitigating risk is that whenever hits 26 as my average cost, my stop-loss is $0.10 below that. So I'm getting a 416. I'm not going to hold it pass when it goes to 4.3938016, $44. Why? Because if I got that trait and I just take the next trait and it goes away. I need to already back in the game. I'm already profitable on the day. Now if I take 1234 trays that go against me, it hits my daily profit loss on the day I'm using either walkway from the computer, I'm not gonna keep holding the stock or hoping that I can get into more money. I'm going to walk away if I take four traits and they all go against me. I know I'm done for the day. I need a walk away. And now when it comes to having a smaller account and save a 1000 or $10 thousand, you shouldn't be risking $2 thousand per day? No, no, not at all. Your account size determines how much risk you can actually take in a position. So you have a $1 thousand account, you should be risking $50 a day, right? You should be risking $50 per trade at all, not even close because you take for trades are already down 20% year account at $1000 account, you have $10 thousand with each account size, you have to switch the math. So as you can see, as fast as you can make money, You can also lose money if you have no idea what you're doing. Or SYN from my strategies as well. I'm teaching this strategy how, because understand exactly how to mitigate your risks. So let me break down a straight or quick for you guys. You guys can see exactly where I got in, how fast it can drop and how I got out of that specific trade as well. So let's get right into it, guys. 13. Cutting losses: Live Trade (Ticker Symbol: LIVI): All right guys, let's go into breaking down LSI and how we cut our losses. Let's get right into it. So Ella is EI, as we know, area had a low-flow StatPlus, had news on the day, so it's a pretty good momentum strategy. It also had Overview up previous mover and had volume in a stock as well. So we break this down real quick. And the breakdown, we always know that we want to see exactly follow my strategy. And yes, I did fall my strategy. We did take a loss on the straight, but I felt my strategy and show us how you cut loss on a tray. So yes, that real quick, and you're taking losses on a trade, you're one in ten Cent stop-loss. So if you get an at, say right here for 25, your stop loss as we have 413. And if you average down, so you get an F for ten, your average cost keeps changing. You go $0.10 for your average cost. So if your average cost is for 25 or $4 or 400 on the last amount of shares that you take. So you take 300 years altogether, your stop-loss is always $0.10 after the last averaging down costs. So first off, how much shares I actually take on this stuck. So altogether it took about 2 thousand shares only on this stuck, I went to about 2 thousand shares. Should exactly right. But in stock right now, right there and you saw it got accepted. So got accepted on 1000 shares, the average cost being 425. So I got accepted right there and took another 1000 shares to where now it's that $2 to the average cost change of 46. So my exit point should have been for 16, $0.10 below that level. So my level of average customer actually got it. It was 2 thousand shares at 426. And what I looking for, as you can see, the brca strategy is in effect, it's over the viewable. Just broke that level. I looked for that drawdown to get in at that 14 level, but I got filled 4.2.6. A pretty bad fill, kinda frustrating, but hit that previous resistance level. And now it's getting above that level right now. So as you continue to watch, you can see as it starts a gap up right there. As you can see, I'm up only about 130. Right. And so I was looking for that tab before 45. So almost another $0.10 to actually go for me actually wanting to get into stock, right? I want to see another $0.10. I wanted to get out of a 1000 shares, about 40-45, and I wanted to see a break for 45 to actually get out when full position around between 45450. But as you can see, the second of false break and right there you see it starts to draw down slope, so hold the position, but because of my exit is actually at 416. So I know that I sub a good a good amount of room to go before it take a loss. But as you see, it starts to drop down right here. I'll look at the weakness in the market and see a lot of red orders and read volume on that one single candle end right there, as you can see right now, I'm done about 250 on the day, right? 250 on the day. And my shares are about 2 thousand Stowe and a hit for 16 faster than I could even blink my eyes. So for me, any gout immediately now you can see when I took the trade, as I was talking, I was saying how I want it to go to certain level as I was sitting where I needed to get out of it actually hit that level immediately, something that fortunately six of my average cost. And so it took a little while, but I finally got out at, it looks like that for 12 level. Let's look out for 40413. So about $0.03 slippage and my actual exit position. So my my final realized was actually through 60. So when I broke down the street and understand that I was looking for that for 1611. And as you see when I actually place a trade live, as I'm talking about where I want to get out at hits that level immediately. So what can you actually learn from this? It shows you that whenever in a stock it can go get you very, very fast. And, you know, executory negated out because if you didn't have a library actually wanted to get out of and you're just holding without even realizing where your stop-loss is because I know exactly where my stuff less was before you've got to a trade. I know exactly where it is. So as soon as I hit that level and knew where to get out, and you can say, well, why would you take a $36 loss? Because I know that if I take one loss but earning $60, but my next two trades ego $600. That means it's $1200. And if you take away 360, you're still up 840. If you took two more traits and my 2-to-1 equal that, what if I take a losing trade has to be half of my actual profit target. So if my profit target per trait is $600 and I'm taking 360, right? That's half, that's two to one. So we take another bad trade, that's two losses on a day. If we take four traits, I'm completely done for the day. So we need to learn from this is actually that you need to have that two-to-one, three-to-one, and know exactly we want to get in and out of a stock whenever you're cutting your risk, you're taking BEC and mitigate your risks. You need to know exactly what's going to get in and out of a trait. This is why you actually need to study this strategy. Really break it down and backtest yourself as well. Understand exactly we can get in and out of a trade before actually placing a tree, right? Watson markets see what they're doing before actually gained to any single tray. Because if you do that, it's a lot easier to mitigate your risk and alive trait, right? It's a lot easier because you know exactly what you get in and out. So that was breaking down into stuck LSI and where I got n, where I got how I use my strategy, how I cut my losses, and what you can learn from as well. So take the quiz guys, let's get to the next lecture. 14. What is Volume, Level 2, And Time and sales?: So real quick, what is volume, what is level two? What is time it sails and why do we even use them? First off, wondering about volume, that means the amount of shares being trained in specific canto. So volume is very important to momentum strategy because volume is just people trading that specific stock. So there's no volume in a stock. That means that nobody's actually looking at that stuff. So I talk about volume, CSA, 50 thousand in volume and that one candle, that means that only 1000 shares were in that one minute candle or five-minute candle, right? Which 50 thousand shares isn't alot because that could only be five people taking 10 thousand shares. That's not at all. So we're looking at volume on an actual chart or even in the breakout strategy, we looked for volume that's over a 100 K In each one minute candle. Now what is level two? Level two is actually known as market depth as well. Level two goes into the bid and the ask. It means a price that the buyers and sellers want to sell it. So what about bid, bid as all the buyers placing orders, right? They're not filled yet, me is present. They actually want to buy it. And you can see that on the actual level two, you can see what people want to buy a stock at and how many shares. And on the, as you can see, what the sellers want to sell that stock at, and also the sheer size as well. And on level two you'll see different routing systems like ARCA or nasdaq or NYSE. These are what are actually executing those orders or want to be filled, but they're not filled yet. So when order does get filled, what happens when an order gets filled? You actually be able to see all the time in sales. The time and sales is just that. It's the time a trade was taken and what price that order was filled at, and also that routing system as well. So why don't we use volume level two and time and sales. Well, let's get right into actually while we use the specific things when looking to get into a stock because they play a huge part when actually trading the breakout strategy. So let's get right into it guys shown it actually live where it looks like on a screen. Let's get right into it. 15. How do we use Volume ,Level 2, And Time and Sales: How do we actually use volume, time and sales plus a level two when looking at traits. So it's gonna go like this. We have a stuck right now moving up Ve Vp. And as you can see, these are the time and sale orders right here. This is the time in sales when every seal, all those green orders going through, that's a lot of push to the upside. It's a lot of buy orders being executed. So when this stock, whenever I'm getting to a stock, I can see when those orders are rushing through, you'll see it turn all green. Mean is pushed to the upside. Now also, when it comes to volume, volume, these are these bars down here as you know, if you've been following this course and paying attention, these are the volume bars. So when this volume bar is green and these order sort of push through as well green, that shows a huge momentum to the upside. That means stock was to go higher and higher and higher to the upside. Now if you're actually adding a level two with that, as you can see, this new cantos forming and it's, it's a red candle with lower volume right now, hasn't hit 400 thousand shares yet, but as you can see, it starts to turn red. So look at the volume first and look and see exactly where the volume is going to go. My eyes are locked in on that volume. They'll see the volume. It's a red candle right now. Until that switches to green. I'm not looking to get into a trade at all. It actually fits our strategy. I'm looking for it to actually turn green because right now it's all red. And if you look at the level to the level two and actually the time of sales work together. Because on a level two is where people are placing the orders, but they're not executed yet. And on the time and sales is where their auras are actually getting executed. So once I hit by, my order cannot be filled yet, but once it does get filled, you'll see it drop on the time and sales. So that's our level two and time and sales work together now to about volume and Yvonne because as you can see, there's 830 thousand and volume, but it's a red candle, meaning that it's a weaker move right now, I don't want to get to a stock that has a weak move. I'm not going into a stock unless it's a green candle and also green volume being pushed into that stuck. So as, as volunteers to come in, I can actually look to want to place a trade once a volume is a green bar, because right now it's still red. So there's that green color I want to see, I want to look the green color and then look at these orders in the level two when Bring It On the level to you to understand that this one 5.3.2 To add to 0 so that people are placing orders super, super fast. And a lot of times you'll see a huge resistance level. Whenever someone places that you'll see 300 on there, you'll see 300 or 400. That means that 40 thousand shares are looking to sell at a certain position. And this is moving very fast, so it's kinda hard to follow. But you can see right there, I can see 28. I'm so used to it too. I can see that it says 281920, very, very fast. It's small minor resistance. So as you can see the stack as getting up higher and higher, it's pushing higher. Whenever you want to get to a trade, you'll see the number of he says 200s start to dwindle down, say two hundred and one ninety, then 16T than 90 than 8070. It'll get faster and faster and faster to ours looking to break that previous level because these are all sell orders. So I'm not going to bind to a stock at all. The sellers are actually being pushed out. That gives me a good indication that actually want to get into that stock. So that is actually how level too, the volume and the time sales worked together for us to actually be able to place traits. So I call it the trifecta system, right? The trifecta of volume, time and sales and level two. So let me show you a live trade using level to the volume plus the time it goes to show you the key things we actually look for when gain to a trade, where we follow the level to the time and sales plus the volume. So let's get right into it guys. 16. Live Trade Using The Trifecta: Ticker Symbol (MDLY): So right now we actually have a stock moving up right now, which is MDL wise is are stuck. We're looking at for our actual scanners. So as we can see, those actually go to fin viz and type in MDL y as our ticker symbol, which is a company were actually trading. And as we can see, it's 6.1 million in actual flow. If you scroll down, there's actually, today is the 12, So there's actually no news on this stuck. So what I'm looking for as I drew my levels was referred to tap that 2.3.3 level than a drawdown to get actually get into the trade. So actually miss my setup. But we're actually going to try to effect a trait of using volume, time and sales plus level two. And as you can see on a level two, there are a lot of high orders get 8976 at 237. So I'm watch knows to be white out to actually want to get into a trade. And as you see, those orders are getting lower and lower and lower and right there is a broke. Now it's starting break hires the upside that's on watch and level to a much and seals big orders get wiped out. So if I was actually wanting to get into the strayed, As you can see, if I go on the daily chart, it's been a previous moved from about $0.60 to 140. So stuck is a very low price stock. I don't like to trade stocks usually this low but spinning in the same 145 level. But today it broke all we get to 36. So right here, we can see this drawdown, the scandal, but I'm looking for is more of a distraught on right here. So only for the kinda draw it on under this level. And my new break-point at the most recent highs right here, that once he does talk, actually draw it on more closer to these levels right here. So I'll get rid of this line right here and I look for to draw down cuz there's too dirty level. I'll see it push, pass up previous resistance at 240. So as the stock starts to draw down, I want to get on a lower dim. The second seem kinda weak to me. So I want to wait and be more patient with this actual stock. So as we can see, the actual time of sales was ranked the right. Now you can see a lot of buy orders was obviously wants to push up higher and higher, about 40, you can see is a lot of resistance at 40 level. Right here on that dip may actually gonna take about 3 thousand shares on that dip wherever you get even a little lower before actually executing that trade. So if any, if it gets to 230 to 228, actually average down even more. And that dip right there. So as it gets down lower on average down my position, that's why I do my trade. I like to average down my actual positions and often people get very scared the volume that comes in with these kinda stocks, I don't mind the volume actually being pushed into a stock. So when it comes at 230, my stop will be lower to this 220 level here at 220, the only way I can actually change that position if I average down to where my position comes at, 222 out, average down more size. What I'm looking for is this huge dip in this wipe out that a lot of new investors could LA Times a new investors getting wiped out right here because it's time get Ali from 214 to 240. Very, very fast. A lot of new investors actually taking their profits right now. So what do I like to do? Like to buy into those profits? I to Bibles profits. And as you can see, whenever you see there's lot of Green orders coming on the time and sales, the stock will start to flush it with green orders. And right now it's actually the pre-market. So as you can see in this graph over here on Think or Swim, we are actually in the pre-market right now. So it's a pretty market trade actually going on, which is kinda cool to see what a pre-market tray looks like because it's the same thing as a regular trade guys. It's just in the primar case before the market opens at 930. So as you can see, his ducks garnet gap down low, lower on the second red candle. So being very patient with us stuck to actually get back up passes previous, most recent resistance level at 240, right? That's my level. Most recent resistance level, and this is using the trifecta system baby, we know what it is looking for, that volume being pushed in and we'll see more volume being pushed in this green color that isn't a red candle. So as you can see right now, the scale is going to terminate a lab. What happens? I might see another tap at 240. So as you can see, we are watching for that 240 level. My average cost is at 234, which isn't the best average cost to actually to be inet, I was hoping for a better average cost, but we're being very patient and just watch and see what the stock would do. I'm look for that gap to 240. As it gaps at 240, I'm actually looking at take off a 1000 shares. Once it gets closer to that level, I'm still in that position right now and looked for that break up to 40. And once it breaks to 40, exit between two hundred forty and two hundred fifty. Two hundred fifty is a biggest resistance level. I'll be out completely my position at between two hundred forty and two hundred fifty. So as you can see, the sellers are definitely winning in this position right now. And a lot of times I don't want to hold this much size in a stock that's going to sellers wave, as you can see, a stock still wanting to gap and push that to 40 level. As you could send a level two, there's a lot. So pressure at 233. What I'm looking for eyes looking at that level to actually watch those orders be wiped out because of the faster those go through, as you can see right there. And it has 34, you see 7115, and it starts getting higher and higher, or those orders will sort of get lower and lower and lower, like that. You see kind of break down a little more and will give us next 34 level to actually be the level of breaks because it needs a break the story through right now, as you can see, there's a lot of cell orders, right? Let me wanting to push us down lower and lower and lower. So I'm putting these together, actually watch and see exactly how the market's actually moving. Because level two indicates the market depth that shows exactly what's going on in the actual market. It shows what's happening in this specific moment. So as you're watching this, you're seeing how it's hitting this previous level right here, actual support, which was previous resistance. So now stock's going to still get past that level. So as you can see, the bars one is stepping right now on this camera here, my tick off at 1000 shares at 40 logistic up at 1000 shares, right? That gives him out at 1000 shares. And as it breaks from 40 to 50, because there's a lot of resistance at this level, fifties and next load actually wants to break soon. So I'm gonna take off another thousand shares right there. And I'm going to hold these 2 thousand shares until it gets past this 40 level. Because right now you see a lot of resistance at this level. Look for to actually hit that 50 level. As you can see, this falls or strategy as well because it's hitting this previous what resistance level, right? And you're gonna see a drawdown. After it hits a previous resistance level, you'll see a drawdown like this, right? And I could average them by position and say on getting that more shares when an upright now so I don't go against my position. So as you see, there's a lot of hesitation in this market. It my average cost that 2.3.4. I wanna get out around 228 now because I don't want to actually go against me when it getting to a stock. I'll see stock push higher and higher and push close to that 50 level. So right now it's penalties levels. So as it's doing this right here, I can see, I can watch this specific stock. What I'm doing is I'm watching that level two for these ores actually be wiped out as volumes being pushed in as well on a green candle, because we're here on this previous or green candle, it almost close to 600 thousand shares in volume, right onto the upside. So right now we have about 15 minutes or so to the market actually opens and I'm seeing this huge drawdown and amount like an exactly what I'm saying. So at times it hits that 228 level, goes below that to 28 level. If I'm up, only say 140 right now. I don't want to go and have a go against me and beat down a losing position if I'm already up a certain amount, right? So if it goes against me more than my actual profit I'm in right now, that I'm actually in a losing position and I want to be holding a losing position absolutely. For the stock to actually break that 40 level, then it goes to 50 between at 40-50 levels around and take my last 2 thousand shares on the stock. So right here we're going to see exactly what happens. Because atoms on that note, when I write Kindles form, the green cannot be Nick. The next one that pushes up higher and higher and higher. Pass this level so we can see if this forms are green or red, kinda the actual upside. So I like to say actually a lot of weakness in this stuck the settlers and even the time it saves a lot of weakness as I can see those green or it's coming through, it's still red candle. Mean that just because a lot of green orders all being wiped out by sell orders. Just because you see all these green orders, those red orange can be 102030 thousand shares a lot higher than all those green or it's put together. So I'd like to say that a lot of green going through but not a lot of movement in this candle. So as we see finally, there's actually some movement in that kinda on the time of sales, we can see the green or it's actually rushing through now pushing out those sellers and there's lot of Cell pressure at 240, but as you can see, it gets lower and lower and lower. And what's a break at 240 low. And as soon as it breaks that level, I can indicate that I want to get out for my certain size or my certain position. So like I said, there's lots of pressure at 24h. The buyers are trying to break that to 4011. As you can see, they just broke that level but still hesitation AT 243. So I'm looking for to break right there to take up 1000 shares. Still a lot of weakness as you tell it taps that level. There's a lot of weakness in this stock. And look for that brick higher to the 50 level for my last 1000 shares on, I wanna see it break closer that 50 level. If it doesn't break, I'm an exit my position at 234 and be out of the staff at two thirty four hundred hits that level. What I'm doing, I'm actually watching a level two. I'm looking exactly to where I want to sell my stocks to the buyer. So as you can see, it's starting to break. 243 on the bed. You can see it's 243 to 42. To 41. I had to sell to the bid. So when I'm signed to them on a matrix, hits my level. So I want to see it hit 248. So as you can see, it's getting closer it there. It's that 4645. You can just watch these levels and exactly no one is. So you get a better actual fill price if you watch what the bit is doing. So right there has 48 now are the stock. So it's a small day-to-day taken about 380 and actual profits. But you need to understand is that you're looking at these levels right here as I showed you, the volume is what pushes the stuck up right in the volume is calculated by going to the level two and the time in sales. The people who are taking their buy orders, you can see there's a lot of cell pressure at 245 or 244 wherever is. You can see that. So pressure happening. So when you see that sell pressure, you can understand that, okay? If there's lot of super sharp 45, it needs a break that level at there's almost a 100 thousand orders being pushed out at, say, 40 level as we saw earlier, even at 5000. Now you can see all those order being pushed out by the buyers, which shows a lot of momentum to the upside, which actually fits our breakout strategy because the low-flow stock plus volume be pushed into it and watching a level two anti-woman sales together, it gives a better indication when it actually place a trait. Because as you can see, I saw a lot of weakness in the stock because even though there's a lot of green doors on the actual time and sales being pushed to an actually being executed. The stock wasn't moving. Mean is a huge sell order or hidden sellers summer tour. You're actually able to push a sack of higher and higher and higher. So that was actually taking a trade using the trifecta system. Look at the level to the time and sales and also the volume, what's happening in that specific candle at that specific time. So now let's actually break it down like we always do and show you guys exactly right. Got in and out and how he got there. So let's get right into the next lesson, guys. 17. Breaing down trifecta full class: So let's get right into the breaking down MDL, why that trade we just took. Let's get right into it guys. So rule number one, don't fall. My strategy, of course I did, right? That's, that's the crucial rule. You gotta follow the strategy. That's the most important thing. But one thing I like about this stock is that hadn't no news, right? There's no news on this actual Stag which kinda frustrating because a lots and like to see news, it's kinda that confirmation understand why stocks actually moving. And as you've seen before in other trades. And again, this course, it, there's no news austin take that SRE but more hesitant to actually want to get into a trade buy still will take if my setup fits my technical analysis, which is a candle sticks of volume previous mover. So my size and the stock was about 4 thousand shares. So I was looking for is this tap of the previous resistance level, right? As we always look for that tip tap, it was drawn down this kinda right here and actually got filled later than I wanted to I wanted to get flown that drawdown at 234. But as we watch it go on, its sort of drought on right here, which was looking for right here. But even I missed the first one. I find out the second one right here and right there is a drop at 235. My average cost is 2353 thousand shares in the stock. My average cost is 235, so that's where I actually got in and my total amount of shares taken in this trait is sport 1000 shares. And just a reminder, for 1000 shares, every $0.10 is $400, right? So that's the math on it. So as it's dropping down, this like I actually average down on a stock. So as hit lower outlook for that previous tab or that previous resistance was. So right here, I think another 1000 shares on that tab right there you can see that took another 1000 shares, my average cost change that to 34, which means what? If I'm getting out of stock? I want to get out what price level? I want to get out to 24, right? Correct. I want to get up to 24. $0.10 below my last average down position. My last averaging down position is at 234, right? I took my last 1000 years at that previous resistance level. I'm not gonna keep adding it to 20 then to ten. That is where you actually get a lot bigger. I'm going to look at the average amount that previous resistance level where it's actually showing support. So as it drew down right here, you can see it tap that level one, a breakthrough by law, these buy orders came through. So as you can see at 230, bunch of buy orders rushed through Y because that's a huge previous resistance level. So as I was happening, continue to watch this stuff, started a drone on a little under that level, just kind of close to my actual time to get out of the trade. But never hit my StatPlus, right? And never once hit my stop-loss, which is what exactly I was looking for. It never hit my stop-loss buy once and it didn't it my stop-loss, right? And this is actually the pre-market is around when looking at a live trades on the resources, you can actually see exactly what Tom, I place its trade at all the execution orders. So you can see exactly when I took this trade, but it was around 915916. So as you can see right here, you said that rush of green orders. This is another thing to keep in mind that when you look at the level two books, a trifecta system, you understand it, you're looking at this levels, are you guys, all these green orders are coming through but it's not pushing stuff high enough. Why? Because the cell odors are coming into a lot stronger right there sorts of gap up was lot of hesitation because there's a lot of bigger sell orders on the actual bit in S, right? So they're smaller there, smaller buyers. And right there you can see a rush of 875. These are the torment of shares do not add to 0. So this, right, there's only ten shares taken here, 40 to 69 sonata movement in the stock, right? As you see on thinkorswim, we can tell it's a pre market trade. So that's where I actually bought the stock S where to actually sell the stock at. So we move along on his break right here. I'll look at so happened my position, I'll look in. So half of my position at the 240 level for quick scalping profit, something very, very small because it was a pre-market trade a lot times in pre-market is very hesitant to actually move. So as soon as I hit 240. My P&L does. So I'll tell you exactly when it's hits to 40 on the stock. So let's just watch the P and L, Right? So right now hits to 40 it look at my shares, right? 11000 years taken off. And then as it starts to move a little higher, you'll see another 1000 shares come off as well as a broke that level, you see 2 thousand shares come off. You see 2 thousand shares come off. Some I realize is only 140, and I have another unrealized of only a 120, right? So this is just scalping moves it kinda start to death with a good cushion, right? You gotta go cushion for the day. I'm taking small trades, bomb format, breakout strategy, even in the pre-market. So as I'm looking for this next break, my last 200 years were taken off when it finally broke. Close to that 50 level. As you can see, there's a huge draw down right here. Down o to 231, pass my actual original entry right at 234 I wanted to get out for actually went below this previous resistance level now making support. So if you move on, so when it broke up 40 level again, that's actually where I got out. If you watched someone hits 40, you seem to have a thousand shares, right? So right here, it breaks that level through my shares, they go down to a thousand. So now my realizes 2D dirty with unrealizable $80 in the stock price, almost up to a $100 a day for small, small scalping profit, something really quick. Bacillus, keep in mind, $3 a day is close to $60 thousand a year. If you look at it in that aspect, for someone who just wants again to trading who can make $60 thousand extra a year. I mean, that's you can't ask for more than that. Right. So I mean, you can't you can't get more than that. You can ask for more than that, but so it finishes off. You can see that I took my last dollar shares off when it broke closer that 50 level, as well as looking for, we're looking for that closer brca 50 level. So it actually can get at 48 right before that 50 level, 48, 47. What's my level to get out of? So as you can see, there's a lot of buy orders. But right here, C on a level two ounces 370 through 710, five forty three, twenty two. Watch what that does on how facet breaks when all those shares it cleared out, right? You'll see it get cleared out instantly. Right. So when it did that, as you can see, my unrelated to 130. So as you can see my last thousand shares, I took them, i less than 1000 on that break. The link for that brick in that stuck. So right there you can see it took off my last 1000 shares. So now I'm up on the day above 380, right? And so for a small morning profits scalp all I was looking for a quick morning scalping to actually get the day started and that's where I got in and out. And what can you learn from these guys? And you understand that a lot of volume comes in. You gotta be very patient and that be nervous around the volume because volume is what we need to actually trade. And if we have no vine on a stock advocacy, these kinesics have more than a 100 thousand and volume, which actually pushes the stuck up if it has a low float. So it's very helpful to understand these key things, especially we're looking at the level to the level two indicates that all people who want to buy and sell at what price. So if I see a lot people want to buy that 49 level. There's a lot of cell orders that gives me hesitation to actually want to get into stock, but I'm watching those lobes actually breaking gets smaller and smaller and smaller for that break and push past that level. And it finally breaks out. And there's actually a lot of resistance at that level. I want to get out of that trait when it finally reached my actual target where I want to get out of the trait. Those are my levels and why I watched the actual time it sails. And you'd understand that the time and sales is showing that price orders are coming in, they're green. That stocks that moving up on the candle green that gives you let hesitation as well to actually sell off by because there's a bunch of buy orders coming in that are being executed on the actual time it says, but it's not actually move the stock. So this is breaking down the stock, MDL, what you just saw. Let's get to the next lecture, guys. 18. Live trade age full class: So now it's going to stuck. It's actually moving right now, which is AGE. Let's get right into it, guys. So live trade on AGE. So first off, it's fit our criteria because it's over the view up level. As we know, it needs to be Overview up. The volume is coming in a lot. There's 703 thousand already in the pre market. Right now the market's not even opened it. So as we know, we don't try the first five minutes. So to see exactly the stock does actually form a pattern. But as we can see, there's already been previous breakout strategies. As you can see, whenever stuck hits this level, we know that when a stock hits that level, it draws down, we look for to break that previous resistance level. So as started a gap up you can see a broke that love and went all the way to 228. So right now it's only it's only 927 in the morning time. So it's still pre-market. Stuck. Nice to draw them first, bet closer to the view up. And these are hit that's previous resistance level at least. And he's a have that as actual support. Now if we actually bring up fin visuals, actually bring up from his over here. If we want to type in AGE, which is age, let's see what the float is on the stuck. So float we know is 21 million, so it's a low flow stock. The only, the only what the stock is effect that doesn't have any news out, that there's no news unless stuck, it means it's being pushed up for no reason. So it's a hesitation to actually want to get into this stuff because when there is no news, it's like why is it stuck moving up? But this is almost like I see actually on the gap scanners that is moving. So the only one that's actually falling my strategy. So it actually follows every other criteria list besides the news. So it's over the view up level. It has a 100 thousand shares being trade in a single one-minute candle plus a flow is under a 100 million. And the next thing you look for is also isn't a previous moore. So we've got a one-year one day chart we can actually stuck has moved before from $0.80 all the way to $2 it looks like. So you can see this is a previous mover. Stock has a lot of volume coming in, will get bump also kept down from there. So this is, I'm going to be very cautious. I want actually trade the stock. Now my goal for this stock is only to get about 20 to $0.30 or even ten to $0.15. I don't see a lot of crazy. As I call it home run type traits. It's more of a base hit type trade. So I'm actually wanting to get into this stuck. I want actually see some base hits. And as you can see before the market's about to open, we have about one minute left to the market opens. And as you know, when the market opens, this will start flooding through a volume. So cycle start going crazy. You'll either get up or gap down or go here, go there. That's why I never want to turn the opening sign because when you train the opening, it's more just like gambles. As we see the stock market just opened the boldest ring. Now you'll see exactly the stock is gonna do. It's doing exactly what I thought I would do. Just kind of get up. So now I'm actually looking for it. This is the new resistance level here at 245. And I'm looking to see the stock actually draw down in gap down. And this is on the one-minute candle. This is on the one-minute candidate. So as you can see that stock is playing with these levels. That wants a break to 45 and go to 250 when it breaks to fifties, gonna look to go $3. But once he is draw down a lot more, there's no patterns being set up right now. The stock is just moving to move. There's no reason for it to actually be in a stock yet. I can't trim this just because it's moving because that would just be considered gambling. That's like me saying I'm going to put it down to a slot machine and just hope it moves away. I wanted to, as you can see, even might want to get to the downside because it's kept up so much. And as you can see, there's 5 million shares of volume being traded. This one-minute candle. 5 million shares are traded in that one minute candle. So there's a lot of volume in this stock. So we've got to do is be very patient, not want to just jump into his stock because the stock actually might get halted to the downside, a lot of volume being pushed into are the actually held the stock on different codes like L, UDP or M or T1, T2, all volatility type halt codes. So that being said, the most recent high is that this 246 level, but the previous tap is right here. This previous tip at 228. We can see there's 12 different tabs at this level. So as a stock is drawn down, you can see it start to get close to that view up level. So as the stock is actually drawing down, I'm looking for a new candidate actually start forming after five minutes is over the first five minutes of the market. So as these kids are drawing down, you can see it's kinda starting to form right here, right? I can always break that 228 level. Now I actually want to see a stock drawdown more, tap that to 28 level draw down from there. And then as it draws down from that point, gives us talk for one to two to 3 thousand shares, average them up position to actually then break past this previous high appear right now this is the high that's made on the stock today. This is a stock's high of the day. But it looks like it's wanting to push up higher and higher and higher, which is good. It's a good sign. But like I said, it's still not the first five minutes yet. So after this new, after this ghetto forms, a new kindle actually form in that cantos were, I'll actually indicate, why don't we get into a trade. So right now it's still 934. Let's do it. The stock will actually do. So there it is it starting to get to the 228 level. Now I wanted to actually tap that level, right? We want to tap that level. And I think a lot of selling pressures coming in. So it's gonna tap that level. And so starting to break that level as well. So just broke that level. So my new actual entry would be at two was when it taps to 45. But this kinda hasn't closed yet. So it's kinda can still hit that level clothes and then draw down more. But as you can see, it's wind hit 245. So that means my new entry point would be when it taps to 45, then drawn down on a new candle. So my entry will actually be once a new candle forms, but he's a drawdown once a new kindle forms. And that's what I'll actually get in. You see a lot of resistance at that level. A lot of resistance at that level. But there's 3.9 million shares in this one single one-minute candle with the next level is actually 250 into 50, as we know is a huge resistance level. So among for the new Kindle actually form to see where the stock will go. So it's tapping elliptical was actually bring it to 50 level. So as a new kind of way for the new candle actually form. I need a drawdown to actually happen. So there's a drawdown right here. So I'll take my shares. I think about 3 thousand shares actually on this, stuck on that drawdown. So now what I'm looking forward to actually break past that previous resistance level, which is up here, right, we see one right here where this also one right here as well. So it needs a break past that one. I'll put that in blue so you guys can see that. So new colonise the form because new, previous resistance is actually making support now for a new kindle actually form. Then a push higher pass at 250 level and 215 minute breaks to fifties where I'm actually going to exit that position because I don't wanna be in a stock. It's not going to break that level. So I got to be very patient just watching exactly the stock wants to do, as you can see, it start to push higher and higher and higher. So as a bricks to 40, I actually take up 1000 shares and it has a brakes to 50. But once the break to 50. And actually there's a lot of weakness in that level. So it's not always what you want to see is a lot of weakness at that level. But what you can do a lot of times what I will do is actually average on my position from there. But right now I'm just holding 2 thousand shares. So as you can see, there's 200 shares still in this stuck. So my for it to actually break that 250 level. Because as we know that $0.5 mark is the biggest resistance level in trading. So if I dot taps again, it starts to dry them even more. That's really for a huge push, the downside which I don't wanna be in a stock that's going too far, the downside. Otherwise, I'm just gonna stuck into it. Sure. That actually want to be in, I might as well just take the profits that you do have an actually walk away. So as we're watching this, because you start to draw them more and more and more. But now the bars are starting to step in and wait for a new Canada form. Now kinda indicate exactly if I need to get out of the trade or not. But as of right now you'll be very patient. Because my average cost about 229, which is at that previous resistance level. So as we see a stock started gap up higher and higher and higher. So as it breaks to 50, I'm taking the rest of my position off. And that is it. And that's my complete straight. As you can see, that's how I wanna get to my stocks. So as you can see, we're actually up 650 on the day. So when I'm looking at these positions, I can understand that whenever it taps this resistance level and it sorts of draw down as you saw in this kinda right here. It wants to push even lower. And right now you can see stuck trying to push lower and lower and lower when it stopped makes a new high. People are taking their profits. But as you can see the stuck as son of closer to where my previous resistance level was. So actually wanna be out of that trait. Why? Because there's no reason to actually be in it anymore. If I'm making that trade in a span of four to five minutes. Understand what I'm looking at. That's all I need to do. I don't just say, okay, it's gonna go higher and higher and higher, right? Because like I said, if you make $500 a day, that's a $100 thousand a year, I'm not looking to make the craziest $8 thousand tray which has happened. But it's not about that. It's about understanding the small base hits. How to make consistent profits on about just gambling, hoping to make that much money. It's about having consistent profits in the actual market. And that's what you actually make a living off of it when you're consistent with doing that. It's not about how much I can make in one single day, but every other day you're losing. That makes no sense. You would actually be consistent in the market. Each day you're able to make base hits. And when you take your losses, as we talked about previously, you know when to take your losses, you get out of your traits. You don't stay in a stock or you know when to take your losses, your max loss and the date plus portrayed. Because if you're trying to make a $1000 a day and you're losing $3 thousand. Doesn't make any sense. So this was a live trade on AGE. So now let's actually break this tray down and go into the next live trade. After that, let's get right into it guys. 19. P1860238: So in this final lecture, we're going to AGE has elapsed straight plus breaking down that trade and what that looks like. I hope that this haunts our courses, actually been helpful for you guys to help understand how to actually place a trade and what does that look like and how to actually make money while day trading. So I hope this was helpful for you guys. 20. Breakdown on stock age full class: Alright guys, this is a breakdown and stuck AGE that you just saw. So what we're looking for it, do I follow my strategy? Where did I buy and sell and how much sighs I even take, and what can you learn from this guys? Let's get right into it. So as of right now, you actually know to look for, and we're looking for that tap and then New Canada draw down. So how much size that I actually take on this tray to about 3 thousand shares on the stock. And so let's see where actually, but in my first level of buy-in, so attitude on right here, at my first 1000 shares, as you see, my average cost is at 232 and took a 1000 shares and that drawdown drug on even more to the 2-2-4 level on n. Now at 3 thousand shares of my average cost being 229, What did I buy it? Technically 229 bows binding at lower and lower and lower. So I was buying about 23228224 as well, right? Try and get the best average cost. So as a stock drew down, I'm in a position for about 3 thousand shares of my average cost being 229. And as you can see, what I'm looking for it now is a stock is drawing down myself position will be when it starts to break that to 45 level, go into 250 higher and higher. I want to get up before 250 because that's a huge resistance level as we know the $0.5 mark. So as you can see, I'm at 3 thousand shares with the average cost of 229. So as you can see that at 245 levels and looked for it to break, stepping down and look for new Kyoto form. Because when a new kindle forms, that means I can actually see exactly where it wants to go. Because the new kind of form, it starts to be a red candle. A lot of times you'll see a push sound, Earth's sell off all into the view up level right here when I saw it kinda push it up like that. This just means that the buyers are winning this stock because the stock dropped all your 224 and the buyers pushed back up to 237. So the bars are winning right now, as you can see, having 3 thousand shares, my unrealized already to 70, but I'm still in the position. I'm not selling anything yet. So right here and I see that break when I say that brick to 45, My unrealized right now is that for 80, right? So I want to take up at least 1000 shares or 2 thousand shares as starting to break. What is it? The previous resistance level, the most recent level. As it breaks that level, what do you see? My shares now are 2000, my realises 170 and my unrealized as 380. I'm looking to get a two hundred forty five hundred forty six are on that level to 46 to 47. That $0.02 change as stock's gonna get up higher and higher like this. I tried to actually take off at 1000 shares, but I wasn't able to. So start sort of draw down low, which is kind of annoying because I wanted to be out that 250 level. But as she drew down, our hero is gonna take another 1000 shares by TO myself. My average cost at 229, which is down here. I don't need to get into any more shares. I'm okay right now already up 1 seventh. So as joint down right now, I was very hesitant and kind of cnf is gonna hit the 229 level because actually wanted to be out of stock, they hit to 29. My original entry. I just did this doc drawing down. My okay. I'll take my levels should be either stuck now. Right. And as it's drawing down my okay, the buyers are kinda stepping in here and there, but not too much volume. If I see on a red cone, there's not a lot of volume that gives me more edge because no, there's less sellers actually in this stock. That's talk was plane around this level at the one-minute candle on one for the next canto form. And that kinda is a green push the upside. And as you can see right here, it pushed past that previous resistance level to 49. And my unrealized is at 420. So I need to go for 1000 shares at least. And I wanted to get the whole entire position. So I just say bricks out up here. Watch, watch how fast Sugata stock. I'm a slow it down for you guys so you can see so shares go from two thousand and ten hundred. I can see this dot gaps at higher and higher adaptation completely because it's not gapped up all at a 260, I don't need to hold pass at level. It broke a lot faster than I expected. So actually wasn't able to get out before to 50, but an extra $0.10 I was on the move isn't terrible. So now my realized is 650. So what can you learn from this? Again, this shows that I follow my stretching every chair that I take. What do we look for it we saw that previous tip of resistance hit that level Drawdown a bought when it went pass at level i sold. It's that simple guys. When we get to an actual strategy, when we follow that five steps of criteria that we actually take when getting into a trade. We follow those rules and those criteria that gives us better edge on the market. And as you can see, when it gives us edit the market, that's we're actually profitable. So this was breaking down a trait on how I buttons. So this stuck on AGE. Don't forget to click the Resources so you guys can actually see the live track took on a chart by itself and also the tomato that trade as I hope you enjoy it. 21. Cutting losses: Live Trade (Ticker Symbol: LIVI): So right now we're actually was stuck moving up l i, z. If we bring over fin viz, let's see exactly the flow is on the stack. So on LSI, let's see what we got. We got 22.6 million flow shares outstanding. That OK, so there's actually news on the stock today, which is a first selected B into government-backed pilot programs. So it's pretty good news. So stocks moving up pretty well on that day. This is actually started looking out on the side and it's 936 right now. So actually wasn't watch this stock previously. So as we can see, the previous resistance level is here that for 25 which just broke so much looking to get into stock. I wanna get in on that dip right here. I'm going for it to push higher that 40-45 level. So now as it's pushing higher and higher and higher Arctic today on MDL. Why? But how do you actually mitigate your risk when you're in a trade? You need to understand that when you're taking a buy order, actually my average cost, that 4.2.6, which is right here. If my average cost at 4.2.6, I should be exiting right there. My exiting point should be when it drops down to 416 level. And so if I'm in at 2 thousand shares, as you can see, I need to exit my position. And just as you can make $360 or 280, it can also go against you that same amount. So when you're mitigating risk, you need understand exactly those points of where to get out of a stock. Because as you can see, my entry point was at 4.2.6. If my entry points out for 26 for 2 thousand shares, I need to be out of that stock at 416. I don't wanna be holding the stock wafer to push higher and higher if it's not actually going to go there. And he understood exactly where to get in and out of a trait. So just as you can make money in the market, they can also go against you in the markets. You understand that if I want to get in at 4.2.6 and I'm thinking 2 thousand years and it's my average cost. My stop-loss is always $0.10 below that, my southwest tells me if I made up for 26, I want to give it up for 16. I don't wanna be in a trade longer than I need to have if it goes against me, $0.10. But what I'm actually looking to make 3-to-1, 4-to-1, even sometimes 5-6 to one on a specific trade. That's all you're consistent in the markets at my profit loss portrays a $500 profit loss per trade. That means if I'm down that surmount per trade or in a specific stock and you honestly my tolerance before actually getting into a stuck because as of right now you can see a stuck is still getting higher and higher and higher. So I can say I wanna get into stuck again because if I get into the stock, might three-to-one, my 2-to-1 tells me that if I get into this stock and it goes for me, I'll be up $600.6 hundred seventy, eight hundred dollars or even 1000 on that specific trade. Mean that my lose it you see, gets wiped out. I don't take losses and then think, oh, well I took a loss on trade. That happens, it's trading. You take losses and trading, but you know how to actually mitigate your losses. My way of mitigating risk is that whenever hits 26 as my average cost, my stop-loss is $0.10 below that. So I'm getting a 416. I'm not going to hold it pass when it goes to 4.3938016, $44. Why? Because if I got that trait and I just take the next trait and it goes away. I need to already back in the game. I'm already profitable on the day. Now if I take 1234 trays that go against me, it hits my daily profit loss on the day I'm using either walkway from the computer, I'm not gonna keep holding the stock or hoping that I can get into more money. I'm going to walk away if I take four traits and they all go against me. I know I'm done for the day. I need a walk away. And now when it comes to having a smaller account and save a 1000 or $10 thousand, you shouldn't be risking $2 thousand per day? No, no, not at all. Your account size determines how much risk you can actually take in a position. So you have a $1 thousand account, you should be risking $50 a day, right? You should be risking $50 per trade at all, not even close because you take for trades are already down 20% year account at $1000 account, you have $10 thousand with each account size, you have to switch the math. So as you can see, as fast as you can make money, You can also lose money if you have no idea what you're doing. Or SYN from my strategies as well. I'm teaching this strategy how, because understand exactly how to mitigate your risks. So let me break down a straight or quick for you guys. You guys can see exactly where I got in, how fast it can drop and how I got out of that specific trade as well. So let's get right into it, guys. 22. Breaking Down: Trifecta Trade (MDLY): So let's get right into the breaking down MDL, why that trade we just took. Let's get right into it guys. So rule number one, don't fall. My strategy, of course I did, right? That's, that's the crucial rule. You gotta follow the strategy. That's the most important thing. But one thing I like about this stock is that hadn't no news, right? There's no news on this actual Stag which kinda frustrating because a lots and like to see news, it's kinda that confirmation understand why stocks actually moving. And as you've seen before in other trades. And again, this course, it, there's no news austin take that SRE but more hesitant to actually want to get into a trade buy still will take if my setup fits my technical analysis, which is a candle sticks of volume previous mover. So my size and the stock was about 4 thousand shares. So I was looking for is this tap of the previous resistance level, right? As we always look for that tip tap, it was drawn down this kinda right here and actually got filled later than I wanted to I wanted to get flown that drawdown at 234. But as we watch it go on, its sort of drought on right here, which was looking for right here. But even I missed the first one. I find out the second one right here and right there is a drop at 235. My average cost is 2353 thousand shares in the stock. My average cost is 235, so that's where I actually got in and my total amount of shares taken in this trait is sport 1000 shares. And just a reminder, for 1000 shares, every $0.10 is $400, right? So that's the math on it. So as it's dropping down, this like I actually average down on a stock. So as hit lower outlook for that previous tab or that previous resistance was. So right here, I think another 1000 shares on that tab right there you can see that took another 1000 shares, my average cost change that to 34, which means what? If I'm getting out of stock? I want to get out what price level? I want to get out to 24, right? Correct. I want to get up to 24. $0.10 below my last average down position. My last averaging down position is at 234, right? I took my last 1000 years at that previous resistance level. I'm not gonna keep adding it to 20 then to ten. That is where you actually get a lot bigger. I'm going to look at the average amount that previous resistance level where it's actually showing support. So as it drew down right here, you can see it tap that level one, a breakthrough by law, these buy orders came through. So as you can see at 230, bunch of buy orders rushed through Y because that's a huge previous resistance level. So as I was happening, continue to watch this stuff, started a drone on a little under that level, just kind of close to my actual time to get out of the trade. But never hit my StatPlus, right? And never once hit my stop-loss, which is what exactly I was looking for. It never hit my stop-loss buy once and it didn't it my stop-loss, right? And this is actually the pre-market is around when looking at a live trades on the resources, you can actually see exactly what Tom, I place its trade at all the execution orders. So you can see exactly when I took this trade, but it was around 915916. So as you can see right here, you said that rush of green orders. This is another thing to keep in mind that when you look at the level two books, a trifecta system, you understand it, you're looking at this levels, are you guys, all these green orders are coming through but it's not pushing stuff high enough. Why? Because the cell odors are coming into a lot stronger right there sorts of gap up was lot of hesitation because there's a lot of bigger sell orders on the actual bit in S, right? So they're smaller there, smaller buyers. And right there you can see a rush of 875. These are the torment of shares do not add to 0. So this, right, there's only ten shares taken here, 40 to 69 sonata movement in the stock, right? As you see on thinkorswim, we can tell it's a pre market trade. So that's where I actually bought the stock S where to actually sell the stock at. So we move along on his break right here. I'll look at so happened my position, I'll look in. So half of my position at the 240 level for quick scalping profit, something very, very small because it was a pre-market trade a lot times in pre-market is very hesitant to actually move. So as soon as I hit 240. My P&L does. So I'll tell you exactly when it's hits to 40 on the stock. So let's just watch the P and L, Right? So right now hits to 40 it look at my shares, right? 11000 years taken off. And then as it starts to move a little higher, you'll see another 1000 shares come off as well as a broke that level, you see 2 thousand shares come off. You see 2 thousand shares come off. Some I realize is only 140, and I have another unrealized of only a 120, right? So this is just scalping moves it kinda start to death with a good cushion, right? You gotta go cushion for the day. I'm taking small trades, bomb format, breakout strategy, even in the pre-market. So as I'm looking for this next break, my last 200 years were taken off when it finally broke. Close to that 50 level. As you can see, there's a huge draw down right here. Down o to 231, pass my actual original entry right at 234 I wanted to get out for actually went below this previous resistance level now making support. So if you move on, so when it broke up 40 level again, that's actually where I got out. If you watched someone hits 40, you seem to have a thousand shares, right? So right here, it breaks that level through my shares, they go down to a thousand. So now my realizes 2D dirty with unrealizable $80 in the stock price, almost up to a $100 a day for small, small scalping profit, something really quick. Bacillus, keep in mind, $3 a day is close to $60 thousand a year. If you look at it in that aspect, for someone who just wants again to trading who can make $60 thousand extra a year. I mean, that's you can't ask for more than that. Right. So I mean, you can't you can't get more than that. You can ask for more than that, but so it finishes off. You can see that I took my last dollar shares off when it broke closer that 50 level, as well as looking for, we're looking for that closer brca 50 level. So it actually can get at 48 right before that 50 level, 48, 47. What's my level to get out of? So as you can see, there's a lot of buy orders. But right here, C on a level two ounces 370 through 710, five forty three, twenty two. Watch what that does on how facet breaks when all those shares it cleared out, right? You'll see it get cleared out instantly. Right. So when it did that, as you can see, my unrelated to 130. So as you can see my last thousand shares, I took them, i less than 1000 on that break. The link for that brick in that stuck. So right there you can see it took off my last 1000 shares. So now I'm up on the day above 380, right? And so for a small morning profits scalp all I was looking for a quick morning scalping to actually get the day started and that's where I got in and out. And what can you learn from these guys? And you understand that a lot of volume comes in. You gotta be very patient and that be nervous around the volume because volume is what we need to actually trade. And if we have no vine on a stock advocacy, these kinesics have more than a 100 thousand and volume, which actually pushes the stuck up if it has a low float. So it's very helpful to understand these key things, especially we're looking at the level to the level two indicates that all people who want to buy and sell at what price. So if I see a lot people want to buy that 49 level. There's a lot of cell orders that gives me hesitation to actually want to get into stock, but I'm watching those lobes actually breaking gets smaller and smaller and smaller for that break and push past that level. And it finally breaks out. And there's actually a lot of resistance at that level. I want to get out of that trait when it finally reached my actual target where I want to get out of the trait. Those are my levels and why I watched the actual time it sails. And you'd understand that the time and sales is showing that price orders are coming in, they're green. That stocks that moving up on the candle green that gives you let hesitation as well to actually sell off by because there's a bunch of buy orders coming in that are being executed on the actual time it says, but it's not actually move the stock. So this is breaking down the stock, MDL, what you just saw. Let's get to the next lecture, guys.