The best momentum strategy for trading - BCC | Michael Katz | Skillshare

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The best momentum strategy for trading - BCC

teacher avatar Michael Katz

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

15 Lessons (1h)
    • 1. Let's get it started

      2:01
    • 2. Intro

      2:02
    • 3. Your type of Family

      2:30
    • 4. Finding the right stock

      5:37
    • 5. Repetitive patterns PART A

      3:49
    • 6. Repetitve pattern PART B

      3:47
    • 7. The BCC pattern PART A

      2:53
    • 8. The BCC pattern PART B

      5:35
    • 9. Live Trades

      3:08
    • 10. Orders and Level 2

      6:11
    • 11. Platforms and tools

      8:45
    • 12. Risk and Trade management

      7:20
    • 13. 10 outro

      0:44
    • 14. ARWR LIVE

      6:09
    • 15. SGMS LIVE

      3:15
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About This Class

Hi, I'm Michael Katz. I've been a professional trader and investor in the US market for more than 12 years now, and I'm inviting you to join me in this amazing world of opportunities, called trading and investing.
If you're new to trading, you probably are not aware, but during the Corona Virus time
the US market made a 61% jump in a few months AND broke new all-time high records over and over again.
This is why stocks like TSLA, NVAX, NIO, MRNA, ZM, and many more increased between 120% to almost 2000% so you can only imagine the potential profit you could have made.
Now in this course I will teach you my trading method that I’ve used since day one,
a method that is responsible for 81% of my monthly profit.
I’ve been using this method when the market has gone up and down, so I can easily say it fits both.
In order for you to learn and understand how to apply this method efficiently, I’ve divided the course into 3 simple steps:

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Michael Katz

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Transcripts

1. Let's get it started: Hi, I'm Michael Katz of minute coefficient on trader and investor in the US market for more than 12 years now. And I'm here to invite you to join me in this amazing world of opportunities, cold trade in any Presley, if you're new to trade in a bupropion, not aware, but during the corona virus time, the US market made us 61% jump in a few months and broke new, old time I records over and over again. This is why stocks like Tesla and VAX Neal, Barnard zoom in many more, get between an unwritten 20% to almost 2% thousand. So it can only imagine the potential profit you could have made. Now in this course with teaching my trade, when did other used since day one, I met due to this responsible for 81% of my monthly profit up in using this mattered when the market is going up and down. So I can easily say it fits both. Now in order for you to learn and understand how to apply this method efficiently, are dividing this course into three simple steps. Step one, identified the next stock that is ready to explode. Step to trade to using a proven pattern, the PCC pattern that my trade or use is what I use every single day and statutory, mandatory sufficiently to ensure that even with percent success rate, you can make money at the end of the month. During this course, I will show you to play live trading account, showing you real traits and give you the right tools to analyze your winning and losing trades so you can always continue to improve. The metadata would teach you, is easy to use and fits all markets and assets. So it doesn't matter if you trade in stocks futures for European, US, or Canada markets. At the end of this course, you will be able to apply it like a probe up, you're ready for your journey. Let's begin. 2. Intro: Hey guys, welcome to the BCC, Matthew, them glad you joined me. Weird plenty to learn in discourse. And like I mentioned in the preview, by the end of it, you will know exactly how to trade from a to C. The best strategy that I'm using every single day for the last 12 or even 30 years. Quick introduction before we dive to them materials. So my name is Michael. Cats have been trading and invest in most of my adult life. I built-in Nostra team, say created the Independent trader software to manage the trade automatically and basically maximize the profit and reducing their risk. Also been amended to more than 900. It was all around the world. So you are definitely in good hands. If you have any questions along the course, just send it to me to make his talks at gmail.com and maybe you before we begin, just few ground rules in order for you to learn properly. So first of all, write down your questions along the course. Don't wait for the day after. Just as soon as you heard something that you have questions about it, Just write it down and at the end of the day, just sent me those questions to my email. Make sure you listen to every lesson at least twice. Do your work obviously. And maybe the most important thing, start trading as soon as you feel comfortable. Most people are staying side and learning about trading, but not executing trades. And that's basically a huge gap to cover when you want to start trading. So as soon as you feel comfortable and as soon as you understand the strategy, start trading and open an account and use it even with a small amount of risk, and we'll cover that later on. But you gotta start clicking the button in order to make this theory into practice. On our next lesson, we are going to cover the momentum and trend-following. We will understand the market structure and much more searing a second byline. 4. Finding the right stock: Okay guys, so this is a tough time to quick intro. We are now ready to dive in and understand the strategy. And first thing first, how to find the right stock in those 7 thousand stocks that had been trading every single day in the US market. So how do we do that? We have 11 sectors in the US market, basic materials, financial, health care, consumer defense, and so on and so on. We have two main markets, nasdaq and the New York Stock Exchange. So how do we really find the right decison to train on every single day? We have only treat to seek starts that will perform big and will freak out parameters for the momentum trade. So we gotta have a specific rules and understanding on how to find those ducks. So when it comes to momentum, we wanna put our focus on the news today. Everyone all around the world are connected to the news and can know exactly in a single moment what is happening around them. So when it comes to trade in, we have two major news earnings. Every three months a company needs to report and show basically the data, number of sales employees, future planning and so on. And this report will make the stuck open with a GIP, upward dip down. Obviously, investors and traders all around the world will see That, will read this report and we'll decide whether to buy or sell the stocks because of those news. Other news that we will see can come from upgrades or downgrades from investor banks or lawsuits, fired CEO, byebug, overtake and so on. And just like in earnings, investors and traders will buy the stocks because of those news. So when we understand that, all we need to do is find a stock with their earnings or the upgrades or downgrades, fired CEO and so on. So how would we do that? It's pretty simple. So what I'm doing every single day, 30 minutes before the market opens, I go to the news to sites that I'm checking. It's been Zynga.com in seeking alpha.com. And I'm going also to my scanners into trading platform and also infinities. So what I'm focusing on when i'm going to the website is just find the symbol of the stock or the name of the company in the major news right next to it. I want to show you a quick live video data made the other day on our i prepare it to the market. So lets begin. Okay, so first thing first I went to benzene guy finding the headline that saying these stocks will have lots of noise around it. So remember, lots of noise, meaning lots of momentum. A lot of traders and investors that would like to buy. So looking forward those tags, I'm opening a few tabs when I'm finding a nice stocks that I'm watching. And from that point I'm going to the platform. A RAWR was one of the main companies that was there. And I'm looking for the news. And you can see it is pharmaceutical company reports super positive. And this is why you can see in the pre-market, before the market opens, you can see a major move up. Codec, like we've seen, was also in the news. A major news about that lawsuit that the actually no laws have been broken. Basically, That's a super positive to the company. And it's been moving up strongly again in the pre-market before the market even start. So as soon as I found those two stocks, I can write them in my watch list and start preparing myself of basically focus on those two starts waiting for the pattern that we will learn soon enough and then trading. So there are two ways we can watch those stocks and be focusing on them. So we want missed again, like we said, we only have three to seek starts, so we gotta stay focused. So first thing first, I'm writing down in my watch list. Ever watched me stared, I prepared every single day and deleting those stocks and writing and your stocks over there, finding the main stocks that is getting up or down and on the news. And second thing is just watch them on the chart. I have few boxes of charge, so I can watch all of them parallel. And as soon as I see the right pattern, the PCC that we will learn soon, then, focusing on placing the orders like you would see in a minute. So again, if you have any questions regarding the lesson that we just covered, please feel free to send me an email with those questions. So your homework for this lesson is preparing for the trading day. Go to the news, fine, three to six stocks, right them down and understand that the news behind them also go to the watch list if you ever trading platform, right, those tags. Put them also on the chart and watch them. You can send via presentation how you did it. You find those tax and what did you see? And I will check them and obviously give you a feedback. Back on our next lesson, we will cover one of my favorites, object, repetitive patterns. We will understand our patterns work and what exactly can we achieve from them. So once you in a second. 5. Repetitive patterns PART A: Hey guys, welcome back. In this lesson we're going to talk about the repetitive patterns, the meaning of it, and how can we use it in order to trade properly the BCC method. So Charles Dow, one of the founding fathers of the technical analysis mentioning is theory that the market is moving in a cyclical way. So at the beginning of a trend, most people are still cautious and not jumping into trend and don't put a by immediately. But as soon as prices continue to rise, the confidence is built. And then we are going up all the way to the peak moment of degreed when most of the people, not just traders and investors, just regular people, did never hold the stock in the alive, jumping in and want to take advantage of this blooming era. But this is the exact moment when we see the smart money that we will cover in a second, started to sell their positions to the dumb money that we will talk about again in a second. That dumb money buy-in at the top, while smart money is selling at the top. And from that point that trend dropping down, we still have hope that people will still want to buy and think that the price will continue to rise. But at the end of the day, we're dropping down majorly all the way to the bottom. And this is the play with the greed and fear momentum. Know Charles Dow showed us discharge about a 100 years ago, and you can see that it's still pretty much working day. Now look at this chart representing the SPY, the ETF for the S and P 500. And you can see that the chars to your work perfectly for all those crises that we had a 20 years. For example, in 2 thousand the.com crisis when most people thought that the internet is about to explode, then lots of normal people, regular people started to buy and technology stocks at the end, as you can see, it was a major crises because they bought it at the peak where degreed came to play in, not there and not there. Obviously the ROM. We also added in 2008 the subprime crisis, when lots of people started to take mortgage on normal people's bought stocks both either even two houses or treehouses. And at the end it became a bubble. And we all know what happened in above. Where the same thing in the trade war with China moving majorly are almost ten years of a booming market. And then when we reached the peak, when no one thought we were going to drop down, but most people thought that the price will continue higher than we had that drop. And dissenting occurred also in the list prices on their coronavirus crisis. When we reached a peak. Again, most people jumping or wanted to grab any stocks that are available. And at the end, the price dropped majorly dumb because of the corona. And right now we're reaching another high. So you can see that the Charles Darwin's theory work perfectly. And this cycle is happening every day, all day, and he doesn't meet a few using one-minute chart or 15-minute chart or even a weekly chart. At the end of the day, you will see the cycle all over again and in any kind of stuff that you will watch. So as soon as you understand that the market work like these, then you can start take advantage OV. 6. Repetitve pattern PART B: So like I've mentioned before, we have two players in the market. One is the smart money and the other one is the dumb money. Smart money, institutional banks, heavy investors like Warren Buffett, hedge funds and so on. The one that actually moving the price and the dumb money is anyone of us would have abolished stuff because of rumor or tape. Because he really understand what's happening in that company. So most of the time you will see the smart money that making money and the dumb money that loses money like entering at their peak or selling at the bottom. But at the end of the day, if we understand the how the smart money works, then we can actually follow them and execute accordingly. So as you know, one picture is worth 1000 words. Let's look at some charts to understand the how. And now they're repetitive patterns actually worth. So we're looking at the Dow Jones from 1970 all the way to 1985. And you can see on the chart that the blue line right here is acting as resistant. Meaning every time we reach that line, seller's became much aggressive, much stronger, and drop the price rapidly. But there was a time after four attempts that the price didn't hold and it became support, meaning buyers k-mean, and push the price higher. Now remember this chart again from 50 years ago and look at those chart that I will show you in a second. For example, GM E GameStop, one of the famous companies in the US, look at this resistant level, the blue line, we tried to break it, break truly two times. We could entail the seller's became stronger and drop the price rapidly. But then on the third attempt, we actually broke through it, retested as support. And from there, the seller, the buyers push the price, say Higher. Ed is saying things here. Visa, 15 minute chart. By the way, if you knew through charts and trading every bar that you see here, for example, the representing 15 minutes of training. We will talk about the in our next lesson. But you can see here resistant level where the settlers became stronger twice. Then we broke through it, tested and the bios k-mean, meanings support level and all the way and push the price all the way up. The same here at QQQ, they ETF for the nasdaq 100 twice, got resistant form the prize. Then virus broke Troy it, it went down to check it again, retested and became support. And from that point on, we went all the way up. So as you can see how I wanted to show you a variety of stocks and ETF also with timeframe. So you can see that the cycle, the patterns are repeating themselves over and over again. And all we need to do is recognize it in the right stock. We will work on a different, repetitive better, but you get the point. The market is trading itself. You just gotta recognize when and how. So. On our next lesson, we will talk about Japanese candle sticks for those of you who are not familiar with it. And we will also cover the BCC bed and the one that we are using in order to know when to enter the trade and obviously where to put our stop position and so on. Assume in a second. 7. The BCC pattern PART A: Okay guys, so this is a two. We reach the BCC pattern just before we dive into it. Let's cover the basic of candles six for those of you who are not familiar with it. So that's called a candle sticks or Japanese kinda six. Positive Canada's mostly will be green. The open would be at the bottom and then the close above it. And as you can see, shadows or tales that we call it lower. The lowest price we'd been traded it, or the highest one. And you can look at it as a candle that representing now 15-minute traded time or one minute or ten minutes and so on. But at the end of the day, the open will be lower than the clothes on a positive candle. Let's put some prices. We opened that $50, went down to 49, went all the way up to 55, then went a little bit lower to the closer, let's say at 53. So this is a positive candle. Negative candle, just the same but the opposite. Open will be above the close price. So let's say we opened at 50, went up to 52, went all the way down to 45, and closed at 49. So as you can see, we have a red candle that represent the negative candle or a green one that represent positive Canada. Now when we come to talk about the benefits of working with the BCC pattern on or basically any kind of pattern. We have three major benefits. The first one, it's super easy to identify, like you saw in the previous lesson. You can easily identify the pattern. They're resistant level and then the so it's easy to identify. And we also have simple rules in order to understand the this is the right pattern of not. Second thing, it's suits all timeframes, meaning that you can trade it in a one-minute chart, or 15 or five, or a daily chart or weekly chart you can play with it. And the third benefit is optimization in statistics. You can take these pattern looking at it for the last year, for example, and see what happened. So you can understand that you can analyze it better and understand when it will work better and when not. And maybe one of the most quotes from Bruce Lee that sum it all up. I feared not the man who has practiced 10 thousand kicks once, but I fear the man who has practiced one keep 10 thousand times. If you will, continue working with the same pattern over and over again, you will get better at it every single time. So keep that in mind. 8. The BCC pattern PART B: Okay, so first of all, we want to see a major move up that's basically the steep. As you can see, it's repeats itself in all those PET. And this is basically the same pattern, just a different variation of it. So you can definitely print this slide and put it in front of you while you work here at the beginning at least. So as you can see, we have a major move up in all those patterns, then we have a consolidation moved, that's the flag. So it could be either one candle or up to four candles. And as you can see, all of those Candace are actually appearing at the upper level of the steep. So you can see we have a consolidation here. We have it here. Also here, the same here and the same here. It's all happening at the upper level of this stick and not at the bottom were the middle. So this is a major rule that we wanna cover. So first thing, a major move up that showed me that the reason momentum in that stock. And the second thing, consolidate to the right. Now before you enter into trade, you gotta check this list, high volume on the move up. So on those green candle, we wanna see high volume. A volume in traded means the amount of shares that switched and between buyers and seller a particular time. So for example, if I'm looking at a five-minute chart that every bar represent five minutes of trading. And I want to see in these five minutes of the movie up, I want to see a high volume, meaning lots of traders that switching sides between buyers and sellers. Second thing is a low volume while consolidate. So basically we don't wanna see sellers becoming aggressive while consolidating. We don't want to see the price dropping down majorly. We want to see a solid moved to the side and nothing more than death. Think about it like a sprinter. Run when the first move up, major sprint drug, then we're catching your breath. That's the consolidation part. And from that point starting again, this rounded, we want a chump. Consolidation appears, like I said, at the upper level of the stick and not more than four candles in the consolidation. So it doesn't matter if I'm looking at one hour chart that every bar represent an hour of trading. I will see a move up then not more than four candle in this consolidation. So let's look at two examples of real trades that I made. So we're looking at AIR WAR. We've seen these tasks earlier in the previous lessons when we did the training preparation for the day. So as you can see, one bar, one minute chart, meaning every bar represent a minute of trading. The first candle is the major strong candle to the upside, that's the stick basically. And then we have the consolidation move. Not more than 44. Candles did move in sideway. Now, as you can see, when we have the bar, the first bar that going up, look at the volume right here, majorly going up as well. But on the consolidation move, you can see that the volume is much, much lower, meaning there, and no big sellers that are coming in and troubling their position. But just really just before the next pub. So this is the reason why I jumped in and traded AIR WAR. You will see the live traded I made later on. And as you can see, when we're want to buy the stock, we will buy when we're breaking true this consolidation move and our stop loss price will be at the bottom of the consolidation just below it. And we will cover that in our next lesson is what? One were traded I made the other day in EHR in a five minute. I mean, in every bar that you see green or red represent a five-minutes trading. And as you can see, we have a nice momentum. Move up. That's the steep going up strongly with high volume. And then on the consolidation move you can see a much lower volume. Bought it above the consolidation with stop-loss below and the consolidation and from that point, it went up majorly. You will see the live trade also on our next lessons. This is exactly what you should look for when trading the BCC. So first of all, you look in four major move up, then you look in further consolidate. And you would like to bite above the consolidation with stop-loss below the consolidation. Now your homework obviously for this lesson, is finding those stocks after you scan it with the news, before the market opens, then watch them and find the PCC pair. What you need to do is just send me screenshots of those charts, send it to my email, and obviously I will give you a feedback on them. So on our next lesson we're going to see some live traits did I made with the BCC pattern and then talk about risk management and trade management and much more. So I'll see you next time. 9. Live Trades: Okay guys, welcome back. And in this short lesson we're going to see some real traits that I made. It's super important not to watch the screen while it's static and just standing there. You wanna see the candles appearing and then teach your eyes basically to recognize it in real time and not just in a presentation. So this is why I recorded those traits for you. So you can see exactly what I saw when I took those trades. And let's have a look. So differs trade, we're looking at Desert p, t o n, that's a symbol of the stocks two-minute chart. As you can see it opened with we the strongest momentum move, look up their high-volume getting into trade where lots of people want to buy this stock, then this is a great sign. Great moment to move to the upside. And the second thing that we wanna watch, like you already learned, is the consolidation. We wanna see on moving IDO one candle sideways, or at least up to four candles. So you can see it's moving sideways, low volume compared to the previous one. And from that point on, you ready to jump into the trade and buy the stock above as soon as it breaks through that. So you can see profit right here and at the bottom, my entry pricing by Anxi prize. And if you look at the timeline and you can see that it only took me 30 seconds to get in and out of the trade. And this is the profit I make. And this vial love so much the BCC pattern because of that momentum that pushing much higher. And again, as you just saw, it's pretty easy to recognize this pattern and stuff we want to trade. This is another traded I do cook is GMS in a one-minute chart. First thing first you can see the strong momentum move high-volume, jumping in. Lots of people want to buy it. And one thing we want to look for is the consolidation. The sideway move at the upper level of the stick of them, strong move up that you jump in as soon as we break through this consolidation. And again, you can see my profiteer realized almost 500 and then I had about an $80 more at the end of the day that I took from it. So again, the BCC pattern, simple to you recognize, simple de-identify and all you gotta do as soon as you understand which talks of potential to do a major move, you gotta watch them, look for them, move up, consolidate, and from that point, and jumping, and take your profit. So your homework for this lesson is just watching the screen and looking for those patterns while they occurred in real time. Our next lesson will be all about prices again, orders, make sure you watch it at least twice before you continue further more. 10. Orders and Level 2: Hey guys, welcome back. So in this lesson we're going to cover the orders part in trading. It could be a little bit complicated for some of you here for the first time. So just watch it a couple of times until it sits perfectly. So let's understand first, Audi orders actually work. So when I'm sitting here and I'm sending the order, I'm sending it to the service of my broker and my broker send their same order to the market computer, let's say the one that is at the bottom of the New York Stock Exchange. On the other side, you have an investor. Same thing. You can use either the bank, the broker, and he's also send in. The end is sending the order to the market computer. Usually when you're an active trader, you will pay less fees and commission to the broker, comparing to the bank that will take much more. So when trading, we gotta understand that we have order Bu, core market debt or level to the beat side, represented buyers and they ask represent the seller's. Let's take the first option and understand it. So we are looking at Epel, less traded price it on a 10005. If I'm using a by market order, that means that I will buy immediately from first seller in the book. So at the moment the first seller in the book is at a 100.10. If I'm sending a market order to buy right now on market order, I will get the first seller, Okay, I will buy from the first cellular and the price, the less traded price at Apple will be at a 110. This is actually how the price works, moves up and down. On the other side, if I'm using sell market order, let's say you're already in the trade and right now I want to sell my shares. So if I'm using a market order, I would sell immediately to the first buyer in the book, and at the moment is tending, we're dollars. So i will actually get execution add-on without even if the last traded price was at a 10005, i will actually get executed at a $100 because the first buyer inline is standing at a 100. I'll leave me toward it can be used if you want to buy below market price. Let's say Apple is traded at time 05. I can place in order that it 9995 I want to buy. So if the price will drop to my price, I will get filled at 9995. On the opposite side, a sell limit order usually used to take profit. So let's say I'm already in-app. Arabella bought it at 90 and I can place an order to sell it at a 100.20. So we found placing this order right now, nothing will happen. Only when the price will reach 120, then I will sell my shares. And our most important order when we want to buy a stock is a buy stop limit order. That's a future order. So I need to fill up two parameters. One is the stub, send the order when reached its price and limit, activate a limit order. So for example, if I want to buy a pill only above a 102, and right now it's been traded at a 100 05. I can place an order by Stokely made ed a 102 and the limit would be, let's say on written 2.05. So I'm basically telling the computer send the order at a 102 from the broker to the market computer and activate a limit order all the way to 05. So I can get feel that 01020345. So let's see if the on a real example, when I traded SG M, S, I sent an order called stop limit, a bys stopped limit. And my stock price was 20 01, meaning send the order from the broker to the market computer at 2601. And my limit price, my top range Price did I'm willing to get into trade was at 26.16. So I gave it all at a space between my sending price and my entry price. So I could either get filled between 2601 all the way to 2616. Most of the time, my limit will be not more than $0.08 above my stock price. But if we're talking about the few first minutes of training, usually the gap between the buyers and sellers, the difference between the prices are higher. And this is why I gave it a little bit more room, a little bit more space. Now remember that in the BCC paran, we don't want to jump the gun. We don't want to get into trade before it broke to let's say the 2601, the consolidation. If we will enter at the consolidation, we might see the price dropping down majorly After that. We only want to jumping after it break through the consolidation. This is why I'm only using stop limit as my entry price because I'm using it as a future price. I can play. They're at anytime. When it will reach it. If it will reach it, then it will activate it and I will be industry. It saved me lots of money using this top limit price instead of using a market order and so on. Ok, so on our next lesson, we will still continue working on these orders type and we will actually place some orders on the trading platform so you can see exactly how it's been done. Make sure you watch this lesson at least one more time. So you will soak it all in and I will see you in a minute. 11. Platforms and tools: Hey guys, welcome back. In today's lesson, we will cover the trading platform. I would show you exactly how to place orders so you will be able to do so after you found the right stock and the BCC pattern. If up until now you're enjoying this course, please give me a feedback in a thumbs up and write down a message, will know exactly how do you feel. So like in any other field in trading, we also have our tools. We gotta know which tools do we have and how effectively use them. So we have the trading platform that the trading platform will give us the option to send the orders. That trading platform belongs to the broker. Usually. And with that, we can send our orders and he can send them to the market computer like we learned before. So we did trading platform. You can either send the orders and manually manage the trade or you can send the orders and let our robot and automatic machine and manage the trade for you like I do, like I mentioned in the beginning. And develop the TAT they independent trader, That's a software that working with the broker, interactive brokers. And basically what it does, it's many. They trade for me. I only find the stop and send the orders. And from that point, as you will see in the live trace, their system actually does their hard work for me. The second tool that we will use these analyses platform, it could be your trading platform as well, but most traders using a separate platform for a chart analysis then the Watch List in scanners. And this is exactly what I'm doing as well. I'm using a trading platform to send the orders. I'm using software to manage, automatically manage my trade. And I'm also using analysis platform to the chart analysis in the watch list. So let's check them out. Okay, so our first platform will be their analysis platform, the chart and on the market watch and the watch list and so on. So what you're looking at right now is the main screen. What I'm looking at is the QQQ, the TF For the nasdaq 100 in a one-minute chart, then the SPY, the S and P 500 in a one-minute chart as well. They I WM in one minute chart i w m is the Russell 20082 thousand small caps. And below them you can see a five-minute chart on each one of them. So SPY five minute chart, cuz in IWRM, I just edit also the pre and after market. So what you've seen, the gray background is the aftermarket of yesterday and the pre-market of today, the pre-market in the aftermarket. So this is the main screen that I'm watching at the beginning. Then I have two more charts that I'm looking at. One is the stocks that I'm analyzing. So let's say a CV and a, that's a trade I made yesterday, five-minute chart with the pre-market, one-minute chart, without it a daily chart in every bar, it is a day of trading and the SPY S and P 500. Five minute chart. So what I'm watching here or what I'm doing here is analyzing the chart just before I write it here in discharge when I'm watching it and waiting for the BCC beta. So for example, here you can see I have two stocks at the same just different timeframe, one-minute chart and two-minute via ARM. Arm, one minute and two in it and so on. I yesterday when I looked at the CV and a what I did is just watched it at the beginning of the day. And as soon as I saw the pattern, it was actually in two minutes. He will see the live trader later on. And when I saw it here, I took that trade with a stop-loss Syria and all the way up. And yet now you will see it in their recorded the live trade. So like I said, I had the mainstream that I'm watching all the market moves. Then this specific stuff in it I'm analyzing, and then the watch list that I'm working with looking for the right pattern, the BCC beta. So other than that, I have also my scanner here, the four today, so stocks, debt I'm watching every day. I'm switching them and changing them every day so I would know exactly which stops I want to watch. And if you're familiar with this platform. So you can also use those scanners. For example, percentage change gainers and percent change losers to give you the most momentum stocks of the day. Our next platform is the broker platform where we have in account and where we want to send our orders from. So basically I have two charts. Don't really need them because I'm doing all the analysis, Think or Swim. But I kept that just mostly for the live trades and so on just to record it. So you can see here my screen to charts. You will see in a minute the orders and, and also at the bottom mirror and also if some scanners here, I usually don't use them because he used this candidate. I have thinkorswim platform. But if you are working only with one platform, you can definitely use those scanners to find. They get up and get down. Stocks like we mentioned in the previous lessons, are third platform will be the T IT, they independent trader. That's the software I developed. It's actually connected right now to interactive brokers to this platform. And D4 will send some orders, let's say V and a. I am putting orders at 235, stop limit order. As you can see, I'm using a stop limit order. Meanings send the order at 235 and I want to get in the trade from 235 all the way to do 3515, my stop loss price. The point when I wanna get out of the trade in case it's not working, let's say it would be at 234 in $1. And clicking ok and watch this. When I'm clicking send, you will see it's sent to the interactive brokers, their platform. And right now you can see my orders waiting in the system. So basically, the main thing about the inter independent trader platform, I can place the orders through there like you just saw. It's doing all the calculation for me, meaning how many shares to buy and the risk that I'm taking and so on. And it will also manage the trade for me. So when Time to get out of the trade with half of deposition, it will now want to do so and basically we'll manage it automatically. I don't need to do anything from this point and it simply as death. So obviously I don't know which broker you use them, but I can definitely recommend interactive brokers you procure to trade the US market. And for the analysis part, I can definitely say that I've been using thinkorswim from day one. And this is by far the best analysis platform there is. So what I'm doing is analyzing in thinkorswim, sending the orders through the independent trader, my software and my account sitting in interactive brokers. For those of you have in account wheat interactive brokers and want to try for 14 days. The independent trader just send me an email and I will send you a username and a password. You will fry it for days. You will probably going to like it. And from that point you will decide if you want to continue working with it or you want to do it manually. I will also put in this course my workspace file for thinkorswim. So in case you haven't thinkorswim platform and you want to work with it, it would be much easier for you to do the whole process correctly. So in our next lesson, we will cover the managing risk and the managing trade part, probably the most important element when it comes to training. I'll see you in a second. 12. Risk and Trade management : Okay guys, so we probably reached the most important element when it come to trading. And I'm talking about risk management and trade management. So basically there are two main rules in order to become profitable. First thing is understanding the ratio point, then the success rate. The ratio point is the difference between a winning trade and Lucent rate. Basically, how much money do I willing to lose compared to how much money would I make if the trade would work for me? The success rate is pretty simple. Number of women treads versus losing traits. So we want to stay at least and success rate, but definitely we can reach much more as long as we not compromising, not breaking the rules and finding an entering only a triple a setups. So when it comes to ratio point, the rule is pretty simple. On every dollar that I'm willing to risk in a trade, I want to make at least a $1.5, simple as dead, on every dollar that WE scheme, I want to make at least a $1.5 if we'll do that. And we will have 50% success rate, we will get money at the end of demands simply as death. So for example, on a winning side, we have number of trades, 50, risk trade $300, take profit at $1.5450 million. At the end of the day, 50 trades multiply by foreign within 50, that's a 20 to 500. On the losing side, we have 50 trades as well, 53% $100 pair risk that we are losing. So 50 multiplied by 300, that's a loss of 15, $1000. So we'd have 50% rates, success rate, we can reach a $7,500 profit only because we are taking 1.5 on each winning trade, comparing to the losing trade. Simply as that. Now, obviously our next challenge will be pushing hired the success rate two fifty one, fifty two hundred fifty three, and increasing the ratio instead of taking your profit at 1.5, take it that 1.61.71.8 and so on. Obviously, as you push in the ratio higher, meaning 1.67, and so on, the success rate will be lower, okay, so this is a balanced that you will have to find. A normal trader definitely withstand the ED 50% success rate, but it can also reached 1.71.8 and so on. For example, working on 1.9. So every dollar denim leucine and actually making a $1.90. Okay? And at least right now I'm standing at 54% success rate. So my profit comes from the 1.9 on those 54 traits success rate. So how do I actually define the risk in my trade? So most trader are risking 1% per trade out of their accounts. So for example, if you trade in. On a $10 thousand account, usually risking 1%, meaning a $100. But I'm actually against that. And I'm using my sleeping point, meaning that price the money that I'm willing to lose, that I'm okay with it. So for me, is a trend with dollar for someone else is a $500 for someone else is $50, that's fine. So just find your sleeping point. The risk amount of dollar that you are willing to lose. You want get upset because of this and you want over trade or trying to trade route to revenge and so on, just find it. And it could be definitely, it could be even $5 for the beginning or $20 for the beginning. That's fine. After you would show yourself that you know what you're doing, you can increase that. So don't worry, don't try to rush anything. So how do you calculate the risk? Most investors are basically saying, okay, I'm investing $5 thousand in stock. But we as traders are working a bit differently and we're talking about the dollar risk. So basically to work with the dollar risk, we need to calculate the number of shares. The formula is pretty simple. The dollar risk that we're willing to lose in this trade divided by the stop-loss size will give us the number of shares. So for example, as you can see in this traded I2k on SG m s, I'm risking $300 divided by $0.80. That's the difference between the stop-loss and the stock price. That's actually 81, but the platform is calculated from 2626001, so it's $0.80 and that's the number of shares that I'm actually buying. So if I would have lost in this trade, would have lost those 375 shares. And basically that equals two and we're dollars. So this is the risk that I'm willing to lose over basically my sleeping point at $300. Okay, so before we continue to see some live trades from a to Z, I want to sum it all up so it will be very clear. The first thing you need to find is derived stock. We talked about it. You want to go to the news, you want to see deadlines, you wanna see the one that everyone is looking at. The second thing is you watch it and you wait for the BCC pattern, meaning a nice moment to move up, then consolidate between one candle to four candles. Low volume at the consolidation, i volume at the pickup. And then after that, you place your order, the stop limit order by stopping the daughter above the consolidation price, your stop loss will be below the consolidation and your take profit, you will be at least 1.5 of your risk. So if we're talking about this situation, 26.200125, that's $0.81. And I wanted to be at least 1.5 above it. It means that when the price will reach 2722, I will be out of the trade with the money in my pocket. Obviously, as you get better in trading, you can take your profit a bit higher than 1.5, like I said. And you can also take partial, let's say sell 90% of the shares, then live 10% to run all through the day, for example, and so on. But let's start with this focus on taking your profit at 1.5. When you, we'll see you starting to make money, then you can continue furthermore. Ok guys, so our next lessons will be all about live trades and live preparation before the market opens. And as I trade those stocks, I will see you then bye-bye. 13. 10 outro: Okay, so if you breach that part, that means that you already know how to treat the beak CC pattern. So first of all, let me congratulate you on this one. I hope you've seen them all the lessons before. It's tend to be already your onward. If not, then if you have anymore questions, just feel free to send it to my email. Besides that, continue watching on Facebook, YouTube, and Instagram to keep you all up to date and show you new traits that uptaking. And you can ask questions regarding depth as well. Just before we finish, please give me your feedback on discourse so I can continue to improve for the next student. Hopefully it will be 5-stars. I wish you lots of good luck and see you. I am doing here. 14. ARWR LIVE: Ok guys, so we are not watch eaten alive, traded I made on a RAWR. You already saw me prepare for new trading day with that stopped when we cover the news behind it. And right now I'm basically waiting for the beat CC paradigms. So put it on a chart and just waiting. And as you can see, I'm starting to basically put my order, Xin Cindy order placed the order, but I'm not sending them now. I don't have the BCC pattern yet, but I just preparing myself because I see that it's reaching the $42 of round number, not the route number is basically resistance, so it should stop there and baby, from that point it will create the DCC better. So add the orders, but I didn't send them yet. I have the nice are meant to move up the $40, the blue line that you see there, it's support level foam, the daily chart, also a great L basically. And as you can see, we start in the consolidation, so the 42 will be great. I have a nice consolidation right now and I'm changing the numbers accordingly. So 40.80 will be my stuff blows in a wedding to send the order. As you can see in the TAT, the independent trader just waited for the close of the candle. If I sent it, your orders are not live in the system of interactive brokers. And right now I'm just waiting for it to break through that level, the 42 levers orders in my system, but I didn't get filled yet. I needed to break through the 42. It's getting closer. We'll get the volume, the low volume in the consolidation while consolidating, comparing to the first momentum move on. The price and the volume is well, and right now I'm just waiting for exploding and above the 42. In the meanwhile, while I'm waiting, I'm going scanner. I have few scanners did I built and also in that system, that thinkorswim system that we discussed in the previous lessons. And basically what I'm looking for is a momentum, a strong woman to move, maybe a different stock when we create the BCC patterns. So I'm just waiting and just scanning right now when analyzing on my second screen. And so you don't see it here, but you can see the screw in the scanner and you can see me just done a flipping between stocks still weighed in on a RAWR to break through the 40, to look at the low volume in that big red candle. And this is amazing for us because a big red, they're supposed to be with a high volume, but it's not. So this is great news. And also look how strong big green candle just championed the buyers are coming in full power, really getting closer to that $42. And that's a got a pump up above 40 to almost reached 43 a little bit more than debt, but I didn't get field on district. As you will see in a minute in the theater. It says see exhale cancel. That means that I tried to get filled between $42.4215, but I still couldn't get any shares because the pump was majors are just very strong. So I didn't get filled, but I understand that there was another chance to get in some placing a new orders on AIR WAR on 4240 with a stop-loss below read, because I understand that basically we still had this momentum in that stocks or 4240, I'm about to send the order that see in the system. You will see it in a second in the interactive procured account. And okay, it's now run. So I mean, I get feel that mnemonic appealed and India trade. You will sit, you can see my blue, a triangle mixes and Garfield. And obviously you see the position there. And from here I'm just letting the independent trader that DIT do their art world for me. That means that it's basically waiting for specific price to split my stop-loss into to stop losses, then later on, pushing to stop losses inside the money. So, and it will take my profit and the Meanwhile about $60 in profit. Nothing to write home about. And basically just waiting continues scanning for new stocks, opportunities, as you will see in a second. And like I said, they're FedEx, well, and the Stuxnet pushing hired than taking a little bit of a drop. Again, nothing to do from here and there aren't hard dissolved form. So basically what you need to do is just find the right stock, then find the PCC pattern, and from that point, let the system do their art work for you. So I already got field on the AR WR realize $271 is a conceivable bred a triangle represents Field and I got field on 4433, was supposed to get out of 4408. But actually the system actually took a little bit more. War didn't end when he sees more profit for me because they also written behind. So I got field. I'm happy on a RAWR, like I told you about in physics as well. $50 in profiting and speak. Right now, it wasn't the best BCC setup. So a to Columbia, a $100 risking FedEx. Hopefully you learned a little bit more about the PCC pattern and the flow of the trading day. I'll see you in the next video of curriculum. 15. SGMS LIVE: Okay guys, so we're now watching a laboratory did and made an S GMS again, we saw in the previous lesson not to prepare it to the stock. And they did some exercise in regarding to death. But now you can see the light tree. So as you can see, jumped up with a nice momentum, get it's at the bottom left. And what you need for a one-minute chart and also wanna two-minute chart. And I'm looking for that bed of the beak CC paradox. So I'm already starting to placing my order is not sending them yet, but placing them definite. I can see it's led to a round number 26. I'm gonna get feet above the 26, so 2601. But I'm not sending the order at the moment because it's still got em the pattern I'm waiting for the consolidation that we can see right now, a carrot. So we add a nice momentum, move out and then we started to consolidate. All the afterword D scandal will close. Only then I can send the order would close above 26. It's not my true age and I won't take it. I'm only waiting for my setup where Curiosity super important, noted above 2601. I want to get in my StatPlus when he 5-20, I sent the ordered 2D interactive brokers and count. And right now we're just waiting for that to appear. So you can see you in my account in interactive broker. You can see the orders and I'm waiting for it to cross that price and get me in effect right now. I mean, the trip. So I got field when he seeks 01. And you can see my position. You can see we've got field a little bit tired and 2601 actually, but I'm still in that trade right now, not doing anything besides letting there a TAT independent radio work for me. So I let it run and you will see how it goes pretty easily. Look at the volume, by the way, in the consultation, much lower than the previous volume there high volume that we got on the pop up. So this is also great for better August. So as you can see, it went down a little bit. Not too my stop those but then got deck up strongly. No, I mean, profit almost $300 and that's it. I got my first target out, it's 2757. You've been $0.05 on Barbie and also the BAT made that happen for me. And they got almost I was still running. And I'm waiting for them to automatically executed when the time B, Hopefully, this lesson to help you and will continue to improve you as well as you can see, it's not a big bill at the end of the day. As soon as you understand the kind of the main rules for it, then it's pretty easy to trade it and succeeded with it. So I'll see you on the next lesson. They care for another.