[Free Webinar] An Effective 'Second Trade' Strategy

Okay perfect so I guess we can start. Topic  of our lesson today first of all let's we just   say that uh we're gonna do this mentorship and  it's an open mentorship so you're very welcome   to ask questions there's a lot of things you  can or may ask and let's talk about everything   that you feel like we should talk about but  let me just start with something I want to   bring up a topic that I think  is very very important for   for each and every trader it has to do  with quantity management and I'm going to talk   about the trade that I had today with Tesla  it was one of my successful trades actually   although I had three trades in Tesla this morning  and uh two of them failed that's the part I want   to talk about how do you take your first trade let's let's you know start with how did I pick   Tesla and then what do you do with your second  trade and then what you do with your third rate   quantity wise that's a topic of my lesson today  so feel free to ask any questions you like and   let's start and talk about uh um  what I believe is a very important issue   so first I walk into my  computer pre-market time usually I do it at around   one hour I start doing it at around one hour  before the trading session starts I usually do   it anywhere between 30 minutes before the market  is open and one hour before the market opens   somewhere in this time frame that's what I do the  first thing i do is take a look at the S&P 500 now   take a look at the S&P 500 let me put this window  a little bit higher here so you can all see it    more clearly so here's the S&P 500 you can see  several months back now what's the first thing   you see when you look at the S&P 500 and a very  clear uptrend a very very clear uptrend we are   trending higher now of course I could uh take it  further and we could this does not even   this does not include the corona times now you  can see the corona times where the corona crisis   started last year so look at this huge move  down and then we're seeing the the recent move   hold on second let's take concentrate more on 2021 and you know somewhere   let's start somewhere at 2020 and 2021 we're  seeing a very very very clear uptrend now I always   take a look at the S&P 500 before I start trading  because i need to understand where we came from   and where we're likely to continue now although I  I guess I feel like most of you that the market is   too extended we shouldn't be here I mean these  are corona times markets supposed to be down we're   not supposed to be going for new highs and we  did reach a new all-time high today so although   that's the common feeling of all of us traders  we need to ignore it we need to ignore it   because it only takes one look at the market you  never find the market we never fight the market   it only takes one look at the market to see what  a very clear and beautiful uptrend we have now you   take a look at the S&P 500 you see this beautiful  uptrend that you just don't find the market you   expect the market to continue higher you look at  uh the pre-market gap and you see that the S&P 500  is starting at around 0.5 right now it's up 0.85  so we are trending higher today and it looks like   we will continue moving higher and again if I  go to the fundamentals here who cares about what   I think who cares about the fact that I think the  market should come down who cares about you guys   think some of you thinking that the market should  come down the fact is more people are at home more   people have nothing to do more people are opening  I don't know robin hood accounts getting my   money from uncle sam putting up in the market they  don't know how to short they only know how to buy   they're buying so I guess you know if I need to  find an excuse why the market's moving higher and   keeps moving it's because more and more people  are involved in investing and in trading and in   everything that has to do with that so if you take  a look at the S&P 500 we're moving to new heights   and we do not argue so you look at that and then  you look for opportunities so I usually look for   my top 20 list now if you take a look at my top  20 list I'm taking a look at the biggest losers   the biggest gainers and the most active stocks  for some reason I can only see here one of the   lists anyway so I what I do pre-market time  I start looking at the losers losers of the New   York Stock Exchange (NYSE) so I'm just going to click  all of them and all the new users of the Nasdaq   and I'm going to be looking for the biggest gap  downs so the fact is today when we opened up   I mean pre-market time when the market  was getting up I do not expect to   find and a lot of you a lot of stocks  that are gapping down well I did find   MVIS was it hold on a second let me see what it's  doing now MVIS is what is yeah it's down 17 so   that's the only one I found today I didn't even  bother to take a look at the news stock is   down 17 a pre-market time it was at 10 it was  a beautiful opportunity for short yes of course   here it is you see in the list of the big losers  you can see it right over here so just one click   of that button and immediately you can  see the chart this is a daily chart of MVIS and   so I just you know prepare pre-market picks but again that's the only uh pre-market pick I   saw today the only one I posted pre-market time in  our trading home and it's the only one that looked   promising and it did do a great job personally  i did not find a good entry point I know Scott   took it for the short side so it worked out  very well it was a beautiful gap and go trade   but sadly I did not enjoy it myself I was  too busy with other stocks today well I did   concentrate on the stocks that did move  up why because the market was gapping up today   S&P 500 started with 0.5 percent Nasdaq started  0.8 I believe now it's one half percent up   so I did concentrate on the long side now if  you take a look at the long side you will find   somewhere no actually I did not find it on the long  side that's a good example in fact if you take a   look at the longs at the gainers I'm looking for  Tesla here I can't find it you see I can't find   Tesla so Tesla is not on that list but if you look  at the active stock pre-market time active stock   you will find Tesla you will also find a few  more candidates that we traded today like MU   and other stocks you can find MVIS as well here so  on the active side you don't know if it's moving   up or down but of course you can just click them  and watch so pre-market time Tesla was in   uh was gapping up now so I start my day by  looking at the S&P 500 always the S&P 500 I'm   also looking at the Nasdaq 100 so  I'm getting the feeling of what is about   to happen today what should I concentrate you  know me I prefer going for the short side right   I prefer shorts works better than longs you know  fear is working much better than greed and stocks   are coming down 85 percent faster than they're  moving up so that means that your chance to   have a short winner is better than to have a long  winner anyway the market's moving up I should   concentrate on stocks that are moving higher I'm  looking for long opportunities I posted a few of   them one of them was Tesla I think I posted  five or six long opportunities anyway one of   them was tesla because it was on the list that's  it now i do have my own list as well stocks that   recently moved up stocks that recently i liked the  daily i couldn't really find anything interesting   there today so i concentrated on the top 20 list  and if you so again if you're wondering how i'm   looking for my stock that's it it starts there  so i'm first thing i do is i'm taking a look at   the s p 500 and i'm looking at the beautiful  upside gap uh the fact that we're moving to   a new all-time high we started at the new  all-time high and then i'm looking for   my picks so i'm looking at tesla and again  that's the tesla's daily now if you take   a good look at this red candle you can see  that i did think tesla should move up today   why several reasons first of course the market was  moving higher second a lot of people are noticing   tesla it's a big company you want to trade  stocks that a lot of people are noticing because   you know as technical traders it doesn't help us  to be the only one who's looking who are looking   at the stock and thinking well it should move  higher that nobody cares about us unless you   nobody cares about this trade unless you have a  lot of people thinking the same way as you die you   do i mean the whole idea of technical analysis is  a self-fulfilling prophecy really because there's   a lot of people who think that the stock should  move up therefore you will have people helping you   so you look for a stock that you think should move  up and i'm taking through the s p i'm getting the   feeling that the market should move up now i'm  looking at tesla tesla's gapping up so what   happened recently in tesla well tesla was under a  lot of pressure it did come down but then look at   what happened it popped up again moved up now i  have a higher low you see i've got a higher low   than this one recently lower lows lower highs  now i have a higher low and it seems to me like   tesla is about to break over this recent tire and  move i still believe so i mean technically tesla   right now to me it looks like i mean possibly  a good swing trade i don't know to me it looks   like tesla is likely to move higher but anyway  it started even better than what it is right   now because tesla's now is down but it started  with the gap up today so i look at the daily   pre-market time and i figure well tesla should  be noticed by a lot of people um i personally   like the trading tesla my success rate in tesla  is idea if i if i dare say around 90 probably 80   at least anyway i do have a high success rate  in tesla so i'm looking at the supreme market   time and i'm saying wow market's moving higher  tesla has like a turning point here a lot of   people are likely to watch it let's try and find  an intraday entry in tesla so it all starts with   looking at the daily now i'm moving to the  intraday i'm going to the internet these are   one minute canvas now i'm showing you the s p in  one minute kendra's here um i do not i do not uh   trade the s look at the s p in one minute  candles i always look at five minute candles   which you should too because institution traders  are only watching five indicators but you know   just to have them one in front of the other i'm  just using the s p with one minute candles now   i do start by trading with one minute canvas  because you know it's the first few minutes so   that's the best i can see when i'm trading a stock  at the first 10 20 minutes or so i rather trade   it with one minute canvas and but i see i keep  watching the s and p in five minute candles so   i'm watching the s p starting with a significant  gap uh nasdaq as well starting with with the gap   and i'm watching the s p first trying to move  lower you see the first red candle over here   and then if you take a look at tesla  you can see the tesla also started   by moving lower that's okay because it it started  with a big gap up it's likely to have some kind   of a downside pressure the s p is also likely  to have some kind of a down south pressure in   fact i was expecting a little bit more than that  but then the s p uh stops start moving higher   now you look at tesla stopping after the s p  stopped you know the s p is our crystal ball   whatever happens in the s p is likely to happen  in most of the stocks i mean 60 of the movement of   the stock intraday comes from the s p 500 that's  because the s p is followed by these issue traders   institutions traders are the ones who are having  uh 80 of the volume in tesla and all the other   stocks over 3 000 stocks who were over 10 dollars  and over 1 million shares a day volume a day   they have around eighty percent volume of  institutional traders so us we don't we with   a small part of it so now i am starting to see the  s p starting to move higher and i'm saying well   tesla should move with s p the pressure during the  first few minutes is fine no problem but then it's   likely to move higher i took my first trade right  over here i went along with tesla so you know it   was a failing trade that was my first trading  test i had to move out sadly tesla moved under   the laws took me out and then moved higher you see  sometimes it will have supported the laws i had no   choice but but moving out of tesla when it moved  out under the laws that was the right thing to do   it was also the right thing to move in i failed  but i did not do anything wrong technically i was   looking at the market pre-market time i figured  the market should go up i wasn't wrong about that   i was looking at tesla pre-market time i figured  up well tesla is up zero point actually i don't   know what it was much higher in fact so tesla  was up and i figured out tesla should move higher   came down with the market a little bit it was a  bit late to respond to the market the market did   move to a new high you would expect a tesla to  move to a new high too you look for reversal you   go long you know we're doing this kind of trades  in our trading room i don't know how many times   a day we're doing that most of our trades will  be successful tesla failed do i feel i've done   something wrong no definitely i do not feel so  anyway i was looking for my second trading test   not necessarily in tesla i was looking for a lot  of stocks different stocks now you can see that   the slp kept to the highs came down a little bit  at that point i was a little bit suspicious about   what the sop is going to do but then came a green  candle and i felt like well it's likely that s p   would move higher it did so but a little bit  later and look at what happened at the same time   in tesla tesla failed to continue lower started  reversing sometime during that upside move i   decided i should move back to tesla and i took the  same quantity that i moved in at the first time   i don't want to talk about quantity but let's  just say you trade 400 shares and that's your   i would say 400 shares for the average trader  it's too much let's say you trade 200 shares   and you took your first trade with 200 shares  and the second one i believe should have been   traded with the same quantity why it's still early  tesla look to me like it's about to reverse again   and move higher i was right this time this was my  successful trade in tesla and at that point it was   still rather early the market was touching new  highs bouncing back trying to move higher again   look to me it's going to continue it did continue  but a bit later and anyway at that point tesla was   again a bit late to respond but uh as you can see  once tesla moved under the lows the market kept   to the highs really it was right over here you  see that that was the point if you take a look   at the point where tesla was under the lows it was  9.40 now if you take a look at what happened here   at 940 that was right over here the market was  touching new high tesla had no business coming   down there really seriously it had no business  going down unless something exceptional would have   happened to tesla well i was looking at tesla  and i i couldn't believe that tesla came down   and i i did think maybe it was just you know one  big seller several big sellers of course interest   it's just not one big seller they just one pixel  probably couldn't drive tesla down but anyway i   was thinking well it's exaggerated it's too much  the market was keeping to the highs and well i saw   this reversal and i felt like well tesla is very  very likely to move up and move over the highs i   took a great rate in tesla which was much better  than the the losing trade i had here so i was   nicely green in tesla after two trades so at that  point i was green in tesla then came my third aid   now i can argue about my third trade in fact i  want to argue about my my third i want to think   a little bit with you about what happened right  there because that's a little bit more tricky   now what happened there it first first it was a  little bit later so you see that the market was   moving sideways then the market decided that it  wants to move uh it wants to move higher look at   this area over here somewhere after um that's at  around 10 15 you see that area 10 15. that was the  

point where i moved into tesla once more at around  this point why the s p was moving to new highs   tesla was once again trying to move higher came  over this level over here looked to me like   it's very very likely to move higher and the  market at that time was moving to new highs   so i did have the support of the market i thought  i could have another trade in tesla but i was   experienced enough to know that at that point  after having two trades in tesla today which is   too much i would say i mean normally i don't  have more than two trades i mean if i would   have two trades in a stock that would be kind of  special uh it happens it happens quite a lot but i   i normally just have one trade in in the symbol  i'm trading having two is not normal having   three you know when you come to the point where  you're having a second trade you need to realize   that normally your second trade which did not  happen today to me gladly but normally your second   trade your chance to succeed are much lower so if  i would ask you if i would uh if i would ask you   you're very welcome to write down your percentage  uh rate for the second trade uh i would ask you   what would be your success rate uh taking a second  trade let's say your success rate in taking your   first trade is i don't know 65 assuming you're  a good trader what would you guess would be your   second trade success rate i say my first trade my  success rate my average success rate is around 68   if i would have to think about what would  be uh my second trade success rate it's   definitely under 60. um i dare say it's over 50.  i dare say it's over 50 but it's it's not even   close to my to to what i do with my first  aid i mean the same symbol i'm talking about   the same symbol so i'm looking at your uh at  some of you guys who dare share your opinion   so uh 30 percent matt says and uh nevin says  under 50 percent uh lower than the first um   girl girl yeah well you know right so anyway our  success rate taking uh taking the second trade is   is is is definitely less why do we do it why do  we do and i do it and i do it first i believe   my second uh trade is over 50 but maybe i'm a  little bit more experienced than you guys okay   why do i take my second trade um and what should  i do about the quantities that the topic of our   lesson and we're gonna talk about it really soon  so why do i take my second trade i normally take   my second trade while you say revenge interesting  uh that's one of the reasons right i mean you know   i had i had a losing trade i i'm looking at tesla  and i'm i pre-market i prepare to that trade i was   ready to make money today in tesla i was looking  at the slp the sp was moving out nothing wrong   tesla came under the laws well it shouldn't  have done that the s p is at a new high why   what happened there so i'm over occupied thinking  about tesla and probably in the back of my mind   i'm looking also for some kind of revenge yeah i  mean definitely i have it in the back of my mind   i would never agree i would never admit it  no way i'm not gonna admit it but somewhere   in the back of my mind yes it's it's right  there you know one of the sad things about   traders is that we only have around seven  percent or so uh female traders and you   know female traders don't have this normally  they don't have this issue like men does do   that's one of the advantages of female  traders and i found out that on average female   female traders are doing better than men of course  not all of them succeed but but normally one of   the one of the things that they don't have  in the back of our mind is revenging a trade   well i guess they do as well as as as we do as  men does but probably a little bit less than men   so they do have some advantages and that's just  one of them okay so now so i'm thinking about   tesla i'm i'm occupied thinking about tesla  i'm trying in a way to force a second trade   my second trade is something that i'm kind  of forcing i'm trying to see okay so what   could happen if i take it here or there and i'm  in many cases i'm just imagining something that   is not there now i i can't say it happened  to me today well the fact is my secretary   was very successful so maybe i'm a little bit  more experienced but you need to keep that in   the back of your mind you need to always think  am i really taking this second trade because i'm   trying to revenge my first trade or because i'm  over occupied with tesla just watching it too much   which i shouldn't because there's plenty of fish  in the sea there's so many stocks out there that   you can trade you don't need to to look at tesla  all day long so are you over occupied with stock   you're taking are you trying to revenge your first  trade or whatever reason uh you know normally   you don't really have the support of the market  and you don't really have the right technical   support in the stock that you're trading for  the second time but you do take the trade   and the reason that you are traded taking the  trade is because for the reason because you you   just watching it too much or you want to revenge  it or whatever and that's one of the reasons why   your second trade doesn't have the same success  rate as your first trade so what is the solution   if you're just starting out of the trader the  solution uh a very simple solution would be   just don't take your second trade never well if i  would have really realized that when i started out   as a trader i would probably have a bank account  higher at a few hundred thousand dollars i'm not   joking few hundred thousand dollars so right now  at that point if i would have totally eliminated   my second trade in the same symbol when i started  out and when i say started out i'm talking about   the first five years i'm not talking about the  first few months i'm talking about several years   because i the point where i got to the po when i  got to the point where i believe i had more than   50 percent doing my second successful trade in  the simple that probably took several years i'm   not sure it was three or four or five but you will  feel uh when you got when you come to the point   where you can trust your second trade it will  take you here so the best advice i can give you   just don't do your second trade you shouldn't  care if i take my second trade you should i   to start with i have a lower percentage i admit  it so should you take the second trade well i've   i believe even if i take my second trade you  shouldn't definitely don't decide by yourself   to take a second trade and again if you feel like  you're experienced enough do it now i i do know a   lot of people who are just trading are just one  single traders they only trade one symbol they   feel like they know it so another reason why you  take a second or third or fourth trade is because   you feel like you know the stock you feel like  you you you we call it get married to his talk   and i have to say i have to admit that in  this point in my life i feel like i got   married to tesla a little bit i mean i'm i'm not  married yet but let's say i'm dating it too much   i'm not dating enough girls anymore i'm dating  tesla too much at that point i'm having a tesla   trade every second or third day or so i believe  like i'm exaggerating in my relationship with   tesla i i did have some very bad days recently  with tesla i had one terrible day my worst ever   trading day happened last month last month just  two days ago was march so at the beginning of   march i i lost 200 something thousand dollars that  day and that was due to the fact that i probably   although again i don't admit it i got married  to tesla so i felt like i'm having this amazing   percentage uh success rate in tesla and i got  a little bit cocky a little bit a lot and i had   my worst ever trading day well do i still in green  in tesla throughout the last year or so absolutely   yes it was my favorite trade still is my favorite  tesla and you know i think i'm still doing well   but i need to reconsider my relationship  with tesla my relationship is tesla is just   too much close right now so needs to be considered  again so anyway uh that's one of the reason why   you guys mito included are sometimes getting too  close uh too deep into relationship with the stock   we feel like we know what is it about what it is  about to do we feel like we understand it which   is totally foolish we don't we normally don't well  maybe more than other stocks but but definitely uh   that feeling that we understand it is  to start with very bad because we we   when we start thinking about what what what's  going to happen we we we make excuses to go   long or to go short and and we feel like we  know what is about to happen and we convince   ourselves that this is really the fact that the  time where this is going to go up or down and   let's say it comes down and we think we need  to average down our loss because it's more   likely to move higher or whatever i mean  we convince ourselves that we should do   a b c d and that's why we have what i  had last month a terrible day in tesla   so because we get carried away uh for example i  i i was shorting tesla if i remember correctly   my i do remember correctly my worst day  in in my training career last month so i   was shorting tesla as it was uh trending higher  definitely i was looking back and i was saying   what the hell did i think was happening over there  i just felt like i'm like the i don't know the the   tesla whisperer or whatever i would call it so  anyway i i took my third tesla to trade today did i do right well there were several reasons why  i took my third tray tray today one of them was   i'm say i'm sorry i have to admit it i was  bored i was uh kind of without the trade for   several minutes and i was kind of getting bored  and there's nothing like a trading tesla to you   know to uh to make you feel uh uh kind of you know  more active and so i was looking at tesla i didn't   think i'm doing the right thing if if we take a  look at the point where i i i went along tesla   again that was right over here so that  was the right technical formation it was   uh the market was uh was uh at that point was  uh was looking good i mean that was 10 15 or   so that's right over there the market was at the  highs tesla was probably i thought could challenge   the highs once more and again tesla started with  the gap up it is at that point uh trending higher   so i it looked to me like the right rate but  taking a third trade in tesla probably because   i was a little bit bored i was green at that time  i finished my day in red today but i was green at   that time uh my second trade in tesla and i had  uh what did i had as i can microsoft put me in   green territory so i was green at that time and  i decided i'm going to take a trade in tesla uh   in fact i took two trades one in tesla one  in zm both of them um finished in in red so   at that point i took my trading tesla now  there's just one thing i did right and again   that's um that's how i started today that was  my topic of my the topic of my lesson today   the only right thing i did about taking this  tesla along was the fact that i took it with   a relatively small size i took it with like  uh third i think it was more than a quarter   i think it was third quantity or a third or so  so i i took tesla with um less size because well   maybe i was a little bit uh uh understanding the  situation i was in maybe i i realized that i was   a little bit bored did i support this trade yes i  looked at the technical formation of the of tesla   it looked to me right i looked the s p 500 at the  highs it looked like the right thing but i was   clever enough to add small size i also mentioned  it in the trading room i told you guys taking   this trade with smaller size the reason i said  that was uh because i personally realized that i   need to reduce my side my size and then there's  another wall here which is very very important   if you have a successful trade and at that point  i was really interested after two trades i was   green in tesla because my second trade was much  better than my losing first rate so i was getting   a tesla and i calculated where the stop should  be in a way that i calculated my size in a way   that whatever happens tesla would finish in  green and that was the final result i did finish   my day up in tesla five thousand dollars but i  was at around fourteen thousand dollars in green   in tesla earlier after my second trade so after  my second trade covering my loss my first trade   loss and then making some money i was up fourteen  thousand dollars i finished around five thousand   dollars it's on instagram i can't remember exactly  the number it was around five thousand dollars i   finished uh i i finished uh in tesla in i'm sorry  after the first trade i finished in green 14   000 after the second losing trade because  it as obviously as you can see it started   trending low and i moved out after my second  trade which was 30 sorry which i had a loser   i still finished in tesla at around 5000 so i did  the calculation well i was really hoping not to   uh go down more than 50 of my profit so i would my  target was to stop it at the point where i would   lose up to half of my earnings in tesla i was up  fourteen thousand dollars i thought well if i get   to around seven thousand dollars i calculated my  my quantity i will be out uh of the tesla trade   and that's a calcul the the the quantity i took  and sadly tesla my third tester trade didn't   finish in green and i did lose a little bit  more than i expected so i came down from   14 000 to 5 000 and since zm was also a losing  trade then i finished in red both of them together   that took me back to the territory because i  was up after my second tesla trade so anyway   the the thing i wanted to uh to emphasize here  is the fact that first if you're just starting   out please don't take your second trade  in any symbol seriously just don't do it   and uh second thing if you do take your second  trade or your third trade as i did always think   why are you taking this trade i mean  just probably have some kind of uh   of a list of a checklist that uh says is that a  revenge trade mark yes or no is that do i have a   real technical formation yes or no what's the  s p doing s p supporting this trade yes or no   am i losing money in this trade that's why i'm  taking it yes or no am i am i am i like in my   in am i like in my normal senses or whatever i  don't know just have a list of things that you   want to write down and figure out if you're doing  the right thing by taking the second trade now   i'm talking about the third rate and it's kind of  same as the second trade because it's you normally   shouldn't take the second trade but if you do take  the second or even the third rate as i took today   in tesla now anyway second or third rate if you do  decide to take it if you if the checklist is all   yes yes yes yes i'm normal everything's okay if  if you cut to that point and you're taking the   second or third trade now think about your  size that's the only clever thing i've done   in my not really but it's it's one of the best  thing i've done today with tesla is the fact that   i reduced my size dramatically in my third rate  you know when we take our second or third trade   again we are probably not in the  same uh um we're not where we were   when we took the the first trait as i mentioned  for several reasons we need to realize that only   for that reason you need to reduce your size only  for that reason it's a good idea that you should   reduce your side only for that reason  second thing i have a rule i never   risk more than around 50 percent well i i do  like today i risked 66 or so i did come down   a little bit more but it happens you normally  should look for the point where whatever you do   with your second trade in the symbol or third like  it happened to me today you do not risk more than   50 percent of what you earned in the first race  so i don't care what your risk reward rules now   how much are you willing to make or lose per trade  what is your risk reward one two one one two two   and how much your maximum loss per day per trade  whatever just look at what you earned in tesla   or whatever trade you took and don't risk more  than 50 percent you need to realize you are   not in your normal senses where you're taking the  second trade you you are biased uh even if you do   not agree with this or you do not admit it you are  biased you're not your normal self at that point   and even if you think you are you're probably  not and your success rate you admitted that   earlier some of you did that earlier is not  as good as uh your first trade normally and   there's a very big and important role that all  of you should know and that's a very important   tool for traders if you put some money in your  pocket you never take it out you just never   take it out just remember this hole it it  applies per trade really does not apply per trade   it could apply per day but definitely per trade  if you earn some money in tesla you can risk   a part of it you never risk it all now does it  happen to me that i sometimes go over this hole   i'm human of course i do if i just look back last  month my worst day ever i i broke several of my   rules that day but if i look back at my trading  career i do less and less mistake throughout time   so i i don't do the same number of mistakes  i used to so i'm telling you about the rule   that i will probably break myself but i will not  break it as many times as you will because you're   probably just starting out as i started out  you'll make more mistakes that i like i did so   remember this wall you put some money  in your pocket don't take it out   it's important it's it's it's not legal  you're not supposed to be taking it out   you want to take some of it out fine don't take it  all out it's the same like averaging down you put   you you're risking of taking all of your money in  fact all of your account just don't do that just   don't do that i got an email uh not an email was  it uh no no i got a chat today in the trading room   maybe maybe one of you guys i don't remember  i don't remember the name really right now   but he wrote to me um something that touched  touched me i mean i enjoyed reading what he wrote   he said he was trading few years before he joined  us and he was always averaging down his losers   and he was normally in red and once he joined  our trading team he's in our trading room   maybe it's one of you i don't know he he stopped  losing but but just by dropping these bad habits   so he had some bad habits he realized that  once he joined us and that's exactly what   i'm talking about right now i'm talking  about you know throwing these bad habits uh   adopting habits that will help you so think  about that you earn something in the stock   the money is in your pocket don't take it  out take some of it out fine calculate your   your new risk according to what you earned  in tesla and i did that it was not perfect i   wanted to reach the seven grand i risked  a little bit more than that but um and   result i finished in green and tesla and i'm i'm  looking back and i'm i'm kind of proud that i've   well i'm not proud of my third rate but i'm  kind of proud that i at least that role i kept   it and it worked out fine because you know my  my third trade would could have been disastrous   in just life i would have done it with my same  quantity i did the earlier trades it could have   been disastrous um so i guess that's it that's  the only thing that was my only uh two cents   for the day so if you have any questions  you probably have already written some so   i'll i'll read some of your questions right  now and see if there's something there that   we should continue and talk about let's see if  you have any questions please write them down um yeah the volume in the opening is very very  important so it's it's a you know it's it's always   a combination you know you take your second trade  and you or you take your third trade it's not just   the fact that it's a uh maybe a revenge trade it's  also the fact that you know stocks are moving less   as time goes by then you don't have the volume of  the opening and everything so yes there's a lot   of things that are playing against you it's not  just the fact that you are revenge trading okay do i still document my traits for feedback  no i don't i did it for years i think it's   extremely important but i think it's extremely  important to document your trades to have   to write down your trades to follow them to write  down what you think was why was the reason that   you lost money why did it happen that you made  money what should have you i mean write down   your remarks from the passing day and everything  per trade per day and so on extremely important   tool for you to understand what you're doing  right and what you're doing wrong of course   what you're doing wrong is more important what  you're doing right but both of them are important   this is extremely important tool uh just that  you know after 10 years i stopped doing that   i did it for like 10 years which was extremely  important and i did that and i think it was   one of the best tools i ever had um well i i  don't think i did it as as good as i did it in   my first i don't know three four five years but  i kept writing some remarks afterwards and then   up to around 10 years i kept writing remarks  i don't do it anymore tell you what the the   again the number of mistakes i do today i  don't really have to write them down i just   i don't do so many so i kind of remember what i  did the number of mistakes i did when i started   out throughout my first years was a lot i i when  you're trading i'm sure you realize by the end   of the day you can count i don't know five six  seven eight ten mistakes on my average day i can   count one i do count at least one  but i it's not too many to remember more questions would you have made would you have made the tesla  trades if you did not know the name of stock   uh good point howard uh good point you  know tesla is expensive uh it has a   very specific characteristics um spread wise  um the point where people are jumping on board   and pushing it up like what happened when  when i took my second trade and so on so   it has special characteristics i i don't think  i can your question is very good if it was not   tesla for tesla it's it's kind of special but um  that's a good point and i think um the answer is   uh i don't normally take a second trade in  a stock if if it's not tesla okay i mean   sometimes when you have a stock that is a big  big mover i would take my second trade but if   it's tesla i feel a little bit better taking my  second trade i think my second trade in tesla   probably has a more than 60 success rate  compared to other stocks where i have less   but again i have to be very careful  about this conclusion that i just said how to avoid over trading you know it's it's just a matter of discipline  you need to you need to you need to set up your   number um you set up a number and just decide  that you're not going to over trade i believe   uh there were there was a long long time i  remember myself where i had a rule that i'm   not going to take more than three three trades  a day so i i had the rule and and i was training   more than i was trading more than one and a half  hour back then so i i had a rule i'm not going to   take more than three days trade a day and then  i had the rule i'm not going to take more than   four then i had the rule i did not only take more  than five so you just need to set up the number i   believe that if you're starting out at the very  very start you shouldn't take more than two   at the very very start but then later probably  not more than three so just set up a rule it's   a lot of discipline it takes a lot of discipline  over trading is just pure discipline so there's   no wall out there other than you know ask somebody  and ask somebody to get into your home and put   you in handcuffs or something like that but  really seriously it's just pure discipline so i also answered the question  of how many trades i took per day   of course i had my days where i over traded and  so on like happens to everyone you trade too much oh you take a lot of trades in the trading  room can't just control yourself uh well i can tell you a story about the guy i made  several years ago um he was with us in the   trading room for several years and he met me and  he said something like well mayor i'm trading for   three years or so and i'm constantly losing money  and i'm taking every trade in the trading room   i'm taking your trades coach trade this trade  that trade every trading thing i heard that   and i had a rush and i'm feeling the same  like what you're saying right now um because   you know if you if you if you're  starting out as trader if you're   not making money as a trader you need  to find out what is your your system   you need to realize what is a system you should  be trading according to you need to come out   with your own ideas of what kind of trades do  you take do you take like gap ups do you take   get downs uh do you take gap and girls do you take  reversals do you take breakouts uh and and within   this territory even if you decide okay i take gap  ups okay fine gap and goes whatever within this   neighborhood you need to decide exactly what kind  of trade you take um so a system should be a very   limited to number of trades that you can  take if you just trade all over the place uh   like this guy who mentioned i'm taking everyone's  trades then he's trading these guys taking trades   which uh is according to scott systems my systems  and other idle systems he's like mixing up so many   systems in together look at myself how many trades  do i take that scott posted in the trade room   and the same for scott how many trades does scott  take that i'm posting in the trading room i mean   if i'm trading if i if i would take five trades in  trading room on average maybe one of them will be   scots maybe why because i have my own systems he  has his own systems he trusts his systems better   than trust my traits and that's that's the way  it should be and when you're trading with us   you need to develop your own trading system up to  the point where you no longer take mind of scots   unless whatever i post falls within your category  of your systems and then you take your own trade   feeling very good about the trade that you  picked uh be maybe because i picked it first but   but it it is within your territory of uh of your  systems so you you just need to go through this   you need to go through this just don't you  don't don't gamble just pick up a strategy   uh develop your system and and master it  you need to get to the point where you know   exactly what you're doing and you're mastering  some kind of a system it's extremely important i don't know why the s p did not stay up together  or change directions or whatever really i don't   have no idea there's a lot of things i don't  know well traders let's summarize it here   this um mentorship is over now but  let's just summarize it very quickly   first thank you for being here with me so i really  enjoyed your company and i hope we talked about   something that could help you guys uh if i need  to summarize this lesson i would say the following   first don't take your second trade same symbol  if you do take your second trade have a checklist   make sure you're not doing it for the wrong  reason i would skip the checklist i would just   suggest don't take the second trade seriously  just don't take the second trade you may see me   taking a second trade in the trading room my the  first thing that comes into my mind that's why   i think i'm helpful for most of the time in  trading moves because i trade my own account   if i'm trading my own account the way i think  i should trade then i'm genuinely trading   the way i should be trading and i'm not  adopting myself to your environment some   some traders complain they say they  think i should trade small quantities   show you the way by trading the same size that  you do i don't i need to trade the way i believe   i should trade and that's war and and that  makes me a a better trader and i believe more   as as long as you know my quantities and the  way that i'm trading i believe i'm more helpful   doing that i think i'm doing but if i'm taking a  second trade and you're thinking about joining me   taking the second trade as i just mentioned you  shouldn't maybe i shouldn't take my second trade   and just help you guys you know make it easy for  you so you will not follow me in my second trade   well i think i should do what exactly i should  do with my account and the way i trade because i   think i'm more helpful this way building myself  as a better trader but maybe you should have a   role that you shouldn't take a second trade no  matter what doesn't matter if i take it or anyone   somebody else taking it or you decided by  yourself that you should take it if i need   to summarize this session i would say this  is probably the most important lesson today   but then there's another lesson if you have  decided if you do have a checklist and you have   decided that you uh uh mentally uh right and you  show that you are fine mentally and uh do not need   to be hospitalized or anything like that and you  do decide that you want to take your second trade   uh and you passed your checklist hopefully  you have one then think about your quantity   think about your quantity the the the the first  thing that should come to your mind if you don't   have the time to calculate exactly how much is  half quantity start with half quantity start with   just half quantity of your first trade so that  should be this is the first thing that comes into   your mind now again if you're experienced if you  know what you're doing if you feel like something   special happening there's a lot of if and then  that couldn't happen but taking a second trade   should normally not happen if it does happen  and if you feel like you pass the checklist   definitely lower your size dramatically you  put some money in your pocket don't take it out   be ready to put out take out only a  part of it and that's it that's the   way i would summarize this lesson so thank  you guys for joining me have a great evening   and i'll see you all next week we've got a  good friday tomorrow so enjoy your long weekend   and hopefully yeah let's meet next week and  do some money together thank you guys bye

2021-04-07 23:17

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