How to Overcome Your #1 Trading Mistake
what's up tim sykes millionaire mentor and trader here um injured right now i got a sprained ankle but i'm still filming i'm still trading today as i'm filming this made around ten thousand dollars seven of the ten thousand was due to my weekend strategy it's been on fire i actually sold again too early if you want to know more about the weekend strategy you can click the link below there's going to be two links below one for my weekend strategy because this has been refined and optimized over 20 plus years you know just on fire right now and i want you to watch a whole presentation it's free so that you can learn it you can ignore it you can love it you can hate it you can do whatever you want i'm just gonna keep partaking i'm gonna keep teaching it um there is this informational inefficiency over the weekend so that's link number one link number two uh will be uh all about stock therapy and you know i'm intro in this video this is a long video with three not one not two but three of my newest millionaire students i now have nearly two dozen millionaire students three of them sat down to talk about the psychology behind making a million dollars the psychology behind successful trading so the second link if you click below it's this brand new course on stock therapy and i know this doesn't apply to most people because most people are just like learning to bear basics but remember this video okay so even if you're at the very beginning of your trading career and you're not ready for like psychology lessons and like counter-intuitive lessons i get it but just remember that this is here and there is a course now from two of my millionaire students hudi and dom talking about the psychology and what they've learned from each making over a million dollars and in this video that i'm just enjoying right now roland who's another one of my millionaire students who's gone from 4 000 now closing in on two million dollars um you know they talking all about the psychology and what it feels like to do the seemingly impossible and i know you don't think it's important trust me i get it i get the messages i see what people are saying about everything but it is so important i became a philosophy major to deal with just everything that was in my head when i made my first million uh back in college philosophy was like my therapy not an exact fit but pretty good now there is a specific course from two of my self-made millionaire students and they talk all about different things that are going on in their heads and it is so useful so i get it if you're not interested right now but watch this video even if you don't want to watch the whole course that they have watch this video it's an hour-long plus talk with dom huddy and roland huddy has really just blossomed i mean today alone as i'm filming this he made about 16 000 nailing ilus and tggi i believe um maybe cpsl too i don't even know if he was in that one too but he's 16 grand in a day you know just out of college just bought a porsche with you know his trading profits pretty cool and dom just bought a house um you know he's another young guy he bought a house i think in michigan um and he's loving life now too so roland 4 000 into nearly 2 million spends all of his time with his family spends his money you know taking care of his family so no matter what your inspiration is understand you got to learn the psychology you got to learn the basics in this upcoming video get ready to take notes watch it a few times it is a fantastic video of the three of these millionaires talking about everything and i'm curious leave a comment below don't just click like on this video i want you to click like but also leave a comment below tell me what motivates you okay forget about just you know what others want you to believe in or others say that you should focus on what motivates you for me i'll tell you straight up when i grew up in connecticut i dreamt of exotic cars i had posters up on the wall ferraris lamborghinis and i just wanted to drive them i didn't even want to own them that wasn't even in my mind i'm from a small town so it's kind of funny where it's like oh you dream of owning this that wasn't even in the realm of possibility for me i just wanted to drive them little did i know i would eventually make enough money to buy all of them drive them and get sick of them but you know roland for him it's his family uh huddy also got a new house i believe in arizona pretty awesome and then dom bought a house and i think he's engaged now too so like what motivates you is it houses is it cars is it charity is it taking care of your loved ones is it just you just want the challenge you just want a big number in your bank account there's no wrong answer just be honest with yourself be honest with me and watch this video get ready to take notes congrats to roland dom heidi congrats to all my new now nearly two dozen millionaire students again click some links below first link is gonna be for my weekend strategy it's on fire where you buy a stock basically on a friday look to sell it on monday as the news with the right catalyst spreads over the weekend second link is going to be for stock therapy this brand new course from my students uh hudi and dom talking about everything that they've learned in their heads much cheaper than an actual therapy session i can't encourage you enough to watch it but enjoy this video and thank you guys for tuning in all right guys what's going on good morning welcome to wednesday morning and trading you're joining us live with myself huddy don master matteo and roland wolf you know we're not professionals this is not stock advice it's not recommendation to trade the stocks that we may trade during this episode um again we're not licensed professionals stock trading stocks is inherently very risky um we're trading penny stocks we're trading the worst of the worst stocks so expect the worst in these stocks but they are very volatile they do move very much and that's why we trade them um again everything that we say here today is just for educational purposes it's not recommendations to go buy or sell stock um what works for us may not work for you um so we're just you know giving our anecdotes our experience and you know hopefully that helps shape your career um with where you're going in stock trading um so today again i'm huddy that's dog master matteo on the bottom left and rolling wolf in the middle um we go really far back us three um we are trading accountability buddies or whatever you want to call it but we're also friends first i've known roland for better part of three years now i traded behind him for two and a half years he's a really good friend of me and a mentor he's an absolute stellar trader um really really good when it comes to sector momentum and picking that really nice low float stock that goes from two to ten um it doesn't happen every day but when roland nails it he nails it sorry for the language um dawn master matteo he's been trading otc stocks for the better part of three four years now i would say that you know not necessarily a master there's still things to learn we still mess up from time to time but he's definitely put in the 10 000 hours he has a really good grasp on otc stocks how they move who's spilling liquidity where to get in where the best risk reward spots are and how to really analyze a chart and we hope to impart some of that information on you me personally i'm just a jack of all trades i don't do anything really that well but i know what i do do right and i know what i do wrong and i stay away from everything i do wrong that's probably the best part about my trading i'm really good with familiar familiar charts i'm looking for familiar daily charts that we've seen on all the best dvds all three of us are pretty much crafted from tim gratani um a little bit of tim sykes in there too tim sykes definitely laid the foundation of you know how to stay alive how to build your account and how to cut losses quickly and then tim cortani really tied the knot with the right daily chart patterns i know for me a lot of my short-ended um short-ended trades come from tim gratani himself and i know roland like got started by just taking tim cortani's ideas and flipping them upside down and trying them for the long i mean that's a really blanket statement as to what he does but again a lot of it derails from tim gratani's trading the ticker's dvd um if you don't have that dvd i you know i'm not paid to do this i strongly recommend you buy it it is the textbook for what we're about to trade for what we're about to talk about um you can't go to college and not buy the textbook um i know trading tickers is about a thousand dollars trading tickers two is another thousand you don't need both i would recommend just you know getting started with the one but that thousand dollar dvd is you know for the most part the reason that i've made you know over a million dollars trading penny stocks so big shout out to tim gratani um and the reason i mentioned him is because again it is the foundation for how we trade so you know without the textbook you're gonna be lost uh you know that that's kind of our our our background story um i'll tell you a little bit about me since i'm the one talking right now i've been trading for the better part of six years um i got started when i was in college i was doing trading in the morning sports in the afternoon class and the night and i was able to fit that in my schedule in the morning i was basically just trading you know morning patterns right you have to trade what your schedule allows you to trade so where i gravitated towards was first red days i realized that first red days had a really nice morning plunge in the morning to take advantage of the volatility and i could nail and bail i can make my money close on my position and go to class you know a thousand two thousand dollars richer and that was really good to start um that was college for me don what about you yeah i've been trading for five years now um you know i found some consistency after 10 months with otcs that's back when marijuana was running and a lot of these you know medium priced otcs were going really far and you know you had that whole penny stock framework you know you had the breakouts you had the first red days you had the panic dip eyes and the first green days and that's really where i you know built my arsenal of trading strategies been you know ups and downs along the way um have worked more into the listed land in nasdaq's and trading primarily the same patterns just different nuances within them and you know learning to scale up along the way take on more risk but really just you know using my risk reward and trying to maximize that with a medium to low wind percentage and try to take advantage of big moves and you know try to get the most meat that i can roland why don't you talk a little bit about yourself and then we can kind of do a little stock therapy on you and your trading for the past months year or year or so yeah so uh rolling wolf here i thought you know me a lot of you may not um but i've been trading since 2016 and i'm sorry i'm actually doing a watch list for my students right now so i'm actually uh kind of multitasking which i'm not us guys aren't the best multitaskers but um yeah i've been trading since 2016. um started with tim sykes as well and kind of like huddy mentioned uh sorry one sec i'm really not good at this um anyways uh started with tim sykes tim gratani's uh dvd the first one trading tickers is what really kind of turned my everything around for me that mostly uh but a lot of it was an attitude shift you know that was kind of the first step for me kind of floating around just trading trading nonsense not really knowing what i'm doing um and then watch trading tickers but the main thing was an attitude shift that like i gotta work my ass off uh that was back in late 2016 beginning in 2017 and that's kind of all she wrote i went on this like unceasing study quest um of obsessively trying to figure this game out um which brought me to here today and just like yeah i think that's definitely part of the secret like like amongst all of the millionaire traders that i know like everyone eventually obsesses they're like it's either this or nothing you've already put so much time into it um you've already done the f off stage where you're randomly trading you're randomly taking it seriously you still treat it as a hobby and then there comes a point where it's like if i don't get this sooner than later i'm going back to that nine to five which in my idea was always the scariest thing for i'm sure for all of us um so you just eventually let a fire under your ass and you say hey like i gotta be more disciplined i gotta be more focused i gotta actually know what i'm dreaming i cannot take this as a gamble i cannot take this as a casino like there's there's real money to be made and there's real money to be lost and you have to understand both sides of the equation and treat it like a professional and and roland definitely um you you definitely do you definitely know what what you like to train what you don't like to trade and you know you know you're never been one that's been undisciplined or unfocused to just randomly trade stuff i mean it's not like you treat it like monopoly money or anything no it was and that is how it was at first that's how it is for everyone at first and some people never get out of that some people never get out of the randomness and just chasing um and i think that's the goal that's always been my goal when i'm teaching people i know it's your guys's goal to help them get out of randomness and just like like help them find process help them find consistency and help them find their you know kind of where they fit in i remember talking to dom like back in the day and he's he was crushing otc i think he was up 50 grand or something like that he was crushing otcs and he came to me for some help wanting to trade listed stocks and stuff and i'm like okay you know i'll we'll work let's rock but i'm like don't just stop trading otcs like if you whatever you're good at you'll figure that out like through your data and it's and you know over time you'll see exactly where you fit in and you don't want like if you're able to take money from a certain part of the market you want to stay there for the most part i mean yeah we coined it like you don't want to like build upon your weaknesses you want to strengthen more your strengths you know like don't just because you're bad at something doesn't mean you need to work on that actually work on this you're never going to turn your weakness into a strength but you can um exemplify your strengths into greater strengths and that's kind of what we've been talking about in the past couple stock therapy episodes yep um let's let me yeah i'm going to finish i'm going to finish my watch if you talk if you guys want to just go ahead and talk really quick uh yeah we'll talk about we'll get into it we'll talk about our favorite patterns what's been working for us lately um you kind of know a little bit about of us uh now and then um as market opens i know roland you've been taking a lot of time off i know you were traveling with the family um in the middle of august you know the market it isn't like full force like january february right now but it is kind of active we're seeing 100 runners you know pretty much every day now multi-day runners so there's definitely opportunity to be grasped and easing your way back into that madness is always very tough i'm sure roland you've gone through it i know i went through it when i came back from europe my europe hiatus i was in europe for two months um and coming back does uh have some problems and and some hesitation issues that i'm sure that we would love to talk about and everyone would love to hear um but before we get into that you know roland is making his watches right now so um i think it's a good time to talk about dominic's favorite patterns that you know we like to trade what's working for us right now i can talk a little bit about roland's favorite scenario because i've just seen him trade it so many times and then we'll see what we're watching for today what's on our watch list um and then get into live trading um eventually in this episode we do want to open it up to questions we do i want to hear from you guys like we're going to go over you know what roland's been battling with or what he's been doing really well whatever he wants to talk about same with me and dom we'll talk about those similar things and then we're going to open it up to the chat room again stock therapy is usually about bringing the community together um it's always a thing where it's like trading is alone but we all go through the same emotions we all go through the same thoughts we all go through um the same like ups and downs and whether you're experiencing alone in your room right now and facing your computer screens or you're listening to us talk about it like we've all gone through it um we all have the you know undisciplined moments the emotional moments the p l moments whatever they are um the lack of patience the too much patience the you know ability to cut risk everything that you could think of like we've gone through it and we have experience to talk to you about it so that's why we're opening it up to chat we want to hear what you guys have to say and we want to you know expand upon and maybe have a good lesson for everyone to talk about in terms of the emotions and mentality behind training because i always say like a chart pattern i could teach to a fourth grader okay it's a simple iq test but managing the trade once you're in trade that is not something a fourth grader can do a fourth grader can't handle being down 10 000 and still expect a trade to go correct right i'm not saying that's like that's the ideal situation but that's where it gets into you need to have some kind of maturity and you can't just be a fourth grader to trade stocks um so uh you know i'll talk about my favorite chart patterns and they're pretty similar to dom i think the person that differentiates us the most is roland but i know roland's like roland doesn't really have a pattern he has like a scenario and we'll talk about that in a sec um it also can be considered a pattern um for me where i really profit where i find in my stats right i track you know by set up i set up where i'm making money where i'm losing money you have to know where you lose in order to find out where you win meaning you pretty much have to lose before you can start to win because without knowing where the losses are you don't know how to avoid that stuff right it's really backwards it's really complex but that's just the truth um with most things in life you know you don't know you're bad at a three point shot until you take enough three point three pointers and you realize that you have a zero completion you know uh percentage or whatever but your layups are on fire so you gotta focus on the layups that kind of analogy um so i like i really like breakouts i like breakouts and i like first red days that's kind of where i thrive i really like otc breakouts i find that the price action is really easy to handle the risk reward is really tight and and good for maximizing reward benefits and i also like first red days because they make so much sense to me for me personally i have a really hard time buying penny stocks like i know i'm buying the worst stock in the market so it's like hard for me to really want to put a lot of capital towards that i know how much risk is entailed with buying penny stocks but when a penny stock runs you know let's just throw out random numbers thousand five thousand percent i know there becomes a supply and demand imbalance where there's you know so much demand that brought it up here where it's like who's left buying this piece of crap penny stock up five thousand percent and on its first red day you have that massive trend shift where you know the buyers know to sell and the sellers know to pile on and you just have so much more supply and then demand that that's that the stock tanks it makes sense psychologically and that's why i always gravitated towards first red days they just made a lot of sense to me where there'd be just so much supply that you have a downward move to take advantage of i'm not saying the stock is going to zero not saying like piece of crap stocks can't go much higher but there is a day one day that i know what to do where i can predict downward momentum and that's what you know built my first hundred two hundred thousand dollars of profits all i did was trade first red days and then i started branching off and talking to other traders that i respected mainly dom and roland and i started asking them about you know how do you guys trade listed stocks how do you guys trade breakouts i also talked to grittani a lot and they really helped you know um fine tune my criteria to an extent where you know not every single stock that's moving i can buy i really know a very specific scenario that i want to trade so that's me i love breakouts i love swinging them overnight uh a lot of the times that's kind of my goal i i just i get i get amped about that that you know gap up and and spike type idea um it just gets me juiced in the morning and sometimes that's not always the best thing to wait for but it really is a lot of fun to wake up to 100 gapper um i live for that and first red days you know we saw on aetr the other day um i posted it to my twitter just a phenomenal overx any gap down straight from trading tickers uh it doesn't get more textbook than that um uh dumb you know talking about would you like to trade yeah and i think off of what you just said i think that should be like your number one goal when you start off on this journey to become a trader is like to find out who you are as a trader because it's going to be different for everyone it might take you a month three months it took me 10 months like to really like and also what we said going back to what was at the beginning about taking this serious and being a professional like using that period of time to figure out where your strengths are and then learning how to maximize those and you know pull money out of the market and doing that and adding layers onto that as you go each year um and so for me you know it took 10 months to figure it out and for me that was otc breakouts for you know a year after that i only traded the pattern otc breakouts because like rowan said i was able to make money there and i shouldn't necessarily i have that curiosity to learn more and to add news patterns to my arsenal but what's important about that is like if you're able to get some money out of the market keep milking it for as long as possible and that's what i did until like those dried up a bit and then i had to add new strategies i had to open up a shorting account and learn how to short first red days in the listed market i had to you know use first green days differently reversal patterns and trade those um in the listed market but i'm off of what he said as well i'm looking for that very small predictable period of time where i know i can you know make a decent you know 10 20 30 percent relatively quickly and that's why i don't really trade like big gappers that's why i don't really scan pre-market because i'm not interested in these which i know roland is these day ones that are um popping up on everyone's radar because you know that's just too much by the way yeah and that's just too much for me like i don't there's too much unpredictability for me so i'd rather wait for it to go on a run you know get extended obviously have you know a first red day like where i don't have to think too much about it just technically it needs a first red day and then you know a stock pulls back and sets up consolidates underneath those highs and then it's obviously going to be a breakout for me i'm waiting i want to react to the price action once i get a feel for the stock and use that to my advantage i don't want to be predicting you know is this low float runner going to be the one is going to be that black sheep that's not really my specialty my specialty is letting them set up and then you know using those predictable parts of the printed penny stock framework to my advantage so roland i don't know if you're done if you want to go over kind of your patterns how you play uh these stocks so there's a lot of things that i do but generally speaking um generally speaking i am trading the morning gappers i'm trading listed morning gappers generally speaking i like them best when they're fresh so not a stock that's been popping recently but something that hasn't been on the radar um a stock that's been fading perhaps for months and months and then it's the first day they maybe put out a pr and they're gapping um generally speaking i gravitate towards lower floats for the simple fact that they are more volatile um for those who don't know lower floats those are that's the amount of tradable shares out there for for us to trade um and it's simple supply and demand the low the lower amount of shares there are to be traded and the higher amount of volume generally speaking the more volatile the stock's going to be um that has stayed true throughout my entire career so there's there's nothing i'm changing about that generally speaking i'm looking for low floats big ass floats move slow that's why really big caps are more stable because generally speaking they move slow um i'm looking for fast-moving nasdaq's generally speaking they're nasdaqs so um looking for something gapping in the morning and then i'm looking generally speaking for reversal in the morning off lows um this morning we have what indp son mosey we've got we've got a couple stocks gapping on volume these are the kind of stocks that i'm looking at um mosey has a lower float they've got some news uh but first of all let me preface this by saying everything that i do is based on the markets themselves so i'm like like so in other words my favorite pattern my all-time favorite setups come and go and there are many times where i'm not playing them because they don't work um but generally speaking like it's kind of like heidi was talking about how a lot of what i'm doing in the morning doesn't necessarily fit into a pattern i call it gap and crab reversal um so there is some there is some pattern to it but essentially i'm looking for lows to hold i'm looking for a stock to gap maybe spike a little bit but most of the time just pull either way though small spike or a pool and the morning fits this criteria on a gapper um and then i'm watching for lows to set uh i'm watching for shorts to come in maybe people are going to reshort highs or reshort the open price or whatever else it may be and then i'm looking to squeeze those people so the people who are shorting out the gate the people are shorting maybe lower highs or something like that but the goal for me is to get a great entry uh to get a great entry with good risk reward the problem most people have trading in nasdaq in the morning they don't they're not able to define risk reward because they're just like buying morning spikes or like buying random things um for me i'd let a stock pool consolidate or set a higher low or something like that and then take my position with set risk reward uh reward generally speaking being high a day and risk being low a day and it's really simple when i put it into that context um in theory lately it hasn't been as easy for me and this is probably uh awesome that i'm on here we can talk it out with two of my good buddies uh but that's the gist of it and the idea did come from trading tickers because i realized most of my entries were coming in anticipation of high daybreaks and stuff like that um and i found and this was early on and i just had such little success or even breakouts i wasn't really sure how to play breakouts so i'd play them and then the second the breakout level would break down i was out and a lot of times i'd get shaken out because i didn't understand risk reward um i think that's one of the most important things that new traders can try to strive to understand is risk reward it is it is the theme that will take you from nothing to something like it is the theme that will enable you to grow over time even having a losing percentage of winning trades or lose uh you know even having less than 50 winning trades if risk reward is good enough you don't even have to win 50 of the time to make money in the markets and that's what people don't understand you also don't need big percent gains like if your risk reward is tight like the percent gains don't matter yeah and and the and the key of that is keeping that intact over time you know as long as you're always finding setups with good risk reward so that was kind of the idea behind it i found that when we have a fade like i can i can buy risking low a day or something like that um and have set risk rewards so if a stock you know fades a buck or fades 50 cents out to open and i'm buying i know i have 50 cents upside off the lows potentially that's kind of how i use it um there's a lot more to it uh but reversals in the morning i'm looking for these gappers to reverse uh get sweet risk reward and then potentially break high a day and become that day's biggest runner that's the key um other than that i love i do love otc breakouts i haven't been trading otc since march or so um but otc breakouts and dip buys like when otcs are hot it's one of the best places to be period uh especially with small accounts there's no better place to grow a smaller account than otcs when they're hot or just in general it's just they're cheaper they move thousands of percentages like you were saying at times when when uh when they do and it's it's just uh they flow a little bit better it's as opposed to nasdaq's which we'll get into in a little bit have been so choppy for for months and months and months yeah so we'll talk about a lot of that stuff especially we'll get back to your strategy the reverse capping crap and there's a lot of nuances that you just briefly um brushed over we'll get back into that you know as market opens market is opening in two minutes um dom i know you had ilus up on the up on this chart if you want to talk about you know why we're watching that what we're looking for um that's kind of our only watch at the moment it's my watch as well um there's not a ton on my watch list but ilus is one of the stronger otcs in the otc market someone just asked me to explain what the otc is that's the over-the-counter exchange um it's just basically like baby nasdaq it's like for companies that don't meet certain requirements to uplift the nasdaq or the new york stock exchange so they're on this crappier exchange that you know you don't have as many regulations to be listed and so yeah you're dealing with absolute piece of crap stocks a lot of them will never be anything a lot of them will go to zero um but a lot of them do get manipulated and get pumped really high and that's what we're looking for we're looking for that volatility we're not believing in the companies we don't think tsmp is gonna be the next venmo but you know if tsmp is gonna go from four cents to two bucks we want to be a part of the party we like to party we like to party with the stocks i hate selling stocks because the stock then i'm done with the party uh sorry that's a that's a weird analogy um but dumb why don't you go over aisle us i know this is kind of your specialty i know we've been watching this one it's been part of stock therapy episodes for like two weeks now i know i made a killing on it buying it in the 10s and 10 in the 18s i know you were buying it in the sevens and now it looks to be setting up again in the 20s so go ahead yeah i mean we've really been pretty spot-on with this one since this initial run um god last month a month ago um you know we just the whole premise here was let it spike let it consolidate give me some sort of range some sideways price action and we'll buy those triggers risking those lows um taking advantage of that risk reward and seeing if the stock will break out and continue and right now you've had you know two really good scenarios and the big thing we kept saying was you know we were playing inside of this range using these previous highs on the chart and you know from this breakout we were saying you know maybe it can test this resistance up here 12 13. then when it broke over 12 you know can it test this 16 to 18 level and you know here we are and we said you know from the beginning the big the greatest play that we could get out of this is if it could consolidate up you know around these highs 18 to 20 and you know looking back on the chart i don't think there's much going back this could be like a huge breakout and so right now like in an ideal world for me like i don't want to just say i want to buy it over these highs because that's killing my risk reward um in a perfect world this sets up for today maybe tomorrow another day i wouldn't be upset you know it's taken days and days maybe even a week uh recently to go and break out so if we could have another higher low off of this panic um to get set and then some really nice sideways action underneath these highs i would just be um through the moon yeah so excited what you guys have to understand is like a lot of times like we we pinpoint these stocks that we want to trade but then they have to construct they have to develop they have to form a picture a pattern in order for us to say hey the risk reward makes sense the entry makes sense the risk is clear and the expectation is clear and once we can actually piece all those things together then we have a trade and a lot of times it's being patient enough to allow that picture to form and not just stabbing because you think it might or it might not um you really gotta know and and honestly the hardest thing to learn in the beginning is patience how do you take your hand off that mouse and wait for something to be very familiar for you to trade and in the beginning that's very tough and even towards the middle of your career like that's still very tough um it's something that like you know they have the 10 000 hour rule with malcolm gladwell or just like trading the same setup a thousand times like i know dom has traded a million and that's an exaggeration but a lot of otc breakouts like he's really focused and honed in on his skills with the otc breakouts so he really knows what to expect if he takes that same knowledge and applies it to a listed breakout it doesn't actually work the same way so he's really honed in his focus he's not just trading breakouts and i'm sure he can trade a listed breakout but where he really exemplified his focus was in the otc markets and waiting for that correct otc action um so i l u.s yeah definitely
looking like a 52 week high day 52 week breakout has been pretty much the strongest runner in the otc market it's got a ton of volume it's got a ton of volatility um and it's and it's setting up well right now it's ending up in a very tight range around 20 it looks like 20 is going to be that trigger when it happens it's just a matter of letting the risk form in the meantime and right now it looks like it could go either direction is it going to pull back for a couple days and then break out or what's he gonna do we don't really know yet and we're just waiting to see what happens yep exactly um roland is there anything you're watching this morning for a play dude i'm having all sorts of issues this morning man i'm having broker issues right now just trying to get logged in here so you know you brought up brokers we can talk about some of our favorite brokers there we go i know it's a common question i usually get um just real quick i could probably name it for all of us i know that uh all three i think roland do use schwab for charting and then he trade for actually making the trades right no no i trade i trade schwab as well and then i also have a trade zero account and the speed trader account cool um i i have um i have a cobra account as well as a guardian account the reason i have two accounts those are both short selling accounts the reason i have two it really applies right now um you gotta play the broker game if you're a short seller um i know a lot of people probably here are not short sellers but there might be one or two short sellers um if you guys are gravitating towards that side of the of the equation you really gotta play the broker game i know that certain stocks are on the reg show list which means you're not able to trade them at certain brokers like cobra and speed trader and currently i believe center point i'm not talking from personal experience but my personal experience with guardian which is the other broker i have the reg show list stocks are able to be traded so where i can't trade them on cobra i can trade them on center point or guardian so that's kind of like playing the broker game right if the opportunity is not one place it might be somewhere else and it is worthwhile to have multiple accounts for that reason you don't need to have your full account in in one broker um and sometimes it you know allows you to ascertain other opportunity by having more than one broker um for longing i pretty much stick to e-trade i know dom does as well um really good executions really good charting software not great for short selling not great for short selling otcs um so you definitely need to play that broker game again right like having the broker to ascertain the opportunity that you're looking for that you find profitable and uh familiar some of the stuff i'm watching right now i have ilus on the screen i do think that has the most potential if i can just sit tight and let that develop perfectly and that be my only you know trade for the rest of the week i'm gonna have a phenomenal week you know whether it's a gain or a loss like if i just can sit here and be disciplined enough to say hey i don't know what to do with most thing in the market most things in the market is focaccia it's white noise it's built to distract you so like my whole thing is like having that one trade where it's like win or loss i'm happy with the result because i know in my heart that that's one of my eight plus setups and in those scenarios if i lose my my my money i'm happy um i definitely want to talk about you know sizing into place consistent risk how we manage that that dollar risk that we lose on our a plus setups um i think that's a great thing to learn especially as a beginner uh i'm kind of watching isle us right now again not really going to push any buttons irnt is iron at inc is the other one i'm kind of watching although it already feels like the long has come and gone it looks like a multi-day breakout over the 24 range now it's tapping on 30 all-time high breakout um that's that thing again that's the thing that don was talking about and rolling where like do you really want to be buying a breakout where you could be buying the highs and have terrible risk reward uh so yeah i mean yeah irmt is breaking out of the 30 level but at the same time you know it just came from 25 24 which looks like a multi-day trigger so if i'm buying four dollars higher where's my reward right it's shot in the foot i can't actually buy up here and actually have meaningful position size uh i do i do want to talk about sizing into place um it's something that i talk to brittany about it's something that roland's always done um intuitively and uh dom does it interestingly i just don't really understand how his brain works sometimes but he does things that i don't understand often but for for me when i'm sizing into an a plus play i'm looking for consistent risk and again it's something that gratani put me on i remember back in the day i was having a hard time sizing into place um again this is a little bit of an advanced topic but often times when i would have this like picture perfect overextending gap down this really started happening in the covet era back in 2020 um it would be a perfect you know first red day type scenario very volatile stock and when the time came to enter i would you know on a 14 stock have like 400 shares and that might be a lot to whoever's watching this but imagine you know you're in my shoes and you have 250 thousand dollars 200 000 in your account at the time right why do i only have 400 shares in a 15 stock like i can i can take on more risk i can lose more right and that was my whole thing like i was just always so skittish i was always just looking to you know aim small miss small and my account as a result grew very steadily and very you know consistently but very slowly um it was like a turtle uh and i talked to gratani about it and he said honey you need to take on project 1k risk and i said what's that and he said for all of your a plus setups you need to risk a thousand dollars and again that's for me for where my account was at you got to figure out that number for you because sometimes you do take more than one loss sometimes you do size in aggressively there are bad things that happen so definitely figure out that loss number for you and make sure it's an appropriate number that you're okay losing because one of the things about trading stocks in this market is like you're going to lose you cannot be afraid to lose like it's a game of odds it's a game of statistics nothing's a hundred percent so again i tony put me on this mission to find that that dollar amount that i can lose in all my eight plus setups and you know regardless my account it wasn't some percentage of my account you know i had you know a lot of money in my account but a thousand dollars was the amount that i could lose once twice maybe even three times in a day if i had to try it through different trades and still end up pro like still end up um sane like i could sleep at night is is the word i'm looking for where if i lose five ten twenty thousand in a day i wanna throw my laptop against the wall and shatter into millions of pieces um so you know i had to i had to adjust to what was right for me um even though my account could handle a lot more than a thousand dollar risk and for nine ten months i sized into every single play that i thought was a plus to my risk level so before i got in i knew my entry i knew where i would get out if i was wrong and i made sure that i lost a thousand dollars every time i was wrong and that helped me size into the best of plays and that helped me see risk reward for what it truly was because the closer and closer i was to that risk level the more size the more equity i could have in the stock at the same time time still losing a thousand dollars now you have to be aware that there are times where your stop loss you know maybe it's not manually put in so the stock is going to blow through it you're going to lose a lot more than your intended thousand dollar risk um that's totally fine like you know you know crap happens that's that's saying um you just be aware that you know bigger losses do happen because you know we're dealing with such in the moment stuff that wild stuff does happen um but the the premise of the idea is like okay size in with that thousand dollar for me size in with that thousand dollar risk and then see what that risk reward benefit is on on the opposite side um so sometimes you know if from risking a dollar a share on a stock that's a thousand shares but if i'm risking 10 cents on a stock that's 10 000 shares right it doesn't matter how much money i'm putting in it's the literal dollar amount from my entry to the risk that i need to size into a thousand dollars and i stayed at a thousand dollars for ten you know ten months i had a hundred k month with thousand dollar risk i had a two hundred thousand dollar month with thousand dollar risk so you don't need you know a lot of money to make a lot of money that's one of the big things i learned in my size enough career i used to just you know i thought like my account was big so i just started taking really big positions like all in type scenarios and i would lose 10 20 000 and i would not make anywhere near the amount of money i started making was thousand dollar risk and focusing on risk reward uh so that was a big shift in my trading um it definitely helped me get to a point where i could size up but in a methodical and strategical way and i wish i could teach more people this i wish i could you know talk about this more i know brittany made a youtube series where he was actually sizing in too big and blowing up his accounts losing you know multiple six-figure uh losses um and so he went to youtube and he documented his trading career where he was like hey i'm you know sizing down i'm going back from 10th up he goes he does 10 000 risk and he signs back down to a thousand dollar risk and slowly edged his way back up to fix his big loss scenario um it's a great youtube series it's absolutely free just look up tim grittani monthly recaps um and i and and katana told me to do the same thing he told me he instructed me to watch those and and kind of emulate him in order and i had the opposite problem cortany was sizing in too big i was sizing in too small and that's really helped me you know since then i've moved my thousand dollar risk it's now near two thousand dollar risk you know roughly a year and a half later to give you perspective on how long i stayed a thousand dollar risk yes the gains seem small but you know when you're hot when the market's hot you can really start moving the needle with just not a lot of money at play you really don't need um you know 50 000 in a stock in order to make a healthy profit in fact a lot of my big gains in 2020 were with you know 10 to 20 000 positions which are still pretty big but it's not unreasonable to have that much money in account and utilize it correctly um so that's my whole thing on consistent risk and and stuff do you guys want to talk about what you're seeing on the market i'm not really watching no i want to add to that real quick though because it's important in terms of sizing like notice he didn't say like he didn't he wasn't saying he's risking a thousand dollars on every trade he said he's risking a thousand dollars on his best setups um he's like it's important that for at least the way i trade and the way i like to look at things that that i am risking less on less good setups for the most part if that makes sense it needs to be kind of more of a scale the way the way i look at it is that if you're not if you're i want to risk the most on the best highest probability setups i know that's when i want to really put my chips on the table and put my my balls on the table and roland and i'll even add to that if you don't feel like risking the full amount that you do on a great setup you probably shouldn't even be taking the trade like i've gotten to the point like now where like i used to like i had to be in something like there's no way i could sit here at 9 30 like i have today and earlier this week and not even tried to make a trade but like i'm so disciplined now that it's like i know that there's stuff setting up for like i have my ilus i'm looking at some first green day's potential like if i don't feel like there is a really good setup that deserves like let's call it a thousand dollar risk whatever your max number is then you probably shouldn't even take the trade because those gains aren't going to be good enough to like what we talked about risk ward cover like five losses like that's not possible so i'd rather just wait and like keep my mental energy until those you know a plus pluses show up yeah no i totally agree um but but for me there are times where like there's there are no a plus pluses for a while and then that just happens like uh there there just aren't always a plus plays so for me it like and and i have a very similar attitude i've had to come off of that attitude over the last couple months of being so disciplined and not training that doesn't set up for me uh because i had nothing to trade you know like they're they're in other words um i still gotta make money i still gotta feed my family so just because something isn't set for me personally if something's not setting up a hundred percent perfectly but maybe eighty percent seventy percent of what i generally like to see maybe the catalyst isn't the best it's maybe the markets aren't necessarily the best my eight plus setup can come in a shitty market and then not not yield what it even close to what it would yield in a great market so i keep that in mind um i keep i keep in mind that the markets are changing and just because my a plus setup's there i still want to hit it i just might have to hit a little bit differently depending on what the overall markets are doing no i think that's like super important because like this summer for me has been super slow with otcs and this happens like every year at some point like they're super cyclical and when they're not there like there's still patterns like ilus has been here uh we had what was it tsoi there's been like one decent one a month but they're different than like a hot otc market where all the breakouts are running each day without going red like there's been little nuances that have changed and i've had to adapt to those like they're still my bread and butter but i'm not playing them the same way and maybe roland you want to go over like what like a perfect market is for like your setups like these first gap and crap these first green day like gap crap reversals like when things are firing at all cylinders what does that look like is there differences in the daily chart what does the similarities look like that you know like you want to attack these differently dude it comes down to our stocks running or not for the most part in nasdaq um and when i say running like 60 70 80 100 in a day like when nasdaq when the nasdaq markets are hot you get at least 100 runner or multiple ones every single day for like weeks on end um it's like it hasn't been that way for maybe six months it's been and i think it's kind of the same with the otc market we had at the end of 2020 well between from when the pandemic started until basically february of last year we saw some of the craziest action i've ever seen so first we had a big crash we had the big market crash in march i think it was and since then everything's gone up but it culminated in january and february in both the otc market and then and the listed markets um every single small cap stock went went crazy every single one basically every single otc ran like thousands of percentages for the most part every single nasdaq and i was so concentrated on the otcs because it was like candyland there i wasn't focusing i wasn't even scanning i mean i was scanning but i wasn't really playing nasdaq all of those went up too so january february of this year we saw the biggest craziest micro cap small cap penny stock spikes that we've ever seen ever in the history of the market that's a fact if you look at the volume and you look at all the charts there's never been anything like what just happened i think that we're seeing the lull from that still it's been a long kind of lull because everything got so overextended a lot of it for no reason whatsoever so i think that has what has made the training tricky over the last couple months was we have all these bag holders from january february still new investors new traders who are just holding bags um a lot of stuff i think a lot of over extension from january february and that's kind of the effects so i've actually struggled a little bit because of that i don't like playing stocks that have recent overhead resistance okay when i'm when i'm trying to go long that's one of my criteria like i don't want something that just ran big um on volume because that means are going to be bag holders it becomes a supply and demand issue it sets up levels of resistance people are going to be shorting on charts it does a lot of things to a chart once something's gone parabolic um like you saw like some of you maybe who haven't been trading but some of you maybe know crypto and bitcoin ran to 20 back in 1718 and then took a really really long time to get back there took like three years yeah um so it's and and when penny as far as penny stocks are concerned most of those are never going to get back to those highs uh as far as i'm concerned so that is what has made it kind of a difficult environment i think over the last couple months for a lot of traders who trade listed stocks in otc stocks but mainly what i deal with is the listed and it's been a difficult environment because of that uh but to get i kind of diverge but to get back to what tom was saying um i like when it's like macro driven small cap stuff so i honey was mentioning sector momentum earlier that's been one of the areas where i've made most of my money in the markets and chunks whenever it comes i can make a ton of money from sector momentum anytime it comes because what it does is it gives you a wide variety of stocks to play and it's not just listed stocks it's otc stocks too and that's what's great like generally speaking like corona we saw it uh last year obviously corona stocks but then there were like food delivery stocks ifmk um a couple other grills some of the food delivery and food prep services because everyone was sitting at home boom and then um we had obviously uh the bitcoin plays we had nft plays now we have chinese employees we have educational there are all these different sectors um but that that hasn't been hot recently either so it's been one of those it's been one of those things it's a it's been a tougher environment for me um and i'm just sitting around doing what i'm saying and i think i think you nailed it on the head like we had such exuberance for three or four months you know from january to march that literally the charts got mangled um we put so much resistance so much overheads uh supply into all these piece of crap tickers that pretty much every any kind of momentum you saw in any of the pickers that ran in the past year ran into serious you know resistance and it and it stops momentum and literally they run into supply they run into into sellers so your percent gains are not great and you don't know when to sell them and they just crash on you and you take a loss and again a lot of it like you know roland started this whole thing with like he's looking for a fresh chart and unfortunately like there was literally no fresh charts left like literally i think at one point there was like nine stocks like underneath the buck and then one day there was like maybe one left and and the micro cap stocks like they were still underneath the buck on the on the nasdaq that's crazy it's great uh talking about because like if you look if you look at what has ran nasdaq wise i don't know how much you you two have been following the nasdaq but if you look at what has ran in the listed market over the last two months it's basically ipos and like some specs and some mergers that change their names so they get fresh charts that is what we've been like seriously uh what was last week's it was uh eftr i think yeah all these like look at eftr go to the daily fresh chart for the most part it was a merger news but but that happened um it's been stuff like that i'm dp today go to indp indp same thing fresh chart that's kind of what we've been seeing and i don't and i don't really haven't been able to find too much random reason to these they're being pumped super hard by some of the big chat rooms which is another thing you guys have to understand that's happening especially in the listed realm uh it's not it's otcs get pumped as well but in the listed realm we have these you know obviously wall street bets then there's like the atlas chat room which has like hundreds of thousands of people in it and there are these big free chat rooms or paid services that are just pumping these stocks massively to a bunch of noobs and that's a lot of what i've been seeing in nasdaq too which i don't like trading those ones either for the most part unless i get a great entry um so it's just it's been a more difficult environment and i've been troubleshooting for the last two weeks or so since i got back into trading uh consistently so i i know i know rolling your specialty is again it's a reverse cap and crap um scenario so the stock gaps up it's trading a lot of volume it's got some kind of good news associated to it some kind of fda approval phase something he's looking for a stock that's strong has a good catalyst and has volume preferably it's a lower market cap so you're going to see that one to two dollar range that one hold spike to two is kind of what he's always coined in his head um and again it is very driven on a macro sense it is very driven on on on the premise that like we've had prior runners and now there's a reason for this to run um sorry quickly one to two was like my favorite thing back in the day when we traded together uh but and yeah that was like the greatest thing ever because one to two was amazing it's a hundred percent gain you could take a ton of shares um but because of what happened in the markets over the last year there are like no one to twos they've start there are we've gotten a lot of fades recently finally gotten some stocks back under a buck cei just went from whatever 30 cents to a buck almost two bucks basically um one to two but i that's what i've been like on it and i think i i do i did say this back in february and march i gotta wait now for these stocks to fade back because i can't i and i think it's finally starting to happen now that i'm looking at my scans i'm finally starting to see cheaper stocks again but i'm telling you for for three four five months i saw almost no stocks under two dollars and i saw no stocks under a dollar none listed wise none and uh and that makes you a very difficult trading environment especially for you like what you're used to is no longer there so how do you adapt and it's either i've had to adapt by trying to trade higher price stocks uh even like i never used to scan for stocks over ten dollars because i didn't like playing them and they weren't very volatile and just based on my scanning over time i realized the only stocks that gained fifty to a hundred percent in a day were under ten bucks for the most part this was like traditionally prior to 2020. um 2020 changed the game and covet changed the game so and and stimulus checks changed the game and lockdowns changed the game you know we had a we had millions of new traders over the last year where we we were used to just dealing with you know kind of a very small niche of people that we were able to take easy advantage of and it's still you can still do that but now we've got a lot different things uh we didn't used to see like algorithmic algorithmic trading so much or you know hedge funds really deal in stock small cap so much and we're seeing just a lot more different things now uh so i'm adapting and you have to adapt that's the only you adapt or you perish so that's the only way to do it rolling do you have any uh that that's where that thousand dollar risk comes in like if your setup isn't there if things aren't working for you then like you don't have to take a thousand dollars on any given setup like it's like i said like it's your a plus setup right so if roland's got to figure out like higher priced stocks like he's not going to go in with the same size where his one to two dollar familiarity is right i've had the size so far down that it makes me uncomfortable like how small my size has been like recently it's been very small and that is just me protecting myself and that's what you guys have to understand like the ebbs and flows of trading it's not anyone who's banking every day is lying for the most part the way i see it um it's not that kind of game there are going to be days even weeks where you're going to struggle and yeah so that's for me it's about like when i get into uncomfortable scenarios i size down um until i become comfortable enough to size back up on and he's giving i'm not gonna just go balls to the wall on something that i'm not familiar with i'm like a small fish out of water when i'm looking at these stocks like indp i'm not not out of water i know what the hell they're doing i've been doing this long ass time but in terms of like my my strategies and how i like to play i don't see anything there for me you know what i mean and so i end up training random kind of things and that's been the story like if we're talking about therapy so
2021-10-05 18:14
