Trading Patterns My Student Used for His Best Trading Year
- [Jack] All right, just wanna say (cow mooing) 2020 has been an insane year for so many traders. I see so many people that, have been studying over the years from 2017, 2018, 2019 and just absolutely crushing it this year. And that's just the market that we've been in where there's just so many opportunities.
Every single day, everything's running from Bitcoin, to EV, to the Weave stock and so many more sectors, the drone stocks and it's just absolutely been unreal. People that are new, I think if this is your first year don't feel bad at all that maybe you're not nailing, or you think you should be doing better because I remember in 2017 that was my first year of kind of figuring everything out. I saw so many people nailing like Dux and Roland. That's kind of me, Kyle and Matt now like the Dux and the Roland, they were doing really well in 2017 even Huddie was doing really well, 2017, 2018. And basically I made nothing that year. Like I think I was down like a thousand bucks, but I just watched the market and learned kinda how these traders go about it and just really just gaining the experience of seeing the market every single day and how these traders execute.
That's really what does it, is just learning from transparent traders is definitely number one, seeing all the trades that they make everything that people do, live commentary is great and just watching and observing. And that's what I did when I first started, and I wasn't making any money at all. So, just wanna get the new guys out there a little thing, not to feel bad, you know what I mean? Because I didn't really feel too bad in 2017 just because I know this is a lifelong process. And I think I was like 19 at that time, so I just didn't expect much so just going in with the right expectations. But then as I saw the next hot market in 2018 that's when I started kind of figuring everything out taking some trades it's when I was over PDT. So I started making some trades, and it didn't really go so well, especially because I started off trying to short and just in this market, like shorting is not easy.
If you look at ALPP, the stocks ran, from a low of like 5 cents to $4.80 cents and that's just absolutely insane and these stocks just keep going, it's really impressive. All these stocks, and it's definitely a long bias market, I would say right now, for sure. I'm not so sure on NASDAQ land I haven't really been trading too many NASDAQs. But with the OTCs I've been seeing a lot of people just crushing it on the long side. A lot of people that started getting it this year just doubled their entire year to date profits, in this last month, which is almost the case for me too.
So it's just kinda crazy that 2020 was already insane and then December was like a double of the entire year so just insane, insane action. And it's really just all about compounding and yeah I've been sizing up pretty aggressively this month and that's how I made just under 800,000 on the month. And it really was just compounding and sizing up with the liquidity, that was here and I just really stopped caring about the money and I just cared about the trade. And this is not topic I want to get into is like with the money, like yes, a lot of people get into trading because you wanna make a lot of money, you wanna be your own boss, you wanna travel and trade, you wanna buy nice things, And that really wasn't like my mindset ever, like I still... I don't know how to spend money. I was just telling Tim and Kyle and Monaco this, I don't know how to spend money, I don't know what to spend money on, I don't know what to do, I still grocery shop.
I still have a 2003 Toyota Highlander with 196,000 miles on it. I still cook my own meals. I still just do the same things I did, before I had any money at all. And basically, I got into this game because I just love trading. Like trading is, I think of it as, the most insane like video game that you can play out there where there's charts and there's these graph's, and there's level two and time and sales, and there's these patterns and there's news. So, I just fell in love with trading and the money just keeps my score.
So yeah, someone's saying diamond chains. I do like chains, which are cool, but Tim already spoiled me with a 25 grand diamond chain, which is pretty insane, I love it, super grateful for that. But other than that, I don't really know, just grinding out for now and it's just pretty crazy. Like at the beginning of the year I just started with just a bit over 100,000, I think my starting capital was 112,000, spread out through three brokers.
And I think I started with like 55K in my E-Trade account. Hold on I can pull it up right now. I can pull this up. So, I mean as you can see right here, I started with just 112,000 to start the year, which was from last year and then after taxes and I was living in Michigan.
So I made like 130,000 last year, and I started like 29,000. So after spending whatever to live started with 112,000, (cow mooing) and of course I haven't updated December, but this should be just under 2 million before taxes, obviously. But, I mean this is what's possible with starting with 100,000. Like I started with 100,000 I had the experience from one year of watching, 2018 of trying and failing at the beginning, but then slowly getting it, and then year three of it. In 2019 I was off to a good start, I made like 75%, 80% of my money in the first two months, and then it just stopped like, my patterns and everything just stopped. So what I had to do was try to adapt and keep learning and that was really, I think when I grew the most, after I made the 100,000 in 2019 and then just basically made nothing for the next six months well not nothing, but, you know, 2K, 3K, 5K a month, something small.
But I was working so hard, and I was trying all these different strategies and this time I was living in Michigan and I just kept at it and I kept watching stocks every single day, just like TV. And eventually when this year started, like I was prepared not to slow down this year. Like a lot of traders are like, oh, I made X like I'm done for the day, or I did something or I'm traveling, I'm going to live my life or whatever and that's great. And that's what's so nice about trading, you can choose if you wanna just make a quick 1 or 2000 in the morning and then go drink coconuts by the beach in Mexico or something like that.
I know plenty of traders that do that and love traveling and doing all that. But for me, that's not what I love doing, I love trading. So it's not about, getting back to it's not about money, it's just about loving the process of trading. And like, I wanna be the best trader that I can be and when the market's there, I'm not slowing down, I'm not stopping, I'm keep pushing myself, keep trying to get better every single day.
And that mindset over the last two years is what's gotten me to this point of what I've achieved so far. And like, I'm not stopping here either, I'm not stopping, I'm gonna keep going and see how far I can push it. (cow mooing) By just always being aware of the market, always being aware of what's going on. So I will be able to recognize when it's slowing down and then potentially take my foot off the gas and then start doing other things, you know what I mean? But for right now, I'm continuing to go and I'm very grateful of all the breaks throughout this year. I love how tomorrow's off and last week we got Friday off too and that's great for me.
Like there's nothing better than forced breaks because then I can really recover and get refreshed for next week. So other than that now we can get into some questions, some charts like whatever you guys wanna ask me. So throw out some questions. Alright, I see some questions. Do you think a newbie should start with listed stocks or OTCs? I wanna focus on listed stocks because of liquidity and transparency, but seems like you end (cow mooing) with kind of all OTCs. So the way I look at this is basically there's all different kinds of markets, you have OTC, you have NASDAQ, you have large caps you have options.
You have all these different kinds of vehicles to trade, and in my opinion, OTC is just kind of like beginner league. Like Sykes always talks about how it's trading OTCs, is like playing basketball against midgets. And for me, I just feel like, okay, it's the easiest league so why don't I try to become the best at the easiest thing and then I can move up to like the next league so that's why I started in OTCs. And for me, I kinda just always had a good feel for OTC, so I just stuck with it and kept trying to maximize the best that I could, but I still do trade NASDAQs but I'm just cautious on NASDAQs because they're so fast, and they're a lot more manipulated against you, I feel like, where OTCs seem a little bit more gradual, and smooth and easy, where NASDAQ's kind of, it's hard. But you shouldn't just be like, oh, I'm just gonna trade OTCs, try out both.
I tried out everything when I first started. Longing, shorting, NASDAQ, OTC and then when I found out that shorting was just really tough to start with then I started with OTC longs and that's how I got like years rolling. So Maddie B says, "Was ever about the money for you? "Do you feel like motivations evolved, "into loving the game instead?" Yeah, I would say definitely, what peaks everyone's interest obviously is, you have no boss, there's no...
What I really liked was there is no limit, to how good you could do. Of course there's some levels that you can max out at, but you can really grow a few thousand, into to a few million and then make a few million and it's plenty of money obviously. But yeah, I just liked how you could reach such a high level from nothing. And I love achieving high whatever it was in life like whether it was video games, this is probably my best example. I liked being the highest level in the video game just because I like pushing myself to be the best.
So it really wasn't about the money, I mean, it was about the money but then it was just about trying to be the best. So now I don't think about the money anymore, I think about being the best. And the best, not like I'm not referring to other traders, or anything, like the best I possibly can be, so I don't care who's making what elsewhere, I care about if I'm doing the best I possibly can so that's what I mean. Jack, can you explain why you prefer the 15 day 15 minute chart? Yeah, so the 15 day 15 minutes has always been kinda the chart that I look for.
ASTI was a big trade for me this week. Well, not really dollar size, just because it was so low priced down here, in the twos, in the dub two and the dub three. But the 15 day 15 minute really shows you the key support and the breakout and the volume increase. So just looking at the stock, like it had made a nice run and then was consolidating. So I started buying it here and then I added on the confirm breakout but the 15 minute 15 day doesn't really show anything here.
But then I would say, once we get into this where the breakout did fail, but the 15 day 15 minutes is so clear here, compared to a one day, one minute or whatever. Like, clear morning spike and then like pulls back, and this just consolidates and then it gets super tight, right? And then this kinda has to pick a range, right? It has to pick which way it's gonna go where you can see as the price action tightens, just basic trend lines for your guys. And then you get the increased volume here and this is kind of a trigger I can use on the 15 day 15 minute as it starts breaking this range, into the sevens and the eights. Then it's probably gonna test the multi-day breakout level, which it did and that's kinda how I look at it. (keyboard clicking) T-A-U-G.
Actually I have some of this long over the weekend but this one kind of shows it too, like, just the bigger trends where we start holding these higher lows. Like, it creates a low here, kinda creates some support, and then today holds higher and then starts to go sideways, at the key level here. And then into the close, we got the volume increase and it goes. So, Sometimes it's just nice to see the bigger picture, of course the daily chart is very key as well, but when everything lines up the one day one minute the 15 day 15 minute and the daily, that's usually when the best trades happen, on the long side. Dang, there's so many questions. Have you always had patience or did it take time to learn? I would say it takes time to learn, but you just need the right mindset.
So you're not gonna pick it up this year, and then just start crushing it and making a turn. I mean sure you could, but you probably have learned all the wrong lessons. I just understood at the beginning, it's about starting small, and then as you get better and better then that's when you scale up over time.
And I understood that, okay, I'm 19 years old like people have to go to college for four years, and then they have to do internships and they have to pay. And I just looked at this kinda as that, I'm not gonna make a million dollars overnight. But if I learn the correct process and I scale up over time, then I can achieve my goals. I don't need to make it overnight, it's gonna be a long road.
Can you talk about your worst losing experience? Was that your biggest loss? My worst losing experience. Like, I lost (keyboard typing) 37,000 on LKNCY and see this day, I'm shorting it, but I shook it off so quick. Where I'll just show you kinda of what happens, I went long at the open because it was a breakout or not the open, somewhere in here and then I sold and then I rebought then I sold again at low day and I got chopped out of it. And then it was going sideways here, and I got some again in the support. And then I added some and then I think I sold my shares at like five seven, and it just went parabolic a dollar a share with two red candles, like this is a parabolic from 550 to 650.
So I got short 625, with like 40,000 shares and it was just way too much for the liquidity. It came down and consolidated I covered a little bit and then it just basically went from printing 615 to printing 650 and I took it off. I took some off up here and then I got the rest out, into the step and ended up losing like 37,000.
And basically I didn't really like care too much. I just knew I got caught in a short squeeze and I just took it off for a loss, and I had way too big a size. And it didn't really like affect me too much because like I said this month I'm not really thinking about the money. I just accepted that I made a mistake, shouldn't have been shorting with that much size into parallel with massive volume and I should have been doing better on the long. I think I didn't do as good on the long as I wanted to, so I tried to make it back with shorting and that was kinda my flawed mindset there and like I said, I shook it off really quickly. Yeah, 37 grand's a lot of money when you think about it in the real world, but at the end of the day, I still finished green on the day and I'd been crushing it so it's not detrimental to my account.
on H-E-A-R, someone can link that video to video lesson. That hurt the most, for sure, it was like 20 or 30% of my net worth at the time and I'd literally studied for an entire year, worked as hard as I could to get over the PDT. And basically I just lost like so much of my hard work like I'd worked so hard to save up enough money and then it was just all gone so quick and that hurt the most. Look, I could have given up there, but I didn't, I had to reset, I had to create a new process and then build it up slowly and that was my biggest lesson. Michael Good wants to know about my ALPP shorts. So that's a really good question I'm happy you asked that so I really wanna go over this one, so I have the chart up.
ALPP has been a tricky one, it started from 5 cents and it's gone up really big. I first started shorting it this day and i made some decent money shorting it this day, dropped like 40% and then it kept going and got choppy and I thought like here it was just kinda gonna be over 40 cents, And then it kept going, just still ignoring it then this is when it got back onto my radar, I was like, wow, this is crazy. So then I got short this day and I held overnight and I was up 10 grand and then it squeezed straight up and I took it off to breakeven. The next day, there were at least some news, pre-market and unfortunately I didn't see the news until I was like, why is it spiking so hard and then I saw the news and I took it off. Probably would have been out right at the open if I had saw the news earlier, which is just me being lazy and I shouldn't have been that lazy. And then I ignored it, thought about playing this one 120 breakout but this was on a Friday and into Fridays, I like not to swing too many things because I'm usually just burnt out and this had weak volume but then it ended up squeezing out again.
And then this day I shorted it again and started wicking and I think I had some short overnight or at the bottom I was up like 20 grand, then it came all the way back and I was break even swung it overnight and then it dipped back down to the two support. I was up 20 grand again and then it just vertical bounced straight from two and close at three bucks I took my shares off over the 270 level. So that was super frustrating, it was like a 20K win to a 15K loss.
Then I was like... But then I started noticing a trend on the stock, right? And that's what helped me today, where this held the low right here, right? This held like previous days lows held and then we get the same kind of action right here, at the previous day's low hold and then do the NASDAQ news or whatever gaps up, spikes up huge. Then this day I knew what to look for, I knew that okay, if it holds 350, I need to get out because this has already happened so many times to me so if it starts doing again, this day I took it off. I started trading really well this week, like I got burned on it this week, this week was breakeven, got burned on it this week, this week, I nailed it.
Like this day I had shorted the parabolic at the open and long did a bunch, so I think I'm up maybe like 50K on it this week. And pretty much every day I've been green on it, so this day I shorted the parabolic and I bought a couple of deeps. And this day I was short, but I was being safer this time realizing that's probably not gonna break down at the double bottoms and I got out maybe in the 370s. And just another thing that I hadn't noticed, now to get into the Intraday chart and getting into today's trade on it. So when the volume disappears, it bounces, right? Like I missed my fills this day, like at the open I only filled a fifth of the size I wanted, so I got shortened to these bounces and I think I had like a 420, 430 average, I think 430.
And then it washed out really hard then I covered some, like a good boy into this wash and then it bounced back and I add some back and then it washed down here and I was like, okay this is where I was really convicted like all right this thing's over because it takes so long to balance and then it just dumps straight away. But they did hold it and then right when it got to these levels here, I think I was like, okay the volume's dying down, right? And this is when I get out, because when the volume dies down is when they manipulate it super hard and you can't even fill your shares or do anything. So I got out of my short with the size here and then unfortunately they got me back in after these bounces had failed. And I was like, okay, this might pick up volume into the close and roll over because this is like one gradual long bounce. So I got re-short into this breakdown here where I thought it was a breakdown and the volume started to increase a little bit and then it just held.
And I started covering my shares slowly here, 'cause I was like, this is just dumb and then a huge 300K bid came in and I got a good fill here at four and I cut it. So that was my trade there on it, I ignored it for the rest of the day and this was my best trade on it, the last two days where I would just really have learned how it moves. So once again, I got partial fill out the open when I shorted and I just covered it into these deeps down here 'cause I didn't trust it.
And I held a small piece risking 410 and then they stopped me out, of course. But I'm still green on the trade because I covered a lot down here. And then as this thing starts to fail midday, I'm just thinking, like the stock hasn't had two red days all month, right? So red day, green day, red day, green day, red day green day, red day, green day, red day, green day, red day green day, red day, green day, red day, green day.
So it's never had two red daily candle sticks. So that was kinda my new thesis on it was once it had two red candles and it closed near the lows, it could potentially have a huge unwind the next day. So I got short into this sideways action slowly building in just because I wanted to make sure this was gonna fail and it wasn't a one hit trade and then just wait, like this took me like a few hours to size into this. And then once it started failing into the close, I added a bit more at the close and we got the beautiful gap down and wash out today. And I was being pretty greedy today, once again, I was kinda waiting for like the all-out dump and the volume was huge in the morning and I didn't cover any, but I did bought some here at 283 and I sold into the pop at three for like 7% or whatever. And then the big push comes in and then as you can see we had the volume start dying down again and I was like, okay, this is probably not it And then the big bid comes in, all right? Unfortunately I was looking at something else and I missed my covers so I would have been out here at three bucks, I saw this is where like I covered, this is where I wanted to cover, but it squeezed out and I had a bigger size this day.
And then as the volume diminishes, I just slowly started covering into the dips as much as I could. And then I was all out into this 320 area and then I had my swift and my other accounts still short that I hadn't covered yet and then it dipped, then I got out at 320 here so that was like a 30K trade. I guess at the lows I was up more, but that wasn't my plan, I was just waiting to see what they were gonna do with it so that was the thesis. And then one thing nobody looks at which I like to look at is the weekly chart.
So as you can see, it's gone up for one, two, three, four, five, six, seven weeks straight. That's why I've been so aggressively shorting it and like watching it because I know when they let this go this can unwind way harder than anyone thinks. And as long as you got a good position you can just let it work and that was kind of my thesis since a buck and now it's at four bucks. So I'm still watching this next week, I don't know what's gonna happen, now it's a lot choppier. I think they'll have a green day on it on Monday based on how the daily candlestick closed.
But I thought we were gonna have the first red week this week and that's why I was aggressively holding this morning, we'll see. Here's the other thing to kind of like think about. So here there's a bunch of volume and it's slow and choppy, but you can see it, we're speeding up, we start speeding up these two weeks and this was the real speed up and then we had another week where we had gaped up so I thought this was gonna be the first red week.
Think about the first red day pattern and then think about the first red day week that was kind of what I was thinking on this one. And just very pumpy where it just dumped and then just brought it all the way back, so we'll see what happens with that one. What's your idea of pre-market scan? I don't pre-market scan, I just look at news on otcmarkets.com and I also do my watch list the night before.
I have watch lists with like all the hot tickers and this is what I'll watch and this is how I find my stocks. I just keep all the recent runners, like I always tell everyone to keep the recent runners on your watch list and that's how you find plays. That's how I find all my plays is just Twitter scanning or going through my watch list, like I don't scan for top percent gainers because that's just distracting me off the plans I already have.
Of course if I can't find anything, then I'll look at a percent gainer, I have StocksToTrade, and I use StocksToTrade to scan when I do, and I just simply use the top percent gainer. But I don't do any pre-market scan because it just distracts me of the place that I already have from the night before. Can you talk about the recent trades or whatever? I just did talk about ALPP and ASTI and TAUG, so I'm gonna skip that one.
I'll get into some more charts, but I wanna get back on these questions. What strategy were you doing when you finally got it? Like I've said before, like a lot of times I always talk about this, I used to short and that didn't work, so then I started longing OTCs. And I don't know if you guys probably don't know who Don Master Mateo is but he's the one, who really got me profitable. I just realized he was applying all of Tim's lessons the seven step framework, cutting losses quickly and once I got that, I started doing well.
Like at the beginning, I was trying to be like Dux, and I was trying to be like Tim Grittani and of course they do really well but they had a way bigger account than me. So when you start small it's about cutting your losses quickly, not doing anything to like crush you, you know what I mean? You can't risk a blow up ever, It's good to start small, cutting losses as quickly and just learning as you go. So OTC breakouts, OTC panic dip buys, OTC first green days those are the three patterns that made me my first hundred thousand and those still make me money all the time. What were some watershed moments lessons that improved your trading greatly once you learned them? So like I was saying, there about cutting losses quickly.
I was trying to think about another one that kind of changed I would say, like this isn't for an experienced one, this is not for inexperienced traders but like for experienced traders. The lesson that I learned this year was how important liquidity is and like I said, like ALPP, the volume really helped me, once it started getting a liquid that's when I know they're not selling shares anymore, they're gonna start manipulating it back up. So just learning how to read the volume, definitely has helped me.
What has been my most profitable pattern? How do you calculate risk? My most profitable pattern this year has been OTC first red day shorts, OTC breakouts and OTC panic dip buys. Everything that is in seven step framework guys, I don't do anything special I think that's the coolest part about my journey. Like sure, Dux was cool because he made a bunch, but he was doing something that Tim really doesn't teach. Roland was cool, but he was buying gappers, and swinging stocks overnight and he just kind of had a different perspective. but I feel like what's cool about my journey is I really just stuck to the seven step framework of supernovas.
If you guys haven't watched that DVD, you have to watch it, Penny stocking Framework and it just printed like how the charts are supposed to look in my head. And then I just gained experience trading them and learning little nuances throughout the patterns but I just stuck to what I was taught and I didn't go out and learn anything new on my own, like pattern wise. I didn't try to develop a new pattern I just stuck to what works. How do I calculate risk? Honestly, I'm not really sure every time I get into a trade how much I'm gonna lose because I just take what the liquidity offers and this is like more experienced but I just take what the liquidity offers and I just cut it quickly if it's not working. And of course I'll take smaller size on more speculative trades and bigger size on more familiar trades. But I would say just starting in the beginning, just take very small don't even think about the risk, just put in like a very small amount and if it just doesn't work, just cut it.
Like use $1000, use $500 preposition. Use a hundred shares or whatever and just cut it if it doesn't work. When I focused on how much I was gonna lose like sometimes I would do like how Tim Grittani does it, where he calculates okay, if I buy the stock at 310 and I risk 3 bucks and I want to risk 500 bucks, I can buy 5,000 shares. And I just found when I did that, I just didn't see too much success because I was always focused on making sure my losses were perfect.
And sometimes when it didn't work I would hold on longer, cause I didn't wanna take the loss. And when I just focused on cutting it quick no matter what, I just cut my losses quickly and just make sure to get out quick. And I think that's way more important than making sure you're gonna have the exact risk, I just cut quick and that's how I calculate my risk, I cut quick.
What do I do when the market closes for preparation? I go through my trades from the day. I kind of take a step back because after market closes, nothing's really moving. So, I take a step back and I figure out where I could have done better, what I missed, where I could have taken more size where I could have taken less size and just kind of figure out... Like I said on the ALPP chart, this was the best cover, and I missed it because I was looking at other stocks so I had to cover here. but I could have done better at covering here and that would have saved me some profits. So I just go back and I look at what I did and how I could get better.
How much of my profits came from listed stocks? So, I'll just show you guys. So this is what I have on my Excel sheet and this is with not this week or some of the trades last week updated. So this is just how I calculate everything and these aren't up to date like nothing is up to date, it's behind by a couple of weeks and my fees aren't calculated properly. But this is just how I look at how much I make and this is also something I always preach to everybody is track your strategies, okay? Track all your strategies, so if you're buying stocks, pre-market, track, If I buy stocks, pre-market, how do I do? And if you have a 30% win rate trading pre-market and you're not tracking that, how will you know? And you do well the first hour, can you be tracking everything? So for this year, I tracked month by month, strategy by strategy.
So basically... But the question was, how much have I made on NASDAQs versus OTC? So NASDAQs, I made like 300,000 this year on NASDAQs And I really... This was my first year being profitable with NASDAQs, so I'm okay with that. Next year, I have a way better idea of how I want to trade NASDAQs, so I will be making... This is all gonna get more detailed next year, because I know my strategy even more now.
But this is how I start and if you look at like my 2017 Excel sheets and stuff, every single year I got more advanced. So 2017, it was just very basic things and then 2018, a little more complicated, 2019 a little more complicated and then 2020, this is what I have. But just making sure that I'm always getting better every single year and always being more detailed. So Tommy D says, "I'm sick of making 2, 3% of my trades, "how do you find conviction in your long setups "to sit through small pops and sideways priced action, "that these OTC trades have been doing lately?" Well, I would say your problem is you, they have too much size and you're not okay with accepting the loss if it fails or number two I would say that, like I said, you're not tracking your trades, so you don't know, you don't have any conviction. Like I track all my trades, so I know what works for me and why am I gonna sell for 2 or 3% when that's not what happens when these stocks...
I'm not judging stocks based on a one minute, one second timeframe. Like they have to... Like with ALPP today, like this in my opinion, this for the best price, yeah this is the best cover, but this is the best cover in my opinion because this is when the trend changed. This is when the volume got light and the big bid came in and this is when the trend changed. But like this is not where I wanna cover, because it hasn't proven to me yet so I just wait till the stocks prove to me that okay the trend's changing or... So that's why I can sit through deeps and pops because of all those reasons.
The last three years watching the OTC market, what do you see that gives you conviction to take a trade? You say, you understand OTC market well, what makes it comfortable for you to trade? The level two and the time and sales, and the charts and the patterns make way more sense to me compared to NASDAQ stocks, where you have algos and massive manipulation and huge money where it's just more unpredictable and harder for me to trade where OTCs are just way smoother. What advice would you give to someone who is building their account to get RPT, should we be using margin or cash? I choose cash so I could trade every day and get reps. Yeah, i like how the cash account idea where you trade if you have 10 grand, you have 10K to trade with instead of the PDT and just take smaller size and get the reps in. Like I said, all right not like I said, something to kind of think about is like working out, right? So some people go for, okay, I'm just gonna do two to three reps of massive weight and I feel like that is trading under the PDT, where you just rep it out a few times but you're doing massive weight.
Whereas I feel like the cash account is you're doing five sets of 12 reps where you got even more reps every single day. And in my opinion, like that's how I like to work out where I could train longer and I don't want to train harder, I want to train longer. I wanna get more reps and I want to get more experience, I don't want to just go all in on a few trades and go really heavy on those, I'd rather get more reps in if that makes sense. (clears throat) Moonshot congratulating me, thanks man.
How do you get so exact at predicting bottoms and tops like this morning? I don't predict tops and bottoms, I just react, It's just, I don't know where it's gonna bottom, I just sit and wait and wait and wait. And then when I see something potentially, then I get in and I have an idea obviously, of okay this is potential support, this is potential resistance, but I always wait for the level two and the time and sales and the time of day to confirm. Like I have a thesis, like, okay, this is a support or this is a resistance and once it hits that, I see how it reacts.
And also I'm not perfect, like my win percent's only like 60 something like 63, I'm losing a third of my trades. So like I'm wrong all the time and that's okay to be wrong because I just get out quickly and it's okay to take a paper cut because you gain knowledge through that loss, through that small loss like for GAXY, for example today. (keyboard clicking) I started dip buying this right here, this was a panic from three five to sub three two eight so this was a nice panic, I went long at 285 and once it popped up, and there was huge sellers right underneath three.
I just got out because I knew that, okay this is a chart going red for the first time in three days. Ignore this print they just screwed up the chart. But this is a chart going red for the first time in three days and there's big sellers here, so I just got out and I gained knowledge seeing how heavy it was at this area and it was fine because I just was break-even. And then it came down here and then I added somebody, not added not somebody, but rebought because this was increased volume. So I got in at two six five and it bounced a little bit and I sold some at two eight because it was still staying heavy and it was using this low as resistance.
And then it came back down and I thought it was double bottoming here, so I got back in and the two sixes and I wanted to see a pop over the resistance and kind of sell into this 293 area point two six and basically, it failed and I just cut. And then I was like, okay, this thing I need to give more time, it's not working. And then I just wait and then it comes down and it panics here and I missed it, I was eating lunch out, I probably would have bought here, and then just spend out again. So as you can see, like wrong, wrong, wrong, and okay, I'm down a few hundred bucks. And then when this comes down what comes down to here with the big volume right at two and Sykes always talks about this when it takes out a key level but it doesn't go much lower from the key level, then that's usually going to indicate the bounce. Like for example, it took out three here, and it kept going lower, but here it took out two and it just printed a few under here.
And then this was my indicator to go long and I went long there and then I just sold two two, two three lost my shares up here at two four. And since I cut quick, I gained knowledge And like I said, in the room, I was like, okay it feels different this time because instead of just getting met with sellers at every single level, this is the most it's ever grinded up, right? If you just look at a bigger picture, like yes it grinded up a little bit here but it was mainly going sideways like this was bouncing, grinding up and then it came back down and up here. Sold the rest of my shares, just amid this resistance, which turned out to be support and it just kept going way higher than I thought so I mean, I almost bounced 50%.
So I was just gaining knowledge on the way down, just taking small losses. And then once the bottom was in, then I had a nice trade on it and ended up making just under four grand. So that's how like cutting losses really is good, because I just kept a fresh mindset and just being experienced, I know that. Like that's what I mean, like predicting bottoms like, I don't predict bottoms, I just try and then if I'm wrong, I cut and then I'll try again, if I'm wrong, I'll cut again. And then maybe eventually I'll get it and then I'll be able to know okay, this is it. And maybe be a little bit more patient or have a little bit more size, because I've gained so much knowledge from the stock, that makes sense? Red Wagon Rider says, "Main question for you, "in regards to your setup tracking and how you evolved.
"I've studied your past webinars, "and understand how you track. "But how has that data evolved "into rules that you consistently use to capitalize "on our main setups, looking at OTC first red day, "OTC breakout, OTC first green day?" Okay, so this is a good question. So how is my data evolved into rules? So I would say that, okay, I'll take the most size on OTC first red days, because that is my best setup, so that's what deserves the most size.
And then I would say, just knowing, I would say the data is good like the data's good, just for me to know, but I think it's more... I don't know how to explain this correctly, but it's the experience of trading all the setups numerous times. Like Tim Grittani said, he was talking about his BITW short and he was just like, yeah, it was just an OTC first red day that I've done a thousand times.
And doing that trade a thousand times is what gives you the experience. And then I think the data tracking just reinforces, to make sure that you don't have the wrong approach on it. So, it just like reinforces what you think, right? So, it just kind of reinforces everything, but that just gives you the conviction, right? Where you kinda have like a thought, but you have to have the data to confirm it. Okay, I found the perfect analogy. Like I was saying earlier, I don't predict the bottoms, but I have an idea of where the support and resistance is.
So it comes down to the same thing where I have an idea of what strategies worked for me, like I know where the support and resistance is but then I have the data, which is the level two in tape to confirm that, okay, this is correct in what I'm seeing, if that makes sense. When buying a breakout, do you wait for it to breakout convincingly or before the breakout hits? It's all about sizing in for me and gaining experience through the stock once again, where I just like to slowly size in. Like, a lot of times, I'll just take a double before the breakout happens when volume starts coming in. AITX is a good one.
I nailed this one yesterday. So... (exhales) (clears throat) Once again, there's a fake print here, so sorry, but basically I ignored the stock back here and this stock proved to be a good breakout stock where it broke out. Even back here, it broke out one, two, three green days two red days, set back up, and then broke out again, and then gaped up huge.
So now that it's in my price range, I know the stock can gap up and does follow the framework, right? So we're getting gap ups and we're getting spikes, I'm so sorry, the daily charts really messed up so it's hard to tell, but I'll explain to you how I got into this early. The daily breakout was 3.3 up here, or 3.5, I thought it was 3.3.
The daily breakout was up here and I've seen this stock, I traded a little bit this day. And then this day I wanted it to panic big. We're all like rooting for it, like come on, big panic like big panic and it just never had a big panic.
So, that's giving me knowledge that, okay it's not panicking big, so this potentially can grind back and re-break out, which is exactly what it did. So it sets new levels and it grinds back and then coming into the afternoon, it's just setting a very clear support level here underneath the breakout, right at the 3 cent level which is like a whole dollar, but a whole penny per se and I actually started in super early on this one. My first shares I bought here at two eight three, just seeing how it was creating the support going into... This is 1250, so going into the afternoon, we're holding support.
And I was just risking it off two seven five. So I'm just taking a very small filler on this trade just to start watching it, in case it does break that 3 cent level, I think I started in with 170,000 shares here like Literally I was risking like 200 bucks. And this trade then confirm my thesis, like, okay, yeah, we might break out. And then we have this huge increase in volume here. I added a bunch not as much as I could, I should have had more, but since I took the loss on ASTI, if you guys are following me, I took a loss on that yesterday I didn't take as much size. So I did take like a 920,000 shares and then my average was two nine five or something my average is right here.
And then I'm changing risk to two eight so now I'm risking like 1500 bucks. If it fails, I could always get out early too, if it sets a new risk level, I'm gonna cut so I could get out here at three ten you know what I mean? So that's what I mean by just my risk levels are always... Like they could always be influenced by the stocks so I let the stock, just to kind of tell me what to do.
But basically a stock spiked into the breakout level and I just sold like 100,000 shares, and just to lock something in. That's why I always like doing two, it's just selling a little bit into the first move, just so you can lock some in and just know that, it's not hard for you to sell. Like sometimes when you don't lock any in, it becomes this all or nothing trade, where I either want it to go all the way or I'm just gonna let it die on me. So I'm a big advocate of always locking in like If it's a 10th of your position just sell a little bit.
I just feel like it helps with your overall read on the stock. So I just sold some and as you can see getting back to your question, now I'm positioned myself 295, with like 800,000 shares. I dropped the ball here where I should have then added more once it started confirming the breakout but I didn't because I was just I was tired from ASTI and last breakout didn't work.
But as you can see, we're holding big volume like the volume from the morning compared to the afternoon is huge. And then we start up trending and I don't think I sold any here. And then once we started getting into the three nine, the fours, I started scaling out and that basically is how I traded that one in the afternoon. And then I held some overnight, I held like 250,000 shares overnight (clears throat) And I didn't sell at the open and then it came down and I sold down here, when I thought I was gonna go red at two 235. And then once I realized that, okay, like I got shaken out, I'm not gonna cry about it and be like, oh, I got shaken out, I'm trying to get back in right away.
And I failed like 600,000 shares at four four, and then just risking this four three level. And I got back in and then as it spiked I think I sold my first piece here at four seven, scaled out more into five and then sold my last at five two and that was how I played that. And then basically then trade got a little choppy for me, then I rebought some down at four eight, didn't sell anything into this pop and then it failed and then I sold somewhere in here as it was gonna go red. Didn't touch it for the rest of the afternoon, didn't touch it, didn't touch it and then, I bought it once. I saw it come all the way back down to the support level yesterday where it held this three level where I was getting in yesterday. It's been down trending since five and a half cents now we're down at three cents.
So a bounce is coming at some point and I just saw this trend line break here and this is where I bought risking the support level of three ten. So it got in here and then as it came down, I thought about just selling it here because I was getting frustrated with GAXY, but I held on and then it started spiking I sold some three six, three seven, three nine and then I was done with that so that was a nice bounce trade on it. And like that's how I trade these plays I try to take every opportunity it offers me. I don't try to just get in and just...
like I said, it's not an all or nothing for me, It's a how can I trade this stock the best of my abilities, the safest as possible and that's how I traded that one. And I was pretty happy with the trade overall on it I'm not even sure how much I made on it, because each trade is screwing up. So I'll see you tomorrow.
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2021-01-15 13:56
