Today, we're going to be talking about failed dip and rips and how the 945 rule keeps you safe all right. Everyone, i'm lee training with stocks to trade tim bone before we get started, be sure to like share subscribe, ring that bell to be notified as soon as we start drop a new video or that way you know every day when i go live 8. 30 eastern. For pre-market prep all right, so today we're going to talk about non.

You know non-working setups, failed setups, and particularly, why you'll hear me talk about that 945 rule. All the time when we're talking about a low float stock, ripping up big in pre-market with a chat pump. Okay, so there's a lot thrown at you there, and this is something we talk about every day in pre-market prep, i'm gon na give it to you all and i'm gon na explain why i think meds was a great call, even though it's sitting on the low Of the day, probably fades and probably gaps down the next day, okay, so what is meds? This is a former runner. Okay, you can see this stock has a history of spiking, even as recently as you know three weeks ago, this stock gapped up from four to six and went as high as 11 okay three weeks ago.

So that shows you. The stock has the power to run so it's always on our radar. When it's gapping up in pre-market, then what'd they do one of the things you'll hear me say over and over again it just warms my heart: when sketchy penny stock sketchy, low, floaters drop, the 8 30 press release okay, and why? Why do you always see me light up and i'm like woohoo, 8 30 press release they're playing a game there? Okay, there there's a reason. These stocks drop that 830 press release, because it's like that perfect apex.

They know most traders well except hungover short sellers. You know hungover short sellers show up at you, know 9 31 and then try and short the top gainer of the day blow up and then go back to bed and can't figure out why they're still living in mom's basement. But most traders, like the latest you're showing up is 8, am 8 30 to start prepping for the 9 30 open. Personally, i think you should be there earlier um in the steady trade team, i'm in chat every day, 6 7 a.m.

Sometimes earlier, if there's some big runner the night before i'll, be in chat at 4, 00 am getting ready for the day or maybe trading these wild stocks. So anyway, but they know by 8 30, pretty much everybody's at their desk ready to go and they drop that press release bing bing bing. You know you could almost hear the alerts going off on everybody's desk that here's a low float stock with some telemedicine, buzz, wordy press release and then look what happens when when the pr drops i mean, look at that candle, i mean look at this from 450 To 650, that's one five minute candle in five minutes. You know the stock spikes, two bucks a share.

Nobody even had time to read that press release. Okay, that's the great thing about the fomo and that's why they drop it at 8. 30.. Are you telling me this stock spiked, you know 50 in a couple minutes.

Are you trying to tell me anybody read that press release in 90 seconds no way they just see a headline former runner low float stock. So that's people that you know that's something. I don't really recommend i mean, listen, ultimately, it worked. You could be like well tim.

Why would i read the press release? I could have just bought it. Five, six seven. It went to 9.50 in pre yeah, but i don't think you got any good odds there. You know, i think you got ta, wait for this stock to set up some days.

You'll get lucky some days, you'll lose, i mean, don't just buy on a headline. Take a reasonable approach, get prepared, get your orders ready, look for key levels and then look to execute the trade. So when i was in uh the steady trade team, i'm live every morning. 9 a.m.

Eastern and you know i'm. I was caution. Everybody i'm like hey lot going on here: great volume, former runner, press release, markets, gapping up and then the chat room. You know there's a lot of these big chat rooms that move stocks around a lot of sheep follow in so then you know the chat room, buys it nine stock spikes again, but we know a lot of these chat.

Room plays these big chat rooms. These twitter pumps, a lot of them, fail at the open. So that's where the 945 rule comes in is that's a confirmation type idea. I mean listen if you're new - maybe you don't know, but if you've been around, you know what meds is.

This is not a good company. This will fail, listen depending on when you're watching this video, i'm recording july 1st i mean if you're watching this video in august or september. Meds is probably a one dollar stock again, but i mean listen. The opportunity is there.

We know what these are. These aren't investments you're not putting this in your ira you're, not gifting, a thousand shares of meds to your kid, because by the time he's 18 it'll be worth three cents. If it's not d listed, you know we know what these are. These are four-letter stocks that we can trade and we can make some short-term money and we can grow our accounts.

Okay. So that being said, what's great about the 945 rule, is it's a confirmation type idea, you're not playing guessing games? You wait for that week open and look at how weak meds was. I mean this dropped from 950 all the way down to 750, and the great thing is, you know at 9 45, this stock's sitting at the low of the day post market open. Okay right, there, 9 45, look at that lowest point post open if you're buying that stock.

At that point, you're gon na be a bag holder, you're gon na be a loser. Okay, welcome to the 90 if you're buying five red candles in a chat pump in a piece of crap low float stock. Okay, so the point is: if you did not trade this and i know you're like well, if we, if we don't trade, anything tim, how do we make money? How do we get over the pdt? How do we buy a lambo if we're not trading telling you? I feel like i'm the only one that talks about this. Okay, i mean, i know youtube and social media is all about fomo, lambos and yachts, and houses and cigars and whiskey and steaks - and you know jet skis.

But if you can play defense and not get stuck and not get fomo'd into following a chat pump, guess what you're not down a bucket share, two bucks, a share three bucks, a share again meds is terrible. Drop me a comment. What price is meds trading at right now, odds are if you're, watching this a week or two weeks from now, it's probably trading back at three or four bucks. Okay, so if you don't become a bag holder, if you don't take that big loss, something i say all the time, i would rather and write this down.

Okay, i don't know if i've mentioned this on any of these youtube videos. I say it all the time in the steady trade team, but listen. I would so much rather be flat on the day unchanged than down two bucks. A share down three bucks: a share bag holding into the next day, praying for a headline, praying for a squeeze and then i'm down another buck the next day and it's and then it just grinds and it grinds and then eventually you give up.

You sell you, give up because you're sick of being a loser and sick of being a bag holder and then guess what happens the next day. You know the stock always spikes back, because that's what stocks do when they stocks just punish bag holders and somehow i don't know how the universe must talk to these sketchy low float stocks, it's like all the bag holders gave up and then the next day it Spikes, but that's the beauty of the 945 rule. It keeps you out of trouble, you're, not a chat. Sheep you're, not a degenerate, gambler you're, not buying a stock on a headline on a pr you didn't even read, and defense is a position.

Cash is a position and if you can avoid those big losers, i mean listen. Avoiding a big loser is just as good as taking a winner. Sometimes i mean again, i know you're like well, you know, if i can't win, how do i make money? How do i grow my account, but understand i mean listen. I know this is like simple, math and you'd be like yeah, no kidding tim, but i mean if you lose five grand today i mean you got to make five.

You got to make five grand tomorrow or the next day or the next week or the next month, just get back to break even okay, that's the thing with big losses. They will punish you, for i mean you could have a great great month. You know, let's say you got a small account. Let's say you got a 5 000 account.

You turn it into a 10 in a month. Well done man! Well done! You doubled your account. Well then, one trade, you lose five grand because you have fomo, you jump in. You, follow a chat pump, you get bagged and then it turns into a 5 000 loss.

There goes all month, you know it's, it's like taking a time machine and going back in time, and it's like i'm right back to may now, because my entire june that i had an incredible month on you know july 1st. I blew it all away because i had fomo and i jumped in early vice versa. If you would have been on pre-market prep - and i told you 9 45 or later now, you're watching meds fade all day and you don't care, you don't care. You know maybe you're keeping it on watch for a friday squeeze.

I mean it's still up 70 right now, but you don't care how low it goes because you're not in it. So that is the biggest point. I want you to understand when we're talking, chat pumps when we're talking low float, sketchy stocks. Man be very, very, very careful early in the day, particularly at the market open, because it's all fomo bros and it's all losing traders.

It's all losing traders fighting tripping over each other at the market. Open, smart, well thought out. Patient traders wait for midday midday late day and have a much higher probability of success and ultimately, it's a great way to avoid those big losers. Speaking of trading plans, you know avoiding big losses: how to enter and exit check out the steady trade team.

These are things we talk about every single day, click the link below we'd love to work with you.