What's up everyone? All right? So here we are finished in the week with another green day. So great week overall. One red day. but you know, four green days? That's good.

And that's really the the goal that I set for all of our students. I Expect that each week you will have one day where you hit your max loss. So that means your weekly profit target is your daily goal times. Three, you make your daily goal four days.

The fifth day you've got your max loss That cancels out one of the days of your daily goal, your backs loss being the same as your daily goal. So my max lost this week. Biggest red day was $1400 That took away one green day. So now I've got the weekly goal daily goal times three.

So a good good week. You know, still choppy market. a little bit of a grind, but hey, finishing the week on a green day is always good. Going to the weekend feeling great.

Alright so I'll break down all the trades. you guys have questions, comments, leave them below I'll be going through and answering them over the weekend. All right. So I Hope you guys have a great weekend.

Relax Those of you in the classes study up. Monday We'll be here before you know it all right. See you guys on! Monday Alright everyone, so we're gonna break down the trades here from this morning. another green day.

Really happy to finish the week with a green day. $640 Not the biggest green day of the month or of the year, but as of today it puts me up three hundred sixty, four thousand, four hundred, twenty two dollars, and nine cents on the year, which is terrific. So you know I'm in really good shape on the year and I think at this point it's kind of just keeping up pace and grinding on smaller numbers is fine, knowing that we will almost definitely have good opportunities whatever later in later in the year. Typically the times that we see the most momentum is November December and January that's usually when I make the most.

So you know I'm kind of right now. Just like as long as I can keep on pace and not have any really really bad months, then I'll be in good shape. So you know August has not been the best month of the year so far, but I'm kind of pulling it back together which is important and you know I'm thinking that it's gonna things will start picking up a little bit more as we get closer to September August is often slow. This isn't surprising or really particularly unusual.

so you can see here six hundred forty bucks. But I do have the alert on my account, let me just turn on my drawing tool. So right here. all trading set to allowed.

But this was not the case at one point this morning. At one point this morning I was down more than twenty-five hundred dollars on a position. Unrealized. And then it came back up.

So we'll break that down. a little bit of a close call and so that makes me even happier to finish the day in the green. Okay, so the two stocks I trade today TI K and FF HL So we'll start by looking at the Gap scanner this morning today. I'm just like every other day starts with going over the Gap scanner.

So those of you who are brand new to the classes who maybe joined during our workshop yesterday, what I showed you was this Gap scanner we go over every single day. So this morning at 9:15 this was the scanner. These are the two stocks at the top of the scan Ize A and TI K. I've got $800 profit on TI K.

so that was right off the scans Ize A and this one I was not very interested in because I've traded it before and I've lost money on it. It's one of the stocks I've really just not done well on. So I was like, you know what? I don't really like this if it does break over pre market highs. okay maybe I'll take a stab, but I'm not gonna I'm not gonna push my luck on it if it's not looking good and it's open to just sold off.

So no trades on that, you know, just no opportunity. Alright, so next one tik. This one had a pre market high of 490 but it sold off a little bit and when I pulled up the level two I realized it trades in five cent increments. So you can see every quote is five cent.

So for 10 for 15 for 24, 25 for 30. The problem with these stocks? So this is what you have to realize What what they did was they created a five-cent tech pilot program and put about a thousand stocks into this program. and so all of those stocks trade with five cent increments. So instead of having a hundred increments between every dollar, right? So from four from $5 to $6 typically has 100 increments.

There's 100 pennies, right? So you know 401, 402, 403, 404, 405, etc. I don't have to count all the way to 100. So we've got a hundred increments between every dollar now. when the market switched from trading in fractions to trading in decimals that tight, that made the spreads down to one penny, right? So in 2000, 1999, 1998 before the market switch to decimalisation, the tightest the spread would be was 1/16 So 1/16 is six and a quarter cents.

So basically so you've got, you know. So six point, two, five cent, six, and course cents. So what that meant was that you were always trading with a six and a quarter cent spread. That was the tightest spread you can ever have.

Which for us is like crazy because we're used to trading stocks that have a 1 cent spread. So what that meant was that market makers, the big institutional banks and and funds and all that stuff, they were not able to make as much money. They make money. They make the market.

which means they sit on both the bid and the ask. So here you'll see edge. X is on the bid at 410 and they're on the ask at 4:15 so they're always on both sides. They're incentivized to be on both sides because they sell shares across the spread so they profit from the spread.

Okay, so for that, I'm a six point two five cent spread meant they made a lot of money, even on small cap stocks. With decimalisation, they started making less money and so as a result there was. well. in the early 2000s there was a decrease in the number of IPOs of small cap stocks and so as part of the I think it was the JOBS Act there was a request by Congress for the SEC to try testing a larger spread to see if that would incentivize market makers and institutional banks to take on more small cap IPOs because they would be making more money on the spread.

So this finally started in 2016. It took like 14 years for it to happen. Headstart in 2016 was a two-year pilot program and so what it did was instead of having 100 tics between every dollar, we went down to having just 20 ticks between every dollar. So 20 ticks and the stock could go up a full dollar.

But because every order now had to be in these like trenches of every 5 cents, the bids and asks became much larger, right? You had to take all the orders that were typically across 100 cents and pushed them into just 20 blocks into 20 increments. And so what you see is that these stocks move very slowly. They have lots of orders in every single tick and so generally we haven't liked them for day trading because the volatility has been so much lower now. I Don't think the goal of the pilot program was to reduce volatility.

The goal as requested from Congress was to see if it would increase investment in small cap investment in small cap IPOs which would be good for I Guess American Companies and all of the early reports have stated that this has not sparked interest to have more. IPOs. So I don't think that it's been effective from that perspective, so most likely it'll get phased out. but in any case, and that'll probably in this coming fall 2018.

But in any case, Tik is a five cent tick stock and so when I pull it up here I Can see the five cent a little sign here on light speed that this trades in five cent increments. Now the problem with this stock is that if you put an order at 13 and press buy, it's going to get rejected. The order The price must be Nicoll increments. It is such a pain and so what that means is that all of my hotkeys to buy and sell they get.

they'll get rejected. So because of that, my hotkeys don't work. And that means to trade these I have to be manually typing in all of my orders and you know it's when you're under the gun. you've got to quickly type in.

It's so easy to have a typo and then you've just screwed up and so on. My first trade on this one when I jumped in I got in this at where was a let's see tik. My first trade on this was getting in at Ba Yeah at five right here I got it. It popped to a high of 5:20 it pulled back and then I got in like I don't know it's like right around here and it popped up to a high of five fifteen and pulled back and I tried to take profit at 5 15 and I was too slow and then it pops up to five twenty I tried to take profit again and I sold half at like five fifteen and then I ended up stopping out of the rest as it came back down and they only made like I was up $450 and then by the time I finally sold the rest of my position I was only up like 200 bucks and so you know it was just like frustrating because you feel like you can't Yeah, I don't know.

I'm just not equipped to really trade these ones. so anyways, didn't really do well on that I got back in it right here. As it started to pop up, you can see how it did this false breakout. I got in at five, it pops up to five ten sideways, pops up here to five ten again and then drops so on this one.

I lost 300 bucks and so I went down 200 on the name or something like that. It then curls back up here and I said, you know what I'm getting back in because this does look good and that at this point now had a nice kind of five-minute pullback and so I was like, you know what? I'm getting back in at five dollars I Really think this looks good? This is flagging. This is a flag pattern. Got back in six thousand shares.

At five dollars, it pops up to a high of 540 right here, forty cents and then right here drops all the way back down to four five. So I ended up getting out with $900 profit and so or plus or minus. So now I'm up a hundred dollars on that stock so that's good. I'm glad I'm green but really didn't feel like I maximized on it and I just generally don't like trading these five cent tick stocks I Just find them frustrating.

so whatever and mode. For the most part, the five cent tick stocks don't make big moves, but this one did have a catalyst and did that them making a pretty good move. So alright, so that was TI k FF HL this one really disappointing on this one. It let's see where was this and go back.

So on this one, it popped up here from a low of two dollars and seventy six cents and then it surges up to 340 so as its squeezing up. I see it not on my Gap scanner but on my hide, a momentum scanner. So let me scroll down here so there's tik and then here we go. It's hitting once twice.

three times when I see that I get excited and then against four five, six times it's hitting the scanner. So I jump in at 3:11 I jump in at 3:11 it pops up to a high of 340 and I try to take some profit. I ended up adding at three. Let's say I got in at 3:13 and 320.

So I had actually a like a 315 average or 316 average and it pops up to 340 and then on the next candle it drops all the way to two dollars and sixty five cents. So I was down 2500 bucks. And this is the type of stuff that is really hard as a trader. When you're an aggressive trader like me.

There are times that you're gonna jump in to these stocks and you're because you're gonna know that there's the potential when a stock is moving this quickly that it could squeeze out, get halted, and maybe continue. At this point, the relative volume in the last five minutes was extremely high to what was normal and it was up 25% on the day. So right from that perspective, even though the total volume was low, what it was doing was it was showing me I had the potential to move because it had already moved this much. Now the risk is that yes, they can go back down.

Obviously, so we've got risk to reward in this sort of. This is kind of rare. We don't see that type of drop where it actually goes to like low of day and then flashes back up. but in this case it happened.

So in this case I was in, it drops down. but I don't like to panic out I don't like to sell as they drop like that I like to give it a second and then in this case give it a chance to bounce back up. it bounces back up to 3/16 and so just like that I go back to break-even right? I was down $2,500 and then I'm breakeven and so I got out for a small loss and that to me was the right thing to do just to basically unwind the position in a calm and composed way. I think on this one.

In hindsight, sure, you know you could say well I should have waited for a one-minute micro pullback or something like that and maybe that's the right thing to do I I guess I get a little FOMO when I see the stocks hitting the scanners and just taking off and I saw it pull back just kind of from a second here at 310 and then continued higher. So I was like alright, this looks good so I get in it right here as it's surging up thinking next target 350 and kind of thinking you know my stop is around 305 so having that kind of flush there where it's suddenly in in 10 seconds drops from 320 to 265. We just don't see that type of thing happen very often, so you know I never like to see that I was able to unload right here as it started to pop back up, but you know it's I Guess just kind of the luck of the draw when you're trading stocks of this nature. You know if you get on the wrong side or for whatever reason it starts to drop, it can be pretty bad.

so fortunately was able to mitigate the loss on that. and I think the you know I still feel good about the rule of thumb of waiting for the first one minute pullback. However, one minute pullbacks can fail As well as you see here, this was a 1-minute micro pullback that failed. So you know it's just to say that there is no such thing as 100% accuracy in any strategy.

it just there. There is no such thing as that. you might say. Well, that was a bad trade, doesn't look good and you know in hindsight, yeah, I probably should have waited.

and if I'd waited, I wouldn't have ended up taking the trade. But if I wait on all of the stocks I trade then I would also miss a lot of great opportunities, especially in strong markets when US Typically when a stock hits the scanner this many times in a row, it attracts a lot of traders because thousands of thousands of people are using these scanners so they're seeing ok, the stock is squeezing up. I'm gonna jump in, try to ride the momentum in this case of just, we didn't have a lot of momentum in the market today in general, so that was a little bit disappointing. Narrowly avoided a big loss.

Got the warning here when I was down more than 2,500 at that point I would not have been allowed to take another trade, but as soon as the unrealised popped back up, I was able to to you know to keep trading because I was down only like 160 bucks or whatever it was. So anyway, it's kind of a little bit of a choppy day, a little bit of a close call, so that makes me even more grateful to finish the day in the green $640 and you know, kind of at this point, a clean slate I'm It's now taken me about two weeks to make back the twelve thousand I lost in the first three days of the month. Disappointing as that was that sometimes happens. And so I've let's see this week I'm up.

I was up 3600 before yesterday. so I'm up about 4200 on the week. So in the last two weeks, I've made $12,500 So I'm basically back to break even on the month plus or minus a couple hundred dollars. You know, I'd have to get into light speed and see exactly where I'm at, but you know, whatever that's close to break-even So now I've got the next two weeks of the month to try to rebuild.

You know, try to turn this into a month where I make a little bit of profit. So if I can make 5,000 next week 5,000 the week after I'd be up 10,000 on the month. Is that going to be the best month of the year? No, it's actually gonna be my second worst month of the year, but typically August is not my strongest month anyways. so if I can just finish green, that would be great.

My worst month of the year right now is 10,000 in the red in February And then my second worst month is only 36,000 dollars of profit in June. Think about that. That's kind of crazy that my second worst month of the year is 36,000 dollars of profit. my third worst month is 42,000 my fourth worst month is 49,000 my fifth worst month is 54,000 6 worst is 74,000 and my my first worst, which is also my best is 117 thousand a profit.

So anyways, that's kind of where we're at right now and 600, Well, 600,000 was was the goal for the year and I'm you know 300. Well, I'm three hundred thousand dollars off that well I guess I'm 240 thousand off that level. but I'm always off that level. so I don't know if that's gonna happen, but at the same time, if I end up having a great October great November great December you never know I I mean I gig it could happen.

So of course if I have three more months like this, then I'm gonna only finish the year with another thirty thousand dollars of profit on top of what I have. So it's just you know there. I Just will be hopeful that we have a really strong market and if we have it, I'll be aggressive and if we don't then I'll just have to stay discipline. something that a student said earlier David He said to one of the students, if you're trading in the Sim and you go to start trading with real money and you you lose for the first couple trades, don't get been I shaped, just remind yourself you're the same trader who made X amount in the simulator and that was really, really good that he gave.

I myself have found that you know there are certainly times where I've been in the red and I've had some bad bad weeks of trading or even a bad month of trading. and I have to remind myself I'm still the guy who made you know X amount last month or the month before I'm still that same person I just need to tighten up focus and be disciplined. So it sounds like that advice came from Arsh and it might have actually come from me. So so.

but that in any case, um, it's good advice wherever it came from and I just want you guys to, you know, stay focused on that. kind of you. Know that end goal we're doing this is a marathon is not sprint. We will have bumps in the road, you'll have setbacks, and you'll learn to get back up on that horse.

That's part of trading. So I got a meeting here at 11:00 that I just realized I'm late on. So anyways I'm gonna switch gears and jump into that. but I hope you guys have a great rest of the day Warrior Pro students.

We've got class in about 45 minutes right at noon time, so stay tuned for class. At noon it'll probably be about three four hour class today. I'm really excited about it. We're gonna be covering the gap and go strategy.

All right. So that's coming up soon and I'll see the rest of you guys first thing on Monday morning. Alright everyone, have a great weekend! I'll see you on Monday if you're still watching, you must have really enjoyed that video. So why not subscribe and get email alerts any time? I upload new content.

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