What's up everyone? Alright, so finishing the morning here up two thousand, four hundred, Thirty Five dollars. Another great day of trading my red shirt. actually, where is it? Seems to be bringing me some good luck. So two really good days in a row.

Up twelve thousand on the week, over twenty thousand on the month, a hundred and twenty seven thousand dollars on the year, and up Four hundred and sixty Two thousand dollars in my account. that I started with five hundred eighty three dollars in January of 2017. So I'm getting close to that half a million dollar mark. I'm excited I Want to break that halfway point because my target on this account is a million dollars.

It's gonna happen. it's just a matter of time. but this is a great week and right now March is looking like it's going to be a pretty solid month, so we'll break down all of today's trades in today's midday market. Recap: What's up, everyone? All right? So we're gonna break down the trades from today.

This is another really solid day of trading. First day back at my home office here after trading the rest of the weekend. Malibu California It's nice to be home. Alas, no.

I missed a like a 15 inch 16 inch snowstorm while I was away and it was nice. I mean the California is beautiful, the weather was great and it was a it was a nice trip, got some good good things accomplished. But now back at the office and finishing up the week here with 2435 dollars and 18 cents. Not bad at all.

I mean she's two really solid days in a row. yesterday. four grand, five grand today 2,400 Can't complain about that at all. This has been a great week.

Twelve thousand dollars of profit on the week, Twenty thousand dollars profit on the month. One hundred Twenty Seven thousand on the year. Four hundred Sixty-two thousand, Seven hundred Seventy Seven dollars in my account That I started fifteen months ago with $583 $583 literally all verified by broker statements. So it's been a you know it's been a wild year and this this 2018 so far has been pretty crazy as well.

Amazing month of January hundred seventeen thousand dollars of profit. February gave back some gains, finished down ten thousand. Now here in March trying to get things kind of, you know, put back together and you know, making my way back up to all-time highs which is really really nice. So this week I would say the moment' momentum has been interesting because it's been really driven by these higher priced stocks.

stocks like Z Zan Zan stocks like DXR which was really wild yesterday and a little bit today. and then of course Arkady a I mean a crazy move all the way up to a high of 56. no $66 I mean this one's gonna go in the you know in the course book for the chapter we have on parabolic stocks. It's another one that just you know went through the roof and that's brought some momentum into the market.

Stocks like these? Definitely, you know, scare and put the fear into short sellers and make them a little bit more cautious. They definitely do get squeezed out and for long biased traders like myself. It's what we love to see because even if we don't fully capitalize on that particular stock, that is a sign of strength in the entire market and we often see sympathy. Momentum: We see traders who start to want to amp up their sheer size.

I mean I'm doing the same thing: I'm taking bigger share size the last two days because things are starting to work out. So you think about I'm just one person. You multiply that by a hundred thousand traders all thinking the same way and now you have more volume in the market. Now the pull backs get bought up with even more shares of volume and the breakouts are bigger and everything becomes you know, more exciting and the winners inevitably do become bigger.

And that will continue until we start to see where those places that we're a buyer start to get rejected and the setups that are working really well right now stop working. And then that's when the long biased traders start to recognize that the you know the FOMO and the buying high or buying high and selling higher isn't working and we start to get a little more careful. short sellers, they see the weakness and they jump on to the short side and then we get that correction. In that correction lasts usually until we have a stock like our kDa that goes from $10 to $66 and all of a sudden the emotions are back right: the the fear, the fear of missing this huge winner and the greed wanting to have big profits.

And it starts the next round of momentum. So you know we're the train has left the station Now we've got three really big ones this week. Arkady ADX are Z's an Z's and today I took a trade on and it didn't really work out very well I did step up to the plate was slightly bigger size 2,000 shares long at 21 20 dollars and 71 cents and 20 dollars and 80 cents I tried to sell half at 2144. That would have been awesome for a thousand bucks, but I didn't get filled I put out another order to sell at 2112 I filled 600 shares I sold more, break even a little bit more 2170 a little more at 20 69 trying to sell in the ass trying to sell in the Ask.

finally hitting the bid at Nineteen Forty four. This charts a little slow to load for some reason, but it was. It did a false breakout which we knew was a possibility over 21. although we also knew there was a possibility this thing would go straight to $25 so it was worth jumping in there.

and with two thousand shares I actually only lost about 8 cents 6 cents per share which is not bad at all. I mean this is not I guess is 9 cents per share but that's that's. not bad at all considering the price range of this stock. So I managed my risk pretty well on that.

You know one of the things I was thinking about last night as I was driving home from the airport it like 2:00 in the morning I was thinking about you know my trading and how far I've come with it and I was thinking about my profit loss ratios and about the challenge of stocks like yesterday. DX are where you want to see this big move. You know you want to see the stock. Really, you know, squeeze and open up and at the same time you feel like you can't afford to just hold the whole position and let it ride.

So you know what I often do and we'll look at a AMT X as an example. I'm up 1,800 bucks on it which is good. You know that's a good trade. My first entry was down here.

$2 59 was 7,500 shares. so if I held the whole thing and sold it up here, that would have been $7,500 of profit. and obviously that's not. You know that's not how I traded it I Got in at 57 way way way back here on this first little pullback right here 57.

it pops up to a high of 70 and then it drops back down to 56. and of course you know I stopped out I took my profit and I was out. we went to 47. Now if I had held from my entry right here at basically I think my average was actually 61 I got in at 58 and 64.

so 65. So I had 10,000 shares at a 62 average. basically so 10,000 shares on the ask here I was up 900 bucks. I was hoping it would open up a little bit more, but it didn't.

It only tapped, you know, a high of 70 and there was a 40,000 share seller sitting on the ask. So I was like I got a bailout and I got out 69 and I sold the rest on the bid. Now if I had held that whole position, I would have gone from being up nine hundred to down a thousand. right on this pullback and this of course could have dropped further.

This could have gone all the way back down to 20 and I would have been down $3,000 So I took my profit I did the right thing. it then squeezes up and of course I get back in. but when I got back in I was back in at KBS. Eff was a good trade.

it got back in at 98 and 99 and two dollars seventy five hundred shares. So here's the problem there. I'm in at two dollars right here. it pops up to a high of 218 and I start taking profits, selling it, trying to sell it to seventeen, not getting filled, selling at 205 sold the rest it to.

now. if I had held that whole position 7,500 shares it went down to 192. All right. So I went from being up 1500 bucks to down 750 right? So no, that's why I sold half in here and then stopped out the rest breakeven and then I get back in.

So my next entry was long at 40. All right. So for a break anticipating the break over the half dollar, we hit a high of 43 and then we pull back and so no, we hit a high. Let's see: 46 I sold it 46 and 48 and then I sold the rest It you know down here.

So what I'm saying is that I have pretty much a 1 to 1 profit loss ratio. My winners and losers over the course of thousands of trades are about the same. And that's because by being a breakout trader, we are buying stocks very close to the highs and so it's not very common that we're able to get a 3 or 4 to 1 profit loss ratio. Mike gets better profit loss ratios than I do because of his strategy of buying support levels and shorting resistance levels.

That's a very different strategy. when you're buying breakouts, you're almost always going to have tighter profit loss ratios. That's okay, you just have to make sure that you keep your stops really tight because if you are selling, you know I Had let's see five or six trades on a MTX The average winner was only about six cents per trade. so obviously it adds up and there's you know the proof right there.

Eighteen hundred bucks is great, but if I had held one of those trades down 20 cents, it would have wiped out a lot of profit. So you have to do two things. Number one, you have to keep your losses really tight, so you've got to make sure that you're getting in. At places where you're not risking too much, you don't want to really risk more than ten cents on these.

That's number one. And then number two, you have to have a pretty high level of accuracy because if you have a one to one profit loss ratio, 50% is breakeven not including commissions. So you need to be at like 55 60% to make money. I'm at like 68 70 % and I'm pretty profitable.

And that's kind of where you want to strive for 65, you know, 60 65 percent success. and then once you're at that point to be more profitable, you just take bigger share size. you take more. You know, larger positions.

but I want you guys just to kind of have that in your mind that you're either going to be a breakout Raider or and you could be both. But there's two separate strategies. One is being a breakout trader and the other is being a I would almost call like a support and resistance trader where you buy support and you short resistance. Now in that case, like with Arkady a remember yesterday or the day before I shorted resistance I Shorted this up here at $33 and that actually had a better profit loss ratio I Made two dollars per share and my stop was pretty tight I Knew that I wouldn't let it go very far against me, so the profit loss ratio on that was better.

My problem is that for me personally, I'm not good at shorting resistance on small caps because number one, a lot of small caps. you don't even have shares available to borrow I can't borrow shares of a MTX I Actually can't borrow shares of any of these four stocks on my level two window right now, so shorting them isn't really an option and buying the pullback on support that can work. But a lot of times when small caps start to show weakness, they just get hammered down and traders just get afraid to buy them and so they really don't always work that well like look at: DX are any entry on support here? I Mean you know it's curling up now it's finally breaking over the V whap. but I don't know if it don't know, you know it's not.

With a lot of confidence, it's kind of choppy. it's up. Let's see, this candle was a high of 50 and 68 and at low 1492. so it's been bouncing in this range here.

You know? now it's breaking over view app. Maybe looking a little bit better, but you know the support entry is a little bit more difficult on small caps. when you trade the the higher price stocks like I know Mike was trading Tiffany's today. he's shorting off resistance levels so it comes into resistance.

He's shorting it to ride it back down. Adobe He's doing the same thing. He's waiting for it to squeeze up to resistance levels up here and then short it coming back down and that's fine. It's a strategy that works.

It just takes a little bit of a different mentality and a lot of people. I Found a lot of our students either connect with being a breakout trader which is kind of like the the high adrenaline going in for with five 10,000 shares for 10 15 cent breakouts, you're buying it near the highs. You want to see it squeeze higher. It squeezes higher, you're caught in a circuit breaker.

halt, it resumes and next thing you know you're up. You know, fifteen thousand dollars. So like Kay BSF this was a action I mean this is a red to green move right here which I didn't buy mostly because I didn't trust it I didn't think it would work. A red to green move is probably the only buying off support that I would do for a small cap personally.

So red to green move. but then right here this is a breakout setup because it's a pull back after the fresh break and then boom from 7:24 this thing squeezed all the way up to a high of 7 of 874. So I mean it made a really big move there, which is certainly enough for a you know, quick $10,000 winner. So that's kind of a high adrenaline, exciting fast moving stock and then the larger caps.

Usually when you're shorting resistance levels if you say okay, well you know I'm watching, you know. Let's just say for example, you know you're kind of watching maybe around these these levels 28 29 maybe a little bit around 27 for possible shorts. So with this type of thing you you have these these lines mapped out, you're like these are the resistance points and I want to short maybe at these levels and my target is that if it fails, we're gonna go back down towards I mean on the daily chart, you've got room for gap fill all the way back down to $21 So let's say you're like okay, I'm gonna take a hundred shares of this at 27 and then if it goes up 28 I'll add another hundred shares. and if it goes up to 29, I'll add another hundred shares which will give me 300 shares with an average cost.

You know, right around this 28 dollar level and then you know that's when you start to work your way into it, adding at these resistance points and then here you finally get that rejection and it works. So these trades often are longer holds you're holding for you know, 20-30 minutes, half-hour maybe multiple hours and you're working around core positions. You sort of take starters so it it slows things down and some traders prefer to have things a little bit. you know, just move a little bit slower for me for whatever reason I have just always liked to go in big, get a winner, and then get out and be done even though it's riskier in the sense that I'm taking big size and if it goes the wrong way, I could potentially lose thousands of dollars.

It feels less risky to me because I'm in at a breakout spot and it's kind of like it either is gonna work right away or it's not and so if it doesn't I'm right out. But in the case of this type of trade, you might be holding it for like 20 minutes and you're like I don't know, is it gonna work, is it not gonna work and I kind of want to know right away I don't like to wait I just it makes me feel uncomfortable. it makes me feel nervous. so I'd rather just get in and have it work right away or not work right away and then I'm back out and but you know that's just kind of the way.

I Trade You could be a breakout trader and and try to trade, you know, a slightly you know different version of it. You don't? You don't necessarily have to be really, really fast ad ap this one yesterday. You could have taken some trade so you could have held this for a little bit longer You could. You could slow it down and trade off the five-minute chart and maybe off the 15-minute Charlie, you totally could I find that what I get frustrated with is taking a trade like this on the five-minute chart.

and um Arcadia is actually a good example. Died yesterday I'll go back and look at that trade. take a trade on the five-minute chart. No, sorry I'm not Arkady a Dxr was a good example Yesterday you take a trade on the 5-minute chart which I did right here and then this.

so my entry was right here. the first candle making new high it pops up to 10 18. It drops down to 10 72 or 9 71 and ends up stopping me out and then running. You know again it's frustrating because the when you step back and look at it you're like oh, ended up working.

but inside this this period of time it squeezed up a dollar and a half and dropped a dollar and a half even with only two hundred shares. Do you really want to go from being up 300 bucks to being down 100? To me, that's not logical. If you're up 300 bucks, you should take the profit and get out. But that means you're always buying breakouts cuz then let's say it does drop.

but then it goes higher. So now you're getting in higher and where's the logical spot? Again, it's at the Breakout. So now you're buying the breakout here at 1168 which is what? I Did you know getting in here adding at 12:30 But of course if you're in at 12:30 and you're up and it's up at 1280, you're up 50 cents. It's hitting high a day.

The right thing to do is to take profit and again, you know you keep doing that and you get into this rate. This kind of pattern of being a breakout trader which is fine. You can be profitable with that. it's just it's important for you to kind of have that moment of asking yourself what type of trader you are.

Do I want to be a breakout trader? Do I want to go in for the fast trades, the quick entries, the quick exits. Even if you're doing it on the 5-minute chart, you know it's still. it's still breakout trading. Or do you want to be a supportive resistance traders trader? You know.

So that's kind of the question to ask yourself and you know. Hopefully you'll find you know based on your risk tolerance and your comfort level using hotkeys. And you know, taking these kind of you know trades, you get a sense of what is a good fit for you. There's thousands of different ways to be a profitable trader.

What works for me works for me in a large part because it's a good fit for my personality. So what works for Mike is a good fit for his personality. What works for you will be. You know, a combination of a couple different things.

It takes time to find that perfect combination and to really own your strategy. Alright, so anyway, it's just some food for thought there and again. Finishing up here a great week. $2,400 on the day, 12,000 on the week, 20,000 on the month, 127 thousand on the year 400 Sixty-two thousand dollars in my account that I started fifteen months ago.

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