Alright guys, so time for a midday market recap. We're gonna go over the trades from today. Overall: I'm fairly disappointed in my trading today I just I felt like I wasn't having very good accuracy I wasn't seeing good follow-through and as a result, today is not a very impressive day on the P&L So I'm gonna go over where I stand here at the end of the day. Today is day 14 of the small Account Challenge and I'm finishing up three hundred and fourteen dollars after Commission's Commission's were about a hundred and twenty hundred and thirty dollars today.

So $444 before commissions 314 after I traded three I traded for stocks which is more than usual I was green on three out of the four names. I'll show you here for you those of you watching on Facebook that's my P&L for today. This is over in my live platform that was on stock Twits. so ET RM eighty dollars profit G lbs $283 sgy 280 and ZX a $199 loss.

Now I'm also trading in my regular account where I'm trading a slightly different strategy I'm being more aggressive I'm trading with larger positions and I'm generally holding those positions longer looking for bigger moves. So as a result, today because we didn't get clean follow through on any of these trades, I ended up taking losses on two of the names that I made money on ensure trader because insured trader took profits when I was up 20 cents or whatever it was whereas an speed trader I was being more aggressive and in fact, in speed Trader on one of my trades on G lbs, I was holding 8500 shares up about 30 cents and you know $2,500 and I didn't sell it because I thought if this broke over the next resistance point, it could move up to $13 and that could potentially be a $5,000 win or maybe more so this, you know. I've sort of been trading two different strategies in my small account. I'm being much more concern I Get in I get out I take the profit I move on to the next one I don't overstay my welcome and that's increased my consistency for sure.

but I'm not having a lot of homerun wins I'm having a lot of small winners. Having said that, I have had a couple of bigger wins I had a I think an eighteen hundred dollar winner last week. What was it? What day was it on? Tuesday I made $2,300 in a shirt trader which is my best day so far, but then the rest of the week was kind of slow. You know, 600 on Wednesday 47 on Thursday and then a thousand on Friday So you know this this week starting off with 300, $14 or whatever.

Obviously not the most impressive day, but green is good and I'm happy with that. And you know between the two accounts, I'm netting minus 900 today. but you know, a small step back in the Speed Trader account waiting for that next potential $5,000 winner. You know, the next really big winner.

That'll give me a big step forward and that's kind of the strategy and approach I'm taking there. You know this isn't something I would have done last year at this time. Last year at this time I was in the middle of a 58 day or 55 day hot streak where I was Green for 55 or 58 consecutive green days and during that time I became so determined to have the longest hot streak I'd ever had that I stopped being overly aggressive because I'd rather closed the day Green even if it was only up by a hundred bucks. and this year I am just kind of like I really don't care that I'm down a thousand bucks in Speed Trader today I I genuinely don't care I didn't do anything wrong I followed my rules.

The market just wasn't on my side. So I've gotten to a place where I've really conditioned myself to have no issue with experiencing loss. at least you know, relatively small losses. It's just not a big deal, you know.

and I think that's a big step forward. It's better to trade. you're the best quality setups rather than try to trade staring at the piano. Having said that, insurer trader I am still fairly focused on the P&L because of the fact that the account was so small.

and I don't have the cushion you know to be overly aggressive, but tomorrow I'll open close to nine thousand dollars in total equity. My goal by the end of the week I mean is ten thousand. so I shouldn't have a problem getting there I Guess twelve thousand five hundred would would kind of be my ultimate goal for the end of the week to get halfway to twenty five thousand. to get there to get halfway by the end of January then positions me really well to get to twenty five thousand dollars by February by the end of February And that's that's my goal right now.

so you know the markets will need to be on my side. and today's a day where they really weren't. You know, like even on gee Lbs. Even though this was a good trade and sure, Trader I was restricted to only taking a thousand shares so I couldn't be aggressive.

you know I had big size and my regular count. but in short, Trader I just couldn't be as aggressive. So let's go over these trades. Kind of break it down.

I Also want to remind you guys that today we are expiring our chat 300 coupon code so this is the last day to join the chat room for $49 a month for the entire year. Now those of you who are already members of the Chatroom, you can if you're a quarterly or monthly member. When you upgrade to the annual, it's just gonna add on your current subscription to the end of the the new annual subscription so it'll do that automatically. Alright, so let's take a look at the gaps Gans for today and the watchlist as I saw it pre market so we move these out of the way.

All right. So here's our watchlist time frame: I'm gonna go to historical date and just set this for 9:15 A.m. So this is the gap. scan as I saw it at 9:15 and as I look through this I saw em R and s the very top and I thought you know what, it's a cheap one.

It's dollar Forty-five It already has almost a million shares of volume. It's going to be crowded, the market opened, and it ended up being fairly clean. I mean a fairly clean move here. From a dollar forty up to you know, a dollar.

first a dollar fifty sixty A and then a pullback and then move up to a dollar seventy eight dollar seven. My issue with these price ranges is that when these stocks move, when you get an apex point like the first five minute candle to make a new high, they often break out. but instead of breaking out and going, you know, 40, 50, 60 cents the way a three four five dollar stock might the breakout proportionally because it's cheaper, is smaller and often is only 20 cents. So if the total breakout from the entry to the top is 20 cents, you know.

Best-case scenario, you capture half of it. Or maybe so it just ends up being. the profit potential is a lot smaller. In order to make good money, you really need to take really big positions.

So you know, the issue here with M RNs is that for traders, ensure trader for instance, you don't have margin on these stocks. number one, they're not marginal under $3 and number two, Even if they were, you've got to take such large position sizes that you wouldn't be able to really overcome the ECM fees because you get charged those fees on every share you trade. So if you buy an Akai stock and you need buy, you know 15 or 20 thousand shares, you're paying a lot in fees. Alright, so Mr NS not interested in that ET RM this one you know I was interested in.

You can see the consolidation here pre market I did take a trade on it. The problem with this one is that it's can. it was continuation and you know I wasn't confident that it was going to be really a very clean trade because it didn't have a fresh catalyst. I Ended up getting in this right at 10:23 for the move back.

Basically what happened at 10:23 is the stock popped up to the nine moving average on the five-minute chart and it broke over the 20 moving average on the 1-minute chart. So I'll show you guys what that looks like. So we broke over this moving average right here at this point I said okay we're breaking over that level if we pull back and hold it I'll get in and so I got in right there for that candle and we popped up to you know from my entry at 40 up to a high of 50 and then we pulled back to 46. Let's see pretty sure that was my entry.

yeah it was, It was right, it was right in there and you know so this is one that you know we got to move on it. but it just it wasn't sustained and it couldn't break over that half-dollar So I ended up only being $80 with a thousand shares and sure, trader eight cents because I didn't have margin I couldn't take a larger position size on it and then in my let's see in my big account it took five thousand shares and I lost eleven cents. So 567 dollar loss on the ATR M it took bigger size I was looking for a bigger move didn't take the eight cents profit when I had it I ended up taking the loss so I was eat erm. next one down the gap scan and you know the issue with ETR m The reason I was a little nervous about it.

Number one was because it didn't have fresh news. Number two it was gonna be crowded and it's a it's a follow through a day. Follow through days are only really good when they break the previous day's high and the previous day's high was 1017 the market opened. We hit 10 10 and then sold off hard.

I Thought getting in on this kind of reversal might make sense, but I was concerned because I knew that this wouldn't hit anyone's high a day scanners until I got back up above high a day which would be above, you know, 1007 or whatever. that was 10 10. so not a very clean trade on that kind of unnecessary risk. Bio L vio el 57 million share flow and another cheap one.

so no trades on that Ji lbs. You know if we look at the daily chart the last one, two three four and now today the fifth candle in a row, that's a doji. It shows the indecision. We dropped down, we spike up.

we drop down, we spike up. it's all over the place. It's choppy. The market opened and it dropped from 1140 all the way down to 921.

We sold off two points and then we kind of reclaimed the nine moving average the same as what ET RM started to do. except when we reclaimed that level here, we really opened up. and this was sort of interesting because I was watching this period right in here for an entry. but what I was looking for was a five-minute entry.

I kept saying Ross you need to wait for a clean five in the setup So we were watching it here at ten sixty and when it broke ten sixty and went up to eleven thirty five right here. that was in the context of being just after this red candle. so it wasn't a CLE it was this green candle and I was like this really isn't a clean pullback, it's not. It's not a good setup and I need to wait for good setups because those are the ones I can be the most aggressive on.

So then it pops up and it pulls back again and again. It bounces right off the one-minute moving average here and pops from here all the way up through twelve again. I didn't trade that because number one I can only take a thousand shares in my shirt trader account. which means I've got to be really mindful about the trades I take I can't just get in and get out for five cent profit I'm gonna.

my profit loss ratio is minus 70 if I lose after commissions and only thirty five if I win with five cents, it's not worth it. it's just not worth it. So I said forget it I can't take that trade and then we get this little pullback here and I was like okay, you know what this is, this is your time. This is it Right here? We've got this consolidation and what do we have on the 5-minute We now are starting to get a little bit of pullback.

We've got one, two candles, a pullback. so I was like I'm gonna get in right here for the first candle to make a new high. So I got in there for the first camel to make a new high I Got in early at Eleven Ninety Five and I took seventy five hundred shares my regular account and a thousand in my small account. We pop up to a high of 1250 and so you know immediately I'm up like thirty five hundred bucks or whatever it is and I'm like, okay, this looks awesome, this looks like it's going to really move and then we drop all the way down on this red candle to 12 I go to break even and then we pop back up 2 up, 3,500 and then back down to break even And that's when I finally stopped out I said alright, you know what? fine fine throwing in the towel and so I and I actually added it 48.

So I that's when I got myself up to eighty five hundred shares. and considering I had 85 hundred shares and I was up, you know, twenty five or thirty five hundred dollars, it's disappointing that I lost. But that's a trade where I had the opportunity for a really big winner if it had worked. If that had worked and we had popped through 1250, I think Thirteen would have been easily the next logical target.

Thirteen possibly a squeeze over 13 and 13 20 and that would have put me up. I mean if we squeezed all the way to 13 into the 13 20s, I would've been up about $8,500 So you know risk reward and that was really good reward and the risk potential initially was about $700 and then once I added it was basically stopped at breakeven and so I lost 300 bucks. I mean it's like three cents. It's negligible.

you know it's not. It's not a big deal obviously. I would have preferred to been able to make 800, you know, take 10 cents profit at the very least, but this was a hard one because of how quickly it would drop. You know the bottom.

just it just drops really fast and getting out with big position with big size is not easy so you know it is what it is I I Stepped up to the plate on these trades in my large account and you know I was ready ready for a homerun and just things didn't connect today so that's okay. You know that's the way it is sometimes and you know I'll bounce back and hopefully tomorrow we've got. We'll have some good setups. you know a better gaps can like.

Like I said, the gaps can was em RNs don't like it ET RM crowd at no News G lbs crowded, no news mark and may RC ma RK you know, just kind of non-event gap and that was it. There really a lot on the gap scan I know Mike traded cue comm which is fine but that's way too expensive for me to trade in the small account so no trades on that one and you know. So like I said today, it's kind of a little bit of a frustrating day. I didn't get exactly the start on the week that I wanted but in the small count Green is good and in the big account one small step back you know while I wait for the next a quality set up that I can really sink my teeth into is fine and we all have different dollar amounts that we can lose and we just genuinely don't care.

And I'm at the point where you know 1,200 bucks 1500 bucks doesn't matter, not gonna sweat about it. Made two hundred twenty two thousand dollars last year and I had a bunch of red days so you know this is just one small step back waiting for the next good quality set up. and really if any one of these trades had really opened up I would have had you know I would have had a great winner and so you know if you step up to the plate enough times things will connect and you will have that that big trade. Alright guys, so let's see I see you guys on Facebook sharing the video.

Thank you guys for doing that and thank you guys for the the likes and everyone that's watching. What I can do here for a couple minutes is answer some questions that you guys have. If there's any stocks you want me to look at I can look at those Maneesh Yeah, totally. So what percentage risk model am I using on Total Equity? That's a great question.

So the way I manage my risk on my small account is basically like keep the stops as tight as possible. So one of the things that you guys are able to do in the simulator and I'm going to open up the simulator for you so I can show you how this works. You guys are able to set up essentially a bracket order. Now, it's not exactly a bracket order.

It's not exactly a conditional order, but it's pretty close to that. So let me show you how this works. trying to log in here. So I gotta move my phone.

Hey Joe Welcome, Yeah, sure, just wall this loads. I'll take a look at T VIX So a couple people asked me today about T VIX about Jane ugh about DGA Z and I don't trade these DGA Z as natural gas Jane ugh is gold and T VIX is the volatility index which trades. These are derivatives or commodity derivatives. They trade based on the value of something else so their value by themselves.

You don't usually trade the VIX or tray the TVI X just on its own. Usually you trade this chart based on you know what the overall markets doing, based on what the spies doing you know or if you were gonna trade it you would trade it based on what the actual VIX is doing because T VIX is Let's see this is 2 times the VIX So it's it's one of these funds that makes increases volatility. So when the VIX moves X amount this moves that much more and again when we've got a market where you know like we used to trade FOMC meeting minutes especially during quantitative easing because there was always that speculation of are they going to you know, increase it or decrease it what's going to happen and you know that's when we would end up seeing these kind of big moves in the volatility index but generally on a day to day basis. I wouldn't trade this.

Now to go back to the question about risk. So whenever I take a trade, every trade I take has risk and a trade isn't a trade until you know what your risk is and in terms of like make it a good trade. So you get in and you say look I I can control how much I'm gonna lose on this trade I'm gonna say I'm gonna risk not more than a hundred bucks. So let's say you take a thousand shares and you've got a 10 cent stop.

Well now what's your profit target and you need to be able to have at least a 20 cent or $200 profit target to me to have that two to one profit loss ratio? That's what you want to aim for in every trade. So with sure trader account what I do essentially is I get in and let's just pull up a stock like G lbs here on the simulator. so I can get in this and I can press first I press shift one to buy a thousand shares. All right! I'll show you guys who are watching on the livestream.

So I press shift one and a buy a thousand shares. so I press enter now I immediately press ctrl T which is for stop. It's going to ask me if I want to put in a 10-cent stop and now I press control P which is Profit target and now I've got 20 cent profit target to sell half. So just by doing that, this trade now has a bracket.

It's got a max loss and it has a Profit Target. Now you can do this with conditional orders, one cancel other orders, but that's not something that all brokers have and I'm not sure that you can do that in Share, Trader or speed trader I haven't figured it out if you can. So what I do is I do this in a mental capacity where I don't set the live orders but mentally in my head I say okay my max loss is ten cents and my profit target is twenty cents, right? So I've got the two to one profit loss ratio Now this order. let's see.

Okay, it just stopped me out. So you know we got stopped out on that Ji Lbs paper trade. So I'll cancel the sell order that's still out there. So that's basically the approach of you know, knowing as soon as you get in, you've got a max loss and you have a profit target and you need to have that in every single trade.

If you get in the habit of setting those orders, Ctrl T Ctrl P Then immediately each orders each trade is you know, hugged with a max loss and a first profit target Now I set the profit target to sell half the position when you're up twenty cents. So I press ctrl T for a ten cent stop and then ctrl P to sell half up twenty cents and then once I'm up twenty cents now that order gets taken out I Press Control B on the rest and that's break-even stopped at Breakeven. So these are the hot keys: ctrl T for stop control P for Profit Target control B for stop at Breakeven and just by getting in that habit of doing that, you're gonna work on getting in trades, getting that quick profit, adjusting your stop and it's almost like you know when I cook when I Go climbing, You know I climb up the wall and I need to have the Rope tight. so I don't fall back.

You know, climb up, tighten the rope and I don't fall back. So this is constant backstop that moves. has you trade and you know. so having to stop first down 20 cents and then it breakeven and then down.

you know, ten cents and so on. and so on. That's really the best way to manage risk on on a day to day basis. All right so there.

I've cancelled that order, so let's see any other questions. VXR Let's see: I haven't traded that one in a really long time. Yeah, I I Don't have a lot of interest in this one. It's just.

well. number one: it's not gapping. It's not a gap or stock. So I trade stocks that are gapping up generally speaking or that are squeezing up.

This one's squeezed. selling off. its going down so it's going the wrong direction for me. Besides that, the price is a little high.

It's a little more expensive than I prefer and you know it's just not. It's not usually going to be the easiest one to trade. Let's see. Ln th let me look at that and uh, Ln th.

Okay, so now this is a good one. This one has a five cent tick. It's a good example. It's a good example of one that I wouldn't trade.

It's not actually a good one. You can see here how the level two is so thickly traded and the stock basically trades in this kind of range. No volatility, it doesn't move, it trades within. you know, five or ten cents.

So this stock is part of the five cent tick pilot program. There's a group of about twelve hundred stocks that are part of this program where the SEC has changed the minimum spread from one penny to five cents. Now when you've got a five cent spread, that means the stock is quoted at 9:00 9:05 Nine Ten Nine Fifteen Nine, Twenty Nine Twenty Five. And it only trades and only quotes in those five cent increments.

So the issue they there for day traders is that what this is essentially done is taken out 80% of the price points where we would put orders. Because there's a hundred price points between $1 and $2 There's a price point of every penny. But now there's only price points on these stocks at every nickel. So 80% is gone and you're left now just 20% So all the orders have had to fall into these grooves at every every nickel.

As a result, each nickel has a lot of orders, a lot of buyers and sellers on both sides, to the point where the stocks become very thickly traded. They don't really move, and even when we've seen stocks start to squeeze up, they move up in 5 10 cent increments. they move up quickly. But then if the bid doesn't move up with it, then it ends up.

You know that people that sell and they end up taking losses or that sells hat the next pen or the next nickel. So when you get in, your stops are further away because if it quickly drops, you're losing in five cent increments. and if you get in, it needs to go up that much more for you to sell on the bid and be able to make a profit. So these are not easy to trade.

Now this pilot program is going to last until the Fall of 2018 and in the spring of 2018 in about a year there will be a report on the initial findings of doing this test and the test is to see whether or not this Inc. This spread encourages market makers and investment banks and institutional traders to start supporting small cap. IPOs The reason this whole thing started is because there was a realization that between I think it was 2000 and 2000 and 2009 there were a lot fewer IPOs than in the previous nine year period from like 1990 you know, 5 to 2001 or whatever it was and they were wondering if it was the result of decimalisation that happened in 2001. In 2001, the market changed from trading and fractions to trading in pennies.

and when it traded in fractions, the smallest spread that you would ever have would be six and a chorus and a quarter cents. So right around the five cent tick and you know the the result is that small cap stocks I Suppose if a market if an institutional Bank supports the IPO and becomes the market maker and starts actively trading, they profit by trading stocks across the spread. so a bigger spread means more profit every time they cross and those trades whereas a tight spread is not profitable. And so there was the concern that because there was not enough opportunity for them to profit on these small cap stocks, that that was the reason they stopped supporting their IPO And so as part of the I think it was 2012 Jobs Act the SEC was required to do this five cent tick pilot program and it or maybe they decided in 2014 and then from there it took two years to organize it.

It started in 2016 and is now running for two years. So till the Fall of 2018 and like I said, a year from now in the spring of 2018, there'll be a report on the initial findings and it'll be interesting to see what happens. I've seen that these stocks with a five cent tick trade basically sideways. Now this means an institutional banker could trade you know across the spread because it's just so consistent.

Now let's look at another stock that's kind of like this Serie. Alright, this is a stock that the level two looks pretty similar. Very Very, thick. The difference though is that Siri trades on any given day a lot more volume.

I Mean you know it trades millions of shares of volume On any given day, it's much more actively traded. Let's look at Siri Now, these are both relatively small cap stocks that are extremely thickly traded. and you know as a result, market makers are they got these huge orders on both sides of the bid in the ask and but this is what it looks like. Now, if you wanted to buy a million dollars worth of Siri right now, you could probably do it.

You could just get right in and there's no way you could do that on. You know, on most of the lower price stocks, they just don't have that level of liquidity. so you know it's certainly good to have an environment where people that want to take large positions in small cap companies can do it. But whether or not this five cent tick encourages that, it'll be, you know.

I Guess time will tell. So far, it doesn't seem that those stocks really have more volume. It seems that they just don't really move that much, which is also probably not good for the owners of the company. so they may I don't know what they'll be they'll be voting for, but in any case, that's that's the kind of long answer on the Five Cent Tick pilot program.

But you guys can also read more about it on the website. There's a link that I just put in the chatroom and there's also a video that I have on on YouTube Srgio is asking if running a mile a day really works to help you stop breaking rules and the answer is that if it doesn't you've got an increase to two miles a day and if that doesn't you've got to go to three miles and four miles until you get to the point where you're doing something you really really don't want to do. And for me, when I said I had to run one mile for every time I broke a rule, it actually it didn't work because I sometimes would say you know what I don't mind running a mile I want to take 10,000 shares of G lbs I'm just gonna do it and then I'd be like I'd run a mile. But then the thing is if I broke that rule and I lost $3,000 running a mile didn't really feel like an adequate punishment.

So that's when I decided that if I broke any rule at all, I had to run five miles and that was enough for me to say You know what? I just would rather sit on my hands and not not break that rule. And the last time that I did it I did it I broke the rule. It was on a rainy day. it was cold, it was dreary, It was fall and I had to run five miles and it was.

It was not fun and I was like that's the laughs. that's the last time I do that and it really. you know for the most part I've been really good about following my rules. The only thing I've done this year that I I need to be careful about is I've been positioned size.

my sizes have been really big in the Speed trader account and although the winds have been great, the losses have also been big and so I just have to be careful I don't get myself to over-leveraged where I you know end up taking a really really big loss. So that's something I need to be mindful of and they don't really have a rule specifically pertaining to that because I'm I'm at a point where I feel like I have more self control and I don't need to necessarily have a set of rules in order for me to make good decisions every day. I have kind of unwritten rules obviously I've got my thousand dollar max loss, you know? I have certain things, but it takes it takes some time to get to that point where you can really trust yourself to make good decisions. now.

I Know a lot of people talk about marijuana stocks and stuff like that, you know I've never really had a lot of interest in them because most of them trade on the OTC market and I don't like trading OTC I Think they might almost all trade on the OTC market except for a couple of stocks zyn II which is not exactly a marijuana stock I don't think, but they have some treatment. that and I'm not even a hundred percent sure, but Zyn E is one. there's another. GWP h GW Pharmaceuticals and I Don't know a lot about either these companies, but I know that they're both have some role or used marijuana and some of their drugs I'm pretty sure they do and yeah, you know I just I haven't had a lot of interest I mean I Think that certainly if there's some change in the legality on a federal level, then these stocks will be a lot more interesting.

but until then, the state-by-state stuff I'm not sure that you know I'm not sure that this is going to be something that's worth trading Roberts Asking if a beginner trader should try their luck in binary options and I would say no I've never traded binary options I Don't think that it's a good idea I think that it gets into more gambling than anything else and I think that most people who trade binary options are losing money I Really don't think that's the way to make a career I Think if you want to build a career you really want to focus on, you know, just outright stock or options. But you know the stuff where some people do spread betting or you know, trading binary options. I Just don't think that's a good idea. Alright guys.

so the link to sure Trader Hotkeys, the hockey file, and my layout is all available in part as part of class 11 of the day trade course so you guys can download it there and if you have any other questions, you guys can feel free to reach out. but at this point you know we're sitting here. Lunch our 12:20 on Monday I'm happy to be finishing day 14 Green I was in the red I was read for a few minutes today and so you know another green day. Green is good, a small small step forward and a fairly good accuracy.

Three out of the four names ensure trader our greens, so hopefully tomorrow we'll have some good opportunities and I'll be able to, you know, get myself closer to 10,000 or 12,000 dollars. All right guys. So I will see you all first thing tomorrow. All right Thanks guys! Now I'll answer some more questions here.

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