Well here we are I'm in Miami Do you guys hear hanging out in Miami Today is due to the Inner Circle seminar which has been absolutely awesome and what I want to do for you guys I Want to let you know that I've put a lot of you guys are probably getting a little FOMO that you're not here in Miami with us everyone's in there and I'm gonna go in and do the recap in one second. So I decided for this inner circle that I'd do something that we've actually never done before I knew a lot of people at the last minute weren't able to make it. You know this is what happens when you have a conference really close to the holidays. So what I decide to do and I just did this like the week before we came out here is I got a couple of these three cameras.

You know we're doing recording. so everything that's happening here, breakout sessions, live trading, it's all being filmed. So what we're gonna do is I'm gonna put a link right in the descriptions I'm gonna post it there probably in 15 minutes when I finish this recap. So you guys if you want to register and get a virtual seat, you can get a virtual seat.

The only thing I need to cover is the cost of the cameras. about three cameras. Alright so I got a couple across the cameras so you're gonna pay for the virtual seat but you guys want to join us watching the whole event. All right.

So it's not a livestream, it's a recording. So what we're gonna do is next later this week, Tomorrow, Friday and all of next week we're gonna be editing all this footage, putting it together and then we'll e-mail you the virtual city recordings. Alright you guys! So I want you to click that link right there in the description if you haven't already and sign up for a virtual sea? make this official. We're gonna go Live All right You guys can everyone hear me? All right? So we are going to start doing our watch list or our recap.

Okay Fw, this is my second great day of the challenge. In fact my first red day was day 2 which was pretty disappointing because you don't like the heck of a second date with Cammy from the redhead. Ok, wanted me 158 12 bucks and so that was a red day and I decided to Dafina whatever. just put that behind me.

Ended up doing pretty well this morning. I came in with 1,400 like 25 dollars in the account, start at $20 and today is the biggest red day down three hundred and forty eight dollars. which is really disappointing just because obviously having three red trades max loss, you know, just all around. So I want to kind of break down today starting with LM PX that would go to FWPD and Kikis TC Co which was the third and final trade that was the one today.

Now it's the philosophy of three-strikes-you're-out today which is just taking this rank out after to read trades. The problem for me is that in my big account and Rob knows this because I called Rob and I said hey Rob from Lightspeed you know can you set the max loss on my account $1000 and would you say Rob no problem that's right, Rob's quick with the answers. so in my life to be down below $1,000 I cannot initiate any more tricks so har vokse loss on my account. The reason I didn't set it up is because I knew with a $500 count and as I grew it over the first 10 days that my max loss would sort of be changing every single day.

On day one it was like 50 bucks. You know day two once I was up to 650 it was like alright I guess maybe sixty-five dollars that is. I got up - okay you know I guess I'll set my max Lassa around 10% of the account. roughly today.

roughly 10% of the account give or take would have been about 140 dollars on the very first trade I lost 44 bucks So the first traders RFPs when I was moving into my new office I am I got my six monitor you know multi monitor training station and I didn't wanna take the time of taking it apart so I had all six monitors and I just put them in in the trunk of my my car and then I couldn't find I couldn't find good parking on Main Street So I ended up finding a parking spot and I had to pull it out of the car I walk up a street. you know I'm finding these six monitors like this kind of crazy thing but you know it ended up being fine. None of them broke on them on the walk so that's good and this is kind of precarious, but we'll just work with. Okay, so um and for those streaming on YouTube you can see this is the live trading screen.

So live trading all day today in front of all these students here. So LMP X let's pull up the chart on this one. Alright so L&P X this one was on our watch list. I've traded it over the last several days and I've I've done pretty well on it I've actually made some some good money on it I made four hundred twenty seven dollars on this stock on Friday and then I made a little bit of money on it yesterday so you know overall it's been a pretty good one.

I Was impressed that it was gapping up again this morning gapping up to a pre market high of $19.50 and I was thinking this is the stock that just doesn't want to stop I mean it just keeps going higher So initially my thought on it was that it's a long the bell rings and if I pull back this chart here, you can see that the way I've got this set up is daily 1 minute and 10 seconds I'm doing that. you know, mostly for the benefit of you guys being able to see kind of. We did a one-minute candle, the sort of miniscule indicators that I Okay, so the stock. the bell rings and it's down here at 1650 so it's a little low, it starts to curl up and I'm like not like this because the fact that it broke this consolidation free market and broke 18 to me felt like weakness.

So I was like I really don't like it until it gets up closer to 19 the pre-market highs and then I like it for a break from 1950. So as it surges up here, right, here's a broke 19. Now, the tough thing with this even looking at it now, is that that was a really extended entry. The reason I got in there was because I thought I could broke nineteen that that was the tipping point that we would definitely break the pre-market ha and I was holding I think I had 300 shares so 300 shares of it and I was holding I gave it a second and then I saw starting to see some red on the time in sales I hit the bit I hit the bed I saw 19 on the bed I got filled in 1871 I got 30 cents of slippage.

That's gonna happen with a stock like this and so I used to get nineteen. If I've been able to get out, nineteen would have been flat I took my loss on that and started the day in the red down $44 now I Also started the day yesterday in the red and was also on LMP X so we can still do something today now. I'll put the Gap scanner up here. Our leading gapper this morning was the gap is up 40% but what it doesn't have going for it is it.

the price is too cheap, price and the volume free market. This is the volume as of right now and if I press this and go to time frame and then historical date and then I'll run this for 9:20 a.m. pre market. it already had to be really particularly clean.

The bell rings and you can see TN XP and squeezed up. oops t + XP squeezed up a little bit but it didn't hold its level super well and is now retraced and come back down. So for me it just doesn't really fit into the wheelhouse primarily because the price. so there was a little opportunity there.

a break. the free market I gave a quick wrap-up to dollar 70. but here's the interesting thing on this stop: being below $4 with my Cmeg account I have no margin so I can only train with my $1400 cash balance which means it a dollar 50 I can only buy about and then I couldn't share easy. Okay so 900 shares.

so I mean if I got in this with 900 shares if I got the best you know kind of entry which is the breaker 3 market high and then handled all the way to the top that's only 20 cents you know dollar $118 These low price stocks they don't have often as much range until they start to get above 250 3 dollars and then they start. So for me I just kind of felt like the profit potential was you know, still solid 15 cents and it wasn't really worth dating the trade I don't want to risk at 15 cents making and 20 was like best case in Europe so no trades on TN XP I just left that one a while all right. Now the next one was f WP and this was on the watch list because yesterday have made a pretty impressive move. This stock squeezed up from six dollars.

free market was holding right around nine dollars and I thought that it could grow over time right here that that was the tipping point. that then kind of highlight the hood. making a new high. 11:48 was resistance on the daily chart and that gave us room back up to 1525 these levels I Found by looking left, right.

This is what we talked about looking left and up and so we had to go back a little ways. But then we found this big gap on the daily chart back here so this won't cover in chapter 4 of Day Trade course. Now on this one. what I ended up doing was as soon as the bell rang I had an unwatched I was also watching LMPD X and wasn't sure it was really gonna work but I kept an eye on it and all of a sudden right here it started to search up.

it surged up the pre-market or the high up day. I got in right here. this is so I was in 1948 this is a degree mode. it went red and explained greedy I'm getting in target breaking ten bucks left Rick back up.

In this case what we have here was a hidden cellar Now sometimes I'll give a hit and sell our second to kind of shake out. so I saw a lot of accumulation at 950 and I could see by it was going through but it wasn't breaking that price up to 58 and drops down as you can see so on this one I ended up stopping out as it broke back through nine and so on that trade I lost one hundred and forty-four dollars making it the biggest locks of the small couch. Now no doubt I will be setting a number of records for biggest win the biggest awesomest challenge as I go further in because my accounts getting bigger so it's not the biggest loss because I mismanaged respirating. That's just the biggest loss because I'm training with larger share size at this point of account on this trade I think I had those three hundred chairs for know 600 years so I was using the margin of course on this and all things considered, it's still a pretty tight stop stop drop down to 50 but I was okay.

So now I've got two losses and it was about eight minutes into the day so I was like well this is terrible I'm training obviously I always trade in front of a pretty large audience but it feels especially so today. not what I was hoping to happen the first eight dollars and I thought well based on the 10% rule passed that it's gonna three strikes to her out obviously I've still got one laughs and so then we started talking a little bit about the trade. what's happening you know and I talked about how and is it about that time that TC CEO popped up on the scans so TC CEO key wasn't working. but today my Okies working to find stock pops up and it almost seemed like maybe Mikey was working because I was meant to trade this stock I don't know I'm a little superstitious so well actually we have a couple of.

let me break this down a little bit more so I'll go fullscreen on this. So first of all to give you guys context, it's squeezed for for two hours. Although she's handicapped up from two to four and squeeze time, that's huge move. Yesterday, a little pullback day, not today.

it starts bouncing off the low and so you know guys, this to me I think this would be a false breakout matt91 you know there's a false pretty cap. It broke there the high there about 6:30 and then flush back down towards six over there. so this false breakup didn't pull the level. Yeah yeah, good job You're right.

This pulse break I can call back. Think about it is this is not uncommon to see a stock drop and then off the law. A little bit of bounce and you'll sometimes see me take that type of trade. But today not having the cushion I felt like I couldn't really afford the risk and this is something that we talked about yesterday.

The small cap breakout session is the importance of those first two traits: building your cushion. Well, you guys asked me or something I think over here. at what point do you switch from, you know, focusing on basis, trying to, you know, maybe hit a home run, getting aggressive I don't usually do that until I first built up cushion. The first job for me every day is to build my cushion.

so the first two or three trades I can get myself up two hundred three hundred dollars. That's what I'm focusing today I did the opposite of that I lost money on the first two trades and stomachs with result being trade three or four versus popping up now I'm feeling like I don't know if I can really trust I don't know I'm not feeling accurate today. the market feels like inside rather than kill for risk and so what? I'm doing this I'm increasing my quality standard I'm saying that I'm not willing to take a third trade unless I see something that's really strong and so we lost one hundred and fifty eight dollars making it now. at that point, my biggest loss of the small count.

Chapter 159. So you know today up to 1,400 So let's say that's 9 steps forward. and today I've taken three and a half steps back. That's maybe one step back more than I would have liked.

And that last trade on TC Co I Really thought that it looked good. It seemed like a decent setup. It did end up going to the Hobby but I was a little early perhaps on my timing I couldn't afford to halter the pullback. The proper stock was 688, but there was no way I could afford to hold that part back.

So I stopped out here only to watch it run without and that sometimes the way it goes in the past and I'll tell you my portray goes to 300 shares. My seconds was 600, My third is with 900 increasing share size as I'm today. that's kind of the opposite of what I typically do and I've thought about this a lot. why rat and of course the thought I said well now I'm red if I can grab the 20s with six other chairs, that's 120 bucks so it's a quick bounce back up into the green and to that dependency that I have, it's something that in this case ended up making the first loss small, a second one a little bigger, better one a little bigger I would say I manage my wrists relatively well on these.

However, it is a red day I Think the in hindsight I could say that I should have traded TCC Oh, but of course had it gone the other way and broken 750 760 and ripped up to 78. Right here you know I'm down 188 $200 Look at this guy has a great hairline back into the green so you know. but of course this is one of the days where it went the other way. the biggest that one of the worst things that can happen to you as a trader is having a positive reinforcement of the negative behavior of a bad behavior.

I wouldn't say this bad behavior but I think the process or the the act of increasing share size as I go further into the red is very dangerous and it I've done it to the point and this wasn't when I was trading at Lightspeed But you know the beginning of my career where what I would start doing is: I would trade I would start the day with sort of small size and I would trade a little bigger, a little bigger, a little bigger, a little bigger. Until those last trades where I was down sometimes 3,000 for thousands of dollars, I'd be trading with like 15,000 shares, 20,000 shares, 25,000 because it was like well you know with 25,000 shares gonna make 10 cents 2,500 bucks Just like that I'm out of the hole and one of the things we've talked about a little bit in the breakout sessions. the Curve Profitability Linear it is for a while and then it starts to taper and then it actually starts to go down. That's because of slippage.

You cannot date with a hundred thousand shares in, you just simply will loose more in slippage than you make problem and so having the presence of mind that I know that that's how snowball days are formed. It starts with going a little red and then deeper and deeper and deeper. and I know Chris right now but I know he said was a semi-professional poker player and you know I know that there. We sometimes talk about how some people come into the market and they gamble and some people come to the market in a trade strategy.

big money and as a you know when you play blackjack it's not uncommon strategy. to take the approach of you know if you lose 50 on the first and then the next, you risk a hundred and then 200 and then 400 and 800 and 16 and 32. That's 64. Knowing that when you finally win on the last one, it'll make back those losses and then your backup plan that doesn't work which it's sometimes an instinct that we have not because maybe there are days like today where it may have worked out and then you feel like you know real deep.

I'm back in the green and you know I got the bullet. What about that? Where you know you reach the limit of your brokerage account and you simply do not take more shares, especially with a small account like mine. Or what about the limit of the liquidity of the market where you simply cannot buy 50,000 shares of? TCC Do you expect to get billed as 725 or 726? You can get filled with probably 20 cents of slippage and then that takes away all the problem, especially the trips up. So the traits of successful trader are disciplined and no one went to walk away.

It's not about not having red days, it's about minimizing minimizing damage. So today's a day because any day I come in I first want to be green but I try to detach myself from the loss. with this isn't and by any means a reflection of you know personally, it's not a reflection against my strategy. this is just another day in the series of you know, thousands of days of me training.

You know it's it's a regular day, a red day, but nonetheless, nothing that I should be bent out of shape over. I Think as a beginner trader, a red day carries a lot more significance because it brings up that question of have I figured this out. Do I know what I'm doing? Am I going to get over this learning earth Am I going to stop having days like this as frequently as I'm having them. I was having red days, red days rose.

you know, giving back that would have been nine steps forward and nine steps back. and I've had days like that in my career. Those the days where you know I was having them like every four weeks and so the money I would have that I had taken out of my account to pay bills now I was negative versus forwards, right? So I was going down and down having to add more money and that was a really stressful, you know, stressful process that part of work. So again, I really want to encourage you guys who are here today this afternoon to spend a few minutes.

If you feel like you're in the place where the emotions are what's holding you back, you know, ask yourself what is it that I need in order to be a proper trainer and you may not know the answer yet. But if you can ask yourself that and think about that and if the answer has anything to do with just ability to follow the rules so the ability of them know when to walk away whether it's ringing and I really encourage you to reach out to our trading psychology team 10 Diane who are in the back here. They're happy to have sessions with any of you guys who are here part of the inner circle. Those of you guys who want to reach out to them I really encourage you to do that it you know for me, it is still something I struggle with at times.

but I've I've at least come to learn when I have heart cut offs but you know when I hit them I've done and right now I still perfectly liquid in buying power I could have taken this trade right here on TCC Oh this breakout at the flattop at about 75 I'd liked it I was interested and I told myself you've already got three locks but I'm the only one in four. snap. All right, so give myself a pat on the back for having discipline to all the rules. Three strikes, you're out even though I kind of, you know, went past the max loss rule.

although I think that speaks to the fact that when you don't have a clear rule you know kind of in writing, that's it's. sort of not a rule, you know if it's just kind of a, you know I probably shouldn't do this, but you know, don't really have like a hard number. That's a problem. You can't really be wishy-washy with rules.

When you're a habitual rule breaker, you've got to have a very clear set of rules. So I think tomorrow when I'm training with what will that mean? $1,000 account. A little bit of a setback. still have one hundred percent in the last week and all stick one hundred dollar max loss.

Now I'm a little bit on the defensive side. I've got to be a little careful as I kind of build that account back up. All right. So our breakout sessions small caps, large caps, and I'll get to your question in a second and futures will do that as well.

Lunch is gonna be upstairs and I want you guys to know that you may have noticed We've got a couple cameras. We've been filming the whole Inner Circle seminar and so you guys who are here today, you'll all get a copy that you can keep so you can go back. Free. Watch it.

You want to watch me lose three times in a row And those people who are watching on YouTube We're gonna make the live recording available for sale so if you guys want to join to see the link in the description to watch that. Yeah, so why don't we do a little bit of QA I can answer some questions that you guys we have. Lunch is going to be in about 10 minutes and because it's a little cloudy and rainy, we're gonna have one upstairs and it sounds like one of the penthouses so we're gonna be all taking the elevator. it says the only problem is they lent one elevator mail upstate at the same time so squeezed in long as you guys don't mind and don't have a fear of heights faces I should be good.

Oh yeah, I've got to cut the hair I I will take that under advisement and I will consider that if you know it's probably not then I Saw a couple questions I want toss to my facts your question over there? Yeah, so the question there for those who didn't hear if you have a loss in his first trade, why I might ask you to just keep it the same. You know as that there are two issues. Number one: I think we share skies on partially because it was simply a lower price stock now, but it's a $17 stock. so Fwp I was grading Center Chairs 500 618 Okay, for that price range, it's really the final trade on TC Co where I went up to 900 which is the biggest position of taking so far.

that is the one that was, you know I was watching the level two I really thought that it was gonna break that level I thought I could get in and get out for a quick profit and I think I underestimated how much it might drop if you guys saw how to drop back 705 and I was like you know I gave you a chance to pop back up I couldn't order on the asset 25 it didn't fill. Okay, let's see for a second and then in collection I had to stop out. so on that woman I think that that was one of those may be slightly more impulsive trades that I didn't fully think out I'm gonna take 900 shares on this I just looked at it was like I think it's gonna break out now click click click and so quick. but it's like but I you know again I was quite confident in it for the two reasons: that one in our back and that's the break-up this ended up being a more extended hi I just missed times a little bit.

sometimes you have the right idea and you're a little early and it's disappointing. when that stops you out for the day and you're below your max loss and your life or your mood strikes, you're out. So I tried and I said this the other day with all of the X that I want to make sure I leave myself room to take a couple stabs with this. So the first couple trades I was trading like 150 or 200 shares but today I didn't I didn't do that I think it's a good question I think that there's there's a lot to be said for kids, just in sheer size across the board and certainly with light speed and with Sterling you can set and share size restrictions.

You know where you want tribute the beers size like that's what I did last month I had a broad set of 2,000 share back size on my big account even though I knew that that was gonna be frustrating for me because there would be days where I see something I want to take 10,000 shares. but it's what I need to do to train myself to trade with the small caliber. and those first two weeks were bumpy because I was going in with 2,000 shares on my first trade and then if I lose, give two cents about. Well you know now when I see the next setup I want to be able to take four faster so I can jump out quickly and if I get twenty thirty cents I can start to put a dent in that faster but I couldn't So the first few days I kind of ran into this issue of taking full size right away, getting my max laws or being down quite a bit and knowing that there was almost no way I was gonna be able to get back up with that size.

and so then I started kind of thinking well you're gonna feel this, you're gonna the same experience with a small town of sheer size so don't call me max your size on the first trade and actually I haven't kicked my mad chair size on anything since the first three days or four days of training. now tapering back how much buying I'm using this you know is going out so I can leave myself if I do see something I want to go really big on got me into question there I'm gonna watch you So when we did with this new simulator with the Sterling said we built in the metrics. So the metrics that you look at sometimes on my trader view I won't pull them up right now. no I will because what? I can show you and I can show you my first.

Let's say my first five days. So I'm just good trader be there I Imported my trades from Trader View from the first five or six days of the small count challenge see reports of you. So what we did for you guys is we built out the metrics in the simulator so you can get a sense of what's working what's not looking. So these are my first.

This is gross profit which is before Commission net profit right here I was read as you can see actually is $22 on Tuesday so 516 dollars of profit there and what I can see is my profit loss ratio. Okay so that's two to one loss ratio. When this importance betrayed it counts your accuracy and says I'm allergic a trace actually comes your accuracy based on whether you're green or red on that stock on that day which is kind of odd because if I create a stock five times I was considering that five individual trades and five to the vidual winners which house calculate what it. We have all this data available to you in this drawing sent under the metrics window so you can analyze your performance.

You can see of trade being profitable and of course you recognize that this but this helps you dial in and see. Okay, my accuracy is this my profit loss ratio is this. so this is ready to focus on if I really want to keep you know, Improve. So that's what we have it set up as and is able to log in as a manager and I can do it as well.

And as a manager locked into Sterling would be like a hedge fund manager. I can see all of the accounts so I can see you know the biggest winners, the biggest losers of course there's give a taste. There's tons of of active trade so we really want to give you the ability of how are you so I think you have a question in the back here yeah it's doctor okay I will so the question there. I Don't put emphasis on moving average crossovers As a day trader, there are some people that emphasize sort of moving average crossover.

So in the context of swing trades on larger timeframes like daily charms like, but as a day trader, price action. So anytime the stock is trading, its at its average price with volume factored in of the day, so it's kind of really at equilibrium. Sometimes we see stocks come down to that point to hold support and then rip off that level but have no news I Thought it was premature on the daily chart. One of these things would trade with the market can be irrational longer than you can remain solvent.

If you really are headstrong and say huh, no news, it's definitely the leau77. 58 What if it crazy action ripped up to 9 11, 12 saying there's no news? Well, you know, maybe we didn't know that. Some decided, you know, tell his craters to go buy 300,000 shares of the stock because I mean you just don't know the market. There are things that you don't know about the market.

You see it. you know, surging. not balanced enough to be whack. -.

Frank First pull back. it's working. So I guess the short answer is I I Don't put a lot of emphasis in it other than just helping me understand the context of the stock. So why don't we take a break here? It's just about noon time.

so I want you guys so in five minutes so you know you guys come on a rush but about five minutes tears for lunch and then we'll be back here around 1:15 Will do again. Small cap breakout session Large cap are you guys? So I will see you all back at 1:15 All right, what'd you guys think of that? So you guys got a little sneak preview. Here's there's wrap from Lightspeed there's the guys from Sterling so come back outside here I Hope you guys enjoyed that that this is. The seminars been awesome.

We've had a great turnout, great with the traders I Think everyone has made some really good friends and they'll be you know, kind of the buddy system. Someone that is gonna help hold them accountable over the next six months or so until we meet again for the next inner circle seminar. But those of you guys that are wishing that you've been able to be here he couldn't travel. It's too expensive.

I Get it. That's why I Got the video cameras this last week. We recorded the whole thing. So these small breakouts, one camera will be with me, one will be with mic, one will be with Steve So you guys are going to be able to have a virtual seat to the inner circle so check out that link in the description we're gonna give.

you guys will discount for those you guys that join this week and I'll be sending out the replay the recording of this whole event very soon you guys! So I will see you all later as it's always please If you guys had questions while I was talking while I was trading, leave them down below in the comments. Gave me the thumbs up and make sure you are subscribed to the channel. All right! I'll see you guys later everyone.