What's up everyone? All right. You guys are in for a treat today because I'm gonna break down for you the indicator that I use to find stock to have home run potential. This is big, its relative volume. and during this video I'm going to show you some of my metrics.

You'll see that I have over three point and it was 3.3 million dollars in profit in the last three and a half four years of trading and almost 98% of it comes from stocks that have relative volume of 5 or higher. So what is relative volume? How you find out what number it says, is it fours and fives of tens? One hundred. I'm gonna break that down for you right here in this episode. Now for those of you guys who go through this whole video, what you're gonna learn is that this is focused specifically on stock selection.

How to find stocks that have homerun potential. But what do you do once you find a stock that has homerun potential? Well, you need to know where to get in and where to get out. You need to know the tools to use the platform, the scanners, everything else. And so because I don't want this video to be six and a half hours long, what I'm gonna do is I'm gonna put a link right down below for my beginners getting started kit.

Now that kit will expand upon what we're gonna talk about here relative volume and how I use that for stock selection and continue with an analysis of risk management, profit loss ratios, and finding low risk entries that minimize your downside risk while maximizing your upside potential which is what we really all want to do as active day traders. All right! So I hope you guys enjoy this video I Think you really will leave questions and comments down below and make sure you check out that link to download my beginners getting started kit and I'll see you guys first thing on Monday Morning Live streaming right here on Youtube by pre market watchlist and if you haven't already hit that subscribe button, make sure you subscribe. That will get the notification when I Go Live right around 8:45 9 o'clock Alright enjoy the video! I'll see you guys for the next episode. What's up everyone? All right? So I was just looking through YouTube comments which many you guys know we got a lot of comments on YouTube and I try to go through all them and at least for the first comment, give a give a little answer.

So one of the common themes that I've been noticing in Youtube, Facebook comments and even in email our traders asking you know two things: number one Russ what is your number one favorite technical indicator If you could only use one, what would it be? So I'm gonna answer that question and I'm gonna at the same time answer a second question which is Ross how do you find these stocks before they make the big move? This is. you know it's it's it's crazy I mean day after day you seem to find the big momentum stocks how you do it. So at today's a day where I'll put my P&L up here again so you guys can see where I'm at I'm up thirty five thousand dollars. not bad, not not as good as I was just before my last trade on whimmy where I lost I don't know eight thousand or so I was up over forty thousand today.

but in any case, thirty five thousand is still a really good day. So how did I know the boffo and whimmy? we're going to be stocks worth trading. So for on the first question of my favorite indicator or if I could only use one indicator I mean it's kind of like asking a question of if you could only have one arm, which arm would you use or which arm would you would you choose it I hope that I'm never in the situation where I have to only choose one indicator because the reality is I haven't been presented with that situation yet in all my years of trading and I don't see a scenario where I would I understand the value of keeping your charts a really simple as much as you can and so for that reason I don't use a lot of indicators but I would say on my actual charts from indicator standpoint you can see all I have here are moving averages, the volume weighted average price, and then this yellow line which indicates today's open. That's all I have.

So as far as those indicators go on my actual try those are pretty similar or pretty simple. but for me probably the biggest indicator that a stock is going to have the potential to make a big move is relative volume. So I would say that is probably my favorite technical indicator. Although it's not one that you put on the chart, it's an indicator of a stock trading on above-average volume and in my opinion with the potential to make a really big move.

So and let me just open up this window here. I got my let's logged out of this window accident so you guys can see there we go. So back in the chat. all right So so you guys can see when we here this is the chart.

So let's go back and look at this and kind of break down the relative volume and what is relative volume. So relative volume is a measurement of today's volume versus what is normal for that stock. Now that's really important I Don't look I don't search stocks I could go up here to a new topless window and I could say volume and I could I could look at volume leaders load settings and I could look at the stocks that have the most volume today and you would see that Nio has the most volume today at 140 million shares. Now, women does come in second at 43 and then Oh Jen is third as triple Q is fourth.

Psv: American Airlines I Don't look at the total highest volume stocks if we pull up Nio. While this has high volume today, in fact, its relative volume is low. So what is the relative volume for the stock? Well, let's actually go and we can go into properties here and or collapse. No, it's not that.

Hang on. I'm just gonna add the column configure columns and we're gonna add relative volume ratio. Okay, so the relative volume today is three point three, four. All right.

where's the relative volume on Win is 1403. So whimmy. If we search sorted by highest relative volume, we would see women s PA Q P SB and Wafu. Alright, and and all of these have over a hundred a relative volume over 100.

So relative volume in contrast to total volume compares the volume today to what is normal for that stock and it's over a set period of days. And I don't know if different platforms might use a different number of days, whether it's 14 days or 30 days? I'm not actually entirely sure, but it's the average volume over a period of time. So Neo or Ni O, whatever you want to call it in fact, today has much lower volume than it had two days ago or three days ago. but compared to the volume that it traded on a month ago, it is, as you can tell for sure, high relative volume from a month ago.

but again, just because this has a relative volume of three in my opinion, is not high enough. What that tells us is that the volume is three times higher than what it was during this previous you know, average from thirty days ago. in contrast whimmy with the leading volume. although I struggled with it a little bit and you can see that it's it's red today and it's kind of been choppy.

I was Green on it and then I gave back my profit doing a sort of dip trade in this area. So anyways, but the fact is, this was the right stock to be watching. It had how much volume yesterday 1.3 million shares and how much volume today 43 million and it's only 1042. so it's still early in the day.

By the end of the day, this might have 75, maybe even a hundred million shares of volume. So as the day goes on, I mean the volume is just gonna keep increasing in the relative volume. It's just gonna continue to be tremendously high compared to the previous day. So how did I know that this would have high relative volume? Well, pre market when I sat down and I looked at my Gap scanner.

So this is the scan that I run and you can run scans like this. different trading platforms. but and this is the scan that I was running and I saw. Let's see, we'll do timeframe historical date I'll run this for like nine.

9:20 A.m. All right. So 9:20 A.m. whimmy was up here.

Now it doesn't Actually, this software doesn't actually populate relative volume pre-market so you can't actually see what the number is. But I was able to see that had 12 million shares of volume and I was able to look at the chart and just eyeball it and realize wow, it's already a relative volume of 10 versus yesterday. Meaning, it has 10 times more volume than it had yesterday. And now the relative volume versus 30 days ago or whatever the case says may even be clearly higher than that.

So it's a comparison of the volume today versus what is normal. So what? Why is relative volume such an important indicator for me in telling me, the stock has the potential to give us potentially a homerun? Well, relative volume. A stock trading on much higher volume today than what is normal indicates that something special is happening with this stock. and in my opinion, it shows us.

You know there's only a handful of stocks each day that have really really high relative volume. And of course, today, women and woful were both on the top of the list. Both of these stocks had a reason to make a big move, and the relative volume tells us that most likely a lot of people are watching this stock and trading it today that we're not interested in it yesterday or the day before. So you know in your opinion what would allow a stock to have 1.3 million shares of volume one day and the next day have 44 million shares of volume? This is outrageous.

Let's look at a few other stocks. look at the volume spikes. So from 2.4 million shares of volume to 58 million shares of volume two days later, let's look at you owe any. This was a big one from last month, so from 300,000 shares to the next day 25 the day after that, 43 million two days later, back to 58 million.

So how does that happen? It's the result of typically breaking news. Now you owe any. Doesn't have news today, but let's look at with me for instance. So whimmy has news today.

It was posted at 5:31 a.m. Now I don't go searching the news and get up at 5:30 1:00 in the morning to check to see every stock that has a headline because you know what I mean I Can just pull up almost any stock and you'll see SP has headlines. You pull up an American lunch of power mean you could just go through stock after stock after stock and you'll just keep seeing headlines. So searching for headlines that's an sorry I'll I can move the video Well I can move the video to this to the side here.

So searching for headlines in my opinion is not really. it's not. It's not a good use of time. What? I want to look for early in a day? as early as possible you know you forty-five nine o'clock and so that's not as early as possible.

You get up at 4:00 in the morning, but usually kind of thirty minutes before the bell I like to start to look at which stocks are gapping up the most in the market and then I check it and I say well, what's the reason it's moving up and what does the volume look like the reason it's moving up is a catalyst. and I don't need to go and read all its catalysts information and go and do research on 5g holographic applications I don't need to do that I can see just by looking at it that there is a fundamental catalyst that is driving the price action that's creating this. This interest in the stock which started as you can see initially not a lot of interest down at 4:00 A.m. 5:30 but starting at about 7:00 a.m.

it started getting picked up and traders obviously started buying it as it squeezed higher and it hit a high of seven, pull back up to 750, pull back. and so at this point when I started looking at it, wherever this was in here, clearly it was already moving up it already. no doubt was gonna have probably the highest relative volume today out of any stock in the market. and in fact it has now.

that doesn't guarantee that it'll be easy to trade because this is the strategy that I use for finding stocks to trade. and my act is about 68 to 70 percent. So you know today my accuracy I guess you could say is 50% on to the two stocks. but in all the trades I took today, my accuracy was probably 68 70 %.

I had some winners on women and gave back some profit I had a bunch of winners on Wafu, but also a couple losers. So generally, although I'm not going to be agreeing on every single stock, this is still a really good way of finding stocks that are worth trading. And then ultimately, once you find a stock that's worth trading, you think has the potential to make a big move. Then the question is, what's your entry and exit? How do you manage risk? Because it's not enough just to find the stock you need the strategy to put together.

And that's what. Of course the warrior, starter, and the warrior pro classes are all about. It's about teaching you the fundamentals of trading and helping you understand the strategy. So of course we have stock selection which is chapter chapter 2 and the starter and chapter 3 and the pro classes.

And then from there we go into breaking down your daily charts, understanding why. Not only is it important that this had high relative volume, but it also had no upside resistance above this level of 6. However, the flow at 6 million shares here is in fact was not accurate. The floats a little bit higher I Think it's closer to 20 or maybe even 30 million shares and certainly this one was a bit choppier than I Expect it to be is also easy to borrow, so sometimes stocks are easy to borrow.

you're gonna see a lot more short sellers trading it to the short side. no short sale restriction or anything like that. So again, those are more of sort of the nuances that I would apply once I identified. The stock just on the surface has or will have high relative volume.

Now if we look at Wafu, the relative volume on that one is a hundred and fourteen. Now this one's kind of interesting because it was how to Move that started yesterday after hours on news about it's a Chinese company and they do I guess online sort digital education And so the news that Chinese schools are closing that had given kind of a spike of momentum to some of the companies that are in this space and so that started to pop up yesterday and was continuation today. So that's an interesting catalyst because although it appears that there's no new specific to the stock, in fact it's a, in this case more of a global type of headline. And that did give some opportunities.

That began pre market and then continued with this nice red to green move from 782 up to nine dollars and ten cents or whatever. So for me, relative volume is much more important than total volume, and there may even be times where I'll see a stock on the scan. Let's just say for instance, I don't know. Let's just say mmm ATX just for instance.

So I might see Oh well, it's got 19,000 shares of volume and typically you would say 19,000 shares of volume. That's very light, but you know we pull up the stock. it is up 24 percent on 19 thousand shares and so I might look at it and say alright, well, you know, what does the chart look like? Alright, what is the headline? what's the daily chart look like And how much volume did it have yesterday? Because this actually has high relative volume today? although it's not as high as some of the others. let's see: I'm not sure where if it's even on the top of this list.

I can sort alphabetically. Yeah, it doesn't look like it's even made the cut here on probably the top 100 or so, but in any case, you can tell that it's got. It does have a little bit more volume, so although it had light volume pre-market that doesn't necessarily mean I wouldn't consider it because what I'm looking at is what is the likelihood that this will have high relative volume? How much is it gapping up And the question really is, is this going to be an obvious stock to trade? You know, is this going to be one that people look at and they're like wow, this is this is the one And I Thought that that would be the case with whimmy and it usually is the case that you're the leading gap or the second or third leading gap. Errs are the obvious ones right that everyone's looking at That is just like you know.

And that's important because in my opinion some people would disagree with this. but I think it's good to be kind of trading with the pack or with the herd so to speak. And maybe for institutional traders you know the herd has been focusing on Tesla on that sort of, you know, higher price ranges. this just goes higher and higher and higher and higher.

and maybe on Amazon as it goes higher and higher and higher. higher so as a small cap trader and for traders that have smaller accounts, usually the percentage gap or leading percentage gap or is the one that traders are going to focus on because this is the going to be relatively affordable and have the potential if it works well to squeeze up 20, 30, 40 percent, maybe even higher as we've certainly seen with some of these stocks like PSV Here, it was gapping up 70 percent. Although it's a little on the cheaper side, you already had four point three million shares of volume pre market. So let's look at this on the on the daily chart.

How much volume did it have? Yesterday it had one point four million and today it has 35 million shares. So it is our second highest relative volume stock today. Again, not total volume, but relative volume. So a lot of people are watching this stock today that weren't watching at the previous day and that means because you have a lot of eyes on it that traditional patterns such as the First candle to make a new high will be well respected.

Topping Tail Doji's will be shorted, A breakout over 115 here would be very probably widely considered an entry for a move back up to 129. The volume weighted average price will be well respected. So if you're gonna trade these traditional patterns and use these traditional indicators, the only reason that they work is because people believe in them. People believe the View app is going to provide a level of support.

Therefore, they buy at the View app right and and people are maybe have cautious on shorting right at the View app because it's shorting right on to support. The only reason the First Candle make a new high works so well is because people respect it and they see that as an opportunity. So if you're trying to apply those types of patterns to a stock that nobody is trading and no one has interest in and nobody is watching, you will not get predictable resolution. Resolution to patterns becomes predictable when you're trading the right type of stock.

and that is a stock that has high relative volume. So one of the biggest mistakes that beginner traders make. Well they'll say oh well nu GT Let's look at this. This has, well, this doesn't have a lot of volume, but let's just say they're like oh well, this has a lot of all you just got 1.1 million shares and it's kind of curling up at breaking the V wipe.

Maybe I should trade this. The relative volume on this is a fraction of the previous day traders are not watching this. If you're trading this, you're off in the weeds. You're all by yourself over here because what's mostly trading this I would guess would be maybe high-frequency trading algorithms? Some institutional trading, but not very.

Many day traders are looking at this type of stock today again. American Electric Power You pull this up one obscure stock whose whose day trading this today? Not a lot of people and in the news Recently we've certainly heard I've certainly heard you know Jim Cramer And some of these you know you know will very well-respected people in the industry saying that you know day trading is incredibly risky and it's gonna end in tears for everyone. And Leon Cooper Man and some of these other big hedge fund people are there all day traders. They're essentially just criticizing us as being stupid and that we're buying stocks like American Airlines Warren Buffett Yeah, he was smart to sell it because their balance sheet is upside down, but you know.

Meanwhile, hey, but meanwhile, day traders have no problem buying it as it squeezes up right here, creating this surge from 10 all the way up to $22 right? Hey girl, come on. And I coined that you know obviously to be a little insulting because you know the fact is, although a if someone bought this, you know with the intention of it being an investment and hoping it's gonna go back to $50 and now they're underwater. Okay, that obviously would have been the wrong approach. I mean it's it's back down to the lows.

but the fact is, you know Warren Buffett didn't trade or invest in Amazon And the P/e ratio of Amazon for any logical investor would have said even at $2,000 it was crazy overpriced Right back here, P/e ratio is out of control. and here we go. it's up to 3,000. And so, although stocks can be irrationally strong or weak compared to their balance sheet compared to their book value, which is the value of all their assets, you know.

Warren Buffett Value Investors: They like to buy stocks that are actually trading below their book Value, you know. So their book value is the value of all their fixed assets, all their equipment, everything else. So if a stock is trading below, you know the actual you know book value of the company. That can be a great investment.

Okay, it can be. but stocks can be priced irrationally for very long periods of time. And you know here, you've got Carl Icahn who's been holding a position on Oh X Y for I Don't know. over a year he's got billions of dollars in it.

And you know, look at this thing, it's been, it's been. You know, really not a good. Although maybe it made sense from a fundamental perspective for a variety of reasons. From a technical perspective, it's been week and so day traders short-term traders can capitalize on those opportunities.

And again, I'm not trying to criticize the big investors. They're much more successful than I'll ever be, but they have a different place in the market and they have a different strategy. And I don't think it's really totally fair to criticize day traders or say owed day trading should be outlawed. You know this these because they're so stupid.

because they're buying stocks with, you know, terrible fundamentals or terrible book value. Yeah, well, you know, here's the stock that maybe had good Book value and still drop 70% you know. Or here's the stock that had outrageous had book value that is a fraction of the current trading price but still went up another 50% or another hundred percent. So there are opportunities and that's what we're searching for is day traders.

And so in my opinion, what we have to look for are stocks that have high relative volume that have really strong daily charts and that generally have some type of catalysts to justify the move and then to ride that momentum So we all have a place in the market, you know? And so our place in the market as active day traders is capitalizing on these short-term the short-term sort of imbalances in price and the volatility that we see on a very short-term basis. And it's so for me. I Really don't spend a lot of time reading quarterly earnings or going through all the fundamentals because the fact is, although long term, you would think it'll probably matter short term. As a as a day trader, it really doesn't matter short term.

we have to be focused on technical analysis and so that's what we do. And so I would wager that you know as a day trader I Probably can read very short price action a lot better than someone who focuses just on the fundamentals. But the downside to what I'm doing is that you can't really move in out of the market with you know, 150 million dollars as a day trade. And so that's why those big investors would just say well, day trading.

You know, since its kids play, you know what? What are you making? Two hundred thousand a year? Five hundred thousand a year? A million a year If you're good. that's a joke, right? They're trying to make hundreds of millions and I get that. So we all have a different place in the market. We all come in to the same market, but we trade it in different ways.

We have to have risk tolerances, different account sizes, and different goals. So the set of criteria and my number one indicator for finding a stock that has what I think is homerun potential in the course of like a couple of hours is gonna be very different from the criteria that a big hedge fund manager or whatever would look for for a three month to six month type of position where they're putting tens of millions or hundreds of millions of dollars or billions of dollars at risk. And so of course I would say that my strategy is probably much more appropriate for the average person because it is a strategy based on really minimizing risk, not holding stocks overnight, taking short term trades, getting in, getting out, and so we could have on a stock. a you know, five or 10 minute long opportunity.

You know this has gone from $13 to $20 today. That's almost 50% now. I Didn't trade this one, but the fact is, the relative volume today. let's look at it.

So the relative volume today, on it. Yesterday's volume was 400,000 shares is 2.3 million, so it is four times higher volume than yesterday. This is a bullish, engulfing candle on the on the daily chart, but it has a absence of news and so that would certainly make me cautious. I believe this is one of the companies that we traded a couple weeks ago.

But in any case, so although it's a former Momentum stock which sometimes by itself is enough because traders will say hey, this stock was really strong two weeks ago, right now it's up a lot I'm gonna jump in and so sometimes you know that that can work, but it's It's still gonna be a little bit less predictable in my opinion without that news catalyst. And and now here's whimmy. So coming back up and attempting to break the View app again, that View app is going to be very well respected. This is gonna continue to be the highest relative volume stock on the market today.

It's not gonna get beat out by the end of the day, it's gonna be the highest. What are the obvious levels? The obvious levels on something like this right now would be the high here. If it breaks 8:45 then I would look for a move up to 925. And because it has high relative volume, tens of thousands, maybe hundreds of thousands of traders out there have lines drawn at the exact same places because they're obvious and that's what you want.

You want obvious Because that means what happens there should be predictable Now, of course. Again, sometimes you'll have something that is unexpected and I suppose that happens whatever thirty percent of the time. which is why I'm right, only 68 70 percent. but I'm still right more than I'm wrong.

And it's 100 percent because I focus on stocks with high relative volume. So let me back this up with some numbers for you guys, and just because some you are probably curious. Well, you know. Okay, how much does you really make on high relative volume stocks? So let me log in here.

Alright, so I have my metrics here and this is from like the last four years or so of trading and what I'm gonna do is I'm gonna show you my profitability by relative volume. That's kind of cool, right? So here we go. So this is my profitability by relative volume right there. So that's 3.1 million dollars.

Trading stocks that have at least a relative volume of five five hundred percent would be five times higher than than what's normal 3.1 million. And then this is in like four years of trading. so everything else is on stocks that have much much less relative volume. So where do I make my money by finding the stock each day that I think will have relative volume and I can certainly jump into something you know, like like whimmy on the early side and already see at this point I already had ten times relative volume.

It was already moving in the right direction and so even though it wasn't maybe this high at that point, I was able to with reasonable certainty predict that this would have the highest relative on today And that's where the challenge comes in. because it's not enough to find the stock after the fact. you have to find it before it happens. Now this is kind of interesting, right? Here, This is performance by the prior day relative volume and so what would you speculate would be the reason that we would see this kind of curve Here This is due to continuation, so the majority my profit is on stocks like whimmy or or wafu that have a much higher volume than the previous day.

However, a good portion is also on a stock like this, which would be continuation. So this here the second day I mean this might have been maybe in this area here because this looked like about two times relative volume on the second day, but it certainly wasn't as high as the day over day right here. And then there'll be some instances where it's even less than that. So a Yhs which this one two days in a row.

So I trade it on this day and I trade it again on this day. So on this day the relative balling was actually a little bit lower than the previous day. it was still a continuation set up and it was still high relative volume versus you know, a week ago. So both of the trades would have fallen into this column right here or this.

yeah, this column this section just because they both on both days it had high relative volume versus the you know, month ago or whatever is that basing today's relative volume. Because today's relative volume as a calculation is not based on yesterday, it's based on the average over 30 days right or 14 days I don't know exactly. Again with the time this actually says it's over 50 days which is fine. So but then this one.

so there's that one there and then this one's versus the previous day. So again, that's the cause for this sort of discrepancy here where my performance is always almost always on the stocks that have at least five times relative volume, but not always five times versus the previous day because of continuation setups. So you know that right there is the proof. The proof is in the pudding there that that is the way I find stocks to trade day in day out.

It's by looking for stocks that have high relative volume and again my accuracy. and well you can see right here so my accuracy is 71% right there. I Mean that's pretty good. It's it's not perfect and this is you know day trading and meteorology are the only jobs where you can be wrong 30 percent of time and still get paid pretty well I guarantee you you're not gonna have.

you're not gonna be able do that. As a pharmacist, you can't be wrong 30 percent of time and sometimes give someone blood pressure medicine and sometimes give them you know I don't know Xanax and sometimes give them I don't know, whatever else you know, some antibiotic, you can't be wrong 30% of the time. As a pharmacist, it's not gonna work. You're gonna get fired.

You can't be wrong 30% of time as a surgeon. But in the field of day trading, you can be wrong 30% of the time and still make money. And that comes down to this right here. which is your average winner versus your average loser.

And so my average winners are about a thousand. my average losers are about a thousand. So we would call that approximately a one to one ratio I make a hundred and I lose 100 after to make a thousand I lose a thousand on average so it's about one to one. Those aren't the best metrics in the world.

A really good trader might have closer to 2 to 1 or 3 to 1 average, but once one is okay. So if I make a thousand and lose a thousand, what is my break-even point? 50% So as long as I'm accurate and right more than 50% of the time I Make money. Now if I was. If my profit loss ratio was two to one and my average winners were 2,000 and my average losers were only a thousand or yeah, then I actually would only need to be right 33% at a time in order to break even.

Oops. I gave that 3 an extra little squiggle. but again, it's nice to set the bar low and make it easier for you to be successful. But this is kind of a decision that you have to make because for instance, and this gets, this gets a little bit away from relative volume, but just to touch on it for a moment.

Again, relative volume is my number one indicator for telling you whether or not a stock has a potential to make a big move. But then once I've identified the relative volume now I've got to actually take the trade right. I've got to execute on the trade. So Wafu right here.

This was an entry that I took as you squeezed up right here to do a red to green move. So it was red on the day and then it curled up and went green and as you can see from here, went from about 780 up to 2 8, 825, 850, 875, 9 all the way up to almost nine dollars and 40 cents. Okay, so that was that short-term little squeeze right there. Now you know One of the things with this is there's two ways you could trade this one way and maybe even if we look at this, this little pullback.

So one way would be you know your your long right here at Eddie and you believe with pretty high level of certainty that this thing is going to rip through. you know, 825. So it squeezed up to 810 815 and you sell the whole thing at a 8:20 All right, that's only 20 cents a share, All right. So you made 20 cents a share and then it goes all the way to 9.

You're like, wow, I left a lot of money on the table, but it's not as hard to predict a 20 cent move. And so if you took profit every time you were up 20 cents, you know what. your accuracy would be pretty high because there'd be enough times where it did go up 25 or 30 cents and then came right back down to break-even like it did kind of right here. First one-minute candle to make a new high well respected.

it pops up, it does not break back over the highs drops back down, but if you were aggressive, you still could have made money on that trade. And you could have made money on this trade right here. You could have been profitable on both of them. If you were quick about taking your profits, the result would be very high accuracy, but lower average Winners therefore lower profit or loss ratio.

And the other way would be to say I'm gonna buy this and I'm not gonna sell it at 8:20 I'm gonna hold the whole thing looking for the break at the pre market high of 850 and I want to break that level so I'm not gonna sell anything till it hits 9. Well for every one time that it goes all the way from 8 to 9, you get a full dollar share. There's probably gonna be 5 other times that it goes up to here and then comes back down to break-even and so when you swing for bigger trades, your accuracy goes down because you don't take the quick profit off the table when you have it. and so although your profit loss ratio goes up, your accuracy goes down and so at the end of the day I feel better having high accuracy because it makes me feel more confident and even though it hurts, my profit loss rate show a little bit.

My biggest winners: 38,000 my biggest Losers: 18,000 you know I mean it's I don't like having really big losses but unfortunately it happens sometimes and then that draws down my average losers to the point where I really only have a 1 to 1 ratio but again by focusing on the right type of stocks, the setups that I consider to be predictable will respond in a more predictable way if you told me right now. Ross Starting today, you can't trade any of the top ten leading relative volume stocks each day. What would that do to my strategy? I Would have to start making the money on on these ones down here I Would have to start trading stocks like Apple You know I mean I would have to start trading stocks that have a decent amount of volume even though their relative volume is low and you know what's gonna happen most the time you try to day trade stocks like these Choppy Choppy Choppy. So again, for a lot of the students that I've known over the years who have struggled, a big part of it has been that they start focusing on stocks of companies or shares of companies that they know and are familiar with.

and they like the idea of trading Nike or trading app or trading Facebook around the cases, but without that relative volume. the patterns aren't predictable and so technical analysis really doesn't work in the way that you would hope it would. So relative volume leads the way as far as in my opinion. Technical indicators for helping predict potential homeruns.

Something to work on her percent of time, but for me it works more often than it doesn't So I hope this has been helpful for you guys. This is something that I kind of want to work on after seeing some comments about. You know how I find these kind of big movers everyday. So the answer is I look for the relative volume and even though there's not an actual metric for relative volume, I Could add a relative volume column here.

nothing you would just show blank pre-market I Can still with a reasonable amount of certainty, just eyeball it and look at the daily chart. This trade with 1.3 million shares yesterday and today pre market and 915 already has 12 million. Yeah, that's high relative Olli Alright, so that's really all it is. That's the first step: finding the right type of stock to trade and again for those you guys that are watching this that may be watching on Facebook or YouTube if you want to actually learn not only how to find the right type of stock to trade, but where to get in and where to get it out.

That's what you'll learn in the Warrior Starter and the Warrior Pro classes. So keep learning, keep studying. and as always, if you have questions, feel free to leave them below. And that right.

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