So in this episode, I'm going to share with you the Bear Market Strategies that I've been trading during this most recent drawdown. Now listen, this is part of trading. There's ups and there's downs. and as a Trader you have to be able to Pivot and adapt to the market you're in.

You can't just stubbornly trade the way you love trading if the market is not supporting that. So if you're a Trader who's kind of hitting against the wall, you're running into a wall. It may be because you're trying to trade a strategy of the Market's not supporting and that's very common when you have downturns in the market. although it can also be common if you have a swing back up in the market and you developed a strategy specifically for trading downturns so you have to be able to adapt.

So in this episode, I'm going to share with you the Bear Market Strategy that I'm trading right now. This is the best that I've ever done trading during a bear market. And it's not just because of the setups that I'm taking or you know the particular stocks that we're trading more than anything, it's because I've been able to adopt the discipline to be patient because this is one of the challenges and I had to learn the the hard way in a bear. Market You've got a headwind.

You will not see the same level of parabolic momentum, these crazy extreme moves that you see during a bull market. So during a bear Market you have to set lower expectations. You have to be content with hitting smaller base hits. And if you're not disciplined enough to be able to do that, you're going to find yourself spinning your wheels Two steps forward.

Two steps back. Two steps forward. Five steps back. And that's not a way to make money.

So the Traders right now who get through the bear Market or those who are learning perhaps you those who are learning a trade during a bear Market If you can succeed during a bear, Market you are setting a really solid foundation for the future because the fact is, the only traders who make it through Bear Markets are ones that have discipline and that discipline will allow you to thrive when the market starts to heat up. So I hope that this inspires you I hope it motivates you to continue studying. This is a class that I taught live about a month ago and it was really popular. You everyone loved it! I Got great feedback from it so I wanted to Premiere here on YouTube for you guys so we're gonna do something special during this premiere for every thumbs up we get.

I'm going to donate a dollar to charity for every share we get I'm going to donate two dollars to charity during this Live premiere. so please hit that Thumbs Up Hit the share and I'm doing something extra special for you guys. There's a link right down below you can check out now or anytime during the episode. A two-week trial over at Warrior Trading two weeks to trade side by side with me.

So check out that link for the two week trial. You're gonna have access to the chat room the ultra low latency broadcast ad free real-time Market Commentary: You'll have access to the scanners that I use the news API and you'll get a sense of the way I Trade in real time. You'll get a sense of whether or not you like the way I trade. You like the strategy, you like the community, and you like the tools, so give it a shot.

I Think you'll really enjoy it. There'll be a link right down below to check out the two week trial, and let's go ahead and jump in to Bear Market Strategies: Let's get into it. Cool. Okay, well why don't we? uh, go ahead and jump right in.

this. Workshop is for those of you guys trying to figure out how the heck to trade through a bear Market Day trading in a bear Market Listen, if you're going to be a day trader and you want to be at this for the Long Haul Sooner or later, you're gonna have to trade through a bear market. So if you're watching this right now, of course, live, it's because we're in a bear. Market If you're watching this on the replay, maybe it's because we've entered another bear Market Or we're still in this bear Market I Will try to record this.

uh, study session. Uh, as long as my internet doesn't uh, break in the middle of this stream, the recording should be fine and I'll be able to give that to you guys. So I Thank you guys! Uh, who are watching on the replay? Everything I'm going to talk about today is still just as valid as it was the day we um, we had this session. For the most part, the strategies I've been trading are unchanged over the last 10 years with the exception of you know, a little bit of adapting to current market, but the strategies really are pretty much the same.

So and this is especially for those you guys that wake up every day pumped, excited, ready to have an awesome day of trading and then fall flat on your face as you get chopped up in another bear. Market You guys, you are my people. This is you right here. Every single one of you I Know this is you.

You think you're gonna come out hot, have a great day? Boom on your face. Everyone here. You guys are the JV team. You're You're not even the JV team.

You're not even second string. All right we are the bottom of the barrel. We are all scraping the bottom of the market to try to do the best we can to make a little bit of money and you'd think it wouldn't be so difficult. but uh, obviously as we all know and as we have all proven in our own accounts, this is some really hard stuff.

So some of you guys are, um, you know you, you are a real Savages You will just put yourself through the ringer and you probably won't take any of the good advice. I'm going to share with you today because you're just uh, you're You're out to make it harder than it has to be. But there are a few of you here today who will apply what I am going to share with you and this could be a real game changer for you. So really, take it to heart.

This is important. Learning how to trade through a bear Market is a criteria for long-term success as a Trader And here's the here's the thing. um, being successful is about following rules and about having the discipline and the aptitude. I will give you the rules I will give you the blueprint of how to trade I Could tell you right here today how to day trade.

You have to bring aptitude and you have to bring the discipline to follow the rules. And if you don't bring those, you're never going to be successful. All right. So I'm gonna get out.

You know, give out as much as I can, but you've got to bring it also. All right. So let's go ahead, let's get started and by the way, you can call me Coach. All right.

School's in session. This uh class today is going to be like I said 90 minutes, maybe two hours long. Um, I'm gonna give you a chance to vote on the class that I'm going to teach today. Um, but I also have a little spin on that because I have something that I'm definitely going to include which isn't on um, the topics to vote for.

I'm also going to give you guys a new member coupon code. some of you guys are going to decide. hey this is the right place for me I Want to keep learning from Ross This is an awesome day and let's keep it going. So I'm going to bring on 10 students to work with me over the next year.

It's the beginning of a 90 day long program, so I'll give you guys a link where you can join. All right, So that will be first come first serve. All right! So bringing on 10 Traders today a couple bonuses: Number one: I'm gonna give you guys a free outline of my small account day trading strategy and I'm going to give you a copy of my best-selling book titled How To Day Trade Where's The Copy I Always keep a copy on my desk but well I don't know where it went anyways. Uh, so here's the deal.

the Market's dropping and I'm making money I Can't tell you how good it feels to be the guy who's making money while the Market's dropping and during this last bear. Market I have traded better than I have ever traded before in a bear Market You want to know how I feel during a bear Market when I make money? This is it. Oh yeah oh it feels good. Oh my.

God another Green Day What Are you serious long-term investors losing money? Not me? Oh yeah, Day trading in a bear Market Now you might not think it can be done, but it can I have a day where it was the biggest red day that we had ever seen in the market and you know who was Green this guy right here because I'm trading volatility. All right. So this is the power of day trading. This right here is a stock.

It was up 80 percent on this day I was up fifty thousand dollars. The stock goes from 650 up to nine dollars. You will have events like this in Bear markets. You will have events like this in Bull markets.

All right. this is not just a bull market type of thing. You see it in all markets now. One of the things I want to share with you is the fact that I am actually a profitable Trader these are over.

This is over 11 million dollars in gross profit, nearly 20 000 trades Accuracy: 69 percent I mean why am I sharing all this with you? What's the big deal? It's important that you know the person you're learning from is qualified. Here's a guy who made a video of how to gain one million views in just three days. He's got seven views and the video was uploaded two years ago. All right.

So I'm not gonna spend all my time telling you how much money I've made, but I want you to know beyond a shadow of a doubt that my gains are real and this is actually right here. Um, this is my, uh, audited, uh broker statement. Let's see. I'll go full camera view here.

This is my audit broker statement showing a 1.6 million percent return. When I began this account with 583 dollars, it was January 1st 2017. the account has over 10 million in gross profit. all right.

Now it's important that you know the person you're learning from is qualified. I've got my broker statements on the website and this is the audit right here showing you that those broker statements are the real deal. So I'm not saying that there's a guarantee you'll make money. In fact, I'm going to explicitly tell you that my results are not typical and that there is no guarantee that you will make money whether you learn from me or you trade on your own.

All right, trading is risky and let me just throw up a little. um, a little pull here. I'm gonna I'm gonna throw a little question at you guys. Um, so I'm gonna ask you is day trading risky and the answer is yes or yes.

Go ahead you see if you can fill that out, this is the real deal guys. I'm not going to tell you that trading is easy I'm not going to tell you you're gonna make a million million bucks overnight I'm not going to tell you you're gonna be a millionaire I Will talk during this Workshop about the success that I've had and I will talk about the success that some of the traders that are part of the Warrior Pro Community have had. I'm very proud of those who have been successful. In fact, one of the most recent student who's made over a million dollars who got a million dollar badge.

he did something really, really important in the way he approached trading that I'm going to share with you guys today because every single one of you can take a lesson from some of the things that he did right. But this is the real deal. Trading is hard. It is hard.

I mean it's not. It's not being a roofer in July but it's you know. pressing buttons. that's easy.

look I Just press buttons. Making money. Trading is hard. All right.

That's what's hard. So I don't want to Discount the fact that it is difficult. um I Want to be very upfront with you and tell you that so all the statistics tell us that most Traders lose money. All right.

So this class is for uh, beginner and experienced Traders alike. I'll cover the Core Concepts as part of setting a good foundation for you to understand how I approach trading in a bear market and we're going to talk about Advanced strategy development. All right. My job is to teach you financial literacy and the language of financial markets.

This is the tip of the iceberg. There's a lot to learn, but we're gonna get started here today. There's no better place here than today to jump in. So why don't you guys tell me which of these chapters you want me to teach I Said I would teach one chapter from the warrior Pro curriculum so those not already familiar and you can just call out the one that you want me to teach the Warrior Pro curriculum is a 20 chapter curriculum.

This is it right here. So this is Um, chapter 8. Momentum Day Trading Strategies Long set up number four, the micro pullback that's Slide 732. This goes all the way down to Slide 1400 right now.

And um, my thought was that I would probably because of course we're catering and sort of focusing this study group on trading in a bear. Market I Want to make sure that you know I'm sort of approaching it from that perspective so we're not going to talk. It doesn't seem like there's a lot of interest in setup five consecutive candles and five consecutive candles. so I'm probably gonna leave that alone right now.

Seems like there's a lot of interest in the ABCD pattern. Um, and you know what I also want to do here is and there's a good amount of interest in the bull flag. What I would like to do is I'm going to put up a poll to ask uh how long you guys have been trading. This is going to help me also get a sense of the traders that are in this study session today and make sure that we're sort of catering it, um, to the right you know audience.

It seems like we've got an interesting split so far. um, sort of high on the more than a year and a little higher on the brand new and not as many people kind of right in the middle. which is, um, actually kind of interesting because it's sort of opposite approaches for teaching brand brand new beginners versus those who've been doing it for a while. Um, so okay, no worries, no worries.

Um, okay, so that that is that is helpful for me. All right. So a lot of a lot of folks interested in uh, parabolic as well. Okay, okay, um, all right.

I've I know I I have what I need? um I'm gonna do a little uh Mitch map mix match here um but it's good, it's good I think this is gonna work So before I jump into um the lesson I want to give you guys a little bit of you know I'm not going to tell you my entire history you know of my life but I want to share with you a little bit of how I got to where I am right here today. Um, you know it's it's the story of of your coach. It's an inspiring story so let me share it with you. My family has a fairly long history in the stock market.

Um, my great-grandfather uh well. his name was Lincoln and he actually was working on the floor of the Stock Exchange 1929 during the Great the the Great Crash. It's it's kind of a, uh incredible story because he was on the floor, he was just getting started and he was brand new and he walked like everyone was out of a job. That was it.

He was out of a job. He lost the money that he was there. you know, However, it worked. I've heard this story through my aunts and uncles and so he ended up going into the insurance business and and pretty much being very very risk adverse for um a verse for the rest of his life he was not interested in in the stock market.

Uh, when I was going through Middle School 1997, 98, 99 It was the.com bubble and I was fortunate that the teacher in the Middle School it was a Montessori middle school. so not maybe a traditional middle school. So the way this worked, there was one teacher for the whole you know you didn't go to the different teachers, it was one teacher and he was really into stock market. So what he decided to do was he actually created a um a whole Um curriculum semester around paper trading and so every single day we would partner up.

My partner was named Cooper and he and I would partner up and we would choose different stocks that we were going to be investing in and we had a paper trade account and he had the teacher Kevin had all the stocks up on the board and he would update the prices every single day. and uh, at the end of that semester we went down to the New York Stock Exchange as part of a you know, a celebration at the end of the semester. So I I in a way I started getting interested in trading at a very young age Middle School which is, you know, it's quite young. A few years later, um, in high school my friend Ben that's been uh, third one in um right there.

He made about fifteen thousand dollars trading a penny stock and so uh, that summer I opened my first Ameritrade account and that was actually before they merged with uh TD Waterhouse it was just Ameritrade at that time and I have some of the old statements over here from Um when they when it was just originally numeric trade account. It doesn't really matter anyways. Um so I traded a little bit in high school that was with real money but it didn't really make money. My Approach at that time was I bought some shares of Exxon Mobil I bought some shares of Pfizer you know this was like 2001.

I bought some shares of a couple stocks that I knew I had about a thousand dollars to play with and I didn't really make any money. By the end of the summer, none of the stocks had really done anything and I sold out of positions for flat. Ended up buying a 1990 Volvo 240 station wagon for a thousand bucks. I ended up selling that car.

um, about five years later for I think it was fifteen hundred dollars which was a pretty good Roi when you think about it was a 50. Improvement Uh, so a very sturdy car, but in any case, um was out of the market. This is my high school graduation uh, my mom and my dad and at this point finishing uh High School getting ready to go off to college I did not know what I wanted to do in college I didn't even really want to go to college, but my mom was pushing me. She was like Ross you got to go to college, you got to go to college and so I ended up going to college and I did about um, three semesters of college before moving home I moved home.

my father was diagnosed stage four lung cancer less than a year to live. He said he's already metastasized to his brain and so I was 20 and 19 20 years old when that when he was diagnosed and so I lived at home I pumped gas at the Sunoco gas station I drove dead to chemo and radiation therapy and I sort of changed my my whole view of what all this was worth. You know, my dad never got to really have a true retirement. He died at the age of 61.

that was the same age his father died so they both died at age 61. my grandfather died of a heart attack the day after Thanksgiving and my father, um, you know of lung cancer at 61 years old. So neither of them really got to live a retirement and it kind of made me think that, um, you know life doesn't always work out, even when you're not trying to do what you really want to do. so you might as well try to do what you actually love to do because if it, if there's no guarantee it's going to work out, might as well at least go for the shot that it could work.

So for a little while I lived down in New York City and I was pursuing architecture and design. I did finish my four-year degree and um I I was sort of falling into the rat race and I thought that maybe you know this was the right approach and this was 2008 2009 And of course we had the recession right? So I'm coming out of college at the beginning of recession, which is the worst time to be coming out of college. No one was hiring people with master's degrees. we're applying for unpaid internships.

so I ended up moving uh back home to Vermont and when my younger sister turned 21, I inherited a hundred thousand dollars from my father and so with that money I thought to myself, uh, I'm up in Vermont There's really no good employment prospects, but maybe I can trade this account and even if I only make you know a thousand dollars a month the cost of living at 23, 24, 25 years old up in Vermont it's not that high. So at that time I thought that I could maybe make a go of it and I set up my trading station. you know I had a couple computers kind of pieced together, a couple different monitors pieced together. It wasn't fancy, it wasn't anything you know high tech but it was enough.

It worked well. You know the problem was um I really didn't know what the heck I was doing I didn't have anyone to learn from I was just trying to piece it together a hundred percent myself and what ended up happening was I hit rock bottom So the hundred thousand dollars that he gave me over the course of two years I I spent it on cost of living and what I didn't spend I lost in trading profits trading losses so I lost it all the way down to having just my trading account but it accumulated over thirty thousand dollars in credit card debt so that for me was rock bottom and um you know every day I would sit down I'd be excited to trade and then I couldn't get out of my own way. it was like it was like clockwork and I'm you know it's like this shouldn't feel this complicated. um you know, let's see where.

Where's this. Where's this guy? I had a good one here. Where where'd he go? Um, here it is. This is me every day I can't even walk down the sidewalk I mean that's how I felt when it came to my trading.

It was like every single day and what ended up happening was I really started snowballing I started to compound the losses started to accelerate. This was me again. Are you kidding me again? Boom. Three thousand dollar loss.

Four thousand dollar loss again every single week. Come on guys, it doesn't oh how my language. but this is what kept happening I mean it was like time and time again. and listen, it's important to get knocked down.

It's important to be able to get back up. that is. That is. part of trading.

But then you know on the other hand, you've got to learn from your mistakes. and this was for me I just couldn't get out of my own way and so my my rock bottom was having a five thousand dollar loss the very beginning of a new month and that put my account below PDT level. So I couldn't trade in it. So at this point now my account's got like 19 000 in it I can't day trade in it I've got thirty thousand dollars of credit card debt and I I'm I'm like what am I gonna do and this is where desperation starts to set in.

Now for me, fortunately because my account was locked out I couldn't trade and so what I ended up doing was I reviewed all of my metrics and this was really important and this is something that we'll talk about during this uh, study group. You have to know your metrics and so by reviewing my metrics I actually discovered and I'm so grateful for this. I discovered that there was a pattern in my training and this is what this data was telling me I You know as of right now, I've got almost 20 000 trades, 20 000 individual trades that you can review I Mean it's so much data. you can analyze your metrics, your performance and that's what I did.

so you have to be willing to adapt to what the market is telling you. Patience isn't always the optimal way. Sometimes you do have to change directions, being patient, and just you know sticking it out that wasn't working for me, you know. I I was I was struggling and and here's the deal.

Trading is hard to learn, but once you've got it, it doesn't feel hard in the same way as when you're getting started. It shouldn't feel like every single day is a struggle. That's the realization. it shouldn't be a struggle.

This can be easier. I'm making it harder than it has to be. and so that's that hitting of rock bottom and then waking up and being like wow, Okay, let's take this back to the drawing board. Let's look at this a different way.

And so what I discovered was that in fact, my biggest winners all had something in common. My biggest winners were all on stocks that had high relative volume and we're gapping up. That was really important now. if I could consolidate all my trading into that, this is what this is what you get and this is what happened of over 10 million dollars in gross profit.

all of it is on stocks up over 10 percent. which you can see right here. This is right in here. It's up over 10.

I'll turn on my um, my laser pointer. So up over 10 is right here and this is stocks that have five times relative volume. So now we've got a sort of reverse engineer for you guys. How do you actually find those stocks? All right, How do you find those stocks so you can produce metrics like that now? Obviously, there's no guarantee I'll produce metrics like that, but produce metrics where your winners are Consolidated within one sort of type.

So now I'm so fortunate to be able to share the strategy that I trade every single day with Traders all around the world. And it's it. Makes it more fun to learn to trade. You don't have to be doing this on your own.

We've got over 2 200 testimonials over on Trustpilot. probably more by today. 5 92 percent giving us five star so that doesn't happen by accident. That's because we've designed a really thorough, comprehensive program that 92 percent of the people that go through it say this was awesome.

All right. So I'm not gonna. um, you know, read every single one of those 2 000 testimonials. but I just want to reiterate that the person you're learning from right now is qualified to teach day trading and that if you want to take it a step further and actually become a member of the Warrior trading community, that you're coming to a place where 92 percent of the people in the community have said through Trustpilot that this has been an awesome fit for them.

All right? So um, you know the choice is yours? Um, do you want to make this harder than it has to be and this this is a good one? I'm going to show you that one in a second. um I I have I have another one. it's so good. I'll I'll I'll I'll get in a second.

You want to make this harder than it has to be or do you want to go the easy way? And this is just to me trying to reinvent the wheel or trying to learn from a strategy that someone is already trading every single day? So um, we're going to go ahead and jump in here. um I've got the micro pullbacks right here and what? I was kind of thinking um I think I might do this a little bit differently and kind of mix in two sections. We've got um, half dollar whole dollar entries that one I don't think I'm going to focus on that. We've got our ABCD pattern which a number of you guys were interested in.

I think what I'm going to do is I'm going to start with the first pullback on the bull flag and then we can do a brief discussion of micro pullback and then we can do a little bit of ABCD because ABCD pattern is basically you have the first pullback. it then fails and then it continues higher. That's sort of the way it works. So now let's go ahead and jump in here.

Uh oh wait. one second first I Want you to promise me that you won't throw hard-earned money into the market before you have first proven that you can make money by trading in a simulator? All right. So um, this one, uh, this was the one I was. um, so look at what happens to this guy's head now I want you to think about this.

This is what it's like when you trade with real money when you trade with real money before. Oh oh oh what do you think is going to happen to his head and his like brain area? Whoa. Close call. Okay, well, let's not risk it.

right? when you trade with real money and you don't know what you're doing, you are setting yourself up for failure. Seriously, you don't have to do it that way. So many people do it that way and you don't have to do it that way. So I have to ask you guys a really simple question.

which is, um, how bad do you want this? Because if you really want this, you will be patient and you'll be disciplined. If you get desperate, you say I need to make this money next week I Need to make this money by the end of the month you will lose I Guarantee you. So if you really want this, be patient, be disciplined, pay your dues, and in a bear. Market This is the best time to be learning because if you can make money in a Bear.

Market you are setting a really strong foundation for when the market heats up and when the market does start to heat up, you are ready to put the pedal to the metal and scale into it. Now, if you start learning when the Market's hot, you're missing out on that opportunity because you're not going to be able to fully capitalize on it because you're new. So you are starting. You are learning right now at perfect time.

Okay, Um, so I want to talk about risk management? Um, let's lay the foundation here for um, the for trading in the Bear Market By talking about risk management, trading is risky. All right. we understand that. But let's think about how this works.

So this is a table as you can see right here and it's comparing risk and reward. And so if you risk a dollar to make a dollar, you have to be right 50 of the time to break. even right. That's your Breakeven point.

Now, if you risk a dollar to make two dollars, you actually only have to be right 33 percent of the time in order to break even. That means you can be wrong seventy percent of the time, 65 percent of time. Whatever. and you can still make money.

That's incredible. That's because you understand statistics now what a lot of beginner Traders do And you might be able to relate to this is they hold losers too long and they sell winners too soon. If that is something you do, you hold your losers too long and you sell your winners too soon. I Can guarantee you you will have a negative profit loss ratio.

You win a dollar on average, but you lose three dollars. If that's the case, you would need to be right 75 percent of the time in order to be profitable. Now if you look back at the metrics that I showed you earlier on the over 10 million in gross profit, you would notice my accuracy is 69 percent 69. That's great.

that doesn't tell the whole story. You can have 69 accuracy and still lose money if you have a negative profit loss ratio. Or you could be right 69 and make 10 million dollars, right? So it's how do these numbers come together. and this is what being cognizant of risk management allows you to empower yourself to be successful and make money, even if you're not right 100 of the time.

All right. So and here you go: I Have this slide here again. So 69 accuracy right there you can see my average winners and average losers are are approximately the same. They're roughly the same.

They could be a little bit closer, but they're pretty close and Casey says me too. I Sell too quick. Listen, it's a fear-based It's a fear-based habit. It's a behavior driven by fear.

It's the fear of losing the small gain that causes you to cut it and tell and sell it and take the profit. And inversely, when you're in a loser, you don't want to have a loss. And the only way that it maybe won't turn into a loss is if you hold it and then it goes back up. So you keep holding it hoping it goes back up because it's not really a loss until you press the sell button.

There's always hope until you press the sell button. so you keep holding the sort of. Our human emotions are not designed to trade the market right. The market Humans have been around a lot longer than the stock market.

We have to adapt our mind to trade the stock market successfully because the way we are naturally wired will cause you to lose money. So this is about it's not. And so Marwin says it's about controlling emotions. That's one way to put it.

But on the other hand, I would say that it's difficult to control your emotions. You can't just not be angry. You can't just not be frustrated. You'll feel that it's developing awareness that I'm feeling pissed off right now.

That means this is a good time for me to walk away and stop. Trading That's what it's about. That's the best you can do. You will still get emotions I Still get them I Still get angry I Still get excited I Still have all the emotions.

but what? I've gotten better at is learning to recognize their influence in the way I trade that way I can cut off real quick and get out when I'm starting to feel myself getting what I call emotionally activated. All right. So uh, I've kind of laid out profitability in terms of Three core components which I'll just share with you briefly here. the Three core components are: consistency, profit loss ratio, and accuracy your profit loss ratio I Just talked about your average winners versus losers and your accuracy is your percentage of success over.

you know X number of Trades how many were winners the third was consistency. Now sometimes Traders say Ross which one should I focus on and so I'm going to take this as an opportunity to get up the Whiteboard Here this is. this is kind of. There's different ways to approach it, but this is what I would focus on Focus on a quality.

a plus plus Triple A Setups The best setups. focus on trading. the very best goes up and you know what happens when accuracy goes up. You have fewer losers.

so you know what improves your profit loss ratio because your losses are smaller when they happen because you're focusing on the right type of stocks and you know what that then leads to Consistency improves. Consistency goes up. So where do you need to start? Right here And this is true. Whether you're in a bear Market or a bull market, Focus on best quality setups.

Now that's a great question. Dennis Says which setups are best Dennis You are sending us right into the next section. I Couldn't be more grateful. What a perfect transition can we get? Dennis here every time? I Have a study group I Created a process for finding the right stocks each morning.

So as I mentioned, the realization that I had years ago in my training was that my profits were from stocks that were up 10 percent. Okay, so well up ten percent That that's easy, right? So just have to look for a stock that's up ten percent. Boom. Done.

Okay, Well, it's not. It's more than that, though. it's a little bit more than that. It's it's up ten percent.

and then it has the potential to keep going up. So so what else is it all right? So in order for a stock to have the potential to go up 20 to 30 percent at a minimum, right? there needs to be an imbalance between supply and demand. My biggest winners are almost always sharing similar Supply Demand Care characteristics. All right.

So this is an imbalance between supply and demand. When a stock goes up, uh, more than 10 and when you have five times relative volume, it's showing a very high level of demand. Okay, so this is the scanner system that I've actually I mean this. It's funny, you wouldn't think this would take years to figure out.

but when you're doing trial and error, this slide right here took me years to discover if someone had given me this on day one, when I started day trading I Can't tell you how much it would have sped up my learning curve. So these are the tidbits that you guys should be writing down because: I wish I had known this stuff when I got started. So in order for a stock to go up 20 30, these are the indicators of a high Supply demand imbalance. All right, High Demand low.

Supply So number one, we need five times relative volume. All right. So let's switch over here. so I'll just take this one off.

Well I don't need to write it down. We've already got it right here. So but let's let's kind of talk about how this works. Let's talk about why this works.

So we're looking for a stock that has a potential to go up 20 30 percent, right? Let's just think sort of outside the box on this. So a stock goal goes up 20 30 How does this happen? Why does this happen? Why would a stock go up 23 one day? Why would it go up 100 one day? There's probably news, right? Okay, so some type of news event. Number three: There's a news event moving the stock higher. We sometimes will call that a fundamental Catalyst There's a catalyst.

Okay, the stock should have five times relative volume. Well, what would what would make a stock have five times relative volume? A stock is going to have five times relative volume if there's something really exciting happening with it today. Which means it's got news and it's already up. It's already moving.

So the way this and this is really I mean this gets into some really deep stuff that we're not going to have time to get into today. But for those of you that become Warrior Pro members we'll talk about in more detail. This gets into Algo training and being able to scalp. Algos So what ends up happening is news comes out, News hits the Pr news, hits the wire at 9am 9.

A.M News hits immediately. Algo reads news and instantaneously initiates buy. they buy and they pull sell orders. So what does that do? All of a sudden you have a level two like this.

They start pulling the sell orders, they start hitting the bid, and now you've got an imbalance. The stock starts moving up fast. Now it starts hitting High a day Momo Scanners starts hitting High Dam Almost Scanners as it's moving up. Boom Boom Boom boom boom.

Now you have retail Traders They're jumping on and this is now accelerating and moving faster. It starts with an Algo spike a squeeze and then we jump on and ride that momentum. It comes back to the news. But here's the thing.

it's not helpful. We I mean we have a news feed that we use a proprietary news feed that puts news headlines in our room. but the fact is, news is coming out all the time. Okay, so just listening to news it, you know you could listen to news all day long.

In fact, we need to use these scanners because we need to see something moving up. So the scanners are the radar. So I have a development team that I hire. these are coding people.

They developed this. They built this Center for me. we subscribe to Market data. Okay, so what we want to do is we want to get Market data basically at the same time that those high frequency trading algorithms are getting their Market data.

So we all subscribe to Market data. and there's this big competition about co-locating the servers. so you're getting Market data at the same time as everyone else, right? There's even like having the same length of fiber connection so everyone's getting the same sort of Level Playing Field but it's never really level. You guys know that it's not level, but we do everything we can as a as a retail Trader to kind of get our Edge So we have a market data vendor.

We get the market data and then we process it in our own servers and we are looking for stocks that are moving up quickly right now. And as a warrior Pro All Access member you guys have access to the same tool that I use. I've made it available to you guys. So and that was one of the nice things is being able to have a development team build this out for me and then share it with you.

So we get this news. We get the stock squeezing up. We see it starting to move higher and then immediately we see, okay, it's got a news headline. It's already up 10 percent.

The stock is between 1 and 20, which is only important because those stocks can make bigger percentage moves. A one dollar stock that goes to five bucks is up for 500 percent. A 50 stock that goes up to 55. It's up the same five dollars a share, but it's only up ten percent, right? So lower price moves in a percentage Gainer sense faster.

Much more attractive for retail traders who are often trading with smaller accounts. and then we've got the supply side. Less than 10 million shares available to trade? That's preferable. So when a company does an IPO they sell a certain number of shares onto the market.

Companies that sell fewer shares have a lower level of Supply. So you know Tesla is a is a really big company, but they haven't sold nearly as many shares as a company like Bank of America. Some companies out there sell a lot more shares to raise money and and others sell fewer. So companies that sell fewer.

shares when people want them. you know boom boom boom it starts to move up up more and more and more and more. There's just a a limited level of demand. Now at the end of the day, you still have the market cap equation which is number of shares and the price that it's trading at.

And by the way, if I'm getting a little over your head, have faith This is all stuff that first of all we cover in a lot more detail for Traders that are part of the curriculum. and there's a lot to learn here. So I don't want you to get overwhelmed, just soak it up today. And if you're if this stuff is interesting to you and you're like I want to keep learning, then keep learning.

It's like learning a new language in a way. I mean there's there's a lot here to learn. There's a lot to unpack I try to make it pretty clear, but uh. anyways.

So um, you know the the fact is at this point for me, finding stocks to trade is no longer a struggle and that's I mean that's really a a big deal. So I find these stocks to trade every single day. So circling back to Dennis's question, how do you find what is a quality setup We're gonna talk about the setups in just a second when we get into the actual Um curriculum from Warrior Pro But in terms of the right type of stock to trade, um I have it on the back of this so we can refer back to it. we're looking for 10 at least price between 2 and 20 120 relative volume Five and higher news: Catalyst Float under 20 million 10 Millions Preferable Okay, so this is this is the general criteria If a stock right now doesn't meet this: I'm probably not going to trade it.

Okay, now it might meet like three of these, but I want to meet all of them, especially in a bear market, right? If we're focusing on, you know, AAA a quality a plus Setups: They should have all of these. so if it has, you know four of these. but the float is like 100 million shares. Well, it's probably going to be a deal breaker if it has everything, but it has no news.

it's going to be hard to trust. I might still take a couple trades on it, but it's gonna be hard to trust and you know I I probably shouldn't trade it at all. Okay, so if it's got all of this, but the price is 50 a share, that's gonna be too risky. so it's got to have everything.

And in a bull market, you might see a stock that has everything and you might see five of them a day in the bear. Market You might see five of them a week so the opportunities are still there, but they're a little fewer and further between. All right. So let's go ahead and jump into the class.

Have I lost? You guys? Are you guys still with me? Does it sound good? All right? Um, this is some of you guys. This is where some of you guys are right now. You're like oh my God done I'm out I know it's a lot. Listen I know it's a lot I know I know this is some heavy no pain, no gain right? Okay, all right, let's keep going.

Okay, so uh, all right. so I'm gonna back this out here I'm going to put this up here so I'll bring this back we'll I'll show this to you um in a in a few minutes. All right? So now um, let's go over so let's go, let's go full screen on the bull flag. So uh so what I want to do here is um I'm gonna kind of play this out for you for a second.

So this is the this is a bull flag pattern. So for those of you guys that are you know again, like beginning of the learning curve which was kind of a good number of you. we're using Candlestick charts All right. So the reason we're using Candlestick charts is because a Candlestick communicates four pieces of information: the open, the close, the high and the low.

So really super quick. Candlestick 101 This is a Candlestick right here. and we've got the open, the close. So that's the close, that's the open, that's the low and that's the high.

All right. Now, if it was a red candle, it opens at the top and closes at the bottom. Those are flipped. but these are still the high and the low.

So we like candlesticks because they communicate Market sentiment. Doesn't it make sense that a candle that looks like, um, that looks like this communicates something different than a candle that looks like this, right? Clearly, those are sending a message. So this is pattern recognition and this is what we can begin to do is we recognize these patterns and so in the context of a bull flag, what we have is a stock that is quickly moved higher. So these are our candlesticks moving up.

Okay, now it starts to develop a pullback like this and this is the important place to start watching it. We will find a stock doing this right here as it's going up on our scanners. Scanners are the radar that we use so each each one of these dots is the stock hitting the scanner. so we're going to pull up the stock we're going to see.

Okay, this stock is moving higher right now. it's on our scanners but I don't want to chase it I Gotta wait for a pullback and so this is the bull flag pullback right here. So we wait for a momentary pullback. Now, the interesting thing is, this could be on a 10 second chart.

This could be on a one minute chart. It could be on a five minute chart. You could trade on a 15-minute chart. You could even trade it on a daily chart if you wanted to.

The pattern occurs in all time frames, so it's up to you which pattern or which time frame you prefer to trade on. I am primarily using one minute in five minute, but I am also applying this to a 10 second chart. So we've got our micro pullback and during this time where it's pulling back I'm going to be watching it closely and my hand is going to be on what button the by button. So I'm ready to tap that buy button the second.

I see a candle break that price right there. that dotted line the second this stock breaks over this level. and so what I'm going to have to be doing is I'm going to have to use my charts to be constantly checking what was the high of this candle? What was the high of this candle right here? What's the high of this candle here? Now, if this candle high is three dollars and ten cents, then on my level two window when I see uh, 307 by 308 and then I'm seeing green prints at 308 I'm going to start thinking to myself, there's a good chance this is going to break through 310. I'm going to punch it I'm going to hit the buy button I'm going to step up to the plate.

On this. You have enough people that step up to the plate, enough people that press that by button and that becomes a self-fulfilling prophecy. And that's the reason chart patterns work so well on stocks that have high relative volume. It's because so many Traders use them okay.

and Dan I don't exclude the Wix I include the wix. so I do include the wick. Now the first candle to make a new high. I'm along there.

let's say 310. And of course the first Target is a move back to the high. We break through the high right there, we continue higher, and then we wait for the next pullback. and then we do it again.

And that's what I do on the bull flag and I do it all day long Now I'm going to be most aggress and this is. these are the waves that stocks are trading in. This seems simple. It's fairly simple.

Where do people make the mistake? They try to apply that pattern to the wrong type of stock. It works well when you trade the right type of stock. When you trade stocks that have high relative volume, you've got a lot of people watching. This pullback.

A lot of people watching means a lot of people pressing the buy Button as it starts to dip back down If you start to apply this to a stock that has a high level of high frequency trading like Bank of America or something like that, you are not going to see good resolution out of this pattern. It will not resolve correctly. There's no reason for it to resolve correctly. You have to trade the right type of stock.

that's got to be first and foremost right type of stock to trade. And then you apply these patterns to that setup. All right. So um, so let's jump back on to the screen here so you can do this on.

this could be a one minute. So like my example here on the Whiteboard, this could be this could be a 10 second chart. And remember, if this was a 10 second chart, then the one minute chart probably looks like this. It might have a small topping tail which was formed right there.

The next Candle on the one minute opens a little bit lower and then it goes higher and then there's another slight topping Tail as it opens a little bit lower and then goes higher again. Okay, now we look for the same pattern except for on the one minute chart right? So this is the zoomed in 10 second chart. Now we do the same thing on the one minute and then we could do the same thing on the five minute and uh, Raj says what's my risk stop at the low of the pullback, stop it below the pullback, stop at the low of the pullback. So when I'm trying to buy a dip, I'm trying to buy it down here off this level.

but I don't want to just start buying it. you know, like right here because I don't know, it might pull back more and I don't want to buy it right here because it might end up pulling back more in kit. In fact, it might end up pulling back all the way down and if the chart's broken. Okay, so what I really want to do is I want to wait to press the buy button until I start seeing the green prints.

When I start seeing those green prints on the level two, that's usually what I'm going to look for is that first indicator that the trend is starting to shift. So this is this is the bull flag pattern. Um, and I'm gonna I'm gonna read this to you so you don't have to. Um, you don't have to try to read it yourself.

I'll just um, I'll put up my camera so it's a little bit more interesting to look at All right? So the first candle to make a new high, the Apex point of the bull flag, or the pattern, that's the entry. Okay, so right here. this is the Apex right there. It's the first candle to make a new high.

That's the entry. Sometimes I will enter early to anticipate the breakout. As I said here if the first entry if the candle's at 310, but I'm seeing green prints at 308 and three nine, that's an indicator. go ahead and press the buy button.

This is time and sales and this is level two. All right. So this is again, a little bit more intricate, but important stuff to know. If you're an active Trader, you've probably already seen all this stuff.

So if I'm entering early, what typically triggers that entry is a break through a psychological level. Perhaps we dipped Below on this candle. We might have dipped down to 299 or 298 and then we popped back up over three. So breaking below and then back above psychological levels very important.

So even if a stock does not is not quite yet at the first candle to make a new high. if it breaks below this critical level, so we're we're pulling back here. We're pulling back and let's say this is three dollars. So we dip below three and then as it comes back up, they'll be green on the tape.

So as it comes back up there, 299, 301 if it can reclaim the whole dollar, psychological level: I'm going to punch that buy button at 301. 301 buy and then the first candle to make a new high is still at 310. What am I going to do? I'm going to add more at 310. So now we've got this candle going up.

going back up, going back up. And of course this was on the idea was on a bull flag, right? So this is a psychological level and and again, just you know. by the way, this is. this is why it's so valuable to be Trading in a community because you're not trading on your own while I'm trading I am articulating this type of price action in real time.

That's why you call me Coach right? You say hey, Coach? look and I say that's right, we're watching this stock and that's right. my name's Coach. don't forget it. So almost immediately upon entering I want to see the price move up.

If the price moves down immediately, my timing's wrong. Usually I'm pretty good with my time because I'm tape reading but sometimes the timing will be wrong and if the time is wrong, I usually cut it right away. so if I take a starter then I add as it moves higher. uh again.

when I go red eye trade almost immediately I often change my perspective um to getting out Break Even rather if possible rather than it being a winner I I No longer kind of think oh, this is going to work because if if I get in and it immediately flushes, my timing is just wrong. Okay so now let's talk about the target all right. So first we've got the entry. The entry is the first candle to make a new high right.

but we sometimes will anticipate it with an early entry based on the tape and psychological levels that we're trading around. Okay, and and some of this is is stuff that an Algo can't really do yet. Maybe eventually they will, but this is where we have an edge as retail Traders right? We're able to read these nuances both in the speed of orders going through the levels, the candles. There's a lot of stuff to try to program into an Algo, and what we find is that stocks that have very high levels of relative volume are up more than 20 30 percent.

There's a lot of Algos that when a stock is up that much, they just turn it off. And so there's this argument that high frequency trading algorithms are providing liquidity to the market. Yeah, until the market gets volatile and then they turn off. So when they turn off a volatile Market gets even more volatile because you don't have those Algos creating the bids and and offers that kind of just tighten it back down.

But that's actually good for us because that's where we start to see these big moves as day: Traders We profit in a way from inefficiencies in the market. You know, if the market was perfectly efficient, the stock would just always be trading at the exact correct value price. and you wouldn't have these fluctuations. You wouldn't have these news spike it would just there'd be news and then immediately would be at the next level but it moves to these levels and then comes down off of them.

So um, anyway. so the target is a retest of high a day. all right now. If the pullback is a bigger one, then we may start be getting into the mindset of an ABCD pattern and we're going to talk about the ABCD pattern again in a second.

But the ABCD pattern would be like it pops up here and then it dips down again and then it starts to go. So it's like a double bull flag. Um, and in a way it can make this final breakout more powerful because during this sort of period of consolidation, more Traders and these are their eyes. They're like looking at it.

They're like oh, this is exciting and this you know. he's kind of like his face and stuff. He's like oh, this is interesting and then he's like pressing the buy button when you have really fast patterns, Nazmi Traders will always see them and then that's going to reduce the volume. So when you have a pattern that's very obvious and is more drawn out here, more eyes mean usually better follow through Again, not always, but that's that's typically the case.

So risk factors? Um, so here's the thing. Uh, stops are usually tight on this pattern. However, we do have a risk factor of false breakouts and double top rejections. so a double top rejection is when um, you come up to this level and then you reject off of it and just kind of like it sells really hard.

Now a number of things can trigger that, but initially usually what it is. it starts with like a big sell order. So it comes up to this level and all of a sudden someone puts out a big sell order and so it immediately kind of flashes down in that market order and then people that got in for this micro pullback or or one minute pullback start to bail and then you get that Panic cell and if it breaks through the low of this last pullback, it's stopping people out and now it's breaking down. It may still end up working on a five minute or a 15 minute time frame, but whether or not you really want to hold it that long is sort of the question.

So this is something that a lot of traders in this place. If you see that double top uh and it's it doesn't break through it, they're going to bail out. So that means buying at the very high can be a little bit risky, especially in a bear. Market buying on the pullback is going to be better.

Um, and so that that's probably the biggest risk is a false breakout either formed by the double top or just through it popping and then immediately reversing back down. But the stop loss is typically tight at the lower the last pullback. Now, this is all relative. If this is a three dollar stock, this might only be a 15 stop.

If it's a 30 stock, it could be a dollar fifty a per share stop. But as you know, we would rather trade lower price stocks because it's easier to manage risk on and usually we'll see more momentum on them anyways. so that's kind of my preference. Um, profit Targets on this I Mean generally speaking, one to one is minimum I I Aim for two to one.

So if I'm going to risk 10 cents I Want to have the potential to make 20. The potential, The realistic potential. So if I'm looking at this setup and I'm thinking about getting in, The difference from this entry here to the high has to be at least 20 cents. That's a 10 cent stop.

that's a 20 cent. Target If that's not a bare minimum I Probably won't take the trade because I'll just say it's not worth it. You know, maybe it's a B quality setup? Maybe in a hot Market I would take a B quality setup, but in a cold Market at a bear? Market No. I'm going to be focused on high quality setups, which means during a bear, Market I'm going to trade less frequently, but the trades that we have I'll still be aggressive on them and when they work, I'll do well and so that's the biggest difference is fewer trading, fewer trades, more disciplined during the bear.

Market Um, and also in a strong Market I would be adding into these levels I'd be adding up here. Oops. I'm adding up here I would add up here and I'll just add at highs when I'm seeing green on the tape. I'll just keep adding into that squeeze.

So I'm just like I'm all in in a bear Market I'm gonna buy on the first entry here I Might you know, take a starter on this dip and then add into this breakout. but I'm not going to be as aggressive adding too high into the breakout because of that false breakout risk. so a little bit more conservative there. but even within a bear.

Market there may be individual days in that bear Market where it actually does make sense to be more aggressive. You know, a bear Market is kind of a hot and cold. Market You might have like three or four cold days and then you have a really hot day and so on that really hot day. Yeah, you want to be aggressive and then on the rest of the days you just go easy.

So and you never know which day is going to be the hot day. That's the thing. So you show up every day and you know you sit down. you you just see what the opportunities are all right? So um, so these are a couple of examples of bull flags and flat tops.

and what I'm going to do? I'm going to run you through a couple examples of this and then let's see. do you guys want to look at the micro pullback next? or do you want to look at the ABCD pattern? We can kind of do either. Um, the ABCD pattern is just the extended bull flag for a second lag and then the micro pullback is like all this condensed on like a very short time frame. I'll let you guys tell me what you think.

All right. So uh, both flags and flat tops. so this right here, uh on on the screen. Share.

This shows. um, a nice example there of that sort of pullback. and then the move higher right. so pull back, move higher.

So maybe we'll do ABCD into micro pullback and then we'll cover a little bit of parabolic to finish it off. All right. So pops up, pulls back, and then rips. I Mean this is a perfect example of that first candle making new high right? I Mean how is that not a perfect example? You have to move up the pullback and then it goes higher.

Time frame. That's a five minute chart. So you can trade this bull flag first. Pullback on a five minute.

Now this is, um, this is kind of interesting. This is a five minute chart on the left and a one minute. on the right and right. Here this is a one minute bull flag, but it's kind of a false breakout.

see how? It's a little bit of a false breakout. Also, notice this is sort of floating way way up here. it's super extended. It comes back down to this level at the moving average.

and then we set up first five minute candle to make a new high and this thing goes from 360 all the way up to 450 460.. pulls back and then that pullback. It actually got bought up pretty well and the volume is increasing right. So this is where we're starting to see.

It's a small cap stock. It's an energy stock. It's moving fast. It's Traders are focused on it.

You've got, you know, decent volume. Here's another one. Stock goes from two a dollar 24 to three dollars. Over a hundred percent.

This is a five minute chart and so you can see early on a little bit of chop. You know this. Pop and pull back, pop up. You know it's a pullback right there, but it gets a little cleaner right here.

That's a pretty clean pullback. This one's a pretty clean pullback. As they start to get more extended as they start to get more volume, that's where we can start to see these really clean patterns. It just starts to become super obvious.

This one Really nice. This is a more expensive stock at 26 goes up to 28 but very clean. Pullback pops up first, pull back right here, a very quick one and it goes higher. It doesn't wait, it moves up, pulls back and then goes higher and that going higher and not waiting.

That's why we do so many micro pullbacks, especially in a bear. Market Because when something starts to move Traders Jump on it fast. They don't wait, they just jump on it fast because they don't want to miss the opportunity. and then off it goes.

And the problem is if you're sitting there waiting for that five minute pullback, a lot of times we just don't get it. So in a Bear Market It's funny, but you actually in some ways have to be faster because the opportunities are short-lived So this one starts, it goes red and then it pops up and that right there on the one minute chart is like a micro pullback and then it just rips from 22 all the way to 32 dollars a share. But don't get caught chasing it because look at that red candles that comes back down right? So this is another one sort of red to Green move. Then it breaks over the V-wap pulls back, pops higher, pulls back inverted Head and Shoulders dips down, pops up, pulls back and goes higher.

Not the the cleanest but not bad either. This is a nice one. curls over V-wap pulls back right there f