What's up, everybody? All right? Well I Want to get this recap done early here because I've got a stack of books that I'm gonna sign and start sending out to our inner circle students. So I've got a little bit of a project this afternoon. I Hope my wrist doesn't get too sore, but you know today's a pretty good day. Finishing the morning up 5120 $3.26 not bad.

So I'm on day 14 of the hot streak and I'm up about $27,000 in the last 14 days, which is fantastic I'm loving this October momentum. So writing this down in the calendar 26 cents the 190 a--the day of the year and it's my 14th consecutive. Green Day Yesterday was day 13 I Always say day 13 is the hardest. We got through it.

now we're on day 14. so onward and upward. My longest hot streak ever was 56 consecutive days. So I'm only 14 days in.

but I have a feeling I could do it again. We'll see that would take me through 56 days would take me through like the end of the year for sure. and actually the last hot streak started I think on Thanksgiving and continued through February or something like that. that was the 56 days that was 2000.

I Want to say 15 through 2016 and then here in 2017 I was doing I wasn't doing a consistency challenge I was doing a you know small account challenge. So anyways, yesterday was a choppy day for me. I Started the day off red and had to work my way out of the hole I Never liked having to do that. It's not a fun way to start the day but you know it is what it is.

So that was yesterday to finish the day with $577 which me recovering about 3,000 I don't know $3,200 from being down 2600 to being up 577. Today my very first trade was on S. Rax. It was based on continuation because yesterday on Tuesday I had some really good momentum.

so I wanted to jump in it looking for continuation and I jumped in shortly after the bell rang at 3 sorry for 39. So for 39 I was getting in anticipating a possible break over this little pre market pivot which was for 34 and I thought if we could break over that level and get up towards 450 that would look pretty good for a breakout. So I jumped in it and this this is what happened I got in at 39 we pop up to 64 and I'm like awesome very good I put out in order to sell some at 65 and then it dropped from 65 all the way down to 405. it dropped 60 cents and it happened almost instantly and I was like how is this possible So immediately I'm down two thousand dollars.

Unrealized and it was instant and of course it ends up popping right back up to 46 and I'm able to sell it on the ask at 46, 41 and 39 or yeah, 45 I ended up making three hundred eighty bucks but I was down instantly and then it pops back up. That right there is one of the reasons and this is for better. for worse that I don't use live Stop borders because I would have gotten taken out and the thing is my stop would have triggered and I would have gotten slippage if I had a stop at. let's say twenty nine ten cent loss.

You can guarantee that I would have been filling at 4:15 and for 10 there's no way I would have filled at 29 because of how fast it dropped. So I would have ended up losing 2,000 bucks. Even though I could say well I had a 10 cent stop which should have only been $750 the slippage would have got me and what often happens is we get these wash outs and then the stock is do pop right back up. so I like to give them a chance to pop back up and in this case it pops back up.

I was able to mitigate the loss and actually turn it into a small winner which was good I think that was good risk management. Now on the flip side, there are certainly times where stocks drop 60 cents like that and then they keep going lower and you end up just saying. all right Well I guess I just have to bail out and you lose 70 cents or 60 cents or whatever it is and again you think well, Jesus if I had that hockey or if I had that stop I would have stopped out sooner. But you have to remember, you would have gotten slippage.

You wouldn't have only had a 20 cents or 10 cents top, you would have had slippage. and so you you basically have these two sides. On the one hand, a live stop will get you out of the trade, you're gonna realize the loss, but you're out of the trade. On the other hand, if you don't use live stops, you have the opportunity for it to drop down, bounce back up and get out on the ask and kind of manage the position at the end of the day.

Which strategy cost you more or saves you. You know the losses and I mean the only way to really know that would be to try both for a period of time and then see what happens. But for me, I've just always preferred to use mental stops even though there are times like yesterday on D FF n where stocks wash out really quickly and then you know all of a sudden you've got to try to mitigate the loss so you know this is one of the challenges. But I think the important thing is being able to prevent yourself from having that deer-in-the-headlights reaction.

So even if you do have a loss, you're able to manage it and handle the situation rather than just stare at it as it gets bigger and bigger and bigger. or react the wrong way like averaging down adding to it for when it you know bounces back up. but and that's not something I did I ever do so Anyways, s Racks was a close call but ended up being a small winner. It actually bounced all the way back up to 59 and then it dropped back down to 380.

So just to really not a clean easy stock to trade at all. so that was a little bit disappointing. Next trade was opt T now on opt T this one I felt a little frustrated with because I could have traded it quite a bit I could have gotten in quite a bit sooner and the place I probably should have gotten in was on this one minute pullback. That was right here.

That one minute pullback with the high of 204 is where I probably should have gotten in. That's where I was thinking about getting in but I hesitated because we had a really big seller on the ask. we had 25,000 shares seller and I was thinking this was going to be a problem so I didn't get in there. it ends up popping up to a high of 240 and then pulling back.

So I got in on the second one minute pullback right here. My entry was at 39 and this was it. popped up to 45 and did a false breakout and reversed so on this one I said I have a 10 cent stop I pressed the bailout key at 29 and I realized I was no long my mouse was no longer on the window I was no longer highlighted on the right stock my hot key didn't work I mouse over I tap the level two I bail out and they ended up selling it 23. so I lost an extra seven cents.

What should have only been a thousand dollar loss ended up being 1700 because I just didn't have my I wasn't highlighted on the right level to window so that was annoying but that happens sometimes it's just the cost of doing business. So that was Opt team and the next trade and the last trade of the day was DRI o So Dr. Io was on our scanners and oftentimes when I see stocks hitting the scans and you know showing me the color of it's up 8% in the last 10 minutes I want to understand what's going on with it? So I quickly go over to market watch and I check out market watch and I see that there news on the stock so let me pull up the headline. Well I'm gonna move these books over all right.

So the headline on this one. we had news out Now the news was out at 8 a.m. which you know was was early and I hadn't noticed it in the morning even though Dr IO was actually gapping up slightly. I just hadn't noticed it.

So a little bit of a gap news out at 8 A.m. Press releases: Dr. Io Gain see E Mark for iphone 7 and iphone 8 Smart Glucose meter and anytime you have a stock that has a headline that includes Apple Facebook Google Alibaba You know big big companies, it's it's a big deal, especially for a small cap stock. So when I saw that I was like oh my gosh, this is that's why it's spiking up, People for whatever reason, didn't notice it earlier and now they're noticing it and now it's moving.

And for the people that that saw it earlier this morning and have some type of scan setup where they're able to, you know see any headline that has to do with Apple this would have been a great opportunity, but in any case, as I saw, it was already starting to spike up and so I jumped in at 74 and I was immediately thinking $3 $3 target maybe 350 I I was thinking this had a lot of potential. So I jump in at to 72 73 to 75 it squeezes up to 2 $3 I try to add more at 3 It ends up getting halted on a circuit breaker. So it's now I filled 174 shares and now it's halted on a circuit breaker. It resumes at 5 minutes later.

Circuit breaker Halt I Started with 10,000 shares same as o PTT set s rax was 7500 so she sighs roughly the same and then it resumes at 9:55 I add another 2,500 shares, it pops up to 344 345, 347, 364 and I'm scaling out I sold a hundred and thirteen shares at 364 high of day on this was 364 so I actually got a little bit at the very very high of day which is always nice. and then we had a 1-minute micro pullback I added on the 1-minute micro pullback at Ford actually edited it. Let's see I added it 46 and 49 and looking for the break over the half dollar and a retest of hi of day I ended up stopping out of that at 28 and 23 and 17. So I actually was up about 7500 bucks and I gave back about 900 on that last trade.

So I'm finishing the day at 5100 $23 and to give you an understanding of why I take those one-minute pull back so you can see here those of you on Facebook 5123 dollars. Last trade was a 10 a.m. so that's 5,000 dollars in 30 minutes. Not bad and this is Dr.

Io. So my 1-minute pullback here on Dr. Io didn't work super well right here and the one-minute pulled back I took on opt T also didn't work super well. it just sort of so happened that the two that I traded today and I'll pull this back.

so I can show you it didn't work out super well. This one didn't work out well the first one did. But let's look at S racks from yesterday because this shows a really good example of why. I like the 1-minute pullback and why it can be a really strong setup.

This is S Racks going into the clothes squeezing up from three dollars one minute micro pullback. This is just a little pullback on the one-minute chart and that's an opportunity to get in a strong stock and boom, it goes higher. Entry here was at 4:30 the squeeze was up to 575. so that's why I like that set up, of course, there's no setup that works a hundred percent of the time.

You know? If we found that, then we would certainly be. You know we have. We would have found something that no one else in the market has ever found. A strategy that works hundred percent of time? It's just not there.

But you find a strategy that has high enough accuracy that you know you're willing to be aggressive on it. And so the one-minute micro pullback is maybe 7, 65, 70 percent successful. And and I say that you know just based on my own metrics in the last two weeks for the month of October, my accuracy right now is is just under 83% So for every 10 stocks I trade I'm right on eight of them and I'm roughly wrong on two of them. That's accuracy that I feel really good about.

And one of the things that I've always really been an advocate of is taking profits when you have them. This is the interesting thing about accuracy is in a sense: you can. you can change. You can very easily change your accuracy the number of times you're right versus wrong.

And so one of the ways that I've been able to boost my accuracy is whenever I take a trade and I am up ten or fifteen or twenty cents. It's very common that I start to sell out, sell half, sell another quarter, and adjust my stop to break-even So if I get into a trade and it goes up 15 20 cents, 90% of the time, that trade will be a winner. and it's much easier to predict a stock that's going to make fifteen to twenty cent move then to predict a stock that's going to make a one point or a two point move. So if my focus was instead not selling until I hit fifty cents, my accuracy would go a lot lower right? because achieving fifty cents on even a five dollar stock is a ten percent move now.

I In total, my entry on Diario was at 274 and it went up to 364. That's a huge percentage move, but you don't see that. So if I changed my strategy to only selling when I hit fifty sentence or whatever, my accuracy would go down and on the flip side my average winner would go up because I'd be selling for so much of a bigger win. So at the end PL might not be that much different.

But what would be different is my confidence level I Feel really confident when I trade a 68, 70, 75, 80 percent accuracy. There's a great feeling and knowing that eight out of ten trades I take I'm gonna make money on where is if your accuracy is, let's say five out of ten, you're 50% accurate. Even if you do have homerun trades, there's just that kind of added pressure when you get into a trade that there's a good chance that this is going to be a loser and that can make you hesitate a little bit more and then because you're hesitating, you can end up missing opportunities. So having confidence is something that in a sense you can create for yourself by focusing on a strategy where you take profit when you have it.

and again, that's not for everybody because not everybody is going to be really quick with the hotkeys. Not everyone's gonna want to take 15 cents when they have it. Especially if you're trading. you know, a 200 dollar stock like IBM.

You know, if you're trading high-priced stocks like that, the 15 cents it really isn't probably even justifying the risk that you took to get into the trade. So with a higher price stock, maybe you're thinking you know 30 or 40 cents is gonna be more realistic. So these things are relative, but it's something that I encourage you guys to think about a little bit with your own trading because there's a lot of value in building that level of confidence. It makes you more likely to jump into trades to be aggressive, to not hesitate, and and you know I think if that can be good, especially in a strong market.

So anyways, you know here we are today. 5,000 bucks and basically with one trade I hit my my weekly goal. Five thousand dollars a week. Thousand dollars a day.

Five thousand dollars a week. You know it's pretty good now again. I say $1,000 a day is my goal and I always tell you guys in the classes that your weekly goal should be the daily goal times three because you should anticipate that one day you're gonna hit your max loss. So there'll be a day where let's say I lose $1,000 and then you know that has to come out of out of the profits.

So for me though, I I just sort of figure $1,000 a day. My is my daily goal. but I know on a good day I'll be at $5,000 Last Friday I was at 6,000 Let's see last Monday was 4,000 you know couple Fridays ago was 8,000 So I know when I have a good day I'm gonna far exceed my thousand dollar goal I just sent $1,000 is kind of the the line in the sand that I'd really like to hit each day if possible. And if I have three good days in a week or even two I can probably hit my $5,000 weekly goal.

So $5,000 a week is about $20,000 a month, which is about two hundred and twenty thousand dollars. two hundred, forty thousand dollars a year after commissions. you know that's where I finished last year. so that's kind of.

You know that's sort of the goal that I set for myself. So we're right on track here. I'm at let's see a hundred and ninety-three thousand dollars on the year right now with a hundred and fifty nine thousand of that in my small account that started with $583 So from $583 to one hundred and fifty nine thousand, that's pretty pretty awesome. So average daily gain.

Let's see, just divide it by a hundred and ninety is one thousand seventeen dollars per day average. So pretty much right on track. Thousand dollars a day? Alright, so anyways, that's about it for me. I'm gonna sign some of these books and get these sent out to inner circle students we're going to be hosting our spring inner circle in March We'll be sharing some info with you guys on that so you'll be ready to join us.

This last one was a lot of fun. It was really great to spend time with everyone, so looking forward to doing that again in March and starting to get things organized. Alright so I hope you guys all have a great afternoon and I'll see you first thing tomorrow morning. All right bye guys! Oh hey I didn't see you there well I Was just working on the dream board for my next home run trade.

hopefully it comes soon. Until then, make sure you subscribe to get email alerts anytime! I Go live or upload new videos. Until then! Happy surfing.