Episode: five, i'm your host bryce, toohey and uh today, we're gon na be doing a about 30 to 45 minute q. A of everything you guys have to ask us. Are we good perfect all right, we're gon na be doing a 30 to 45 minute q? A of everything you guys have to ask. We have some questions already lined up from twitter that we're going to start off with, but this should be live on youtube uh, for you guys to essentially ask me live in chat as we speak.

So for those of you who are watching um, throw any questions you have in the chat and we're going to get right to them. But i'd like to start off with some from my twitter that we first got started off with these can be guys any any questions you want. Um really anything ideally probably not dating advice, i'm not all too good in that realm um, although if you guys are asking where matt monaco my guest, who was supposed to be on here that i didn't even announce, i didn't even announce, he's gon na, be my Guest, actually, i'd love for you guys to do that in the chat. Leave some comments.

I've been waiting for matt monaco to show up for an hour and 22 minutes. Now that hasn't happened. That has not happened, and so i'm just doing this alone and that's why i think this will be a fun q. A to do anyways, um it'll, be a great time, but anyways like i said, leave that down in the comments or live chat below, depending on when you're watching list.

If you're watching us live and also let me know, if you guys, like the live style, i wouldn't mind, i can actually i found a way i can add different guests, so maybe we can uh add any of you guys to the call do some q and A's, maybe every five episodes - you know, 5 10, 15 and whatnot um and we can get some live q a and going on with you in front of the camera. We'll we'll probably have to you know, choose some people ahead of time, because there are some crazy people out there who might just come on and do some crazy stuff, uh and i'd like to reduce that risk, even though i'm a little bit crazy by the way. Today's cocktail that you guys voted for for cocktail friday is the mojito. This is uh canned and ready to go.

I'm gon na get out some of this water. Then i've been waiting for over an hour. Now this this ice is starting to melt and i'm going to take off these glasses now, because i can't see anything but i'll leave them up here as a prop um. So we got some questions coming in live on the youtube, some great questions, um and like i said, though we got some from twitter that i think will be a great start, but not until we sip this bad boy.

Oh, the perfect, pour the perfect pour all right. Well, let's get started with the twitter ones. Just got ta go down to my twitter. Here we go all right, so i think this is probably a great uh uh, an easy first question to get started off with one that is going to vary.

This is again my personal take on it and you know i'm gon na. Let it be known to you know so far the talk show we've been talking about things outside of the small cap market, not just small cap stuff. This is probably going to be very general trading, related uh questions, and hopefully you guys are okay with that. I'd like to think you are, if you're following stocks to trade, um, so anyways great first question to start off with what is the minimum and maximum float? We should look for next to how much volume there should be.

So basically, the my interpretation of that question is float size, minimum maximum um and again, how much volume relative to that float. Should the stock be trading to consider it a trade? Now this is going to vary and for me it varies a lot even by market condition, um, not necessarily the float size. I really personally like the stocks that are roughly 5 to 25 million float. Those i consider low float stocks um and not to say that at 30 million 40 million, those aren't necessarily high float stocks they're just a little bit too high, especially in markets right where we aren't getting as much volume as we were.

Now we were blessed in 2020 and 2021, where we were getting small caps trading over a billion shares a day. I believe gnus was one of them. If i remember that right um, but their sundial was definitely one um and we're just. We don't have that kind of volume anymore.

So it's you know. Flow rotation is a very important factor in terms of a stock's ability to move. Now i'm sure you guys have probably seen a lot of small cap gappers, though that in the same breath they might have a 20 million float size and they're trading. 100 150 million shares a day yet not moving a whole lot, and that's where this answer can get kind of spotty right, where i personally like stocks that are not overcrowded in the in the pre-market trading session.

And what i mean by that is that, let's say a stock is uh again we'll just we're gon na use, 10 million float for uh share, float for very basic example here and in pre-market it's already traded 10 to 20 million shares. Yet it's stuck in this range to me that indicates very likely that it's going to be stuck in a range throughout the rest of the day as well. With that low float size trading that much volume in pre-market, it should have already rotating its float, should still be extremely volatile. But what we've been seeing a lot lately are these big gap.

Ups almost on air right, four or five in the morning. That will run a few hundred percent, come back down and be up. You know fifty sixty percent on the day stuck in a range pre-market and then after after market opens. While it is still trading a lot of volume, it's not very clean, it doesn't feel organic.

It feels very trappy um and again this is personal per things i personally look for, but when i'm trading a stock that maybe wasn't a massive gapper, that answer is going to be different. I don't care as much about volume traded previously uh in in respect to. I don't need it to have rotated float one or two times or three times as long as it's had sustained volume um it's over or very close to view ops, still green on the day and has a nice daily chart. I don't really care how much volume has been traded is again as long as it's been uh enough.

Ah, there's matt monaco. I appreciate you doing this alone again, matt monaco. Now not not only are you late, you're interrupting the talk show, oh my gosh, but you know what i mean so again. If i'm looking to stock, that's you know.

5. 10. 20 million shares as long as it's traded a little bit of volume on the day. A couple million shares maybe two to three million shares, uh green on the day and we're going into power hour.

I care less about float rotation. Then i care more about float rotation relative again relative to the float size right out of the gates during pre-market. I don't want it to be too crowded and there's really no perfect mathematical answer for that. Unfortunately, it's something that i've just seen enough times where, when i see a stock again having rotated its float a couple times in pre-market, but it's stuck in a range to me that indicates that it's probably going to be really choppy and manipulated throughout the day.

So hopefully, that's a good answer to that question. I'm going to look at youtube chat now see if we have any other questions coming in okay, perfect. We do have a couple others here, um, let's see. One of these questions here is what is the best place to enter on a dip by? I seem to get into high now, for those of you guys, let me adjust my foot quick for those of you guys who who know my style of trading.

You know that i'm generally not a dip buyer i like to buy consolidation brakes on strong stocks. For me, it's another factor of confirmation. That being said, something i've been looking at. A lot are charts of you know, stocks that were running really well during kind of the market, madness that we had in you know 2020 and 2021, and you know, while that lasted much longer than really any hot sector has ever lasted um.

What was very noticeable to me were almost all dips got soaked up because everything was running so much and there were some amazing dip buying opportunities on stocks that were very strong on the day so and that still can be the case today. Now the difference is the the rate of success is going to drop during slower markets, and i wouldn't even say this is a slow market. It's just an average average market and maybe even a little above average. We still do have runners, we still do have gappers.

The weed sector is coming back little by little um. So anyways, though the question there the best spot to enter on a dip that is going to be very dependent on you and there's a couple different ways. You can look at this. You can go for an area where we're dipping down to support dipping near support and enter that stock with a risk level on that support level, you're buying off of or slightly below um again, i am always of the mindset, i'm always thinking of the mindset that The more confirmation for me, the better and when i can line that up with a low risk entry, that's what i want, but that's the beauty of a dip buy on a strong stock is that it should the strength of the stock should be confirmation in itself.

Right so as long as you have a risk level um that you're comfortable with the dip by price doesn't matter nearly as much as position sizing relative to that risk level. So, let's again for an example, suppose we're buying a stock, that's trading at five dollars. A share the risk level you want to choose is four dollars and fifty cents a share. You're gon na be risking 50 cents.

Well, if you bought it five now again, currently the stock's trading at five - let's say your dip buy is going to be at 480.. So that would mean your risk is gon na be 30 cents. The most important thing isn't really necessarily the price you're buying in at it's really boils down to the risk level. There are actually studies that show random entry buying uh with high with a very heavy focus on risk reward is actually profitable, and so that is where and that's why, again, with the dip buying it's less on the price.

I'm going to keep saying this because it's important less focused on the price, more focused on the risk reward and that's your advantage in buying a dip is: you are maximizing risk reward by buying a strong stock while it's becoming weak. So don't think in terms of that price. Now there are indicators that you can use to kind of help time that by um, but those are things that you can develop later on, whether that's view op, whether that's you know a horizontal support, whether that's a trend support whether that's a moving average. It doesn't quite matter find what works for you, but again place that focus first on finding the risk level and building it accordingly and again, my my biggest thing that i would, i would say um would be to make sure you're doing this on one: a strong Stock on the day, something that has a reason to be up whether that's a catalyst, whether that's strong, multi-day development, that's breaking out et cetera, et cetera, um or two.

Maybe i'm an otc panic dip by where there's a very big imbalance of supply and demand. Uh and and if you have the a risk level chosen, yeah you're going to get stopped out yeah, you might not bottom tick, it uh, you might get faked out too. It all happens, but that risk level is going to be the most important thing. Then we start working into.

Why should i be dip buying this? Is it a strong stock? Is it a panic? Is there that supply and demand imbalance, and then you go from there and you build your edge around that and then you can tweak your wind? Not not necessarily your wind percentage, you can tweak your ability to use bigger size, your ability to will get more size with the same risk, uh same risk level based on different confirmation factors. For me, a confirmation factor for my entries, for example, is level two and tape. It's not an end-all be-all. It's not a it's, not the biggest thing in my trading, but it is important just knowing where size is coming through, where volume is coming through.

It's just another factor of confirmation that might allow me to take more size. It might allow me to go up to a full-size risk, whereas sometimes i, if there's not some of those factors, lining up i'm going to use half risk, i'm going to use three-quarters of risk just depending on those factors. So that's uh that was uh two dj millions on twitter um. I think it's a great question.

I think it's something that a lot of traders do misconceptualize is needing to bottom tip the bottom tick these dips. Let's see if we got more questions coming, oh there we go. We got some more coming in on youtube now as well um. I do have a couple other on twitter.

I am reading some of you guys on youtube, though, and we will be getting to those momentarily uh how to become better at exiting your position. This is actually a great way to kind of build off of what we just talked about. Exiting positions is going to be very dependent on your style of trading right in theory, the best way to go uh to base your exits is going to be based off of risk reward. I don't want to be exiting a position at let's say again: let's say i'm risking 50 cents a share, we're gon na make it clean and simple.

I don't want to exit my position for a 25 cent to share gain, because then i'm, if i have a 50 win rate, which you know is i'm not going to say average, because it totally depends on your strategy. But if, if i have a 50 win rate, i'm going to be an unprofitable trader, i'm not going to be profitable, and so this is where it is going to depend on your strategy. If you have a very high win percentage strategy, a scalping strategy - that's maybe an 80. You know a 75 80 win rate.

You can go for lower than those one to ones and you probably have to go lower than one to ones. Whereas if you are having a maybe a 30 win rate, you're going to need to make sure that your exits are significantly higher than your risk level and we can almost transition this right into sometimes that in itself is a reason why - maybe i don't want to Take this trade, maybe the setup looks fantastic. Maybe there you have a such a clear spot to buy such a clear risk level, but there is an overwhelming amount of resistance that will make it tough for that stock to deliver a two to three to one risk reward. Just because that setup looks great doesn't mean there aren't other factors that should um.

That should stop you from taking that trade right. So i don't know if i just said that right sorry, i'm getting distracted by monaco still um, but what i'm trying to get at is you need to make sure that risk board lines up, and that is the biggest thing for exiting a position now. There are other factors, things that you know for me. In fact, i actually just did a study trade team webinar about this topic on wednesday.

There are sometimes factors of failure before your trade plan plays out and a lot of times. What i will do, if i see enough of those factors, line up, is exit the position early. I will cut it before my risk now. This is a topic that some traders completely disagree with.

Let that trade play out to its full potential. But for me, if i'm seeing things like double tops or fake breakout or a massive seller, stepping up or volume, completely drying up or a mix of all those that might be reason for me to get out early, even though it hasn't hit its full potential. It hasn't made it to an important level of resistance, etc. I might exit a little bit early, but i would almost argue that is not something you should focus on right away, first and foremost, just again map out those resistance levels, does it have room to run? Is it over a resistance level, in which case it could have room to run in theory infinitely, which is why we love breakout trades all-time high, breakout trades um, but if not, does it have enough room within the given? You know potential range to make it uh worth being a trade from there then say: okay! Well, how far from my risk is the potential gain? Is it i think, two slash three to one uh risk reward is a good number to kind of go off of in terms of just starting.

I think one to one is going to be too low. Even if you are working on something scalpy, i think those higher risk reward trades are going to build better trading habits down the road. I wish it's something i did more. When i first started, i was a very, very scalpy trader, i'm still relatively scalpy, but not nearly as much as i used to be, and it's because i had a fear of losing and that's something that you really kind of have to work on.

Getting over to become a successful trader is understanding that you can and will lose throughout the day throughout your career. It's going to it's going to happen, um, and i guess this isn't really a question, but probably a great way to work on that is to be trading with small size. So that way you get used to losing right a lot of times. It's not well.

It is the money we lose, but in conjunction with the money you're losing and just having to face being wrong, it sucks going through both of those. At the same time, i would rather learn to be wrong with small size and scale up as i become more profitable, as i become more consistent, and then that way, i'm learning and that's exactly what i did do by the way for those of you who don't Know i learned to lose a small size and it allowed me to scale up very fast when i was confident and consistent as a trader, so kind of a little bonus uh bonus piece there um. We do have a question here on twitter that i'm going to get into later about nfts and kind of my take on them going into the end of 2022 and into 2023 that i do want to. I do want to get to it again.

That's going to be later on in the episode uh one more question from twitter is: if you are in a trade uh and your risk doesn't break and it's consolidating, do you hold overnight, slash longer or just get out at market close, so i'm assuming this means We're approaching the end of the day here and i it hasn't broken my risk, but it hasn't played out. Do i swing that's going to be very, very, very situational right. There are a lot of factors that go into that. Are they coming up on earnings? Did they have news? Do they have upcoming news? Um is? Is it a good? Is it a strong, multi-day setup where i think this does have uh potential for continuation? How much am i up risk reward wise um? Maybe i was going for a massive home run.

Trade, where i'm going for uh uh, you know five slash 10 to one big trade. It just didn't work um. Maybe i continually move my risk up without adding to the position, so i essentially am risking a winning trade now either way. Am i comfortable dropping that risk back down to the original level? Now that's not going to be the case, if i add it to the position and then adjusted risk level.

That won't be the case then, but there are so many factors that go into that, and the answer is sometimes yes, sometimes no, and it's going to just be very situational, depending on the stock, depending on the setup, depending on a bunch of different factors. All right now, let's get over into the youtube questions here, um. I am going to i'm just starting to read these now. Okay, this is kind of a good question.

Uh, there's kind of two um uh two, two questions by the same by the same guy um and one is as a trader with a year's worth of experience. When can i start to expect to see? Oh, oh, that's that isn't a question never mind. I thought it was. When can i expect to start seeing success, but he was, i can start seeing things before they happen, yeah.

In a sense, though, that is right, we never are buying an anticipate or in in hopes right we're buying realistically actually with the idea of losing right with that risk level. However, that's the point of a pattern at the end of the day is to be able to say this is what the stock should do. We can never say this is what the stock will do, but that's the point of buying based on patterns is because, historically, those patterns have yielded certain results more more often than they fail, and so that is something as you continue to develop as a trader as You continue to expand the patterns, you, trade or refine the patterns. You trade, you will be able to anticipate, but you still need to wait for that trade to play out.

You still need to wait for your confirmation factors to line up make sure you have a risk level et cetera um, but his follow-up. What i thought was a follow-up question, but what's the question is how do i build confidence in this market and something that i've done because it you i go through and i'm sure just about every trader i know, does you go through swings, you're going to go Through periods of exponential growth, followed by periods of down drawdowns down, draws uh drawdowns, and you kind of a big factor that i've learned in this uh whole journey that i've gone through is that confidence is built up in a number. Confidence is built up in a number of ways. Um confidence is built through having a system, a very systematic, systematic way of trading, and even though i don't necessarily have hard data on percentages of what time of day this stock breaks this moving average or whatever you get the point i do have data based on The exact style of entry i take versus the risk levels i take and how often that works and yeah when the market's slower, understandably a long bias setup, doesn't work as well.

So what i do to keep my confidence up is definitely trade less. I stop um. You know when the market's hotter, i can be a little more of a gunslinger, not necessarily just with size, but on different types of setups that are similar to what i trade but not spot on they're, not my a pluses. Yet they can yield some crazy results.

So i dial it back to just the best trades. In fact today i took one trade: flge got a five to one risk reward trade on it. That was actually alerted live in small cap rockets. For those of you that saw, i know a couple you traded.

It good job, i know you guys, traded it well, um, i'm trading less, i'm focusing only on the a plus setups, a lot easier said than done. That's something i've been trying to do for months and i'm still not perfect at it, but i'm getting better. That's number one number two: is i drastically draw back my size? I don't want to be going through a full-size drawdown when i know for a fact the market isn't in my favor and if i do see an a-plus setup and generally that's going to be a multi-day breakout, multi-week multi-month, breakout with structure again market structure. That has been developing for weeks, then i'm gon na probably use full size, but you know if i'm taking three to four trades a week that i think are a to a plus setups, i'm still going to be using smaller size just because even those a to A plus setups are not well, i guess i can't call it an a plus set up.

The a plus setup would really be those stocks with really strong multi-day multi-week multi-month development um. Something like flge, for example, though, was a great, essentially ended. A v watt break play and i actually just posted on instagram for those that followed on stock shared instagram, three reasons. I liked that uh really quick recap about it.

But again that was a trade where i'm very i'm not comfortable using max risk size, but i'm comfortable using you know my current risk in a slower market and number well. I guess that actually coincides with. I guess that really is about number two, as i was going to say size down, but i guess i really just in a long way explain sizing down but don't be afraid to drastically drop size. If you are not consistent in this market again we're going back to that question i asked or maybe answered.

I don't even know if it was asked um where it's okay, to use tiny size to build confidence in a strategy to build consistency. A lot of times, you'll notice, that the majority of your trades are impulsive, uh with too much size or both right, and it's very easy to go down a slippery slope where, when you all of a sudden draw down that size drastically, you don't care as much About the money anymore, you care about taking the right setups you care about using the right risk levels, you care about waiting for the right exits, that's going to build, much better habits and then again, if let's say you were trading with 100 risk and you drop It down to 10 or 20 risk, then you can exponentially well exponentially um a gradual exponential. I know that made a lot of sense, but you can build back to that hundred dollar risk faster. It doesn't need to be an overnight switch, don't go from.

You know trading a 10 to 20 risk and be like okay. After a week, i've got it. I'm back to using 100 100 of trades you're going to fall back right into the same habits, make it a month, make it a month and a half right where you're increasing, maybe 10 or 20 a week and go from there um! That's that's how i would build confidence in this market. Oh, let's see someone asked is a view up fail, an instant exit, no not for me, but it does depend on your strategy.

If that's something the factor for you for the way, you trade, that you know that when it breaks under vwop, it is less likely to work or it's almost unlikely to work. Maybe it is. But for me it's not um and again there are a lot of these questions i can tell already. I'm reading are going to be very situational based depending on your strategy and your setup, and i can't answer um how to take your trades for you.

I can answer how i would take my trades and for me, a view up. Uh break is not an instant exit at all. In fact, sometimes for me, that's a bullish sign if we instantly recover um, let's see yeah, okay, so you're going to notice too a lot of my answer. A lot of my answers are going to be based around very, very similar topics, because right here we have uh.

I am always too fast to get out on my or getting out on my winning trades. How do i hold longer? Listen? I can almost guarantee you that the reason you are cutting wins too fast is because you're using too much size. You should not by any means be scared. When you're in a trade, you should not be scared to lose and if you're scared to lose you're using too much money.

I again, i can't guarantee it. I don't know everyone's situation, but the majority of people if they were risking 50 cents on a trade. I guarantee you wouldn't care to lose literally it's 50 cents. Now you wouldn't care to win either, but that's not the point.

You shouldn't care about winning. You should and you shouldn't care about, losing you should care about following the trade plan. The way you did it the way the pattern is playing out and if you are trading with a 50 cent risk who cares, if you lose, who cares if it hits your risk level? You lost 50 cents now, if you're trading and you're risking 20 of your account yeah you're gon na, be really scared to hold that to risk and all of a sudden you're up. I don't know you're up you're up a few percent, maybe maybe you're risking a thousand dollars and all of a sudden you're up 150 bucks you're like okay, sweet, i'm taking it because i didn't take the loser.

You can do that 10 times. Well, not 10! Not 150 to 100., you do that 10 times and one loser will wipe out your all. Your 10 gains very likely if you are scared to hold uh for the full potential to trade you're using too much size. That's plain and simple what it is so try sizing down again drastically it's okay to go down to like a dollar risk, in fact uh.

My my first when i decided i wanted to really refine my trading setups and i really wanted to stick to one strategy. Um, this was back really real end of 2019 early 2020 when i was just fed up of losing for two years right. It took me two years to get that conclusion by the way that i was fed up with losing um being a losing trader. I realized.

I need to do two things and one. I need to be a lot more specific with what i'm trading right. I can't keep going from strategy to strategy to strategy um and the fact of the matter is that the different setups, the different strategies i was trading - they all are profitable strategies. But i went with the one that i felt most comfortable with and number two.

I needed to drop risk down so much that i didn't care to lose and how we went over this in the beginning. But i want to kind of walk you through that journey because it was important to me um when i lost for a month straight right. I believe it was. It was either april or may of 2020.

When i decided i'm going to actually do this. I thought about doing. I had tried to do it little bits at a time for a while, but when i really put those two and two together, i was trading with two dollar risk right. I every trade that i was gon na lose on was going to be a two dollar risk and it felt really weird at first.

It felt so pointless for, like a week straight, i'm like whatever i think i uh cool. I made six bucks today cool. I made four dollars today cool. I made eight dollars today and then i took a step back and i was like wait a minute.

I had my most consistent week of trading ever because i followed my plan. I didn't cut my winners early and i helped i. I wasn't, i was okay to lose, it was okay and i noticed that while i was losing you know a bit, i was also letting trades play out to their full potential, because i didn't care about the gain. I was letting stocks run into resistance and selling into that um, and the way you guys are like well how'd you take all these trades with.

I was i was using a small account. I was using a cash account, though, and with a two dollar risk it wasn't like. I was taking a thousand shares and risking point two of a penny. Uh, probably a better example, was i wasn't taking 100 shares and risking two cents on the name.

I was well actually, i guess i would if i was taking, you know a 50 cent stock and i was risking 48 cents and i was letting it run to 55 to 60.. You get the point, though this is a really really really important lesson that i think is important for every trader who is struggling to let stocks run to their full potential uh here and from there. Then you learn, you learn as you size up. You start caring.

A little bit more about the money again, you keep adjusting you keep going back and forth, but try sizing down. If you are struggling, try it try sizing down so much that you can take 20 losses straight and not care about it, and i know it's not. It doesn't sound fun, but it is one of the most important things you can do as a trader um. Can i give example of risk reward on a recent trade? Please i actually just did on f uh, i i know i just mentioned it.

What's the name of the ticker uh, i'm gon na, let's see what was the name of the ticker f-r-g-e um was the the tigger that i the only trade of the day and i'm gon na. If you pull up the chart, you'll see at the end of the day um, it was hovering around 18. A share right under view op it spiked up to like 1840, came back down to like 17, something uh, maybe 1770s and consolidated there for a few minutes. Um before breaking through vwop, before breaking through we're gon na just mute that there we go um before breaking through view, opt with the 1840 push, and then it ended up running up into like 20 50.

that trade i started off risking 17 a share on an 18, entry uh, so i was risking a dollar a share and then what was really interesting right - and this is something i've been working on and it worked really well today is, i believe it's called pyramiding into a trade right. You are building a position not only building a position in size, but you're also adjusting risk level accordingly and what's great about being able to do. That, is that as you build into positions right, you're using bigger size, so every penny goes up. You're going to be making more money and you're able to keep the dollar risk the same as you move, risk levels up, and so that's what i did is i started in, i think 1801, risking a basically a dollar and a penny per share.

I then added, through the view op break at 1840, giving me about an 18 23 average or something like that. Um and i was able to move my risk. We had a little fake breakdown through like this little mini micro support area, and then i was able. I personally was comfortable risking the 1760s dip, so i had about a uh.

I guess that uh, that math would have added out to be about 70 cents a share and then that stock ran um. Actually it was 1770.. So i had roughly a 50 cent per share risk and that stock ran from my 1820 average. It ran to 20 70, or something like that and i got out in the 2050 so do that math.

That is two dollars and 30 cents about two dollars and 30 cents a share gain on. I had a third three-fourths of my position there that was roughly a four to five to one risk reward trade, and that was fantastic and again, that was how i built into it now. That's my most recent example of a really solid risk-reward trade that i'm happy with. I was really focusing on that process, really focusing on the setup that i was comfortable with um and i was again very happy with it.

I think that's a great example. If you go through and look at that chart - and i can't remember the ticker f-r-g-e - i keep thinking fergie like fergie fergalicious uh - that's a great one to go. Look at and you'll see the spots i'm talking about um. It was a good one, honey man we're getting a lot.

I like these kinds of questions, even though they're going to sound redundant with the answers - hey bryce, how do you manage your emotional intelligence in order to stay confident with your risk? Now we've already talked so much about risk level. Right we've already talked about how important it is to use small size and that's a big part of that kind of emotional stability during a trade. However, a really important thing that i have done to kind of build up. My emotional intelligence is uh through journaling right.

You are going to see so so so many trades that you take if you journal your trades at the end of the day that you're like what was that, what was i buying? Why was i buying this if you've never journaled before that is and you're going to notice? How many of your trades are impulsive um, and this is something i like to talk a lot about uh. You know, i guess less so frequently or recently i should say, but i do have a lot of webinars on this in the study trade team - a couple in small cap rockets for those of you guys that are part of it. You can go through and look at the archives about literally step by step, how i create my journal. In fact, we basically right in the live chat on stocks, trade, the other day um or in the small cap rockets chat.

We went through step by step how to build a journal things that i look for that are important in my journaling process, because that's how i gather my data now, if you're more of a numbers person you're going to want to focus on different, very um. What's the word, i'm looking for very notable, very obvious factors that will affect the probability of a trade working for me, though again it's knowing how i trade a setup, that's more important for me and that's a great way to manage emotional intelligence in a trade or More importantly, in a trade you're about to take and you're gon na say, okay, this. This is like very similar to the trade i took last week that i wrote down in my journal and i should not have taken because of these factors right, uh, and so that is one thing that, for me, will pay off dividends in a few months. When i go through and really go back and say wow i messed up here.

Why was i doing this? Why was i doing this and that emotion, you'll, remember not only how you felt, because journaling every day is going to force you to deal with your losses. It's going to not only force you to deal with them, but it's going to force you to accept them and force you to learn how to avoid them in the future or try to avoid them in the future. If they were stupid losses - and i think that's a great way to build up emotional intelligence again right before, while you take the trade and then while you're in a trade, because again when you're journaling, i always like to put charts in my journal. So i can keep seeing that same pattern over and over again, if i keep seeing every time consistently, i'm selling way too early, i'm going to remember that in a trade, even though i want to sell, even though i'm really tempted, i'm up a lot of money Right relative to my risk, this trade still based on all these other trades that i've taken likely still has more room to run and that can actually be another way in itself to hold longer, which was a question earlier.

Oh, let's see, do you know about the blockchain? Do you think it's possible for nft to join with mobile networks with ei mobile, to be exact? Listen, i. I can't answer that right now. I really i do have a very uh generic understanding of the blockchain, but when we're getting into mobile stuff, i have no clue. I'm no tech wizard that could have been a matte monaco question, but you know as a software engineer by by trade.

Well by my degree, i suppose, unfortunately, i'm gon na keep doing this matt monaco decided to ditch me today. Leave me waiting for an hour and 22 minutes to respond um and even even then he just completely ditched me. So if matt monica was here yeah, maybe we could talk about that, but unfortunately we can't so, let's all blame that monaco together in the chat. Oh, let's see oh, this is an interesting question and this is probably something that's very uh relevant to a lot of you folks who are trading right now right.

What oh, i just want to get a time check. Quick! Okay, we've got a few minutes left here, we'll go through a few more questions before we start to wrap it up, and i do want to talk again about nft. So i want to make sure to leave some time for that um, but one like, as i was saying, a lot of you guys who are watching this or who are um trying to get into learning how to trade i'm going to have to assume you're. Probably you probably have jobs.

You need to fund that trading account right unless you just saved up a stash of stash of cash from a job, you're, probably still working in the meantime and matt bellamo. Here said: what day should i take off of work permanently to trade? So i'm assuming you're saying you could probably do a four day work week, which is better for trading friday or monday. Listen, listen! You know. If, first of all, don't i'm hoping that means you are able to take work off right, you're, not just you're, not just like.

Ah i'm not going to go into work today and that's something i think another topic real quick that will build into this. I see so many traders who want to go full-time trading right away, right or or really fast, maybe three months - maybe they had one good trade and they're like all right, i'm ready to go full time. You can do whatever you want, but my goal, as you know, a mentor here with stocks to trade is to really build quality traders and that's one of my biggest goals in small cap. I don't care if you're, making five dollars a trade or five thousand dollars a trade.

It really doesn't matter. I want you to be a consistent trader, a smart trader. I want you to keep building that process as you move forward in your trading and here's. The fact of the matter trading is a part-time trader and i've gone through it.

I've gone through both sides of it right. Um trading is a part-time trader, where you're not able to sit in front of your screens day in and day out versus being a full-time day trader sitting in front of your screens day in and day out, they are night and day difference. Now i was able i was fortunate to kind of be able to gradually transition into that because of the type of work i did. I also you know: i dropped out of school, which was essentially my full-time job at the time, but i also did have a full-time job during well.

I say full-time job. It was a freelancing job, but i was still working about 30 40 hours a week. On top of school, on top of learning, how to trade and on top of actually placing trades right, it was, i didn't, have much of a social life and i'm sure that's probably a lot of you guys here who are trying to really get this down. But when all of a sudden, you have no other responsibilities, work wise right, you probably you know, maybe have kids or a wife or a husband or whatever the case may be, so you might still have other responsibilities in life.

But when you're just able to sit in front of your screens from nine to five well, i guess not nine to five well you're, probably watching pre-market, though so i'd almost argue it's longer than that, it's probably seven to four um. You are going to see just how impulsive you are just how you you might have had the the best you might have had some great consistency, and maybe you really are ready to make that jump and then all of a sudden you're able to take every trade. You want, and you are gon na - be blown away. You need - and this is something i was very smart with uh - is i continued to work as i, as i uh transitioned my time into more of a full-time trader? And again i was fortunate to you know be in a line of work where i was able to kind of pick and choose my hours a little bit if you're not don't be afraid to really get that consistency down for a year a year and a half.

I know that sounds so long, looking out right, but you're going to thank yourself when all of a sudden, maybe maybe six months down the road you're like man. I wish i had gone full time six months ago and then all of a sudden you go through a drawdown that you still need to have cash coming in. You need to live and that's almost going back to the emotional intelligence part. You don't want to be in a spot where you are reliant on a trade to make to make rent right to pay rent or to pay to pay for your food.

Real - and this is such a weird concept - to try to even explain but detaching yourself from the money in trading is what will eventually lead to ability for exponential growth and to really master your emotions. But it's something that's very hard to do. It sounds so weird. I remember i'm gon na take a sip of my mojito real quick.

I just realized. I didn't drink any of it, my mouth's getting dry. Oh my god. That's so good holy smokes.

Oh that's! Really good mine's a little watered down! That's really good! Good cocktail! Friday choice guys thank you guys for that vote, so anyways um. What i was saying is: it was the weirdest feeling when i first started, making like some crazy, crazy money in the market, because i was again it was exponential growth right when uh from from may of 2020. Up until february of 2021, i went from a two dollar risk per trade and within eight months i was risking about two thousand dollars of trading. You know up until i hit the hundred thousand dollar mark in overall p, l in december of 2020 and by february of 2021, which was peak madness.

I had a hundred thousand dollar week and it was just the most bizarre because i lived at home with my family um and every day. They'd, ask me how you doing today - and i just remember i'd be like oh today - was really good. You know three thousand dollars like. Oh that's awesome, that's awesome, then i'd get to a ten thousand dollar day, they're like holy crap and then one day at a fifty thousand dollar day and they're like wow, their minds are blown.

But then there was a day where i lost like six thousand dollars like. Oh you lost you that that would be like eight months worth worth of rent. I'm like you, can't look at it that way, because as a full-time trader, if you are looking at like oh my god, i just lost half a year's worth of rent you're, going to you're going to get emotional. You are going to lose all that emotional work that you'd built up, and so you need to do everything you can to detach yourself from that money.

We're going to really round about answer here, but i think all this is important for those people who are trading part-time, that want to eventually work in trading full-time. You need to have cash set aside that you can live on um, for you know, and that's going to be up to you to depend how risky of a person you are, but you can live on for ideally a year or two. If you blow up a trading account that trading account almost needs to be separate than what you had saved up um and you know there - i don't know - there's that's just such an important thing that i think not enough people realize i want to be real and Honest with you guys, because again my goal is to build good traders, help build good, strong, solid traders. I don't want.

I don't want to see people who are like risking. You know they all of a sudden. They have this one big trade now they're like okay. Well, i just made twenty thousand dollars on this trade now on the next trade, i'm gon na risk twenty thousand dollars, that's not smart trading, um and so going back then to taking off work permanently what day is better monday or friday.

This is actually probably for those of you that are able to do this that are able to take a day away from work and focus on the markets. This is probably a great way to start that transition right um, and it's going to be up to you. There i know um, for example, matt monaco and i held matt monaco anyways during uh during the hot market. He for him wednesdays were the worst day of the week for him.

Statistically, he lost almost every wednesday. Why? Because he was mentally drained. It wasn't that the setups weren't there it was that by wednesday he was really drained from monday and tuesday and by thursday he had kind of like you know, maybe a dial it back a little bit by friday. He would crush it um, and so it's you look at stuff like that track those days that are the best for you um personally, i think mondays are probably one of the hottest days in the market and the reason being is because you have a lot of Fomo building up over the weekend, people are antsy to trade.

You're gon na have news releases that built up for two days. You know what i mean: you're gon na have development from friday. Now fridays are great too, because again friday is short, doesn't want to hold over the weekend, but um, i think mondays are a great day but again see what's best for you alrighty guys. We don't i'm i'm not gon na lie.

I have spent uh. I've gone quite in depth over uh some of these. Some of these questions, i think they're all extremely important questions to kind of help build up your trading uh if you're watching this right now. Can you hit that like button for me, give me a thumbs up? Um and we're gon na get into the last bit here, because i know a lot of people on well.

Just all over nft has been getting talked about a lot again and a big part of that is crypto's rallying right. Crypto is really rallying, which generally actually can have an uh adverse inverse effect on nfts, where right the price of ethereum is higher. So um, you know it's. It's you're gon na be able to use less ethereum that the price in ethereum is going to drop just accordingly with that um price fluctuation.

You know us dollars to ethereum, but it doesn't necessarily mean that dollar volume is lower would mean like ethereum volume is lower. So or whatever currency exchange, whatever it's called, uh is being traded on so, but i know that, with this whole crypto rally kind of starting to happen, we are getting a lot more talks about nfts, and i think this is a really great general question on twitter. That i'm going to loop back to so we can keep it general, your take on nft's bryce in 2022 and 2023. um and, first of all, i think i want to kind of start off this.

Preface this question uh we got some people liking that video. Thank you guys. I want to preface this with i'm sure there are a lot of you guys that are watching. That might not have a complete understanding of what nfts are, and i'm not going to sit here for 30 minutes and tell you the what a non-fungible token is and why this technology is so much better than the current financial system we have set in place.

But i do think it's important to kind of just have a very general understanding of the nf nft market uh, what it can lead to and just my opinion, no one's going to be right. No one's going to be 100 right on this. It's it's a new evolving technology that very well has the potential the technology to affect our financial system going forward for forever uh, and that's you know more or less. It was very similar when money has been digital for so long guys like right.

How how many of you guys, whenever, whenever you go to purchase things, i know they're going to be some of you who only use cash? You don't use a debit card. You don't use a credit card. It's just numbers coming out of your bank account. So this this transition into cryptocurrency into um different types of assets is just very it's just a very progressive way of dealing with the financial system, and i think nfts are a very, very great way to almost track validity of an online asset.

Because that's been one of the hardest things to do right - and this is uh. This is an example from a garyvee podcast episode. I heard i think i think it was garyvee. Maybe it was someone else um that talked about this, though right, i'm wearing a versace robe right now.

There is no way that you can look at me right now and say: yeah, that's real yeah, that's fake! You have no idea, i i could have no idea. Well, i mean i bought it from versace, so i'm hoping they didn't sell me a fake robe, although would a fake robe sold from versace be a real versace robe. Now that is a sakura-tui question. If i've ever heard, one alex is laughing back here, yeah um! So anyways though you cannot tell you, cannot just look at this and say yeah.

That's real yeah, that's fake! With an nft you can. You can use the blockchain to determine where that came from where it was made um when it was made who owned it. You know the different wallets that have owned it. The different you know where it's gone.

It is a super, easy foolproof way to make sure a digital asset is real and it's something that we haven't been able to do, especially in the physical sense, but more or less the the uh, the digital sense right. It's been even harder to track. That's why we have so much. You know i hate to use this word this this this sequence, but you know fake news, and misinformation is because it is really hard to track sources.

When i can just go onto the internet write any article, i want with zero proof of any of that being real, and i know this isn't necessarily like an actual asset, but you get the point. There's no way for me to it's very difficult to go through and prove okay. This information is real because you're going to see statistics backing up both sides. We talked about this with bowen, i think, is where we're almost an information overload um with the internet, and so it's very hard to track that stuff.

The blockchain allows that uh to be tracked much easier, much more efficiently and much more accurately, and the nft is kind of the byproduct of that. That is, that actual digital asset that you know in theory, has value and then then we're getting into.