Today, we're going to be talking about a really simple but effective technique that I've used for years to decide when to enter as well as particularly exit stocks when you're in the green. Okay, That's one of the things maybe you're watching these videos cause you've turned a lot of winners into losers. Cause these stocks move fast, great volatility.! That's why we love them.. But if you don't know when to exit before your goal is hit, you can get back a lot of profits.

And, like I said, sometimes turn that winner into a loser., Hey, everyone Lead Trading with Stocks and Trade Tim Bohen, here. Be sure to like share subscribe. If you're on YouTube. Ring that bell send these videos out to your friends., It's an incredible time to learn an incredible time to be getting into trading..

I want you out there maximizing this and I want everybody. I want all 8 billion people on the planet, taking advantage of these videos to become a consistently profitable, trader. All right.. That being said, let's get started..

So what I'm going to be talking about today is the five-minute candle theory. Okay, Maybe been on the pre-market prep sessions. I go live every market day, 8:30 Eastern. And I throw out a lot of jargons a lot of like shorthand abbreviations, et cetera and stuff like that, because it's rapid fire and I'm trying to pack as much into the 15 minutes as possible..

But when I talk about entries and exits you'll hear me say: hey here's, the entry., Here's the stop., Here's the goal.! You take profits into that; first red five-minute, candle et cetera.. So today I'm going to break that down so that next time I say that you'll understand what I'm talking about., So we're going to start with RNAZ as an example for today.. Obviously you can see it's a great runner just hitting new high a day.. So this is, you know something that we look for every single day..

Let me run it down why this is a good setup, why it is the stock du jour et cetera., Right off the bat recent IPO.. So this recent IPO just started publicly trading back in July., So we always look for these stocks because there's a lot of excitement fervor around IPO's around SPACs., If you're not familiar with SPACs Special Purpose Acquisition, Companies., Definitely look in learn: them.! We've! We've got a lot of videos on them., But what's great about these IPO's and SPACs these recent issues, I call them., You haven't had the time to lose all the enthusiasm.. You know again this just started trading. Two months ago, roughly I'm recording in September started trading in July., So it's not like this thing's been trading for 20 years and it spiked and failed and spike did failed and you know and created all those bag holders and all those crushed hopes and dreams.

Okay Hope Springs eternal in IPO's. And that's what RNAZ is. Then it's also a low float stock.. So I'm ticking off all the examples for you.

Low float stock.. They dropped some news. This morning. So again, you've got all those things working for it.

Great volume.. I believe the first I'm gon na go to a 30 minute candle.. I believe the first 30 minutes of the day, yeah. 30 million shares traded the first half hour of the day..

I mean that's just the market day. And then about 10 million in pre-market.. So here you are going into that 9:45 window going into that dip and rip situation where you're trading 30 40 million shares on a 9 million floater. Okay..

So there it is.. I won't beat it to death about the dip and rip. Okay, Please check out the archive.. We probably have 50 videos talking about dip and rips.

Today's not about that.. What today is about is you took the dip and rip. You recognize the float rotation.. You recognize the news.

You recognize recent IPO.. You recognize all these things because ideally you're a self-sufficient trader. Now you're in the trade.. So you take that high day break at say 350 that would have been a yeah 360..

Let's call it 360 would have been a break of the pre-market highs.. You can see this stock did pull at the open, all the way down to the low threes and then breaks 360 in the 9:45 window., So now you're in the trade. And you're risking VWAP.. So when we talk about that five-minute candle theory, what I'm trying to do is get you out for profits without going back to breakeven or ultimately again turning it into a loser..

So what we look for is three to one risk to reward. So say: you're trading at 360 and you're risking 330., So you're risking 30 cents, a share.. That means you're going to have a goal of 90 cents. A share.

You know Which would put your goal at 450, which the stack ultimately hit., But what I want to talk about is a lot of people get stuck in these things.. So your goal is 90 cents, a share which would be 450. So now notice how this stock? Multiple green candles in a row. Just skipping up skipping up skipping up.

You're excited you're, fired up and you're waiting for 450., But ultimately you can see this puts in a red five-minute candle.. Let me grab the whiteboard real quick. Cause. I wan na highlight this for you.

Oops. Let me get that crosser out of the way., So what I'm looking at is trying to get you out for profits before the goal. Goal's up here. It almost gets.

There almost got the goal, but not quite. Went to the high four forties.. So what I'm focusing on is this guy right, here. That first red five-minute candle.

When you're talking specifically dip and rips morning, huge runners. That first red candle is typically a indication of a shift in momentum? Okay, Short sellers gon na hammer that first red five-minute candle. Okay, That's one thing that you wan na consider is they're sensing that shift of momentum.. They see that high a day at basically 425 and they're gon na risk against that high, a day., So they're going to hammer that candle..

So the reason I talk about this is, I want you taking profits into that first red five-minute, candle which in theory would have gotten you out in the low fours. Now you'll always hear me say: stick to your plan. Stick to your plan! Stick to your goal! Stick to your goal., But when you're talking morning dip and rips, you can't overstay cause look at how hard this thing pulls. It puts in you know it had one small green candle, itty bitty one but other than that six red candles in them all.

And that's A shift of momentum and it breaks all the way back down into the three seventies.. So now what you've done? If you waited cause, you wanted to hit your original goal, which is admirable. Remember this is a dip and rip.. This is a momentum..

This is a terrible stock.. We don't wait forever.. I know it's at five right now, but we don't wait. This thing just as easily could have cratered when it broke VWAP., I mean again, first red five-minute candle break of VWAP major shift of momentum..

If you're still holding here, man you're really really begging to be a bag holder. To ultimately turn a winning trade into a losing trade.. So that being said, you would have exited in the low fours. In theory, you're making 40 50 cents a share in a matter of minutes on a $ 3 stock..

You know: that's not bad.! That's that's! 10! 15, depending on your exit, maybe 20 % in a matter of minutes., You can grow your account.. You know. Let's say you had a hundred shares or a couple hundred shares. You made 30 40 cents..

I mean not bad when you're talking to a small account. Maybe you've got a bigger account.. You got a thousand shares. You're, making three four 500 bucks In a matter of minutes on a predictable setup..

That's the biggest thing is we're not holding out for blood on these. You're, just looking for predictable setups that you can nail for three four or 500 bucks. Go back to your job and repeat it yesterday.. Most of you are part-time traders..

I hope you're a part-time trader., I hope you're not going in all in right away., But you nail this thing. You know several times a week several times a month that turns into real money. Okay, That's another thing that people underestimate how quickly gains add up., Especially when you're keeping those losses, small or keeping those losses to a minimum.. You know you make three 400.

You make three 400. You make three 400. You lose a hundred., Hey man, you're! All of a sudden you're up dang near a thousand bucks on the week. Extrapolate that over a month over a year, that's real money..

It adds up okay. So that being said, the conditions are dip and rip morning. Momentum setup always have a plan: okay, You're. Basing your risk or your entry on that high day break after the weak, open.

You're, creating a three to one risk to reward based plan based on how much you're risking. Risking 30, Looking to make 90. You're going to set that goal. But you're gon na exit for profits before that goal.

If you get a full red candle in the morning, okay Again super simple and it's very conservative and it's a defense-minded approach., But it will keep you from turning winners into losers. And ultimately listen if you're losing money. It bleeds your account., But it is frustrating mentally too.. Listen.

I've been there more times than I care to admit. Up a thousand bucks. You get greedy., You know you're, like I want more. I want more.

All of a sudden you're out. 500 bucks.. Oh, you know. Hey it's starting to bounce.

You're, looking for news., All of a sudden you're back to breakeven.. Oh, it's got a bounce., Then it goes red on the day and washes out. And then you'll lose thousand. You know a $ 2,000 swing cause you didn't take profits at you know 700, when it pulled back and put in a red five-minute, candle., So understand the conditions dip and rips momentum plays trashy stocks.

I mean I know of this thing had news.. I know it had a recent IPO., But I'm recording on September 23rd. 2021.. I mean, listen, actually drop me a comment..

What's the stock trade net today, You know this. Video will probably get released a week or two from now, probably early October.. What's it trading at now, Probably back to two bucks or something., So then also understand notice how this becomes an afternoon. Vwap hold okay too.! So yes - and I still say, the good exit was into that red candle.

Okay, Cause you're, not risking disaster when it breaks., But then it re, bounces, reclaims, VWAP and then perks into the close back over that high a day from the morning at four 40, and here you are pushing all the way up into the low fives.. So that's you know again, if you're under the PDT, it's tough to be in and out multiple times a day., But if you're not under the PDT. I tell you. I say this all the time in Steady Trade, Team, webinars or even in pre-market prep..

Every dip and rip becomes a potential afternoon, VWAP hold., When they do exactly what RNAZ did and they base perk, grind up and then break out into the afternoon.. And you know I know it broke at 11:35., But I mean we're heading into the afternoon. And listen I'm recording at 12:44. We got an hour and 15 minutes until the 2:00 PM window..

This thing could break again. So understand the idea is protect, protect protect.. So many people get too aggressive., So many people lose money. Unnecessarily.

And again, I'm guessing you've been there.. I mean you're on the channel because you're looking to learn. How many times Again drop me a comment.. How many times have you turned a winner into a loser? Cause you got greedy, you didn't recognize the shift in momentum and you could have taken a hundred bucks.

200 bucks. You know, I'm not talking. I'm not saying you turned a million dollar winner into a million dollar loser., But if you protect those 200 300 $ 500,000 gains, it adds up., It really does. And over time it will make a huge difference in getting you over the PDT in getting you.

Profitable. Recognize the shift in momentum. Know what short sellers are looking for and know what you're trading. RNAZ this ain't apple.

This ain't say: Microsoft.. Okay, this ain't Amazon.. This is a momentum day, trade that you cannot overstay in. All right everyone..

I really really love teaching these very simple concepts.. I think many people, you know over-complicate things., My buddy, my boy, Tim Grittani, always says trade, the ticker.. I think that is so important in day. Trading., Don't fall in love with these stocks.

I mean listen. You want to buy some Apple and hold it for a decade. You want to buy some Amazon and hold it for a decade. Thumbs up.

Sounds good.. We day trade, these things., We trade, the ticker and we trade the momentum., And you need to know when to exit.. You need to know when to have a plan, and you need to know when to break that plan, especially when it comes to protecting your profits.. All right, everyone have a great day.

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