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Warrior Trading // Ross Cameron // Day Trade Warrior
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Before we continue...๐
๐ฐRemember, day trading is risky and most traders lose money. You should never trade with money you canโt afford to lose. Prove profitability in a simulator before trading with real money.ย
โโMy results are not typical. We do not track the typical results of past or current customers. As a provider of trading tools and educational courses, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole.
โDo not mirror trade me, or anyone else. Mirror trading is extremely risky https://www.warriortrading.com/why-mirror-trading-is-a-bad-idea/.ย
๐ All of the content on our channel is for educational purposes only. No data, content, or information provided by Warrior Trading, the Site, or the other products and services of Warrior Trading, is intended, and shall not constitute or be construed as, advice or any recommendation to buy, sell or hold a particular security or pursue any particular investment strategy.
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Warrior Trading // Ross Cameron // Day Trade Warrior
All right. So we're going to get started here in just a moment. Thank you guys all for tuning in to today's class. The topic is identifying bull traps and my goal is that through watching this class, I'm gonna able to help you guys avoid getting caught in some of those traps in the market.
They're obviously we've got bull traps, we've got bear traps and so I want to first show you how to identify what a bull trap is and then once you've been able to identify it, what I'm going to do is kind of work backwards from a false breakout or a bull trap and try to answer the question of how can we avoid this How can we predict that this is about to happen so we don't get caught in the bull trap? Now listen, there's no such thing as never having a lost trading. Losses are going to happen, but you know one of the goals of being a successful Trader is minimizing your drawdown. And so if you can learn to avoid false breakouts, it's going to help you a lot. So I think you guys will enjoy enjoy this class and for everyone who is tuning in today, I'm going to give you a link where you can download my free technical analysis Series This is a pretty awesome piece of content that I put together for you guys.
It's kind of the ultimate resource for technical analysis, so please enjoy this. Use it. It will help you in your trading so you know, get into it. Keep studying.
You guys are here because you want to learn. so this will help you. And I've got a ton of more free resources that are on my website warriortrain.com and that are throughout posted here on YouTube. So keep checking things out and I hope you guys hit the thumbs up if you enjoy uh this episode.
Okay, so let's see. um so why don't we go ahead and Jump Right In I'll do a little Q a as we go along. so as I see a good question posted I'll um you know I'll answer it and I might jump in and out of my charts a little bit. so maybe I'll just full screen this.
Kind of like this for now. Okay, so um, let's see. so we're gonna jump in here. Um, three topics that we're gonna cover three three chapters to this class: What is a bull trap? Indicators of a possible bull trap? And then I'm going to share with you my choppy Market strategy Because you're gonna know and realize that there are some markets where man it is extremely choppy and you have to be able to Pivot and adapt to current market conditions and that's something that I haven't always been really good at.
Um, it's something I've really struggled with is actually learning to sort of. You know he's off the throttle and things are getting choppy because what I tend to do is I stay like hard on the throttle and I just like spin out have this big loss and I look back and it's like well you know the writing was on the wall that I was in a choppy. Market things weren't clean and I kept fighting and I ended up taking way too much risk and it was really avoidable. So when you start making those mistakes that you realize were avoidable, you make enough of those and that's when you realize you've got to start to tighten up the way you're trading. And maybe you're watching this episode because you've had that experience yourself. All right. So um, let's start with chapter one: What is a bull trap? So bull traps? Bear traps, False breakouts, False breakdowns. Essentially, this is when we're expecting the market to do one thing and it begins to do that one thing that we're expecting and then it's suddenly whips the opposite direction and it fakes everyone out.
These moves can be extremely violent and can very quickly swing you from green to red. And if you're trading a higher priced stock, these can be whips that are dollars a share in size and actually just as an example of it. um I just noticed um on my other chart. Kal So Kal the stock um you know has has put in a couple of false breakouts.
um we had a false breakout right here as it tried to double break this double top through resistance and we also on this resumption here from a hall. big sell-off pops up, drops back up and halted down again. you know. So these and and this is in such a range where you're talking about a high of 1250 and a low of 10 20.
that's a two-point range. You know you take trades on stock with a range like that with 5 000 shares and you're up and down ten thousand dollars in a matter of not just minutes seconds. It can happen so fast and the problem is. Once that reversal is confirmed, we often see continuation in the opposite direction from the original move as Traders bail out right because you have traders that buy for the Breakout and then it squeezes up and then does a false breakout.
It drops down and so while those Traders are bailing out who's also getting in short sellers who are seeing that false breakout as confirmation that the stock is not strong enough to keep going. And so the combination of Short Selling plus Longs bailing out creates an imbalance to the sell side and this sort of Supply demand equation. And that's where we often see that continued sell-off after the original. Um, a false breakout.
So you know I mean one of the things here that's also important is keeping that mentality of breakout or bailout. Which means if you get in for a breakout and it does not work immediately, you bail out of that trade. You don't just keep holding and hoping because it usually is just going to keep trending low. So this is an example of a clean breakout right now.
This is a stock that traded last week had some good trades on it and I mean look, this thing went um, it was really a phenomenal move. So consolidation here. a little choppy here and here for sure. but here's something just I'm gonna try to give you these little tidbits because some of these are so important.
So what's the difference between this little attempt here that was a false breakout or this one here, this one here and this pullback right here. And what I would say was the big difference is that during this pullback the stock had just experienced a like 20 move. It had just made a really big move in the last like five minutes. So when you get these really big moves these this is when you start to think of these moves as being like a magnet. It just pulls traders in, it pulls them and it pulls them in. Long bias Traders and short sellers it pulls them in and so you have a lot of people watching it. In this area that's also reflected in a higher volume light volume red candle and then boom it rips up. Now what you have back here.
it started to pull away, but it was moving a bit more slowly at this time and highest volume was on a red candle showing that sort of indecisiveness and it went back into this kind of sideways consolidation. So this was a much more bullish pattern on this pullback than this one right here. And that's one of the reasons that you got really good clean, breakout, and clean resolution on this one minute chart. And then this is an example of a bull trap on a one-minute chart, right? So this is a stock that squeezes up all right, and it does make a big move, including a halt and it gaps higher, goes High it pulls back, it drops down here, big bottoming candle wick, and then it rips up and it makes a new high by like, you know, a couple of cents and then it flushes all the way back down.
So this would be an example of a bull trap. And there's a couple things that we're going to talk about as we get into this class about how to identify that. This was more likely to happen on this chart than it was on this chart here. While both had some risk as any stock does of having a false breakout, the risk was much higher on this stock in this chart pattern than on this one right here.
And if you're not able to identify that just by your sort of cursory view, well, it's good that you're tuned in for this class, because this is what I'm going to help you with. All right. So this is another example of a bull trap and this is on a five minute chart and this was a really nasty one. So this stock squeezes up, it pulls back and then it comes back up and then right here.
You know, some lawn buys traders buy it for that. Move back higher and flush a big sell-off right there. So you know, give me those of you who are tuning in. give me a reason.
You think that this maybe had a higher likelihood of being a false breakout right here and not going back up to the high. So while you guys are typing, I'll give you I'll give you two two red flags that I see the first. We have a tweezer top right here. This is a Candlestick pattern.
so you've got these uh, you know, sort of like Chopsticks right? tweezer top You have two uh, topping tail candles in a row. So I think of the devil as having two horns like this. those two topping Tails that's a red flag. so if you see two of those right next to each other, you think about this is a stock that is trying to destroy me. All right. So we've got the two, the tweezer top, the two topping Tails back to back. The second one has high red volume and that's a bit of a rejection, right? And then it pulls back here from a high of 28 all the way back down to 24. which is a substantial pullback.
It's pulled back all the way to the volume weight, average price, and it's been over a five minute long chart. So this has had a long time of pulling back. In fact, it was breaking out for a very short period of time. It was pulling back for a much a greater period of time.
So if we kind of wait, how much of the time is it breaking out? How much is it pulling back? It's pulling back a lot more and then coming back up here. This to me, look at how light the volume is as it comes back up those candles when it breaks out on light volume. That is a trap. That is a trap.
And it's funny because what you'll see is you'll see and you know. We know that market makers and the high frequency trading algorithms will bait you. I Mean they bait you into trading more and more and more. The more you trade, the more money they take out of your pocket And so you'll see the way the price action changes.
The level two will start to thin out, it'll start to squeeze up, but the volume isn't there, right? That's an indicator of a trap. So let's get into more detail here on indicators of possible traps. So I Found that there are a set of conditions where bull traps are more frequent. This includes both intraday price action as well as General market conditions.
So right now we're in a General market where false breakouts have been more prevalent than they were I Don't know, maybe like a couple months ago. All right. So if that just happens to be what's happening in the market right now, we're seeing more of the false breakouts and when you start to see more and more of them, they kind of. um, they sort of breed in this sense that when you have more false breakouts Traders start to get more timid, more cautious, more nervous short sellers get a little more confident and so you sort of see these waves of confidence increasing, increasing increasing until you see something that maybe wasn't really a perfect false breakout.
And people short sellers get short too early and then all of a sudden it rips higher and now the tide starts to change. As long Traders are getting gaining their confidence back, they're like whoa, hold up. This thing is squeezing and charts are like uh oh, time to, you know, button down the hatches. Things are getting a little wild again, so we always see these Ebbs and flows in the market.
So General market conditions are definitely a variable and right now they're making it more likely that we're seeing some false breakouts. But the intraday price action is important as well. So if you can learn some of the indicators and early warning signs for traps, you can avoid getting caught. Now I Say that you can't avoid it a hundred percent of the time, but if you can reduce the amount of times you get caught in a bold Trap by I don't know I mean even if you could reduce it by just 20 percent, that would save you unnecessary losses. That's more money in your pocket. So I would like to be able to help you guys with that. All right. So here's a bull trap on a one minute chart.
So again, what do we see here that's going wrong? Let's go back to the very beginning and I want to say so many? Traders I Feel like overlook the Candlestick shape and the volume profile and these are like these are the most pure reflections of the sentiment in the market. So this candle here where the stock hit its high. It's a big red candle and it's got It's a doji. It's got a huge chopping tail, a bit of a bottoming tail.
It rallies back up. but notice again and let's see. Um, I'll turn on my laser pointer, so notice again. Right here you've got one doji, you've got a second one, and then you've got these two tiny little candles.
This is like Prime for a flush and that's exactly what you get Right there is that big flush and notice. You know it's just like it's trying, but it keeps. Every time you see that pop and then sell off pop and sell off that is weakness and that's what this is doing. and that's how those dojis are created.
Now the fact is, the stock does squeeze up, but sellers bring it back down before the end of the candle, it squeezes up and sellers bring it back down. All right. And then you have this consolidation here. the sell-off This is a dip and then it comes back up here and it comes back up to the high.
But it's coming back to this area of price where we previously struggled. This is an area where we already had a hard time. So even though the volume is a little bit higher on this candle, it's certainly not high of day volume. I Mean, it's a little bit higher, but this stock.
It's just shown this weakness now. I Want to show you something else. the Macd right here. This is something that I'll put on my charts during Choppy Markets during really strong markets.
I Won't use it, but during Choppy Markets I Put it on my charts to help me avoid false breakouts because I Noticed that when the Macd line here crosses below the signal line, from that point forward, we're in consolidation. So Macd is. It's a acronym for moving Average convergence. Divergence So moving averages are diverging when a stock is moving up quickly.
All right. So if I look at a chart here, um, you know you look at Kal For instance, right here you've got your moving averages of the 9 and the 20 which are in Gray and cyan blue color. and as the stock moves up, those moving averages are moving apart so they're diverging and then right here they're converging and they actually cross over against each other right here. So they pull away and they come back together. So it's an oscillating indicator. And what it shows us is that when they're coming back together, when they're converging, that's a period of consolidation. I Usually find that when moving averages are converging, we're going into this long period of consolidation. This is when stocks can be very choppy.
I Really do better when stocks are in like a breakout mode. When they get into this, um, where they get into this kind of choppy consolidation, this is when it can be really difficult and some of you guys are mentioning. Seco Just did a false breakout. so let's take a look.
All right. So look at that thing. Okay, all right. so let's look at this.
Um, all right. so Seco um. high volume red candle? Mm-hmm So our red flag on this is that high volume false breakout at the Open right there. We already had.
this stock already has a history of doing this. It is not surprising to see it. Do it a second time. You know this is a stock that already is just willing to make those nasty breakouts.
So false breakouts? Yep. and so that's very common. So when do traps happen? So in the previous examples, we see some warning signs. Now you may choose to ignore them.
That's a choice you can make. but I encourage you to try to develop awareness of them. Number one is a history of several topping tail candles where sellers are pushing the stock price back down. Number two is a history of nasty false breakouts or nasty flushes which we just saw on Seco Number three: The Macd negative Divergence prior to the false breakout.
So the Macd is against the trade in that the Macd is below the signal line. What that tells us is that our moving averages are converging now sometimes I'll say that we will have a negative Macd and we will still see a false breakout. So this isn't like it's not like a red light green light like. Oh, if the Macd is negative I should never take the trade.
it's just another one of the indicators that I look at to try to evaluate whether or not I should take the trade if the Macd is negative, but the stock does not have a history of topping Tails or history of false breakouts and perhaps the five minute is forming a really nice bull flag. I may say, you know what? I'm willing to take the trade I'm going to trade. take it a little bit more cautiously and with smaller share size so I still use as a factor for determining how much risk I'll take. but it's not necessarily and you know this is trading I Mean there there isn't exactly just Red Light Green Light So um, Macd: Negative Divergence Prior to false breakout, number Four stock is moving into a period of consolidation on declining volume. This declining volume is a problem because in order for a stock to really have a strong breakout, you really do need pretty high volume, so you know the volume can come back in if the five minute chart looks good. But if you're trading on one minute chart and there's no five minutes setup and the Macd is crossed over and it's got this history of false breakouts, you're starting to really get yourself in a position where you're exposing yourself to a lot of unnecessary risk. I've also found that higher price stocks can be more prone to these big swings. and this can be because often times with a higher price stock that was parabolic within the last maybe week, it was a lower price stock, right? A stock that goes from seven to ten to 15, to 20 to 30 to 40..
you might have someone that bought 10 000 shares of it when it was at seven bucks. Now that's a big position, but now when it's at forty dollars, a ten thousand share order is four hundred thousand dollars and that's going to make the stock dip a little bit. So if someone just presses that sell button for 10 000 shares, boom you can see a dip and the type of Traders are going to have the uh account size to do that are going to be institutional Traders Big Money traders and or market makers and high frequency trading algorithms. That's where we're going to start to see some big whips and Retail Traders going into small size, you're going to get caught in these traps where they start to break out and then it flushes three points and then comes back up.
So these are liquidity traps they they like. they trap Traders and when Traders are panicking when they're capitulating, they're selling. so then bigger Traders are on the bid, absorbing those cells, the smarter Traders I guess or the Big Money traders and then it comes back up. and then again you get that false breakout where long traders buy it, buy it, buy it, and then a short is accumulating those shares.
So it's a liquidity trap. so let's look at another one here. This is a bull trap where the stock had a really nice move early on. Um, there was a one minute micro pullback here.
another one right here. It tops out with a topping tail, but not particularly concerning. really. it's it's a fine candle.
I Mean it's just a doji? It's not huge, you know, so a little bit of a red flag, but not too bad. It pulls back and now it's stairs stepping down so we're pulling back. So of course, as we come back down here, Macd crosses over against the trade. It comes back up and it does a false breakout right here.
This false breakout on this candle. The Macd was clearly against the trade, right? so you know, and as it turns out, high volume red candle. So now you've got a high volume red candle. So from this point forward in the day, the stock has a history of a false breakout.
It does come back up, but then when it starts to set up another pattern, it tops out and drops back down, forming another false breakout. So it's a stock where you had a little bit of a history of false breakouts. The Macd was not very positive on the trade. It had this nice move, but now it was getting into this period where it was sort of struggling to really pull away. It wasn't able to do it. Oh, this is another example where Macd is against the trade. You had a stock that made a nice move early, but it pulls back a little bit too much. Here, it pulled back from a high of a little over three all the way back down to just over 250.
It pulled all the way back down to the V web. So both of these examples here this stock was below volume weight, average price, which is a really big pullback. I Don't usually like that, pulls back down to its 20 moving average. Now, this one here broke its 20 moving average but came all the way down to V web.
But when you're breaking these averages, this is not super strong. A really strong stock doesn't break these averages all right. And let's look just for example, on Seco Seco So Sico I mean clearly was struggling even before it came up for this false breakout. Here, it had dipped down below its moving averages.
It came back up. This whole period was grinding, It was not exciting, and then it sells off his back down this trade right here the entry at 367. that's a break of V-wap setup. You know it's not a setup.
I Probably would have taken on the stock because of this red candle, but that one is certainly a little bit safer than the high day break. In any case, this is a first pullback following a break of V-wap and although it went higher, it didn't hold. alright. So that early weakness can be a little bit of a problem.
but it is true that sometimes early weakness where a stock is trading below view app can trap short Sellers and then you have an epic move. It certainly happened before, but here's another bull trap here. where the stock. Um oh, this is actually I Just got this earlier today so this was consolidation here and it pops up.
This was Seco it pulls back. it hits a high of 410. Again, Macd's really not in favor of the trade. It's really been struggling.
It's not. it's not really going parabolic, it's moving higher. but it's like a grinder. So we contrast that with stocks like I don't know? Well I'll show you a couple more good examples.
So so let's talk now for a second about my Choppy Marcus strategy. and by the way, if any of this is helpful if you find this interesting I hope you hit the thumbs up and I hope you're subscribed to the channel and I hope you check out, um, the free technical analysis series I've put together for you guys includes Gap and Go Strategy micro Pullback strategy a Trader Development worksheet. You should check this out. All right? So I'm going to put this over to the side.
There's a link where you can download the technical analysis Series in the description of this video and I think pinned to the comments. So this is my Choppy Market strategy where we're seeing choppy price action where we're seeing a lot of traps I Have to adjust my strategy. This is me wanting to ease off the throttle and not get smoked when things are getting a little bit more difficult. As always, trading is risky and there's no guarantee you'll find success whether you trade with me or you'll earn on your own, so you should take it slow. It's also true that there are some markets that are easier to trade in than others, and so if you're trading in a market that's very difficult, you have to adapt your strategy. It's even possible that you could have a strategy that is very profitable in a hot Market but is actually not profitable at all in a cold market. and I've certainly seen Traders over the last year who were net negative. Over the last 12 months they've been successful.
Traders They've made over a million dollars in their career, but the Bear Market that we've been in for the last year. their strategy doesn't perform well and they did not adapt either at all or quickly enough. So I try to adapt my strategy and I try to see the writing on the wall pretty quickly when things are going badly. but uh, even then it still could be a little bit better sometimes.
So number one: I Aggressively trade the early part of the move and I scale down in size as price increases. So if we look back at some of those examples that I showed you or you could even just scroll back in the video, you would see that a lot of the clean moves were early and then we got into these periods where they just became very choppy as it. Consolidated And that's when you got the false breakouts. SO Trading Early Trading aggressively.
Not early part of the day specifically, but in the Early part of the move when the stock is really pulling away and Robert is asking what I mean by uh, by trading a stock that's parabolic so you know we could look at. um, you know, an early part of the move on Msgm Just for instance. So this stock Msgm last week had, um, a really epic couple of days and so each day we had some sections where it was moving really cleanly and we had some great breakouts. and then we had some periods where it was a little choppier this year.
choppy light volume that was not so clean. But if we go back a little bit further, let's say I'm on my traveling trading station here today, so my computer's running a little slow while I'm trying to broadcast. So like, so think about this. this area here right where it's going straight up.
That's parabolic. The stock goes from like 12 15 to 50 bucks. It's like straight up. That's an area where obviously it's moving quickly.
There's a lot of opportunity this area here of consolidation. that's going to be a little tricky. There's range. you could buy dips, but maybe wait for it to start to break out again. And there you go. That's the breakout and that's that clean. Move higher so I want to I'd prefer to trade when stocks are going parabolic. There's not always parabolic every single day, but to varying extents.
I mean on this day, even before that move, we had these candles here early, which was at the time. you know those were relatively strong candles. You know a dollar, two dollars a share, from six to eight, so you know I I'm happy to trade those. Those are areas where I would still be trading because the stock is basically moving.
You know, pretty much straight up, all right. and Seco right now is rallying back up a little bit. But um, but we'll stay. We'll stay focused on this, all right.
So number one aggressively trade the early part of the move and I scale down as price increases all right, and I scaled I Certainly tried to avoid trading during periods of consolidation I Try to focus on trading during periods where the stock is moving quickly I like to trade micro pullbacks taking profit into the first breakout with stops at break-even breakout or bailout if it doesn't work. I'm out of the trade and I'm pretty ruthless about that. I'll just hit the bid I'll just bail out I'm out. That's it.
Number four: Don't over trade. Your cleanest windows are early in the move. If you miss them, you gotta wait for the next one. you don't want to over trade when the Market's chopping.
and number five. I just focus on 15 20 Cent Winners That's my goal. Just 15 20 cents. If I could do that with 5 000 shares, it's 750 to a thousand dollars each trade.
and if I do that three or four times in a day, I'm up. You know, a couple thousand dollars and then maybe a couple losses of 10 cents minus 500, you know? So daily goal: twenty five hundred to five thousand. That's that's kind of what I focus on. And this was a year of trading at a Bear Market So my average daily gain was four thousand, three hundred and eight dollars.
so you know it was a million dollar a year. Average winners are smaller than in a typical year, and I did get caught in a couple of false breakouts. You know it happened through the course of the year, but my accuracy was 69 and that's a level of accuracy that I've been able to maintain pretty consistently for a lot. for many, many years.
five plus years I've been maintaining about 69 percent. So the biggest difference between a really strong Market in the Bear Market was that my average winners were smaller because I got a little bit, um, more aggressive at just taking quick gains, quick gains, quick gains, and not pushing my luck. You start to push your luck and it's very, very easy to give back profit. And I'm sure every one of you guys know this.
I'm sure every one of you have had days where you were up nicely and you overstayed your welcome and you gave back your profit. So I'll always say you're doing one of two things: you're giving back profit or you're leaving money on the table. and I'd rather leave money on the table and walk away sooner than give back profit. And today's a day where certainly by not trading. Seco maybe I could have on that, you know, break a V web or whatever. Maybe I could have made a little bit more on it. But I try to remind myself, especially when I've crossed over 5000 on the day as I did today. you know I've done my job.
I've made enough today. This is a good day. I can come back and try again tomorrow. And I'll also say just for context that today we did have quite a bit of choppiness early on.
and when we have choppiness early on, that for me is a red flag to try to slow down. I do want to try to push harder when the Market's hot, but today didn't feel super hot. It felt volatile and volatility. Uh, can create opportunity.
but you do have to be very cautious with that so you know again. Uh, you know you don't want to be too greedy with traits. you want to try to just make enough and then come back and try again. So micro pullbacks followed by breaking it following breaking news.
So we had a nice micro pullback on Hscs right here. A little micro pull back there. little micro pull back there. That was where it was the cleanest right there.
That was the cleanest of the whole day. This is another one micro pullbacks so these are almost hard to see on a one minute chart. But the stock went from 550 to almost nine dollars a share. so it went up four dollars a share, almost 100 percent.
And there were micro pullbacks here where it hesitated like you can see right here at about seven and then it pulls higher. it tries to break down it. can't You see some big bids on the level two, green on the tape and then off it goes. So you know this is.
this is the type of stuff that I'm gonna try to trade aggressively I'm going to trade the front side of the move when we first had breaking news, or when it's moving quickly during periods of consolidation. I'm going to try to avoid it, not overstay my welcome, but if it comes back up and wants to make another you know, leg higher then I'm interested in trading that as long as the stock hasn't displayed one of the characteristics of maybe being more likely to do a really nasty false Breakout because the last thing you want to do is give back that profit on a sort of higher risk trade because once you get further, you know if I have a loss at 7 15 in the morning I feel like I still have a good amount of time to recoup that loss. but if I have a loss later in the day I'm running out of time to recoup the loss because traditionally we've had the most opportunities in the morning which is between I guess I mean really, probably between like 8 A.M and 11, but even as early as seven until maybe as late as noon. But really, it's there's kind of a window there between like 8 and 10 a.m where most of my trading happens. and if I start to get later into that window, if I go red, I may not have the opportunity to recoup losses. So just based on that calculation, you know it's like if if my window is closing, I may want to stop trading. uh, before it it closes because if I take that last trade right before you know my window closes and I go red on it, that could be a problem. This had a nice micro pullback right here at 8.50 All right.
So these are the micro pullbacks that um, I was talking about or that are covered extensively in the micro pullback strategy in the technical Analysis series. I'm a big fan of micro pullbacks because here's the thing. What's happening during a micro pullback: a stock has just started to squeeze up. It's pulling back for a moment.
There's a little bit of profit taking, but it's not long because Traders see this stock squeezing up. They see it hitting High a day scanners right? So of course I'm using scanners. These scanners are like radar. They're searching the market in real time for stocks that are moving higher right? So when I see a stock hitting it as soon as I get a pullback, even a small one like this I'm going to be jumping in I'm like, yup, it's time to get in.
It's game time so you know you don't have a lot of time when something is strong Traders are going to jump on it quickly. You have a micro pullback and that may be it. Now you can let it do its full five minute breakout and wait for a brand new five minute pattern. But what sometimes happens on parabolic stocks is they'll go from you know, 7 to 14 on without a five minute pullback.
And then they don't do a five minute pullback because even five minute Traders are like it's too extended to buy it up here at 12 and it just Fades back down. So if you're not trading those one minute pullbacks including micro pullbacks, you're missing the whole move and in a choppy. Market You want to try to capitalize on on every move you can. So did any of you guys find this interesting? I Hope you did and I hope that this helps you in your trading again.
Whether you're trading on your own or you're learning from me, you're trading over where you're trading a community I Hope you find it interesting I Hope it's helpful and I want to remind you that you don't have to do this alone. We have a great Community Traders over at Warrior trading I'm live streaming every single morning while I'm trading so you can get a sense of what I'm looking at what my watch list is and you can watch over my shoulder and you can see my P L while I'm training. So I Hope to see you guys over at Warrior trading I Hope you check out the free resources that we've put together for you in this free technical analysis series and if you found this helpful, please hit that thumbs up! And I'll put a couple videos at the end of this episode that you guys should watch if you want to keep learning and there's lots of content that I've put on. YouTube So I I hope you subscribe and hope you keep watching Alright, Thanks so much for tuning in and I'll remind you as always with my disclaimer that trading is risky and my results are not typical. so please take it slow and practice in a simulator before you put real money on the line. Thanks for tuning in and we'll see you guys real soon! Thank you.
I made good money on KAL yesterday. Call it LUCK or PLANNING, but I sold it at $12!!
Hi Ross and crew, I took a small position on SECO (5 minute chart) at 1010 (just as MACD was beginning to open…and it was just below VWAP) it had good volume and I was just ready to get out and it slammed flush (5min). I believe if I had been trading in the 1min that I would'nt have seen the red candle unless I referenced the 5min. Anyways, it was a small position for a guy with a small brain. I'll keep pressing and thanks your knowledge.
Thank You !
Awesome Ross, love this video!
What is considered a big seller to you on the tape, and makes you want to get out of the trade?
ROSS , THANK YOU for sharing. I have learned some valuable info today about (topping tails). Its hard to believe that some of this info didn't sink/sync into my brain from watching your old vids in past 2 years. OK, I admit I am horrible when trying to retain info from reading and that's why I HATE reading, and still not very good when in seminar type class. The video with speech is usually most helpful out of the three types. MY BEST way is hands on experience. Unfortunately learning by hands-on-experience in stockmarket with real cash is NOT SMART. I tried a paper account but partly couldn't take it serious enough because they didnt offer live/real time trading, it was 24hrs delayed and have no news to offer with paper trading. I didn't have enough funds to open account anywhere else and was too determined to get started as soon as possible. What a fool I was. I have lossed of what is to me a butt load of real money…to most people its probably a minor amount. Do you have any suggestions ???
Hi Ross
I ve noticed that you mostly trade premarket. Is it safer?
Bro u the ๐
Hello Ross my name is Eric. This was an excellent, well-put together video on this topic of Bull Traps. The majority of beginner traders including myself get caught in bull traps. I used to get caught in bull traps a LOT from October to mid- December until I learned Price Action. I have seen so many consolidations at higher levels of resistance and 8 times out of 10, they end up in a big flush. I will get out going long when I notice weakness especially when red candles start popping up. When I see the confirmation of a flush starting, then I jump in and Short the stock.
Hi Ross, Thank you for sharing your knowledge to the community. I'm just starting to day trade and definitely learning a lot of new things from your youtube channel. I just have a rookie question. When I do a "Limit Order" on a stock, do I help Shorts bring down the price of a stock?
I was trading today on BBAI and false breakouts after false breakouts… funny how you made this video today!!! Thank you.
Appreciate your channel. Have learned a lot. Question though about YT channel – why arenโt your most recent videos showing in your list of videos sorted by most recent? Like this video, itโs not listed. Looks like there are videos not listed in the list of videos.
You are so helpful, my trading has come such a long way and I give the credit to watching your videos. You share so much of your knowledge and don't have to. Thanks for giving back Ross ๐ฏ
Iโd just wait for KAL to pull back to $7.41 then jump in
Great stuff, i never believed in the devil but now you have oped my eyes๐, thanks Ross
how about using a SL and no one could trap your assz
New sub here been reviewing your content, also new to day tradingโฆ who do you suggest as investing tool??? Thx migoโ๐ฝ (Robinhood).
Thanks for the content! I stayed away from Seco today those tails made me nervous!
Ross, watch your vids all the time and appreciate your work, was on tradingmonkey this morning and your name was mentioned and the monkey turned into a gorilla! Monkey could sure use your help.
I stayed away from the market today. It just got more scary the more I watched
I hope I got this right, Happy Belated Birthday Ross!!
Thanks for the useful tips on Bull / Bear Traps, much appreciated.
Thank you Ross
I would recommend anyone use the indicator "volume profiles" on trading view. It displays buying and selling volume vertically which can really help new traders identify those areas of high volume chop where heavy selling occured and will likely occur again.
New here and am stunned by the honesty and just information being pumped out you are amazing brother i am looking to start and after all my research you are the most informational and honest.
Great content.
Another great vid!! Thanks Ross
Ross, I just want to thank you for sharing your knowledge. I have been following you since 2017. I first ran across you via your book, then joined your classes. The experience was amazing. Life happened for me and I had to stop for a while. But now I need a refresher to just to get back on, as they say "if you don't use it, you will lose it" so…. I want to ask, for a refresher, what are some tips do you have? I still have my notes from 2017 but I know things change. Can you help me?, please and thank you.