So great question by the way, from Gustavo Anaya So and I like this question and and it's always it's always a point of discussion. So Gustavo says I feel like stop losses are a double-edged soldier. It can protect you, made the bounces very quickly. Interested to know on how does everyone manage this? Do you use a stop loss to take the loss knowing it can bounce? or do you risk it and exit manually once an alert was triggered.

And if yes, how much time do you give before you decide it won't bounce. So like there's many. So the thing is, like many of these stocks, many of these stocks like like Mara was a very good example. Okay Mara this morning cryptocurrency stock um, kind of trend it up and it actually hit the Oracle level at 10 14 and then that was about mid-morning and then it pulled back hard, hit the Stop and ultimately worked.

Now I use Mara as an example because yes, it pulled back mid-morning and we were going over that one live with the steady trade team and it didn't work. Took the Stop and I was like ah man and it and then came back and ran. But here's the deal. Late day Bitcoin fell apart in in Mara got destroyed along with all the other cryptocurrency stocks which I keep saying the cryptocurrency stocks are weed stocks 2.0 but the point is, hedge you taken that morning idea and been stopped out.

Then you wouldn't have risked the washout into the end of the day and you would have controlled your risk. Now it's frustrating and it's annoying. Okay, and and I get it. One of the things like like Gustavo calls stop loss is a double-edged sword I Don't consider stop losses a double-edged sword.

Now what? I Do consider a double a double-edged sword is volatility. Okay, we trade some of the most volatile stocks out there and the reason we trade them is because they make big moves. Now sometimes those big move Hopefully more often than not those big moves are to the upside versus to the downside. But in the analogy I often use is is listen, if you don't want any volatility, then trade quote unquote real stocks like Apple.

and like best case scenario, one or two times a year Apple will move like two or three percent so it's like you're You're kind of in this position where you you I don't want to say forced, but if you want to grow a small account like I guess force is the right term, you really have no other option than trading extremely volatile stocks. Now you you gotta take the good with the bad. You know it's like you can't If you want to trade stocks that can double in a day, then you have to recognize that that there's a good chance that that stock could Spike hit your signal, you take the entry and then it collapses, hit your stops and you move on. But there's so many recent examples like Friday on mgrx Okay, remember who who remembers mangoceuticals? Oh glorious.

Okay. mangosutical if you were on pre-market prep Friday morning we had some fun. Uh, mangosuticals. It's funny I don't even know how I knew like as soon as I went to their website.

it's very ambiguous and vague. but as soon as I saw like the names and like I'm like what is this like Ed meds I didn't even know what it was. So the point is, Mgrx was absolutely beautiful on Friday Okay Inab Absol I n A B absolutely beautiful or I'm sorry Mgrx I said Friday right Mjrx was Friday Inab was Monday Now I want to bring this up because uh uh Bxrx Okay, Vxrx yesterday was exactly the same thing. Okay and again, those of you that were on pre-market prep, you know this.

We talked about this. so Mgrx on Friday was glorious. Ridiculous risk to reward. like 20 cents of risk for a dollar of upside Inab very similar on Monday yesterday Bxrx: sketchy biotech low float had press release.

Bxrx was literally a box Checker across the board and it didn't work. It didn't work. But the point is if you trade high risk reward setups, if you trade quote unquote box Checkers you're gonna get those scenarios like like like if if the only three trades you made were Mgrx, Inab, and Bxrx, you'd be great and you'd probably be very nicely green. So but but here's the deal.

It only works if you keep those losses small. Okay, and when we talk about the many, maybe you've heard this I don't know if it's an analogy or if it's a a limerick or a rhyme. A limerick. Um, so A A A A thought idea.

Okay, a thought experiment. The Rule of five. Okay, so when I talk about the rule of five we're talking about, let's let's think about you trade once a day which is pretty much what I recommend. And if you make one trade a day, five straight days and Monday you lose a hundred bucks.

Okay, we're assuming you have small accounts Monday you lose 100 bucks Tuesday you lose 100 bucks Wednesday you lose 100 bucks Thursday you lose 100 bucks. So at this point, like it's absolute despair. Okay, four straight days you've lost money. Okay, nothing works.

You're like penny stocks. I Trading is a scam. You know day trading doesn't work. You know all these all these thoughts go through your head and justifiably so.

But what you did is you. You contained your losses and you didn't risk disaster. So let's say you have a three thousand dollar account, just picking a kind of average number for a small account. Four straight days lost.

Every trade you made. Okay, you're in for this thought experiment. this: Limerick You're trading once a day. every day.

Lose, lose, lose. Then Friday comes. Let's go back to last. Friday Mgrx Okay, so Friday comes and actually let me bring up my notes on Mgrx and and let's go over like like the actual you know alert and trade that I sent on Mgrx on Friday Let me bring it up here.

So this is last Friday morning 9 17 Am today's alert is Mgrx. we went over it in pre-market we went over it in the Steady Trade Team webinar. I said the entry was a buck 70. the target was two plus or actually meant High twos I actually cut that out.

It should say high twos but and the stop loss is a buck 50. so think about that plan. The entry was a buck 70. the the target for profit taking was the high twos and the stop loss was a buck 50.

20 cents of risk for a Dollar Plus of upside five to one risk reward. Then I gave the notes. Wow what a piece of trash scam. Go to the website and when you want to laugh.

That being said, it's low flow with news and volume. We went over the 150 entry, blah blah blah blah. Okay, this thing literally checked every single box. So a buck 70 hit on Mgrx and it went to three dollars and 18 I believe if I remember it? Yeah, 318.

So if you would have followed the plan, you would have bought it above 50 70. You would have sold in the high twos. You had plenty of time to get out. Sure it went to 318..

So now you make a trade that got you over a buck a share over a bucket ship. So let's go back to the rule of five. So what happened in this scenario If you kept your losses fault small, well what happened is now Friday comes and you made 500 bucks on Mgrx and you're now green on the week Now when I when I When I Talk about this scenario. The first thing people say is, you know, 100 bucks on the week? Okay but but the point I'm making is none of you are here to make 100 bucks a week.

You can make 100 bucks a week selling stuff like a yard sale. Okay, but point is, if you the the and this is where five hits home, it only works. The scenario that I laid out. It only works if you take a hundred dollar loss on Monday and on Tuesday and on Wednesday and on Thursday.

It doesn't work if you take a 500 loss on Monday, a 200 loss on Tuesday a a a 150 loss on Wednesday and a 200 loss on Thursday. Okay, it doesn't work. It only works if you keep those losses small. You keep trading the best stocks and keep trading the best setups and then when you get one, you get one and then you're green on the week.

So uh, Sai was a buy today at 380 and it never hit the stop level 350. It ran 470 and dropped in the five minute candle. I did not sell. had a couple opportunities to sell at 450 in midday but did not.

looking at a late day of high day. in your opinion with a hot sector of AI would you have held overnight or sold at the clothes for a small loss man? um so great I love it I think what you did I like what you did man. So basically sure you could have checked in the profits which there's Remember there is nothing wrong with taking profits I mean you were in it 380 you were. You could have sold at 450.

nice profit. Okay now what I think you did is what I would call aggressive. Okay, like like you're like you, you and and something whenever I talk about being aggressive I always want to explain that aggressive isn't bad. Okay, um, we've often talked about the hot Hand Theory Okay, another thought experiment for you.

Okay, hear me out, hear me out and and I'll I'll close this eventually I'll close the loop. So the hot hand Theory So Randy's trade was aggressive holding overnight the hot hand Theory says it's it's like a basketball analogy. that's that's usually where I go. like if you got a guy.

like if I'm coaching the team I've coached youth basketball I miss it but like like if I gotta if I got a kid on the floor and he's five for five. Okay I mean he's just throwing up everything but everything that he throws up goes in. You know what I'm gonna do I'm gonna call a timeout and let's say it's Randy I always go with Jimmy I'm gonna go with Jimmy I was like Jimmy so so I'm gonna sit there and I'm gonna look at all these kids and I don't care how old they are I don't care if they're Pros or whatever I'm gonna be like whatever you do you get Jimmy the ball. he's five for five.

he's throwing up bombs but everything goes in and now if that is you like if you had a really good day things are clicking. you may you're up thousand bucks. you're up a couple thousand bucks. Like just things are clicking.

Think you got a really good week going. That's when you get aggressive now. Vice Versa If you're if you can't like like you're missing layups like nothing is working then what you need to do is pass the ball to Jimmy Okay and I'm gonna tell you that like if you sh if you shoot a if you miss the third layup in a row I'm calling time out and I'm gonna be like Randy if you if you I don't care if you're wide open zero Defenders Like the nobody I'm like you do not shoot the ball, you're over five and you miss three laps. So that's when you don't get aggressive.

So we now defined aggressive versus conservative and let's talk about ultimately, your trade your trade on Sai It held the level, never hit the stop. Artificial intelligence is Hot. Freaking. Microsoft Microsoft Guys, you realize the significance of Microsoft 2.2 trillion dollar market cap stock up eight nine percent and held all of its gains.

All of its gains. Microsoft Basically closed at the high of the day because of artificial intelligence. So I told you I would I would bring it home you. You took a very aggressive trade.

Uh, a decision holding a sketchy artificial intelligence stock overnight. But you're green? okay and it's the hottest hot sector that I think we're ever gonna see in. you know I've said this and I've said this since late January early February If you're gonna hold a stock overnight and if you're gonna take the aggressive course of action, then you know what. You do it in a hot sector play.

You do it in a low float stock that that closed above the stop. Yeah, I mean I mean those are all the things you look for. so it took me a while. but Randy if you're comfortable with it now, this is the second subset of something that we always talk about and this is something a lot of people forget about.

Okay, look at Cxai this morning and I say that because if you're gonna hold these stocks overnight, okay, you gotta be ready to get up at 3 45. Okay, and that's something that it's funny because I never really hear people talking about this that much. but if you're overnighting, you know. NASDAQ NYSE Stocks volatile socks.

You gotta get up at 4am. Well, 3 45. Okay, yo, this is one of the things with like Otcs and I always want to be clear I'm not like an OTC hater. Okay, but but but P You gotta remember there's a reason that a certain subset of Traders only trade Otcs because they don't trade in pre-market Okay, these guys want to sleep in.

Okay now now Otc's can trade in pre-market but barely. They don't do anything. They basically wake up at like five minutes before the close. Okay That's why the laziest people.

That that's one of the big reasons I bash Otcs because the laziest people in the world trade them because they know they don't have to actually get up early. Now what's great about Nasdaq's especially heavily shorted uh uh, low floaters. If you're willing to get up early, we all know about the 4am squeeze. I Mean you get a hot sector play that closes at around the high of the day? How many do you see? Rip at 4 am? I Mean it happens over and over and over again.

So that's the other thing. Randy Just set the alarm clock and listen, it's not that hard. it's not that hard. to get up at 3 45 Eastern Like people, people act like it's the end of the world.

I mean I get up at 4 45 Eastern every single day, seven days a week. Okay, it's not that hard. So anyway, Randy I like your trade well done I I Think there's a good chance you get that 4 AM Gap up. So how do you know when to take profits is Peter Nardala.

So Peter you know. Listen, you know I do these these these webinars for a reason to teach you. Okay so I always hate giving this giving this answer because it always sounds very excusey. but there is a a A A a prophet, stop, loss and and risk management methodology that I teach.

but I developed over a decade. it's called the three to one risk to reward methodology. So now I teach it every day. We go over it every day if you're on pre-market prep.

if you're in the steady trade team, we literally go through it every single day. Like if you if you look at Randy's comment okay, notice if you look at what Randy broke down, look at what Randy broke down and you can just scroll up. He broke down the risk management the three to one plan that we had this morning. If you notice he, he lists it all okay 380 Entry 350 stop and the goal was five.

Okay now Randy chose not to take profits because it ran up to 470 and didn't hit five. but understand that was the plan. If you listen to the plan, there was 30 cents of risk. Okay, 380 Entry 350 Stop.

What was the goal? five? Okay, Buck 20 of upside. so actually four to one basically. But the point is that every time before we enter a trade, we figure out all of these levels based on technical analysis, based on the chart history and based on the range of the stock. Okay, listen, if you're trading some true penny stock like Crtk Okay you you might have a three cent risk and a nine Cent goal, but it's it's.

kind of a big picture thing, but we do it every day and we base it off of the chart. And like the best example, I can give you without going into a four hour webinar because it's my bedtime. Well, in an hour and a half, it's my bedtime. But there is a methodology and we did it with Sai We did it with Mgrx, we did it with Inab, um, Cxai, etc etc.

Good stuff I'd like to. You know what? I always like about these and those of you you that have been here before like pre-market prep and I know I've mentioned it many times this morning or this morning this evening. Like pre-market prep is like like very focused on entries and exits and like how do we and what levels do we trade these stocks? What? I Like about tonight, you know we talked about the psychology of you know the rule of five. We talked about the psychology of three to one risk to reward.

We talked about the psychology of when to be aggressive, when to be conservative. Okay, so that's what I always like about these. So thank you guys! Um, it's always fun. like like it's crazy you know I've been mentoring Traders for eight years now.

I've done over 6 000 live trading webinars I started my day at 4 45 Eastern I'm gonna do it again tomorrow but I always look forward to these and it's just like what's crazy is like every single day. I Get messages from people. they're like you changed, you changed my trading, you changed my life. You know all of these things and that's my fuel.

So that's why I do what I do. Hopefully it was a help Jay nice Jay says I've been trading breakouts taking five percent profits, two percent loss that awesome Jay thank you Jay So Jay like, um, interesting. So Jay is kind of trading that rule of five. very nice.

So he's taking small losses or small gains, but small losses. So so Jay is basically trading these breakouts on the best stocks, small losses, big gains, and he's profitable. Listen guys, that's what it's all about. Okay going and I know I've harped on the rule of five a million times tonight.

last time, your goal your goal as a new Trader is to be green. Okay, that's your goal now. Whatever. Remember, Ah, half of you probably left.

Remember in the rule of Five example, you're up a hundred bucks on the week. Okay, you're not retiring on a hundred bucks. You're not. You know paying off your debt on 100 bucks a week.

you're not traveling the world on 100 bucks a week. but you know what you just did. You're green on the week and that is something that so many newer Traders they look past because this is what the new Traders do the new Traders and thank you Jay This I'm going to close this one strong. What new Traders focus on is the travel in the world the Lambos the Yachts The Mansions zero debt retiring.

you know at at 25. So what so many new Traders do is they look past the process. they see all these all these amazing things and jets and Yachts and all this okay and they never actually learn how to trade and that's why 90 fail. Okay because they're looking over here and some dude that pulls up in a piece of Lamborghini and they're like well I want that but they don't.

They don't take the path to get there to make you know 250 your thousand dollars trading and you know how you get to the point where you can buy that or you can retire or you can travel around the world. The first thing you do is you learn how to make a hundred bucks consistently. That's what you do because you know what you can do. If you can make a hundred bucks a week, two three, four five, six weeks in a row, all you got to do is start adding a little more size and all of a sudden it's a thousand bucks a week.

Hey, thousand bucks a week That can change your life. Okay, that's you know. Four thousand dollars a month. Okay, now again, it's not yacht money.

It's not Lamborghini money. It's not Mansion money. It's not retirement money. Four thousand bucks a month.

Hey, all of a sudden things start changing. but it's because you spent the time to learn how to make a hundred bucks a week which is 400 bucks a month. Okay, so that's our goal. That's what I teach and that's why I drive people to think long term and think about the process because you can't make a thousand bucks a week until you can consistently make a hundred bucks a week so you can look past that and and want all the fancy stuff.

But you'll be part of the 90 to fail because that's what they all do. All right guys! Have a great night and thank you Jay and Well Done Jay He's been profitable most of his last couple weeks. Keep grinding Jay all right guys See you tomorrow morning!.