Alright guys, so time for a midday market recap. We're going to go over the trades from today. Overall, today has been a pretty slow day for me only $468 after commissions and it just seems like the stocks that we were watching didn't give us any follow-through So we'll go over the watch list from this morning. and the trades I took.

I'm gonna put my P&L here so you guys can see it. So day 16 in the small account up four hundred, sixty eight dollars and sixty five cents. which is, you know it's not bad, it's A, you know it's it's progress. It's almost five hundred dollars and it'll put me up over ten thousand dollars in total equity as of tomorrow.

So I'll start tomorrow close to twenty three hundred or sorry, ten thousand, three hundred dollars and I'll be you know, continuing to make my way up towards twelve thousand five hundred, which is kind of my you know goal for the end of this week. But I don't know that's really going to happen I would need a two thousand dollar winner either tomorrow or Friday you know or two thousand dollar days and right now we're just not seeing very good follow-through in the market. So my watchlist this morning was pretty thin. it there really wasn't anything I was super crazy about.

If we go to the historical scan here, we can look at what the Gap scanner looked like right at 9:00 A.m. So I'll put this for 9:00 A.m. I Know - that's fine and you can see we had a CAT as our number one gapper leading gap or ACAT And what you'll notice is that it was trading a hundred percent sideways. So that's a buyout.

The stock was bought out by another company. There's no value in trading it, the value is now fixed I mean this is the price of the stock. This is what it's worth so that one is no trades. Next one down, any WR $40 stock 27 million Sherriff Flow gapping up and interestingly on this one despite gapping up pretty nicely as soon as the market opened, it really rolled over.

it just sold off pretty hard. Now something to be mindful of here is the the context of the of all trades for today. So overall market was gapping up and moving up pretty strongly now through 2016. One of the things that I noticed is that my best days were when the market was either opening basically flat or down slightly.

so opening within about 1% change. So basically opening flat and on days when the market opened really high I actually lost money Overall, in all of last year, days on the market opened over one and a half percent or two percent I lost money. So you know today's one of those days where the markets opening up and I was right away mindful of the fact that based on my trading statistics from 2016, today might not be a day that I do really well and I've got to kind of taper my risk and just be mindful of that. And you know if I see an A quality set up, that's fine.

I can jump on it, but there were no a quality set ups today and I'm not sure if that's because of what the overall market was doing or it just happened to be that way, but I chose not to force it. So I only took two trades today, traded two stocks and I kept it simple. I would have loved to have traded more, but there just weren't more opportunities. So next one down on the watchlist d Why SL Only 200 shares of volume so no trades on that one and then the next one was CDTI and we've traded CDTI You know, several times over the years.

I mean this. this is one that's been active. we've you know, made some money on it. so when I saw it was gapping up, you know I thought okay, you know this is one that is.

It's not exactly a former runner. it's not one that's made like you know, three hundred percent intraday moves. at least not that I remember, but it is one that's given us some nice breakouts. I mean here's well.

actually here's the day where it went from a low of 235 up to a high of 419 so you know that's almost 100% It's pretty big move. it wasn't really sustained, but in any case, when I saw it on the scanner, I checked I saw there was a headline and I knew that Okay, this is the type that I could jump on and so I did a very simple gap and go trade on this. So the gap and go trade is that we see a stock gapping up and we look to get in and ride the momentum. Now granted, this was already gapping up, let's see 18 percent.

so it was up a lot, but it doesn't mean it can't continue to run. So I if I get in a stock that's up 18 percent and ride it till it's up 28% I can capture ten percent profit. That's kind of the approach and so I saw that it was consolidating pre market right under 250. so we have the pre market high of 215.

I said okay, you know what? this looks good for an entry over 250. My only issue is that the 200 moving average. this purple line is right here at 297 so that's going to form resistance and look at how the price came right up to to 97 to 98 and then faded off that level. We did break just over the whole dollar, but we weren't able to hold over that level so that really was a very well respected level of resistance.

Alright, so as the market opened I saw this starting to pop up and here was the issue: I knew in my small account I wouldn't have margin and leverage on this trade because it was below $3 so I was like okay 250. Well I've got nine thousand, eight hundred dollars of equity so I can't take 4,000 shares but I could take 3,000 and for some reason I typed in a thousand shares I think I was gonna do I was like I'll take two thousand and then I'll add a thousand but instead typing it in for two thousand I typed it in for a thousand. So when the bell rang I pressed my order to buy a thousand shares at 2:48 pretty much right as the market opened and I started to see volume coming in, I was like yep, this looks good I'll jump on it I jumped in at 248 and you can see here how it's squeezed up. it squeezed up first 265 and then I was nervous because it came all the way back down to 47 and so when I saw that I was like okay I don't know, maybe this thing is just not gonna really open up.

maybe it's going to be choppy. So I took my profit I just got out of the name and and as it ran up to a high of three dollars I was feeling a little bit that hindsight regret. You know, looking back, hindsight's always 20/20 and I was looking back thinking I wish I'd held and I'd wish I'd taken three thousand shares I'm talking about CDTI So Clean Diesel Technologies so you know I ended up not really capitalizing on this as well as I would have liked to have and then I said well I'll watch this for the first one minute Campbell to make a new high I'll wait for it to pull back and then I'll get in for that first cam to make the new high and we get the pullback right here down to 285 and then we get the first candle to make a new high which is clean. You know this would have been my typical entry right there at 285.

Then we break up to 295 and we go all the way up to 305. Looks fantastic until his red candle. That brings us all the way back down to 262 and then to 255. That was one of the hardest rejections of the whole dollar that I've seen in a long time.

I Just not common to see that big of a flush. That was the high of day volume on that one candle. Five hundred and seventy thousand shares a volume in a one minute candle and most of it was selling. it was going down.

So you know I'm glad in hindsight that I didn't end up buying the first pullback and the reason I didn't buy that first pullback wasn't because I've been like it I did like it I was distracted trading or X I was trading a different stock and I'll go over that one in a minute. So you know the best thing about Or X was that it kept me out of CDTI and made a little bit of money. But really, the good thing is that it kept me out of that trade because it dropped fast and we've seen stocks do this kind of thing you know to a certain extent. but this was a pretty intense rejection.

So was something I talked about yesterday is the fact that stocks approaching whole dollars often break through them, you know? So I like to get in stocks at prices like 295. Anticipating that when we break $3 anyone who's short is going to cover and we're going to squeezed up to 305 310. So getting it to 95, stop at 289 Target 305 306. Let's a two-to-one profit loss ratio.

It's a quick scalp twig opportunity to capture some profit and usually it works pretty well on this one. What I think happened? This is what I think happened I think that it went up to 3 and I think that someone wanted to short the stock and accidentally, maybe accidentally, maybe intentionally, took a much bigger position than they intended to. This to me is almost like a market order for like, you know, a hundred thousand shares or something. Someone meant to take ten thousand.

They took a hundred thousand. They press the order. it was marketable and just went down because usually you don't see stocks go down that fast unless it's one really big order because one really big order just clears out the level two and it just drip. The stock drops and then of course anyone like me that was in.

it starts to panic and it's like whoa I need to get out of this thing. you know, bails out. and then that's the continued selling that dropped us down to 55. That's what I think happened and that's speculation I don't know, but that's kind of what it looked like to me even if I back out of this.

I'm on the 1-minute chart now. So let's just look at the 10-second chart for a second and we'll just see what this looked like here. right around was at 9:00 Let's see. so in one 10 second candle right here.

we had basically all of that volume. Let me zoom in a little bit closer on this. It was one candle that had in one 10 second period. we had 225 thousand shares of volume.

I might even be able to go go and even closer to one second. Let's see. let me see if I can really dial in on this one. So I'm just using Ecig Mill here to look at that I want to look at that one candle that just buried so many people? So let's see I can see the candle.

It's there's a one second candle and in that one second there was an order for ninety one thousand shares and I'll show you guys that candle. So that was the candle right there where it looked good, you know it was lit. Looks good. We were going up.

We broke over 302, three, eight, three dollars, 302 and then this one candle. All of a sudden it drops all the way back down so that to me looks like a market order maybe. and then it popped up for a second. but you know at that point traders were scared.

it just dropped to a low of 278 and then popped right back up to 301. And then this is when you sort of got the continuation of people bailing out, panicking and just saying forget it, That was scary I'm out of it. So I think that right there is is the one that did it. and like I said I don't know if that was one person I mean it was.

It was in a period of one second. So kind of looks like one big order and maybe a couple other people panicked out in that moment. But you know to be able to have all that happen in one second is it's very quick. So might have just been one big order and that was enough to really change the direction and the momentum of this doc for the rest of the day.

So we ended up coming up right to that 200 moving average and then selling off off that level. Now you know this person, the price right now on this one is 241 so you know I Guess that person is up a little bit 30 cents. Of course 90,000 shares times 30 cents would be $36,000 So I don't know. Maybe it was a big short, maybe it was a an accident, maybe it was something else, but in any case it was a very hard rejection of $3 and it just totally made this trade turn around.

So you know one of the things I noticed on this stock as it was squeezing up. you know at 265 270, 275 s I kept seeing 10,000 share orders going through a lot of really fairly big orders this today has. Let's see, total volume today is six million shares. so you know very heavy volume, high relative volume.

We had news so it was in play. for all the reasons we talked about low float stock, high volume Catalyst, you know, decent daily chart up until that resistance level at three dollars and just you know, lots of traders jumped on it and for whatever reason it rolled over hard. So after so yeah I got in CDTI 248 so you know I was in early and sold into the the first push and then regretted not getting. you know, not being back in it by the time I saw it hitting three dollars but then immediately it was like well you know what? Maybe that was for the best So that was kind of my morning on CDTI green in my shirt trader account but only by a hundred thirty dollars so that's better than red.

Alright so CGT I was on the scanners of course because it was hitting you know super high relative volume as you can see here squeezing up so yellow, yellow ler low float high volume up 38% Guess we hit a high today of about looks like about 50% it went up 50% and then we had or X Alright so or X was on the scans this morning as well. This was on our watch list because it was a gapper and it has a pretty decent daily chart. Alright so we'll look at or X here which also hit the high day scan. So when I saw or X Oh re X on the daily chart I was like this looks really good.

The 200 moving average is above us but it's not up until 519 and the price right now is is right now is 3 338 So I was like we've got room to move and it really looks pretty decent. We're curling off the nine moving average we've got kind of based out here gapping up just a little bit pre market high was 368. so when the bell rang and we started to see volume coming in at first I wasn't really watching it and then I saw saw that he was starting to spike up. Someone called out in the chat room and said hey, take a look at this and I was like yeah, looks good So I jumped in at 370.

Let's see I got in this one at 375 so I got in a little high you know through 374 I got in a little on the high side, but you know I thought that I had potential so I jumped in 4,000 shares. it pops up to a high of 89 and this was the moment where I got a little bit nervous because on the one minute candle at 9:35 we hit a high of 84 and then we pulled back a little bit just momentarily on the candle at 9:36 and as we broke through the high of 385 I wanted this to immediately break over 390 and go to $4 That's what I needed to see it do in order to feel like I'm in the driver's seat and I'm gonna hold this position. So as soon as it popped up there 289 and then immediately start coming back down I said no I'm out I hit the bid, bailed out of a full position and ended up making a 10 and a half cents of profit. so 419 dollars which is fine, that's good.

but again, if this had been able to get up to $4 it would have been a great trade. It just couldn't go and it got heavy and then a few minutes after I was out it dropped in this one candle all the way back down to 355 and now it's back at load a 339. So you know this is kind of the frustration today that we're seeing setups, but we're not getting follow-through So this was true I'm CDTI it was true on Orx and it was also true on a uph which I was looking at and I know people in the chatroom we're looking at it and thinking I should jump in this and I was like you know what I don't trust it because CTI just faked me out or X just faked me out I'm not going to go in for a third I'm just gonna accept that today is one of those days that the market is a little tricky now. although these lower priced small caps were tricky today.

We did see some pretty big moves in a couple of the larger cap stocks and STX was definitely one of the most impressive. So this is a stock that was gapping up Primo at high 43. Actually, pre-market high was 40. yeah, 40 to 94, so obviously higher price.

The problem with this stock is that I really can only take about a thousand shares of it. maybe a little bit more, but I'm nervous about doing that because what if something happens? You know what if I'm putting $40,000 into this when my shirt trader account is only at ninety eight hundred ten thousand? So I'm using my margin I'm using my leverage and if something goes wrong, it could get ugly pretty fast and so it. that's why I'm a little bit more hesitant on these, but you can see right out of the gates. The bell rang and this thing squeezed up from 43 straight up to 45.

So you know this is one that if you had the courage to take some size on it. I mean for those that do, and I'm sure that there are some in our community. this was a nice quick push from 43 dollars up to 45 dollars. so you could have made money on it.

but then you see here, even on this one. I'll scroll this back first. Camel to make a new high was 44 73 and that brought us back up to a high of 45 27. But then that was a doji candle.

see how we broke through the whole dollar here and then came back down below it? We couldn't hold that level. So and we came all the way back down to 44 65. So you're talking about a range in a one-minute candle of about 60 cents? 70 cents. That's a lot of volatility.

With a thousand shares, you're up down a thousand or seven hundred dollars. I Mean that's the challenge with trading these and that's why you can usually do better by using smaller size and holding through those whips. But then when you get to the point where you feel like you want to take bigger size, you end up taking 2,000 shares or 4,000 shares. You're having to hold through.

You know, thousand, Two thousand, Three thousand dollar whips, Where it goes up and you're up three thousand and then you go right back down to break-even and then it goes back up. and then you're back to break-even And these don't usually give you as much of an opportunity to sell on the ask unless there is a huge amount of volume going through at that very moment. And you know this does have a lot of volume today. It looks like right now we're at let's see I mean where we've got a lot of volume on this.

It looks like 28 million shares traded right now. So today is liquid. There are opportunities and you know it's The tricky thing is it can be hard to know which ones are going to do this like STX which squeezed up. You know three points and which are going to do something like NER W which looked just as good.

pre market. it looked just as good and it tanked. It dropped four points. So imagine that with 4,000 shares, you're down $16,000 you know? And that's that's the risk.

So you have to be really mindful of how you trade these stocks that are in the higher price range because the whips are bigger and you know when they go the wrong way it can get. It can get ugly really fast so that's why I am just more cautious with those names any WR STX both of those were you know, just hard. hard to really predict which way it's going to go and both of them looked equally good on the daily chart. One worked and one didn't.

and the rhyme or reason you know it's it can be hard to know why so you know that's where we're at today. Day 16 of a small Account Challenge up $468 Green is good. Even $500 a day is I mean that's great. It's that a hundred thousand a year over that.

more than that. so you know, slow and steady wins the race. But let's see. I'm going to answer some questions that you guys have about the trades from this morning.

Let's see, did you do all right? So Tom you send me an email and I'll check your homework there. so did you do? Let's see how do I check float with East signal you actually can't I use trade ideas to check the float or if you can I don't know how but there might. there might be a way but I use trade ideas to check the flow and one I don't use market orders be exit for the exact reason of what we saw happen on CDTI I've had times this year, well not this year but last year 2016 where accidentally took 25,000 shares instead of 2,500 It happened on two occasions because I used a limit order I got filled most of it but not the whole order. If I pressed a market order for 25,000 I would have filled the whole thing and the stock would have gone.

you know up quickly just the way we saw CDTI go down quickly and then you know maybe it would have continued. but if it came right back down I could have lost $12,000 or more very very quickly. And that's the risk with using market orders that if you do accidentally have a typo or something like that you will get filled the whole order and it can be brutal. All right.

So my process each morning is I've got my level two, I've got for level two windows and then what I do is I go ahead and I type out. You know the trades that I want to take the price I want to get in at I type in the share size now I can do one of two things here and I'll show you my what this looks like here. So this is kind of what this looks like. I've got my windows there and I've got my windows there.

So what I can do is I can just type in. You know the share size that I want right? here is you know 3,000 shares for instance, I type in the price and then I could just press the Buy button as soon as I'm ready to get in. Now if for some reason a stock suddenly pops up on the hide a scanner, you know right here. For instance: I look at it and I want to jump in.

That's when I just type in the symbol and just press my hotkey shift 1 by 2500 shares just like that and I can press that hotkey 4 times to get 10,000 shares which is what I usually do when I size up I don't usually go in all 10,000 at once I add and you know Commission's add up when you trade like that. but I prefer doing that because I don't always know for sure whether or not I want to get in. Sometimes I press the order for 2500 shares and I immediately realize there's a hidden cellar. Let's say it was showing 200 shares.

I fill the whole thing and you know the price doesn't move. it's just there's a hidden cellar there. So that tells me. Okay, well, let's be a little mindful: I press it again again again and now I've got ten thousand shares and I can see you know someone is holding it back with one of those iceberg orders so that can make me a little bit more cautious, which is why I start with 2500 and then I can add more and more.

So Ronald Yeah, you can use automatic stops. Well, they're not automatic stops. with fancy stock traders. You have to press ctrl T and then you'll put the stop on there.

so that's that's the best way to do it. Press Ctrl T and it'll put out a 10-cent stop. And that's true. even with my Sure Trader and Speed Trader account.

I can't I don't know the way where I could have a stop immediately created as soon as I enter a trade without having to press that button. All right Now with for me another question there: whether I prefer charts or tape reading I use the chart to establish my entry, whether or not I even want to take the trade. that's always based on the chart. So when I look at a stock, I'm looking, you know for the first one minute, Campbell to make a new high, the first five minute candle to make a new high, etc.

that type of thing. But then once I know that price now I switch and I look at the level two and now I'm watching the level two more closely looking to see if we have one of those big sellards big buyers, if we have orders going through and that type of thing. The version of trade ideas that I use is just the simple. It's just the the basic one, the simple one.

and yeah, rusty. I'm on Facebook live so that's on my cell phone. so April traders can hide their orders on level two. so if you're selling 10,000 shares, you can choose to only display a thousand shares.

and I don't even honestly know why that's even allowed. It doesn't really make sense I Mean it's not to the benefit really of retail traders like us when someone's hiding a hundred thousand share order. but for some reason it's It's an option and people do it so it can be a problem. If you're you know, trying to get into a stock and you don't realize that someone's hiding orders now the time that I talk about this a lot is when people will sometimes in the chat room say hey, I got email alerts that this stock is you know, hot today or this stock is going to be, you know, moving up and I say okay, well those email alerts usually whoever sending out that alert already has a position and has already got hidden orders all the way out.

So as soon as it starts going up, you're gonna run into those hidden orders and that's gonna really slow down the ability for that stock to move. The person who will probably make the most will be the one who sent out that email. you know the the newsletter and yeah, Michael there can be hidden buyers as well. I mean Absolutely.

And short sellers would sometimes do that if they need to cover a really big position, they may not want to show the market that there's a 50,000 share buyer, so they choose to show only 10% and it looks like there's only a 5,000 share buyer and that would be the motivation. they don't want to tip off the market that they're trying to. You know, unwind a really big position, so that's a great question. April Given the fact that you can have hidden orders on the level - how useful is level - it's still useful to me.

It's useful because I can usually tell when there is a hidden order and that lets me know that you know this stock is either that something's going on with it and I probably don't want anything to do with it. so that will indicate that I should stop trading it and look for something else. Number one, Number two. Some of these orders that are on the level two are completely legitimate.

where you literally have a 50,000 share buyer and he really is covering is short and so when we see that we rack that that shows strength and other traders are going to recognize the same thing and that can bring in some buyers. So you know, although you have to kind of take some of it with a grain of salt, I still find it to be really, really helpful and Blake you know I don't use Holly but I've heard a lot of people say a lot of really good things about Holly The trade ideas automated our artificial intelligence so I think it's definitely something to look into. It's not something I've really had time to get into. for me, you know I've got my strategies I've got scanner so I developed specifically for those strategies and I'm kind of like, you know my own I just I don't need the system to tell me what looks good I can just look at it and know for sure whether or not I like it and that works for me Rob An indicator that there's a hidden cellar is when you've got.

let's say three dollars on the ask and it shows a thousand shares and you're watching the time in sales and you're seeing a thousand shares going through 2,000 3,000, 4,000, 5,000 10,000 You're seeing all these orders going through to buy and the level two doesn't change. It still shows three 10,000 shares or three dollars a thousand shares. That's when you know there's a hidden cellar they're selling and you know not. you know, not letting not letting you move.

So yeah, everyone in the the Warrior trade and chat room I am on Facebook live so you guys can see over there. essentially you see the same thing. The only difference is that sometimes I pick up my phone and point it at stuff so I pointed either at the chart or my other monitor because I've got well right now. I've got six monitors and three laptop screens.

so Jason what are the colors on the level to mean? These colors differentiate each of the tiers. So when we look at the level two, when we look at basically, you know the market depth. First, we see the first level which is level one. That's the current bid versus the current Ask.

So that's one tier. And now Market Depth shows us the number of buyers and sellers on each side. So we've got a buyer. Let's say, on any WR at 37 96, there's a buyer right there and you know? Okay, he's moving down.

But what we don't know is there's a buyer at 96 who's that? Ninety Ninety four, who's at ninety five, etc. etc. you know. So sometimes we'll see that when we're looking at the depth.

there's multiple order stacks. Sometimes they're really closely together, other times they're spread out a little bit farther so you can see here. For instance, on this one green is this whole tear. The whole tier at eighty is all green.

Now there's only one price at eighty seven, one market maker. so there's only one one bar of color. There's two at seventy two at the same price. So that's that that forced here.

I call I choose to color mine like this. both an E signal and in sure trader and speed trader because for me, this is just what I started using when I first traded with Etrade. That's the way they color their tears and so I got used to it and I just kept it that way. So yeah, these colors.

there's four all at that one tier and only one of the second tier, one at the third, one at the fourth. All right. So let's see any other questions I can give you the link here. Let's see: I think you could check that link right there now.

I Also export into all of these recaps that I do they go on to YouTube as a video and then they also go into our podcast. So I know when I'm talking about visual stuff is not helpful for people on the podcast. but I know I spend a lot of time driving a lot of time in the car and so I enjoy listening to you know, trading related stuff. Not that there's a lot out there, but that's the that's the idea.

For those of you that are driving home and that kind of stuff, you can listen to the podcast. let's see. so Ruby do I use all my money in sure trader for each trade. The answer is yeah I do.

Is that risky? It is is being aggressive and being taking on a little more risk the way I turned 500 dollars into over 10,000 in the last 16 days. Yes, you know you have to be aggressive if you want to see that kind of growth, but you know for me, every trade I take is calculated. the risk is calculated. So I know, that even if I'm buying 4,000 shares of a $3 stock, it's $12,000 in in cash, right? And my accounts only nine thousand, Eight hundred dollars.

So I'm using a little bit of my margin using a little bit of that borrowed money from sure trader. But I'm not going to hold this stock for hours and hours and hours and risk that I'll be holding it through a halt. and I'm not going to. You know, hold the stock overnight and risk that there's news overnight.

So those are steps that I can take to mitigate my risk. I'm also not going to hold it until it goes down to zero. You know if it starts to not work then I'll stop out and I'll just bail and and that's it. You know I'll take the loss.

So my biggest loss so far in my small account I think it was it might have been the 200 known and I had a bigger loss last week I had a $600 loss I think it was on which one was it I can't remember but I did have a loss last week cat B it was C a TBI lost five hundred and seventy dollars and that was my biggest loss so far. and on that trade I was holding I think four thousand or six thousand shares. so you know I had a good amount of money in the position. but I cut my loss quick and that's the way you have to do it.

So obviously once you get to a certain point, you know if your account grows to twenty five thousand dollars or thirty five or forty thousand, you don't necessarily want to be putting all of that money into the single trade. You can kind of taper down your once you get to a certain account size. But when your account is small, you need to do everything you can to grow that account and to build up that buffer. And that's what I've been doing this the last 16 days and I've been really fortunate that I've had 16 green days.

you know I haven't had knock on wood I haven't had any red days but I have had some losses and you know the the technique for me is just to keep the losses really small and even some of the winners I have kind of kept them small. You know if I'm up 15 20 cents I'm just like, you know what? I'm just gonna take it. take the money. I'm not gonna push my luck.

it's a small small step forward. You know each of these small steps forward are kind of like little bricks in the foundation. and this foundation. you know I am intending to build this up to $100,000 So right now I'm nine point, eight percent of the way there and I just have to go brick by brick and this is something I'm going to be doing for you know, all of 2017 it's gonna be one trade at a time.

one day at a time and you know I've got my eyes set on this big picture. but you know we'll see how long it takes me to get there. And and you know I just got to stay focused. So as the account gets larger, I will have to taper back the risk a little bit.

Make sure I don't get myself in a situation where I lose ten thousand dollars on a single day. You know that type of thing has happened in my big account, but I can't afford to have that happen in this small account. Not right now. Anyways, maybe once I get into the forty fifty thousand dollar range, you know.

But even then to take a ten thousand dollar loss it would still be a big a big haircut. So hopefully I'll be able to. You know, keep myself smart and not let that happen. But you know if it does happen, well, you know we'll have a video about it.

We'll talk about what I did wrong or what happened and you know kind of the game plan because losses will happen hopefully I just have been able to keep them tight. Alright, so let's see Kevin how do I judge the amount of shares to buy on a trade? Generally, at least right now. I'm taking two thousand to four thousand shares in my small account and it's pretty much because I know if it goes the wrong way and I lose. Let's say I lose 20 cents I'm losing like 800 dollars at most and I can handle that I wouldn't really be able to handle a lot more than that.

So that's kind of what I'm doing is I'm thinking about okay, you know, exactly like Roberto said, what's the distance to my stop and how much am I willing to lose if this goes the wrong way. You know in my big account, I'll risk 5,000 to make 10,000 I'm okay with that, but I'm not I can't do that with a small account, different strategies and David yeah, sure, trader gives six times leverage and and I use it. Absolutely yeah. So as of right now, Mike Let's see: I've got five hundred and forty nine dollars profit before commissions and my buying power is 61 thousand dollars right now.

So you know the buying power adjusts intraday based on your gains or your losses. and David yeah, I mean there's a limit to how many shares I could take of some of these stocks I wouldn't be able to take a hundred thousand shares I Mean you can see that what happened, someone tried to take it. looks like someone took maybe 90,000 shares of CDTI and the market responded by dropping 30 cents instantly. So that tells you that that market on that stock was not liquid enough to allow for a 100 thousand share order.

But can it allow for 5,000 shares? 10,000? Easily 20,000 Probably. Maybe it would be better though to go for orders of five thousand or two orders of 10,000, But you know you get to a point where you can't continue to scale the strategy and every trader is going to find that at one point or another. And that's when some traders decide to start to add other strategies into their you know kind of tool belt where they might start trading some of the higher price stocks and taking bigger size of them. Other traders are happy to stay where they're at, making to three hundred thousand dollars a year trading.

You know this price range, so it just kind of depends on the trader and and their ambitions. Zac At this point I would say about 10 percent of the account is the most that I'm risking. so you know it's $900 $1,000 right now. And yeah, if I if I get stopped out, it's going to be a bummer.

But I can handle that. My account can handle that. I can bounce back from that, but you know I wouldn't want to lose 2,000 so that's kind of the max. and Matt you know I don't mind like I know that We certainly will see a lot of the same questions you know over and over again in the chat room.

There's people coming in, you know this is day one for some people. This is our first day in our chat room. This is one of their first days trading, so they've got a lot of questions that some of us might think. Well, you know we've heard that we've seen this answer.

We know when you know this is beginner stuff, but at the same time you know each time that I explain it. my answer kind of evolves and becomes more thorough, more detailed. So and sometimes depending on the day, there's a an example that can help explain the answer. So I think that it, you know, hopefully helps.

And yeah, I Often say stocks are too crowded and so that's the other side where you could have a stock that becomes crowded like gee, Lbs or Et RM or Idx gee. Those are stocks that have a lot. Well, not today necessarily. But they've had a good amount of volume not enough to accommodate a hundred thousand share order, but a decent amount of volume.

But at the same time there's not a clear direction. and that's kind of the struggle where sometimes when stocks have too much volume, you have too many different opinions, all trying to trade the stock. So some people have a really strong short bias. For whatever reason, some people have a really strong long bias so it kind of becomes tug-of-war The strongest setups are going to be stocks where you have an imbalance between buyers and sellers.

that's very clear in one direction. and that's stocks that are going to go straight up or stocks are going to go straight down. That clear imbalance is usually the result of fresh breaking news. So like when we're trading a stock that had news four days ago, you know, like gee, lbs, there's over today.

There's no news on it. You know there's nothing to account for. The move traders are just, you know, kind of playing tug-of-war with it. There's not a very obvious reason for us to have an imbalance.

Sometimes that imbalance can come simply from a really strong technical breakout. But and a stock that I'm gonna keep on my radar this week as my OS I'm not sure this one's really gonna I Don't know that it's really gonna move, but it's the type of setup that we've seen in the past. I'll show you guys the chart where you know the first daily candle to make a new high puts it puts in a quick move back up. You know it's like a bull flag back up towards 405.

My concerns with the setup is that it retraced more than 50% of the big green candle. so we came all the way down to. you know, this level. We're tracing almost.

You know, 66 percent, seventy percent. So they're trace mints. A little bit too much. We're a little below the nine moving average, but it's one of those stocks that I would keep on watch.

So what I do is I scan for stocks in the last you know 30 days made a 100 percent move and this is one of them. Made a 100 percent move and is also retraced is also holding up above 50 percent of that move so this one is dipped down below that. But I look for those stocks because I know that they could potentially have a technical breakout first. cantle to make a new high.

Anyone who's short decides to cover long traders, jump in. You know to try to, you know, squeeze. You know, get that opportunity to, you know, ride the momentum. squeeze up to 405, you know, maybe five, Whatever.

59 And that's the type of thing that we saw on Gee Lbs. We go back and look at this one. You know the first candles to make a new high after that pullback, you know? check this out. Very very similar setup.

a big retraced Minh all the way back down and then this candle. right here. We went from a high previous day's high was 326 or 420 and we went all the way up to eight dollars on that candle. you know? So that right there I mean that was an opportunity and in that day even though the candle closed as a doji, we had 6.3 million shares of volume.

So that was a day that in that that day was on November 28th. that was an opportunity and so that's the same type of thing I look at on my OS there's a few others that are similar. Maybe they work, maybe they don't. You know, maybe it breaks out, maybe it doesn't.

but if you kind of keep a couple of those on the back burner, you can watch and if they start to pop up or I see it hitting that high a day scanner I'm gonna see that and I'm gonna be like yep I Remember this one, it's on my watch list I'm gonna jump in quickly, you know and that's just looking for those quick opportunities in the market and that's what I need to do to grow this small account. Find those opportunities, capitalize, lock up the profit, and then you know, look for look for the next one. So let's see. Yeah I trade to pre market high for the gap and go.

but I don't trade pre market I Don't read pre market for a couple reasons. One, we don't usually have that much volume. Usually pre market is pretty thin. Number two: a lot of traders don't know how to tray pre-market especially student new students.

During the chat room, you know they come in, they don't know how to trade pre-market They end up either getting into a position not knowing how to close it, just getting confused flustered. I Just think it's generally better to wait till the bell rings I'm seeing a lot a lot of hearts going through on on Facebook Live someone's pretty pumped Tran A small account day 16 up $468 Slippage in my favor. That's a good question. Very rarely you don't really get slippage in your favor.

The only time you would is if you press in order to buy and for some reason for whatever reason someone presses in order to sell at the same time and you kind of get filled lower than you expected. That's that's the only. That's the only time that sometimes works for you, but usually it doesn't. 4:00 p.m.

tonight Jeff is going to do the Warrior Pro class I Yesterday I drove to go get new glasses and it's it's really incredible because this is the first new pair of glasses I've had I think in like three years and it is ridiculous when I put them on. how much better I see things even like the woman's face who helped me get the glasses I was like whoa I can I I Didn't realize how how much of an issue it was. So I drove through like the snowstorm. you know to get these glasses it was like a 4-hour Drive It ended up being ridiculous but seems like it was worth it.

So and I have my other glasses also that I'm gonna use sometimes. but anyways. so yeah. so I didn't do Warrior Pro yesterday Mike did yesterday Jeff's gonna do today and I think Mike is going to be doing tomorrow as well and then I'll be back next Tuesday for Warrior pro Tuesday the 31st which will be our last day of January last day of January So hopefully we've got you know some good trades here for the next couple couple days.

I'm up to twenty seven thousand five hundred on the month. My best month last year was just under thirty five thousand dollars. So you know fingers crossed that maybe I get in $8,000 winner sometime between. well, the next four days and I can make a new, make a new record 35,000 40,000 It's possible it really is all I need to do is you know, wait for the right set up and then strike.

You know that's the thing. you got to wait for those windows to open and then when they're open, you hit it. Alright guys. so um, any other questions: Lunch hour here I'm not I'm done trading for the day and you know John he was in the room earlier today I Know he's having a great month.

One of the best months he's had in a while as well. Last year he did $160,000 and percentage-wise he's way ahead of where he was in January 2016 so he's already and just the same as I am doing really well this month and he traded the first hour and then he's out. He's like I'm not going to push my luck I'm not going to over trade I'm just gonna trade the first hour and then that's it. You know that's the way you know, that's just the way it is today.

I use TweetDeck and I See people on Twitter and you know they're like I'm out for the day. Nothing's working a you pH not clean CDT I you know I look at that a you pH dropping again here I'll show you guys the chart. this one's also dropping pretty hard I don't know what the deal is so just just kind of a tricky tricky market right now. and this is the time when you need to know when to go slow.

Now you know. Yesterday I'm driving through the snow and I see now I've got seen people passing me. they're going fast and I'm like you know what you do your thing, You do what you want to do I'm going to take it slow I'm gonna be smart and I'm not going to end up in a ditch. That's the same thing with trading I take it slow.

Some days it's not the day to go. 65. Yeah, you can go that fast on the highway, but some days you just can't. You got to go slower.

You got to taper back your risk and be smart. So you know the thing is, like trading kind of teaches you these things about yourself that you may not have realized that ability to have that sense of mindfulness that you know today is not my day. and I've even have this in my just day-to-day life where I start to now because I've become more in tune with kind of how my emotions can impact my decisions I'd become more aware of it. You know it's like, you know I go out I've got a flat tire and it's like okay I can either take this as an opportunity to lose my mind and get really frustrated or I can say you know what.

Today's a day where I'm just gonna be taking it a little bit slow and that's what you got to do. You know you can't fight these things I hope that you know with older as I get older, this will get increasingly easy to handle. You know some of these things that you know when I was younger would really frustrate me. Even you know the red day is losing money.

It's frustrating. You know, getting into four trades in a row and having none of them work out the way you want? it's frustrating. But that's part of training and you know you can get frustrated. You can get you know, I'll you know, bent out of shape about it, but it's really not worth it.

That's the thing with this career. You got to be able to have kind of an ability to compartmentalize the losses where you're like, okay I lost a little today I'm just gonna bottle that up. Put that over there, not stress about it. I'm gonna enjoy the rest of my day.

All right guys. So that's it for today. I'm gonna upload this to Youtube and put it on the podcast. Any questions you guys can shoot me an email and I will see you all first thing tomorrow morning.

All right, Thanks guys! Let's be honest, if you made it this far, you must have really enjoyed that video. So what's stopping You subscribe right here and get email alerts anytime I upload new content. until then, Happy surfing!.