Let me ask you a difficult question: if you've been trading for 6 months, a year, or even two years, why do you think you're still not yet profitable? I've made so many videos on trading strategies and live trading. However, let me tell you the truth here. The reason most Traders lose is not because of their strategies as a retail Trader myself I Know that the biggest enemy to my trading account is me, but you guys know my story of how I became profitable over time. The answer is actually extremely boring, yet simple is that I really forc myself to create a trading plan every single morning and I stuck with it.

But don't just take it from me in this video I Want you to learn from the perspectives of some of the most successful Traders out there. These Traders have made tens of millions in their verified profits, but they all share one thing in common. following a trading plan that they created for themselves. These Traders share a lot of valuable tips about what it really takes to become a profitable Trader So I strongly encourage that you be an open book.

Be ready to learn and get ready to improve your own trading. Remember to give this video a thumbs up and let's get started! The first Trader I want to introduce you to is Lance Brin he's a verified eight figure Trader who used to work in a prop firm in the trading industry Lance is known as the mentor of millionaires as he has coached and guided many other famous. Traders You're going to learn from Lens how to apply Trader psychology to become a profitable price action Trader So breaking down that capitulation play uh, what what should you look for on the daily chart so audience can kind of look at it? What do you look for on the daily chart and what do you look for intraday for your entries and your um executions and exit? Yep, Yep. and so I think for a lot of this, you can almost separate it into two buckets I Want to find the stocks that were really, really, really steady, strong or or even ex exorbitantly strong that are then panicking? or I want to find the stocks that are really, really weak and then are panicking and having their last flush out.

And so one thing intellectually that's really, really important for Traders to recognize is the stocks that you trade are so, so, so important. If you gave me a random list of tickers from the whole universe of stocks, I would never, ever be able to make money I don't think any Trader would be able to make money. You're only able to find Edge in very specific tickers in very specific situations. some of those tickers with Edge or what we call Inplay stocks that might be be because of a fresh news Catal That might be because of they a new ticker iping.

It might be because of a technical pattern. It might be because of um, different order flows due to imbalances and quad witching or something. and so we're really only trying to touch and trade tickers that are doing something exceptional. And so with these capitulation trades I want to find like the top 5% of the strongest stocks that then out of nowhere tend toay Panic or I want to find like the bottom 5% of the weakest stocks that are left for dead and no one wants to own anymore and they're just being uh thrown out as as Unown uh and like one of the analogies I would I would give is last last year I think it was um yeah, mid, maybe like spring 22 uh Chinese stocks were getting wrecked Alibaba was getting wrecked uh, Pendot was getting wrecked and I think it was the JP Morgan analyst that essentially created the Bottom by coming out with the research report saying that Chinese stocks are uninvestable and the second you start to hear that rhetoric.

So these were companies that I think Alibaba touched 300 something at at the highs less than a year earlier and now it was being puked out at around $80 a share in under a year. And that is a mega mega cap company. and so what happens is that pendulum of of say bullishness to bearishness. It was going so far bearish like again for an analyst to come out and say these stocks are uninvestable.

It's literally your job as an analyst to figure out what the value is and advise people on investing them, not just say throw them all out. That's garbage. So that just speaks to how crazy bad that sentiment is at the time. And so if you read between the lines of what I just said there, we can start to sus out some of those variables, right? So first of all, there's sentiment.

and I would say sentiment on those stocks was approaching negative 10. Then I also touched on the scale of the move right? So these were super strong and popular and alib Baba was at 300 or something. Now that was cut to I Think it. I think it was around 80 bucks when this happened.

So that's a massive move in a couple of months. and then if you were to take that specific move over the prior days, I think the stock went from like 100 to 70 bucks or so in a matter of like a couple days or a week. So these are all really important variables to justify just how quick and extreme that move was. Now another variable that I like to consider in these capitulations is volume.

The volume on this was enormous and so what's happening with volume is you get all these people that might have been long these shares since 300 bucks, 200, 15 and they're finally throwing in the towel and you get this massive share turnover. So the average price. All the people that were ever going to sell, they're puking and it's people now buying it at a way lower average price. and all the people that were going to hold on forever.

they're still holding. So now you have new people in this vacuum where everybody that was ever going to sell just panicked and sold and you've got new money in and that average price of the holder goes way way down. And that's so often that dynamic that creates a bottom. and guess what, When you're at Peak bearishness and the stocks are uninvestable, there's only so much further you can go, right? Essentially, everything bad is being discounted and so that's the concept.

But then the question is, how do you actually trade that and execute? And so what a lot of people will notice is some of my systems when you have Inplay Tickers can be very, very simple. So if you're doing a swing trade in an Inplay play ticker, if something's selling off day by day by day, what I'll look for is a break of that. Trend How do I Define that break of trend? It might be as something as just getting above prior day highs. and because all of a sudden if you're going down, down, down, down down you have that first up bar.

A lot of people are going to start to pile that on and right when they do their end of day scans and they look over charts, people are going to say oh my God like Alibaba has been down 5 days in a row. we just had a huge puke out and volume. now we close strong and a lot of that is what creates that new feedback loop where it's people now saying hey, maybe we we put a turn in and you're buying before all the confirmation and everything else and so a lot of what I do is that concept on different time frames. So even if this was intraday, if some stock pukes out intraday I'm going to be looking for that break of Prior bar highs then I do a very simple stop which is just a trailing stop of break of Prior bar lows.

Yeah, so that means uh, as the stock breaks out higher, you're moving your stops out up uh up along the way. always in the money. Yep and so okay. And this is a day trade.

Yep. and it can be on any time frame really and so often. What happens is when you have an implay ticker, you tend to get stocks that really really just melt lower in a trend so that will really kind of waterfall over. And when something's trading down very cleanly, if it's a really clean down move, the cleanest down moves once they reverse tend to have the cleanest up moves.

And that's not a hindsight biasing, right? You can see in real time how cleanly something is selling off. it's way different if something is zigzagging all over the place. ver. It's just this smooth waterfall and so finding those smooth waterfalls that really really Panic those are the ones that are going to be way more likely to have a clean bounce.

And that's where if you're sticking to those tickers that are trading very clean cleanly, the probability of you being able to catch a bounce with a simple trailing stop like that is way way way higher. And so what I think surprises a lot of people is when I post my my monthly top Ops on on Twitter each month. So many of these plays by nature of them being an Inplay ticker with a fresh news Catalyst or making a really huge move so often. they respect that very simple rule of using prior bar lows or prior bar highs because these are stocks that are very cleanly trending.

Oh, and that's where you get the vshape exactly shape down and vshape Recovery Y And so a lot of what I became famous on Twitter for is talking about buying on the right hand side of the V and what that means is I don't want to fight that Trend as it's going lower, but once you get that prior, that break of the prior bar highs and then you've got a turn and you're on the right side of the V meaning we're now bouncing. That key difference is you're now going with that counter trend Trend and like it sounds so cliche. but the simple saying the trend is your friend is so so so so true. So when a stock is selling off and water falling I don't want to fight that Trend But the second I can identify a bounce based on some of those rules for for finding a turn I'm then officially with that counter Trend and when you're with that counter Trend your probability goes up, you have a stop.

and then so often trends go way further than you think and that just means your award is is is better. Honestly I Learned a lot from his interview as well. Comment down below and let me know what you learned from Lens's perspectives on trading, psychology and trading strategies. The next: Trader has a very unique trading style.

Chris Verma is known for creating systematic trading strategies based on stats and data. You're going to learn how to become an efficient Trader who focuses on trading the best setups while minimizing emotions and stress. Did you know you can get up to $6,000 worth of Premium trading tools all for free! As part of the new promo from Centerpoint Securities, you can now open a new trading account and access Trade Idea scanner which is my favorite scanner by the way. Benzinga Pro Trend Spider and Dilution Tracker.

They're also offering you free commissions for 60 days and 3 months free of Dash Trader Pro Trading Platform I've been using Centerpoint Securities for active day trading and short selling for many years now, so I'm very excited to share this amazing promotion with you guys! They are now available in Canada as well, so feel free to check out the promotions down below. Now let's get back to the video. Could you kind of walk us and our viewers through how you would create a profitable system and how many, uh, how many data sets you need to prove that it's worth, uh, worthwhile for you to put your capital in, right? Good question, but also a very difficult one. So what I like to do is run long-term back tests.

So I'll have an initial idea like let's say I want to short a stock that's going up 20% in 20 minutes. So at that point what happens afterwards I See So if we track the last 100 times that occurred in the stock market, what were the averages right? how far did it close from that point, how far did it? Spike From that point and when we used Excel spreadsheets, we can run back tests and I have a lot of these templates on my website so people can you know view that as well. Okay and once we see that from the back test that okay this stock after spiking up usually Fades off 10% then we can find an edge through that a mathematical Edge and from that we can use Kelly Criterion and other Ma mathematical Concepts to maximize our profits on these moves. I See So that's how you would first discover a strategy, right? Okay, and then then you track do you export all the data? Let say how many data sets do you need to to kind of prove to yourself and analyzing the data that this thing has? That's say, um, 70% win rate and you can make at least 20% yield.

Like how many data set do you need from that? Well, in terms of the sample size, I have more confidence in a larger sample and also over a larger period of time. So I would say at least like 200 data points you want in your database to have a lot of confidence in it and you also want it spanning over a six-month period or longer because if the data is too congested in one time frame, then maybe the market cycle was just very favorable for that pattern. And it was just a small time frame thing, but on a larger scale it's not as effective. Makes sense.

So that's why we look at yearly data usually four years. I Look back until 2019 to make sure that a pattern consistently performs and there's not too much fluctuation in the returns per year. Oh interesting, yeah. I Noticed that in the summer months small caps are generally you might see a play like every couple of days.

So in the summer months that probably kind of skews your data or do you size down during particular months of the year and then size up more during the other times that fit your strategy and your data. I Would say my sizing is mostly based on the liquidity and the volume of the stock in play. So if it's a low volume play, then I'll try to keep my volume low because I don't want to stand out too much whereas if it's higher volume then we can probably SI in a little more and be more comfortable getting in and out of the position without causing any liquidity problems. Yeah, there's a lot of criteria that we look for and volume is probably the most important one, especially that I've honed in on this year.

I'm trying to focus on lower volume plays because what I found is that the higher the volume, the more likely that it's going to be manipulated. It's going to be crowded. There's going to be a lot of games, a lot of action that are is not favorable to a short seller. I See, So avoiding volume in my opinion, is one of the biggest things that you can do as a short seller.

Okay, and does it help with your emotions? Do you feel like obviously there will always be some emotions involved? But does it? do you feel like you stay a lot calmer? trading especially when you're sized up. but you're trading a strategy that you know has a high win rate? Yeah, 100% because that's where my conviction comes from. Yeah I Found so many times that I would take a non-system trade. let's say, out of boredom or if I was you know Revenge trading something? Yeah, I wouldn't have the same conviction in that because there's no data behind it I'm just kind of guessing.

that's when you get actually emotional because you know you don't have the exactly Edge Oh, makes sense. So I try to stay on course as as long as I can and just follow my system and so many days I won't have a trade and I'm okay with that, right? I Think a good skill of a Trader is being patient, being disciplined, and being able to sit on your hands when there's no action. right? Instead of forcing trades where you don't have an edge or you're just guessing Okay Traders I Hope you take Chris's advice seriously. don't let your emotions get in the way and start forcing trads.

If you resonate with his advice on Trader psychology, please remember to drop a like on the video I Noticed that you mentioned a lot of Short Selling are oh, how many strategies are you kind of regularly playing right now? And are they all on the short side? Yes. So we have basically three main strategies that I use. One is a parabolic short that I recently tweeted about and this is the same strategy that I've used. you know for years now and I've had most of My Success with this same pattern.

So a stock going up very quickly usually has some mean reversion and reverses and comes down especially on low volume small caps. They're very manipulated so they can easily drop back down to where they came. Okay, whereas if a more legitimate stock did that, a blue chip stock or a higher volume stock, you wouldn't expect the same reversal because the move might be more legitimate. Okay, so the main pattern that that I do is shorting parabolic stocks and then also I short gappers that are Shoring weakness.

So let's say 100% gapper. if it's starts fading from the open, then that kind of confirms the pattern that it's a weak stock, that it might be a dilution play and then I might short it and then ride the wave down. Oh okay, and one other pattern that I use is a backside short. Okay, so it's basically a parabolic stock that hasn't met the criteria for a front side entry, but it may be valid on the back side to take for an entry.

Let's say if it's up 50% the volume is decreasing and then it will trigger on our scanners and then we can enter and then and safely write it back down. So uh, this super per setup on the short side I also saw this on your Twitter that you it's uh, has an aggregated win rate of 84% That's right. Okay, so did you was this invented or you started tracking it this year and you started trading this setup? So this is a setup that I introduced in April April and it's kind of an evolution of our original setup, which is the parabolic short. the P20 I called it okay and it's basically over years of refining and Data Tracking that we've been able to improve upon our original idea which was already a very strong strategy a strong pattern, but we were able to improve upon that in terms of the metrics and the execution just from our own personal experience because as strong as a back test is, it doesn't have that Personal Touch right? It doesn't have your own own personal experience trading it like years and years of seeing the same patterns where you can pick up on small nuances.

And that's what we were able to do with the super Pera and since introducing it, the win rate has been incredible 84% and getting very high average gain per trade over 10% Oh, W Even though the back test would indicate a lot lower because we've been able to incorporate some of our discretion into the trades and cut some plays that are, you know, not behaving properly. If they're not working right away, we're not getting that instant resolution, then we're losing patience on the trade and quicker quicker to bail out Whereas if it is paying instantly and it's working right away, then we're a little more patient because it's kind of showing that it's working, it's behaving properly, and that it's going to continue. Okay, fading in our Direction So on a high level, how would you teach someone? Let's say someone approaches you today. How would you teach someone brand new this super Paras setup like on High level.

Rough idea: What is this super par setup on the short side, right? So it's basically a strong parabolic move in under 30 minutes. so my criteria is roughly 30% in 30 minutes. Okay, so if a stock goes up that amount, at least that amount has other certain variables that I can't really discuss. but that's the main criteria for the short for the short: I See So as soon as it triggers that criteria on our trade idea scanners which I've coded um, it will trigger the entry price and you know the ticker symbol, the time, all of that information, and then all of that is given to you.

You just enter that into your broker with a certain amount of shares that we use based on the Kelly Criterion which is optimal sizing. I See and then we use. We've introduced some more scaling now, so it's not a pure fixed stop. Let's say 20% stop.

There is some scaling, so we may add a little bit higher so the approach is a little bit more complicated now, just so that we're a little harder to track our movements and Alos can't really trade against us. Yeah, so that we, you know can kind of avoid the typical short Sader short short seller approach. So our approach now is that we just want to short these parabolic moves with our scaled entries. Okay, And then we're also taking covers with more discretion and you're looking for that a 30% move up.

You enter and then you what's kind of like the expected yield. Let's say a 20% move down, then you cover. It also depends on how extended the stock is on the day, right? If it's only up 30% on the day, then our profit Target would be a bit lower because we can't expect it to drop 50% from there, right? But if it's up 100% on the day, then the profit targets would be a little wider because there is more expected fade if a stock is more extended. Okay, so all of these things we track from the data and we can say all right, if a stock is more extended, should we hold for a 40% Target or 30% Target or if it's just up 20 30% then should we shorten our targets? So everything is based on the large sample back tests and everything's predetermined.

That's the beauty of systematic trading, right? More or less? Yeah, Okay, so you your entry is predetermined your potential Target depends on the percentage Gap and the only thing that's discretionary is your ads and covers right around those lines. Okay, very interesting. Yeah, even though I do not trade the same kind of Short Selling strategies as him. I Personally think that Chris's approach to creating systems is a very important step, especially for a new or developing Tra traders who want to one achieve consistency and two reduce emotional stress from Trading.

Let me know what you learned so far from Lance or Chris in the comments and don't forget to gently tap the like button if you're enjoying the video. So far, if you think trading is complicated, then pay attention. Now the next. Trader Alex Tamise is known for simplifying trading with his own stock selection criteria.

Alex focuses on selecting the right kind of stocks to trade and letting his trading plan do the rest. You're also going to learn The Importance of Being Disciplined and following your own trading rules I'm sure our audience are really curious about what your daily routine like as a Trader can you share what the steps are with them? Sure. I'll share beginning to end. So okay.

First things first is when I was starting my trading I would wake up at 4:00 A.m. I wake up at 4:00 A.m. every single day so that I know what stocks are moving, what news moving. and it gives me enough time to like, read the fundamentals and read the chart now as I've kind of matured on my trading and I wake up around like 6:00 A.m.

wake up at 6:00 A.m. and the first thing I do no matter what every single day is I have to check my phone I check my phone The first thing I do to see like if there's any stocks on my watch list from the previous day that are moving after I check my phone I have to drink espresso I have to I'm like a zombie in the morning I I cannot function without coffee in the morning so I have my espresso I get right up to my office. So as soon as I get to my office, open up my trading platform and the first thing I do is I look at the top percentage gainers of the day. Okay so I look at which stocks are gapping up the most on the day after I look at the stocks are gapping up the most.

What I do is I read the news on each stock. Sometimes a stock has news, sometimes a stock doesn't have news. Okay, if a stock doesn't have news, it's a pretty big Edge because most of the time it doesn't have a catalyst to keep it up. So if a stock does have news, I'll look at the news and I'll read it and see what it sounds like.

Often times a lot of people don't realize that companies PR the same thing. So I try to cross reference to see if this company has ever PR this same thing recy the headines and based on that that's a different level of an edge right? Okay so first things we look at what stocks gapped up, then we look at the news. Then what I do is I look at the fundamentals of the stock. So these days there's a bunch of different tools out there to like use to help with fundamentals.

I use dilution tracker because they're pretty simple. Uh, look at you know if they have any outstanding warrants if they have like an ATM if they have a shelf. So I try to get as much information on a stock as I can before I even look at the chart. So after I get that information from the fundamentals and I say all right, this stock is gapping up.

This stock has a news Catalyst This stock has, you know, something in the fundamentals or the filings that kind of looks a little bit sketchy. Then I look at the chart and like we mentioned earlier, is the chart. One of those daily charts where it Wicks up and Wicks down. Or is it one of those charts that's like you know, looks like a breakout is about to happen? Is it like gapping? Like how is it gapping up? Is it gapping up into previous resistance? Is it gapping up into blue skies? Or is it one of those Wick up and Wick down? So depending on that, that's going to be something that I try to narrow down as well if it's one of those stocks that's gapping up into all-time highs I don't want to short it I don't want to short it because there's no previous resistance.

But if it's a stock that Wicks up and Wicks down on day one, Good. If it's a stock that's coming into previous resistance good, then after that I pretty much uh, plot out my Uh entries and exits based on support and resistance. I Keep it really simple. So these days a lot of stocks are moving pre market and by the time you wake up pre-market the chart is already kind of formed a little bit.

So I like to use those pre-market levels as my Uh potential resistance and support. So I'll just draw my resistance I'll draw my support to be able to visualize it on the chart. Now these days there's different Pumpers different discords different, this different that that are moving stocks as well. So I have friends and other people in like all these other discords that let me, people are pumping different stocks.

So pretty much final stocks are gapping up the most. Read the news, read the filings, look at the daily chart, draw my support and resistance. What I've realized in the world of shorting is: every single day, there's usually a hot stock moving. There's a stock with tremendous volume.

there's a stock that has all the attention. There's a stock that all the traders in the chat rooms and all the people on Twitter are talking about that stock. I Call the hot chick of the day and I call it the hot chick of the day because it's okay. I call it the hot chick of the day because if you go to a bar and the hot girl is there, all the guys are going to give her attention right? All the girls are going to give duck.

she's just getting the free drinks, she's getting the she. but she has her friend that like may not be like as good-looking but like she like if a guy talks her she's going to talk and engage and have fun or whatever. So instead of finding the hot stock of the day, the hot chick of the day to trade that everyone's going to lose money on I look for her friend, right? I look for the side stock, the stock that may not have as much volume that already came down premarket right? the already form pre-market and I'm basically waiting for that stock to have a bounce into pre-market resistance rather than to short rather than looking for that hot stock that keeps making higher lows and higher lows and higher lows and higher lows and ends up parabolic, right? So a lot of short sellers, they have this fallacy that the higher the percentage Gap is on the stock, the more I want to short it whereas sometimes it could just keep going and going and going because that's all the attention. So for me I focus on the stock that already has made a a topping action premarket.

it's already topped out pre-market and I want to short that bounce into previous resistance. That's my bread and butter go-to setup every single day. The problem is that most short sellers they go for that hot stock. that kind of goes to resistance and then consolidates and shoots up.

it shoots up because it has all the volume, all the tension, all the alos, all the everything. So as a short seller I do not want to short the hot stock of the day I want to focus on the side stock that not as much people are watching that doesn't have as much attention because those stocks to me me have the most Edge and the most capacity cuz there's less competition whereas the hot sock at day it's short crowded, there's way too much competition. That's what's been helping me these days. so you're basically risking in this case.

In this particular strategy, are you risking around that pre-market highs area? So I've realized as a short seller that your ultimate stop no matter what, always has to be mandatory pre-market High Because if it breaks premarket high of the day, it has the ability to keep going. So as a short seller, no matter what the rule, no matter what is, if it breaks premarket High You have to stop out. You have to stop out. Don't wait for it to see if it's going to reject.

Don't wait. don't do anything. Get the hell out if it's going against you. But what's really good is on these side stocks is the pre-market high.

After it's kind of made its initial move and come down, the pre-market high is so far away that like you have plenty of room to make money whereas the hot stock of the day, it could just really relatively quickly break that and just halt up. Yeah right. I've been caught in so many scenarios where the hot stock of the day that was was gapping up 85% 150% goes higher and higher and higher whereas a stock that gapped up 40% ended up closing red because no one focused on it. They're like, oh, like this stock is not going to do anything like whatever I'm not going to touch it I'd rather focus on this stock cuz I can make more money on it but that's not how it works.

so I like to focus on the stocks that are forgotten the side stocks that people aren't really paying attention to I Also realized that since Short Selling became more and more popular. like you said earlier, any stocks that's trading around 80% 90% 100% that's able to hold around there, they tend to go higher. Yes, because that attracts all the short sellers you were talking about. and they they get squeezed and it goes higher.

And the Alos are very like they. the Alos just got way smarter. I think ever since 2020, the pandemic. I Think they got so smart because in my opinion, when the entire stock market was crashing in like 2022 is like 2021 2022, a lot of the hedge funds couldn't make money, they couldn't make money because everything was going down.

So I think that they programmed their Alos to start focusing on small cap stocks. like start making up that difference in P&l that they doing because now there's so much algorithmic trading in small caps, you can see it nonstop. The the volume on these small cap stocks is absolutely ridiculous sometimes. and I think it's all algorithmic trading, just getting smarter and smarter and smarter if that's the case.

Do you think it has gotten a little bit tougher to trade small cap stocks in because it didn't used to be like that when the the bigger funds or like Elos were involved. So how has it changed to modern day now? I Think every year trading gets more difficult I think every year that you wait it gets more difficult cuz like you think about I mean when we first started trading most of the time like I remember seeing people that would just short a stock and Market open and then cover that market close and would just go straight down that doesn't exist anymore? Or like during the pandemic, you would just buy any stock and it would just go straight up. Yeah, that doesn't exist anymore. So I think the market has a way of just getting harder and harder and harder and cycling out more people and more people.

And more people. But interesting to your point is I Think that now because most people are in the short selling world, the stock squeezes that we're getting are a lot more ridiculous. They're a lot crazier. They're a lot more.

uh, insane. So that actually gives veteran short sellers more of an edge because the Newbie short sellers are driving these stock prices up whereas the veterans are waiting and getting even better entries. So I think that if you are a veteran someone that's been doing it for a longer time. I Think you have even more of an edge because there's a lot of dumb short sellers driving up these stocks higher for more veteran traders to take advantage of it.

I Have a lot of advice cuz I Made every single mistake that you could possibly imagine. So number one is, make sure to set a Max loss with your broker Auto Liquidation And the way that you set that is, let's say you're making $100 a day trading. Yeah, your max loss Auto Liquidation at the broker level should be no more than two days worth of trading. So it should be.

if you make $100 a day, your max loss should be 200. That way, you never lose more than 2 days worth of work. Whereas other people they set their Max loss at like 1,000 all of a sudden, they lost two weeks worth of work. It doesn't make sense.

So number one is set your max loss Auto Liquidation at two days of your normal day, Number two is set your max size so set a Max position size on your account. The best way to do it is like I mean everyone has different equations but like usually like a fifth of your Equity. So like whatever your Equity is divided by five that should be your max size Max size Max size. Uh.

Number three is use hard stops hard Market stops. When I first started trading I didn't know what stops were. no one taught me I had to figure it out on myself I would manually do it and every single time I'd be a deer in headlights I'd freeze I'd be like I'm going to stop out at $5 All right, you don't follow it. Now it's like 510 and then it's like 520.

Okay, like if it goes back down to 510 and then all of a sudden it holds up to six and I'm dead. Yeah, right. So use hard Market stops. If you use a limit stop, you're not going to get executed all right.

the next Trader needs no introduction. Stevenh Ducks is a verified top performing Trader Many of you might have seen his crazy profits in a single trading day, but what you should learn from Steven is his unique method to track stock market statistics and how he uses that data to improve his entries, exits, and position sizing. So what kind of Statistics I Know you mentioned that earlier in the beginning? How what? What will you tracking to realize? Okay I need to focus on this one strategy or these two strategy. What kind of Spe specific criteria were you looking at? First of all, I mean when I went went in there it's it's A there's a lot of stuff to track you can't you? Most people go in with Okay, well there's a lot of stuff I have no idea what to track right? So you start narrow stuff down.

Let's say we have a ticker that's 20 million market cap, 3 million float. Uh, very similar action. Put them together. how much long traded? uh to see there's any similar actions or similar Behavior Or if it's going parabolic or start going mid midday or gapped up in the pre market.

Uh, so pretty much you want to categorize very similar Market Very similar Mark Uh uh float. Um, at the Gap of percentages, uh, categorize them into one section. Try to find the conclusion of if volume changed what happened, if flow changed what happened so you you kind of put a fixed criteria on all on pretty much everything and uh, there's only one factor that's different I see so you will be able to kind of tell. Okay, next time.

similar flow, similar market cap if the volume is different I'm supposed to do this I see So you need a massive amount of Statistics to find uh I know I have I think at beginning I 25 sections Okay with market cap between 0 to 10 million between 0 to 1 uh Gap up over 50% or market cap between 0 to 20 or float between 1 to three. see this time the different but with gap up percentage with 50% so you only have the flow difference I See and once, you only have the flow difference uh with very similar volume throughout the day so you can kind of see what. how much did the spiking percentage changed. Oh so that's one method of how to figure out what to track.

Okay let me sum up that really quick cuz you just mentioned a lot of things I Want to make sure audience understand your method ex. the first method you mentioned really clearly. So essentially you're trying to find the first method. Let's say you narrow down let's say 10 stocks that you know are low floats.

They have similar volume and then you look at different categories like the volume prear volume you know percentage Spike after open and you look at what they have in common. Yeah, and what's the outlier criteria? Whether it be super low float or super high volume that cost or potentially have cost that one stock to Stand Out Among the most? Yes, Oh okay, got it. Okay, uh. first criteria and second is you second way to be able to track uh, statistics is you want to focus on volume specifically because people are behind computers trading the ticket right? So every shares they trade means one shares.

And of course there's Alos and Hedge involved in there. But you have to think there's one thing that the HED fund that won't do is they take the entire the flow. So basically they buy the entire flow. Okay, and first of all they have.

they have to file to the SEC. That's very, that's you know. not very convenient. That's why they what they don't want to do.

And second, you want to. If you if you want to pump the stock, you don't want to own the entire flow. because eventually once you sell, you're basically uh, playing with yourself. Yeah, there's no one else to sell to, there's nobody else to sell.

You need the liquidity so you do not want to occupy the entire flow. You want to retail to go in there. Yeah, and pump the stock up. and they sell into the retails and retails.

Lose his money. So once you track enough multi rers, there's actually a very uh, similar number that how much money can retail put into a ticker? Okay based on float or market cap based on market cap. Okay yeah so uh that's another way to track statistics based on how to really short into multi owners. So in that case that say hypothetically speaking your second method just mentioned.

Let's say based on I don't know 50 mil market cap retail can only let's say from that tracking retail can only get get up to you know 10% of that market cap and then that's the ideal time to short. Uh yes yes but more more accurate. Uh you want to be more accurate is you want to use the volume uh times the average traded price on that day. If it meets the threshold of how much money that retail can pour into stock, that means stock will go down next day.

Oh because basically the stock has reached the maximum threshold that retail can push up to the maximum maximum percentage. Yeah yes. Oh interesting. I never thought of that way or dollar amount there.

There's a lot of method. Uh I can go Uh so I I'll do three. Um, there's another way to track statistics mean uh which I personally use. which will be volume comparison is that you want to.

Um so there is three different uh uh categories you want to Do? You want to track first? First ofel is uh to be able to correctly tracking resistance? Okay, and a lot of people see. Okay, well, there's a resistance that traded 50 million volume on a price of three and uh, next time I want to short against with that $3 resistance, right? Okay, and so let's see. For example, let's say uh, 50 million Volum. That means five people.

Let's say five people bought stock at Three. Two months later, stock instantly dumped 90% Everybody wants to get out because well, if I get out I'll be down 90% What's the point of me selling right now since I'm already down 90% So the first reaction that when stock pushes Back 2 three right, everybody wants to wants to sell. Okay, that's their instant reaction. That's human psychology right there.

So and but here comes a problem because we're dealing with low floats. So if the stock only have three 3 million float and has 50 million volume in there, and that doesn't mean that there's 50 million resistance in there cuz there's only 3 million volume, the 3 million flow. Sorry. Okay, from previous, let's say uh.

chart the resistance from like weeks ago. Yes, doesn't have that much volume is what you're saying. No, doesn't It doesn't have the flow in there, doesn't have 50 million flow. Okay, so if you want to, let's say one one.

Um, every share is a back holder. 15 million shares means 15 million back holder. But if there's a 15 million shares, only 3 million flow, there's only 3 million back holders. Okay, does that make sense? That makes sense.

Yeah. so uh. next time when you try to show into resistance, that's the statistics you want to track because you are shorting a 50 million resistance. but there's only 3 million backwards in there.

Okay, so there's a very possible chance that stock can push through that resistance because there's only 3 million flow. Oh I see So a lot of people trying to just short based on how much volume that's against the 50 million. That's a very interesting statistics to track. and um, it? you can't Once you track that statistics, you can help you avoid a lot of traps.

Traps see. So I think the first two method you mentioned helps you find a potential short entry. The third one helps you avoid getting squeezed. Yes, Okay, yeah.

oh thank you for Shing that. There's uh, there's many, many, many uh uh. stuff that I I mean I came up in the last couple years. What about you? Are you tracking any kinds of stats yourself? Make sure to share with other Traders Down below is that.

Do you think that's the reason why you pretty much stick with small caps? Cuz when it comes to large cap stocks, there's a lot. A lot less of these in inefficiencies, right? And a lot the patterns the stats you track. Do they apply to other kinds of stocks? No, they don't. Uh, the limitation is uh well, except 2021.

But the in limitation is you cannot go beyond market cap that's above 300 million initial initial market cap. So if the stock starts to spike starting with 300 million market cap then doesn't work Okay, but start less than 300 million. Let's say started around 100 million, then goes all the way to couple billion. It works.

Oh so you're talking about. Let's say the first day of the run where the stock already started from. Yes, Oh so anything about 300 mil that doesn't count that. still categorize a small cap, right? Yes, still categorize a small cap, but you just won't trade it.

I Just won't trade it. Oh so how you pick your stocks to trade is by volume and the market cap has to be below 300 mil? Yes, Oh okay, and what kind of volume are you looking for when you are scanning for stocks to trade each morning? Uh, really depends. I mean volume highest the higher the higher the better. Okay, uh I mean I Do avoid first.

Green Day Very crowded volume. Okay, avoid that type of tickers. Uh, but once they exhaust their volume, then uh. higher the volume the better.

Yeah, Okay, what about percentage gapper percentage? Um, is there a point of like too high or like too low? If it gaps above 200, I will say oh well. it's probably more ridiculous when it's gaps above like 500% then it looks a little bit fishy to me. Um, but the ideal range should be between 100 to 150? 100 to 170? Yeah, percent percent. Oh okay, like it has to have gapped up that much for you to be interested in trading them.

Not interested, but more comfortable trading? Okay, Uh, Gap up 500% I'm still interested in trading them I'm just want to be a little bit cautious on how to size in. Okay, yeah, so I I Get that you know 100% gainers are very normal in 2020 and 21. But how what about in 2022 and 23? How are you selecting stocks? Then do you change your criteria? There's still gappers that's above. um 2? 100% Okay, very few? Yeah, very very.

Uh, we have see Mmv. that's one Mhm when kep 200% Then um yeah, not many. We had VC IG and all those biotechs that only gapped up like 80% So yeah, above 100% It's my highest winning percentage. Okay, less than 70% if it doesn't have a resistance and on first screen day and it's a biotech.

Yeah, that's that's a noo for oh. so you also don't want to trade. Try to avoid biotechs. Yeah, yeah.

okay, is there a reason why? Oh, every time when I trade Biotch I lose I mean it's and that track statistics on I still lose. So I've been fighting Biotex for many years now and uh, it's sometimes you win, sometimes you lose, but by the end of the day you lose money right? and and uh, doesn't really matter. We are going short, we going long. Yeah, Biotches are very hard to predict.

They do not follow small cap statist statistics at all. Oh interesting. So not only do you track those individual stocks or sectors or like the individual stock criteria, you also track your own performance. Trading these stocks.

Yeah, I track everything. Yes, okay, how much the stock will drop to at what percentage to what scent? I can get to that sometimes. Yeah, that's how I' be able to bottom tick and top tick. As you can see from all of the trader interviews today, no one Trader trades the same, but they all have their unique trading plans that work for their Trader psychology and their risk tolerance.

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