All right everyone welcome to Class One of our Day Trading course. So as you guys know, my name is Ross Cameron and this is our eight week long course in day trading. Alright so first chapter here. We're gonna cover a lot of the basics and we will get into more detail as we go.

So you may have some questions today that will be answered in the coming days, but you can of course feel free to call out your answers in the chat room and anyone watching on the recording you can feel free to email me Ross at date Red Warrior comm Alright, so first question here. How does day trading work? Okay, so and another another thing to ask here is what are we looking for as day traders? All right. We talked about this a little bit today. It's a very simple concept, but we're looking for stocks that are moving Ok, as day traders, we profit from volatility in the market.

So if the markets are flat, we're not going to make money. We need to find stocks that are gonna make quick moves to the upside or the downside in a relatively predictable manner. Okay, so we profit from volatility. When is the market the most volatile? It's in the morning.

Okay, it's in the morning at the open 9:30 to 10:30 in the morning. The first hour is when we have the most volume in the market. Okay, so we have a lot of volatility and we have a lot of volume now. The advantage of having that volume is it provides liquidity.

When we have a lot of volume. it means there's a lot of buyers and a lot of sellers, so we can easily get in and out of trades. And now on the flip side, mid day we can have volatile markets, but we don't have the volume, which means we lack liquidity, which means it'll be harder to get in and out of stocks okay, especially if we want to take large size. So my focus has always been trading at the open and trading in the morning.

I Find that the first one to two day trades usually four out of five days I can hit my goal in the first thirty minutes with one to two trades I Keep it simple I Try to hit my daily goal and then ease up, right? We know how quick it is to lose money, so once we have some money in our pocket, we want to hold on to that. Alright, so we know we want to find stocks that are moving, but finding stocks are gonna move in a relatively predictable way is the struggle, right? That's the struggle for every trader. How do we find a stock that's gonna make a move and get in with a low risk entry? And that's the name of the game. Finding low-risk entries Every time we trade, we know we're exposing ourselves to risk.

So how do we minimize that risk? That's what we call finding a good set up. Any good set up is an opportunity for us to get into a trade with this little risk as possible. So a good set up means we might be risking $100 but we have the potential to make 300. Okay, so we would call that a three-to-one profit loss ratio.

Risking 100 to make 300 is 3 to 1. All right Now, on the flip side, if you get in a setup where you're risking $100 to make 10, you have a negative risk reward ratio and that's going to be a trade that you should not take. All right. So we're always looking for opportunities to get low-risk entries with big wind potential.

but being able to identify setups that have big wind potential is also part of the learning process. Right as a beginner trader, you may not be able to differentiate different setups and recognize what is a homerun potential flag and what is a most likely failing flag. That's something that comes with experience, but also with training. Okay, so our job as day traders is to always hunt for volume and volatility.

Okay, so we're searching the market all day long looking for that volatility. So we look for earnings releases. We look for press releases. any type of catalysts that can cause big movement in the stock.

We're gonna be interested in it, all right, And it comes in many forms, and we'll review those in more detail later in the course. So here's another question. Why do most traders fail? right? Day trading requires you to make quick decisions and at the same time it requires you to be very disciplined. Right now, when we hear breaking news that activist investor has just taken a stake in Amazon Okay, the initial reaction might be to load the boat let's buy 5,000 shares of Amazon right? Put, put on a big order that's like a 1.5 million dollar order, right? But you need to be able to make a quick decision whether you should buy or sell, or short that stock and make it with discipline.

Does this fit into my trading strategy? What strategy would this fit into if this trade goes the wrong way? What is my stop? How much my risking in this trade and what is the reward potential right? Being able to make all those decisions and making sure those decisions fit into our risk tolerance and our strategy parameters is what for a lot of traders is very difficult. It's multitasking, but it's multitasking when you're under stress. You know there's times where I've been in a trade where I had too much sighs. Maybe I had 10,000 15,000 shares and all I need to do is sell and I'm looking at my keys and it becomes hard to even figure out how to punch the right keys.

You just sort of get this moment of paralysis where you're overwhelmed and any time that happens you realize that you pushed yourself a little too far out of your comfort zone. and that will happen to every one of us. I Mean it happened. It's happened to me.

It'll happen to all of you from time to time, right? It's It's good to work on the edge of our comfort levels, so we're always pushing our boundaries. But if we find ourselves far outside our comfort level and outside our risk tolerance, we can really end up making some big mistakes. So it's always good to be in touch with ourselves. both of our sort of emotional state of you know, are you focused? Are you calm? Are you making good decisions? You know, and also be in touch with the result of your decisions.

Are you trading profitably? Have you had five winners in a row? Or if you had five losers in a row, right? Because inevitably, when we get on the losing streak, it's going to start to impair our judgment. So being able to be in touch with your own emotions and maintain composure even through a losing streak is really, really critical. Okay, so skill and discipline. These are like muscles.

They require exercise to grow and it's not something that once you grow them, you have them forever and you don't have to work on them anymore. You still have to exercise them right. and that that's what I experience every day. I'm still exercising my ability to have self-control to have discipline right now.

The skill is something that I've built up so you can't take away the skill to ride a bicycle. and you can't take away the skill to identify good stock charts, right? Those are skills. but the discipline is something that we always have to work on. and the skills you know in truth or something that we're always developing and refining.

It's this is a job where we're always learning, which is great. It's very stimulating, but it's important to remember that if you start to get complacent and think oh, I know everything you know I don't need to, you know I don't need to study anymore Oftentimes you'll get a quick correction and you'll lose money. So that's the market correcting you. All right? So being able to make quick decisions and follow your trading rules that is critical for success in the market.

As we go on with this course, we're gonna talk a lot about risk management. Everything that we do is gonna come back to how are you managing Risk because ultimately, that is the most important concept for a trader to understand all day long. I'm managing risk. That's what I'm doing I'm trading stocks, but I'm managing risk.

Okay, so we're gonna teach you how to manage risk so you can make good decisions all right now. Next, how do you find trades? Okay, this is really hard for line new traders. You may understand the theory of trading, but when it comes down to actually finding setups in real time, it can be really difficult. I Certainly experienced this as a new trader.

I might be able to see setups in hindsight when I looked back on charts during the day, but to find them while the day was unfolding was really difficult for me. So we're gonna go over how to find the trades, right? So first we'll start with scanning. how do we scan the market to find stocks that are set up in a good way? So first we have to find the stocks and then once we've found the stocks, we'll start to look for the individual setups. Okay, now we are going to be very specific about what types of stocks and what type of setups were willing to trade.

Alright, and I focus a lot on quality versus quantity. Now there are millions of traders out there and there are millions of strategies out there. I'm trading a strategy that works for me, right? And that's what we're teaching. and we're finding that it works really well for our students as well.

So it's a strategy that's easy to implement, easy to learn, and for a lot of our students, and certainly for me, has been very profitable. Okay, so that means only taking the best setups and waiting on the sidelines until we see something worth trading. And this gets into the value of patience. Learning to be patient is extremely important.

There are a lot of traders out there that are over traders. If you over trade, that's where you're gonna see yourself trading 20 30 40 times a day, That's over. Trading over trading results in very high commissions. Your broker will love you, but you're paying him a lot in commissions to do all those trades.

Okay, so you're gonna lose money in commissions. You're also gonna lose money on trades that go south because of slippage. Slippage is an inevitable factor in the market. slippage is when you go to sell and you thought you're selling at $5 but the market filled at 490 so you lost an extra 10 cents.

And so what? It's an extra ten cents. It's not that big a deal, but when you an over trader and you're trading 20 30 40 times a day, that slippage starts to really add up. right? 10 cents with a thousand shares is $100 If you do that ten times in a day with slippage, you just lost a thousand bucks, right? So you can see how if you're going to put yourself into the market and take a trade, you're You know you're immediately exposing yourself to the potential of slippage and the potential of other forms of risk that we'll review later in the course. Okay, so as soon as you're in a trade, you're exposed to risk.

so we don't want to expose ourselves to risk unless we have proven that this is a setup and a strategy worth trading. Okay, so my strategy is a pattern based strategy I Don't care about companies I don't care about what they do I don't care about their earnings I Just care about the patterns I focus on charts okay and I focus on the symbols I know more stock symbols than I know the names of companies I've trained myself to just focus on the patterns, the candlesticks, and the symbols I Don't mingle fundamental analysis with technical analysis I Focus just on the technicals. Now, with that said, I Do hunt for a fundamental catalyst a reason why a stock is running up if we have a stock that's running up 80% I Want to know what the catalyst is? Oh, it's a biopharmaceutical stock they just got FDA approval or they just passed through clinical trials. Okay, there's a catalyst there I Can understand that, right? But beyond that, I'm not gonna be sifting through the conference cup I'm not gonna be able to sitting in on conference calls and I could be sifting through their earnings papers I Don't care about that stuff I'm not a long-term investor I'm a day trader.

We trade very very quickly. Sometimes we trade as quickly as 10 second to 30 second long trades and I can tell you from experience that in ten seconds you can make thousands of dollars. I've done it in ten seconds. You can also lose thousands of dollars I've done that too.

So both ways, the market moves quickly. we need to make sure we're positioned in the right place to take advantage of the profits and reduce our risk exposure. All right, And it's really important to recognize that. Like I said, millions of traders out there.

millions of strategies, but every trader needs an edge. Okay, and you need to find your spot in the market where you feel comfortable. My edge is focusing on patterns. Okay, I focused on patterns because this is just what worked for me now before I was a day trader I worked as an architect in New York City Patterns have always been something that fascinate me.

I'm drawn to patterns I pick them out everywhere I see them on charts and I recognized early on in my trading career that the best setups or breakouts of patterns. Very simple patterns, a breakout of resistance. A breakdown of support. These patterns work really well and the reason they work really well is because so many people are watching them.

Okay, now using this strategy I can be wrong forty percent of the time and still make money. That's because I'm using proper risk management. so we'll talk about the risk management parameters that I use later in the course. But just at this point, remember that we don't have to be right a hundred percent of the time to make money.

We can be right. Even just fifty percent of time and you can still book a profit. Okay, now another thing to remember is that in this market right now, over sixty percent of the volume is algorithmic high-frequency trading. That means we're trading against computers.

So if you've ever tried to play chess against a computer, you know you're always gonna lose. You will always lose. We're trading stocks against computer systems. Okay, sixty percent of the volume is algorithmic trading.

That, for us, on the one hand, represents a problem. It means that the majority of stocks that we're looking at the the price action that we're seeing is simply the result of computers and moving shares around. Okay, now on the other hand, it means that there's a small handful of stocks each day that are gonna be trading on such heavy retail volume. okay, retail, as opposed to institutional algorithmic trading.

We'll be trading on such high retail volume that we will overpower the algorithmic trading. and we will, as retail traders, control that stock. We focus on trading those stocks each day. Those are stocks typically that are gapping up on earnings a PR of some type.

They have a ton of retail interest and a ton of retail volume. So regular traders like myself and all of you are going to be buying these stocks and we're overpowering the computer systems. Okay, so these are the stocks that are gonna run up 20, 30, 40 % intraday. We've even seen stocks around 200% intraday.

You get a big catalyst like FDA approval on a new drug and all the retail traders see it and they buy that stock is going up. Okay, so we focus on that handful of stocks now if we try to trade the stocks that are trading on very light volume. and if you think that 60% of the volume in the market is high-frequency trading, 60 percent on average. So it's going to be much higher on some stocks and much lower on others.

So if we trade the stocks that are dominated and much higher in high-frequency trading, we're gonna lose money hands down every time. It's very hard to make money when you're trading against a computer. Okay, so instead we should try to focus on the stocks that are gonna have a very low level of institutional high frequency trading. Okay, so those are gonna be the stock that have therefore a high level of retail interest and what creates a high level of retail interest or buzz around the name? It's going to be news.

Okay, so every single day I'm looking for the catalyst that's gonna drive the small handful of stocks up. All right. So pattern trading. When price action is plotted on a chart, patterns are formed.

I Personally use candlestick charts so each candlestick represents a period of time and you can choose the timeframe of the chart that you're looking at. You can choose daily charts, hourly charts, 5-minute charts, 1 minute charts, etc. I Prefer one minute and 5-minute candlestick charts. Okay, here's an example of what a candlestick looks like.

You have the low which is the bottom of the candle wick, You have the high which is the high of the candle wick, You have the open which is the bottom of the body right here in the case of a green candle, and you have the close which is the top of the body in the case of a green candle. Okay, this upper area. Here this is the upper candle wick. This lower area is the lower candle wick.

Okay, so these are candlesticks. Candlesticks can tell us a great deal about the general trend of a stock. Okay, large body candles like this one right here are very bullish. Candles like this that have a high wick and a low wick are usually going to be a little bit more indecisive.

Candles of indecision: Okay, in red candles that have this big red body means that open was at the high and the closes at the low. This is a pretty good indication of bearishness in the market, right? So just by learning to read candlesticks, we can begin to generate some opinion on what's the general attitude for the stock. Okay, and we'll review more of these later. These candlesticks: How they form patterns.

This pattern right here is called a flag. You have three big candles going up. It can be anywhere from 3 to 10 or whatever You have a series of candles shooting up and then you have a series of candles consolidating. This is a move.

a stair step, consolidation, resting, another move up. This is a very common pattern that we see. Here's another one: a pop-up consolidation and then another move up stair stepping. Very common patterns.

I Love trading patterns because everyone can see this. Everyone is watching this stock because this stock is a hot name. Today it's a hot stock, right? It's a Gapper. It has everyone's attention so we're all watching it.

We see this pattern unfolding. It has resistance. At 37 50, that's a very clear visually. It's very clear.

As soon as we break 3750, buyers come in and anyone that is short covers and you get that spike up. Okay, then it consolidates again. here. you guys that have followed me for a while, you know that I Trade the first and the second pullback.

Okay, so here's the first flag. the first pullback. Here's the second pullback. I Never trade, Almost never trade the third.

I Trade the first and second pullback. We'll review that more when we review my actual trading strategies and setups. But just for now, recognize that these patterns are very well respected in the market. But remember, they're only well respected on that small handful of stocks that have a lot of volume.

This is not going to be well respected on a stock that's dominated by the computers. Because these patterns are meaningless. Okay, this is only a value because lots of people are watching these names. Okay, so my routine every morning is finding these names that we should be trading.

Ok, so what do other traders do, right? There's millions of traders out. There will some focus on technical indicators like the relative Strength Index moving average Convergence Divergence moving average Crossovers Okay, there's a lot of technical indicators out there. There's thousands, right? And some traders think they have the holy grail of technical indicators. You know, combination of the relative strength index or the moving average crossover is a 90% successful you know, buy set up.

but I don't believe in any of that stuff. I Don't believe that stuff works, especially over the long term. I Tried for a long time I did write algorithmic scanners I did some black box trading and what I found was that I would write a set of conditions I would write a formula I would back test it and I would see when I back tested that formula that I would have a you know, an 80% chance of being right, an 80% success rate. Okay, I would run that formula live for 60 days and what at one time when I first back tested, it was an 80% success rate would drop to 40% Okay, at the end of that 60-day period, I would review that formula I would tweak it I would fix it I would bring it back up to 80% So when I back tested it, it would say it was 80% successful I'd run it again and the profit curve would drop off again.

So what was happening? Well what I was doing was I was writing a formula to match. inadvertently I was writing a formula to match a certain set of back test results. So every time we change those back test results, there was the result of the scanner would change. So the scanner was great backward testing but was impossible for were testing.

It would never run positively forward because the market is always changing. Okay so that for me I don't think is a sustainable way to trade I Think pattern based trading is much much better because these patterns will always be here and retail traders will always be watching them. Okay, Now yes, we do use the relative strength index for some of our trading, in particular, reversal trading. We have scanners that do rely on a high-low RSI but that is that is more condition to find stocks at extremes.

It's not by any means a buy or sell indicator, it's just something that we use in addition to the pattern based scale. That's a great question about the Fibonacci retracement and that's not a tool that I use or an indicator that I use. Okay, so some day traders scalp volume spikes and hi a day moves. So they have high of days scanners and anything hitting that high of a scanner with high relative volume they're gonna be watching.

Okay I Personally I have high a day scanners but I don't find it to be a successful strategy just to buy a stock because it's hitting high a day. I'm usually chasing when I do that and it doesn't work okay and some day traders focus exclusively on counter trend trading now I do it myself some counter trend trading, but it's not the cornerstone of my trading strategy. Okay, so with pattern trading, the more traders using these patterns, the better they work right. The more people that recognize that this is the line in the sand or we should be a buyer.

That means more people are going to buy at that point. Which means the stock is going to move up faster, right? The more buyers the quicker it'll move. So this is the type of thing where I'm so happy to share pattern based trading not only to help other traders become more profitable, but in truth, the more people that are trading this strategy, the better it'll work. And the reason it works is because these small handful of stocks each day are being very well watched.

so lots of people are watching them for that simple breakout, right? That flag breakout. That wedge breakout. The sending wedge. That breakout.

So many people are watching it, it comes true. Okay, so pattern trading you have to remember does not work on all stocks. and we'll go into the details in our stock selection chapter, but it only works on the stocks that have high relative volume. Okay, so volume is relative, right? Some stocks like Apple are going to trade millions and millions of shares a day.

On average, other stocks on average might only trade 500,000 shares a day. So what is high volume is going to be relative from one stock to another? So we actually look for high relative volume? Okay, if we just look for a high total volume, that's gonna really throw us off, right? Because there's some stocks that trade on average with a lot of volume. so we just look for what's above average for that stock. Okay, now in particular for pattern trading I am a breakout trader I Love buying breakout.

This is also called momentum trading. Okay, I want to buy when we're having a stock that's running I Don't like to buy during consolidation during that waiting and holding phase. Okay, so some of those charts we looked at a few minutes ago. We saw that quick pop up followed by that period of consolidation.

I Don't like to buy during that period of consolidation I Wait for us to break the top of that resistance area. That's gonna be the apex point. That's the breakout. If I buy there, that's where everyone else should be buying.

Who's looking at taking this for the breakout? So it's it's just instant. It either works instantly or it doesn't. So one of the risk factors that we'll talk about later in this course is your exposure time. The longer you're in the market, the more you're sitting exposed, right? So I reduce my exposure time by only buying at the breakout instead of buying and holding and waiting which would have increased exposure time I just wait for the breakout and then I punch my order I get in and I get out quickly, right? I take my money and I run.

That's been my philosophy: trading getting the breakout, get your profit and get out of the way right. And that's why I only trade the first and second pullback I Don't want to overstay my welcome with these setups I Know they run quickly, but I don't want to stay too long I Don't want to be caught in the people in the flood of people selling because they chased it all, right? So yeah, we'll review the Apex Point on a few trades, but we'll do that at the end of the lesson. Okay, now with reversal patterns in contrast to the breakout patterns with reversal patterns, we're looking for our clear confirmation that the pattern is beginning to reverse. Okay, so for me, this is usually going to be the first candle to make a new high I'm gonna be looking for the first one minute or the first 5-minute candle to make a new high.

When we review reversal strategies, we'll be talking about the rubber band snap back. So we think of stocks trading. We think of them as a rubber band and when they get really stretched out to the downside, inevitably, they're due for a correction. Okay, so when a stock is really squeezing down, we know at some point it's gonna make a bounce and we want to be in that for the bounce.

but we don't want to buy it when it's still sell it. Okay, if you buy a stock when it's still selling, it's called catching a falling knife, right? It doesn't sound like a good idea in life, and it's not a good idea in trading. Okay, so stocks dropping. We want to wait for the confirmation of the reversal.

That's gonna be the first candle to start making a new high. That's the place where I look to jump in. All right I set my stop at the lows. Very important in day trading is setting a stop.

whether it's mental or alive stop. You have to have a line in the sand where you get out. Okay, this is the place where you admit defeat and you say I was wrong I'm getting out of the way now. let's be honest.

I'm a successful trader. but I still lose all the time. So that means I must have found out a way to be a really good loser. And it's true I lose all the time.

but I lose gracefully I take the losses and I walk away. You have to be a good loser. If you're not a good loser, it's gonna be really hard to be a good trader. You just have to be able to walk away when it's the time to step back so you can ask yourself a few questions.

Is the stock still moving up? Are we still trending up right? What is the low of the last five minute candle? And have we broken that low? Because if we broke the low of the last five-minute candle in an uptrend, then the trend may be starting to change. We have to follow the charts and this is one of the issues where if you combine the fundamental analysis, you can start getting yourself into the pattern of justifying staying in a bad trade simply because of the fundamentals. Well, you know it's nice. And they make really great sneakers.

They're definitely not going out of business. I'll just hold this longer. Okay, you don't want to do that. You want to follow the chart.

If the chart is telling you to get out, you get out. You can always get back in, But it's really hard to recover from a big loss, right? You don't want to take a $50 loss. Well, you certainly don't want to take a $200 loss. By the time you finally take the you know $800 loss, it's really hard to get back from that, so it's much better just to take the quick losses get out.

Come back when the timing is better. All right now. It's also good to keep in mind that stocks will trend with the overall market unless they have a reason not to. So this is part of the algorithmic trading.

This is part of what the computer systems do. They're trending stocks with the market. Ok, so the markets moving up. stocks are moving up.

but they're gonna be a handful of stocks that will buck the trend of the market because they have a catalyst again. This is what we're looking for. That small handful of stocks that are going to be running when the markets tanking Are there gonna be tanking when the markets running because they have a reason to make that move. That's what we want.

Now, if the markets running and these stocks are running too, that's fine. I Have no problem with that. We just want to make sure we're trading stocks that are moving because they have a reason to move. So when I do reversal trades, My favorite reversal trades are on stocks that are selling off because there's bad news out.

Ok, a quick sell off because of bad news. Lots of people are gonna notice it and start watching it for a bottom bounce. Those are my favorite bottom bounces. They can be really, really quick.

Really solid. Okay, now stocks are just trending down with the overall market the way oil was a few a few weeks ago. You try to do a bottom bounce. they pop up 10 cents and then they sell off another 50 cents.

Try to another bottom bounce. they pop up 15 cents and the miss sell off another 60 cents. They're selling off because they're trending with the market and it's a weak sector. so that's where we have to differentiate.

Is this moving because the market is moving? or is this moving because it has a unique catalyst? Okay, so that's where we have to do a little bit of research and as you have more experience as a trader, you'll be able to differentiate what is catalyst based price action and what is just you know. Market General market trending. Alright, so retail traders versus institutional traders. Okay, so retail traders.

That's all of us. regular traders, part-time traders, full-time traders. but we're not working for a firm and we're not managing other people's money. Okay, retail traders.

We are a small percentage of the volume in the market. The majority of the volume of the market is institutional traders. These are traders that represent large amounts of capital. Okay, they may be trading with banks, hedge funds, mutual funds.

They have a lot of money behind them and they can be very aggressive and we have to be careful that we're not on the wrong side of institutional traders. Okay, but how do we identify where the institutional traders are in the market? Okay, now we'll go over this a little bit later in the class, but for right now, just recognize that what we want to do is instead of trying to find institutional traders. they're everywhere. So what we want to try to do is find where are the retail traders hanging out today and let's trade with them.

Okay, so think of all the kids on the playground and everyone's hanging out at the slides because that's what's fun. Okay, but you're over fiddling around. You know, in the sandbox, just doing your own thing. Well, you're off on your own.

in the sandbox. Trading a stock that no one's paying attention to, You're in the wrong place. Focus Where everyone else is focused. That is gonna be the stock that's moving Okay.

And there's usually a stock every single day that's getting a ton of action. That's what day traders are going to be looking at. So can we date trade a stock like Apple or Priceline or Coca-cola or IBM? Sure, we could. but these are slow-moving stocks.

They're dominated by institutional traders, algorithmic traders, and in general they're going to be very hard to day trade? Okay, so how do we find what retail traders are focused on? How do we find the cool place in the playground? There's a couple weights, one is watching our scanners. Okay, the stocks that are gapping up the most. Those are gonna be the stocks that retail traders are watching. Okay, so first, watching the gap, errs.

Secondly, it's good to be in touch with social media stock Twits Twitter and see what is trending. Okay, what stocks are trending and this is a especially helpful on stock Twits Twitter It's got someone other stuff going on, but if you follow a handful of traders, then you'll be able to see what everyone's talking about. And this is another huge advantage of being in a track. a chatroom like the one that we have at Warrior Trading, right? You've got hundreds of traders and we're all talking about what's hot today.

Okay, so if you're trading completely on your own, you know you're off in the corner of the playground you're not in touch with, other people are doing. Inevitably, it's gonna make it really hard on yourself. You just don't know where the activity is I Tried doing that. You know? I Tried trading in a bubble I tried blocking out social media and blocking out.

You know all these things and just doing my own thing. It didn't work. It did not work so you can try it if you want. My experience was that it didn't work at all.

Okay, so what do I do well I Don't trade fundamentals, right? I'm not a value investor I'm not a long-term investor I Don't trade Forex I Don't trade futures, right? I Don't trade commodities I'm an equities day trader. Okay. and I Focus on real stocks. We don't trade penny stocks.

We don't trade the OTC markets. We don't trade that junk. We trade real stocks. and sometimes we are trading Coca-cola and sometimes we are trading Apple But we'll be trading the stocks that are having a big day.

every single day in the market. there's a stock having a big day because they released earnings. Maybe it's Expedia right? Maybe it's fireEye Maybe it's First Solar, but these are big companies. Okay, these are the companies we're gonna be trading.

This is how I've made my living. It's what works for me. This is the strategy that we'll be sharing with you. All right? So a day in the life for me typically starts around 8:00 A.m.

8:30 with pre market scanning. Okay, so pre market I'm scanning to see where is their volume in the market right now. as early as 8:30 9:00 A.m. we'll know what stocks are gapping up.

Okay I look at the top 10 Gabor's and I start sorting through the news. Okay, what's the catalyst causing the gap, right? I put together a watch list I start ruling some out I start picking and choosing which ones do I like which do I not like. By 9:00 a.m. we're in the chatroom warrior trading, going over our watch list.

Alright, going over the watch list with all of our students and all of our traders. by 9:30 when the bell rings, my orders are ready. I've placed orders as early as 9:30 and one second. Okay, and I've been up to thousand dollars in the first five minutes.

more times than I can count. I Trade aggressively at the open trading these. Gabor's trading these Momentum stocks, right? 9:30 to 12:00 That's when I'm the most aggressive. That's when we have the most volume and momentum in the market from noon to 4:00 I Really ease up on the throttle I Don't want to go overboard midday and afternoon because that's when we have lower volume in the market.

Lower volume means lower liquidity, less liquidity, and higher risk. Okay, so after noon I really go easy with the exception of trading breaking news. If we have breaking news, that's an instant catalyst that's gonna cause a tremendous amount of volume in terms of trading pre-market I Avoid pre-market trading because there's very low liquidity. There's a very few traders trading pre market, which means stocks can pop up a dollar.

Drop a dollar. You can't get in and out with large size. so I can't go heavy with thousands of shares. You have to go really small and you have to use such small positions that for me, it's not even worth it.

If you don't mind trading a couple hundred shares, you could trade pre market. You know you can size up a little bit pre market maybe a thousand two thousand, but you don't have good liquidity and that's why I avoid pre-market trading. Okay, so on a good day I have my goal by 10:00 a.m. and I'm easing out, lightening up trading and by four o'clock I'm done right.

But oftentimes by lunchtime I've already hit my goal and I'm gonna be sitting on my hands unless there is that perfect setup. from 4:00 to 6:00 P.m. we've got our trading courses and we're reviewing our trades from the day. Now let's think a little bit about the market.

Okay, if you make $1,000 by 10:00 A.m. what do you think you're gonna do? Are you gonna walk away? Take the profit? Some Well, many will. Okay, so a lot of people if they make their thousand dollars by 10:00 A.m. they're done for the day.

They're gonna go golfing. They're gonna go do whatever they want. But if you lost a thousand dollars by 10:00 A.m. most traders are gonna keep fighting it out.

Okay, they're gonna stay in the market. They're gonna keep trading. and they're gonna try to make back what they lost. So that means midday trading is dominated by traders that have lost in the morning and they're aggressively trying to make it back.

That causes a lot of volatility, but not in the good way that causes stocks to shoot up and then shoot down because people are going in and out with market orders. It's a time that I consider dominated by more amateur trading. Okay, so I go really easy mid day. The only trades I take mid day would be breaking news or swing trades trades that were giving a lot of space and that we don't need to micromanage on the 1 minute or 5 minute chart.

I Would not trade the 1 minute or 5 minute midday unless we have a stock that's really running on big momentum. In order to get started trading, you need a few things you need charts. You need a broker. You need stock scanners and you're gonna want news.

Okay I use these signal for my charts. These signal is a terrific platform for charting now. I Personally have so many monitors that I have E signal running on one, two, three, four, five, six different monitors and it's running on six monitors with no lack. Okay, now there are other charting platforms you can use, but my problem has been that they result in lab when you try to run them on multiple monitors.

So East signals very low latency, very quick charting software alright. In combination with East signal I used has market profile indicators alright. These are a custom suite of indicators used by over 15,000 traders on the Bloomberg Bloomberg terminals. Ok, Bloomberg terminals.

That's what hedge fund traders are using right and I like to see what the big guys are seeing I don't want to be going against them. Alright, so we'll go over those Taz market profile indicators later in the course. But for right now right now, just know the East signal is the charting platform that I use. Alright, best brokers.

You need hot keys. You need to be able to move in and out of trades quickly. Ok now I Personally use Speed Trader I Love Speed Trader. We've got the direct access routing, we have high speed executions, and we have hot keys.

Alright, so this and we have aggressive pricing, so these are some of the real fundamental things to look for in a broker. If your broker doesn't have hot keys, you're not gonna be able to get Internet of Trades quickly. Ok, that's critical. You need to be able to get in that trades quickly.

I Can't tell you how many times I've been up a thousand dollars in a matter of seconds because all of a Sode All of a sudden the stock spikes. Right When you see a stock spike like that, you want to be able to put money in your pocket and profit from it. You don't want to be fumbling with your orders and trying to enter your order window and then confirm it and then send it again. It doesn't work.

You need quick executions, All right. So I highly recommend a broker. Such a speech trader. It's gonna give you the technology to be the fast day trader you need to be to make money.

There's a lot of full-service brokers out there. each raid Ameritrade those are terrific. If you're trading a couple times a month, you know a little bit of day trading here and there, but mostly you know investing. But when you're an active trader, meaning 10 trades a day or more.

yeah, you need better software. Ok, so remember that brokers will give you four times leverage. So if you put in $30,000 you're gonna have a twenty one hundred and twenty thousand dollars of buying power. Okay, so that Leverage is Marge You're allowed to trade on margin, but you have to be responsible.

If you're gonna trade on margin, you have to be responsible. We'll review that in the risk management section of the class. Scanning tools I Use trade Ideas and I can't say enough good things about them. I Love trade Ideas 90% of my trades I find on the scanners but I built in trade ideas so you need a way to find stocks.

I Mean this is just part of the deal. We need a way to find stocks Trade ideas for me. That's how I do it all right. So when you're in the chat room, you can see my screen while I'm screen sharing you can see all my scanners are running.

You can watch the scanners that I'm watching. So if you're in chat, you don't need to separately have a subscription to trade ideas. You can just watch my scanners and benefit from it. But you know if you do go out on your own, you want those tools, you're gonna need it.

Okay, now something I've talked about and I'll say again is that tools are of no value if you don't know how to use them. So this course is gonna be focused on teaching you how to use these tools. All right and streaming news. I Use the Been Zynga Pro for the Squawk Box This is basically a radio that's constantly talking about stock news right? Breaking news on stocks, options, activity, takeover, chat, or anything you can think of, it's coming out on the radio.

This is really terrific. I Love Been Zynga for the news. Alright, so I generally when I'm trading news I'm gonna wait for the dust to settle. We will go into more detail about news based trading strategies.

But for right now, remember, you don't want to be an impulsive trader, right? We know we have to make quick decisions, but we also need to maintain discipline and composure and make sure all of our trades fit within one of the strategies that were there. Were live training all right. now. On another note, we have to think a little bit about the ebb and flow of the market.

Okay, now there are times when the market the overall market is very choppy. We it is okay for us and it's advisable for us to adjust our risk based on market conditions if we're gonna. Period. Where the market is choppy, we're having a hard time generating profits.

It's a good idea to scale back, taper back the risk a little bit right, reduce the exposure so our losses aren't so bad. Then when the market starts picking back up and we get on a hot streak, we can start to lean into it a little bit and go heavier. So knowing when to lean into trades and when to ease up a little bit is important. It's something that will come with experience and we will review that again more in the course.

Okay, and you can look at the macro channels on the SP Y and draw trend lines. And if you can see that we're trading at the top or a bottom of a macro channel, you can expect a little bit of choppiness. So it's kind of like a pinball. You're bouncing up and down between these channels.

Okay, when we're moving between them, we often have nice clean moves, but we're consolidating along the highs. All along the lows, we can get a little bit choppiness. so something that is absolutely critical for every trader is that you're trading a strategy I Wish someone had told me this when I was first starting trading. Bross: You need to trade a strategy.

If you're trading with real money, you must be trading a written strategy. It must have historical data to prove to verify that it's worth trading. With real money, We must justify to ourselves that were worth investing it. Otherwise, we might as well put the money somewhere else.

in a mutual fund or in a CD Because at least there we won't probably lose half of it, right? But the experience for a lot of traders is that they fail. They lose money Okay, and a large a large percentage of those traders. They're not getting the education that all are getting. here.

They're going to be live trading strategies that are not even. They're not even hammered out right. They're just haphazardly trading a little of this, a little bit of that until their accounts gone, and then they wonder what happened. So everyone here in this class you have the big advantage of working with me and the other traders in our chat room to help develop a strategy worth trading.

Okay, so remember, the market is gonna be here. We don't need to rush. This is a marathon, not a sprint. It's not about making fifty thousand dollars by the end of next week.

it's about developing a set of skills that can last for a lifetime. Okay, so we don't want to live trade a new strategy until we've proven that it's worth investing in. And we don't want to be impulsive. And this is part of going back to having patience.

and it's also a big part of managing risk. We all have our place in the market. All right. Trading is not for everyone, but for everyone that feels like trading is a good fit for them.

We still have our own place in the market. I May be a 1 minute 5 minute trader. You may be a 60 minute 120 minute trader. right? Maybe a 60 minute for our trailer.

He may be a daily trader weekly trader. There's a place in the market for everyone. Okay, so you have to find your place, what time frame works for you, what strategies work for you. Inevitably, what you're learning here are gonna be pieces of the puzzle.

Learning to trade. It's like a big puzzle. you're gonna look. You're gonna get some pieces here in our trading course.

You're gonna pick up pieces on your own from your own. reading your own research. Inevitably, you're gonna create the puzzle. It's going to be your own unique trading strategy.

It's going to be unique to you. It'll have a little bit of what Ross does. It'll have a little bit of what someone else does. You know, have a little bit of your own thing.

You're gonna take what works for you I Don't expect everything I do to work exactly for you, right? We're all individuals. We all have our unique approach. That's fine, that's okay, and I'm happy to help you develop the strategy that's going to work you. The important thing is that you need to be good at one strategy, right? one strategy.

Once you can tread water in the market. if you can, just tread water, you can get by right? The longer you sit in the market, the longer you can be a trader, but without blowing up your account, the better your odds are. This is just a matter of having time in the chair, right? The more time you see watching these charts, the more you learn. So this is a job where you survive until you can make it.

So if you can just survive, if you can just break even, just tread water until you learn to swim. That's what you do. And with one set up with one strategy, you could be successful. And you can tread water.

And you can just sit and wait for that one setup to come to you. right? It's like having a very, very narrow diet. You only eat apples. Well, you just have to wait for apples to come.

All right. And sometimes you're gonna sit and there's not gonna be any apples for a while. You just have to wait for them to come to you. All right.

And then eventually you start eating pears and peaches and oranges. Stuff like that. So you start branching out. But first you need to get down one strategy.

Okay, all right, so that can be the gap and go. That can be the momentum strategy. That can be the reversal strategy or it can be one of your own. Okay, but those are the three that I trade most actively.

My favorite is the Gap Ago. All right. So this was what works for me: Focusing first on what I was good at and then narrowing down, narrowing it down, developing that area of strength into a workable strategy and then using that strategy to survive until I could develop others right. One of the first things I did as a trader was create an Excel Doc I wanted to trick I want to track all my trades and I actually did this when I was younger when I was I don't know maybe 14 or 15 I had some some stocks that I was buying I was buying Caterpillar and some computer companies and some bicycle companies car companies I was buying stuff that I like with like a hundred shares.

just a little of this and a little of that and I had it all on a yellow legal pad and I was so pumped to make that kind of spreadsheet on you know, legal yellow paperwork I love doing that and as soon as I started trading when I got into it to day trade full-time I opened up my Excel doc and started making a spreadsheet and it was one of the best things I did because I was able to track my performance so I would track Ok, these trades are this strategy. this strategy in this strategy I'll be able to categorize them and then sort that data and I was able to find ok look. Ross You're doing a great job buying breakouts of resistance. That's where you have the biggest winners.

that's we have the most consistency focus on that. So I Highly recommend tracking your trades. get to know your statistics. You're gonna learn a lot from those.

All right. So homework for today's class: Start tracking your trades all right. And if you're already tracking them and start going through that data and email me Ross The Day Trade Warrior comm with some some of the info that you're picking up. I'm gonna be excited to to hear about it.

Okay so that wraps up. Class for tonight: Class One of the Warrior Trading Course. Again, any questions, please feel free to email me Ross Today Trig Warrior Calm.