Uh Facebook live. we've got YouTube and we have the chat room testing the bandwidth of my cable internet connection. So uh, today we're going to be talking about the metrics of a winning Trader on uh, this the eighth episode of Behind the Trades and I'm going to be teaching you guys about the profit Trifecta which is, um, basically a breakdown of where you need to be in terms of your metrics in order to be a profitable Trader All right, so let me um Jump Ahead here. So um, overview of the weekly stats I Want to go over this quickly? This has been uh, for the most part, a pretty decent week.

I'm finishing the week up about $5,000 on uh, my own trades with just better than one:1 ratio, about 1.1 to1 profit loss ratio, and 70% accuracy which is fantastic. The accuracy has been good. uh, total profits are decent. didn't see as many really big Winners but I did have a $4,200 day on Tuesday So um, had one good siiz.

uh winner this week and you know, really? that goes to show that it only takes one and if you could find one really good trade each week, I mean you can hit your weekly goal with that one trade. So making sure every trade you take has a quality uh, potential is, you know. and Home Run potential is really important. So uh, today's topic will be the metrics of a winning Trader And then after we, um, uh, after I walk you through the profit, try vecta and what those metrics look like.

We'll answer three viewer submitted questions, we'll talk about one viewer submitted story, and we'll have the gift giveaway. Today we're giving away a um, a copy or access of the Warrior starter course which is uh, 997 on the website. Okay, so um, let's see. today's topic is the metrics of a Winning Trader And here's the thing.

The metrics of all successful Traders All winning Traders are going to be similar. And that is to say that there's a minimum Baseline metric that you need to meet in order to be a profitable Trader And if you're below that level, you're not going to make money. and when you're above that level, you're profitable. So between Mike Jeff and myself, you know we all have the metrics of a winning Trader.

But what does that actually look like? What does that mean? I'm going to show you a system where you can track your metrics and understand your progress so you can basically check your metrics against this. Um, the system that I'm going to show you and um, you know, track your progress at the end of each week or the end of each month depending on, uh, kind of where you're at in your uh, career As a Trader One of the things that's going to be really important for all of you guys is that you put together goals of what you need to accomplish to get from A to B to get from wherever you are now to where you want to be. You know, in 3 weeks, Or in a month, Or even in 3 months, right? Obviously, we want you to be at the point where, uh, you know you're you're a profitable Trader So you're going to see those metrics and you're going to have to figure out. Okay, from where I'm at now to where I need to be, what are some things that I need to do for most Traders it's going to come down to discipline because most Traders fall into the habit of overtrading.

They know what an A quality setup looks like, but they end up taking B quality, C quality and D quality setups. You know they just kind of deviate from the plan that can be out of boredom, maybe out of frustration. Uh, but you know, regardless of what it is, you need to stay focused on just trading your go-to setup. And if you don't know what your go-to setup is, then you probably shouldn't have been trading.

Uh, be trading with real money at this point. Okay, so this is, um, for those of you of you watching on YouTube and um, in the chat room, you can already see I'm going to put up the screen here for those of you watching on Facebook live. So this is the profit. Trifecta All right.

So um, there are three components of the profit Trifecta The first one is that you need to have, uh, consistency. You need to be consistent. So multiple weeks of consistently producing profits number two is knowing your your uh percentage, your win rate, right? If you're 50% or lower, you're rarely going to be profitable. And then three is understanding your profit loss ratio.

These are the three components of any successful Trader So when we look at weeks of consistent profit, you know if you're at zero weeks and you can't put together one week of consistent profits, obviously, that's going to be a problem, right? We want to see you doing at least you know, three to four weeks of consistent profits before you start trading with real money, you know. So for me right now, I was red last week this week I'm finishing green. So I'm really only one week of consistent profits. But if I look at the big picture of you know the last 6 months for the most part I've been uh, you know, very consistently closing each week Green.

So uh, the longer you've traded, the the better you can get that sense of what your consistency is. And then we've got uh, knowing your trade win percentage. So if you're less than 50% %, it's going to be very hard for you to be a successful Trader I Mean it, it's not. I Mean the fact is, you can be profitable, uh, with accuracy lower than 50% but your profit loss ratio would need to be super super high.

So for instance, right here, you can see that if your profit loss ratio is 2 to one right down here. meaning you win 200 on average when you lose uh, 100 on average so your winners are twice as big as your losers, then you actually only need to be right 33% of the time in order to break even. which is true. But then you have that um, you know, subconscious impact of the fact that you're wrong six out of 10 times and it really breaks down your confidence.

And for most Traders they can't stay focused and they can't trade well when their accuracy is only 33% So at a basically my Benchmark minimum is that you're at TR at 50% accuracy 50% accuracy. Now if you trade at 50% accuracy, you need to have a minimum profit loss ratio of 1: one in order to break even. That means if you lose 100 on average, you make a 100 on average, right? So I would say your next Benchmark Here is minimum profit loss ratio of 1: one. A beginner Trader you know is is right at 1:1 A not profitable Trader is below 1:1 an intermediate Trader might be 1.5 to1, and a more seasoned Trader is 2:1 uh, or even better now I'm personally trading uh, right around 1.25 to one, so even my metrics aren't nearly as good as they could be I Mean you know I there's traders who are out there who I'm sure are better than me.

Uh, you know I'm consistent and I'm profitable. but I know that I could do more to improve my profit loss ratio. My accuracy right now is about 68% This week it was over, which is fantastic. Uh, but over the last like 3 and a half 4 years my accuracy has been about 6 68% And then you know going back to the top weeks of consistent profitability.

So how many weeks in a row have you guys been? um, you know, profitable right now. For me, this is going to be my first week. so I'm I'm back on a green streak. but before that I had five weeks of consistent um profits.

So you know five weeks was a good stretch. Had one red week. Now back into uh, you know, building up consecutive green weeks. Okay, uh and yeah.

Reminder: Raymond no penny stocks or OTC stocks in the main chat room. All right and Mike you could disable Raymond's chat if you want. Okay, so um, now this is this you know slide that we put together shows you what I consider as being the three criteria that you need to understand in order to be a profitable. Trader If you don't understand these three criteria, well, you're certainly at a disadvantage, right? So you have to understand these three criteria.

and uh, where you stand on, you know each one of these uh, points. Okay, so this is my profit. Trifecta score I'm at a 14. Uh, now 14 is the best you can possibly do.

Is it any surprise? I'm a 14 I'm just kidding, the best you could do is 18. I I was I was generous I Gave myself a 14 just to barely get into the professional Trader I'm I'm at the bottom of that bracket so you know I I'm sure over the years, I'll continue to move up on my, uh, my own metrics. but uh, to show you kind of where I stand today. So when we look at these metrics, what we're seeing is number one consistency.

So where do you stand? All right. So each third each section has a total of six points. So if you're if you're perfect on all three, you have 18 points. All right.

So 1, 2, 2, 3, 4, 5, 6. So if you only have one week of consecutive profit, well, you're you're a one. Or you're a two. If you're only at 50% or 55% again, you're a two and over.

Here, if your profit loss ratio is only 1 to one, you're again at two. So if you're a four to a six, you're a beginner Trader right? Which is fine if that's where you are right now. that's okay. You just need to know where you're at right now so you can figure out what you need to do to get from beginner Trader to intermediate experience and then professional.

you know Mike he's his uh trading is a little bit different than mine. he doesn't trade as often as I do, but his um. profit loss ratio is really, really good. and that's partly because of the type of stocks that he trades and the setups that he's trading.

When you trade reversal setups, you know you're buying really weak stocks off the bottom and then you sell them as they move back up. So you usually have a really good profit loss ratio better than than even two: one I think he's like 3 to1 or 4 to one. so he's going to be a six in this side, his accuracy is pretty good because he's very selective. He only trades, you know, maybe once a day.

Some days he won't trade at all and so as a result his consistency is good, but at the same time you know that may be based on four or you know, five trades a week. whereas my metrics will be based on probably 20 or 25 trades a week. So just something to think about in terms of uh, you know, if you only have one trade a week, it's going to be easier for you to be an 18, uh, out of 18. whereas if you have uh, you know 30 or 40 or 50 trades, it's going to be a little bit harder.

So this is all to say that the more historical data you have, the more accurate your profit trifa to score will be. So for me, you know this is I gauge myself at being at 68% success since that's uh, where I've been for the last like three years. So I'm pretty confidently right in here. and my profit loss ratio is, you know, pretty confidently right in here.

and my accuracy is pretty confidently right in here. All right. So does this make sense to you guys now? Uh, just as a question and you guys who are in the chat room and who are Traders or who are watching on YouTube Can you guys figure out right now what your number would be on based on this uh, scoring system? So first is how many weeks of consecutive profits do you have? You've got one week. so 1, two, 3, four, five, six points potential.

What's your accuracy right now and what's your profit loss ratio? So let's see. Ali on Facebook says he's a five. All right. So where's someone else? David says he's a five.

Okay, so beginner Traders that's fine. Sebastian says he's a SE he's a minus s well, he's on a different. he's on map. We got to work him way work his way up to zero.

First Roman a 10. That's pretty good Alejandro is a three George is a one. Justin's a nine that's really good. Spock is either a zero or 18.

he's not sure which. All right, So you know. And interestingly on on Facebook Live a lot. A lot of you guys are in the four to five range Michael's a nine, but lot of you guys are on the Lower Side Um, on YouTube Live.

A lot of you guys are, uh, kind of on the beginner side and in the chat room. A lot of you guys are on the higher side. Which makes sense because you're in the community and you're practicing every single day, so you're more in the intermediate, uh, towards experienced levels. All right.

So uh, for those of you on Facebook live I'll switch this back and put my phone down. Okay, so again, this is something that I want. You guys, Um, you know, take a screenshot of it if you want, and uh, print it out wherever you are right now. If you're at a five or a six, what do you need to do in 3 weeks to get yourself up? like four points? or up three points? You know, to a eight or a 10 or something like that.

So you could improve, improve your uh, accuracy. You could have more weeks of consistent profit, or you could improve profit loss ratio. To me, the easiest one I Mean it's these two are actually maybe similarly easy. Uh, tighten up your stops, have your stop losses be as tight as possible, because then inevitably, your profits will be bigger so you'll have a bigger profit, a better profit loss ratio when you have a tighter stop.

So if you stop out of Trades really quickly now, even this week for me, you know a couple of the trades that I lost on I lost a full 15 or 18 cents per share. which I hate losing that much because you know usually when I'm up 10 cents I sell half. Which means if I end up making 30 cents, well, you know my average profit will only be like 15 or 16 cents because I sold half so early on. So when I lose with my full position, a full 15 or 18 or 20 cents, it feels like a real defeat.

So I really encourage you guys to tighten up those stops as much as possible. Number one, Number Two: Focus on the best quality setups. Trade the best, leave the rest. Now today was a good example of that for me because I got myself into a trade that really was like B quality setup.

It was Cdti the daily chart wasn't that great I really wasn't that interested in it. uh I thought maybe it had eight or 10 cents of potential I got in. it ended up dropping really fast and I lost 800 bucks on it and the most I probably would have made was like 500. So should I have even taken that trade? No because even though I wasn't planning on risking $800 this is trading.

This is the market. Sometimes you get into a stock and you know things happen and you suddenly lose more than you would have expected. So just as you know, food for thought there. Um, but again I think this is this is going to help you guys a lot.

understand where you're at right now and uh, if you can Implement a couple of techniques of what you're going to do over the next. Let's say two weeks or three weeks to help you improve your score I Think that would be um, you know, really smart Okay So um, with the profit Trifecta explained I Want to answer a couple of questions that were submitted this week? Now as I mentioned last week, you guys can go to Warriortrading.com show and you could submit questions you commit. You can submit stories and I'll answer a few of them or read some of the stories aloud on an upcoming episode of Behind the Trades. Okay, so the three questions this week, um, number one.

When a stock hits the high day scanner, uh, what's the first thing that you look at? Okay, so um, when a stock hits my highay scanner this is. This is a good question. and actually we had a similar question last week. But the first thing that I look at is, well, I'm looking at the scanners so let me pull up my scanners here.

um and I'll show you an example of one. Okay, so when a stock hits my highay scanner, the first thing I check is what's the strategy that's triggering the alert because right now I have let's see see 2, 4, 6 Eight unique strategies that are part of this scanner. and this is a scanner setting that's um, given to our Warrior Pro students who are in the class. So they get copies of all of these settings.

So I know right away that some of these scanners are better than others. And what I've done is I've colorcoded them so the yellow ones catch my eye because the yellow ones are the best. So those are those are. Um, that scanner is called massive volume and low float and what is that's a big imbalance between supply and demand, right? The float is the supply.

So when you and let's just for example, a company like Bank of America has an outstanding float of I think 9.94 billion shares. There are 9.4 9.94 billion shares that Bank of America has released onto the open market. That's the supply. Let's think each one of those is like a stack of paper.

Okay, it's like this high, it's probably higher, but it's that high and and huge. Then on the other side, you have a stock. Like let's say Tesla Tesla has an outstanding float shares released on the open market of about a 100 million. So that's a fraction of Bank of America over here.

So what we know is that Bank of America has a very large amount of Supply whereas Tesla has a more limited amount of Supply. The important thing here is that when you have high demand and high demand is the result result of some type of catalyst that creates an imbalance between the supply and the demand and that makes the price go up. So when you have lots of people wanting to buy something that's in limited Supply, the price goes up really quickly and that's just as simple as it is. It's because you don't have as many people selling that stock when you've got a 9 billion share float.

There's a lot of people who have out orders to sell and so as it starts to move up, you know buyers are buying from those Sellers and you just have so many sellers that it takes an almost impossible amount of demand for that type of stock to move like 30% in one day. So this scanner tells us stocks that have massive volume and low floats meaning they have the potential to make really big moves. So the first thing I do is I check to see which scanner is alerting the stock if it's one of these yellow ones. I'll definitely pull up the chart if it's one of these green ones I may not even pull up the chart.

This has a 94 million share FL and it's 12:30 It's lunchtime on a Friday I'm probably not even going to look at it I'm just not interested. It's the lower float ones that even during the lunch hour, could potentially make a big move. and that's because we know the further we get away from the open, the fewer Market participants we have because traders who make their money, they leave the market and that's one less trader TWO less Traders Right now, we have like 50% of the number of people in our chat room that we had at 9:35 this morning. So that's just our chat room and if if that's an indicator of active traders in the overall Market that tells you they're half of what there were uh, you know, a couple hours ago.

So the first thing is checking to see which scanner alerted it and then if I like the scanner alert and I like the time of day at that point I'll pull up the chart. and when I pull up the chart, the first thing that I'm looking at is the daily chart I Want to see Are we running into resistance or do we have lots of potential? So for example, let's say um CTI which I traded today. this one as I looked at it when it first hit the scanner it was at like 295 and I thought well the 200 moving average. this purple line is at 295 or 296.

It seems like it has a lot of resistance right in that area now. It ended up being able to break out over that level. but you know just because as it first came up. I saw that I Thought the daily chart's not very good I Don't think I'm going to want to take a trade on it whereas a stock like um, you know Hos, this one was decent.

It had more room, but it had this red moving average in the way um, another one glmd was on the scanners. The volume was too light but this one had absolutely no resistance. It was just, you know, really taking off. Okay, so I checked the daily chart and if we have no resistance on the daily chart then at that point I'm looking for the first pullback.

So in the case of Hos, the first pullback uh was my entry right here at 261. So yes, it was squeezing up. but I don't want to buy as it's squeezing I want to wait for the pull back and then take my entry. So my entry was at 261 and this went up to 293 which was a nice uh, 10% move.

Okay, so um, so answer So question number one: When a stock hits the high disc scanner, the first thing I look at is the alert and the second thing is um, the actual uh daily chart. Okay, second second question: Which moving averages do you use I use on almost all my charts the same moving averages I use the nine, the 20, the 50, and the 200 exponential moving averages. Those are the four now on my daily chart I have all four on Oops on my one minute chart I have only. Um, let's see, let me go back here.

I have only the 20 moving average so you can see this is the uh. the blue line is a 20 moving average so they're colored the same so the blue on the one is the 20. The blue on the five is the 20. The blue on The Daily is the 20.

That's the 20 exponential moving average. The gray right here is the nine exponential moving average both on the 5 minute and on. The Daily Now I could have all of them all of these moving averages on all my charts, but the the lines start to get a little busy so I kind of simplify them down just to the ones that I think are respected the most and I usually find that the 20 moving average is respected the best. On um, the one minute chart as you can see here, pretty well respected.

I think the nine and the 20 are equally respected on the F minute and on The Daily the 92050 and 200 are all worth watching and you could probably even put the 100 on there as well. but I just have it set up like that. Okay, so um, and then the last question was which would I rather drive a Lamborghini Huracan or a McLaren 675 and that's a fantastic question. Um, the answer to that question is without a doubt the Lamborghini That's because I prefer the naturally aspirated engine I don't really like the the twin turbo of the McLaren I drove both of them in Las Vegas and I really prefer the uh Lamborghini.

So to answer that question and to hopefully put an end to the debate, uh, which has been almost non-stop Um, today's gift as I said is uh, access to our Warrior starter course. Now last week we gave access to Um Chris the week before I think we had or the session before that was Eric and today our winner is Kyle H All right. So Kyle I'm going to send you an email I've got your email credentials because you submitted a question. so I'll email you back and give you access to the Warrior Starter Course.

All right and again, Anyone watching today to, um, potentially get uh, access to the Warrior Starter Course next week On next week's gift, you just have to submit a question or submit a story at Warriortrading.com show. All right. So we love to have you guys participate and be part of the show. Those of you who are watching you can also put Um questions in the comments uh on YouTube or Facebook and I'll come back through during the week and answer as many of them as I can.

All right you can see here. Um, this is going to be, um, an audio uh, podcast that you'll be able to watch or listen to on Uh iTunes So for those of you that like to listen while you're driving, you can check it out on iTunes it's also on uh Google Play SoundCloud Stitcher YouTube Facebook and uh, it'll be embedded on the website. Okay, so um again, thank you guys for hanging out with me today for episode 8 of Behind The Trades and we will do it again. Uh, really soon.

Next week. Um, we may take a week off and then do it again. uh, the week after. but any questions that you submit between now and the next class I'll review and make sure uh, we get them answered.

So I Hope everyone has a fantastic weekend, get a little bit of rest, Relax. The weather's starting to be n well, it's actually like kind of raining here right now, but the weather for the most part has been really warming up so this is a great time of year to get outside, get a little fresh air you know, focus on the train during you know, your 2our a day block when you're going to do it and then put it on the back burner and go enjoy other stuff. Okay, all right, so that's it for now and I'll see you all first thing Monday morning All right Bye guys.