All right, what's up everyone? Thank you guys all for tuning In! Uh, so this is gonna be a live broadcast and uh, we've got uh, a bunch of folks that are already tuned in. So thank you to everyone Tuning In Live! Those that are watching this days later, weeks, later, months later, years later. Whatever the case says, thank you for tuning in. You're welcome to post comments, uh down below.

I do respond to every comment post on the channel, so you please. I should feel free to ask questions if I can help in any way clarify anything that I'm talking about. Today today's topic is entries and exits for Momentum Day Trading. This was by popular Demand, so I put out a survey and asked, uh, what you'd like me to teach a class on right now? We've got a number of classes I'm scheduling for this month.

This is our anniversary month of, uh when I began, uh, providing educational content. We've got almost 10 million views on the most popular video so we've got some exciting things we're doing this month and this video is, um, one of the first. So thank you guys for tuning in to get things off to a great start. I'm gonna donate a dollar for every person that hits the thumbs up during this live broadcast.

and I will donate two dollars for every person that shares during this live broadcast. And I will continue to donate for people watching later. Up to Twenty Five thousand dollars. So I'll be donating twenty five thousand dollars to charity.

Uh, some of that will be uh, today. and the rest will be spread out over the coming, uh, months And weeks And months. I suppose as long as it takes, uh, to get up to twenty five thousand dollars. So thank you guys! If you want to donate, uh, today, you can donate through me by hitting the thumbs up.

It's that easy. And I also want to let you guys know that, uh, during this class, this is a mini class. This is an excerpt from the curriculum that I teach for subscribers over at Warrior Trading. So during this mini class, I'm going to be showing you a bunch of live trading archives.

So these are examples of me trading with real money. You can see my order entry window, you can see everything, and if you want to download a few of these live trading archives so you can watch them on your own time, replay them, watch them again and again. I'm going to give you a link where you can do that. So let's see.

um, I have to do and actually what we'll do is we'll pin it to the top of the comments for those watching this later so you guys can see that link real quick and I will also put it uh, at the top of the comments for the live chat. All right. So uh, right here on this page. If you click on this page, you will get a copy of Live Trading Archives.

All right, You'll get a copy of my small Account strategy worksheet, a copy of the Micro Pullback Lesson Strategy Lesson Pdf, and you'll also get my pre-trading checklist, a special video on holding losers too long and selling winners too soon, which is something that many traders struggle with. All right. So with that said, why don't we go ahead and jump in to today's topic which is entries and exits for Momentum Trading. I'm going to go to full screen and I've got my drawing tool and yes, it's working all right.

So we'll add some uh graphics here, make this look nice and pretty and let's go ahead and jump in. I'm going to go full screen, let's see. and I'll remind folks who perhaps don't already know the trading is risky. I want to make sure I put my disclaimer out.

there. trading is risky. Most beginner traders do lose money and my results are not typical. Having said that, it's important that you know the person that you're learning from is qualified and I am.

Uh, I will show you. let's see. Um, where's my trader view? I think I had it up here. Um, looks like maybe I closed it.

I have, uh, over 11 million dollars in gross profit trading. A Momentum Day Trading strategy that I'll be sharing a little bit with you today. Uh, just as as it pertains to entries and exits. So I do think that I'm very qualified to be speaking on this topic.

So if you're out there wondering, well, you know, is this even real money, you can go over my website warriortrading.com and you'll see my broker statements on the footer of the website. All right. So, uh. With that said, let me go ahead and jump back in here.

All right. So and back to full screen, so high level. Before we start talking in detail about entries and exits, I want to talk about the Momentum Checklist. This is, uh, pretty important because the problem that a lot of beginner traders have is trading the wrong types of stocks.

And when you trade the wrong types of stocks, you invariably end up catching yourself with big losers, small winners, and chasing chasing setups because they don't resolve the way you would expect them to. So what is the criteria or what is the checklist for Momentum? Well, so for Momentum, you can trade all day long. I wouldn't say that you can only trade in the morning, or you can only trade in the afternoon. You can trade Momentum at any time of the day.

However, I've always found that the first two hours are the best and that's uh, you know it used to be from 9 30 until about 11 30 and more and more. So it's starting pre-market so from 7 30, 8 until 10 30, 11 11 30 is still pretty good cut off, but pre-market I'm trading 8, 8, 30, 9 a.m before the market even opens. Now if you're not sure how to trade before the market opens, I have a separate video where I talk specifically about that, so don't worry. I can answer that question for you separately.

But uh, generally speaking, I would say the best time of day to be trading aggressively is early. Earlier is better. All right. So now, what type of stock do you want to be trading? If you're focusing on momentum and you're looking for stocks that have the percentage or the potential to make big percentage gains, you're going to be looking for lower float stocks.

So one of the things that I found in my career is that you're never going to capture the entire move. If the stock goes up. You know, 50, you're never going to capture the full 50. You'll capture a small piece of that.

So if a stock is only going up four or five percent, a small piece of four or five percent, even if you're using leverage, even if you're trading with options isn't significant. you're not going to be able to make good money. So I think you want to look for stocks that have the potential to go up at least 10 to 20 percent. But really, with a target of 50 75, 100 or more? So I'm going to pose the question to you: How does a stock go up 100 in one day? What in maybe the past when you've seen that happen? What has been the context around it? What's been the story around that stock? How has that been possible? If you think of Uh Dwac, the special acquisition company that you know was slated or is slated to acquire Trump Media True Social that went from 10 to 175 dollars in two days, Was that the type of stock I would like trading? Absolutely, Definitely.

And I did trade it that had a catalyst and it had a relatively low float. The float was 28 million shares, so there were only 28 million shares available to trade. That's certainly under the 50 million cut off. and combined with a really strong catalyst, there was a huge imbalance between supply and demand.

and that in turn resulted in very high relative volume. So relative volume. This is simply uh oh sorry, relative volume, right here. This is simply the volume today versus what is average for a stock over the last 14 days.

So if a stock over the last 14 days has been trading on average with a hundred thousand shares a day, and today is trading 150 000 shares, its volume. Relative volume is 1.5 200 000 shares would be a relative volume of two, right? So, and it goes on. Um, so on, and so forth. I focus on stocks with at least two times relative volume.

I prefer five times relative volume. All right. So a stock will have five times relative volume. if it's already up 20.

30 percent has a great catalyst. That's almost always going to be the case. Ideally for a strong Momentum chart Momentum Stock: We want to see a good daily chart. The daily chart should be above the 9 Ema.

We also would like to see it above the 200 Ema, but if it's below the 200 Ema, we'd like to see that has a lot of room to come up to the 200 Ema before it hits resistance there. Again, not trying to get into a ton of technical analysis here. In this episode, I have another episode. uh, that you guys can check out on.

um, the four indicators that every trader should be using, so can point you in that direction. I'll put some links to these videos in the description. Um, so requirements. Stock should have a catalyst or be a former runner, which is a form of Momentum Stock Price range between a dollar, fifty and twenty, but this is applicable on all price ranges.

Uh, Dwac went all the way up to 175 dollars a share. So it's certainly possible that you could trade a higher price stock. Uh, trading Momentum, but the risk is going to be a little bit higher. So how do we find these types of stocks to trade? I find these types of stocks of trade every single day using scanners.

So I use stock scanners to search the market and I have a couple um, right over here that I can show you so. uh, this is a the software that I use right here so I can go scanners and do large cap. I can go to small Cap Top Gappers. So these are the top gappers today in the entire U.s Equities market.

If I go to scanners, I go to high A Day Momentum: These are stocks that are moving up right now in real time. So this is how I find stocks to trade. and then once I've found a stock that I think is a good candidate because it's got high relative volume, it's up enough. It's got a good float, The price is okay, the daily chart looks good.

then it's time to take the trade all right. So this gets into entries and exits. Entry is based on a chart pattern. Generally speaking, you probably already understood that and I'll go split screen so you can see those charts a little bit better.

So a chart pattern is basically. It's a pattern that you are familiar with that you know consistently gives you winners. Okay, so these are just four examples of chart patterns. In each of these patterns, there is an apex, which is the entry point.

The point. The price To be a buyer, All right. So in the case of right here, this first example where we've got this sell-off the entry is the first candle to make a new high right here So if you've got five 10 plus red candles in a row, your entry is the first candle to make a new high. And now some people will have some questions about that for clarification.

So let's look. I'm going to go full screen here. All right. So this right here as you can see is a bull flag.

All right. So this stock has squeezed up right here, it's squeezed up up up, and then it's experienced a little bit of pullback. We've got one red candle and we've got a second red candle. So during this pullback, this is where I might be looking at the stock and saying i think I want to buy this now An aggressive trader may trade during this ramp up right here.

We don't know what time frame this is. We could say this is a one minute time frame and if it is, then you know that right around here was a micro pullback right around there because you can see how this candle was a high and this one opened a little lower. Which means it popped up, it pulled back just for a second and gave you a micro pullback. So you can see micro pullbacks on this little instance right here.

So it moves higher, it pulls back just for a second, and then it continues all right. Sometimes it looks like this and sometimes it looks like that. So a micro pullback is a totally valid entry. Now in this case, that would be aggressive and so it would be a bit of a more conservative entry would be waiting for the pullback to occur and then buying the first candle to make a new high.

Now notice I have this dotted this, um, this little sort of dotted line here. As soon as this green candle breaks the high of this previous red candle, I'm a buyer. Now if this candle, let's say the high this candle is Five dollars. The high of that red count is five dollars when this starts coming up if I see green on the tape which is right next to our level two window.

If I see green on the tape at 495 496, 497, 498, I may go ahead and I likely will go ahead and buy to anticipate the break through this level. Sometimes I'll take a starter 5 cents or even 10 cents early and then I will add as it approaches and comes through that level. I'm then looking for continuation and resolution of the pattern which in this case is through the high of day. If I'm feeling aggressive, I can go ahead and add again as it breaks through high of day.

and then as we squeeze up here I make the decision of either taking profit off the table or if let's say right up here is let's just say this is Six dollars. I may say I'm gonna go ahead and add for the break of six because this is parabolic. It's moving so quickly that I have the opportunity to keep adding because this could go higher and that type of decision would be based on the quality of the daily chart, the quality of the catalyst, and the flow to the stock. So when we're looking at these patterns, these are all.

these are just examples of patterns, and there's literally hundreds of different patterns that you could choose to trade. One of the things that's going to be important for a beginner trader is making a decision about which patterns you want to focus on, right? I mean, ultimately, that's that's an important component of of your strategy. So as part of creating a strategy for reference, So on this page here, this has a Pdf of my micro pullback strategy. So the micro pullback strategy is what we've got going on right here.

That's a micro pullback. It pops up, it pulls back for a second, and it continues. It doesn't even form a full pullback like what we got right here. or like what we saw right here.

These are both stocks trending up. This is a stock trending down, and then it's a reversal trade. All right. So this is a very well defined pullback.

This is a well-defined pullback that has a false attempt, pulls back and then goes higher. And this is a micro pullback. So if you want to learn more about those specific strategies that are around those patterns, then you know you should check this out if you already have a strategy that you're sort of trading, but you just feel like your entries aren't dialed in, You're getting in a little too high. You're not selling it quite the right place.

You're not fully maximizing on the opportunities of these trades. Then when we get into the live trading archives, I think that's going to help you. Uh, quite a bit. All right.

So let's talk about the entry. And by the way, for people that are tuning in maybe a few minutes late to this live broadcast, thank you for tuning in, Make sure you hit the thumbs up. I'm donating a dollar for every thumbs up that we get today. Up to twenty five thousand dollars.

So uh, please hit the thumbs up. You can donate a dollar to charity right now today by hitting the thumbs up. And if you share this video, I will donate two dollars. So if you share this video, you can donate two dollars.

So each one of you right now can donate three dollars to charity. All right. Uh, and this is for um, humanitarian causes in Ukraine. All right.

So for people that are in Ukraine right now, so make sure you hit the thumbs up and make sure you share this video. Okay, so now let's talk about the entry. All right. So what is the apex point of this pattern? So back to our little case study.

right here. The apex point of this pattern. If this, if you're going to take an entry on the bull flag, then the apex point is the first candle to make a new high, Which is right here. That's the apex point.

Now some traders would take a high a day break, and if you're taking a high day break, then your apex point is literally high of day. All right. So this could have two important levels. I would say important levels to watch this right here and then this up.

sorry, this right here and then this up at the top. All right, depending on which strategy you're focusing on. If you're taking a high day break, you're going at the top. If you're taking first candle, make a new high on the bull flag, pull back, then you're entering, entering right there.

So what's the apex point of this pattern? Now, if we go back to our previous slide, you'll see that this pattern down here initially was a bull flag. It squeezes up and then it pulls back and the first candle makes a new high right? So that's your first entry. First candle makes a new high right there. Max loss is the low of this pullback.

It goes up, but it doesn't break through the high. Okay, so this ends up forming a false breakout. However, this is a different pattern as it continues to consolidate above the low of this pullback. This is what we would call a longer period of consolidation.

It is a wedge. We can call it an Abcd pattern, and now we're watching for the price to break this high right here and then go through the high a day. And what we find is that when these stocks continue to trend in these small ranges that eventually they break, they can break out up. Or they can break down right? So there's no guarantee that's gonna break to the upside.

But if this is a stock that has a strong catalyst that has a relatively low float, it's a popular stock, a lot of people are watching it, the price is right, then there's a good chance it'll break to the upside. And time of day is also a factor. But there's a good chance. So in this case, initially with your entry down here and your max loss, would this have been a winner or would this have first trade have been a loser? Well, that depends on how you trade.

If you're an aggressive trader using leverage, then there's a very good chance that you would have taken profit off the table as it came up here or as the first candle closed red and or made a new low versus this pullback because this was telling us that it can't get through the high on this first attempt, right? It's pulling back all right. So this should have been a winning trade, but if you had a very small position maybe you'd say well, it wasn't up enough to be a winner. It didn't hit my stop so I'm still holding it, pulls back almost all the way back to your stop, but then it comes back up and then on this attempt as it breaks through the high. this is where you would look to maybe take some profit off the table, but a more aggressive trader could take two, three, or four trays in this area.

Your first trade is right here, your second trade is right here. and then you've got another trade on an ad for the break through the highs so you can be very active if you'd like to. or you could be less active. So you have to first figure out what is the apex point of the pattern.

and if you don't know the apex point of the pattern, it's because of the definition of apex. The other way of saying it is what is the point that needs to break for this pattern to be resolving. All right, if you don't know what that price is, you need to get a better understanding of the pattern that you're trading. Then a question is what is the proximity of the nearest half or whole dollar relative to the apex point? This is important because we have psychological resistance around half and hold dollars.

So as stocks are approaching these levels, it's very common that we find resistance. So back to our little chart here. So in the first example, I think I said this was like 498, right? So 4.98 or that was 5. So I'd be a buyer as it's approaching that critical level of 498 for the break of five, I might be buying at 495.

496, might even be buying it for 485 depending on how much it pulled back and what the level two looks like. Now, level two and time and sales. I'm going to show you when we get into the live trading archives and in just a few minutes of this this episode. But if this right here, this high a day was at 5 50.

then your high a day is right at psychological resistance, and there's a higher likelihood that we're going to come up and we're going to double top against that level because it's psychological resistance. Then we need to pull back, hold over five psychological support, and then come up for a second attempt through five. So this is something that we're going to struggle with a lot around half dollars in whole dollars stocks that are really, really strong. Sometimes they can just break right through those levels, which is phenomenal when they do, but more often than not a stock is going to run into a little bit of resistance.

So if the apex point of your chart or of your pattern, for instance, is like 495, that presents a problem. Because the apex the breakout spot is just below a psychological resistance of a wall. We'd rather have an apex point be right at it or just above it. So when it has that burst of volume coming into the breakout, it's enough to carry it clear through that level when it has that burst of volume.

But then it runs right into a sort of a ceiling. That's when you can have a false breakout. So what is the apex point of the pattern? What's the proximity of the nearest half dollar whole dollar relative to the apex point, and what is the max loss of the pattern? So the max loss, generally speaking, is going to be the low of this pullback right here. So this is your max loss.

So if you're entering and it's the bottom of that wick, So if you're entering in, the high here is five dollars. but this is 425, that's a 75 max loss. That's going to be too much risk. Most likely, it doesn't mean you can't take the trade.

You could still take the trade. And you could take the approach of saying you know what? I'm going to buy it at 4.95 but I'm not going to hold it all the way down to 425. I'm just going to set an arbitrary stop on this at 475.. So you know risk: 20 cents and it might drop down to 475 and then come up for a second attempt at five and the chart will look like it was never a bad chart.

Why did you stop out? Well, it's because I got in with a little too much size near the highs. I couldn't afford to hold through the whole pullback. Different traders will have different points of view on this because I try to leverage my account. Which is to say, I take as big of a position as I can possibly take for a lot of setups.

then I'm not going to be in a position to hold through a really big drawdown. If you're gonna hold down 75 cents based on two to one profit loss ratio, you should have the potential to make a dollar fifty. So I'd rather hold down 15 cents. With the potential to make 30 cents.

30 cents, especially on a three. Four dollar stock is much more obtainable than you know, 50 75 cents or a dollar a share. So you know again that that's you, know your discretion, do as you'd like, use either a tight stop uh, and know that sometimes you get stopped out and then it'll end up ripping. But of course, the best setups work right away.

You know, the best setups don't falter, they just go right through that level. So if it doesn't work right away, well, you know it's probably okay. You can always get back in if you really want to, or you can use a looser stop, but then you're gonna have to use smaller share size and the profit loss ratio still might not make sense. So the max loss of the pattern and then, uh, enter the position, then this is what I do.

if there's high relative volume and green on the tape as it approaches the apex point. So high relative volume Again, the term that we talked about already. that's versus the relative volume. Over the last 14 days, we want to see it at least two times, but preferably five times or higher.

And just for reference today, the stocks that were on the scanner. Uh, so this one leading Gapper: Relative Volume: 710 Spi Relative volume 22 Acer Relative Volume 310 I mean, these are all except for this one. They're almost all far in excess of the two to five, so usually that's not going to be hard, but sometimes you might have a stock that just pops up on one of your scanners in the middle of the day and you know it might have lower relative volume. I mean all of these are in this column here are still pretty high.

This is 3.46 but this one's 0.42 right? So that might be one where we say you know what? I: the relative volume is too low. I can't justify a trade on it and generally if you looked at that stock what you would find is that it doesn't have news, so we don't really know exactly why. You know it's popping up five or ten percent. You know it could be.

I don't know. some large trader, hedge fund or mutual fund decide to take a position. There's a million reasons, but the likelihood that it's going to continue intraday to become you know, a 100 move without a catalyst is sort of unusual. So then we've got our entry order types.

Okay, so for actually executing your entry, so we're going to use, I'm going to use hotkeys generally, but you can use an order entry window if you'd prefer. It's up to you and you'll see in the live trading archives examples of me using both. so I'll show you that we'll get. We're going to get into those examples in just a moment and it'll be a little easier to explain, but I just want to make sure I kind of covered the bases here with this first.

So um, using hotkeys? Uh, or in the order entry window, my order type is a marketable limit order. So a marketable limit order. Uh, that's a limit order Where you're saying okay, the ask on this stock here. Um, you know Right now is let's say the spread is 4.95 by five dollars.

So I'm going to put my buy order on this at 5 15 and I'm going to press the buy button. And the second I press the buy button, I'm going to start buying shares at the current price of whatever it is 4.98 4.99 I will keep getting filled my position, but I won't fill anything higher than the high of my limit order. So in the case of that example would be 5 15.. I do that because and I always buy on the ask.

I don't buy them the bid. I buy on the ask because if a stock is strong, I will not have the opportunity to get filled on the bid. If it's really strong, it's moving quickly. right now, I won't fill on the bid.

So breakout traders always buy the ask and then we also will try to take profit on the ask. We'll talk about that a little in just a second. So as soon as I get in trade sometimes people say ross, how do you manage your risk, Do you set a stop order? You know, what? Do you? What do you, How do you do this So I do not use live stop orders and I never have. The reason is because if you use live stop orders, if you put a stop order out, let's say you buy 25 000 shares of this stock.

Um, that we were just talking about. Let's see by 25 000 shares of the stock at five dollars and you put a stop order at 475, it's a live stop order. Remember that broker dealers can see your stop order and they could stop hunt. Stop hunting is when the market makers and a sell order goes through.

They clear the book, it drops down and as it sweeps down, every order that goes through below someone's stop will make those uh orders execute as market sell orders. The orders fill, the stock drops and then immediately fills back in. So you get these flash drops which are these candle wicks and then it fills right back in. That's stop hunting.

It's called stop hunting and I never want to subject an order to get uh picked up by Stop Hunting market makers. So I don't put out live stop orders now pre-market Uh, you can't put out stop orders anyways. So prior to 9, 30 stop orders aren't allowed so it doesn't really matter for pre-market and for regular hours. Even though I could do it, I don't do it.

So mental stop only. Which means I need a button on my keyboard that I can press and when I press it, my order will sell at the bid to bail out. It's basically a panic sell button. I don't want to have to pan excel if I can help it, but I have that button on my keyboard just in case.

All right. So that's a hotkey. So now let's talk about the exit. if this is a leveraged position, All right.

So a leveraged position would be where you're using leverage or where you basically have you know a huge position in the stock. I'm probably going to want to take a little profit through the breakout. My highest risk is from the moment I am in with full size until I've taken some off the table, so I'm going to be inclined to take some off the table. and then I can look for continuation to add back to my position.

and this starts getting into very active trading, which is what I do when we've got parabolic momentum for just base hit stuff. I may not add back, I may just get in and then take profit through the breakout. If it's a smaller position, you can hold through the breakout and then look for continuation to the next resistance level, which is fine. It just depends on your account size and how aggressive you are in in your strategy.

So depending on my cost basis and share size, if I see red on the tape, large sell orders, or a red candle on the one minute, and certainly on the five minute, that may cause me, um, to go ahead and bail. All right. So and if I did that, I'd be trying to sell on the ask, but if I can't get filled, then I'll hit the bit. However, using my hotkeys, I sell into strength and I avoid hitting the bid at all costs because it feeds weakness and it will hurt my existing position.

So if I'm holding 25 000 shares and then I hit the bid for 12 500 shares, it's gonna show as red on the tape, right? And what? That red signals to other traders is Weakness: When I see red like that, I interpret weakness. I never want to hurt a position that I'm still holding and so I'm always going to try to sell into strength now. A lot of beginner traders out there certainly robin Hood traders traders that are on their mobile phone. They might just do market order entry.

market order exits. Market order entries will be green on the tape because they're a buy order market order exits will be read on the tape and if you hit a market order exit with a large position which we sometimes see on some of these meme stocks, it can cause these momentary flash drops as the market makers clear the book. The fills stop hunting, maybe perhaps as well and then it fills back in. So that's something you have to be careful of.

It is more common on certain types of stocks, especially meme stocks where you have multi-day hold uh, traders that are holding positions from you know, days or weeks previous that the stock has been trending using hotkeys. I can also set profit target orders so I can send order to take a quarter of my position off the table up 15 cents or 25 cents. I mean, all of these hotkeys you can configure however you'd like. I will do that in certain instances.

Not all the time. I'm more likely as it's going up just to put out my order at that moment to take profit. Um, at the ask. You can also use offsets above for profit or below if you've got a stock with a big spread, which is fine, but if you have a tighter spread stock you wouldn't want to do that.

Probably stop the rest at average cost. All right, So stop it which is break even if it's a false breakout. I'll still try to get out on the ask if I can, but I'll hit the bid as a last resort. Okay, so I went through that fairly quickly, but let's go ahead and look at some live examples and see if this helps.

add a little bit more context to those those descriptions. All right, So hang on a second. And by the way, those just getting tuned in. In case you didn't already know, I am donating a dollar for every thumbs up we get during this video for humanitarian causes in Ukraine.

and I'll be donating two dollars for every share that this, uh, video gets. So I would love for you guys to share. Hit the thumbs up and share this broadcast. All right, So let's see.

Okay, so this is gonna be the first one we look at and so this is one of the live trading archives. Um, one of the live trading archives that I've included in this um, bundle of free downloads we're going to give you guys is from a day where I made a hundred and thirty-two thousand dollars. so you can check that out. That's a pretty cool one.

All right. So let's look at this here. All right. So first, we're gonna get oriented.

so let's look at our chart pattern. Okay, so our chart pattern's right up here. All right. So we have a stock that has made a big move.

The ticker is Abio. The percentage gain on the day is 210 percent. Okay, this is a big percentage gain. let's see.

Um, let me check. The float on Abio today is 14 million shares. On this particular day, it may have been lower, I'm not sure. But in any case, so we've got this.

move up. It's about 10 30 a.m We have a red candle at the top. a second candle pullback. This candle has formed.

What you'll notice is that I have already drawn a line at 12 51.. Note that 1251 1250 is psychological resistance because it's a half dollar. If we look at the one minute chart, you will see that it pulled back quickly, came back up and was under 12.50 Couldn't break. Did one of those flash crash kind of drops.

came back up, went sideways. tried to break 1250 again, couldn't do it. Came back down double bottom off of 1160.. Now if you're a dip trader, you could certainly look for a double bottom off of 1160 as one of your entries.

That's an entry that I would consider to be riskier, and since a lot of you are probably beginner traders and feel free to comment below with how long you've been trading which is out of curiosity since my guess is many of you are beginner traders, I would say that dip trading is not the place to start. While you might think well, you get a better entry buying on a dip. That's true, but it requires a high degree of intuition about whether or not the stock is dipping and is going to keep going higher or has reversed and is going to keep going lower. So that educated intuition takes a lot of experience.

So I would start by focusing on breakout trades. Breakout trades are where you're going to have high volume. It's where you're going to have breakout or bailout instant resolution. When they work, they work right away.

When they don't work, they don't work, There's no guessing, and you're not going to be too much in the habit of buying stocks or selling off. So thanks for for chiming in there on how long you guys have been trading. So a lot of you are fairly new so I would be very cautious about buying dips. Okay, so um, so on this one.

Um, let's see. so this is our chart pattern so I'm gonna go ahead and press the play button. Uh, and this do I? Maybe I'll So if you don't know what this window is, this is a level two window. I have other videos on how to read level two, how to use level two, so I have content around that if you're interested.

Um, this is our order entry window right here. Okay, so this is my order entry window and I have this same setup for four different stocks one two, three four. and then I have the chart in focus for the one stock that I'm trading. Okay, so in the case of this stock, I already have an order prepared at 12.52 That's the price for 2 000 shares and I have my mouse on the buy button.

I am ready to click the buy button and you see there's some green on the tape right there. So when I'm talking about the tape, this is what I'm talking about. This section right here. Those are the transactions that are actually going through the market.

There's more green on the tape there at 40.. So the question on this is will I get in a little early to try to anticipate the break through? 1250 Hands on. There we go. So hand was on the buy button right there.

Now 2 000 shares as many of you know for me is a starter position. So this is a trade where I took a starter position at 12 20 and 12 25. now I didn't really care whether it was 20 or 25. My order was still 1252, but I clicked the buy button twice and in the same second I filled five cents apart.

My order's filled actually between the spread. So this first entry is not one that is a beginner trader. You would have had the confidence most likely to take. Your entry is going to be 12.50 Now you pay a higher price for confirmation, but you avoid the risk of false breakout.

At least the fact. Like right here, if this drops back down to 1160, you'd look back at the chart and you'd be like why did you even buy it You didn't get the first candle to make a new high. So now up here I have added at 37 and so initial starter was at 20. Now adding as we're approaching this breakout level 12.50 Now we see on the level 2 a 15 000 share seller at 42.

new order. I've moved up to 1261. that seller is starting to get bought up. See it went from 15 to 10 to 7 7 000 shares on the ask and then it pulls back again.

This is a chart that I would say is multi-time frame alignment. That means both our one minute and our five minute are giving us the same message. Now there's a little bit of a red flag on the five minute chart and that is that. The high a day volume.

Uh, the highest candle was a red doji which is a reversal indicator and it's on fairly high volume. Aside from that, it's a pretty good five minute chart for a first candle to make a new high. It's also just a little extended off its nine moving average which is this gray line So it's not perfect, but it's pretty good. The one minute is fine and the level that we need to see break is 12.50 So that right there is what we look for that's called resolution.

That's the breakout. Now one of the problems is if you waited for the break of 1250 in this case, you might have missed it, right? So I now have 10 000 shares at an average price of 12.32 and I'm up 3321 dollars. So you can see my open P L right here and this is a up a spot right here where I could take half off the table if I wanted to. Alternatively I could add because we're still just opening up.

Confirmation is just started and we still have a target of 13 and I don't remember what I do. So we'll we'll we'll both find out. Uh, but let's just rewind that for like three seconds. So where was the indicator? This was gonna break? Well, if you were looking at the chart for your indicator, it happens.

You don't really see it on the chart. it just breaks through this level. So on the chart you would probably say well based on the chart pattern, the the entry is 1251. But of course it'll break quickly because that's the apex point.

So I'll probably want to get in this around maybe 12, 45, 12, 48. Just a little bit under that level to catch that break through that level. Now let's just step back for one second and talk about traitor psychology. So we want to think about the inverse position.

What if you were short this stock? What if you shorted this stock? Maybe around 1240. One of the times it came up to 1250 and then reversed off that level because we know that there was psychological resistance at 12.50 So you're short at 12 40. it drops down to 11 or 2. sorry 12.

Maybe you add short. It flushes down to 1160. It looks like it's going to roll over and it's done. You've got that red hi a day doji so makes sense.

But then it starts curling back up. Where do you cover that position? Well, Your stop is 1250 because that's the pivot. But alternatively, you're certainly covering it high of day, which is 13.. Now of course, some short short sellers would say I'm going to keep adding at 12, 50 and 13 and if it goes to 14, I'll add more.

If it goes to 15, I'll add more, and if it goes to 25, I'll add more. But that's also how those short sellers blow up accounts. So everyone has to manage risk whether you're long or short. So 1250, because that's a place where a short seller will likely cover, you should see short covering to help propel the stock through that level.

That's what you want to see, all right. So at 12.50 at 12, 45 12, 46 12 47 12 48, you're gonna have some short sellers who start to cover a little early so they don't get as much slippage on the breakout. This is the exact same as what I do when I'm selling a stock at 1205 before catching the break of 12 and then slippage down to 1160 at the bottom of a bottoming tail, right? So it's anticipating what's going to happen. So as a long trader, you can capitalize on that by getting in as you're seeing green on the tape to anticipate the squeeze through that level.

You're also going to have some traders who use buy stop orders. So a buy stop order is an order that will trigger when a stock crosses a certain price. So that's that may be something that someone would use if they're taking more of a five-minute long trade, probably with smaller share size for a longer hold time. If they put that order at 1250, it's going to execute market long as soon as it breaks 1250.

So let's go back to this example here. So let's again reorient ourselves. So we've got 1242 on the ask. We've got Green on the tape and right there.

All of a sudden, look at this green. Now we're at 1250 and with all of that green, it's going to propel it through this level and it's going to snap immediately to 76. 75. and I put the order out right there to take half off the table.

Okay, so I took half off the table. selling into strength. I'm going to be happy to add back to this position. But first, I'm taking profit off the table.

I'm protecting myself in the event that this becomes a false breakout. Where it goes, you know, 1266 and then immediately reverses. So I'm you know, you know, taking a little profit off the table. which is the right decision.

so sort of adding a little cushion. And then the high was 1280.. I've got another order here at 1266 to sell the ask. It's not selling.

This has to hold over what level well. psychological resistance was 12.50 so it can come back and re-test 1250. And if you're aggressive, you could buy a dip off of 1250 or 1255 with a stop at 12.48 right? Because again, you're setting your stop right underneath Psychological Support and this just came down and it held that level. So now, is it going to break through 1240? Uh, 1284.

Let's see. So let's back this up again. let's watch the whole thing all right. So we're coming up.

We break through 12 7, 12, 50. We'll go 1270 1277 and I take a little bit off the table at 69. now we've got 12 74. I put an order to sell half it doesn't fill and see how I place an order at the Ask and then cancel it and place a new one.

If my order doesn't fill, I'll I have to cancel and place a new one. But I'd rather sell on the Ask than selling the bid And look at that. There we go. Okay, now this in this instance, look at that I just added at 1207.

Sorry 1307. now we're looking for a squeeze up to 13.50 Look at how fast that trade was. Let's back this up. So this would have been a perfect example of a dip off of 1250 right down here.

1253 1258 This would have been a great place to buy with a stop at 12 48. And and that's totally fine. So this is what we would call right here. This is a one minute micro pullback.

So on the five minute this is a five minute bull flag. We have resolution and this on the one minute we would call the first pullback following the five minute breakout. Or we would call it a one minute micro pullback following a five minute breakout. So we popped up.

I was already in from before, but if you weren't already in right, get in the mind of someone who's not already in. If you're not already in where would you buy? well, you'd let it pull back and then you'd buy the break over this candle and your target would be a squeeze to the high. What if you're still short? What if you haven't covered yet? Where would you cover as it breaks through this level because you don't want to be holding as it squeezes through, the high could go into a halt up. All right.

So let's watch this again. We'll back this up. So the entry again. On this one, my entry was a little bit early on a sort of a dip, so this wasn't the the best example for a beginner entry.

Because I was. I was adding it. Um, 1225. Sort of mid-range with a stop just under 12 dollars.

but then I added at 12 35. but right here as this comes up. so you could have certainly added right here at 12 40. And does it break? Not quite okay.

That's okay. so you still have your stop most likely at 12. when you get in a little higher, you've got a bigger stop and then you watch for the second attempt. So now it's coming.

Let's see. 35 46, 40 Set 40 Uh, sorry, 36 37, 49 And this is the place to be. Punching that buy button and now you could take a little off the table if you'd like. or you could even keep adding right in here depending on how aggressive you want to be.

adding right there at 58 and 60 would be a great dip. Trade stop is at 48. now we're looking for the breakthrough 85. it breaks.

85 goes right to 97. now we're looking for the pop through 13. there's 98 on the ask, pops up, there's 1308, there's 13 24. I got an exit 4 000 shares at 13 24..

Okay, so this is just one example. Now for reference. Um, again, this is. this is what I do for members of Warrior Trading.

We've got any more examples I could possibly count. Our slide deck is over a thousand slides and it's all strategy development because there's more than one pattern. This is just one pattern and this is one example of that pattern. But I'll show you a couple more today.

All right. So now let's look at um, this one which is called let's see again, those you guys who haven't already downloaded, um, uh, or signed up here for this download, make sure you do that. You'll get a copy of my micro strategy lesson pdf, a copy of my small account strategy worksheet, some more live trading orders just like, um, live trading archives just like the one I just showed you. I appreciate trading checklist and a special video on holding losers too long.

All right. Okay, so here's another one. All right. So this one.

This is a micro pullback. Okay, so uh and yes, thank you for those who are hitting the thumbs up. I really appreciate it again. donating a dollar for every thumbs up and donating two dollars today for every uh time the video is shared.

So right here this stock wahfu, it's up 349. It just squeezed up through the volume weighted average price. That's a technical indicator. Again, if you're not familiar with those indicators, I've got other videos where I talk about them so now we're on a one minute micro pullback following the break of V.

Wap. Okay, the high is looks like around 12, uh, 10 12 or so. I'm holding uh, 333 shares at the beginning of this video and watching hand is on the buy button. So again getting oriented, we've got our level two.

We've got some green on the tape order entries ready for 10, 10 and 30 cents. share size 1500 shares. Hands on the buy button are we going to hold 10? Psychological support. Actually looks like the high right here was a little a little higher, maybe around 10 dollars and 20 cents.

And one of the things here is that this candle closed red. So like let's look at our volume profile. High volume green candles Light volume red candle. Now we're looking for first candle to make a new high high volume.

So for those that are curious like what's the benefit of you know being a member of warrior trading One of the benefits is the live market commentary while I'm Trading. Because I've been doing this for so long, I can keep all of these things in my focus at the same time: Volume Profile Position relative to technical indicators position relative to high of day the candle of the high a day volume The daily Chart: This is a lot of stuff to keep organized at the same time and this moves quick. So it really helps to have you know first base coach. Uh, kind of saying.

This is what I'm looking at here and it's not just first base coach. I mean I'm actually running around the basis here doing the trades. Okay, so let's back that up. So this was an entry Exactly the first candle making new high.

see the green on the tape right here at 14. Boom Boom! That's where I'm pressing the buy button now. I just bought as it squeezed up here 6 000 shares. Okay, this candle has just started to make a new high and now we're looking for a squeeze through.

the high right there. target is 12.50 my cost basis is 10.14 Okay, so let's watch this. there's green and look at how fast that resolves up to 10.49 Now I will say that this doesn't have perfect multi-time frame alignment. The five-minute charts Not perfect.

The five-minute charts in fact a bit extended with this entry up here. but this is a one minute pullback following a fresh break of V Web and this is where short sellers will start to get squeezed out who were holding short for an all-day sell-off? Because now all of a sudden uh-oh this thing's back above V-wap and it's looking strong for a move up to 12 39. So let's see how high it wants to go to manage risk. I take a little off the table into that squeeze right so it took a little off the table.

There new order is ready to add back the high. This candle is around 10.60 added back right there at 10 55. I took profit and then I added back on that micro pullback at 10 55. Now looking for 65, 75 and 85? The red to green is at 11 11.

Right here is today's open. So there's 75. Now I'm holding 6000 shares to 42 average and I just added right there for the breakthrough. Eleven taking a little profit off the table as we squeeze through the psychological resistance of Eleven Dollars.

Now Eleven is holding a support. I may wanna consider buying a dip right here. Okay, 11 broke. still holding a 1052 average, putting my order 1150 and added right there.

10.99 average 7 000 shares. Long profit at 11.25 Look at how fast this is moving Now These are bordering on quick breakout trades right around psychological levels of support and resistance. Bought the dip right there at 11 13. so that was a dip trade.

It should break over 25 real quick. We don't want to break below 11. And I stopped out there for a small loss as it came back down to 11.. So you know again, this is initially this was the first setup and within that I took three trades.

Was it three? Or maybe four? So the first trade was, uh, the first kill to make a new high. And then I took profit at 55. and then I added back at 55 with the squeeze up to 11. And then it pulled back.

and then I added back around 11. Whatever it was for the move up to 11.50 So trading around half dollars. Whole dollars. Very aggressive.

That's the way I trade it. You don't have to trade it that aggressive. You could trade however you want. You could say oh well.

I'm just going to buy this and I'm not going to sell it 11.50 I'm going to set my target at 12 19 and I'm going to let it work. That's fine too. A smaller position, but a bigger move. It's fine.

Just different ways to approach trading. So my exits are entirely with hot keys by pressing the buttons. Little pause there that looks like possibly a little order, a little, um, internet latency. It's very unlikely that the level two actually paused.

Let's see. so this is where I got in. there. You go.

look at that. Wow. that right there was a clean trade. Let's back that one up.

So the first dip didn't work. the second one did so. bought the dip at 11 13. Stop is 11.

Now that's the same thing I did before. Remember I stopped at 1101 so I lost like 900 bucks. But I got back in. I tried it again.

Alternatively, where could you wait to add? Well, let's look at the clock. I haven't even mentioned this yet. The clock. We've got our clock right up here.

It's showing 10, 22 and 40 seconds. How many seconds do we have left on this one minute candle? We've got 20 seconds left. Of course, 60 seconds in a minute. So what we're looking at here is first candle to make a new high? All right.

Now our high was 11.50 and my suspicion here is that this is going to break. Look at that. Now this candle is turning green. Now we've got 35.

This is a micro pullback and I'm adding right here at 44 for the breakthrough psychological resistance. Even if you only add there, that's fine. As your first trade, you get in at 11 44 for the break of 11 45 11. Sorry, 11 50.

And watch 11 50 hit pause for a second. Then that's 11.72 Now you want to go real aggressive? Add here at 11.75 Why not? You've got an average of 11 21. Do it or take profit. Either way, right? if you're aggressive, you're going to add and sometimes I will and sometimes I won't.

In that case, I sold it 1181 and that was most likely a hotkey mistake. I probably meant to sell half and I accidentally sold the whole thing. And sometimes that happens with hotkeys. You know you've got a whole set of hotkeys on your keyboard and in an instance, you press one and then oops, uh oh, I pressed the wrong one and on that trade, with nine thousand shares, I left 40 cents on the table.

Four thousand bucks. Just about. So now we're coming up to 11 26 and I realized, oh, shoot, I fill up. See, my mouse is over here at this and I'm realizing I filled at 1181.

That's not a good fill. But oh well. So now watching 1126, the halt level. What the hell level moves up there we go.

There's 11. Sorry, there's a 1252 now. pulling out the chart a little bit more, recognizing of course we had that earlier high, near 16 dollars. So this ended up being a really epic one-minute pullback.

following a break of V-wap and I. I very actively traded it. I got in, I got out, I got in, I got out. In fact, what I have done better if I just took the trade and held you know for the whole move? Sure.

But in this case it went to a high of 1150 and then it dropped to 10.75 That's a 75 pullback. I went from being up a dollar a share to being up only like 25 cents, right? You know that's not, that's not great. So what'd this do? Um, was that the end of the video? Yeah, I guess that was the end of the video, but that's fine. All right.

So uh, I got another one. Hey, by the way, if you guys enjoy these kind of videos, if this is helpful for you. this is how I teach for students that are over at Warrior Trading. Generally the classes are, uh, they're They're uh, a combination of going in and out of a slide deck where I've got a ton of examples.

All right. So like this for instance. So I'm going in and out of this slide deck where I've got all of these examples. This is a slide deck that's like a thousand slides long.

All right. So down here. and then we go into the live trading archives. So one of the goals that I've had for the way I teach is that I try to connect the dots.

so there's a clear path in the strategy. like sort of the description of what trading is and what I tr what I trade. So I could have just said okay guys, entries and exits. Buy the first candle to make a new high and then take profit as it goes higher.

Video is over. Hit the thumbs up and that would have been a less than a minute long video because simply that's what it is and that's what a lot of educators do. They just give you the general generally speaking, this is what it is and then they'll show you maybe one or two of their trades like this is what it looks like. You buy here and you sell there.

Done. Okay, what I wanted to do because the feedback that I got from a lot of our students early on was that I just took a class with So and so and the problem is, talked a lot about their trading showed a lot of patterns and that, but there was this huge gap between all of that. and like the actual execution. Like how do I actually execute that strategy? How do I find those stocks in real time? Where do I actually press the buy button and sell button? And so they finish those classes feeling like I'm I'm lost and I don't want, um, I don't want you to feel that way.

As always, my legal disclaimer is that I can't guarantee that you're going to find success and trading is risky. My results are not typical, but I've made a real effort to make this educational experience as thorough as possible. Okay, so let's see. so we got that one.

Um, so we've got a we've got another one here. um this one also a little bit more active trading. Thank you guys who have hit the thumbs up. I appreciate it and of course um you are making a donation here.

So okay all right so let's back this one up. This is a quick video so here we go. Very similar pattern that we just saw, um, a moment ago, right? I mean this is the same pattern that you see right here, right? So we're looking at first candle, make a new high. We've got three, three, four green candles, a couple candles of pullback first candle to make a new high.

Okay, so what do we have here up on the screen we've got four green candles, two red candles, First kale to make a new high. So I'm a buyer at 16 18. this is a cannabis stock so just added a thou two thousand shares there at sixteen dollars and nineteen cents. Okay so that's my that's my entry.

Now this is already starting to resolve the high of this candle right? What's our profit target? Our high is just under 17. daily Chart: It is below the 200. not great, but it has a lot of room up to the 200. so it's it's still worth trading.

Okay, so there's 16.38 Now you'll notice on this one a little bit stacked up. See how there's a big stack of sellers at 39.? see that wall? You can see that on the level Two there's 40, There's 47, There's 50, there's 60.. I took a little off the table there into strength so this was basically of. And then there's a 10 000 share bid.

That's good to see. So this is a fairly simple first candle to make a new high. Now the ad back that got a little more aggressive. Okay, so let's rewind this.

Let's do it again. So why did I buy here at 16.18 cents? it's the first candle to make a new high. What's my max loss? Technically the low of that candle 1570 ish. but I'd rather set the stop tighter at around 16.

So stop is 16. Which means on this trade, I'm risking 400 bucks. I'm in it just under 16, 19, 16, 20.. So right here I'm up 200 bucks.

Which is okay because that's a one-to-one risk to reward ratio. So there we're coming up to 50. So I'm up 632 on this trade. So we've got 1650 on the ask.

There, we break it, I add 1650. Why psychological resistance I add For the break through that level. Scott, No, I don't get out with market orders. I always say if I always try selling the ask, that's a that's a limit order because I'm choosing the limit price with my hotkey.

If I have to hit the bid, that would be a marketable limit order. But just a marketable limit order. All right. So now my average is 1624.

I added a thousand shares and as soon as it comes up to that level, I put an order to sell half at 16.59 All right. so that's a one cent offset below the ask. I take a little more profit scaled down to just 375 shares so about 800 of profit. And then look at this, the level Two.

Let's see. let's back that up one second. See that 10 000 share order right there. I saw that bid flash up and I thought, you know what I should do, I should buy Why? Because if I buy here at 1654 5000 shares, I can always turn around and sell to 1648 the 10 000 share buyer.

So I'm really only risking a couple cents. So I add back right there. 2000 shares average is 51 and there's 1680 on the ask up another 400. So that trade was based almost entirely on level two on the chart.

Of course, I knew we were on a breakout, maybe a little bit of a dip trade, but really, it was a level two based entry taking a little off the table there at 83.84 new order goes at 17.. now can I buy here 1695 97 for the breakthrough? 17. let's watch if we see green on the tape. Now we're seeing a little red so it's pulling back a little bit.

still holding 594 shares. At 16.50 it flashes down, which is not super pretty. So I glance over at the one minute chart and it's okay. I mean, it broke out.

it's not perfect. Now we're back down to 1643 and looks like that was the end of the video. Okay, so I don't know how much where it goes from there, so I might have lost on the last 600 shares didn't break through 17.. All right I have.

Do you guys want to see one more example? Or two more examples? Let's see you tell me. Okay, all right, so live trading Itc All right. So let's watch this one All right. So this one, um, two more examples.

All right. we'll do two more examples. Okay, so this one here a little bit of a this is a little tricky. Okay, so on this one, I was using my small account.

I was doing a small account challenge. So the pivot on this chart is this level right here, the break of that level and then that sends us higher up towards our previous high a day which is around 29.. So we've got a little bit of double top risk here. and the high: That candle was just under 27..

The Low: Big range. If it can hold this level, then you're looking for a squeeze back up to the high. Now we're looking for a micro pullback right in this area and then the first candle to make a new high through 27.. So let's move this a little bit further forward.

so we're pulling back and let's watch this. now. we're coming back up a little bit more. so see that first candle just made a new high right there.

So you could have bought that first candle to make a new high. This is a small account challenge so I wanted to wait for confirmation and take a quick trade through the highs so the entry is going to be a little closer to 27. I need more confirmation to trust it. Paying a higher price for that, The winner will probably be a little smaller, but I'm okay with that.

So moving my order here up to 26.90 100 shares, 27 100 shares, And right here as we're seeing green, I'm adding 300 shares at 26.78 for the break of 27.. So looking for 85 and then 95? A break of 27? Psychological resistance. Okay, so up there 27. We had a little bit of a seller 10 000 shares and it broke right through.

No problem, No problem. Okay, now if you want to be aggressive, you could add at 27.25 for the squeeze up to 27.50 New stop 26.99 20 or 27.05 set the stop just above this level depending on how you want to trade it. So now we're looking for 27.50 and then a squeeze up towards 28.. new orders at 27? Uh, 50..

adding there at 40 to anticipate the breakthrough: 50. there's 60. There