That might be the best trade ever in your life that was absolutely the best kid you know. like um I probably had close to a seven figure trading account and at this point I was like oh, I gotta grow this count so I can retire? Wait? so you went all in I Did I have an appetite for risk? Oh no. Ten dollars that stock was going up I was losing a hundred thousand dollars in this special episode I Had the privilege of sitting down with a seasoned momentum Trader whose Journey began in the most unexpected way through Neopets an online game that most Millennial kids would remember this Trader is not only very experienced, but also one of the funniest personalities I've met. Be very prepared because you're about to hear one of the most unexpected yet hilarious stories from a Trader who once fearlessly traded at the office during his full-time job right under his boss's nose.

Spoilers this Trader made some of his biggest wins and the losses in the most unconventional ways. And his story, he's just kept on getting better and better his name is. Keith Besides his volatile trading, Journey You're gonna learn about his unique trading style which focuses around technical analysis and indicators in today's conversation. Keith shares his insights and pro tips on unleashing the power of tech technical indicators and when to use them.

And trust me, some of his strategies actually caught me off guard. Lots of good laughs in this podcast and useful trading tips as well. Let's remember to smash the like button and join me on this roller coaster ride with the most volatile Trader I've met Keith What's up Keith Welcome to the show Hey Shay Nice seeing you Keith You're a very private person. you don't really have like a online presence or social media persons.

so tell our viewers a little bit about yourself because you actually been trading for almost 14 years now. over 10 years. He started in 20, 2010 2010 right? Yeah, so you you've had a lot of experience, certainly more than I do so tell us a little bit about what kind of Trader you are and how you got started. So in 2010 I was still uh, still in University but even before then like we were talking about earlier is it is started when I was in high school actually.

so I was um, this is when I was probably 16 17 playing a game called Neopets right? and uh I play that game too Neopets Uh, there's uh, there's actually a stock market inside. That's the first time I guess I had a brush up with the stock market. Um and you know in the stock market things move overnight. So you buy something on Neopets and you know or one thing a company on Neopets and the the the stock price changes overnight.

you get the bot you get to sell or you can buy more and so that's how I understood Uh, you know what trading was and so that's my first brush. I'll put trading and then fast forward to 2010. um I was in university I think third year at University and I started um looking into stocks on the stock market and this is through my uh, my banking brokerage. um this is RPC at the time uh which offered like you know, not just not to shade RBC RBC is a great company but the the banking, the trading rates uh were horrible.

like you pay twenty dollars a trade. um you know my data was 15 minute delayed. Yeah so I was trading on 15 minute delay data day trading day trading. did you know it was delayed? I actually didn't until I realized I'm just like uh, what does a D mean beside the the um, oh my gosh, Yeah so here you are penny stock trading on delayed data.

okay as it was amateur me, right? So it makes them really really darn amateur mistakes. So um, yeah. so I I in 2010 I I found out about um, you know MJ stocks stocks. uh we got uh, Bio Bio.

no pharmaceutical companies. You know pharmaceutical companies are volatile in its nature because yeah for sure always FDA approvals and all that. um so you know I I can't remember which names now but I bought a few stocks here and there and then like you know, had some success but ultimately like if you don't know what you're doing and I'm trading on delayed data like I ended up losing a good chunk of my uh, my savings at that time for for you know, for I think I was 20 at the time. For someone that young to be losing, it was about in the range of 10 to 20 000.

That's a lot of money. It's it's a lot of money. Um so that was A. That was probably one of my first devastating blows.

and you know the one of those these are one of those that I'll never forget is is losing that amount of money like pretty much my entire life savings. At that point it was all in, uh, concentrated in the MJ sector. probably just one stock One stock. Yeah, so yeah, I would I would put my money in and then um, you know, go on these uh forums like and you know the forums like Investors Hub do your DD and yeah, yeah, um yeah, obviously I I don't I don't do that kind of uh reading anymore I'm more strictly a technical Trader But yeah, that's what it was then.

um, you know a lot of lessons learned through um not uh, who not to trust and not trusting forums and you know doing DD is is because technical trading should be separate from fundamentals trading and and the more you mix it the the more murky your decisions become. Um, so yeah, that's that was in 2010. Uh, going on with um my story here. So 2010 I lost a good chunk of my life savings and then it took a while because it took a while to to gain that Capital back? Yeah, um and to to gain that capital I had to graduate and I had to go find a job and then work hard for my money.

Yeah, for sure save again. So you know that's that's the difficult part is every time you blow up to gain back that that Nest Egg to try to take another stab at it is is uh, it's a a huge mountain to climb. So I didn't save well I didn't save up enough until probably 2014 when there was another run and I think I had another and that's when you recovered a 20K loss in 2014 with your job. Recover it by working.

Yes. Five Job? Yeah, Yes, Yeah, that's what everyone likes, right? Everyone builds it all. you know in the beginning. everyone blows up.

Yeah, for sure. Yeah, everyone blows up. you know, in in different ways, different ways. But you know.

So this is leading into my second blow up. Oh okay, there's a second one. Yeah, there's a second one. Uh, so yeah, they saved enough.

Uh, working my engineering job um and made I think I saved up another twenty thousand. Okay, um this time and I had a little bit of experience of experience in my pocket I understood now that there's delay data okay, um and uh I I subscribe to a different uh charting software I can't remember what it was but now I have charting software and I have real-time data Okay, uh and so I tried again. in on a run uh it says and they go in Cycles these MJ runs uh that there's um, those big Pops in different names and so I I put my money in and this time I Remember showing one of my co-workers like I put twenty twenty thousand dollars into the stock I'm up 100 how many twenty thousand dollars? It's literally overnight because it was up 100 overnight. Oh wow, All right, penny stocks very very possible.

super super volatile right? and you can't imagine like my emotions at that time and so this is very memorable. I Remember sitting like this is at work too like I told my co-worker I was like and this is this is a co-worker I was really close I was like okay, hey like look I just made this much money overnight and he's like wow, you know how much how long it takes me to save up that much like because he he has a family and all that. Yeah, it takes an entire year to save up twenty thousand dollars for sure, sometimes even longer and he's like if you keep doing this Keith you might be able to like retire. Is that what sparked your idea of that initially? like oh, maybe one day you can quit your job and just trade.

oh this is always in my mind. Oh okay and you know what? like I even talked to my boss about this before I was like you know we're not going to retire like especially in this day and age like you know, inflation's so high and everything's so expensive like unless you have a steady good job and you know I come from I come from pretty middle class Maryland My dad worked in a warehouse, my mom works in a minimum wage job so you know that was always the the life kind of plan. Yeah because you know we find a good job, work the rest of your life and uh you know have a good pension. uh so that you can retire by 65.

um you know me being me is it's I've always had an appetite for risk and um you know obviously with that trade you could see like I was I was pretty risky and that that like 30 000 again was all my money right? Like yeah so you went. Oh in I did I have an appetite for risk? What was it? oh um like twenty thousand dollar cash or was it margin? Well that was Cash okay but still it's like 100 of the capital in one stock. That's right. Okay my mom always told me like if she works she she used to work in the banking sector like never go on margin.

like because yeah you know I'm I'm Chinese and it's back in. My parents had this experience back in 1997 in Hong Kong where the stock market started to crash because of the Chinese government taking over and there was a lot of you know uncertainty in the markets. over there people ended up jumping off roofs. Um yeah because they lost everything.

Yeah, so you know very scary times and those people like you know they owed more than they could they have. So you know one of the Lessons Learned is you know, never go on March and and you know this could ruin your life right? So you know I I Took that lesson into to I took that my mom's suggestion into um, account and you know, just trade with cash. Okay, so you know if you lose everything, you just start from zero Again, yeah, Zero is better than Owen The broker. Yes, money.

Yeah. So in that sense you were more conservative than most because a lot of people would take a margin day. It's all relative, right? Like all in like, come on. Okay, so did you sell that Twenty dollars? Oh I Did I made a lot of money at that time right? Like, But the the name of the game is to try to keep your money like we you and I both know that a lot of people get rich but who can stay? Rich Yeah, not even rich.

Just a lot of people can make money. uh, on the markets and it's it's literally a coin toss sometimes. Yeah, um so so if if half these people are all in and half these people are all in like you know, some people are gonna lose all their money and some people are going to double their money, right? Yeah, so uh I think you know from that standpoint I think I got lucky. but I think some experience played into it because leading up to that 100 gain in 2014, um I started to spot patterns in charts.

Okay, and um I didn't quite learn. um I learned a price action I quite I didn't quite learn volume yet. Okay, so you know that's the second most important thing to pay attention to, right? So over time I would learn volume. but at this point in time, uh, it was all about price action.

I was spotting patterns that I could I had I have a photographic memory of certain patterns that to pay attention to leading up to Big runs. Okay, so you know. Fortunately for me, I was able to sell at that point I did make twenty thousand dollars. but eventually uh, through these pharmaceutical companies.

Uh and and for throughout the end of the MJ run and got greedy. So you're holding you, buy a stock, it goes down and you're like, okay, it's just gonna come back up right? So was it? Were you, still were all these day trades or kind of a lot of short-term swing trading in the MJ sector. I would say a lot of it was short-term swing trading. so you pull overnight sell the next morning.

Okay, um, because in a lot of these stocks, they they would Gap up. um 20, 30, 40, 100 overnight. Um sometimes they would go 100 and another 100 right? Yeah and uh, you know you'll want to hold on to some of these um, these uh, these stocks that are mooning mooning. Yeah uh and so sometimes uh, you overstay, you're welcome and uh, you take a punch in the face.

So that's what happened to me is I mean you know I made this twenty thousand dollars, had stomach success, and uh, lost it all. um through a lot of uh, tiny Cuts here and there. Oh okay, um and eventually like the rest of it just is, is bag holding it an event. Actually, you know what? What's funny is that I still have one of these stocks in my my my RBC brokerage account.

Oh wow, it became an investment. It became an investment. It's still bag holding. it's still I think I think it's delisted? No or it's I can't remember what it was but it's it's halted from Trading like nobody can trade.

It is the thing. I Guess that's the nature of trading. these like pink sheets? yeah or like Otcb. That's right.

Yeah, Otcbb. Okay, so that's um, that's 2014. Um, and then. so I lost everything again.

That's my second blob. Is that also the same year that you made the twenty thousand dollars? Yeah, so it happened probably so slowly that bled out maybe two months. Uh, so you took a lot of expensive lessons from 2010 to 2014. Yeah, and and I would say those impacted my life the most because that's at that time.

it was everything I had. Um, so yeah. just you know at that point and just stay at home, keep working, keep grinding, and um, you know, keep working back at it. I Think the good thing is that you never quit your job that early on.

Yes, so you had a foresight of knowing that you might need more funding. Twenty thousand dollars isn't enough to quit your job. Yeah, I don't even know if back then or even 20 years ago, that was enough. But um I think until you know your your, you're able to, you know have maybe five to ten years worth of.

Um Nest Egg I wouldn't quit my job like and and that probably is something we talk about later. that uh uh. like my thought process on how I even ended up quitting my job. Yeah, it took a while.

it took a while so we just learned that Keith found trading through Neopets an online game. so that's a very interesting beginning. Do we have any Millennials here who started trading on Neopets or any online forums? Let me know down below. Okay, so you took a lot of expensive lessons.

Um, so do what do you think? and then in which year do you think was the time where you finally kind of like clicked for you and you started getting more actual consistency in your trading. Whether it's day trading or swing trading where it's a lot less like up up and drop, you know it's more steady grind up in your P l curve your account and setting in your higher lows. Yeah, consolidation into both flag and breakout. Um, so it's 2017 almost around.

Uh, actually you know even before that. So 2014 was my second big blow up and in 2015. Um I was working a lot at that time and I managed to save a little bit from that last blow up. Um, and I thought at this time I was 27 at the time in 2015.

I said you know people doing the math I'm 35 today um so 27 at that time I was like I have to move up you know, you know I'm an adult now I got to move out of my my parents um you know shelter? yeah experience life a bit here right? Uh, actually it's it's probably a bit late like I I thought at that time I felt like I was a bit late. Uh, because you know I think a lot of people move out a lot earlier than that. Like an experience. Uh, learn learn life skills right? and so I was I was searching on the real estate market in 2015 to buy a condo.

I was like enough of this trading stuff. Maybe it's not working out for me? Oh so you were about to give up? Oh yeah, a little bit. I guess two punches in the two big punches in the face was was enough. Um so 2015 rolled around I bought a condo and and even in 2015 I thought those condos were so expensive.

Yeah and so you know we live here in in the Lower Mainland in Vancouver area and uh I was I bought my first condo for 470 000 for a 900 square foot condo and this is like maybe a 10 10 year old concert. that's that's so cheap. that's cheap. that's a dirt cheap.

It looks cheap now. but yeah, when I was searching at the time I was like Wow everything's so expensive right? Yeah, um and I'm looking at all these places I could uh, possibly afford with my one one um, one income so a solo income and so I ended up buying this place. um and then I met my then girlfriend now wife uh in in 20s you know, towards the middle of 2016. uh, we started dating.

she had her own condo at that time right? So I was like okay, well it doesn't make sense for us to have two condos because we started becoming more stable. Ended up uh, selling my condo in 2017 staying with her and there's where all my seed money came for my next uh that might be the best ever in your life. that was absolutely the best kid you know like 2015 to 2017 in in Vancouver was you know I probably all all around all around North America was probably one of the best um real estate gains and I got lucky I just I didn't know the real estate market that well. so I bought in 2015, sold in 2017 for almost a 50 50 gain on that condo and I was like what do I do with all this money um I was like let's put it in some a lot of stocks.

it was 2017. okay that's actually a good timing. oh it was I feel like each time you you get into these MJ stocks good timing and also you learned your lessons from the last two big follow-ups this is that's that's the actual um. Probably one of the most important things is I got I got two blow-ups out of the way and I learned some pretty important uh lessons and those lessons were you know, never go all in on something.

Yeah, um and the next lesson is all and not so much lessons but experience in trading, understanding charts and how they move, recognizing patterns, and by this time I learned I knew what volume was um I understood some different technical indicators Um, but I was still trading by myself at that time, not with any sort of group uh with with assistance from others people who had more experience than me. Um, so along the way I learned how to uh, spot price action, what kind of patterns formed the different types of volume the the volume at um that's coming in uh, whether it's increasing or decreasing volume relative to to the previous day's action or related to the previous time frame depending on what time frame you're trading on. um, and then some other indicators I start using I started using is the RSI levels Okay, but not strictly because of the RSI uh, the value itself, but more of Divergence on the Rsis, right? Um, and uh, you know Adma the exponential moving average I I didn't really use then, but now it's a big part of my Trading But really, at that point it was just volume and price action and patterns that had formed those three basic things like really propelled my trading career. um, in 2017 and 2018.

Okay, and so that's uh, you know I put a portion of that condo money that I had into um and to uh Aurora Okay, and uh, canopy growth and this is October 2017. Oh wow, October 2017. literally the week before it rocketed. Yeah, so I can't say like you know that that was definitely a a lot of luck.

um but that definitely helped me, uh, produce some seed money. well not not seed money now the house money to take more risks and uh, kind of, uh, snowball that into bigger and bigger gains. So when you took those trades in those specific MJ stocks, was it more like you saw on the charts. Like technically speaking that they are like you say, said the increase in voting on The deity like the patterns forming RSI levels.

Were you taking those trades based on the technicals or a lot. Or were you just hearing a lot about potential legalization and all that stuff? That's more like fundamental Yeah, which side were you I think um I think at that point uh, not that. I think I Actually I know like I was doing a lot a lot of research into which which were the biggest companies that stand to gain the most when Canada legalizes and so I think um yeah I I pretty much uh, zero it in on Aurora Cannabis and and Canopy Growth as the two biggest ones. and these two companies stand again the biggest uh or have the biggest Buzz around them.

And at that time ACB and Cgc were consolidating and yeah, probably months and months of consolidation. So I just bought right in and I was like, you know what if I buy here, it's we're and another cycle of news comes out. These these stocks are going to rip And they did. And they did.

Yeah, and they did. And they did for two years straight and so like through the experiences I've had before, Um, you know I took some of those gains immediately. But then I started I started spotting some of these patterns that I had seen previously back in 2010 2014 and I just knew like if the price closes on a certain pattern um and it ends up like the daily candle ends up a certain way. Um, and the let's say the the hourly or 15 minute uh charts look a certain way and the volume looks a certain way, then this is worth swinging and you know just you.

You buy at the end of the day and you swing overnight. a gaps of 20 30 percent. Um, Um, so you know and and I took major risks at that point as well. Like and it happened a lot again and again.

20, 30, 20, 30? Uh. stocks on gains and you know that's that's pretty much how I grew my uh uh, my account early on in the Uh MJ hey days? Uh, so were you kind of like with the first trade? Were you kind of scaling out and re-adding backing on the deity? so you were swing trading for an extended amount of time? Oh yeah, so you weren't buying and holding, you were selling, rebuying on the dips and selling the breakouts and redoing that essentially position trading. That's right. So it was never.

It was never like an investment. It was never I probably didn't hold things for more than a few weeks. Okay, and then at the point, a few weeks is a long time now for me. Yeah, because I'm more of a daily swing Trader But daily swing Trader and the scalper.

But yeah, then it was more of um, uh, swing trading. uh, and just buying at the end of the day and selling the next day versus scalping. So I I did very little scalping at that time. it was more of daily Pride pattern recognition and uh, swing trading.

and that's uh, that's where the profit really came in is, uh, taking advantage of Gap and runs, um, just overnight Gap UPS Um, but then also figuring out like, how far is too extended for a chart and what is the probability of something consolidating versus gapping up and running right? And that really depends on the pattern and how far extended it is already is. So now that's another aspect of my training that came from my background as an engineer is is, um, is uh, statistics okay and Mathematics and so I was able to, you know crunch numbers pretty quickly, understand the risk, understand probabilities of something happening, one one outcome happening over another. Um, and that just I drew on my experiences on what's most likely to happen. Okay, so that's kind of the aspect of gambling of of trading, right? It's probabilities.

like, you know, anyone can go into trading yeah, uh, and and be somewhat good at it depending on your luck, but it's ultimately 50 50. Uh, if if you were to buy any sort of stock today Apple today at the end of the day and sell it tomorrow morning, you're either up or down for sure. If you were up, yeah, you could have easily. you could have easily taken the opposite trade and you would be down the same amount minus your commissions and spreads.

Um, so you know that's that's uh, that's where I kind of had an edge is is understanding. you know, drawing from my experiences recognizing patterns. uh, the volume, volume. uh, volume patterns as well.

Uh, and then you know, assigning probabilities to a certain outcome. Well, I hope you guys learned something from this Traders experience trading the MJ rung in 2018. But kids, there's no MJ around here. The only Greens on this channel are the green P L curves hopefully and the humble Traders favorite Lamborghini and the like button.

So remember to smash the Lamborghini button right now. So would you be tracking a lot of the these probabilities with like volume and certain stocks certain sector. How did you track these things to know the probability of a certain setup succeeding? Um I wouldn't track its per se. So like I think a lot of people.

uh, you know, take a pen and paper and you know, write down what they remember. but I'm more of a like a photographic memory type of guy like I I remember like when I take a look at a chart I can instantly see whether or not it's a good setup. like I don't need to I don't need to draw it out I don't need to uh, you know, write notes on okay, it needs to be uh, setting up this specific way for me to remember in the future what the setup would look like. Uh, and perhaps that photographic memory was from like my 2010 and 2014 blow-ups like you never forget those Yeah, yeah, you're like wow, like what happened right? Like it.

So it was so important and this is something I left out is in 2010 and 2014. I took a lot of time reviewing like why? why what happened? What did I do wrong? right? like and um, you studied your losses, studied my losses. Yeah, um and so you take that kind of experience and and those um, kind of notes and you move it forward and and apply it to Future um, traits sorry I didn't I don't know if I answered that question like no. I was just wondering because some people like what I used to do when I track certain setups is I actually have an Excel sheet? yeah and I will track the tickers the percentage High versus the opening high and see the probability of let's say I want to trade a gap and goal setup the probability of that succeeding.

so that's what I used to do. Some people do that but it takes a lot of effort. yeah, which is a lot of effort and time right where time can be used to focus on figuring out what the next best setup is versus like trying to. you know, go back and record.

uh record your performance. Um so at the end of the year I'll go look at my performance and okay and have a big Excel Excel spreadsheet of all my trades but I wouldn't say like I go into every single trade and you know, see what? uh what? my performance was on that trade. so I I guess I don't do it that way where you know I'm I'm swinging into a gap and go what I think is a gap and go set up yeah and what the probability is of uh or what my performance is on the Gap and go set up said I'm swinging um so oh yeah I have no I have none of that information because I never took the time I'd rather spend that time you know, sleeping which is like Wheelock on the west coast it's like for sure. Yeah, it's tough.

Yeah, so it seems like you are very technical focused. Trader right? You mentioned indicators: volume patterns. Um, do you think the way you look at technicals and the way you kind of use these patterns today is that different from when you first started? Did you have any what was your style like when you first started versus now? so uh, when it depends on when or the reference of when I first started when I first started I knew nothing right I knew I knew delay charts. that's all I knew so you know we're picking up stuff along the way.

but you know. fast forward to today. Like like I said earlier is um, it's a lot about you know two primary ones everyone should always focus on and not really. You know my opinion sorry is is is the chart.

uh, the price action. So the chart and also and also the volume. It's price, action, volume, price, action, and volume is is really all you need. and you know there's different indicators that we can use to to ascend secondary um, a secondary.

let's say opinions of what the chart is doing so just that's to guide us. But okay, if if the price, action and volume doesn't speak to you uh, as favorable like no other, no other indicator really is going to matter and this is what I teach as well. Um, and and uh so those I should go down to the secondary indicators is the secondary indicators I use in our is RSI so specifically, um, bullish and bearish divergences I use the eight exponential moving average and that's actually very useful whether or not you're on the five minute, two minute, five minute 15 minute hourly for our daily time frames. Even the weekly time frame works.

So weekly obviously is more of an investment level like China right? Like um, but daily It matters a lot on The Daily Because uh, the charts. A lot of charts react off the Adma. Okay, um, more so than I would say. Even the uh, the The View app and I know a lot of people use View I know you use a lot.

Yeah, Uh, so view up is is good when you're looking for a pivot. When it's consolidating, right, you're moving. you're getting a pivot whereas Adma is more for momentum. Okay, so we're looking at Momentum trades because the Adma tracks the price right, action, price, action, uh, quite closely.

rather than the View app is is going to be a little further away from if we're in a moment if we're in a big Momentum day. The video apps. you know, so far gone, it's so far away, so it's tough to use that. Uh, when you're in a Momentum trading and I'm a Momentum Trader now.

Okay, Uh, so I'm always looking for stocks that are you know that had recent price runs. Whether or not that's bearish or bullish. Um, so we're looking at stocks that are consolidating off a big run and so we're monitoring the health of the consolidation making sure it's healthy. Are we getting decreasing bear volume? Uh, and how is the bull volume on that big run and uh, I would use I would use a Fibonacci retracement.

So a tool um on the charts to see how far has it retraced from that from where it took off from and where it peaked out on. and how how uh, how is this consolidation? Um, right now? Is it healthy or not? Is it high volume? Is it high better volume or is a high high? Sorry. Is it low bear volume? Assuming it's a it's a bullish trade right? Okay, so use your eight EMA on The Daily and intraday Yeah. Okay, Fibonacci on the deity Yeah.

Fibonacci When it's consolidating, figuring out like how far it's Consolidated right? Like are we Are we past the 0.236 Are we past the point 382? Uh, are we past the Uh, the 0.5 Or are we at the golden pocket at points uh, 0.618 to 0.65 right? So that's uh, that's that's they're very kind of important secondary tools. But again, if the if the volume and price action isn't favorable, right, there's no use in using these secondary indicators on on figuring out if there's a trade idea or not. So do you use a secondary indicators as a way of potential entries, exit, or just to reinforce your thesis from Reading Volume and price action? That's right. Like that's a good question.

Like so yeah, It's to say like, um, we're in a momentum trade. Yeah, and we've lost the Adma. Okay, on what volume Like like that? That's a really important question, right? Like are we losing it? Like do we have really big bull volume And all of a sudden we're consolidating on on tiny tiny bear volume. Yeah, and the tiny bear volume.

We're losing the Adma and some of these secondary indicators. So the question is, do you pay attention to the secondary indicator or the volume? And so I Would always tell people the volume speaks to you more because it's telling you there's no sellers. There's it's selling on. It's selling on low volume.

Although there are exceptions, right? There's always exceptions to everything. It's the market. and it's crazy. Everything has happened that you could think of, right? and so it's never a guarantee.

It's it's never a one-way Street Where this, this indicator or this volume must tell you to do something you kind of use your own judgment is all right. It's consolidating in low volume. but we're we're we're we're we're Um, we're past the 0.5 on the FIB. We've Consolidated more than 50 of the way up.

Yeah, despite it, despite its low volume, hey, look, that play is over right? Like let's give up and let's move on. Okay, so technically, by what you just described, technically, you can trade without any of those indicators and just use volume and price action. That's right. But they've improved my trading game a lot.

Like these secondary indicators. Um, to me is a game changer. Okay, but yeah, if you were to blindfold me and not let me not use those indicators again, I could still be a real relatively good Trader Just like price, action and volume. just recognizing um, patterns.

Okay, and these patterns like, like you said, both legs, They happen all the time. If you were just to play bull flags and you're you see the the percentage, uh, probability of those playing out. Um, you buy during consolidation, you buy on, you sell, you sell a little bit on the breakout. Um, you're probably going to be a profitable.

Trader The problem is, people like to over trade like they force trades that you know aren't quite there, or hold overstay their welcome. and you know, hold through. um, a breakout or even a fake out breakout. You know oftentimes you see both Flags or bear Flags they confirm they break those, Highs are lows and then all of a sudden you get the wake of death.

Yeah, yeah. like this. that happens a lot. The takeout breakouts.

yeah, um, and they happen right? Like so you just as Traders We don't know what the the follow-through is going to look like when it breaks out, but we know we can control the the probability of our entry. um, before we even enter. So you recognize a good trade, you know the probabilities. We just don't know the probability of it.

If it's going to get follow through um, inflammation you just mentioned together right? at a lot faster and maybe with a little bit more conviction than you did in 2010 to 2014.. now you know how to read all the pieces of information. Oh yeah, Conviction yeah is a good word right. To put it is is once you have that experience and this is this is why.

Like It's so tough to copy trade. It's so tough for to teach others to trade Because where do you get conviction? It's through experience. Yeah. and the experience only is you know with with me the experiences with you.

But you can't transfer that experience like the losses you can draw from that, right? So unfortunately, like you know, people who are starting off to learn trading, it's it's most difficult because you don't have that experience. So where do you get the conviction? Whether these these people get the conviction, it's through other people who have conviction. Yeah, um and people who have conviction have experience. Um, and so that that's why it's tough for I Think newcomers and um, especially people who have who haven't blown up before too.

Oh yeah, you definitely need a few blow-ups to learn some lessons. Yeah, that's your tuition. yeah and hopefully they're small blow-ups and and you're not playing with too big of money that you can't really recover from, right? So now that we know you are very technical based price, action patterns, how much attention do you pay to catalysts or news? That's yeah. that's a really good question, right? Just curious.

You know what's funny because like I speak once a week uh I talk for an hour right? like and all of a sudden I would get punched in I'd get punched in the face because it's uh, it's CPI day or it's like yeah, like today. Yeah yeah, like today there's a CPI there's um, uh, the FED minutes, right? Yeah, and that moves markets and sometimes I would not know about it and I'd be like oh, there's volume coming in, what's going on and it's It's a little bit embarrassing because like, uh, I would have viewers and be like oh, it's um, it's fed minutes Keith So I'm like, oh okay, like, but you know my theory around news and and understanding, um, understanding fundamentals is is you'll see it on the chart. You'll see whether or not it's a bullish, whether it's bullish or bearish news if it matters or not, because you know you might get a bullish price action, but you might. There might not be volume behind it.

It means no one's paying attention. or if the news comes out and their chart's not reacting, then that means this news doesn't matter where it's already been put out, right? So my theory is and my, my Um and I draw from my experience is news is reflected on a chart. You don't need to know what the news is, you just need to know if it's bullish or bearish and it and what the chart is telling you whether or not it matters or not. Okay, so whether or not it matters depends on what the big money is doing.

Whether or not you know the buying or selling or dumping it Right now a lot of these new these pieces of news you should pay, you should I Don't think you should put too much, um, um, weight on it. but to understand it's just to know what it is. Oh, what is it like? Is it is? actually? is it actually fundamentally changing to a company? or is it just a Fluff news right? I Think that's just how it evaluate it's more of a black and white scenario is and how I evaluate that is um, if the news changes like the bottom line of the company like is Microsoft buying out or activation company activation. Yeah, right.

Um, or are they undergoing a share change? Are they are they diluting the shares right? Um, so that that really matters in the company or sometimes are they undergoing our shares. but because some of these share splits uh, share split news uh will fuel the the um the the price action. Yeah and a stock. So some of those things are good to understand and just understand what's coming up like.

Tesla back in Uh I think 20 um and so every time Tesla gets a share split, we know what happens. Yeah, it runs Tesla's getting acquired by Uh Tesla's getting acquired by um acquired. sorry, what was that? There's a big piece of no no S P is going to list Tesla Oh yeah, that was a big news. That was big news right? Um, so funny enough I swung that day beforehand.

Did you know I didn't know. Oh, it was a murmur Tesla was oh I think breaking into all. uh, no, it was. It was a long consolidation I think it was in a triangle at that point for a while.

daily, maybe even weekly. Um, then it got a a big breakout. So I was playing the pattern I was playing triangle. So that's what you mean by a lot of times the technicals were kind of confirm the news too.

That's when it broke. The technical sometimes confirms the news and it's just. it's kind of a bit magical. How that happens is.

you know we get a pattern. We know which way it should break out. okay, which way a pattern should break and all of a sudden you get a piece of news that causes it like you're like, did somebody in that company know about this like pattern? Somebody always knows something I think yeah, it's weird. Um, and it happens a lot.

Yeah, more than it so it doesn't feel like it should. It's by chance, right? So we learned by now that Kids Momentum strategies involve a lot of indicators and price action. So comments technical analysis down below if you want to learn more about price action, indicators, and chart patterns. and of course, if you have any questions for Keith, you can ask him down below in the comment section.

Is there any tools that you're currently using? Well, I guess. Is there any tools that you're using to help with your trading Now that you wish it had when you first started 10 years ago. My trading tools? Um, yeah for your technicals for uh so I think I think you know by now I'm a pretty simple Trader like I I used to have a lot more indicators and like, okay, the more indicators you have, um, the more convoluted your decision making I agree. Yeah, so you know this is you know I see people's charts and there's so many lines on there I'm just like, how do you know which line to to to you know, pay attention to yeah and how much conviction? If it goes through this line, how do you know it's going to bounce off the next line? Yeah, how do you know which one to look at first? That's right.

Um, so like I keep things simple and so I've mentioned those few indicators that I use, but the the main one I think I would pick up and I would use more often is the Adma. Adma is probably one of the golden ones that I would. uh, you know if I were to speak to myself. Okay, um, when I first started trading, pay attention to the Adma because the reaction off the Admas is is uncanny.

Okay, especially on like let's say, algo days where stock is just like every every dip is being bought up. you're on a two minute chart and it'll bounce off the two minute chart off the Adma every time it consolidates off the two minute two minute Adma and it'll It'll confirm to a higher high and then it'll lose the two minute adma. Then you flip over to the five minute chart and the five minute chart will grind off the five minute Adma and then it'll bounce off the five minute adma a few times and then you lose the 580. Then you flip over to the 15-minute chart across all the time frames.

That's right, but that's momentum. Usually in the beginning of the day, you get big volume, a very sharp, uh, very sharp candles either moving to the upside or downside. so this works bare and bolt, and then, um, eventually you lose a 15 minute Adma. You get hourly consolidation and so on, and so forth.

But that's how that's how we keep in trades during Momentum is that Adma indicator? And it's it's been. Um, it almost feels like a cheat code. Sometimes you're looking at a yeah, you're looking at a stock that's in, you know, absolute Momentum. Obviously, the the prerequisite prerequisite to using the Adma on on a day like that is volume.

We want to make sure that volume is is high relative to the previous day's volume. Okay So yeah, I think uh, you know the first five minute candle of the day. We usually will tell you that whether or not we're going to have a big day or not. Yeah, is is the first five minute volume candle dwarfing the previous day's opening volume candle? right? And that's that's going to be.

Um, you know one of the big things I would look for? Okay, yeah. I I've always I've used V-wap and volume together for a while Atma maybe I'll look it up. You gotta try it. Just just keep it on your chart.

If you're not like user like, you're like wow, It's especially on Momentum stocks. You look at your 2 5 15 hourly. it's it's uh, it's a game changer. Um, but those are the those are the indicators I use and that's that's like that's my Edge right? I Know yeah, you're a successful Trader you have your own Edge Everyone trades a little bit differently.

that's right. And um, you know these, these aren't the only only indicators out there, right. Like there's so many indicators out there. somebody has created it for a specific purpose.

Um, some sometimes we don't know what it is, sometimes we don't know how to use it properly. but somebody had an edge using a specific indicator before. Sometimes you just it's hard for different people to apply it properly. Um, so I found my Edge I know what I'm comfortable with and uh, like this is.

This is how I I have um, an edge in the market. Um, and that's an edge is a higher probability of making money when I take trades. Yeah in your first. I guess all the way.

Leading up to 2017, you are doing a lot of Swing trading. When did you transition to doing more day trades? Yeah. so up until 2017, I was still working a full-time job. Okay, uh, and it wasn't until like the end of 2020 where I quit my full-time job.

But so so it's very important from that standpoint, because uh, you know nowadays I do a lot more scalp trading. but that's because I'm able to focus more on you know, the smaller time frame candles like I can't be distracted by something like hey, my boss is telling me to do some work right? like and all of a sudden you're pulled away from your computer. Yeah, well, you have to go to a meeting. You're in a two-minute bull flag.

You're like, okay, well I hope this turns out well, right. Like it's not, usually it doesn't. No, Oh, sometimes again, a 50 50 analogy. Hey, this could continue running or it could just fake out and break down.

Like you said, it's a coin flip. That's right. Yeah, But hey, if you're in a bull flag, that coin flip is it's a weighted coin. Now it should.

It should. If it's a bull flag, it should break bull most of the time if you recognize that. Recognizing that. both leg, uh, correctly.

Um, so in terms of trading, style is definitely just swing trading a lot. Especially when I was working because there's just not a lot of time to manage a trade. Yeah, on a small term time frame. Um, so you know that that played into my hands very well because during the MJ run it was.

Everything was just gapping up. So all you had to do was buy. You know we're in Vancouver time. All you had to do is buy during lunch break.

buy some stocks, sell it. Next one, you're on your lunch break. you're looking through all the daily charts. Yeah, and you're seeing.

Okay, what's a good setup like you know are we are we closing on a Marabozu candle? Uh, and at the highs of the day and we're getting increasing volume into the end of the day? Yeah, and we're not too far extended, so the chances of this gapping up is going to be very high. Let's take a big trade right here and see if we can get like a 20 30 day the next day and you sell the next morning. Then you go to work and you're like, can you ask yourself, why should I even go to work right? Like you just made like twenty thousand Thirty thousand. Like however much in a day And you're like, now you're gonna go to work and make 300 bucks right? Like it's part of the process.

Yeah, yeah, uh. but I mean it's not always great like that, right? We have big wins. We have big losses. Yeah, this gap down days too.

So you know the magnitude of wins usually. Um, you know. hopefully it doesn't always equal the magnitude of the losses. We try not to let that happen, but there's always give back.

Yeah, and that's how we sat higher, low, higher, high pattern in our account for all my part-time Traders out there working a nine to five full-time job. Be careful if you're watching this in front of your boss. Okay, just kidding. do you guys resonate with kids experience? Remember to give the video a thumbs up if you are being enjoying the story so far.

do you pay any attention as a technical Trader to level 2 and time in sales. Uh, it's funny enough that that's actually one thing. I I Used to look at so level two, time and sales and yeah, so not anymore, not anymore. I Actually don't pay attention to that at all.

Okay, and I think that matters more when you're trading on um like a micro time frame. So let's say like two minute, five minute and that's just my opinion. Um but um what I pay more attention to is more of uh, dark pools and and uh, the sorry options flows okay and so um in in our trading room we have some experts that are that are that are looking at the um, the options flows and dart pools and what big money is doing so and and and I guess this matters more for big big companies. like uh Apple Tesla like what's unusual going on here in these stocks? yeah um so you know that's that's that's technicals.

but it's also like you can't actually see or assign a probability to those things. because yeah, because this is big money trying to move their money around. And and you're trying to think about what big money is thinking, you're looking at these trades and you're you're trying to analyze. All right, what's this whale thinking yeah in terms of which direction this is going to go and even if even if you think that they know it's going to go up, is it going to go up tomorrow the next week? or is it a month later? That's right, or it can be a hedge so you don't know like in terms of that which is why it's important to like.

You know you can look at options flow, but you need to really look at see what's what's unusual out there. Um, but I wouldn't say I use use options flow as as a primary or even secondary um, tool to guide me in what trades I take. So just technical. It would be nice to know that you know if I'm betting in a certain direction that you know the whales are also better in that same direction right? Like it would be nice to know.

But yeah, now you're kind of biased, right? because if you know the whales are betting indirect or you know big money or um, institutional Traders are betting and Direction and and before you take your trade now you've got to ask yourself, are you being biased Yeah, like I'd rather not know and then I'll then I find out later that Okay, it makes me feel a little more comfortable about this trade now, but I would I'm I still have confidence in the trade anyways because I I uh I recognized it myself I came up with a trade idea and um, you know this is what the chart is telling me in terms of probability of something happening in that direction. What made you decide to stop or use less of the level two and time in sales? Oh, in terms of level time? Sorry, yeah, that was the initial question. Um uh I think I just moved away from Trading uh smaller time frames like two minute two minute charts. You don't use it for scalping though.

no scalping today I do scalp in today. So and maybe it's not. Maybe it's because I don't have enough experience in it or if I don't have that edge and looking at level two times in sales. Um, but not to say that it doesn't work because I know I know you use it extensively I know a lot of other Traders use it extensively.

but my Edge is through still uh, volume, price, action, and understanding understanding which way the probability of something happening based off of what I currently see on the chart. Um, so volume really matters to that because yeah, you know if we're if, if we, if we move into a certain price range uh, from a big move. whether or not it's bull or bear and we're holding that price range relatively well and there's no sellers or even. let's say there's no buyers on the bear side, right? It tells me like that price range is being supported.

Yeah. Consolidated it's consolidating. healthy. it's healthy consolidation.

It tells me that it's unlikely this stock is going to just like you know, be a mountain on the way back down. a shape, back up, right? It tells me that it's setting up for a next move to the same direction. Okay, and so you know, perhaps time and sales would tell us that. but I've already seen enough on the chart That tells me okay, the probability of this getting continuation is already really high.

so you know that's just another tool, right? Uh yeah. I've decided uh, personally, that I don't use that tool and I'm I don't um I don't need it in terms of my style at trading. Yeah, I mean that's fair. Yeah, So I've already found an edge.

Uh, in terms of um, uh, the the handful of tools that I already use. No. I'm only asking because I'm starting to. there's more and more.

Trader I Talk to who are kind of abandoning uh, level two and time in sales? Really? Yeah, pretty much after 2020. How come it's very difficult to find anything anything meaningful and accurate from level two. and time and sales. So and things.

Things that are unusual that's happening on the level two times. I think there's still a lot of things unusual, but like the volume like, everything's just going by so fast now. and I think like I've had more experience, especially in my 21 year uh, 2021 Reading what I thought was right, Reading trading what I thought was I saw on level two and having that cause a bias and causing me to lose. Yeah, so I have a couple of experiences.

so now I now I'll take a look at level two, but I will not trade based on this. What? I saw? Yeah, the market. Yeah, it's getting tricky and trickier. The Market's constantly changing.

Yeah, you have to continue adopting right under to to make sure. Um yeah. this also depends on the market cycle and what's happening on the markets right? Uh, when when not no one strategy works for all for all Market environments. and I think that's one of the lessons that I learned.

um early on is if you keep trying to, you know Force trades during. let's say you know everything was great in 2021 and 2020. Really? Yeah, yeah, you could you could have bet on anything. Yeah, everything's mooning.

Does that make everyone a good? Trader And does everyone? Everyone feels like they're a genius. Um, but you know as the market changes, uh, we need to adapt and whether or not you know we need to adopt as Traders and you know, recognize that. um if my if my trading style does not work for this environment like I just got to take it back like I'm taking too many losses here like and just kind of reevaluate. Hey, maybe this isn't the right Market environment for me to apply my trading style right now.

Or perhaps I need to trade change my trading style in order to adapt to the market. For so for instance, like let's say, the Bear Market last year. um at the beginning of the year. Um, yeah I don't want to say that like I I predicted it or something, it was coming.

but I was expecting a big bear Market to come at the end of 2021 and lo and behold it did come. and I was I was I was the biggest bear for the longest time. last year you were shorting everything, shorting everything and I was uh, sometimes I would be playing oversold bounces. so like it was.

You know, a handful of bull trades, but mainly there were bear trades because it's just non-stop momentum to the downside. And so I think last year was a big year for me as well. Um, because I was able to adapt now this year I'm slower to adapt to a bull market so like it's it's it was D to. So this year it was a more difficult year for me.

Despite you know everything, you know things. some things are in all-time highs and videos and all-time highs and all-time highs. It's so bizarre. Um, but you know due to my slow ability to adapt, it caused me to not be able to take advantage of the the opportunities that were present.

Now this hap this. This also like stems from my lack of focus on the markets. you know I have different Ventures that I'm looking at right now. um and also I'm just taking a break uh from here from time to time taking vacations because yeah I just need a break from the markets.

It's been. it's been a crazy like five six years of trading and I've just been a bit burned out and so yeah, Focus matters a lot too, right? Yeah for sure. So going back to your trading experience, could you tell us a little bit about your biggest trading wins and the biggest trading loss? Anything that stands out as the most memorable? So yeah, um, there's a couple big ones that that that are memorable obviously um because of the size of them. So um, it was probably uh, an over it was it was.

it was an oversold bounce on canopy growth. So this is probably towards the end of um uh, the MJ heydays where everyone everything was selling off and um, you know, multiple days of you know, double-digit uh, red days. um and so we I play oversold bounces and this this is probably my bread and butter is is when things are falling off a cliff and they're kind of dropping. Like A Knife um trying to evaluate when this bounce is going to happen because when the balances do happen, they're often very sharp and they're in a double digit percentages.

Uh, double digit percentage gains as well. So canopy growth was selling off. Um I think this is probably I would say the end of 2018 I would say October 2018 and so Canopy was growing, selling off and it was setting up for a gap down day. And the way I prepare for oversold balances is I don't sleep what? I don't sleep and then the next morning uh I can't even say I wake up right I'd be like kind of just on the couch preparing for my big trades and I knew this was going to be a really big trade because I knew the canopy growth pre-market was gapping down and um I'm at this point I started options trading.

So I trade a lot of options. Okay and even to this day I trade a lot of options. Um and so I was scouting out the different strikes that I wanted. uh and there I was going to play weekly options.

um to to, uh, take advantage of this oversold bounce opportunity. And so at this point, uh, in 2018. So 2017 was when I when I seeded my account again throughout this big MJ run and then towards the end of 2018. um I probably had close to a seven figure trading account.

Okay, that's when you exited all your swings. that's right on the way up. That's right. Okay, yeah and then so I'm managing this this large account now and I'm sitting there and be like how am I going to grow this account so that I can retire and at this point I was like oh, am I going to grow this count so I can retire at this point I still had a job right and be like yeah, yeah and I'm like, well this is a really high probability setup I've seen this before.

it's happened a million times. Every time I've seen it. it's always balanced and you know it always is a bad word we know. Yeah, you know it's almost always.

almost always bounce because you know you're gonna get punched in the phases. Yeah, one day so you know I had so much conviction in this trade I knew the setup I've seen it before I talked to everyone at this point I was also in another Trading Group I had to talk to these other people. They confirmed. Now that that increases my bias.

Yeah, um, but you know personally. I I know and I had conviction in this trade. So 6 30 our time you know Market opens I'm I'm spanning the buy button on some of these options and these are weekly weekly options. Yeah, I'm at broker.

uh uh, my broker. uh Questrade, you know, let's give gives them a little bit of uh uh advertising here. Uh, they they only allowed me to buy a certain amount of uh options at a time. Oh, and so trying to buy almost as you know, trying to buy almost a seven figure amount of options was very.

It took me almost a couple minutes just hitting on buy button. Okay, um and so I was all in on options. Oh my oh my. God on my account on an oversold balance.

play on a weekly option. Well do you remember the strike price I don't remember right? pause right? Yeah, they were all calls. They were all calls and so like. I think I had two different strikes.

Uh, one for one for the the current week and one for the next week. Okay, that's already short term. that's right. I'm sitting there with a few hundred thousand dollars in in call options and I was sitting there I'm just like okay I bought it all I know what's supposed to happen I Uh, I I shut everything down.

What you did not, you shut down your chart I shut down everything Oh my. God I closed my computer I'm like sweating though. Yeah I shut down everything and I took a two hour nap. What? Oh my God I was like, you know what? but that that was my trading strategy.

Um, and I was like this is going to work out or it's not because the probabilities are it's going to work out. So I don't want any sort of small term fluctuations in price to to shake me out of the trade because I know what's going to happen I know this chart's going to bounce I don't even care if it gets a new low because even if it does, this is going to bounce and um, you know I took my two hour nap and I actually fell asleep because I didn't sleep that night I woke up two hours later. uh And I I my account was up close to a seven figure number. oh my.

God and I'm sitting there I'm just like. all right, let's hit some cells right? like so you start spamming though. started spamming the sell button right like and I only only sold like a partial amount of it I swung it I swung it into the next day. Um, thinking that we would get some continuation on the bounce because because these balances usually get some follow-through yeah, because they sell out for multiple days.

That's right. and Bounds four, one, two, three ish. That's right. that's what I was expecting.

except this one bounced into a freaking triangle. So so the next day it didn't Gap up. it didn't do anything it said. it started consolidating again.

So I actually lost some of that back to the market. But that's the price we pay for trying to figure trying to, um, you know, have some risk on so that we can get continuation in in our moves. When you're right, you want to let some of it mature. Uh, and and that's that's my trading philosophy and so you know I don't sell at all I'll I'll take some of it just to lock in some of that uh, gain.

So at least I stay I stay on a winning trade. But this particular trade I gave back a decent amount because I swung a major portion of it and um, you know, lost it back on uh, the next day lost some of it back Wednesday Yeah, do you remember those options? What percentage were you up when you were selling some of it? So I was all in so it was only like I actually took I was all in on off I was all in on options. yeah and and um I would say the the percentage probably wasn't very like. it's not like a thousand percent or anything.

it was between 100 to 200. Still yeah, that's still pretty good. Yeah, it was pretty darn good. Um, you know if I took a strike that was slightly further out of the money I probably would have gotten like you know, 400 500 but I took something more at the money and actually some of it that's in the money right? Uh, just no, that's good.

I Think well because I'm all in like I want to be ER on the side of caution. like if this just moves sideways, I'm gonna lose everything right? But then again, you know at this point I still had my job. That's true I guess he had a backup plan I had my backup plan I didn't quit my job um I didn't uh and most of this was Health money like this. This money I didn't have a few years earlier, right? Were you married at that time? not married? I was still? uh no, not married at the time you would have oh, taken less risk.

It all depends on your life scenario, right? If you don't have a job, if you're if you're trying to make it big and and um, you're trying to trade full-time Um, and you don't have a job, it makes it a lot difficult. More difficult because you still got to sustain your lifestyle. Yeah, you still need to pay a mortgage. You have expenses to pay.

Yeah, and so all those things put pressure on your trading if if trading is your sole in sole income Source right? So I like because I had a job I was able to take that kind of risk now today. Yes, all interests. would you do that Now today? of course not. Okay, yes with the kids? Yeah.

I have dependents? Um, you know there's there's bills to pay, right? Yeah, and uh, you know. last thing I want to do is go by talk to working because I would have failed as a Trader if I had to take up a job again. So um, in terms