LIVE Day Trading 101 with Q&A - Replay of Yesterday's Market with Commentary

all right everyone so we have about 24 minutes till the bell today is going to be a basically a special class day trading 101 a little bit of QA and we're gonna do a replay of yesterday's market the markets closed today so can't trade today but I have all my live trades from yesterday record it and I've got my gap scanner up here from yesterday and so what we're gonna do is go through the gap scan and we'll do it a little bit more more slowly methodically so I can answer questions that you guys may have as we're going through this I some of you who may be watching on the recording we're gonna upload this to the warrior pro mentor sessions so it'll be available there for warrior pro students I want to give folks who are watching this live a few minutes to get logged in before we really dive into starting our pre market analysis she'll be the analysis of yesterday's gaps game so let's see I've got my chat feed up here this all looks good so while we wait for a few more people to get filtered in maybe what you guys could do is you could type in the room what account size you're planning on trading with when you go live some of you are already live and you could just type the account size that you're using but out of curiosity so fifty thousand thirty or thirty thousand five thousand five thousand one thousand twenty five thousand plus forty thousand two thousand twenty-five hundred five hundred five hundred fifty thousand six hundred three thousand five thousand okay so you know we actually today have a larger number of folks that have bigger accounts and well buddy I see a couple a couple few more small accounts coming into fifteen hundred six hundred a thousand three thousand to five thousand six hundred twenty-five hundred ten thousand five hundred one thousand okay so we've got we've got a good range of of account sizes here which is which is good in terms of opening accounts and things like that I would encourage you guys not to open a real money account until you have proven that you can be profitable in the simulator and you know this is just it's a piece of advice that I share with you from my own experience which was jumping into the market with real money long before I should have and ending up losing money now my justification for trading with real money and this might may really or be relatable to some of you was that I said I I need to start making money now I can't afford to wait and you know trading a simulator and make pretend money I need to start making money now and so I jumped in with real money and naturally I started losing money and then I said well I can't afford to go to the simulator now I've already lost money maybe when I make back what I lost then I can but right now I need to keep trading the real money and then I kept losing money so I found a way to justify continuing to trade with real money every day and I think that was because I knew that there was every day the opportunity to make money but what I didn't realize was that I simply won't be consistently profitable until I've really dialed in my strategy and at that time I didn't even have a strategy so I was really shooting from the hip Luise yeah right now I've brought my share size down to six thousand shares kind of as a maybe a little bit of just trying to press the reset button March very crazy month in the market it was unprecedented you know the market dropped 35 percent I was trading very aggressively and I just if I wasn't really happy with my performance I made money but I didn't make as much site probably could have and so I decided for April to kind of press the reset button in trade with smaller share size and see and you know see where that where that lands me in terms of profit loss ratio and everything else so I'm gonna log into the sim right now this is the the warrior trading simulator we it's it's you can see has our logo and stuff but this is a white label of the sterling sim sterling a trader platform so we have a license agreement with them and this is the same software that you would use for instance if you trade with cmeg so I'll open this one up so this is my cmeg installation of sterling so you can see it's identical so this is a good thing because once you've learned how to trade on this software presumably in our simulator which is available for all of our or your starter students and warrior pro students you will have proven that you can make money in the same exact software you'll use the real money you know it's kind of like I don't know I mean on the one hand I like to say that trading platforms they're kind of like you know it's kind of like a car and you know thing cuz thinkorswim TD Ameritrade maybe that's like a I don't even know I mean you know maybe that's like a Lexus SUV and this is maybe a little bit more like a you know Mazda Miata and Lightspeed is maybe kind of like a Porsche 911 you know I mean but really once you've driven one car you can pretty much drive them all it's just that different cars are suitable for different types of things that Lexus SUV great for going to soccer practice the Porsche great for you know zipping around town and you know very very quick as a day trader we want software that's fast and this software once you've learned it you'll be able to use with the brokers that are fast you can learn the software and they'll go trade with TD Ameritrade and it's going a little bit of an adjustment because t v-- ameritrade is not exactly they don't cater to day traders can you make money day trading they're absolutely a lot of people do but it's that's not what they focus on so anyways it's good to train on the same software you'll use the real money alright so i'm gonna put this down here this obviously doesn't have real-time data today because the market is closed so and for those just getting logged in or here this morning in our the live room and sorry for those who are watching the recording it'll be a little repetitive here just as we get started we're doing a little day trade 101 class this morning a special class which is going to be replaying yesterday's market so i wanted to give folks a chance to get in so we're we're sitting here around 9:15 so we've got about 15 minutes to the bell so at this point I have my gap scanner from yesterday looking at 9:15 9:15 a.m. so why don't we start the process so the first thing I do of course each day you know I I sit down with my little trading station this trading station I just set up as we started our period of being in quarantine typically I would have a little bit of a different trading station but you know this is what where it's at right now so I've got my one laptop a one laptop front-and-center I have two external monitors right here and I have a third one right above so I have a total of three external monitors all on one multi monitor rack and this rack I got on Amazon for hundred bucks go on girl that's a 4 inch dog it's she's not well honestly I've been having green days every day she's been in here with me so maybe that is a critical component so if you need an orange dog and I do recommend orange I can I could probably hook you up just yeah but let me know I can probably give you some leads on that so yeah so this is kind of my trading station right now those you guys who are just getting started even if you have just a laptop it's fine but the thing is you know between having your broker platform a couple charts up and you know our chat room or something like that it's nice to be able to spread things out a little bit these monitors which you guys who are in the chat room I can actually turn this around for you hang on oops I might just unplugged something there I'll fix that though so let's see there we go so those of you guys in the chat room you should be able to see I can make this fullscreen that's kind of you know what it looks like I've got my my main little section there there's the orange dog out the window and then charge charts and up there all right so again so we've got about 15 minutes to the bell so let's start going through the watchlist just the way we would on a regular day so I've got my computer set up I open up my charts and the first thing that I open is the gap scanner so this scanner is gonna show me the stocks that are going to open up the most in the market most of you guys already know what a gapper is but a gap or is when a stock opens higher than it closed the previous day so let's pull up I'll just pull up a chart on one of these that I'll do age PII I'll just go back to an older one so on the daily chart of a HPI this is our daily chart so each one of these candles represents one day this right here was a gap the close was right about green line and the next day is open was right here at 587 so that's like it as a two dollar gap per share there you go so we have this big gap and we would have known that this was a gap pre-market because in the pre-market session the stock was already moving higher before the bell officially rings and the market opens so so this is a HPI here so now let's go back to the top of the gap scanner so one of the first things I'll often do is first check the overall market and just take a peek at what's going on now in the case of yesterday what I saw was that the market was had sold off a little bit and then was squeezing up so there's a little bit of a gap higher but nothing crazy nothing I mean as far as the market has been recently it's been a little crazy but but nothing totally outrageous just some nice some nice action there so I checked the market just because I want to see if the markets down like projecting a beat down huge it's good know that but beyond that I don't look very closely you know I just I just sort of take a little peek and then move on to the next thing so the first stock on our gap scanner here is us ws so I start at the top of the gap scanner this is the way I have it every morning and I have the gap scanner sorted by the percentage of the gap so the biggest gap er is going to be at the top some people might sort by highest volume some might sort by float but I sort by the biggest percentage gap and I don't really have a lot of filters on this gap scanner but I do have a few all right so this is our leading gap or and around 9:15 it looked like this now here was my first issue before I even pulled up the chart I saw that it was a 50 million share flow 50 million shares is a little on the higher side especially for a stock priced at $1 so I kind of looked at that and I was like it's very unlikely that we get any serious move out of this I just I have low expectations so I prefer stocks generally between two dollars and fifty cents and eight or nine dollars this one's a little on the cheaper side the floats a little on the higher side it already has two million shares of pre market volume so I already have a little bit of a negative bias on it before I even pull up the chart and it's it's not a you know it's not a biotech or pharmaceutical stock so I'm skeptical I pull up the chart and I see Wow holy cow this was like it 25 cents yesterday squeezed up here pulled back came up all the way up to $2 on very light volume and is now started to sell off on higher volume so I pretty much said no I'm not interested you know I really don't like it I'm I just my expectations on this hour are that it's not good the volume weighted average price is a dollar fifty seven so that's the average price of the stock primar could include in the volume the fact that the price is below this level shows that it's weak I mean the chart shows its weak but that's also a technical indicator of weakness and as we got closer to the bell it just was coming down more and more and more and more and to end up selling off during the day so this one not interested in no trades does anyone have any questions about why I didn't like that beyond what I just said the orange dotted line is the V web that's the volume weighted average price great question how much volume is too high a volume well it's not really that there's too much volume necessarily the bigger issue is really that it's already pulling back more than anything if this was opening right here with the same amount of volume I would be like yeah it looks good the chart looks good yes the floats higher-- it does have a good amount of volume but the chart looks good for a move higher so you know I I do like that look the question of why not short it well there's a couple reasons number one I really don't like this price range period this price range forces you generally to take much larger share positions in order to make the same amount of money as when you're trading with smaller side a smaller size of a higher price stock and so when you trade a big share size if all of a sudden you get a short squeeze or it rips against you a stock like this could rip up and could halt multiple times in a row going up and very quickly could go from a dollar twenty-five to a dollar sixty dollar eighty and that could be a big loss when you have large share size and then secondly I trade primarily in a retirement account and in a retirement account you can't short stocks my ideal float is yeah it's under 10 million no you're a hundred percent right I mean that's that's what I prefer I will sometimes trade you know it's kind of like a there's a little bit of a gradient below five million you can see here I have in yellow because those are the ones that I really want to take a close look at between five and ten million between five and twenty is kind of this brighter green it's interesting there's no real difference between nine million and eleven million you know there I mean there's a difference but they're so close it's no big deal but once you get above twenty jerking in twenty five thirty I start to get less interested and so I have it coloring and in a gradient all the way to white anything above 100 million I just I really ignore pretty much so you know and we sometimes see stocks you're 20 30 million share floats and they do really well and sometimes we see ones that are you know four or five million and they don't do well but but generally those ranges that I just laid out or where I do the best I would say pre market I don't have a really strong ideal volume it's more to me about a strong chart and good rate of change so we'll keep well as we look at the next one I think that that will make a little bit more sense let me just see if I didn't miss any good questions here do I care at all about the news catalysts Luke and you know I I always check the news catalysts but ultimately the chart is the reflection of how traders are interpreting the news so I really focus mostly on the technical I like to confirm that there is a catalyst because otherwise it's hard to know why if the stock is moving so confirm those catalysts and then route the chart Kyle I would say that I probably judged 2.5 million shares on a one dollar stock and I do look at that differently than the same amount of volume on a five or eight dollar stock but that's mostly because stocks in the price range of a dollar until they break over $2 if they don't always really start to for me be easier to trade so I do look for the price to be a little bit higher the advantage of trading and retirement account is that the gains are tax-free so it's a very very strong advantage and Ricardo I don't really look at the volume bars triggered by I'm I really don't I look at the volume bars but those aren't what I'm looking at to make my final decision of when to press that buy button let's see okay all right so let's keep going okay so that was us ws next one down CL SK so CL SK you know you can see we'll see that this is the chart but at the time all I saw was this so at this time I was looking at this thinking this looks this looks pretty strong I mean this thing is just basically going straight up it looks really good we're again looking at a time frame right now at 9:15 so pre market it even provided a couple of opportunities that have a pullback right here it had another one right here and another one right here I don't trade pre market not because I don't think that there are occasionally opportunities but usually pre market you can't take big share size the liquidity isn't very good you get a lot of slippage on your entries and your exits and and that makes the risk higher so I prefer to wait until the bell rings and you know I set the expectation for you guys that every single day we come in here at the same time starting at 9:00 9:15 pre market analysis till 9:30 bell rings at 9:30 and we start trading at that point all right so so here we go so this is CL SK so at this point as I was looking at it at 9:15 it was at 324 right here it's gapping up a hundred and ninety one percent it has a three point three eight million share flow and four hundred sixty-six thousand shares of volume and it's really just kind of you know starting to make it to move higher I would say at this point I did feel like I was kind of missing the move a little bit that it had already moved so much pre-market that maybe I wouldn't get a clean trade on it I saw that there was a headline which was good so at this point I'm interested in this stock enough to dig a little deeper u.s. WSI pretty much right away it was like nuts this one's no good so let's just go to the next one almost immediately I did a very quick like 10 second check on it price flow chart no I don't like it next one down CL SK the price is good the gap is good the float is great the volume is fine I pull up the chart it's going straight up so now I like this one and I want to look a little bit deeper at it alright so the way I look a little deeper would be to check the daily chart so I open up the daily chart and I see right back here that it was a somewhat recent reverse split so it's not uncommon at all for small cap stocks to do reverse splits they have to maintain one dollar per share it's a minimum to maintain compliance with the exchange and so if there's stock drops below a dollar they can do a reverse split to get the stock back up above a dollar kind of a funny thing but it's just the way it is so as I look at this chart I generally look left and up and I'm really just looking a see is there a clear resistance level anywhere and I in this case I really don't see anything that's obvious you know the only thing that's very obvious is this 200 moving average oops way up here at this level that's the only thing that I can see is is obvious vote obviously that's up at eight dollars and forty four cents we had was it a keer a keer the other day this is a perfect example of a daily chart that had a very clear resistance breakout and then window so what we had on this was back here in whatever this was December the stock had bad news and it gapped down so it opened much lower the next day from six dollars down to about three dollars and went sideways so what ended up happening was the daily chart had this this big window this pocket here which we would actually see as an opportunity as the stock is coming back up because there's not going to be any resistance until a stock gets to the top of this window so from the bottom of 409 that was the trigger and this filled the entire gap so when we see these I often get excited because I I see some real potential and in fact the next day it came up almost all the way to that 200 moving average so this is a good example of where these levels of resistance really are well-respected alright so let's go back to CL SK so CL SK it doesn't really have strong strong resistance it doesn't have any super significant windows which is a little disappointing if it had a window often traders would get a little more excited about it just because of the potential and so this doesn't have that but at the same time it's it doesn't have anything that's really concerning you know if the 200 moving average was like right here I would say well we're opening at the 200 that's gonna be a possible resistance level and again those of you guys I'll direct you to a couple places in the classes here and just just make sure we I wanna I do want to answer questions that you guys have but if a question is definitely one that you'll find in the classes I'm going to just direct you to that spot in the classes so we for those of you guys who are already in the classes so this is our members dashboard right here at warrior trading obviously live trading rooms trading simulator educational classes mentor sessions today at 3 p.m. Eastern we are hosting special warrior pro mentor session fomo friday session Ted will be hosting that and we have it'll be Ted and Diane and a couple of students who will be basically volunteering to have an intensive FOMO session on zoom' which head and Diane and you guys will be able to sit in and listen it's it's basically like listening in on a you know it's like almost like a coaching kind of session so you I think you guys will really enjoy that that's today at 3:00 p.m. all right so I'm gonna just have this to education sisters are learning portal so I saw a question there about resistance so under the learning path you guys could go into the warrior pro class if you're not already day trading small-cap day trading course part one this is the most popular class so let's see part one daily chart so this is where chapter four right here this is where we get into those support and resistance lines and how I find the gaps in Windows so make sure you go through this a section right here this will show you a ton of examples of of what we're talking about today and in more detail so yeah so that's where you'll find that all right so I move this back down here okay so see LSK daily chart no real resistance until a two hundred moving average okay so now how do I make a decision about you know where I want to get in and that sort of thing so in this case as we were looking at it around 9:15 I sort of felt like I was like well it's a little extended here right now we're seeing a red candle on the five-minute chart with a high of 350 and you know at this point I'm not gonna trade it pre-market so I'm just gonna come back to it in about you know ten minutes when we're a little closer to the bell ringing remember that our our time right now is about 9:15 all right it's actually 9:30 but markets closed so we're just kind of running this a little slower so we're at 9:15 I like CL SK I'm very interested in it and I'm hoping that it doesn't keep going too much without me as you see it doesn't be going a little bit further but we'll come back to that one in a second so next one down was TLS a so so far I have one that is gonna be on my list and let me just load this layout layout when I bumped that cable it screwed up my my charts okay so so I would type in the CL SK here as the first one I'd be watching CL SK and we have no data today of course the markets closed but I might type in an initial order at 324 which is the current price or actually I'd put it up at 350 which we know is the pre market high share size of 2,000 shares and I'll come back to it so I have one stock right now that's on watch and now I'm gonna put this back down here and see if I can find a second one okay so TL si I pull up this one and the first thing I see it's almost impossible not to see is on the daily chart these three big red candles and I recall trading this stock and and being a little frustrated at how difficult it was to trade now this is a day where it went you know from three dollars up to eight dollars almost it had a big range but it just wasn't easy to trade so as a result the first thing I'm thinking is I don't know if this one's really gonna work and I look at the chart and what do I see it hit a $5 high and has already stair-stepping down is below the view app and it's looking weak so regardless of what the catalyst is and how strong it may or may not be the market is reacting in this way now sometimes we will see stocks like this that the bell rings in it ends up breaking so the spot where I'd be interested would be if it can break over for that's the view app and start stair stepping back up and sometimes they will on either a red to green move or a break a V whap but it's it's not my number one favorite set up so this might be one that I'd say well I'm definitely not gonna trade it out of the gates so maybe I'll just put it on this window down here and I can you know maybe come back to it let's go to the next one and that's pretty much what I would do in this case usually around 9:15 I want to move pretty quickly through the gap scanner and if I don't see something right away that I like then I just move on the next one question there about when do I play stops or they automatically pre-programmed so I can create stops like that I can go into my settings and under hotkeys and all of these hotkeys that I personally have used and created for myself for my strategy are available for you guys so there we go so you guys have full access was that playing in the background no sorry okay I'm just gonna mute that just in case I do that again all right so ctrl s is a long stop so this is a stop order that is actually set right now very tight at five cents below of a bed so it's a very very tight stop I might be more inclined to do something like position average price and then have that be minus 20 so as soon as I get in I could press ctrl s and have a stop 20 cents below my average price that I got filled out if you trade expensive stocks then that's you're gonna need a bigger stop but for lower priced stocks that 20 cent stock could work so these are already configured and this is how you just go in and change it and then you just save your layout so basically as soon as I got in by either pressing shift 1 or by manually clicking the Buy button I then press ctrl s to automatically set a stop I personally don't do that for the reason that then when I want to turn and sell I would have to first cancel that stop otherwise I have to sell orders and I could go short and if the stock is not short about they won't even let me put out to sell orders and so I'll end up having to I'll end up having my order rejected so just to simplify I don't do that and when we get into the live trading which started of course when the bell rang yesterday you'll see examples of how quickly I was trading and why those types of stops probably wouldn't work super well okay um let's see so TLS a yeah I wasn't super interested in that one the chart to me below view app selling off and with the history on the daily of having these weekdays just I didn't like it okay so next one down we've already said we don't like this leading gapper we've already said TLS a is only a maybe s dpi is too cheap I'm not gonna trade stocks under a dollar it's just a rule that I have and it's a rule based on my historical data which is that trading stocks under a dollar caused me to lose unnecessary amounts of money next one down NL s so as I look at it right here without even pulling up the chart 28 million share flow makes me a little hesitant but I'm like alright let's let's take a peek and so on this one we actually see that it has a somewhat decent set up here the pre-market high was up here around 368 I look at the daily chart I take a peek and you know ask myself what does this have going for it you see some really big gaps on the chart a little bit of resistance here in the kind of $4 for 16 range my biggest concern is that the float is just a little higher it doesn't have a lot of volume yet and so I'm just blue I'm a little skeptical of whether or not this one's gonna make a big move so in this case I end up saying it's it's a maybe and in fact at the open it opened at 264 so it ended up opening really low and popping up but being a really kind of weird chart which is something that we don't usually like that much so this one I might have actually didn't put it up yesterday but I might have said NLS I'll put it up as a maybe and we'll come back to it we'll look at the market again a little closer to the to the bell right now we're still looking at 9:15 a.m. alright so going further down do GZ no volume XA n again 30 million share flow these ones don't always give really nice breakouts by at the spot that I was watching them this was possibly along over 420 all right the pre-market hi I liked it the daily chart was good so that was another one that was a maybe but I was hoping to find something more like CL SK that was moving a little faster and looking a little more interesting going down a little bit further this one's volume is and float and price they're just not right mostly the flow is the issue see MSP alright so CN SP yesterday as we looked at that one we knew that this one had made a little bit of a move on the previous day so seeing pre market that it had this consolidation right here at 364 I thought well this actually looks pretty good I mean it's it's not bad and when I look at the daily chart and pull it back all-time highs on the stock or 569 that's the all-time high on the stock so if it gets above that level it actually has a lot of room to move higher it does have a history of some red candles which made me a little bit nervous but I thought it was worth keeping an eye on so CN SP I put up here and so which one you know kind of I've got only four wins for stocks I'm willing to watch it once so it's got to take the place of one of these and so maybe in this case I say well XA n and n LS both look good pre market TLS a doesn't really look good because it's sold off so much so I'll put CN SP up here and move X Z sorry XA n down here usually my two favorites I have on top and the other ones are on the bottom alright so that and that pretty much is the the top of the gap scanner so now let's run this gap scanner again right around 9:25 or maybe we can even do nine twenty nine twenty nine right before the bells about to ring okay so now the Bell is about to ring and we noticed CNS P has moved up the gap scanner dramatically so what ended up happening on this one is that pre-market it broke that 364 level popped up to 378 and I was like all right you know I'll move my order up to 4 and we'll see how it looks when the bell rings and then it breaks through 4 and it squeezes up to 5 and then it hits a high of 550 so this thing just totally broke out pre-market ok so it's definitely showing some nice potential which is you know which is great to see but now it feels awfully extended and so basically the bells about to ring and the highest volume of the day is a red candle and a red doji at the top so I was a little nervous about that however the fact that it had moved as much as it did and the fact that the float is low in the daily resistance level and all-time highs are very close I'm now thinking that maybe this does have potential for a move a little bit higher all right so see NSP we're gonna watch this one definitely at the Bell so now at this point my pre-market my watchlist with about a minute to the ballast I'm interested in see NSP hit a high it's pulled back ideally I'd like to see it pull back a little bit more and then give us a red to green type of setup and I'm not sure that it will gives me about one trade and a very small profit and we'll go over that in a second see LSK this one to me is is the one that I'm much more interested in because it has pulled back it's up here it's just showing a lot more strength that looks a lot cleaner the volume the high volume is on green candles this one's my number one tl si I'm I just don't think it's gonna do as much because it's a little weaker versus its pre market highs so I'm dialed in now with a minute to the belt focusing on CL SK and C NS P so let me pull up a recording and yeah what was that one yeah so this was ICD and this is one that did make a little bit of a move yesterday as well which I didn't trade but we could look at that a little bit later okay so let's put up CL SK and I'm gonna get my recording here so okay all right so let me play for you okay so the Bell is about to ring here and Cl SK is is the one that I'm focusing on more it is difficult when you have two stocks that both look really interesting at that kind of at the same time because it's just that challenge of you know which one do I which one should I focus on and you kind of have to make a decision it's not really a good idea to trade two at once and oftentimes when I have they both end up dropping and then I'm just in a terrible situation focus on one and don't try to divide your attention so this is the platform that I use I can actually use this and it looks different this looks a lot different when the markets open because you see all the data the market and my regular platform right now would look the same way so anyways so this is what it looks like I have the order here 2,000 shares at 5:30 that order is it's not a live order it just it's just pre entered in my order entry window and I have to actually click the Buy button so I have to press that Buy button to send the order but it's a limit order which means I won't get filled at any price higher than 530 and this is a limit order here which means I won't get filled at any price higher than 380 and this was a mistake because coming into the open I decided to move the order down the pre market high here was 360 so I move the order down to 370 thinking that I'd give myself $0.10 of slippage hands on the buy button and write it right away or 67 by 71 so this this was frustrating for me because I was a little too I had that order a little too low if I'd had that order at 380 I'd be getting filled right now but instead I'm getting filled a little on the bid but it's going without me right I should have 6,000 shares right now but I only have 519 so at this point I tried clicking it a couple more times but I have 6,000 shares as my max share size on this account I have it set that way so these two orders when I clicked it again got rejected rejected and rejected what I have to do is I have to cancel the open orders and place new orders and then I have to be really careful that I'm not doing that impulsively because I'm frustrated and I'm chasing it so at this point I end up adding at 80 and I have the order for dad again and if we back this up just for a second I'll say that this is a little bit of a funny open because it squeezes up here but right there clearly there was a cellar 71 a cellar at 74 a cellar at 79 there's a cellar right here at 80 and 81 big sellers it's struggling a little bit and then the sellers come back down so I was kind of surprised that it was struggling as much as it was right here I expected it to squeeze over $4 immediately so now I'm holding at 77 377 and we've tapped a high of about 395 I'm looking for it to pull back which it is right now and then I'm gonna add for the break over $4 I just added 2,000 shares at 96 and I'm looking for the break of 4 that is not what I want to see there's resistance at 4 and when you have a false breakout at a whole dollar it can be a bad situation so I went ahead and sold half at 98 because I was a little nervous and see how it drops down here to 95 and then a quick drop when it rejects the whole dollar that's when we can have that issue now in this case it ends up holding here but this first trade for me is a pretty small profit obviously it would have been a great profit if I'd filled six thousand shares at 370 and sold it all at 97 and 98 but I only have 500 shares from down there and the rest is from eighty and ninety six so you know if we do this math 500 shares times thirty cents is $150 2000 shares times 15 cents is about 300 bucks so I'm up probably four hundred and fifty dollars at the moment now let me just see if I missed any questions on this very first trade now I actually added by pressing the Buy button I move the order up to four and at 96 and eighty I just pressed the Buy button again I didn't use hotkeys to add in this case I only used hotkeys to exit let's see so I can I could use shift 1 I just have it turned off right now I unmapped that hockey because I found that it was sometimes encouraging me to be a little too impulsive and a little too aggressive so we haven't yet had to break a 4 we've hit a high of 4 I have an order app for to get back in now it's back down to 75 so it's shaking out some people that bought for that first break my hands now on the buy button cuz as it's curling back up I'm getting ready to take a trade possibly for a breakthrough for I'm back in there 6,000 shares so this one I'm in with full size at 95 98 and 4 I got in perhaps a little early although at that moment it looked like it was gonna break I just sort of got I'm honestly surprised I got a fillip 95 but it is what it is and there we go so that's what I wanted to see I just threw out an order as soon as it started popping up to take some off the table because I've gotta now full size on this position and I'm in at 4 and really I have to be quick because this has already shown a couple false breakout kind of issues and so I want to take some profit off the table so I take a little off the table there and a little more and you see it's it's not breaking out as cleanly as I thought it would and now here was 750 shares all of a sudden I'm you know down hundred bucks so I'm holding this right now and you know this is this is really not a great pullback this is too big of a pullback because I'm only holding seven hundred fifty shares I'm willing to give it a second see NSP is the other one I was watching so I'm kind of watching two stocks at once and on CL SK I still think that it's strong and you can see how I'm kind of going back and forth this is always challenging when I'm trying to watch multiple stocks at once if I had had bigger share size on this I would have probably been faster about selling because I have smaller share size I'm not really worried about the 150 $200 or $250 so I'm kind of just like well I'll just I'll just hold this for a second I'll keep a stop at the low of the previous of this green candle which is about 350 I don't really I hope that it doesn't go down there but I'll just give it a moment because this still has the opportunity of forming the first one-minute candle to make a new high so I'll just give it a second so I'm I'm sort of leaving this one for now and focusing a little bit more on CN sp now see LSK is back to 80 by 82 I think I might cut the loss down here they don't remember Oh back up there $2.99 I throw out an order for 650 shares to try to sell some around breakeven and then that order didn't fill and then I sold the rest on the bed so at that point I switch over to CNS P now let me pull this up here so typically at the open I'm watching a couple of stocks so I'll have so in this case I had CL SK on the left and I had CNS P on the right so these are the two I was watching and I had the two level to Windows as well so in the first few minutes of CNS P I was watching as it popped up here to a high of about 35 36 pulled back and then right here broke over that level and popped up to the high what I was looking at this was the potential for a squeeze up to 6 that did not end up happening and so let's watch this trade I swear all right so I jumped in this one as it started squeezing up here looking for the break over the half-dollar and usually when I get into a trade and then I'm instantly down ten cents I have to be switching my expectation from profit to minimizing the damage so this is a stock that made such a huge move pre-market I miss most of the move but now here I'm up 20 cents so I'm like alright let's take a little profit off the table but I'm not filling my shares we're not feeling very well I don't know if I hit the bid there but I'm still holding 913 shares and then all of a sudden here it drops back down thirty two twenty six forty-five fifty sixty seven and I'm just again kind of like what I did on CL SK I'm holding it for a moment but I do end up stopping out as it comes back down on the one-minute chart I still have my CL SK chart up here but this is a false breakout at that that resistance level so I stopped out there and in this case if we look at this chart on CN SP you can see that what happened here essentially was that it tapped 50 it broke through hit a high of 62 tapped within five cents of this daily resistance level that I was buying to anticipate it was going to break and it didn't break my warning sign on this stock was that number one as soon as I was in I was down I started basically red because it I got in it popped up to 50 so I was right initially and then it dropped down to 32 on the bid so at that point once it broke over the half dollar I was like I better unwind this a little bit because I'd rather walk away flat then read 600 so I started unwinding it faster if this trade had broken 550 and ripped to 565 575 580 then I would have been in the dryer see and I would've felt great I would have been willing to probably hold or even add if I didn't have full size but because it immediately showed this kind of struggle I started feeling nervous and I stopped out of the rest of it down here and this stock really never ended up coming back so unfortunately on this one the bulk of the opportunity was pre market and that was on very light volume by the time the bell rang it popped up here but it just didn't hold up super well so kind of disappointing this level we may come back to a few months from now or whenever it is and and watch that 569 570 and if it does break when the stock has a good news catalyst we may see a move up to eight nine or ten but today wasn't yesterday wasn't the day so I would also comment that the ability to have a trade that doesn't go your direction but still be able to minimize the damage of it is something that takes a lot of experience and practice to be able to achieve at the beginning of my career trades like that I wouldn't recognize those early cues to be cautious I would just maybe hold the whole thing and then all of a sudden with six thousand shares be down 40 cents a share and that's the $2,400 lakhs so the fact that I was able to mitigate that is definitely a reflection of a lot of a lot of years of trading experience okay so let's see so that was CLS CN SP there why don't I pause just for a second after those first two trades and see if there's any questions that any of you guys have and I appreciate Jess being in the room Hunter K Club member contributing a little bit there Jess did you trade CN SP pre market yesterday I'm sterling every order is a limit order unless you specifically change it to a market order so yep so you took that pre market trade nice good job can I explain how to use the view app so it's basically the view app is the equilibrium point it's the average price of the stock during the day including volume if the stock is below it it shows weakness if the stock is above it it shows strength so I like when stocks break the view app and squeeze back up and we had a nice break a view app set up right here which will be the next trade that we go over it's that shift is when the stock goes from being weak to being strong so I do like that you can trade pre market with a lot of brokers not all will allow you to but but most will let's be let's you trade pre-market there's no difference all the same hotkeys work and everything else my moving average lines here yeah so these are benign and the 20 exponential moving average and I just look at these as levels of support and again if I jump here into the classes oh hang on all right so I'm waiting for a call but anyways so let's see what was gonna show you oh yeah so under Chapter five this is where we talk about in turn intraday chart patterns and now again a pattern is not a strategy a patter is just a pattern when it becomes a strategy is when you start adding rules to when you train it and so you go here now into chapter six this is a gap and go strategy and these are all the different setups that I trade chapter seven is the momentum strategy and all the different strategies that I trade within momentum and then going into chapter eight is in the next section so it's important to realize that the technical indicators or the patterns by themselves they're just patterns of just technical indicators it's how you use them and what rules you have for for when you trade them that it that it becomes significant I could talk about taxes in a second we can do some QA towards the end and I can get into that and with practicing hotkeys what I was really doing was I would sit on my laptop with my battery out and the computer off at night and I would just practice hitting those hotkeys I've you know I think that probably something that maybe I take for granted is you know the ability to type on a keyboard you know sometimes you go into a store or something and you know the person's cash and you add and you know they're doing like the two finger kind of typing and it's like oh you know they don't they haven't you know learned how to type from memory and I think a lot of us who grew up in an age where computers were becoming part of the school system like when I was in elementary school they printed out a keyboard I remember mr. cram ski was the teacher or the assistant she'd print out a keyboard on a piece of paper and you would sit there with your eyes closed and you were supposed to you know start practicing typing they didn't have actual enough computers for everyone but you know that that was something that was part of my schooling but I know it wasn't the case for folks maybe even just a few years older than me and also for those that just their school system didn't do it so that's something that has probably been a bigger help to me earlier at first getting started because I just it was one less thing that I had to learn yeah but it's not something that can't be learned you know people learned how to type every day even people who are you know much older and so yeah the the hotkeys it was just a practice muscle-memory and of course putting stickers on my keys of what those keys did if you ever go into like a editing studio you'll see how they have these rubber keyboard things they put over the keyboard and it has all the commands on them the the editing software okay so I'm using limit orders for all these orders these are all limit orders you can see right here alright so we're currently three minutes into the day alright let's keep going let's keep trading alright so at this point see NSP is pretty much dead see LSK is back at 3:50 so I'm at a spot where I kind of have to sit and wait for a few minutes so it's 933 so at this point I'm sitting and waiting 935 I'm still sitting and waiting I still have these two that I'm watching you can see down here some stocks are hitting my scanner but I'm here's here's something that you know it's kind of important the two stocks that were my primary focus both of them are a little lower than where they opened so at this point Michelle says she learned how to type on an actual typewriter good for you Michelle so at this point you know because the two leading gaffers I was watching have both come down I'm feeling like that by itself as an indicator of momentum not really looking super super good when I was in high school I was on the ski team and so you know let's just picture for instance the first two skiers who went down the course before you both of them wiped out all right ones off in the bushes and the others got you know it was climbing back up the hill to try to find a ski so it's an indicator that the track is a little trick is a little maybe slick there's some ice and I better go easy when it's my turn so you know I was usually the one that was like picking up my skis and that you know that was part of just either being too conservative and sometimes that gets you into trouble or being too aggressive and that gets you into trouble as well and case so these were the first two skiers down the hill and both of them kind of not looking super great I mean they're not they haven't tanked but they're not holding up really well so now you know it's 9:40 I haven't taken any more trades it's 9:40 1 942 I still haven't taken any more trades I'm just kind of feeling like I don't know but here's what I'm starting to look at I'm still watching CL SK and what I'm noticing is that it's kind of basing out a little bit number one the first candle of the day is technically a green candle it's got a green volume bar do you want glass eyed girl go on it's got a green volume bar it's a doji but it does have a green volume bar the second one's red but lighter volume we're currently below the view app but is it possible that we could get a break of view app set up and if we do what is the apex point so the way I trade and you know just to go on a little bit of a tangent it's kind of funny because I'm really pretty risk adverse at this point and and yet day trading for me feels like a lower risk way of of trading so the reason is because I feel like I want to get in and get out get in at the most obvious place and then get out and take my profit so on this stock right now I already have 355 as my line in the sand I'm looking at that as the high of this candle right here and it kind of came back up right here and attempted it and then pulled back so I'm thinking if it breaks this level we might make a move back up towards $4 that's what I'm starting to think and so I'm getting kind of dialed in on this as a possible entry so now I'm watching and I have an order for 1,500 shares at 45 and I want to see as it's based out here is it gonna curl back up so let's move a little further forward it's about 944 and now here we're starting to come up so we're not we're at 340 by 345 this is a little bit risky right now because the stock is still currently below the V web it's below the volume weighted average price still in control more by the Bears than by the bolts by the sellers than by the buyers and sometimes when you buy right into a level like this you're buying right into resistance and if resistance doesn't break you're in right at the top so you have to be a little careful on this position if you're anticipating a break it needs to break pretty quickly otherwise my feeling is I need to get out so we've got CL SK here 40 by 45 and I have my order ready and I've moved it up to 55 which is the apex point you could also call that a pivot it's not a tree it's not traditional pivot points but it's a it's an important line in the sand and if that breaks then it's looking interesting so I see some volume coming in where it four million shares right now up 200% and at this point I'm watching this like a hot so where's my eye it's mostly on the time and sales right here and on the ask price and I glanced over at the chart to just see what the last candle looked like what the high the next candle is and so on and so forth now where I decide to take this trade is that this green candle has 10 seconds left before it closes it's a five minute candle and it's gonna close at 9:45 all right so at 9:45 it's gonna close and then the first Campbell to make a new high would be the break over the high this candle which is 45 so now I'm thinking maybe 45 48 is an early entry with a stop around 40 I'm waiting for this candle to close we've got five four three two one that candle is now closed and the high is 45 so I draw the line there I'm dialing this in to the penny now those of you guys who are and of course I'm streaming right now on on YouTube also to give those you guys on YouTube some a nice little bonus session here it's very important that you don't get into the mindset of I'm just gonna follow Ross and every trade because and literally wait for me to say I'm long to jump in you're you're always gonna be behind me if you do that whether you follow me or you follow you know Carl Icahn Warren Buffett Bill Ackman or Jim Cramer if you just follow people you're always gonna be behind ultimately you want to learn how to predict where they're gonna buy so you can be buying at the same spot and so in this instance I've already put my order my my line at 3:45 so you know of course also because I've articulated that this is where I'm gonna buy it that this is the spot to be watching it you don't need to wait for me to say I'm in if you have conviction in the trade trade in a simulator practice build that confidence and then you'll be able to trade side-by-side with me if you want we may trade the same stock this one's got four million shares of volume there's more than enough volume to go around but you don't get into the habit of just following so this is something that's really important with my strategy again just a little bit of a tangent here when I was getting started and by the way while I go on this tangent if you're streaming this on YouTube and you haven't already hit the thumbs up like button you better hit it right now otherwise you're really letting me down big-time so hit the thumbs up button and subscribe to the YouTube channel if you're not already because again if you don't subscribe you're also really letting me down big-time big so so here's this tangent for you when I was getting started you know I was watching other people out there other traders out there and you would see people on on Twitter and you'd see people you know posting their trades and their P&L and stuff like that and of course there were people that were in they were running trading rooms and stuff like that and you know whatever else and I tried going into some of them and and and figuring out how are these guys doing it and this is what I saw a lot of and let me just put up my my chart so I can show you an example I saw I saw a lot of people taking trades on you know what's this what's a stock just try to think of it somewhat decent one this one's a little expensive maybe CCL Carnival Cruise Lines so you know a lot of people have been watching Carnival Cruise Lines for instance so let's say so this is actually a really good example so this is a stock right here that came down at this spot and looked like it was maybe doing a flat bottom all right so it sold off sold off sold off and so you know you'd have a trader there could be like okay I think this is gonna bounce off of twelve seventy or I think it's bouncing here so you know I'm gonna take a starter position and they would say all right I'm I'm I'm long CCL down here at around twelve eighty and you kind of look at that and be like all right well you know why twelve eighty you know what's the what's the what's the setup there you know I'm not I'm not really clear exactly and how do you find these in real time you know this I don't know how that he really found this stock okay so he's in at 1280 s so what's the target well you know the target is that it gets back up to the V whap of 13:15 and then maybe breaks through the high and goes to thirteen forty 1350 so you're like all right okay so you follow them on that trade and then it breaks down here and they're like no I'm not gonna sell because you know the next support level is gonna be you know down here at 1250 so it comes down to 12 50 and then alright I just added some more shares of 1250 okay and then all of a sudden down here and and you know you're sitting there thinking I'm about to blow up my account the stock is continuing to go further down you know I can't keep adding and then right here they're like okay I just you know oh yeah I actually did end up adding down there I didn't tell you guys and I just sold right here at 12:30 for a profit and you're like you got to be kidding you know I I don't have the money in my account to buy my way out of trades by just adding and adding and adding as they go lower and you know this isn't a good educational experience for me I'm not learning a strategy here I don't understand why you got in here or anything else and so one of the things that was that and that was a big challenge from you there's a real frustration to see people trading like that because it kind of felt like you know they can afford to buy their way out of a trade by just throwing more money at it and I can't afford to do that I need trade that has one entry point and one exit you know an obvious entry an obvious exit that I can understand that I can see in real time and so that's when I started building the strategy around stocks that were hitting new highs and buying the pull backs and things like that and then ultimately it over the course of a few years developed in the strategy that I trade now which you know as I've been trading quite a long time so this is a strategy that I think it's easier to learn because a lot of times it's based on an entry point that's dialed into the penny 3:45 with a max loss in this case of the low of the last candle so it's very obvious now where it starts to get more advanced is going to be on the micro pullbacks it's gonna be on the nuances of level 2 and time and sales and all that stuff but all of that can be taught whereas with some of the other strategies out there it just feels like I don't know I I just got myself really frustrated feeling like I just couldn't possibly understand and how they're finding the stocks and it almost felt arbitrary that it would be you know just taking a random position on the stock and if it works there they make money if it doesn't work then they just add to the position and that doesn't work for beginner traders with $500 accounts it just doesn't work I need precise entries and so let's watch this next trade here on CLS k so the 5-minute candles closed and I'm watching this for a possible long I'm I would say on that last red candle on the one-minute it did tap the V web and pull back which is a little a little sign of maybe caution in this case I really I wish I'd had my chart a little bit bigger because my chart is so zoomed out it's a little hard to see what's actually going on there I don't know why I did that but let's move this over all right so we're gonna pull this back here so this one what it's gonna end up doing its first a false start and then and then it's gonna break so this is what we're about to get right here's the false start right after that red candle and I do take this trade so when I saw that volume coming back up I was like alright let's let's take a stab I'm looking for the first five minute candle to make a new high boom there we go but right away we have a big seller at the half dollar so let's look at how big that seller is there that's a well you know again it's it's not that big but this is a 15,000 shares seller if I was being aggressive I as this is coming down I would add and you guys see me do that in a lot of instances it goes fourteen thirteen twelve eleven ten nine eight seven six five four three two one boom we add expecting a break and a squeeze up to you know 60 it breaks but not very cleanly because right is as it breaks another seller dips down and now it's back to 50 and so when that happens that's a red flag now this is something that when you get in for that type of breakout you're expecting pretty much immediate resolution this is not what we wanted so now this is looking like a tap of view app that failed which is really unfortunate because it was a nice 5-minute set up for the first camel to make a new high so again on this I've I've taken a little off the table I have a new order at 55 and I'm looking still for that break of 55 so I just added back at 50 and 53 for the break of 55 it's a critical line another seller hitting right there at 54 so at this point I'm like now if this is not good I need to unwind the position so I get out of it and probably lose a little bit on it so this is you know and so sometimes the case that we get a couple of false starts before finally it opens up and ideally we don't have false starts ideally we get in at the actual you know breakout spot and you know we're just right in the profit but it's just not always the case that we're fortunate enough for that to happen so now I've zoomed in the chart a little bit more clearly 3:55 is still the breakout spot that is still the line in the sand that I'm really interested in but and I'm looking back at that trade and I'm like okay well yep I was in it 50 and 53 and sold at 48 so I lost you know a little bit on that notice that I don't have my P&L being displayed right now in an effort to make myself not emotional because no doubt I was up a certain amount on the day let's say it was two thousand dollars or a thousand dollars and after that trade I might be up only nine hundred and by seeing that immediately I'm like I need to make back a hundred dollars now even though I know I just gave back a little because I don't have a number attached to it it's less emotional so so at this point I'm what I'm kind of waiting to see if this comes back up I think I hit the bid and bail out right here at thirty I see a buyer but I'm like I don't really I'm not liking this so yeah I'm out so right there I hit it and I'm done and it's was it probably a good exit saved me an extra twenty cents now some people might buy this off of the bounce on three and I was half thinking about that and then I said you know what this this five-minute setup really isn't it's not perfect right now because the stock just did a false breakout on five minute just a false breakout of the V whap I don't think this is a safe place to buy it and this it's very possible that this will be the you know the the end of of the momentum all right so then we watch it it ends up bouncing back up I still have my order at 55 so I would say it's probably what ends up happening here when it comes back up as it squeezes out short sellers who probably looked at this and was like this is a short it tapped that 355 level it couldn't break it it broke falls break on the view app this thing is going back down to 3 275 and so maybe some of them are still holding right here it's kind of curling back up retesting the view app so let's just watch this for a second so a lot of green volume going through there so I take 1,500 shares starter I'm like let's just let me test test the water on this thing again we're seeing some volume going through oh he's gonna break over the half dollar 35 by 44 hands back I'm gonna move my hand back to the Buy button I checked the high a zoom in the chart a little bit to come back over here volume is coming back up as it curls up again this is really looking strong to me there I just add now I've got 4,500 shares what I'm looking for is the break of 355 now I could alternatively have just waited until 355 broke my indicator to get in was what I saw as strength on the level to what I saw is strength on the time and sales and what you'll see is that if I had used a buy stop at 55 I probably wouldn't have gotten filled because look what happens it goes from 55 to 60 3 to 74 and I'm selling I'm taking profit off the table that's the break of view app it happens so fast that if you're waiting for that candle and not looking at the level 2 you will miss it entirely that's why you need level 2 snowing outside and it's very windy the dog does not like it so I wouldn't have been able to catch that breakout without using level 2 I would have missed it entirely you know just I wouldn't have been able to catch it so I need the level 2 will there be some times where level two fakes me out a little bit sure you know that that'll happen sometimes also just like any indicator or any strategy but it's part of my strategy to use the level 2 so now we have a high right here in the 80s the halt level is at 395 so we still have a little ways to the hall level and now I'm wanting to see two things number one will it hold this breakout clearly short-sellers just got squeezed as it broke through that level and sure we can go back and I can rewind that and we can just watch this again so let's watch this breakout because this is a pretty nice break of V web stocks got 5 million shares of volume I'm gonna add for the break over 350 5 orders at 355 it's a limit order meaning I won't pay a penny higher than that and if they had been slow on pressing the Bible and I might not have gotten filled so what were my early indicators first that green that I saw now green again right here and here this green as it's lighting up that's exactly what I wanted to see 355 was the breakout point and I'm in about nine cents early and that's that immediate break when you have a quick 20 30 cent pop like that that's usually the result of people you know pressing market orders to cover a short or to get in it could be buy stop orders they're executing and so I'm in before them because I saw that this 355 spot was an apex point and I saw the early indicator on level 2 that this was worth jumping in for so I take some profit into that breakout and now I'm gonna hold well I guess in this case a very small position partial fill and because it came all the way back down to 50 I'm a little concerned but I movie order up to 85 for my next trade so if it breaks over the highs then we should get a squeeze through four dollars watching and there we go 380 I just added it 380 I took a little profit off the table because what I expected on that ad was an immediate break and a squeeze up to three $94 I know that I'm trading this now a little on the higher side and have to be careful I don't want to give back too much my profit from that nice clean break out so I put my order up to add at 95 or 403 you can see how it's churning a little bit here eighty-eight I just added therefore the break over for moment of truth will break for or will for B resistance for a second it's dipping down on the micro pullback here we go there we go nice unfortunately here double topping at about 4:15 so on this one and I end up with let's see what was it no I guess oh yeah there it is so that's where I ended up finishing out of the morning mm sorry two thousand nine hundred and sixty one dollars and I wouldn't say that this was a perfect absolute picture-perfect trade it was a little choppy both in the 50s and then again around 4:00 but it gave some good opportunities so those of you guys who are already in the warrior pro classes you know that of course this will be uploaded for you along with all the other videos that are similar I this is something that I do on a pretty regular basis for warrior pro students it's annotating and giving commentary to a live trade so I record my trade and then I go back later in the day and do everything I just did with you guys you can probably tell how valuable these are and how much it helps kind of see sort of behind the curtains of what my thinking is while I'm taking these trades I would encourage those of you guys who are on YouTube if you haven't already checked out the beginners getting started guide to check that out and to make your way through some of the free content I have out there and hopefully at some point take the leap and join the classes whether it's the warrior starter class or the warrior pro course I know that my trading is probably at a point where you know I'm making it look kind of easy and I think that that's probably the same as you know someone like a professional tennis player or whatever it is who's been doing this for a long time who you know at a certain point it things become second nature and you have a lot of experience and you know the wind kind of does feel like it's at your back a little bit but to expect that you'll be able to train at this level without going through a class or without really spending a lot of time on strategy development would be it would not be realistic I bought at 379 because I thought at that moment that it was about to surge through four and I was a little early on that entry I sold half to reduce my risk but kept the other half because I thought that I had the right idea I wasn't ready to totally bail on it I just wanted to reduce my risk so that's that's the philosophy of breakout or bail out if it doesn't work right away my ad when I added up here did kind of the same thing I was expecting an immediate break over for but you have to plan if it doesn't work you know what's your drawdown and how much can are you willing to afford to give back and so I was willing to afford a little bit of a pullback there and then it popped up broke through and I took some profit off the table what's magical about the half dollars and whole dollars is that they're strong psychological areas of support and resistance and it's something that you know has just been the case probably forever the stocks come up to those levels they sometimes have resistance and when they break through them they get that quick pop through we definitely see it on the low price stocks but you even see it on the higher price stocks maybe more around levels of like $100 or $150 or $200 and less of each individual dollar but so how do I know when to end the day and not give back profits well I would say that that's something that I sometimes struggle with I often will take that last trade and give back a little bit of profit and one of the things that I've been trying to be very mindful of is that if I start to give back profit at that point just to walk away because I really don't want to have days where I'm up three or four or five thousand dollars and then I walk away red it's not ok that's that doesn't work I need to try to be consistent about walking away with profit and yesterday was my seventh consecutive Green Day so it has definitely been working well but you know it's it's a tough one to learn when to walk away so it's always better to walk away sooner than walk away too late so even if you leave a little money on the table and yesterday for instance there was there were a couple of stocks that I ended up missing PST I and so one of the things that I of course am a big advocate of of is that you are learning the strategies that I trade and if you choose to trade a little longer in the day you can utilize the strategies that you've learned for me to trade these stocks that I may have chosen not to trade now because it's not a good setup or doesn't look good but because I hit the point of the day where I said I'm taking the money off the table so P STI was a good one ICD was another good one but you can't really fault someone you know for saying look it's my seventh consecutive Green Day I'm taking this $3,000 and walking away sure could I have continued trading and maybe been up 6,000 or 9,000 yes or I could have continued trading and had a couple false breakouts and then given back all my profit so you have to take money off the table every day you are either leaving money on the table or giving back profit you are doing one or the other I would rather leave a little money on the table and give back profit pretty much any day of the week my longest consecutive Green Day streak is 56 days so I still have 49 to go in order to beat that which means I wouldn't be able to have a red day until let's see [Music] so that would be May until the end of June I don't think I'm gonna set that as my goal right now because it's not a big deal to have a red day it really isn't you know it's it's nice to it's nice to have you know long you know relatively long you know hot streaks and stuff like that but to trade in fear of a red day is is really not a good way to do it okay so I think let's see with that I'm gonna stop this recording for warrior pro students and you guys will be able to go back and watch this warrior pro students of course you have access to the section where we do talk about taxes so you can go into that so I'm gonna stop the recording here for those of you guys still streaming and when I can answer a couple questions on taxes and I also encourage those you guys that are part of the YouTube or Facebook streams to check out some of the links in the description of this video so I've got the ultimate beginners getting started guide which you guys are welcome to download I also am gonna put a link let's see let me just look for it let's see I can't find this link here it's alright so I'm gonna share this with you guys on YouTube so this is a link to some information about the small account strategy that I used in December right there that you guys can check out so in December I took a five hundred dollar account and turned it into fifty three thousand dollars by the end of the month so that link right there let me see if that came through that would have that'll have the strategy there's some reason I think my chat feed is just a little frozen right now I'll give it a second to catch back up I'll just refresh this page okay so tax questions so the most important thing for those of us that trade with offshore brokers for instance it's important to know that if you have income offshore that you do have to pay income tax on it just the way you would if you made it with a u.s. broker some people think oh I have an offshore account you know with cmeg I don't have to pay tax on that money and that's not the case the u.s. is and the IRS certainly wants to collect the tax that US citizens make regardless of where they make it so it's a world tax you make the money in you know the Caribbean you stuff to pay income tax on it so that's important and the second is that day trading is taxed as short term capital gains which means the income is taxed at your regular income tax bracket so it's taxed higher than long-term capital gains but your income bracket is based on how much money you make so if you make more than $250,000 you're obviously gonna pay a higher income tax on those gains in excess of 250 then you would pay if you're only fifty thousand a year so it's not a clear-cut answer of how much tax am I gonna pay if I earn you know if I'm if I'm day trading it really is relative to how much you make and how much you make in your other if you have other sources of income so that's just something to be mindful of it it's certainly gonna vary state by state many well several states don't have income tax some states treat capital gains differently short-term capital gains and some of you guys aren't even located in the United States so there's a lot of variables when it comes to taxes which is why it's sort of a tough it's actually impossible to give any type of answer that is going to be universal other than the most universal answer would be to speak with either a CPA or some type of tax professional who can help guide you in the best way to manage your taxes it is the right of every tax payer to you know I suppose pay the least amount of taxes that they need to no one wants to overpay if you don't need to so you need a CPA that understands the tax code and can allow you to take advantage of what is there and what is available the right offs that exist if your trading is your primary source of income and you have purchased three monitors exclusively for day trading then there's probably a reasonable basis for saying that that's a that's a cost of your business and that's a write-off if you use your internet for day trading a certain percentage a day and then the rest of it you're using for other stuff then maybe you can write off a percentage of your internet but you know it all has to be within reason and and you want to make sure you've had someone like a CPA look at it so if you get audited for any reason not necessarily I don't know the day traders have any higher likelihood of being audited but if you got audited for any reason that you'd be able to have someone who can stand by your side and represent you in good faith that you did the best you could all right so yeah no state tax in Nevada Florida I think Texas Alaska New Hampshire but New Hampshire does have taxes on certain capital gains I believe and a lot of the states do a lot of those states also make up for it in other ways whether it's property tax or sales tax or whatever the case says so making money in the retirement account is a a little bit tricky because the money that I make in that account I can only withdraw if I'm willing to do both pay income tax on it and pay a 10% penalty so my feeling on it is that you know I've already turned 583 dollars into a million bucks I've made really good money as a trader and at this point if I can trade primarily in a retirement account and save money for the long term I'm okay with that but it does mean that those gains that I make are are tied up unless I'm willing to take that hit if there's a point where I need that money and then presumably my income tax rate my bracket will would be a lot lower than it is now and so paying a 10% penalty and paying income tax on it wouldn't bother me as much as it might right now so you know you have to do what's a good fit for you if you're trading as a side hustle to make a little extra money then you probably wouldn't want to use a tax deferred account but if you want to speed up your retirement then you know a tax deferred might be the way to go let's see let me look at some other questions here yes so I have my IRA account with Lightspeed and I have settlement margin so I can date trade in it as much as I want I don't have any leverage you don't have four times leverage but you do have settlement margin and yeah it's perfectly legal to day trade in a retirement account brokers are established so that you can't they allow specifically my scanners all the scanner settings of the configuration how I set them up that's all part of the warrior pro classes so I'm not gonna get into that a bunch right now this is these are probably one of my most valuable tools and so I do reserve those for students that are in the classes those of you guys who are not already in the classes I encourage you to jump in there and that'll give you an opportunity to learn a little bit more about how I've configured these scanners and how they run so these I mean this took years of fine tuning to get them to the place that they are now where they're actually helpful and in finding stocks that I'm interested in trading and that meet and fit the criteria of my strategy so CNS PCL SK obviously both on the scanners this morning and color-coded in a way that brings my attention to them because they were really good quality setups at the time that they were breaking out the difference between level 2 and time and sales is that level 2 shows you the buy and sell orders right here so this is level 2 time and sales so this shows you where people are buying and where they're selling so if you looked at this without time and sales you know if you covered that up you would see the prices is moving up but then you wouldn't be able to see exactly like how many orders are going through whereas if I back this up and then I look just at the time and sales I'm seeing a lot of orders going through but then I'd also kind of lose my place and exactly what the spread is and you know the best bid and the best ask and stuff like that so I would it would be very easy to get thrown off so they really are hand-in-hand it's kind of like you know I don't know it's just you really can't separate you they really should always just be to take together because you can't really at least for my strategy use one without the other on a thousand dollar account which share size do I recommend so I can give you I can walk you through that real quick and maybe we'll we'll end with that question so let's go here to my trader view account so this was from I'm gonna go back to let's see twelve one twelve thirty one twenty nineteen twenty nineteen and I'm gonna tag just my cmeg account which was the offshore account that I use for my small account challenge so this was this was day one oops let's go sorry calendar so day one right here in December third I had a five hundred dollar account on day one five hundred dollars very small account so how many shares I take I bought three hundred shares and then I sold 300 shares meaning my total volume was six hundred three hundred in 300 out alright 600 shares so on 300 shares actually did pretty well $139 158 before commissions so 139 gross P&L on 300 shares so 300 shares was day 1 day 2 right here I ended up losing 18 bucks a little bit of a setback I traded 500 shares of this stock and I traded 600 of this stock so a little bit slightly bigger share size but not not a ton bigger day 3 I traded 300 shares 300 shares 200 shares and 400 shares so cut those numbers in half because it's a Buy and a sell day for I traded this stock many times 22 execution so about 10 different trades each one with between 200 and 300 shares this day here again very active on this one stock this day here I started sizing up a little bit more as my account was growing so by the end of the first week I had already doubled my account to $1,000 by the end of the second week my account was at 2500 by the end of the third week my account was up twenty-five hundred thirty-six hundred thirty-seven thirty-eight thirty-nine almost four thousand and then right here doubled the account was at about seventy five hundred by the end of the third week right here another sixteen hundred and eight thousand so now the account was an $18,000 twenty one thousand and then right there doubled the account in one day forty thousand dollars by the end of the third week finished at 53 thousand dollars after commissions start with five hundred bucks and 300 shares alright so if that's not inspiration I don't know what is I hope and those of you guys who have been streaming this on YouTube come over and check out the beginners getting started guide you check out some of the specials that we have a warrior trade for beginner traders and you start your journey today alright you guys so that's it for me I've got something I got to do here at 11 a.m. so I hope you've enjoyed the morning and I'll be back at it first thing Monday morning as always market opens at 9:30 and I'll be doing my watchlist around 9:00 9:15 so let's I'll make sure we're tuned in alright see you guys in the morning bye everyone

Channel: Warrior Trading

Views: 190,844

Keywords: day trading, day trading strategies, trading strategies, how to day trade, beginner trading strategies, momentum day trading, stocks, trading, how to trade, stock trading, penny stocks, pdt rule, shares, float, volume, candles, profits, Wall St, finance, brokers, Ross Cameron, warrior trading, day trade warrior

Id: ZfwTJAMLroA

Length: 109min 34sec (6574 seconds)

Published: Fri Apr 10 2020