My Bear Market 🐻 Day Trading Strategy

so in this episode I'm going to share with you the bear Market strategies that I've been trading during this most recent drawdown now listen this is part of trading there's ups and there's downs and as a Trader you have to be able to Pivot and adapt to the market you're in you can't just stubbornly trade the way you love trading if the market is not supporting that so if you're a Trader who's kind of hitting against the wall you're running into a wall it may be because you're trying to trade a strategy of the Market's not supporting and that's very common when you have downturns in the market although it can also be common if you have a swing back up in the market and you developed a strategy specifically for trading downturns so you have to be able to adapt so in this episode I'm going to share with you the bear Market strategy that I'm trading right now this is the best that I've ever done trading during a bear market and it's not just because of the setups that I'm taking or you know the particular stocks that we're trading more than anything it's because I've been able to adopt the discipline to be patient because this is one of the challenges and I had to learn the the hard way in a bear Market you've got a headwind you will not see the same level of parabolic momentum these crazy extreme moves that you see during a bull market so during a bear Market you have to set lower expectations you have to be content with hitting smaller base hits and if you're not disciplined enough to be able to do that you're going to find yourself spinning your wheels two steps forward two steps back two steps forward five steps back and that's not a way to make money so the Traders right now who get through the bear Market or those who are learning perhaps you those who are learning a trade during a bear Market if you can succeed during a bear Market you are setting a really solid foundation for the future because the fact is the only traders who make it through bear markets are ones that have discipline and that discipline will allow you to thrive when the market starts to heat up so I hope that this inspires you I hope it motivates you to continue studying this is a class that I taught live about a month ago and it was really popular you everyone loved it I got great feedback from it so I wanted to Premiere here on YouTube for you guys so we're gonna do something special during this premiere for every thumbs up we get I'm going to donate a dollar to charity for every share we get I'm going to donate two dollars to charity during this Live premiere so please hit that Thumbs Up Hit the share and I'm doing something extra special for you guys there's a link right down below you can check out now or anytime during the episode a two-week trial over at Warrior trading two weeks to trade side by side with me so check out that link for the two week trial you're gonna have access to the chat room the ultra low latency broadcast ad free real-time Market commentary you'll have access to the scanners that I use the news API and you'll get a sense of the way I trade in real time you'll get a sense of whether or not you like the way I trade you like the strategy you like the community and you like the tools so give it a shot I think you'll really enjoy it there'll be a link right down below to check out the two week trial and let's go ahead and jump in to Bear Market strategies let's get into it cool okay well why don't we uh go ahead and jump right in this Workshop is for those of you guys trying to figure out how the heck to trade through a bear Market day trading in a bear Market listen if you're going to be a day trader and you want to be at this for the Long Haul sooner or later you're gonna have to trade through a bear market so if you're watching this right now of course live it's because we're in a bear Market if you're watching this on the replay maybe it's because we've entered another bear Market or we're still in this bear Market I will try to record this uh study session uh as long as my internet doesn't uh break in the middle of this stream the recording should be fine and I'll be able to give that to you guys so I thank you guys uh who are watching on the replay everything I'm going to talk about today is still just as valid as it was the day we um we had this session for the most part the strategies I've been trading are unchanged over the last 10 years with the exception of you know a little bit of adapting to current market but the strategies really are pretty much the same so and this is especially for those you guys that wake up every day pumped excited ready to have an awesome day of trading and then fall flat on your face as you get chopped up in another bear Market you guys you are my people this is you right here every single one of you I know this is you you think you're gonna come out hot have a great day boom on your face everyone here you guys are the JV team you're you're not even the JV team you're not even second string all right we are the bottom of the barrel we are all scraping the bottom of the market to try to do the best we can to make a little bit of money and you'd think it wouldn't be so difficult but uh obviously as we all know and as we have all proven in our own accounts this is some really hard stuff so some of you guys are um you know you you are a real Savages you will just put yourself through the ringer and you probably won't take any of the good advice I'm going to share with you today because you're just uh you're you're out to make it harder than it has to be but there are a few of you here today who will apply what I am going to share with you and this could be a real game changer for you so really take it to heart this is important learning how to trade through a bear Market is a criteria for long-term success as a Trader and here's the here's the thing um being successful is about following rules and about having the discipline and the aptitude I will give you the rules I will give you the blueprint of how to trade I could tell you right here today how to day trade you have to bring aptitude and you have to bring the discipline to follow the rules and if you don't bring those you're never going to be successful all right so I'm gonna get out you know give out as much as I can but you've got to bring it also all right so let's go ahead let's get started and by the way you can call me coach all right school's in session this uh class today is going to be like I said 90 minutes maybe two hours long um I'm gonna give you a chance to vote on the class that I'm going to teach today um but I also have a little spin on that because I have something that I'm definitely going to include which isn't on um the topics to vote for I'm also going to give you guys a new member coupon code some of you guys are going to decide hey this is the right place for me I want to keep learning from Ross this is an awesome day and let's keep it going so I'm going to bring on 10 students to work with me over the next year it's the beginning of a 90 day long program so I'll give you guys a link where you can join all right so that will be first come first serve all right so bringing on 10 Traders today a couple bonuses number one I'm gonna give you guys a free outline of my small account day trading strategy and I'm going to give you a copy of my best-selling book titled how to day trade where's the copy I always keep a copy on my desk but well I don't know where it went anyways uh so here's the deal the Market's dropping and I'm making money I can't tell you how good it feels to be the guy who's making money while the Market's dropping and during this last bear Market I have traded better than I have ever traded before in a bear Market you want to know how I feel during a bear Market when I make money this is it oh yeah oh it feels good oh my God another Green Day what are you serious long-term investors losing money not me oh yeah day trading in a bear Market now you might not think it can be done but it can I have a day where it was the biggest red day that we had ever seen in the market and you know who was Green this guy right here because I'm trading volatility all right so this is the power of day trading this right here is a stock it was up 80 percent on this day I was up fifty thousand dollars the stock goes from 650 up to nine dollars you will have events like this in Bear markets you will have events like this in Bull markets all right this is not just a bull market type of thing you see it in all markets now one of the things I want to share with you is the fact that I am actually a profitable Trader these are over this is over 11 million dollars in gross profit nearly 20 000 trades accuracy 69 percent I mean why am I sharing all this with you what's the big deal it's important that you know the person you're learning from is qualified here's a guy who made a video of how to gain one million views in just three days he's got seven views and the video was uploaded two years ago all right so I'm not gonna spend all my time telling you how much money I've made but I want you to know beyond a shadow of a doubt that my gains are real and this is actually right here um this is my uh audited uh broker statement let's see I'll go full camera view here this is my audit broker statement showing a 1.6 million percent return when I began this account with 583 dollars it was January 1st 2017. the account has over 10 million in gross profit all right now it's important that you know the person you're learning from is qualified I've got my broker statements on the website and this is the audit right here showing you that those broker statements are the real deal so I'm not saying that there's a guarantee you'll make money in fact I'm going to explicitly tell you that my results are not typical and that there is no guarantee that you will make money whether you learn from me or you trade on your own all right trading is risky and let me just throw up a little um a little pull here I'm gonna I'm gonna throw a little question at you guys um so I'm gonna ask you is day trading risky and the answer is yes or yes go ahead you see if you can fill that out this is the real deal guys I'm not going to tell you that trading is easy I'm not going to tell you you're gonna make a million million bucks overnight I'm not going to tell you you're gonna be a millionaire I will talk during this Workshop about the success that I've had and I will talk about the success that some of the traders that are part of the warrior Pro Community have had I'm very proud of those who have been successful in fact one of the most recent student who's made over a million dollars who got a million dollar badge he did something really really important in the way he approached trading that I'm going to share with you guys today because every single one of you can take a lesson from some of the things that he did right but this is the real deal trading is hard it is hard I mean it's not it's not being a roofer in July but it's you know pressing buttons that's easy look I just press buttons making money trading is hard all right that's what's hard so I don't want to Discount the fact that it is difficult um I want to be very upfront with you and tell you that so all the statistics tell us that most Traders lose money all right so this class is for uh beginner and experienced Traders alike I'll cover the Core Concepts as part of setting a good foundation for you to understand how I approach trading in a bear market and we're going to talk about Advanced strategy development all right my job is to teach you financial literacy and the language of financial markets this is the tip of the iceberg there's a lot to learn but we're gonna get started here today there's no better place here than today to jump in so why don't you guys tell me which of these chapters you want me to teach I said I would teach one chapter from the warrior Pro curriculum so those not already familiar and you can just call out the one that you want me to teach the warrior Pro curriculum is a 20 chapter curriculum this is it right here so this is um chapter 8 momentum day trading strategies long set up number four the micro pullback that's slide 732 this goes all the way down to slide 1400 right now and um my thought was that I would probably because of course we're catering and sort of focusing this study group on trading in a bear Market I want to make sure that you know I'm sort of approaching it from that perspective so we're not going to talk it doesn't seem like there's a lot of interest in setup five consecutive candles and five consecutive candles so I'm probably gonna leave that alone right now seems like there's a lot of interest in the ABCD pattern um and you know what I also want to do here is and there's a good amount of interest in the bull flag what I would like to do is I'm going to put up a poll to ask uh how long you guys have been trading this is going to help me also get a sense of the traders that are in this study session today and make sure that we're sort of catering it um to the right you know audience it seems like we've got an interesting split so far um sort of high on the more than a year and a little higher on the brand new and not as many people kind of right in the middle which is um actually kind of interesting because it's sort of opposite approaches for teaching brand brand new beginners versus those who've been doing it for a while um so okay no worries no worries um okay so that that is that is helpful for me all right so a lot of a lot of folks interested in uh parabolic as well okay okay um all right I've I know I I have what I need um I'm gonna do a little uh Mitch map mix match here um but it's good it's good I think this is gonna work so before I jump into um the lesson I want to give you guys a little bit of you know I'm not going to tell you my entire history you know of my life but I want to share with you a little bit of how I got to where I am right here today um you know it's it's the story of of your coach it's an inspiring story so let me share it with you my family has a fairly long history in the stock market um my great-grandfather uh well his name was Lincoln and he actually was working on the floor of the stock exchange 1929 during the Great the the great crash it's it's kind of a uh incredible story because he was on the floor he was just getting started and he was brand new and he walked like everyone was out of a job that was it he was out of a job he lost the money that he was there you know however it worked I've heard this story through my aunts and uncles and so he ended up going into the insurance business and and pretty much being very very risk adverse for um a verse for the rest of his life he was not interested in in the stock market uh when I was going through Middle School 1997 98 99 it was the.com bubble and I was fortunate that the teacher in the Middle School it was a Montessori middle school so not maybe a traditional middle school so the way this worked there was one teacher for the whole you know you didn't go to the different teachers it was one teacher and he was really into stock market so what he decided to do was he actually created a um a whole um curriculum semester around paper trading and so every single day we would partner up my partner was named Cooper and he and I would partner up and we would choose different stocks that we were going to be investing in and we had a paper trade account and he had the teacher Kevin had all the stocks up on the board and he would update the prices every single day and uh at the end of that semester we went down to the New York Stock Exchange as part of a you know a celebration at the end of the semester so I I in a way I started getting interested in trading at a very young age Middle School which is you know it's quite young a few years later um in high school my friend Ben that's been uh third one in um right there he made about fifteen thousand dollars trading a penny stock and so uh that summer I opened my first Ameritrade account and that was actually before they merged with uh TD Waterhouse it was just Ameritrade at that time and I have some of the old statements over here from um when they when it was just originally numeric trade account it doesn't really matter anyways um so I traded a little bit in high school that was with real money but it didn't really make money my Approach at that time was I bought some shares of Exxon Mobil I bought some shares of Pfizer you know this was like 2001. I bought some shares of a couple stocks that I knew I had about a thousand dollars to play with and I didn't really make any money by the end of the summer none of the stocks had really done anything and I sold out of positions for flat ended up buying a 1990 Volvo 240 station wagon for a thousand bucks I ended up selling that car um about five years later for I think it was fifteen hundred dollars which was a pretty good Roi when you think about it was a 50 Improvement uh so a very sturdy car but in any case um was out of the market this is my high school graduation uh my mom and my dad and at this point finishing uh High School getting ready to go off to college I did not know what I wanted to do in college I didn't even really want to go to college but my mom was pushing me she was like Ross you got to go to college you got to go to college and so I ended up going to college and I did about um three semesters of college before moving home I moved home my father was diagnosed stage four lung cancer less than a year to live he said he's already metastasized to his brain and so I was 20 and 19 20 years old when that when he was diagnosed and so I lived at home I pumped gas at the Sunoco gas station I drove dead to chemo and radiation therapy and I sort of changed my my whole view of what all this was worth you know my dad never got to really have a true retirement he died at the age of 61. that was the same age his father died so they both died at age 61 my grandfather died of a heart attack the day after Thanksgiving and my father um you know of lung cancer at 61 years old so neither of them really got to live a retirement and it kind of made me think that um you know life doesn't always work out even when you're not trying to do what you really want to do so you might as well try to do what you actually love to do because if it if there's no guarantee it's going to work out might as well at least go for the shot that it could work so for a little while I lived down in New York City and I was pursuing architecture and design I did finish my four-year degree and um I I was sort of falling into the rat race and I thought that maybe you know this was the right approach and this was 2008 2009 and of course we had the recession right so I'm coming out of college at the beginning of recession which is the worst time to be coming out of college no one was hiring people with master's degrees we're applying for unpaid internships so I ended up moving uh back home to Vermont and when my younger sister turned 21 I inherited a hundred thousand dollars from my father and so with that money I thought to myself uh I'm up in Vermont there's really no good employment prospects but maybe I can trade this account and even if I only make you know a thousand dollars a month the cost of living at 23 24 25 years old up in Vermont it's not that high so at that time I thought that I could maybe make a go of it and I set up my trading station you know I had a couple computers kind of pieced together a couple different monitors pieced together it wasn't fancy it wasn't anything you know high tech but it was enough it worked well you know the problem was um I really didn't know what the heck I was doing I didn't have anyone to learn from I was just trying to piece it together a hundred percent myself and what ended up happening was I hit rock bottom so the hundred thousand dollars that he gave me over the course of two years I I spent it on cost of living and what I didn't spend I lost in trading profits trading losses so I lost it all the way down to having just my trading account but it accumulated over thirty thousand dollars in credit card debt so that for me was rock bottom and um you know every day I would sit down I'd be excited to trade and then I couldn't get out of my own way it was like it was like clockwork and I'm you know it's like this shouldn't feel this complicated um you know let's see where where's this where's this guy I had a good one here where where'd he go um here it is this is me every day I can't even walk down the sidewalk I mean that's how I felt when it came to my trading it was like every single day and what ended up happening was I really started snowballing I started to compound the losses started to accelerate this was me again are you kidding me again boom three thousand dollar loss four thousand dollar loss again every single week come on guys it doesn't oh how my language but this is what kept happening I mean it was like time and time again and listen it's important to get knocked down it's important to be able to get back up that is that is part of trading but then you know on the other hand you've got to learn from your mistakes and this was for me I just couldn't get out of my own way and so my my rock bottom was having a five thousand dollar loss the very beginning of a new month and that put my account below PDT level so I couldn't trade in it so at this point now my account's got like 19 000 in it I can't day trade in it I've got thirty thousand dollars of credit card debt and I I'm I'm like what am I gonna do and this is where desperation starts to set in now for me fortunately because my account was locked out I couldn't trade and so what I ended up doing was I reviewed all of my metrics and this was really important and this is something that we'll talk about during this uh study group you have to know your metrics and so by reviewing my metrics I actually discovered and I'm so grateful for this I discovered that there was a pattern in my training and this is what this data was telling me I you know as of right now I've got almost 20 000 trades 20 000 individual trades that you can review I mean it's so much data you can analyze your metrics your performance and that's what I did so you have to be willing to adapt to what the market is telling you patience isn't always the optimal way sometimes you do have to change directions being patient and just you know sticking it out that wasn't working for me you know I I was I was struggling and and here's the deal trading is hard to learn but once you've got it it doesn't feel hard in the same way as when you're getting started it shouldn't feel like every single day is a struggle [Music] that's the realization it shouldn't be a struggle this can be easier I'm making it harder than it has to be and so that's that hitting of rock bottom and then waking up and being like wow okay let's take this back to the drawing board let's look at this a different way and so what I discovered was that in fact my biggest winners all had something in common my biggest winners were all on stocks that had high relative volume and we're gapping up that was really important now if I could consolidate all my trading into that this is what this is what you get and this is what happened of over 10 million dollars in gross profit all of it is on stocks up over 10 percent which you can see right here this is right in here it's up over 10 I'll turn on my um my laser pointer so up over 10 is right here and this is stocks that have five times relative volume so now we've got a sort of reverse engineer for you guys how do you actually find those stocks all right how do you find those stocks so you can produce metrics like that now obviously there's no guarantee I'll produce metrics like that but produce metrics where your winners are Consolidated within one sort of type so now I'm so fortunate to be able to share the strategy that I trade every single day with Traders all around the world and it's it makes it more fun to learn to trade you don't have to be doing this on your own we've got over 2 200 testimonials over on trustpilot probably more by today 5 92 percent giving us five star so that doesn't happen by accident that's because we've designed a really thorough comprehensive program that 92 percent of the people that go through it say this was awesome all right so I'm not gonna um you know read every single one of those 2 000 testimonials but I just want to reiterate that the person you're learning from right now is qualified to teach day trading and that if you want to take it a step further and actually become a member of the warrior trading community that you're coming to a place where 92 percent of the people in the community have said through trustpilot that this has been an awesome fit for them all right so um you know the choice is yours um do you want to make this harder than it has to be and this this is a good one I'm going to show you that one in a second um I I have I have another one it's so good I'll I'll I'll I'll get in a second you want to make this harder than it has to be or do you want to go the easy way and this is just to me trying to reinvent the wheel or trying to learn from a strategy that someone is already trading every single day so um we're going to go ahead and jump in here um I've got the micro pullbacks right here and what I was kind of thinking um I think I might do this a little bit differently and kind of mix in two sections we've got um half dollar whole dollar entries that one I don't think I'm going to focus on that we've got our ABCD pattern which a number of you guys were interested in I think what I'm going to do is I'm going to start with the first pullback on the bull flag and then we can do a brief discussion of micro pullback and then we can do a little bit of ABCD because ABCD pattern is basically you have the first pullback it then fails and then it continues higher that's sort of the way it works so now let's go ahead and jump in here uh oh wait one second first I want you to promise me that you won't throw hard-earned money into the market before you have first proven that you can make money by trading in a simulator all right so um this one uh this was the one I was um so look at what happens to this guy's head now I want you to think about this this is what it's like when you trade with real money when you trade with real money before oh oh oh what do you think is going to happen to his head and his like brain area whoa close call okay well let's not risk it right when you trade with real money and you don't know what you're doing you are setting yourself up for failure seriously you don't have to do it that way so many people do it that way and you don't have to do it that way so I have to ask you guys a really simple question which is um how bad do you want this because if you really want this you will be patient and you'll be disciplined if you get desperate you say I need to make this money next week I need to make this money by the end of the month you will lose I guarantee you so if you really want this be patient be disciplined pay your dues and in a bear Market this is the best time to be learning because if you can make money in a bear Market you are setting a really strong foundation for when the market heats up and when the market does start to heat up you are ready to put the pedal to the metal and scale into it now if you start learning when the Market's hot you're missing out on that opportunity because you're not going to be able to fully capitalize on it because you're new so you are starting you are learning right now at perfect time okay um so I want to talk about risk management um let's lay the foundation here for um the for trading in the bear Market by talking about risk management trading is risky all right we understand that but let's think about how this works so this is a table as you can see right here and it's comparing risk and reward and so if you risk a dollar to make a dollar you have to be right 50 of the time to break even right that's your Breakeven point now if you risk a dollar to make two dollars you actually only have to be right 33 percent of the time in order to break even that means you can be wrong seventy percent of the time 65 percent of time whatever and you can still make money that's incredible that's because you understand statistics now what a lot of beginner Traders do and you might be able to relate to this is they hold losers too long and they sell winners too soon if that is something you do you hold your losers too long and you sell your winners too soon I can guarantee you you will have a negative profit loss ratio you win a dollar on average but you lose three dollars if that's the case you would need to be right 75 percent of the time in order to be profitable now if you look back at the metrics that I showed you earlier on the over 10 million in gross profit you would notice my accuracy is 69 percent 69 that's great that doesn't tell the whole story you can have 69 accuracy and still lose money if you have a negative profit loss ratio or you could be right 69 and make 10 million dollars right so it's how do these numbers come together and this is what being cognizant of risk management allows you to empower yourself to be successful and make money even if you're not right 100 of the time all right so and here you go I have this slide here again so 69 accuracy right there you can see my average winners and average losers are are approximately the same they're roughly the same they could be a little bit closer but they're pretty close and Casey says me too I sell too quick listen it's a fear-based it's a fear-based habit it's a behavior driven by fear it's the fear of losing the small gain that causes you to cut it and tell and sell it and take the profit and inversely when you're in a loser you don't want to have a loss and the only way that it maybe won't turn into a loss is if you hold it and then it goes back up so you keep holding it hoping it goes back up because it's not really a loss until you press the sell button there's always hope until you press the sell button so you keep holding the sort of our human emotions are not designed to trade the market right the market humans have been around a lot longer than the stock market we have to adapt our mind to trade the stock market successfully because the way we are naturally wired will cause you to lose money so this is about it's not and so marwin says it's about controlling emotions that's one way to put it but on the other hand I would say that it's difficult to control your emotions you can't just not be angry you can't just not be frustrated you'll feel that it's developing awareness that I'm feeling pissed off right now that means this is a good time for me to walk away and stop Trading that's what it's about that's the best you can do you will still get emotions I still get them I still get angry I still get excited I still have all the emotions but what I've gotten better at is learning to recognize their influence in the way I trade that way I can cut off real quick and get out when I'm starting to feel myself getting what I call emotionally activated all right so uh I've kind of laid out profitability in terms of Three core components which I'll just share with you briefly here the Three core components are consistency profit loss ratio and accuracy your profit loss ratio I just talked about your average winners versus losers and your accuracy is your percentage of success over you know X number of Trades how many were winners the third was consistency now sometimes Traders say Ross which one should I focus on and so I'm going to take this as an opportunity to get up the Whiteboard here this is this is kind of there's different ways to approach it but this is what I would focus on Focus on a quality a plus plus Triple A setups the best setups focus on trading the very best goes up and you know what happens when accuracy goes up you have fewer losers so you know what improves your profit loss ratio because your losses are smaller when they happen because you're focusing on the right type of stocks and you know what that then leads to consistency improves consistency goes up so where do you need to start right here and this is true whether you're in a bear Market or a bull market focus on best quality setups now that's a great question Dennis says which setups are best Dennis you are sending us right into the next section I couldn't be more grateful what a perfect transition can we get Dennis here every time I have a study group I created a process for finding the right stocks each morning so as I mentioned the realization that I had years ago in my training was that my profits were from stocks that were up 10 percent okay so well up ten percent that that's easy right so just have to look for a stock that's up ten percent boom done okay well it's not it's more than that though it's a little bit more than that it's it's up ten percent and then it has the potential to keep going up so so what else is it all right so in order for a stock to have the potential to go up 20 to 30 percent at a minimum right there needs to be an imbalance between supply and demand my biggest winners are almost always sharing similar Supply demand care characteristics all right so this is an imbalance between supply and demand when a stock goes up uh more than 10 and when you have five times relative volume it's showing a very high level of demand okay so this is the scanner system that I've actually I mean this it's funny you wouldn't think this would take years to figure out but when you're doing trial and error this slide right here took me years to discover if someone had given me this on day one when I started day trading I can't tell you how much it would have sped up my learning curve so these are the tidbits that you guys should be writing down because I wish I had known this stuff when I got started so in order for a stock to go up 20 30 these are the indicators of a high Supply demand imbalance all right high demand low Supply so number one we need five times relative volume all right so let's switch over here so I'll just take this one off well I don't need to write it down we've already got it right here so but let's let's kind of talk about how this works let's talk about why this works so we're looking for a stock that has a potential to go up 20 30 percent right let's just think sort of outside the box on this so a stock goal goes up 20 30 how does this happen why does this happen why would a stock go up 23 one day why would it go up 100 one day there's probably news right okay so some type of news event number three there's a news event moving the stock higher we sometimes will call that a fundamental Catalyst there's a catalyst okay the stock should have five times relative volume well what would what would make a stock have five times relative volume a stock is going to have five times relative volume if there's something really exciting happening with it today which means it's got news and it's already up it's already moving so the way this and this is really I mean this gets into some really deep stuff that we're not going to have time to get into today but for those of you that become Warrior Pro members we'll talk about in more detail this gets into algo training and being able to scalp Algos so what ends up happening is news comes out news hits the pr news hits the wire at 9am 9 A.M news hits immediately algo reads news and instantaneously initiates buy they buy and they pull sell orders so what does that do all of a sudden you have a level two like this they start pulling the sell orders they start hitting the bid and now you've got an imbalance the stock starts moving up fast now it starts hitting High a day Momo scanners starts hitting High Dam almost scanners as it's moving up boom boom boom boom boom now you have retail Traders they're jumping on and this is now accelerating and moving faster it starts with an algo spike a squeeze and then we jump on and ride that momentum it comes back to the news but here's the thing it's not helpful we I mean we have a news feed that we use a proprietary news feed that puts news headlines in our room but the fact is news is coming out all the time okay so just listening to news it you know you could listen to news all day long in fact we need to use these scanners because we need to see something moving up so the scanners are the radar so I have a development team that I hire these are coding people they developed this they built this Center for me we subscribe to Market data okay so what we want to do is we want to get Market data basically at the same time that those high frequency trading algorithms are getting their Market data so we all subscribe to Market data and there's this big competition about co-locating the servers so you're getting Market data at the same time as everyone else right there's even like having the same length of fiber connection so everyone's getting the same sort of Level Playing Field but it's never really level you guys know that it's not level but we do everything we can as a as a retail Trader to kind of get our Edge so we have a market data vendor we get the market data and then we process it in our own servers and we are looking for stocks that are moving up quickly right now and as a warrior Pro all access member you guys have access to the same tool that I use I've made it available to you guys so and that was one of the nice things is being able to have a development team build this out for me and then share it with you so we get this news we get the stock squeezing up we see it starting to move higher and then immediately we see okay it's got a news headline it's already up 10 percent the stock is between 1 and 20 which is only important because those stocks can make bigger percentage moves a one dollar stock that goes to five bucks is up for 500 percent a 50 stock that goes up to 55 it's up the same five dollars a share but it's only up ten percent right so lower price moves in a percentage Gainer sense faster much more attractive for retail traders who are often trading with smaller accounts and then we've got the supply side less than 10 million shares available to trade that's preferable so when a company does an IPO they sell a certain number of shares onto the market companies that sell fewer shares have a lower level of Supply so you know Tesla is a is a really big company but they haven't sold nearly as many shares as a company like Bank of America some companies out there sell a lot more shares to raise money and and others sell fewer so companies that sell fewer shares when people want them you know boom boom boom it starts to move up up more and more and more and more there's just a a limited level of demand now at the end of the day you still have the market cap equation which is number of shares and the price that it's trading at and by the way if I'm getting a little over your head have faith this is all stuff that first of all we cover in a lot more detail for Traders that are part of the curriculum and there's a lot to learn here so I don't want you to get overwhelmed just soak it up today and if you're if this stuff is interesting to you and you're like I want to keep learning then keep learning it's like learning a new language in a way I mean there's there's a lot here to learn there's a lot to unpack I try to make it pretty clear but uh anyways so um you know the the fact is at this point for me finding stocks to trade is no longer a struggle and that's I mean that's really a a big deal so I find these stocks to trade every single day so circling back to Dennis's question how do you find what is a quality setup we're gonna talk about the setups in just a second when we get into the actual um curriculum from Warrior Pro but in terms of the right type of stock to trade um I have it on the back of this so we can refer back to it we're looking for 10 at least price between 2 and 20 120 relative volume Five and higher news Catalyst float under 20 million 10 Millions preferable okay so this is this is the general criteria if a stock right now doesn't meet this I'm probably not going to trade it okay now it might meet like three of these but I want to meet all of them especially in a bear market right if we're focusing on you know AAA a quality a plus setups they should have all of these so if it has you know four of these but the float is like 100 million shares well it's probably going to be a deal breaker if it has everything but it has no news it's going to be hard to trust I might still take a couple trades on it but it's gonna be hard to trust and you know I I probably shouldn't trade it at all okay so if it's got all of this but the price is 50 a share that's gonna be too risky so it's got to have everything and in a bull market you might see a stock that has everything and you might see five of them a day in the bear Market you might see five of them a week so the opportunities are still there but they're a little fewer and further between all right so let's go ahead and jump into the class have I lost you guys are you guys still with me does it sound good all right um this is some of you guys this is where some of you guys are right now you're like oh my God [Music] done I'm out I know it's a lot listen I know it's a lot I know I know this is some heavy [Music] no pain no gain right okay all right let's keep going okay so uh all right so I'm gonna back this out here I'm going to put this up here so I'll bring this back we'll I'll show this to you um in a in a few minutes all right so now um let's go over so let's go let's go full screen on the bull flag so uh so what I want to do here is um I'm gonna kind of play this out for you for a second so this is the this is a bull flag pattern so for those of you guys that are you know again like beginning of the learning curve which was kind of a good number of you we're using Candlestick charts all right so the reason we're using Candlestick charts is because a Candlestick communicates four pieces of information the open the close the high and the low so really super quick Candlestick 101 this is a Candlestick right here and we've got the open the close so that's the close that's the open that's the low and that's the high all right now if it was a red candle it opens at the top and closes at the bottom those are flipped but these are still the high and the low so we like candlesticks because they communicate Market sentiment doesn't it make sense that a candle that looks like um that looks like this communicates something different than a candle that looks like this right clearly those are sending a message so this is pattern recognition and this is what we can begin to do is we recognize these patterns and so in the context of a bull flag what we have is a stock that is quickly moved higher so these are our candlesticks moving up okay now it starts to develop a pullback like this and this is the important place to start watching it we will find a stock doing this right here as it's going up on our scanners scanners are the radar that we use so each each one of these dots is the stock hitting the scanner so we're going to pull up the stock we're going to see okay this stock is moving higher right now it's on our scanners but I don't want to chase it I gotta wait for a pullback and so this is the bull flag pullback right here so we wait for a momentary pullback now the interesting thing is this could be on a 10 second chart this could be on a one minute chart it could be on a five minute chart you could trade on a 15-minute chart you could even trade it on a daily chart if you wanted to the pattern occurs in all time frames so it's up to you which pattern or which time frame you prefer to trade on I am primarily using one minute in five minute but I am also applying this to a 10 second chart so we've got our micro pullback and during this time where it's pulling back I'm going to be watching it closely and my hand is going to be on what button the by button so I'm ready to tap that buy button the second I see a candle break that price right there that dotted line the second this stock breaks over this level and so what I'm going to have to be doing is I'm going to have to use my charts to be constantly checking what was the high of this candle what was the high of this candle right here what's the high of this candle here now if this candle high is three dollars and ten cents then on my level two window when I see uh 307 by 308 and then I'm seeing green prints at 308 I'm going to start thinking to myself there's a good chance this is going to break through 310. I'm going to punch it I'm going to hit the buy button I'm going to step up to the plate on this you have enough people that step up to the plate enough people that press that by button and that becomes a self-fulfilling prophecy and that's the reason chart patterns work so well on stocks that have high relative volume it's because so many Traders use them okay and Dan I don't exclude the Wix I include the wix so I do include the wick now the first candle to make a new high I'm along there let's say 310 and of course the first Target is a move back to the high we break through the high right there we continue higher and then we wait for the next pullback and then we do it again and that's what I do on the bull flag and I do it all day long now I'm going to be most aggress and this is these are the waves that stocks are trading in this seems simple it's fairly simple where do people make the mistake they try to apply that pattern to the wrong type of stock it works well when you trade the right type of stock when you trade stocks that have high relative volume you've got a lot of people watching this pullback a lot of people watching means a lot of people pressing the buy Button as it starts to dip back down if you start to apply this to a stock that has a high level of high frequency trading like Bank of America or something like that you are not going to see good resolution out of this pattern it will not resolve correctly there's no reason for it to resolve correctly you have to trade the right type of stock that's got to be first and foremost right type of stock to trade and then you apply these patterns to that setup all right so um so let's jump back on to the screen here so you can do this on this could be a one minute so like my example here on the Whiteboard this could be this could be a 10 second chart and remember if this was a 10 second chart then the one minute chart probably looks like this it might have a small topping tail which was formed right there the next Candle on the one minute opens a little bit lower and then it goes higher and then there's another slight topping Tail as it opens a little bit lower and then goes higher again okay now we look for the same pattern except for on the one minute chart right so this is the zoomed in 10 second chart now we do the same thing on the one minute and then we could do the same thing on the five minute and uh Raj says what's my risk stop at the low of the pullback stop it below the pullback stop at the low of the pullback so when I'm trying to buy a dip I'm trying to buy it down here off this level but I don't want to just start buying it you know like right here because I don't know it might pull back more and I don't want to buy it right here because it might end up pulling back more in kit in fact it might end up pulling back all the way down and if the chart's broken okay so what I really want to do is I want to wait to press the buy button until I start seeing the green prints when I start seeing those green prints on the level two that's usually what I'm going to look for is that first indicator that the trend is starting to shift so this is this is the bull flag pattern um and I'm gonna I'm gonna read this to you so you don't have to um you don't have to try to read it yourself I'll just um I'll put up my camera so it's a little bit more interesting to look at all right so the first candle to make a new high the Apex point of the bull flag or the pattern that's the entry okay so right here this is the Apex right there it's the first candle to make a new high that's the entry sometimes I will enter early to anticipate the breakout as I said here if the first entry if the candle's at 310 but I'm seeing green prints at 308 and three nine that's an indicator go ahead and press the buy button this is time and sales and this is level two all right so this is again a little bit more intricate but important stuff to know if you're an active Trader you've probably already seen all this stuff so if I'm entering early what typically triggers that entry is a break through a psychological level perhaps we dipped Below on this candle we might have dipped down to 299 or 298 and then we popped back up over three so breaking below and then back above psychological levels very important so even if a stock does not is not quite yet at the first candle to make a new high if it breaks below this critical level so we're we're pulling back here we're pulling back and let's say this is three dollars so we dip below three and then as it comes back up they'll be green on the tape so as it comes back up there 299 301 if it can reclaim the whole dollar psychological level I'm going to punch that buy button at 301. 301 buy and then the first candle to make a new high is still at 310 what am I going to do I'm going to add more at 310. so now we've got this candle going up going back up going back up and of course this was on the idea was on a bull flag right so this is a psychological level and and again just you know by the way this is this is why it's so valuable to be Trading in a community because you're not trading on your own while I'm trading I am articulating this type of price action in real time that's why you call me coach right you say hey coach look and I say that's right we're watching this stock and that's right my name's coach don't forget it so almost immediately upon entering I want to see the price move up if the price moves down immediately my timing's wrong usually I'm pretty good with my time because I'm tape reading but sometimes the timing will be wrong and if the time is wrong I usually cut it right away so if I take a starter then I add as it moves higher uh again when I go red eye trade almost immediately I often change my perspective um to getting out Break Even rather if possible rather than it being a winner I I no longer kind of think oh this is going to work because if if I get in and it immediately flushes my timing is just wrong okay so now let's talk about the target all right so first we've got the entry the entry is the first candle to make a new high right but we sometimes will anticipate it with an early entry based on the tape and psychological levels that we're trading around okay and and some of this is is stuff that an algo can't really do yet maybe eventually they will but this is where we have an edge as retail Traders right we're able to read these nuances both in the speed of orders going through the levels the candles there's a lot of stuff to try to program into an algo and what we find is that stocks that have very high levels of relative volume are up more than 20 30 percent there's a lot of Algos that when a stock is up that much they just turn it off and so there's this argument that high frequency trading algorithms are providing liquidity to the market yeah until the market gets volatile and then they turn off so when they turn off a volatile Market gets even more volatile because you don't have those Algos creating the bids and and offers that kind of just tighten it back down but that's actually good for us because that's where we start to see these big moves as day Traders we profit in a way from inefficiencies in the market you know if the market was perfectly efficient the stock would just always be trading at the exact correct value price and you wouldn't have these fluctuations you wouldn't have these news spike it would just there'd be news and then immediately would be at the next level but it moves to these levels and then comes down off of them so um anyway so the target is a retest of high a day all right now if the pullback is a bigger one then we may start be getting into the mindset of an ABCD pattern and we're going to talk about the ABCD pattern again in a second but the ABCD pattern would be like it pops up here and then it dips down again and then it starts to go so it's like a double bull flag um and in a way it can make this final breakout more powerful because during this sort of period of consolidation more Traders and these are their eyes they're like looking at it they're like oh this is exciting and this you know he's kind of like his face and stuff he's like oh this is interesting and then he's like pressing the buy button when you have really fast patterns nazmi Traders will always see them and then that's going to reduce the volume so when you have a pattern that's very obvious and is more drawn out here more eyes mean usually better follow through again not always but that's that's typically the case so risk factors um so here's the thing uh stops are usually tight on this pattern however we do have a risk factor of false breakouts and double top rejections so a double top rejection is when um you come up to this level and then you reject off of it and just kind of like it sells really hard now a number of things can trigger that but initially usually what it is it starts with like a big sell order so it comes up to this level and all of a sudden someone puts out a big sell order and so it immediately kind of flashes down in that market order and then people that got in for this micro pullback or or one minute pullback start to bail and then you get that Panic cell and if it breaks through the low of this last pullback it's stopping people out and now it's breaking down it may still end up working on a five minute or a 15 minute time frame but whether or not you really want to hold it that long is sort of the question so this is something that a lot of traders in this place if you see that double top uh and it's it doesn't break through it they're going to bail out so that means buying at the very high can be a little bit risky especially in a bear Market buying on the pullback is going to be better um and so that that's probably the biggest risk is a false breakout either formed by the double top or just through it popping and then immediately reversing back down but the stop loss is typically tight at the lower the last pullback now this is all relative if this is a three dollar stock this might only be a 15 stop if it's a 30 stock it could be a dollar fifty a per share stop but as you know we would rather trade lower price stocks because it's easier to manage risk on and usually we'll see more momentum on them anyways so that's kind of my preference um profit Targets on this I mean generally speaking one to one is minimum I I aim for two to one so if I'm going to risk 10 cents I want to have the potential to make 20. the potential the realistic potential so if I'm looking at this setup and I'm thinking about getting in the difference from this entry here to the high has to be at least 20 cents that's a 10 cent stop that's a 20 cent Target if that's not a bare minimum I probably won't take the trade because I'll just say it's not worth it you know maybe it's a b quality setup maybe in a hot Market I would take a b quality setup but in a cold Market at a bear Market no I'm going to be focused on high quality setups which means during a bear Market I'm going to trade less frequently but the trades that we have I'll still be aggressive on them and when they work I'll do well and so that's the biggest difference is fewer trading fewer trades more disciplined during the bear Market um and also in a strong Market I would be adding into these levels I'd be adding up here oops I'm adding up here I would add up here and I'll just add at highs when I'm seeing green on the tape I'll just keep adding into that squeeze so I'm just like I'm all in in a bear Market I'm gonna buy on the first entry here I might you know take a starter on this dip and then add into this breakout but I'm not going to be as aggressive adding too high into the breakout because of that false breakout risk so a little bit more conservative there but even within a bear Market there may be individual days in that bear Market where it actually does make sense to be more aggressive you know a bear Market is kind of a hot and cold Market you might have like three or four cold days and then you have a really hot day and so on that really hot day yeah you want to be aggressive and then on the rest of the days you just go easy so and you never know which day is going to be the hot day that's the thing so you show up every day and you know you sit down you you just see what the opportunities are all right so um so these are a couple of examples of bull flags and flat tops and what I'm going to do I'm going to run you through a couple examples of this and then let's see do you guys want to look at the micro pullback next or do you want to look at the ABCD pattern we can kind of do either um the ABCD pattern is just the extended bull flag for a second lag and then the micro pullback is like all this condensed on like a very short time frame I'll let you guys tell me what you think all right so uh both flags and flat tops so this right here uh on on the screen share this shows um a nice example there of that sort of pullback and then the move higher right so pull back move higher so maybe we'll do ABCD into micro pullback and then we'll cover a little bit of parabolic to finish it off all right so pops up pulls back and then rips I mean this is a perfect example of that first candle making new high right I mean how is that not a perfect example you have to move up the pullback and then it goes higher time frame that's a five minute chart so you can trade this bull flag first pullback on a five minute now this is um this is kind of interesting this is a five minute chart on the left and a one minute on the right and right here this is a one minute bull flag but it's kind of a false breakout see how it's a little bit of a false breakout also notice this is sort of floating way way up here it's super extended it comes back down to this level at the moving average and then we set up first five minute candle to make a new high and this thing goes from 360 all the way up to 450 460. pulls back and then that pullback it actually got bought up pretty well and the volume is increasing right so this is where we're starting to see it's a small cap stock it's an energy stock it's moving fast it's Traders are focused on it you've got you know decent volume here's another one stock goes from two a dollar 24 to three dollars over a hundred percent this is a five minute chart and so you can see early on a little bit of chop you know this pop and pull back pop up you know it's a pullback right there but it gets a little cleaner right here that's a pretty clean pullback this one's a pretty clean pullback as they start to get more extended as they start to get more volume that's where we can start to see these really clean patterns it just starts to become super obvious this one really nice this is a more expensive stock at 26 goes up to 28 but very clean pullback pops up first pull back right here a very quick one and it goes higher it doesn't wait it moves up pulls back and then goes higher and that going higher and not waiting that's why we do so many micro pullbacks especially in a bear Market because when something starts to move Traders jump on it fast they don't wait they just jump on it fast because they don't want to miss the opportunity and then off it goes and the problem is if you're sitting there waiting for that five minute pullback a lot of times we just don't get it so in a bear Market it's funny but you actually in some ways have to be faster because the opportunities are short-lived so this one starts it goes red and then it pops up and that right there on the one minute chart is like a micro pullback and then it just rips from 22 all the way to 32 dollars a share but don't get caught chasing it because look at that red candles that comes back down right so this is another one sort of red to Green move then it breaks over the v-wap pulls back pops higher pulls back inverted Head and Shoulders dips down pops up pulls back and goes higher not the the cleanest but not bad either this is a nice one curls over v-wap pulls back right there five minute time frame and breaks from 12 up to 18 a share that's fantastic that's a really nice move okay so now let's talk for a second about let's go into the ABCD pattern so let's see our ABCD pattern where was it um so the ABCD pattern I'm going to show you a couple examples of this the ABCD pattern is basically it's a bull flag a first pullback that fails so what ends up happening is we have that pullback right here it pulls back it makes a new high right there and then it doesn't go through the high so initially it's a failed bull flag it pops up it doesn't go to The Hive and it pulls back but sometimes that's okay and it actually actually can create this coiling this really strong pattern that ends up breaking even stronger when it finally goes than if it had gone on this first setup so this shows us a pullback a breakout pullback it pops up right here it pulls back it does not break the low so that's the important thing let's go to the Whiteboard so the important thing on this setup here for the ABCD pattern is that we're moving higher okay we're moving we move higher like this and then we have our first pullback right here and then we pop up here but we don't make new highs right and then we pull back just a little bit and then we come up right here and this is where we break through so this is where we sort of have this like wedge formation so the levels that are important on this pattern is that it cannot break the low of this pullback if it breaks the low of that pullback then what it's doing is it's stair stepping down and that's bearish it has to hold this level it can double bottom but it can't break it so it could double bottom right here it could double bottom and then go higher so it forms this kind of w pattern and sometimes it even goes for another leg and then it breaks I don't usually like to wait too long if it's not strong enough to break on the first try I mean I'm kind of like already like I don't know this should have kind of gone on the first try but let's give it a second and then if it goes on the second try that completes the ABCD pattern good if it doesn't go on that try then I I really am kind of like this isn't strong enough if it was really strong it would have already gone for some reason it's just kind of being held back a little bit so you can see this one here being held back a little bit um this is one let's see um this one's this one's a little bit probably harder to visualize as a beginner I'll show you um let's see so this one is is right in here so it pulls back it pops up it dips down but not below that low and then it goes and then the first pullback following the breakout provides an opportunity to buy that dip right there this is another one right in here pull back pop up pull back starts to come up almost starts to form more of like a double top pulls back and then it goes on the third try sort of similar here pulls back pops up pulls back and then it goes so it's really like an an extended bull flag this is a little bit cleaner I mean this one's pretty clean it pops up it pulls back it pops up and in this case here this is really common when you get a big pullback I mean this went all the way to nine and then dropped below eight so that's a big pullback it then bounces back up but it's it's just not really realistic that's going to go all the way back through nine so it bounces back up but then not quite enough it pulls back and then here we start to get in this consolidation and now it's like okay it's holding this level if it breaks this level here the next logical spot is a retest to the high and then We're Off to the Races so that one is actually a pretty nice ABCD pattern this one's a little bit a little bit sloppier it kind of pulls back and sells off below v-wap rips back up pulls back and then it goes so I mean really it's about looking at the trend you know is this thing trending higher is it moving higher generally speaking what are the pivots you know when I say pivots I'm thinking what are the levels that if this breaks then the next Target is high of day so that's those are kind of the spots that I'm trying to get dialed in um I think that's that same one again so right here we've got this pop-up this pullback sort of like a little pivot right there this is a clean one pop up pull back pop up pull back and then it goes it's just usually formed by a little bit of a steeper initial draw down and then a rally back up and then another pullback so to be honest in this current market ABCD patterns are not my favorite because they are already indicating just a little too much weakness and in this market we really need some serious strength so let's see um so let's look now for a second at micro pullbacks so this and this is important one of the reasons I wanted to share with you a little bit on the micro pullback is because in this market stocks are moving when they start to move they move quick Traders are not waiting they just boom they're Off to the Races and they go and we don't get we don't get a lot of the ABCD patterns we don't even get a lot of really clean first pullbacks like on a five minute chart we get a micro pullback a one minute pullback and then that's it so and you know it goes and then it just comes back down so if you're not jumping in quick on these micro pullbacks you're missing the whole thing so this micro pullback here let's say this is a one minute chart this was designed as a one minute chart having said that it you could have this same pattern occur on a five minute chart on a 10 second not really it's too too fast but on a one minute yes so the way this is formed is a stock is squeezing up squeezing up and let's say it hits three dollars that's three dollars right there so we know that that could be considered a level of um psychological resistance it hits three and then it pulls back you see the level two you see it uh dip back down here to like 292. and then it starts to come back up to 296 297 298 boom it pops through that level okay so then we have another green candle so what ended up happening this actually looks kind of more like example two entry two where it's like it goes just a little lower and then it surges through and that's a pretty classic micro pullback and it's very common to occur around half and whole dollars all right those have that psychological resistance so it comes up to three and then it moves higher and in this case we go up to let's say 350 and that does it again and so in this case maybe it pulls back to 338 and maybe it even has a little red candle here now this could be a one minute chart or it could be a 10 second chart it could be a five minute chart but then it rallies right back up and goes through 350 up to 375 and then up to next level four right those are the levels that we'd be trading around half dollars whole dollars and then that's all very common that's the type of pattern that we see all the time so when this is happening if you're just sitting on the sideline saying well I'm going to wait for a clean five minute bull flag this stock could go up 40 50 before that happens and then you've you you don't get it you miss it completely right and that's a problem and so the micro pullback is a pattern that if you can visualize it helps you get into a strong stock sooner that's the idea you've got a stock that's really strong so what's the fastest way you can get in well number one would be just to press the buy button but if you just press the buy button in the middle of this candle squeezing up like you know right here just randomly you're just you're just not managing your risk well and you're just buying High a day by getting in right here I manage my risk off the low of that dip it's a micro it's a very micro dip but I'm still managing my risk off that level right so the pullback helps establish low risk in a way it is a micro bull flag and then the pullback here it helps establish risk so now the risk is right here now you're not going to be able to take this with like a hundred thousand shares because realistically with such a micro pullback it could flush back down if you took huge size there probably wouldn't be the liquidity to be able to sell on the bid if you had to so this is more like you know 10 000 shares which honestly is fine that you can do very well trading with 10 000 share blocks if you want to trade 500 or a thousand shares that's fine too you know from three dollars to 350 with 10 000 shares is five thousand dollars and then doing another micro pullback here I mean this could be a ten fifteen thousand dollar trade potentially you know depending on how you size and scale into the move so for me it's usually starter here again looking for green on the tape so we've got the time and sales we're looking for green orders to go through boom jumping in right there maybe then adding to the position if it's going really strong or if it does a micro pullback kind of right in here add again like three you know 28 and then look for profit around 345 350. expect to pull back here and then hold the core position add back to that position right here now looking for the move up to 375. if we get a micro pull back there then add 380 for the move up to four and again take profit as we approach four wait for pullback around four if it starts to accelerate and accelerating means that volume bars are increasing so these are the volume bars on on the bottom if the volume is increasing that's telling us that this is something that really has a lot of potential and by this point no doubt it's already up 10 the price of it is good the relative volume is there it hopefully has a news Catalyst and the float is lower we've already got everything needed for a quality setup records so on that one I'm going to naturally be a bit more aggressive all right so that's so that's the micro pullback and you know just to show you a couple examples of micro pullback right there micro pullback at 449. micro pullback it pulls back just for a second and then goes up higher and that's all you got this thing went to six bucks that's all you got if you're looking for a pullback you didn't get much on this one micro pullback right here 316 then it goes up to 391. pulls back here that's a proper pullback goes higher micro pullback right there false breakout as it gets more extended same risk with um with the others uh with the with as regular first pullback is false breakout risk um first pullback right here micro pullback at 350 goes up to 390 all the way up to four rejects off that level comes back down highest volume ends up being on a red candle reminding us that we want to get in early on these and not be chasing them too much nice micro pullback here up to this High dip rips higher these they're a lot easier to sort of um you know articulate when it's happening in real time these move these can just move so quickly even the screenshots are kind of um a little tricky that that's a nice micro pullback right there on ACB this one glsi I mean this thing went bananas it it did this nice micro pullback right there at 47.45 4750 then rips up to 50 55 60 a share this thing went up to like 100 a share it was crazy another one right here pulls back pops up little pullback and then it goes higher so for all of these I have you know live trading examples and things like that and these are like all live trading examples of the whole half dollar whole dollar break we're not going to go into those right now I want to just keep it kind of high level uh those that end up wanting to watch those so you're welcome to down the road so now let's look at um parabolic um so let's see um I'm going to just hide my notes Here on these um parabolic during Paramount perception let's see what section says [Music] we've got a lot of mentions of parabolic here um yeah some of these ones could be pretty crazy these are these are the low volume ones especially um I mean this is parabolic right so this was I mean the stock went from six dollars to 38 bucks you know on this particular day trading I think I went up like 175 000 on the day I should remind you that my results are not typical trading is risky GameStop uh this was I was up uh a hundred dollars a share I was in at 29 uh twenty two hundred twenty nine dollars it's at 332. only 250 shares I'm up 25 Grand on it um that's obviously parabolic and so the thing with parabolic is that when something is going parabolic you do not have a lot of time you you are not usually going to get proper five minute pullbacks so when you're getting into parabolic stuff you're really only getting micro pullbacks and and so let's think about why that's the case that's the case because so many Traders are jumping in to capture this move that it's not it's not pulling back it pops up it pulls back for a second and then more Traders are right there ready to jump in and then it goes the next leg up and now you're having short covering short sellers are Panic covering and now it's just continuing higher the reality is uh this is something that occurs in Bear markets you have short squeezes in Bear markets we had one uh just last week so I mean it happens you do have bear Mark you do have short squeezes and bear markets in fact some of the best short squeezes can be towards the end of the bear Market as short sellers are getting really comfortable really confident just hitting things short and then you get one that you know does something like like this that just accelerates like crazy and you know what eventually look this thing came back down it went all the way up to 36 it squeezed out all the shorts totally liquidated them and then it ends up coming back down to 12. so maybe they were right event you know long term but can you afford to hold 10 000 shares going 300 000 against you no and even if you could why would you we've seen stocks that you know like well GameStop went to 500. so you you've you learn to manage risk you learn to get the heck out when you know there's something moving crazy you don't want to get run over it's not worth it you never want to empower one trade to ruin your career you know and blow you out of a trade you know blow your account up what was I add on this a hundred and two thousand dollars on this stock or on the day I mean this was wild this thing goes from 350 to 13 bucks so each one of these arrows are where I was trading it micro pullback micro pullback micro pullback micro pullback micro pullback nice breakout micro pullback pops higher micro pullback nice break micro pullback nice break reverses back down inverted Head and Shoulders breaks through nine micro pullback 950 parabolic up to 11 micro pullback up to 13. Boom now we're moving this is what we're looking for that was a nice one you know that's when it starts to get really exciting and these are fast moving trades and this is where you have the benefit of trading those of you that are part of the community you trade side by side with me you can hear me articulating what I'm seeing that doesn't mean I'm right on everything I mean I of course have my Sheriff losers but being able to have that kind of first base coach there to tell you what's going on you don't have to do this all by yourself so the biggest thing with parabolic is it really this ties back to the micro pullback it's jumping on those micro pullbacks as they're moving higher so a stock like this one we can go in full screen on this for a second um so on this one right here really all you got so first it starts to break out right here it squeezes up to eight does a micro pull back there and then goes up to like 850 and nine it dips it breaks through 10 squeezes up to 12 it gets halted it pops higher it pulls back this is a micro pullback right here it goes up to 12 then up to 14. it halts it opens now it opens right here it dips down see the bottom of that candle wick so it dipped down and then it surges right back up to 20. pulls back squeeze up to 21 22 right into a hole so that was another micro pullback there at 20. I mean these are quick so if you're not able to jump on fast you're going to miss the entire move now as part of this study group I want to answer some questions that some of you guys have about the trading in general in trading during a bear Market in general so um why don't I why don't we do some Q so I taught this class live I ended up going on for another hour and a half of q a so in an effort to keep this episode relatively concise I'm going to cut it here and I want to remind you guys if you want to do a two-week trial over Warrior trading and get a sense of whether you like the way I trade in real time there's a link right down below that you can check out during the two-week trial you'll have access to the chat room ultra low latency broadcast so you can listen and watch me while I'm streaming ad free using the fastest streaming servers that we were able to develop I have my own development team and we built this out to achieve this goal of giving you real-time Market commentary you'll also have access to the same scanners that I use every single day and so during your two week trial you'll get a sense of whether you like the way I trade whether you like the community and whether you like the tools that we've built and if you like it and you'll love it then you'll stick with it and we'd love to have you as a long time member of the community and if not no harm no foul you gave it a try you got a sense of what it's like and it's no big deal so I want to encourage you to take advantage of the two-week trial write down below and I want to thank you again as always if you have questions and comments please leave them down below we do respond to every comment posted on the video and I hope you subscribe to the channel if you haven't already alright so keep learning keep studying the only way to get through this Market is by being disciplined so you can check out a couple more episodes from our channel right here and right here all right thanks so much see you guys soon

Channel: Ross Cameron - Warrior Trading

Views: 124,844

Keywords: day trading, day trader, stocks to day trade, day trade, How to day trade, Ross Cameron, Warrior Trading, day trading strategies, day trading for beginners, how to trade stocks, how to trade, penny stocks, stock trading, learn to trade stocks, beginner day trading strategies, day trading strategy, trading strategies, day trade warrior, beginner trading strategies, NASDAQ, NYSE, Stock Market, Stocks, bear market, trading in a bear market, bear market strategies

Id: _0wygrb5pPs

Length: 84min 47sec (5087 seconds)

Published: Thu Aug 18 2022