Hey, it's Clay at ClayTrader.com, and in this video, I wanna
show you how I find stocks to trade, and just share with
you a day trader strategy that is very straightforward,
that is very simple, and quite frankly, very very powerful and easy to do. In fact, I'm gonna take you to my desktop, and we'll walk through it
with an actual situation that I recorded where the markets. I'll put it this way,
I'm not gonna sit here and make it all theory, I am going to show you through a real life example, and essentially kind of
build a little miniature watch list with you later on in the video so you can see what I talk about here and then see how it unfolds in reality. But along with that, so I don't wanna keep this all in theory,
but on the screen here, you can see results from members of mine that are part of my training and stuff. And this stuff, what I'm talking about, I mean it works. All these members are doing this part of what I'm gonna show, and
you can see some great results. $1200, $1100, $1,000, Dan who's a monster. $36,000, and then here's
some results of mine, and I don't show any of this to brag. I mean, my results are actually the lowest of everything right here. But the point here is that,
like I was mentioning earlier, this is not theory. So not only am I gonna
take you to my desktop to show you how this all would play out in a real world environment. Here, you see some real world results, so there is not theory here, but also on the disclosure front, perfect does not exist, okay? I am not trying to come across like, this is a strategy that fixes everything and will guarantee you make money, that's not what I'm saying. All I'm saying is that if
you do what I show you here and implement this
strategy, then you are going to help tilt as many things
in your favor as possible, and that's what we want as day traders. We wanna leverage as
many odds in our favor. And that's what makes this not gambling. 'Cause in gambling at a slot machine, there is nothing you can do,
at least that I'm aware of, unless you hack the slot machine somehow, there's nothing you can do
to tilt things in your favor. There is nothing you can do to just, pretty much rig the system. And we're not rigging the stock market, because as I just said, it's not perfect, but that's almost kind
of what you're doing. We are trying to rig a trade as much in our favor as possible,
and in the world of gambling, you definitely can't rig
stuff. If you do, you end up with broken kneecaps in the back alley. But in trading, and this is
why trading is not gambling, you can quote unquote
rig things in your favor, and that's what we're trying to do. So as traders, what do
we need to focus on? Well, the first part is we
just need a trade plan, right? I mean, if you're
traveling to a destination, you're gonna wanna have a plan
of how you wanna get there. The same is true when trading. And maybe this seems obvious, but I've been doing this since 2013, coaching traders and guiding traders. And when I got started
and I look back at it, I mean, I definitely was
putting money into the market, and if I'm honest with
myself, I had no idea what I was doing, it
was just, it was truly a random gamble, because I was not trying to rig anything in my
favor, I was not trying to tilt the odds in my favor at all. I just came up with a very surface, surface deep quote unquote plan. Oh, I think this is gonna go up. Okay, that's great. And, but there was no
really thought behind it. So a trade plan though,
definitely something you need. And the way I envision it,
is it's like a big triangle. And like any structure, you
need to have a big base, and that's what we're
gonna be focusing on, a big, sturdy foundation. I mean, you don't have to
be a structural engineer to understand that if you build a structure either on a bad foundation or just a poorly built
foundation regardless, yeah, I mean you might
still be able to build, it might still give you
the quote unquote result in the very near term, but as
far as long-lasting results, yeah, it's not gonna be long before that whole structure
tips over and blows up, and it's just not gonna be a pretty scene. The same here is true with a trade plan. We want our foundation, we want the base of our trade plan to be as
sturdy and firm as possible. In the world of trading,
that's where we need to figure out context, or in
other words bullish or bearish. And what are your thoughts going in? Why are you feeling the way you are? Is it valid that you're
feeling the way you are? And when you can establish
some good, firm context, some good logical context, like I said, does it guarantee success? No, it doesn't guarantee success. But, are you rigging
things, are you tilting odds in your favor, you absolutely are. So how does this work, how are we gonna tilt things in our favor? Well we need some sort of average. And an average is helpful
because it's given as a baseline to measure
certain components. So what do I mean by that? Well, when you can look at a stock. When you're lookin' to
find stocks to trade and you're saying oh wow, that
stock, that's interesting. Well what makes it interesting? Well because if you use this baseline, if you use this average that
I'm gonna tell you about, it's gonna really, as you'll see, seem almost too easy. And you're, oh yeah, anybody can do that. And it's really true, but
it's one of those things that almost hides in plain sight. What are we gonna use
though for our baseline, for our average? The SPY. Now if you're a brand new trader and if you're a beginner
just getting started, the SPY, without going
into too many details, is just an ETF, and
that ETF tells you what the markets as a whole are doing. It's measuring the S&P 500, so if the SPY is having a good day,
then you could go up there and tell your friends and family, hey, the markets had a good day today. If the SPY was really down on the day, you could tell your friends and family, oh wow yeah, the markets had a bad day. So that's all it's doin'. It's essentially tellin' you what the overall markets are doing. And we're gonna use that as, like I said, our baseline. Meaning, if you're out there
and like I said earlier in the video, I will
take you to the desktop. So right now yes, I'm just kind of talking at the chalkboard in
theory, but you'll see how this plays out here in just a few minutes. But if you're out there running some scans and just, and when I say scans, you'll see very, very basic stuff. And you notice a stock,
and it is actually above where the SPY is, then you could say, well wow, that stock's relatively strong. So in the example you're about to see, the SPDR, or the SPY was down 2%. So if you see something that's, well, actually up on the day, well that would be above average, right? Because if the average for the morning, which, like I said, little spoiler, that's what you're gonna see,
the markets were down 2%. So something is actually up on the day. Well compared to the SPY, compared to the overall markets, well
that's relatively strong. Meaning, that's a situation
where you'd wanna be bullish. You would be thinkin',
oh okay, that's an area where I'd maybe wanna buy that stock, or in trading jargon, go long, the stock. On the flip side, if there
are stocks out there, and they are actually
below what the SPY is, that's a situation where you would call them relatively weak. Relatively weak compared to what? Again, that's where we need our baseline. Compared to the overall markets. Which, and we are defining and we're using the SPY to define the overall markets. So when you locate a stock
that's relatively weak compared to the overall markets,
meaning it's actually weaker than the market as a
whole, that's a situation where you would wanna be from
a context standpoint, bearish. You'd be lookin' to maybe sell. You'd be maybe lookin' to go short. So that's the overall premise here. Find the baseline. For our baseline, we're using SPY because that just tells you
what the overall markets are doing, and then you're starting to figure out by just simply looking at percentages as you're about to see, what's relatively strong
and what's relatively weak. So at this point, let's go to my desktop and you'll see how this all plays out. Welcome to my desktop,
so as we just discussed at the chalkboard, we first need to figure out the baseline,
what is the average? And as of the recording, this
is all actually happening. So this is, it is what it is right now and things are dynamic, things are currently changing around. But as of the moment,
the average right here, is the SPY. So the overall markets are down 2.1%. So that's the average is,
it's rough morning out there, it's a bearish morning out there. So let's just try to figure
out what's above average and what's below average, and
that is gonna help determine at a very surface level,
whether things are strong, whether things are weak,
and it can help us put us in the right mindset, the right context of whether you should be looking to buy and go long, or sell and go short. So over here, and this is why I like the platform, and this is nothing. All platforms have
something similar to this, but just a way to set up
and see what's out there. What's, and my platform, Lightspeed, calls it risers and fallers. But the idea here is we're the
gap ups, we're the gap downs. So this scanner on your platform may be called gaps, gappers, like I said. In this situation it's
called risers and fallers. But these are stocks that
are getting volume out there and are seeing quite a bit of movement, but the key dynamic here that
can really just help make this a very, very fast process, is this column right here where it gives the percentage, right? Because that's what we need to use in order to figure out,
are things above average, are things below average? And again, what is our current average? Well right here around the 2% mark. So right off the get-go, you can see that, all right, well
these stocks over here will definitely be above average. In fact beyond, above average. So beyond is very, very strong compared to the overall market. I mean, the market's down
2.2%, beyond right now is up. Just shy of 12%. So in other words, looking like today, beyond's not gonna really care that much about what the market's doing. Now of course, just to
continue to reiterate, I'm not saying this is a universal. I mean, there's no gray area. This is how it, no,
there's always gray area. I mean, yeah, maybe the
market ultimately does start to affect beyond. But as of right now, as
far as just like I said, establishing some context and putting you in the mindset that
where you would wanna be, beyond seems to not even care
what the market is doing. Same with Netflix, look right there. Netflix is up 1%. So is Netflix up a lot? 1%, not really. But, relative to, compared to the markets, Netflix would be relatively strong. It is above average. So when it is above average in terms of the market being down, that being up. That would be something where, if you're going into the
day right now thinking, you know what, I think
wanna short Netflix, I would say uh, you can never
say that it won't work out, but are you really putting all the odds, all the probabilities into your favor? Not really, because Netflix
is relatively strong compared to the market. MRNA right here, if you were to tell me, yeah,
I'm looking to short MRNA. I would quickly say, wait a second, the markets are actually down 2% trying to drag stocks down with it,
yet you wanna short something that's actually proven to be stronger than the overall markets? Again, could you make money? Yeah, I mean you could make money, but are you trading in a systematic? Are you trading and putting all, as much in your favor as possible? No, you're not. And big picture wise, that's
gonna be a very difficult way to make consistent money. On the flip side, if you're saying, oh, look at this, Boeing. So Boeing, ticker BA,
is actually down 4.4%, and the markets are only down 2%. That means Boeing is even
weaker than the overall markets. So if you were to tell
me, yeah, I wanna buy, I wanna go long, I would
say whoa well wait a second, why are you looking to go long? Why are you looking to buy a stock that is apparently very, very weak. I mean it's not even in
line, it's actually worse off than the market is,
so this is a situation where if you were to say no, I'm bearish, I would wanna short Boeing, I think Boeing has a setup, the overall
context is bearish, therefore I would be looking
to potentially short out, say, hey, you know what,
that makes really good sense 'cause Boeing is relatively
weak compared to the market. Market down 2%, Boeing actually down 4%. You look right here, Apple. So what's going on with Apple? Apple is down 1.8%. So in this situation, they
are basically the same. Meaning I would expect
Apple to move pretty much with whatever direction the SPY is moving, that's probably what
Apple is gonna be doing. It looks like these ones would probably be mimicking each other,
so I don't really see any sort of advantage you could gain. Now the disadvantage you could gain is to sit here and say,
yeah, I wanna go long Apple. Based on what? You have nothing in your favor that would make you wanna buy. Now if you say, I'd
like to go short Apple, that makes sense at
least because the markets are down, so it's a bearish
environment out there. Apple is down, so it's bearish. But you can't really say that
Apple is the same as Boeing, 'cause, whoops, Boeing is
relatively weak compared to the market, whereas
Apple is just right in line. So hopefully that makes sense. Do you see the difference? Hopefully you do. I mean, 4% is bigger than 2%, whereas 1.9 and basically 2%, Apple and the markets are basically saying,
let's see what's going on. So CVX, again, CVX down 3.6%. So this is a situation where all right, CVX is relatively weak
compared to the market. So in this situation,
if you were to throw CVX on a watch list pre-market
that was possible shorts, we'll just call it your possible shorts, meaning you're looking to make
money when prices go down, then okay, I would say that makes sense. CVX is relatively weak compared to the market, so you're
gaining some advantage in regard to that. Now some other things, such as WATT here. Well actually, let me bring that up. So WATT, you can see it's basically a micro cap, so we're talkin'
a five sub-dollar stock. It does, I always rule these ones out, because these just, they
have a mind of their own, same with penny stocks. So a penny stock, penny stocks don't care what the overall market is doing, okay? So you can't really sit
here and use this for that because, they just don't care. So there's some of these situations where it's just flat-out, so again, right here. CYCC, let's click on that one. So here again, we're
talking about some micro cap where it's not even $10 a share. So huge, down 27%. So, yes it's way, way, way weaker compared to the market, but because of that, I mean, you really wanna, it
just doesn't really matter. There is just not much
there to, I'm not gonna say it's totally worthless, but when you get into the micro cap range, that's kind of a market in and of itself
and it doesn't really care what the main market is doing. So this all applies to more so than any of you have gone through, right, Beyond, Netflix, MRNA, not a well-known company at the time of this video,
'cause they're a pharmaceutical, they've been gettin' a lot of press. But Boeing, right? Apple, CVX, I mean those are
good, solid regular companies, so that is what it applies to. But at this point in time, like I said, Boeing definitely relatively
strong compared to the market. Netflix, strong compared to the market. Not as much, but I mean
still definitely strong. Markets, down 2%. Netflix up 1%. And, so just go through there and that's how you can establish some quick context. That's how you can build some watch lists that, like I said, don't guarantee profit. And like I started off this whole video, I wanna reiterate here, I am not saying that just because something
is relatively weak compared to the market or relatively strong, that means you just go
and blindly short it, or you go and blindly buy it. I really wish trading was that easy. And I wish I could sit here and say that this is the holy grail of trading and that that's all it
takes, is you just identify a couple of percentages. Was that percentage bigger
or lower than that one? And there you go, no there's more to it. But as traders, this is where we want, this is why it's not gambling. This is how you make it not gambling, 'cause we wanna tilt as many things in our favor as possible, and this is one of those situations where you can tilt and just make sure you're puttin' yourself in the right arena where you should be. Is it a guaranteed arena? No, nothing's guaranteed,
but is it an arena, is it an area that can at least put some pressure in your favor? Absolutely. So this morning, as of the video, I'm gonna be very interested in looking at a potentially short VA, looking at a potentially short CVX. I'm gonna be very interested in potentially going long beyond. Very interested in
potentially going long NFLX, and MRNA for the reasons discussed. And Apple, don't really care
about it 'cause like I said, it's basically right in
line with the market. But Boeing and CVX,
definitely very interesting. Microsoft is, it's, I don't know. That's kinda one of
those gray territories, it's down 1.4%. The markets are down 2%, so you could say, well actually, it's
relatively strong compared to the market kind of,
but it is still right in the same ballpark,
so that's where there's a little give and take there in terms of, when is it pretty much
the same or when is it not? But like I said, there's
not any debate here. That's very clear, 4% is
a good chunk above 2%. CVX, 3.6, a good chunk above 2%. And then of course, I
mean not even close here, we're talking 11% compared to 2%. At that point, it's very clear. But like I said, for me, and this morning on my short side watch list, Boeing for sure is gonna be on it. CVX for sure gonna be on it. And then as far as the long watch list potentially going long, BYND, Netflix, and then MRNA,
so hopefully this helps. Let's go back to the chalkboard. See, I told you, nothing
complicated at all as a quick, quick, recap. A quick, quick disclaimer. Please don't go out there and say, oh wow, that stock's relatively weak and then just blindly buy right away. There is more that goes into a trade plan than what you just learned
about and what you learned to identify, so please
don't do that, okay? I mean you're welcome to do
that, but just promise me you're not gonna come back and
say, Clay, you scammed me. No, I'm not saying that that's the only thing you have to do. All I'm saying is that'll give you that good, think back to the triangle, a good, firm, solid
foundation which is the goal. So hopefully that helps,
hopefully that will inspire you to maybe just realize, oh
yeah, maybe this trading thing doesn't need to be as complicated as what I thought it would be. Yes, there are more things
that go into a trade plan, and I'd love to help you and guide you in building the entire trade plan, but if you just get that
good, firm, solid foundation, at least you know you're on the right path and you're not putting
yourself in a situation where you're thinking you should be buying a stock that's in all actuality,
relatively weak compared to the market, which just
doesn't make any sense. So like I said, hopefully
that can help you out and get you started in
the right direction. Now if you did enjoy this video, then please hit that Like button and also in the comments section, I'm curious, I did the chalkboard here, and for you longer-time viewers, I'm sure you've seen that
usually the chalkboard is me standing in front,
and I'm on camera, but what do you think about this video where I wasn't on camera? Do you enjoy these, do you prefer when I'm on camera, maybe you just don't care, either is fine. And, so I'm curious though
in the comments section, any feedback is always welcome, or if you have any
suggestions for future videos, I'd love to hear from the
comments section below. But just as a whole, if
you enjoyed this video, if you would like for me to keep making these sorts of videos, then the easiest and quickest way to communicate that to me is just to hit that Like button. And I also hope you, I encourage you to check out the rest of the channel, and hopefully you decide
to ultimately subscribe. And then I mentioned at the
very beginning of the video, I showed results and made a comment about, these are members of
the community and all that. So if you're interested in learning more about the community that I
offer, you can learn more about that at ClayTrader.com/team. So thank you for watching, and yeah, get out there. Don't over-simplify the process, but remember, you don't need
to over-complicate it either. First off, thanks so much for
watchin' the entire video. Real quick, before you
go, I wanna invite you to a life webinar, web
class, training, workshop, online event, whatever you wanna call it. But it will be me live revealing to you what I have discovered that has allowed me to transform myself from being an employee to being my own boss,
including how I had only one losing day out of 73 days in total. I'm going to cover three
keys that have helped me unlock profitable consistency
within the markets. The first key is super weird, but in a productive type of way. The second key is super awesome because it quite literally is wired
into our DNA as humans, making it very easy to use. But in a cruel way, this becomes
a pitfall for many traders. I'll explain it all though, including how to avoid the pitfall
that it creates for some. And yeah, the third key when you hear it, sounds way too good to
be true, but it's not. And I'll show you how it all works. Then at the end, I open
it up for a question and answer session that
is, again, totally live. Even if you can't make the live session, please still sign up
as it will be recorded, and you can go back and watch the replay that I will send you. Click the image on the screen or click the link down in the description box so you can get the date and
time and claim your spot, which I should note is limited due to the fact that this
truly is a live event. If you have any questions, let me know, if not, I'll be seeing you soon.
