How to Be WRONG But STILL Make $$$ Trading!

hey guys Jared Wesley here of live Traders and it is that time of the week it's lecture time this week guys we're going to talk about the importance of relative strength but not just relative strength how to handle any Market condition at any time right the market isn't always going up it isn't always going down sometimes it goes sideways in a wide range sometimes it goes sideways in a narrow range but you need to to be a professional you need to know how to make money in just about any Market environment there are a few areas where you might want to sit on hands and do nothing or just not trade that day because it's too difficult or challenging or the Market's not good but most 90 plus perc of the time you should be able to make money or take money from the markets so today's topic is basically how to make money in all market conditions and we're going to talk about relative strength as one way you can do that um other ways are following the market as well um but again there's a few different ways that we can do it so we're going to talk about that today guys it's for me I've Done 3 to 500 lectures this is one of the most powerful lectures uh that I've ever taught I'm not saying that so you'll watch it I'm simply saying it because in the 20 years I've been trading relative strength is the single most important thing that I use outside of money management right you have to have money management stop losses proper money me that that aside relative strength and weakness knowing market conditions is the single most important thing I use to be a successful Trader all right if you like these videos please click that like button smash Hammer that subscribe button I'm Jared Wesley of live Traders let's go let's get to [Music] it this week's lecture topic is the importance of relative strength you're like gez Jared we've covered relative strength we have covered relative strength uh We've covered it quite a few times over the years uh for me uh you can never get too much of this uh and I don't mean relative strength I mean talking about relative strength because it is one of the single most important factors to successful trading that there is and the reason that is the case is because it gives you flexibility okay when you are a market Trader guess what you have to be really good at reading the market all the time and if the market throws you a kink or a curve that you're not expecting you're screwed okay if a news report comes out and all of a sudden bam it rips you're screwed uh if the market gaps down you have a a strong bearish bias but for whatever reason the market goes out you're screwed okay but if you can learn genuine real true relative strength and relative weakness then you can trade in any Market at any time and still make money and this also includes markets that do nothing right we've seen here in the last couple months we've had some markets that are extremely narrow range like $2 a day a120 a day on the Spy how do you make money when the Spy doesn't move when 60 to 70% of stocks move with the market well it's really hard isn't it it's hard to get follow through it's hard to get anything but we all know it we've all seen it like today what was it vnd or something like that there's always a few stocks that just go crazy and they don't care what the Market's doing that's what you're after every day okay will you find that stock every day maybe not but if you can find a stock that has some relative strength it's going to give you way more flexibility because now you don't have to be so precise with your Market bias okay so that's today's topic and um hopefully uh you guys will learn something from it again I've added some new slides to it I don't think I've done this exact lecture for at least a couple years so it's been a while um before I do I'm going to rehash uh and this is a difficult one okay even for me to read when I was looking at this lecture yesterday um this was a difficult one I'm going to rehash a when will the insanity stop because I think it's one of those that's so profound that you really need to take this stuff to heart you really need to be careful uh you know we joke and we talk and we say all these things all the time but one of the things that we don't maybe talk about enough or get serious enough enough is just how serious this business is just how impactful this business is good or bad I'm not joking it when I say this it's not a haha moment when you read the next thing and some of you may remember it from the last time we talked about it a couple years ago but this is a when will the insanity stop that just it borderline makes you want to cry you know what I mean like you sit at this and you say how I lost four years Savings in a month through op option trading I'm a man near 40 with a really good wife and two lovely kids I have a job earning 120 Grand a year and after saving up for four years I have $450,000 in the bank okay ready for a new house as we plan to move in the beginning of 2023 I had some Finance background and knowledge though never traded a stock at scale before I feel really sad and disappointed with myself right now and I hope that sharing it here might help me to ease the mental distress basically by the end of today the account was 61 Grand from 450 this is somebody who that's probably their life savings they have a wife and two kids at 40 and they were going to buy a house with that money so the $390,000 that person lost was a big big deal it's a big deal to anybody but if that's everything you have okay I don't care about how it started and why and what I don't give a [ __ ] the fact that this person did this is just sad and to say I'm so so sad right now um we look at these and don't get me wrong to be honest every once in a while you know we we have a good laugh right every once in a while we have a good laugh um but this there are times when it's not a laughing moment um and this is somebody's life we're talking about now I fully understand and appreciate that this is this person's fault I get that but this is serious serious stuff and there's people right now listening in the background cuz you know 80% of the people in here don't type a damn thing it's your loss by the way you're you've experienced some of this some of the people not typing have been here maybe not to this extreme level but you've been here and maybe that's why you sought us out I don't know but this is a no joke business either get your [ __ ] together or just don't do it that's it this isn't like hey you know I want to start a lemonade stand and if it doesn't work I might lose a couple Grand or hey my boss fired me today no this is my boss fired me and went into my bank account and took all my money it's like that okay if you're not careful okay um it's just some of these are funny and some of them are sad and some of them are in between I just think it's sad you see somebody doing well in life 40 years old wife kid 450 Grand saved up that's that's you're doing it right okay if you're at that point in life and you have nearly half a million dollars saved up at 40 you're doing something right and in one month you pissed it all away okay all way sad all right let's move past the sadness and start talking about things that are less sad and yes Amazon just hit Target um so nice job all right hold on one second let me type that in Amazon hit second target all right what is relative strength and relative weakness guys when a stock is showing little to no correlation to the direction of the market or is much stronger or weaker than the market we consider it on its own page I.E the market will have little to no effect on how the stock trades this can manif manifest itself in being much stronger than or weaker than the market um we've all seen them every day now sometimes that can be hidden meaning sometimes a stock like vnd that in my opinion that stock was going to do whatever it did today no matter what no matter what the market did today that stock was going to do what it did today the market just happened to go higher and that stock also went higher but if the market went lower it it wasn't going to matter right um on a given day very few stocks exhibit these qualities it's true you know we look at thousands of stocks we dwindle those thousands down to maybe our 10 or 12 or 15 ideas and those 10 or 12 or 15 ideas go down to about three or four favorites and we're hopeful but not guaranteed that one or two of those favorites will turn into an extreme strength or weakness stock uh and if you guys notice it's pretty much all I trade I'm wrong sometimes of course I'm a human being uh the only perfect person in this world is my wife um ask her she'll tell you um but other than that you're going to be wrong sometimes but my entire goal every single morning is to find the strongest or weakest stock in the market that's it that's all I do and then after I find it I hope it will give me a pattern that I can trade it I'm going to repeat what I just said silly and simple but very important when I wake up in the morning and I build my Gap list and I dwindle it down to my favorites list my goal is to find what I believe will be the strongest or weakest St stock today all right then I'm hopeful that that strongest or weakest stock will give me some form of a pattern so I can enter it and profit from it that's it okay occasionally stocks that initially show strength will sometimes lose this attribute it happens all the time and this is why Discerning relative strength or weakness at 9:33 or 9:35 in the morning is a challenging thing to do so what we have is a conundrum like well what do you mean let me explain the conundrum we have is finding a relative strength or weakness stock late enough that we know it has relative strength or weakness yet early enough that it still has range left does that make sense we need to find it late enough that we know it has strength or weakness that it's not a fake out but we need to find it early enough that it hasn't blown its load that it still has range left in it okay so when you think about it it's a challenging thing to do it's not an easy thing to do sure we can sometimes get lucky like taking mea or Microsoft the last couple days I was in those at 9:34 9:35 that's early to discern strength or weakness and I ended up being right about it but that was taking a chance that was really aggressive taking them that early so you have to be very careful I agree uh Brian uh someone's saying you know 9:45 to 1015 is the window sweet spot I agree and I think earlier 945 to 955 uh is The Sweet Spot a lot of Stocks by the first 45 minutes to an hour um they've you know they've done everything they're going to do or 80% of what they're going to do so why is all this important stocks that have relative strength or weakness provide us with a much with much more FX flexibility I we don't have to make a perfect call Market call in order for our trade to work most stocks move with the market so if we're not extremely accurate with our Market call there's a good chance the trade we are in won't work it's true right so relative strength and weakness allows us to overcome an error in Market bias it allows us to have some margin if you will right uh it provide there it is it provides a margin of error um our odds are already very small so anything to help increase them is powerful it's the truth you guys have heard me say this before and I'll repeat it there are five major market conditions there's extreme strength there is normal strength there is a wishy-washy sideways Market there is normal weakness and there's extreme weakness see when you find a stock that has relative strength or weakness there's really only one market condition that can hurt you if you have extreme relative strength the only Market condition that can hurt you is Extreme relative is extreme weakness in the market the other four don't matter right three of them probably help you one of them holds you back a little and maybe the fifth one the last one is the only one that might actually stop your trade out okay um so when you think of it in that respect finding strength or weakness is probably the single most important thing you do as a Trader because it gives gives you about an 80% chance that that trade's going to work unless the stock magically does something unusual or a news report comes out and puts a kink in everything but assuming no Black Swan event happens you're about an 80% chance of getting a winning trade if you have genuine strength or weakness in the stock that you've picked okay for me it's probably the single Mo you notice I in here I put is one of the single most powerful I it might be the single most powerful concept like if if you were ever going to take a trade with no pattern make it be a relative strength or relative weakness trade okay now I don't recommend that I think trying to take a a trade um randomly with no pattern is dumb you should take a strength or weakness trade with a pattern okay but at the same time you could probably get away with it without a pattern now one last caveat before I move on you really shouldn't be trying to go against the market does that make sense like if you have a strong bearish bias and there's a good chance you're going to be right on that bias I don't know if I'd make a habit out of of going long in in a market that's almost definitely going to go lower right try your best to go with the market but at least if you have strength or weakness you have a lot more flexibility to do that so here is an example this is UPS a trade I took the other day sadly it hit first Target and just barely missed second Target and tagged us at break even for the back right UPS showed great relative strength on the breakout it hit first Target but then came back and trailed out at break even still got three grand from it full winner would have been 7500 so when you look at this holy [ __ ] right look at the Spy why spy because this is a New York Stock it's on the one minute the Spy is UPS is on the one minute look at the the market at about 950 the market just absolutely [ __ ] the bed okay what happened at 945 in UPS oh my gosh rips and this was our entry on UPS 14513 all right and I apologize because you can't quite see the p&l in there but you'll just have to trust me it was 3,100 bucks um this is a stock that is on its own page now some people might look at the daily and go oh that's tough I don't look at it as tough because this is a puke out bar on volume this is going to set the low for a while while the next day is likely going to be a more of a narrow range day I also don't expect the next day to puke out right after this type of bar on that type of volume sitting on support sitting on support I don't expect this stock to puke out so while it is an inside day I'm expecting the inside day to be a little bit higher but I did need some confirmation and in this case the markets opened and kind of went flat for a little UPS showed strength the market start to pull back ups starts to rip and you're like whoa this is duh no-brainer so we took it half ups at 145 half at 14525 we used a wide stop yaroslav we used a wide stop what we didn't use was 14450 we used under 144 or 14375 I don't know why there's not an arrow there I apologize okay now could you have gotten away with 14450 yeah because it just ripped right and you would have hit Target and I only got first Target so this would have been a scenario where the tight stop actually did better right it would have because if you had let's call it a 65 Cent stop you needed a $130 that's 14630 and it hit that okay point though is the relative strength that this stock exhibited this is impressive impressive strength it says two minutes should be one minute okay um but doesn't a stock more than just occasionally lose its relative strength actually seems like uh it does happen but but Jeff it goes back to my point this is why taking them later is better because then you're going to get a clearer idea and understanding of whether or not that stock has genuine strength or is it just 5 minute relative strength and we're in and all of a sudden it loses that strength right so this one happened at 940 45 um that gave us 15 minutes to to have a better understanding of what this stock was really doing versus 9:34 in the morning which I'm guilty of taking at times all right so then you take a look at this all right this is good relative strength why this is right out of the textbook and you know the book I'm talking about what makes this such good relative strength well look at the market the market gaps down but where does it gap down to gaps down to support right we gaap down from like 21 all the way down to like 2011 that's like a $10 Gap in the market down to support and as the market gaps down this this stock is gapping over a red bar over a topping tail and over a pivot with room to go from 1850 to 2050 you don't get much better relative strength in this right you don't get much better relative strength than that then on top of this incredible relative strength what happens you get a perfect three bar play $1850 by $18 nowadays I'd probably give it more room this is perfection personified like they just don't get I mean that's one you you etch that one into your brain you blow this one up poster size it you know take that picture of Pamela Anderson down wow I'm dating myself showing my age right for the young kids out there take that picture of Taylor Swift down and you put up this on your wall right take that picture of that McLaren on your wall and put this on your wall perfect patterns rarely fail that is true R love right good you've been reading the textbook I like it and Jordan you're also correct we can only make uh decisions based off the information that we currently have and if the information we currently have suggests we should take the trade we take the trade if it suggest we should wait we wait that's all we can do you're never going to be 100% certain that's an imposs possibility right the only person that's right 100% of the time is my wife we've been over this and I'm not her okay so when you look at this this is literally no exaggeration this is your goal every time you wake up in the morning every day you wake up Monday to Friday to go trade this is your goal find a stock that's showing you insane strength to the market insane strength and a market that has a bias that might be long because it's a mega Gap into support Mega Gap into support you're probably going to get a bounce and you already have a stock showing crazy strength and it gives you a pattern no brainer no brainer that is it okay so this is the market how do you trade this market right so we are in a downtrend right lower high lower low lower high kind of higher low lower low lower high lower low lower high lower low we're kind of in a bit of a Down But as we get down to this area here we start to kind of double bottom a little bit of support here little bit of resistance here so say what's your bias going to be what's your bias going to be this is one of those [ __ ] days let's just call it what it is let's not act like we're Nostradamus let's not act like that cuz we're not this is a day you wake up and you're like go back to bed go back to bed right it's one of those range days exactly you sit there and you're like well Jeepers granted it's a pretty big range 395 to 405 you know we used to get those ranges that's you know when trading get hitting big targets was easier right we don't when is the last time we had a $10 range in the Spy it happens it's just not very common take a look at this here is a $10 range on this day here is a $10 range on this day here is a $10 range this is three days in a row four days in a row with A10 to $15 range on the Spy we literally had a dollar range the other day on the Spy I'm not kidding we had a dollar range we're getting 10 and $15 ranges on the Spy but either way that that's not neither here nor there okay I'm looking at this and I'm going damn I'm not really sure I don't know could go lower under 395 maybe we break 405 maybe we're gapping right to 400 I'm stuck so what do you do how do you trade this Market that literally opened at 400 went up to 404 and then sells off this is a ship boox Market all over the place market you have to find some relative strength you have to do something yeah yesterday was a $150 and I'm showing you literally on this page right here the Spy five days in a row doing $10 to $15 in range five days in a row okay things have changed a little bit but nonetheless you're going to have to find something on its own page right y 100% you're going to have to you don't have a choice okay now this did a bit more range but imagine it's a one or $2 range or $3 range okay so what do you do this is the Market from those days let's go back let's go back you can see 511 right there May 11th right here May 11th okay right there now we go to this chart relative strength but Market direction is tough so you take a look at IBM all right and this is the market off the open and then the market bounced you know what the market also did after this bounce sold off to 396 later in the day but what did IBM have off the open the market went up for a couple bars pulled back below the low of the day IBM boun bounced a few bars but pulled back about 60 70% the market broke the low of the day IBM held the low of the day and it has more support down here at 12950 okay so you look to take this buys now why why and why again okay because this is pulling back to 396 the stock is showing relative strength but let's go back let's go back back where is this line where is the line 395 is 395 is is the support area where we have a bottoming tail bounce bottoming tail bounce and then today on the 11th hold on there is the market right there so we already know two previous days the market went to 395 in bounce so now the SP it goes down to 396 you're thinking well it's probably going to have some type of a bounce how big I don't know but if I can find a stock that's showing relative strength and a pattern that's key I'm going to take it so the aggressive part here is trying to discern proper relative strength 5 to 10 minutes into the market day it's easy to determine relative strength between 945 and 10:30 but sometimes the move is already gone it's a difficult balance at times if you're unsure it's always better to wait but look bottoming tail green bar bottoming tail bottoming tail the buyers are stepping up here we got in at 13.85 and rode it all the way up right this is a couple2 $3,000 trade all right but how and why did it happen it happened because the Spy was near support where it bounced twice before previous two days it bounced at 395 396 the we were looking at not only showed strength to the market it also had a pattern that's it check check check check check check check check check that's what you do every day that's your job and your goal every single day okay let's keep going what do we have spy gaps up pulls back but note while the Spy is pulling back GM is going higher so we have one 2 3 4 5 six bars to start the day basically one is green the first bar of the day is a topping tail second bar is green then red red red GM green green green green little topping tail basically all green GM consolidates was this a little bit aggressive yes a little bit aggressive it's happening at freaking 9:38 in the morning 1 2 3 4 5 6 7 8 yeah 9:38 in the morning but it does have relative strength to the market the market is leaving a little bottoming tail so what would be the only thing that would stop out General Motors the only thing that would stop this out is a market collapse a market that just drops to 392 right let's just say the bottoming tail fails and we just die then GM probably wouldn't work but it didn't it left the bottoming tail and it bounced and GM just went higher all damn day relative strength $2500 trade okay so it's possible because of the Gap up in the market we probably have a bullish bias so pullbacks are likely buyable we also have a stock showing extreme strength to the market in the first seven or eight minutes of the day and we have a bit of a pattern done let's do it again okay now this one you're thinking to yourself I don't know but once you see the daily you're like yep okay so what I want you to focus on right now is over here okay this is $8.50 stop loss is here you can add here and Etc and so forth there's two entries on this and you're looking at this and going wait the one minute spy gapped up and sold off this stock gapped down and it's going sideways first some of you are going chair this is nuts are you kidding me but wait a second how do you feel now how do you feel now take a look at the daily chart has do you have a different opinion now we have a stock that has dropped from 25 to 8 and it did so after 1 2 3 4 5 6 7 8 9 10 11 12 13 red bars this was a wide range Ending bar but that wasn't enough that wasn't enough it gapped down all the way to here hello right hello it this red bar wasn't enough after you know 19 red bars in a row gaps down novice Gap novice Gap okay you look at it and you're like bamn okay the odds this thing goes significantly lower this Stock's on its own page this is a stock that just doesn't give a [ __ ] about the market does not care I don't even really need to look at the market on this I'm going to repeat that because these are unique situations I don't even really need to look at the market this stock is so on its own page it's not even funny it's not even funny the market dropped $4 and this thing went higher think about what I just said the market tanked stock went higher because it's not about the market on the stock it's about the daily chart and that's a novice gap down right out of the textbook right out of the textbook Jeff you have to take the bigger picture approach here what I mean by by this is stop uh bracketing things into such minutia I'm not just looking at a stock and going oh 8 minutes into the day is that enough I'm looking at the Gap I'm looking at the pre-market I'm looking at the market in the pre-market I'm looking at the pre-market pattern of the stock I'm looking at every possible angle I can get to find out is this enough information to say yes I have enough relative strength at 934 944 10:04 I'm looking at everything everything I have available to me all right so yeah I agree you can't look at trading absolutes yes 8 minutes and 42 seconds is the exact number after that then relative strength is valid but 8 minutes and 41 seconds it's not valid you can't do that in trading it doesn't work like that and if it did we wouldn't need stop losses so there's the continuation right and this stock by the way right today you traded it over here ripped and then it just continued up now this is wait for it the next day right so you take a look at this over here okay this is May 10th May 10th we're taking this stock long there's the p&l over here May 10th okay 2500 bucks why novice gaps that usually sets sets the low for a while that usually sets the low so wait what do we do we keep it on our carryover list we traded it yesterday but it's a novice Gap and novice gaps usually set the low for a while so bam what do we get the next day this stock moving up I should have put it on here right I should have put it on here and there it is we get a little you know four five bar play four bar play right there now 975 by 950 rip and there you go another 2,000 bucks back to back days we traded it because the daily chart said don't forget about me right little Simple Minds Breakfast Club don't forget about me okay so how do you trade this this is the spy on the 60 this is the spy on the five this is dog [ __ ] okay this is dog [ __ ] garbage crap what do you do with this the answer is nothing or find relative strength nothing or find relative strength that's it you're either going to wait till this thing breaks resistance over here 404 405 or you're going to find something that is like like bhc and owned its own page right like this stock like completely doesn't care about the market it's the only way you're able to trade this Market guys I don't think you understand how powerful this is I'm not joking with you I can take 20 years of trading experience and Whittle it down to the lecture I'm giving today on relative strength and maybe the lecture I did on where ATR is happening a week or two ago not joking with you I can literally take 20 years of trading and dwiddle it down to these two lectures do I think you should always have a pattern yes and if you'll note all the relative strength trades you seen in this lecture all have patterns but if you want to just close your eyes and never take a pattern you better might as well do it with relative strength or relative weakness at least you have a fighting chance it's that important it's that important I don't ever want to take a trade that doesn't have relative strength or weakness not ever okay here's an example of oxy gapping up showing strength to the market of course I don't have the market on here I think it's on another slide okay Wide Bar couple narrow bars rip okay Apple I think it's important part in Rel is that you have to know whether or not the stock itself is a high beta yeah that's true I agree um it certainly is usually pretty easy like when you look at bhc that's a noname nothing stock Apple well that's a that's a high beta stock right so when you start looking at things start looking well these stocks typically are highly correlated with the market and today they're not we do this all the time I would say the most frequently traded stock of the Year for me is meta when meta shows me a special kind of strength or weakness to the market I'm all over it because it's unusual it's a stock that frequently trades with the market so it can be easier and harder when a stock that is typically correlated to the market shows relative strength why it's easier because it's obvious to see right it's easy because it's obvious to see however sometimes the market can still drag them down in this case if the market tanked Apple would not have worked so we still need to be careful with relative strength and relative weakness especially on stocks that are traditionally highly correlated to the market which is kind of what Jordan is saying right we're gonna have to have Jordan teach these lectures at some point okay make his family proud um Apple here at 139 is a nice breakout and you can see the strength it exhibited red red red red in the Spy green and sideways bullish on Apple then the market pops spy pops but this is an example this is an example of where if the market tanked Apple would have tanked and it wouldn't have worked this is an example of that this is not bhc bhc doesn't give a [ __ ] what the market does the market could have lost $12 and B HC was going higher it was on its own no if aner butts Apple's not that way while Apple can show great strength there is still a level of correlation to the market that you have to respect gosh I hope you guys are listening man I'm sitting here and I know it sounds arrogant but I'm spitting out gems diamond is coming out of my mouth today all right and I know it sounds super arrogant but I'm telling you over the years of experience these are the things I come back to every single day every day if I could just have one or two things I'd want to know the relative strength or weakness of the stock and the ATR of the stock that's it give me those two things and I'm going to have a pretty high accuracy that's it so let's get back to the thing initial weakness in the market right initial weakness for the first I don't know 20 minutes of the day right the first four bars the Market's weak bounces retest and then bounces for the rest of the day this wasn't that long ago this was a week or two ago Okay so why am i showing you this because this is what you have to discern in the market we're comparing the stocks that we're looking at to this to the market so everything you do is compared to this you know we always say in life compared to what you're a great tennis player compared to who compared to what well all stocks are compared to the market and the market is the q's the Spire the iwm okay so you take a look at this and then take a look at goo like hm okay okay wait let's go back let's go back this is the market this is the market gap down looking lower gap down looking lower goog Gap up looking higher that's relative strength Gap up looking higher so we chose to take this trade right I chose to take it 15080 why these bottoming tailes and relative strength sold me is this the world's best pattern heck no it's a very mediocre pattern but the bottoming tail sold me and the relative strength sold me and note faves Apple 172 goog over 151 it was already on the favorites list favorites list is a big deal list to me it's rare that I don't trade something on the favorites list right not every day but most days we typically trade something on the favorites list today we didn't but anyway we got in 15080 stop 1499 99 under the Low by 20 cents and boom 6,400 bucks should have been 7500 but I got a little jittery and sold a little too soon Noe this was accused on a different day right March 19th instead of the 22nd what do we have a gap down moves lower pivots sell setup goes lower Market is weak for our trading period which for me is 9:30 to 10:30 the market was weak that day there's nothing else to say okay but the market was weak so hm what are we looking at here same as the market same as the market is okay as long as you have a firm Market bias so look at Meta Meta tried to go green and left the bottoming tail then it engulfed the bottoming tail then it left the topping tail it gave us this little kind of breakdown and look at the market so as long as I am clear about my bias we already talked about biases sometimes being difficult right when the Market's in a Range we're not really sure but when you have a clear bias go with the market when you get a great pattern if the bias is clear so what do we do we went with the market on meta entry over here stop over here all right I mean there's $6,500 open p&l we went with the market on meta okay why because the market was easy to read on that day it's not always easy to read but on that day it was and if if you're pretty sure the Market's going lower then go at the market all right and met it looked very similar to the market I'll go back right it looked very similar to the market on this day high high high level of correlation but I'm okay with it I felt good about my market bias now different day what do we have March 5th Market gaps down chops around tries to bounce sells off oh my gosh what do we have on snow a four bar play right Wide Bar narrow bar narrow bar drop oh my gosh I what what we took that trade I can't believe we actually took that trade why because it was a great pattern with an Easy Market bias so you see where I'm going with this guys when you have a market that is difficult uncertain you better find strength or weakness or just simply don't trade if you do you're going to get chopped around if you have a stock that has a clear or sorry if you have a market that's very clear go with the market if you have a market that's clear but you still have a stock that has insane strength or weakness you can still go with the insane strength or weakness but basically what you're learning today is how to deal with any and all Market environments you either go with the market when it's obvious and clear if you're not sure you either go with relative strength and if you can't find that you don't do [ __ ] you sit on your hands and do nothing why are we making trading so difficult because the need to be right your ego all those silly stupid things that are basically going to keep you having a boss for the rest of your life I mean guys this business is good as we're three days into April three days and I'm up eight grand and it's [ __ ] and I'm pissed because we should be up 28 grand three days someone else is going to work the next 30 days to make that kind of money we could just call it a month right now if we want to trade proper learn what relative strength and relative weakness are are okay and apply them the way they're supposed to be applied you don't have to have relative strength and weakness every single day you can take a trade like snow where you take go to go back where it's highly correlated to the market the market goes lower the stock goes lower you're good great pattern in a great Market but when you're not sure you better better be finding something like bhc backtack days find something like this what you're basically doing is mitigating or limiting the effect or the impact that the market can have against you I'm going to repeat it by doing this you're mitigating or limiting the impact the negative impact the market could have against you okay you're not going to be perfect you're going to make some mistakes stocks are going to trick you once in a while the Market's going to trick you once in a while that's that's the way it goes that's life but if you get this down most of the time you're going to be okay okay you're going to be okay relative strength and weakness climactic and stocks that are otherwise on their own page makes trading a lot easier this isn't to say they will all work but your odds of success will increase because they don't need the market to move read that paragraph again and again and again and again and again and again and when you're done read it one more time in times of extreme volatility it's very easy to get whipped out of a good trade because the market can and does turn on a dime when it does your trade is likely going with it unless you're in something that has extreme strength or weakness what would that be bhc the challenge is finding them not all great gaps end up having relative strength or weakness it often takes five or 10 minutes into the trading day to start seeing these types of charts pay attention to them they're powerful don't take it for granted guys I've done lots and lots of lectures I don't even know how many somewhere between three and 500 of these these silly lectures at this point okay and there are ones that stick out ones that are impactful this is one of them some of them might even seem obvious to you but if you can take this lesson today this lecture today and apply it to your own trading I think you're going to increase your profitability because you're going to increase your accuracy in my opinion um you use this you combine it with the ATR lecture we had a week or two ago where is the ATR happening along with knowing what ATR is of course then you throw in a pattern you're freaking Unstoppable you're unstoppable Amazon worked by the way guys hit second target I hope you guys got that meta for those of you who who didn't have your stop where I had your stop went about an hour and a half it's coming back in a little bit so productive day but should have been better nonetheless I hope that this lecture was helpful for you guys my concern is the people that are newer have no idea just how damn good and powerful this this was I I don't say that about my lectures that often I usually simply say I hope you guys learn something but I know from experience that this topic is the most important topic other than taking a stoploss because if you can't manage your money then nothing else matters but that aside these types of topics are very powerful and important so I hope you guys learned something from it these are getting towards the end of their lifespan so enjoy them all right I'm Jared Wesley of live Traders we'll get back at it again next week [Music] [Music]

Channel: Live Traders

Views: 7,116

Keywords: live trading, money, earn money, relative strength, education, lecture, learn, study, have fun, fun, day trading, stocks, options

Id: xm3hjq9drhI

Length: 47min 15sec (2835 seconds)

Published: Wed May 01 2024