I'm pretty excited about this video because it really does show you the most important lesson
I could ever teach you if you wanna have success as a trader. And this is a little different format. I started off and I was
planning on doing it as one of my live trading videos. If you're not familiar with the channel, I have an entire playlist
of like 400 videos now of me trading and you
see the live commentary, or commentary as it happens. But after this one was done
and I was reflecting on it, I thought, you know what? This is actually such an important topic. There's so many important lessons within this video that I talk about that I really wanna try to isolate this and bring more attention to it. So that's what I'm gonna
do here with the intro, and then we'll go to the
normal live trading video. But there's really two things
I want you to focus on. So the first is just a
little I guess disclaimer. If you're looking for
the concept of boo-ya. You know, oh yeah, that's the greatest! That's what I like to see! The stuff that gets you excited. The stuff that gets you all amped up. Sorry, that's not gonna be in this video. First, that's just not gonna happen here. I'm gonna give you a dose of reality. The second thing. Trust. Don't true me. Especially if this is the first
video you've ever watched. Assume that I'm a scumbag. Assume everything, and I
want you to find somebody that you do trust, that you
do believe to be successful, and I want you to ask
them about the concepts and the lessons that I give in the video you're about to see, and then see what they have to say. So I'm not gonna say trust me, that this stuff that you're about to learn is the most important lessons that you could possibly learn as a trader. Don't take my word for it. I could be a random
stranger on the internet. So don't trust, but just go ask and verify with people that you do
trust and find successful. So with that being said, with these disclosures out of the way, let's get to my desktop and
see how these live trading and very, very important
concepts and ideas all play out. Good morning, it is
Clay at claytrader.com. This will be a live trade video where I try to capture some of my trades as they play out live. The market opens up here
in about eight minutes, and I'm getting very nervous right now. I'm getting nervous because
ZM right here, ticker symbol, is starting to come down. And it's not close, but this
one can be a fast mover, but 116.50 is what I'm
watching very closely, and I would like to see it break below. But like I said, what I don't wanna see is have the price actually
open up below that level, but if it can open up anywhere above it, just anywhere above it, that's gonna be the main
level that I'm watching. But like I said, right now it seems to be creeping down here a little bit, and we still have about seven minutes before the market opens. So that's what I'm watching right now. That's what I'm really hoping to see, that the price opens up above 116.50, and then I would be interested
in shorting the break to the downside of that level. So, we'll see what happens with it, but that's the current game plan. And it's potentially going to do it. So what I'm gonna do here is
just get short 100 shares. I don't really wanna
take a pre-market trade. I just did, but I'm compensating for that via just doing 100 shares, because I think this thing's
got some downwards pressure if it wants to go. But also pre-market
can also be so sketchy, but like I said, I like
this trade quite a bit. In a sick and twisted way, it'd be nice if it totally backfire on me to just show why pre-market trading can be a little deceiving. But like I said, I realize that. That's why I am controlling my risk by just going 100 shares. So I'm risking right
around, let's see, 117. Yeah. Basically 150-ish dollars, because if this breaks up over 118.50, then I would need to get out. So, excuse me, right around $200. $200. I thought I had gotten in at, or I was basing that off of 117. So that'll be the stop loss. Gonna start off with, I think, either a good-sized trade here, or start off the morning down $200 with a lesson of why it's
always a little risky to be trying to trade in pre-market. So the market now opens
up here in, let's see, less than five minutes. All right, I am just
gonna take the loss here. $132 up here at 118. Showing too much strength. That's what I get for trying
to trade pre-market breakdown, but looking like this thing wants to get up a little
bit higher, but who knows. Maybe I just got fooled again, which again, goes back to
the moral of the story. It can be very, very tricky to trade pre-market, after hours. But yes, as of right now down 132. All right, the markets are open. And I am now in at... So all out there, took that scalp, because I'm not sure if it
wants to break through 116.50, but I was confident that it wanted to get down there at least. So hence, cover the trade, and now I'm up. And there is the break. But still, that's a very overextended move to even get down there. But like I said, that's why I needed to be a little bit more
aggressive on the profit taking. But like I said, now I
am officially up 128, so moral of the story there, control your losses, and then trade what the market gives you. But yeah, as of right now, like I said, if it hadn't started up there I would have been willing to hold more. But I mean, it had to
move all the way down here just before it got to that level, which is why I wanted to cover there, 'cause at that point it was
already super overextended at a support level, so I decided to just
lock in the gains there. But yeah, that was a very,
very quick trade that, like I said, I covered. So I made, what? 200, I can't do the math, but over $200 on it in
order to, like I said, cover the loss and then put
me back into the green by 128. Interesting candle here on Boeing. Wanna see what kind of
candle actually forms here. So in there at, nice. And out for. How did I only get $14? The spread must have opened up on me. Okay, well. I did reduce size to 100, 'cause you know, this is still
an overall strong movement. In hindsight, I should have stayed at 500, but I thought I was getting at
least a good $50 out of that. That's what comes when you play these very quick-moving stocks
with a big spread. Like I said, I'll have
to scroll back and look, but I could have sworn I
was gonna be pulling out more than $14, but it is
what it is at this point. And in hindsight... Yeah, I'd like to short 152 but that's, I feel like that's risky. This thing is still in a
bullish context with the gap up. So yeah, it seems to be working right now but I'm not convinced. And Zoom. Ah, missed that one. Missed the 115. Well, on the bright side of things I guess I feel a little
bit better about all this. Well first off, I'm green, but also this was an alert I made. I know some of you are always wondering, hey Clay, how does your chatroom work? So right here you can see that this was what I
made this morning on it. And so, Zoom, 116.50 flush point. So those members that
actually paid attention to it and didn't try to trade it pre-market and psych themselves out,
they just got themselves, let's see, 116.50. Down to basically 114. So yeah, a good what? $2.50 move. So, congratulations to
members that took that trade. As far, those of you that
are maybe not members and just wondering how
the community works, there is an example of how alerts work. But let's see what else I can find. I think Zoom wants to get back below 115. Seemingly quite a bit of
downwards pressure here. But right now, not lookin' so hot. All right, all out there for a loss. My stop was just slightly above, my mental stop was at
116.50 and it broke there. So yeah, that was just not enjoyable, and that's a pretty crazy move actually, from the candle that had
just formally formed. But it is what it is. I'm gonna get long here at 19.95 here on BIG. I think it wants to get up above the $20 mark. So let's see what happens here. 19.95 seems to be the actual
resistance right there. You would think it would be 20 but, so there's 20. Yep, and there's the break. Well... A very poor break. So I tried to get out but I was only able to get out 100 shares and now it's going against me. (laughs) (groans) Well... So this is just not a good morning. Another $200 loss. Look at that. Crazy. And it just continues to fall. And an update here on ZM just so you can see how
that one's played out. I mean, I feel very good
about getting out where I did 'cause that thing's just
continued to rip higher. So yes, a morning that is just not playing very politely right now. And this right here is
why you honor stop losses. I mean, had I not honored that stop loss. Now again, was that loss pleasant? It was not. It was not fun at all,
but it would have been, I mean, we're looking at
at least another 2,000, if my math is right, $2,000 more. So yeah, right now that loss
doesn't look that bad at all. I think BA wants to get
back below 155 for now. So let's see if it can
indeed break down below 155. So there's the break. All out there for $250. So I got back some of the losses, but let's see what else I can find. Quick update here on ZM. The pain would have just kept
on getting bigger and bigger. Look at this move going. In fact, I have an order at 122.15 to try to get short here, 'cause this move is getting ridiculously overextended at this point. So we'll see if it can
work its way up there. It's trying. At this point, I'm gonna go ahead. Woops, 122.45. So, we'll see if it can
get up to that area. But as of now it's looking
like it's pulling back. Yeah, even my original plan wouldn't have been filled, so that makes me feel a little bit better. But the moral of the story still stands. Look at that move. Honor your stop losses. Manage risk. That would have been painful. All right, I think ZM wants
to get down below 120. Lot of downwards pressure
here on it right now. So let's see if we can get
movement to the downside. And there it is. All out there. Reduced my loss little bit more. Got the quick scalp on it. So let's see, now I'm down 408. Quick update on BIG. This one, in hindsight. Shoulda, coulda, woulda. But that's voice that said,
oh Clay, you should have held. You shoulda held. You shoulda not honored the stop loss, 'cause look, it bounced back up. But think about it. Sure, this one worked out. It would have worked out. But what about Zoom, if that
voice would have showed up and I would have listened? Just the learning lesson here is, I get it, there's gonna be plenty of times where you get stopped out and then you could play the what if game like I'm doing here. Well, what if I would
have just broken my rules. I would have been okay. Yeah, but it's amazing how the mind blocks out those times like ZM where, when I say the what if
I would have been wrong, or what if I would have
listened to that voice and not honored the stop loss. Well, as you saw with Zoom, that would have been not enjoyable. All right, I apologize for that. Got short at, on BABA here. At 198.44. So looking for a continued breakdown here. So there we go. Can it get through 198.30 though? Hesitating too much, so I'm just gonna take my gain and move, 'cause we are at a support. Don't wanna see a hammer form here and then have me move on
out, so I'll take the $46. Let's see what else is out there. I have an order at 151.51 here. Still a ways away but
this one can move so fast that it might not
actually be that far away. Now it's actually
bouncing up a little bit. Never mind for now. I actually adjust my order down to 151.15. So, can it get down there? It's hesitating. Going to 150.51 now. We'll see if it can work
its way down to that level. And again, it paused. So, let's go to 150.01. And you can see the lowest it went was right there at 150.59, so I wouldn't have been filled anyways. But we'll try it again here at 150.01. I'll keep you updated. I have an order at 152.55 here. On BA. Just too slow. Need to see more of a jolty movement, so let me change it up to 152.95 now. I'll keep you updated. All right, I think BA
wants to get back down to at least 153, if not
even lower than that. So, took a very, very quick scalp there. I realize it happened quite quickly, but you can see I got short at 153.28, and then covered right there at 152.58, which oh great, here come
the psychological games. Now I'm down $13. So of course the voice shows
up that says, okay Clay, now you need to make $13 more dollars. Let's go find a trade to
force so you can make $13. That voice is knocking on the door, and then it's coupled with the voice of, Clay, this would be an
awesome YouTube video. You're posting it. I mean, you hit the record button, therefore you have to post it, but now you have the opportunity to fight all the way back to the green. So now I have, and you only need $13 more. So it's like a tag team match right now. It's the cool YouTube video voice and the, you only got $13 more voice that have teamed up against me. Wow, that was a fast move to the downside, but I'll take it. All right, it's a little bit past 11 a.m. 90 minutes in. I'm debating whether or not I should take this trader here of 153. Really a question of, do I believe it can get down through 153. And if not, what's the risk on it? Pretty much, do I wanna
risk right around $500-ish, or not $500, about $200. Or just pretty much call it a day. So that's the decision
I'm currently weighing, and I'll give you my answer soon. I'm gonna go ahead and get short here. And all out there for
a quick little scalp, which puts me at 687, which puts me at $70 on the day. Now with commission, I'm probably somewhere right around, I don't know, 30-ish. That's a ballpark estimation. I'll just go with $30-ish. So there we are. 11:06. 96 minutes into the day, there we go, and I'm walking away with about $30. Some learning lessons here. Again, thank you for all the feedback in the comments section. In past videos I've always said, hey, let me know in the comments section, do you like the lessons? And a lot of you have. But let's quickly recap what allowed me to ultimately close green on the day. And let's go back to Zoom. Zoom was just not normal
and it was terrible, and in hindsight. Let's see, what was this morning? Oh, that's yesterday. So this move right here. Actually, let's go back to
the one-minute timeframe 'cause that's where it happened at. That candle there, let
me just put it this way, if you don't see the
bearishness in that setup, then that's okay, but that would be a sign that
you need to work a little bit on your chart vision, because that is a
beautiful, beautiful setup from the short side. But just because something is beautiful does not mean that the
markets are guaranteed. It doesn't mean that something is for sure going to happen, and here's an
example of that right there. Absolutely just punched
that pattern in the face. Said, there's no guarantees in the market. And had I gotten stubborn,
I mean, think about it. I took the loss that was
not fun at all, at all, but had I not, let's
play the what if game. What if I hadn't taken that loss? Look at that move against me. Look at that. Crazy! Crazy! Up almost to 122. That could've been, I don't even remember what the loss was. I think it was, I have no idea. All I know is that could
have been quite literally thousands and thousands of dollars loss had I not honored the stop
loss in the first place. So that is a what if game I
would encourage you to play, because you need to have these in mind. All too often we do this. This is exactly what I used to do. This is what a lot of traders do who are especially new
and just getting started. So let's go to BIG. BIG was that other one
that I took that loss on, and they play this game. So we just saw Zoom, and then they say, well, look at that. I bought, wherever did
I, I bought somewhere. I think right there, yeah. That was the move. Again, a nice little pattern here. Coming down, working its way back up. Looking for the break. Got the break. I sensed the break. Didn't seem that strong,
and you saw me try to get. I actually got out 100 shares, and then it just totally rolled back over and got very nasty. I mean, it went all the way down there. But coming back, had I just
not followed the rules, now look at it. I could be sitting here saying, well jeez, look at that. Now it's sittin' up here,
it got well above $20 mark. And then you just focus on that one. Our minds are weird. They always seem to
shove out the ones where it would have really been favorable, such as the ZM, and then
they always focus on the, well remember that big
trade that you took? If you would've just broken
your risk management rules, then you would've been in the green still. And then somehow you just focused on that. So just remember, play the what if game with those losers because
assuming you're disciplined in getting out at logical spots, then yes, sometimes you're
gonna be looking at a situation where you're gonna say, oh wow. That could've been great, or
that could've been really bad. So the loss, in all actuality, felt great. It feels great right now. Why? Because I'd rather dig out of, I think it was $800 I
was down at one point. I'd rather have to dig out of a $800 hole rather than a multiple
thousand dollar hole, which again, no exaggeration,
Zoom had a crazy move had I not gotten out when I did. Insane. Got out, I don't remember. Actually, let me scroll back here. Got out at, oh yeah, so my mental stop was up around 116.50, and obviously it's such a fast mover. I didn't get out until 116.77. 116, so I'm gonna map that out. Let's see. 116.77 ballpark, right there. That's where I got out. (laughs) And then this thing still, I mean, from the short side, that's what we call the torture chamber. That is the house of pain. That is your account going, bye bye. See ya later account. You don't want that for your account. I get it. It's not fun to have
to admit you're wrong, to have to take a loss. But this exists. These sorts of moves happen. Lots of times, again, yeah it ends up would roll back over. You'd say, I should've been undisciplined. I should've just not honored my stop loss. But all it takes is
one of these, just one. And I'm not gonna say it's gonna take away your entire account, but I will say it can take out a massive,
massive chunk from your account. So, if you take away one thing, just one thing from this live trading is, please don't take away the fact. Oh, that was cool. He came all the way back. No, no, no. Focus on the, how did I give myself the opportunity to come back? I did that by just honoring stop losses and keeping the hole at $800 rather than $3,000 or $3,500, or whatever this loss
could have very well been. And those are not exaggerated numbers. I mean, if I got out right there, let's actually quickly do the math. I had 500 shares, so we'll
just call it from 117 to make the math easy. So 117 to 118, that's 500. 18 to 19, that's 1,000. 19 to 20, that's 1,500. That's 2,000, and then
this thing ultimately went up basically to 22. So I mean, potential
$2,000 hole right there. Like I said, don't focus
on, oh he fought back. Focus on the, how was
I able to fight back? How did I give myself
a chance to fight back? And that was by honoring losses, admitting I was wrong,
and just taking the loss and living to fight another day. And in this case, just
keeping the hole manageable so that I could dig out of it. Wow, that lesson went a little bit longer. Can you tell the importance
of risk management though? I get it, social media. All everybody focuses on
is counting their cash while they sit on the hood
of their Porsche or whatever, and then their private
jet's in the background and they're drinking a bottle of Cristal. That stuff's a gimmick, okay? This is the real world
of trading right here. You're gonna be wrong. Just admit the fact you're
wrong, take the loss, and let yourself, give
yourself a chance to fight and dig out of holes that you're gonna find
yourself in every now and then. Now, if you enjoyed the video, please hit that like button, and also in the comment, let's
do this 'cause I'm curious. Who actually made it to
the end of this video? We're coming up on almost 24 minutes, so if you're still watching right now, just comment down below. Keep the hole small. Keep the hole small. Comment that down below. I'm curious how many people
actually make it this far. But if you did make it this
far, then at this point, can you just hit that
subscribe button too? I mean, I guess you can check
out the rest of the channel. Lots of other live trade
videos, lots of other topics, but I mean, if you're here
with me for this long, I mean, I'd love to have
you part of the channel if you've put up with me
for almost 25 minutes. So hit that subscribe button. If you have questions or anything else, leave those in the comment section below. But I said, keep the hole small. Comment that down below. Thank you for hanging out and yeah, feels good to have
taken that loss and now, like I said, I'm up $30,
so I gotta get going 'cause I'm about to go
Lamborghini shopping. Everybody take care. First off, thanks so much for
watching the entire video. Real quick, before you go, I wanna invite you to a live webinar, web class, training,
workshop, online event, whatever you wanna call
it, but it will be me, live, revealing to you
what I've 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 gonna 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.
