Trading The 3 Bar Play: Everything You Need To Know!!

hey guys Jared Wesley here of live traders and back for another educational lecture so I know it's been a little while since I've done one guys maybe ten days maybe two weeks or so but I got around to doing another lecture today that I think is a good one and one of the reasons that I'm doing this is because I see a lot of people out there trying to piggyback off of my three bar and four bar play in fact it got so egregious some person even use the term 3 bar play and the reason I have an issue with this is it's okay if people want to call it something different and have their own spin on it but if you're going to call it a three or four bar play it's mine and it has to be taught that way again call your own trade something else whatever you want to call but I just see some people just trying to take advantage of the popularity of the pattern so they can get more likes and more views on YouTube which is a little bit pathetic okay so before I get into that lecture which is quite long guys this lecture is about an hour and a half to two hours yes the lecture is that long and what the lecture is about guys is all of the questions I've been receiving about this pattern I've gotten about 20 or 30 different types of questions I've gotten thousands of emails over it but I've gotten about 20 different questions so I picked the top ten or twelve questions for example when do you enter a three-bar play is the three-bar play valid on different time frames like the daily chart the two-minute chart the 15-minute chart etc and so forth also what is shorting those types of questions a lot of different questions what platform that I've use is the three bar play valid in forex can you trade it on foreign markets all of those types of things so I've answered all of those questions as well as given a detailed description of exactly what the three bar play is if you thought the first video is impressive this one is way better it's twice as long but before I get to that I want to show you 3 3 bar plays that we traded this week one I traded today on Tesla so let's put that one up first today guys we traded Tesla on the short side yes you can make money when stocks go lower it's called shorting okay we got in at two hundred and thirty dollars and ten cents the stop-loss was two hundred and thirty one dollars and thirty cents and the stock tanked I made over six hundred dollars on I had a little bit of a platform issue today where my platform froze up so I didn't get my full target which should have been about 750 or 800 but it is what it is and we'll have to take the 600 bucks we got on Tesla today and you can see right out of the book wide range bar followed by to narrow range bars and then it's rock that was today yesterday on caterpillar see 80 I took another three bar play the entry on that was 130 dollars and 55 cents with a stop loss at 131 dollars and 10 cents and what's important to note about this slide because I put it on there I put this out there on social media way before it happened guys it was on my gap list around 9:00 a.m. then I commented to my traders in the room guys at 9:20 ish this is my favorite idea guys we have to find a way into caterpillar today and then 9:25 I put it on my favorites list with prices so remember the markets not even open at 9:25 it doesn't open till 9:30 and I'm already telling people the price point in which I'd like to trade caterpillar okay and you could see another textbook three-bar play why bar couple narrow range bars drop okay and finally this week we also took Halliburton which was another three bar play at 23 12 was the entry with a stop loss at 20 to 90 and made another 600 bucks wide range bar narrow range bar blast-off the comment I'm making is and it's part of the lecture you're gonna see is three bar plays happen every single day every single day there's not a day that goes by I don't find a 3 bar play or a 4 bar play okay so I want you guys to watch this lecture because I'm tired of seeing other people out there trying to piggyback off of it and teach it improperly okay I didn't come up with every single thing I've just made the three bar pattern better and I've used my own terminology called the three bar play right these types of patterns have been around for a long time I've just perfected it okay so if it's not from live traders it's not a three-bar play the way I teach it all right so Jared Wesley guys of live traders stick around for the lecture it's about an hour and a half of incredibly good information guys I even took three or four slides out of the professionals trading strategies manual it's five hundred and twenty five I used about four or five of those slides but overall this lecture is about 80 pages guys in my opinion it's better than most of the paid courses you've taken out there it's that good in my opinion all right so have a good one guys and watch out here for the three bar play lecture if you want a one dollar 30-day trial into the chat room email info at live traders comm one dollar thirty days in the chat room see you on the flip side [Music] um so I put out a video a few months back on the three bar play and it got you know it got pretty popular a lot of people liked it because of the simplicity of it so I thought it would be a good time to go over a lot of the questions that I got I got literally thousands no no joke thousands of questions and there were five or ten that just kept popping up the same five or ten questions that kept popping up so I thought it would be good to go over the three bar play as well as some of the questions that people were asking like the platform that I use and what's the exact entry on a three bar play and what's your target and then use some recent trades that I've taken in fact we took a 3 bar play today on Tesla Tesla is actually a four bar play on the two-minute chart okay so we'll talk about that as well the other thing I want to get oh and so I don't have can you enter presentation mode I don't really feel like because I want to see the slides on the left hand side Peter I mean you know you'll just have to deal with it being 80% of the screen instead of 100% of the screen in all the years I'm doing is you're the first person ever actually asked me that but anyway I get people saying oh well you make it sound so simple but as you can see part of the title here is trading a simple but not easy trading is not easy okay it's a very challenging business so you've been warned absolutely you've been warned guys trading is hard okay I'm not sugarcoating it I'm not telling you it's kind of hard it's a little bit challenging trading is hard okay it's not some get-rich-quick business it takes years to get good at most people fail because they risk too much money too soon you want to know why 90% of traders fail is because they risk too much money too soon you guys should not be risking any more than five or ten dollars per trade when you are new period I don't care if you have a two million dollar account you should be risking five or ten dollars per trade when you're new none of this oh I just turned four hundred and twenty six dollars into two million dollars in 38 days uh-huh uh-huh uh-huh again okay most of the online marketing suggests you know how easy this business of and been guilty of it too at times okay but please know this is a very challenging business okay money management is your number one job okay number one matter money management is your number one job now having said all of this trading is hard it's a wonderfully rewarding business how many businesses do you know of that you can do from anywhere in the world with an internet connection and a laptop and make a living at it anytime you want not too many why did I say this because well there's obviously gonna be a learning curve for a business that provides that level of income and that level of flexibility it's going to be challenging okay so one other thing imitation is the sincerest form of flattery that mediocrity can pay to greatness okay this is an important slide because recently in the last few weeks I've seen some people blatantly copying this literally calling their trade the three-bar play one that that term three-bar play was coined by me okay I've seen different names used for this pattern in the past but never the three-bar play and I recently saw one somebody just blatantly take that name three-bar play and the reason I got upset is it's fine if you want to copy imitation this is a serious form of flattery but don't miss teach it don't miss teach it okay don't miss inform people that are watching your video what a true three and four bar play is and that's basically what I was seeing okay so today we're gonna dispel those myths and misinformation and you're gonna learn it properly exactly the way the pattern is supposed to be applied okay so I'm just making the point that I've seen it out there and people are just trying to piggyback off the name so they can get more clicks on their YouTube videos which is just egregious okay alright so here's some of the things we're going to discuss today guys like I said it's there's a lot here what is a three-bar play the basic set up is the whip part of the bar that's a question I've been getting all the time exactly when to buy and some of the nuances okay is the three bar play valid in all timeframes we're going to talk about the timeframes and styles how do you determine the target on the three bar play okay basic management strategies does it work in forex options in crypto we'll talk briefly about that because I get this I probably get this question does it work in forex maybe more than any other single question I get perhaps okay how do you find them hi this is probably the second most asked question how do you find them scanning wise okay so we'll talk a little bit about scanning options and choices how to keep things simple what is shorting I see a lot of people not understanding how to make money when the market goes lower with the three bar play what platform do I use I use TradeStation but we'll talk about that and then not all trades work some people like well it's great Jarrod you showed all winners well I'll show some losers today too okay so let's dig in guys to exactly what is a three and four bar play okay what is this pattern that's been talked about so much this next slide is directly out of pts okay this slide is directly out of pts okay remember I said there's about five or ten slides out of 525 that are directly out of the course book this is one of them okay the three and four bar play guys one of the most important aspects of this pattern is the number one bullet point right here bar number one it this is extremely important I'm tired of people sending me three bar plays that are not three bar plays bar number one must be not should be not might be not could be must be a wide range igniting bar right it has to be igniting a new move all right you're not gonna get a 3 bar play that's up seven bars in a row magically puts in a little red bar and then goes higher I've been getting a lot of that where people are showing me moves that are up four bars there's a tiny little red bar after four huge bars and then I'll look at the 4 bar play look at the three bar play okay that is not it okay so igniting bar means just in case you're not sure the first or second bar of a move this is extremely important it has to be the first or second bar of the move okay wide range bar means it should be should be at least double the size of an average bar now the reason there's not a number attached to this is because every stock is different right a wide range bar on Amazon might be four dollars a wide range bar on Bank of America might be 25 cents right so just take a look at the rest of the bars on the chart take a look at the rest of the bars on the chart and go wow the average bar looks to be about 20 cents wow this bar is 50 cents that would be a wide range bar roughly double the size of an average bar okay this bar should have increased volley but it's not required increased volume equals increased commitment volume is commitment or lack thereof commitment okay so I'm spending so much time on bar one because this is the bar most people mess up okay most people seem to understand bar two and three they mess up bar number one and there's gonna be enough examples today that you should never mess up bar number one ever ever ever ever again okay one of the things I would like you guys to do and I'll repeat this later on is when you decide in your trading plan that you might want to take a three bar place say that's part of your trading plan there's a lot of different patterns we teach at live traders okay you want to take a picture of a perfect three bar play and you want to put it on your wall you want to take a picture of a perfect three bar play and you want to put it on your wall and every time you go to take a 3 bar play look at the wall and go do these pictures match does the picture on my platform match the picture on the wall okay alright so one of the things that's also important guys all right and John I was gonna get to that later but I'll get to it now I actually have a slide over it the wick is part of the bar unfortunately none of these have wicks on them you will see some examples but the little topping tail little bottoming tail is part of the bar okay guys this is just the body of the bar but the entire range of the bar includes the wick on the candlestick it absolutely includes the wick on the candles like so if the body of the bar high is $50 but the total high is 50 dollars and 20 cents you use 50 dollars and 20 cents because that's the high of everything alright now on to bar number two and three bar number two and three must be in the upper 50 percent of bar number one what that means is if I go down to the example here in the bottom left you see a green bar a red bar and a green bar that means this red bar has to be at least in the top half of the green bars range so let's just say this bar is one dollar there's wide range green bar is one dollar that means the red bar has to be in the upper 50 Cent's because that's the upper 50% otherwise it's not a resting bar it's an engulfing bar okay so bar number two and if it's a four bar play bar number three as well if it's a four bar but they have to be in the upper 50 percent it's preferable hear me out it's preferable if they're in the upper twenty five or thirty percent the smaller this bar is the better right and now obviously we'll talk later about spreads and things of that nature but as long as it's in the upper 50% you're good okay they should have relatively equal highs okay so if the high of bar number one is $50 you want the high of bar number two to be about $50 if it's at you know fifty point oh two or forty nine point ninety seven that's fine but if bar number one high is 50 bar number two high cannot be fifty dollars and fifty cents that's 50 Cent's different okay it's 50 Cent's they have to be relatively equal highs obviously if it was on a daily chart you'll be a little bit more flexible if you're trading a two-minute chart pennies matter nickels matter okay so it has to be in the upper 50 percent of bar number one and it has to have a relatively equal high okay bar three and four now this is the trigger bar this is the entry bar this is the trigger bar this is the entry bar yes I repeated myself this stop-loss goes under the lowest bar whether that's bar 2 or bar 3 the stop-loss goes under here the question I've been getting frequently is when do you get in you get in the nanosecond that bar number three breaks the high of bar one and two as soon as bar three breaks the high of bar 1 until you enter the stock and you place your stop-loss down here below bar number two you enter as soon as it breaks the high of bar one and two and you put your stop-loss below bar number two that's it if it's a four bar play you enter the same way you get in above bar number one or two and your stop-loss goes below the lowest of these two bars if bar number two is lower than bar number three you go below that if bar number three is slightly lower than bar two you go below that entry right here put my cursor on it right there stop-loss down here note the color of bar number two or three doesn't matter I don't care if bar number two is a green bar I don't care if it's a doji bar I don't care if it's a bottoming tail bar I don't care if there's a topping tail bar I don't care if it's a red bar as long as it has a relatively equal high and is in the upper 50% of bar number one I'm speaking slow and clearly because I don't want you guys to mess this up the play is valid on Long's it is also valid on shorts we did it today on Tesla right did it today on Tesla ok real quick oh I don't have it up let me pull it up just real quick hold on one second guys where are you at that's the Tesla trade we made money with a stock going lower wide range bar to narrow bars with relatively equal lows and the stock dropped okay we did it today on Tesla okay all right now let's move on let's look at some examples so now you have the basic criteria this is right out of the manual guys I'm giving you a page out of a 2,000 dollar course right here okay right out of the manual bar number one must be a wide range igniting bar okay it's best if it's clearing resistance I'm gonna show you this in a couple minutes so here we go okay now I want you to take note of this red line that goes across the screen what is this red line it's resistance see how it says wide range bar breaks above resistance okay wide range bar breaks above resistance okay that red line is where the sellers are so notice this bar rips takes off right off the open it breaks above this area now why is this important because this red line is where the sellers are so if you take out all the sellers you have room to freely move higher we call this void all this white space up here is called void we broke through the resistance okay after this wide range bar guess what you're probably a little bit tired right if you ran a marathon you'd be a little bit tired too so before the stock continues higher we'd like a small resting period but we don't want the resting period to come all the way back down to the lows because that would mean what it's not as strong as we thought right this wide range bar by definition shows strength y1 it's wide range and - it broke resistance so breaking resistance and being wide range on volume by definition is strength okay so you want the next bar to just be a shore wresting bar in the upper range the upper 50% just enough time to catch your breath so you can continue along your journey higher so wide range bar number one is the igniting bar bar number two is the resting bar and bar number three is the continuation of the move so bar number one's wide range bar number two is narrow range in the upper 50% bar number one and two have equal highs relatively equal highs void above I prefer them at half numbers and whole numbers but it's not a requirement you buy here at sixty seven fifty you put your stop at like sixty seven twenty and look at that two dollars and fifty cents and this is on a 15-minute chart so this one happened at like between ten and ten fifteen in the morning this triggered didn't happen right off the open that happened at ten to ten fifteen okay let's take a look at some examples alright here is a 4 bar play now one of the things I want you to notate on these I'm not taking these in vacuums this is important guys I'm not just pulling up a two-minute chart I'm using the 60 minute time frame to see the bigger picture we call it the top-down approach you start with a daily chart or a 60-minute chart I will talk about this and discuss this when we get to the scanning section you start with a 60-minute or a daily and when you have void or a nice gap then you can drill down and look for a three or four bar play so if I look at the 60 this stock is breaking support see the pivot support here pivot support here pivot support here you're breaking on this under 266 this stock has room down to 260 call this void so this is my tradable void this is the range in which this stock should drop okay it's the range in which this stock should drop so notice what happens on the gap down we break 266 now take a look at the bar compared to the rest of these bars that's a wide range bar see the rest of these bars over here and now you look at this bar so you're breaking 266 breaking it okay that means we're in the clear now we broke this support area right here at 266 it sweet now that we've broken it it's time to look for a pattern it's time to look for a pattern okay so we got a wide bar followed by a narrow bar and in this case another narrow bar so this is actually a four bar plug right we're gonna get in right below the low of bar one and two they have relatively equal lows they're not perfectly but they're close I'm gonna get in right in that 265 area I got filled about 10 cents late I gotta fill it to 64 90 put my stop up here around to 66 it's a little below that area is more like to 65 75 right okay and then you're gonna let this thing drop now why is it able to drop because the 60 minute chart has room to drop you would never take one of these into support right if support was like 265 we would never take this but we have six dollars to play with but we only need two dollars so we're well within that acceptable ring and you can see I made 878 bucks on this thing and we did it pretty quickly right and this is a two-minute chart so in about 15 minutes we're out of this thing okay real examples now one more thing okay entries are always stop limits stop losses are always stop market orders entries you always use a stop limit order it's protective stop losses you always use a stop market order okay now I've put various ones from various dates in here why did I do this like this was from September of last year some new goal Jarrod that's old I did it on purpose why to show you they worked a year ago they worked five years ago they worked today on Tesla they worked yesterday on caterpillar so I varied the dates on these on purpose to show you that this isn't something that just started happening today and it wasn't something that happened five years ago and no longer works today okay because people say oh that's old Jarrett well we took one today on test then we took one yesterday in caterpillar okay that's why I did it now let's take a closer look at one take a closer look I took a vaccum picture of one so we get a close look the support here is like 19550 right gap down and once you get under this area there's nothing but space here right there's nothing but space here so a wide range bar breaks below this area so once we break support now it's time to look for a pattern right any pattern in this case a 3 bar play wide bar take a look at the size of that bar it's like a dollar 25 look at the size of the rest of these bars right so this is a wide range bar it's at least twice the size of an average bar then we follow it by a narrow range bar another technically could be a narrow range bar where the entry I think it just peekaboo to the entry they have relatively equal lows not exactly to the penny but within a nickel or a dime in this case it's a one dollar stop-loss one 94-60 is the entry 195 40 so an 80 cent stop-loss and look at sink tank it's a two minute chart guys so in two four six eight ten twelve fourteen sixteen I don't know 25 minutes this thing dropped five dollars give or take four dollars that's what five to one on your money okay five to one on your money alright guys they happen on all stops they don't just happen on high price tops they don't just happen on low price stocks they even happen on Google and Amazon and Facebook and they even happen on the queues and they even happen on the spy okay do you understand what I'm coming here they happen on all priced stocks all priced stocks I put these three up here because this happened to be on the same day in June this past you and a month ago right three bar play on Facebook three bones play on Amazon three bar play on Google I only took the one on Facebook that day you could have taken all these and I even wrote in the room stock Amazon under 1755 we took this one there it is Facebook short 170 320 by 174 there all these are two minute charts this is a five minute chart so they're not happy in exactly the same time but look at this 2 4 6 8 10 12 14 minutes in and again you have a three or four dollar move which is about four to one your money give or take okay now you've seen a lot of short plays short short short they happen on the long side too right here's one on Disney right here's one on Disney right there I blew it up so you guys could see it that's what it looks like on my screen but I blew it up wide range bar followed by a narrow range bar blast off the only negative here is this second bar might be slightly under the 50% mark slightly but it was so good I couldn't pass it up right and I called it in the room 138 forty by 137 87 they happen on the long side they happen on the short side they happen on high-priced stocks they happen on low price stocks okay here's another one on the short side guys again I'm putting the daily chart in here so you can see you start with the daily look at this gap you're capping under 1 2 3 4 5 6 7 green bars now I want you to think about this for a second if you bought low the day before 110 dollars thinking oh it's gonna go up to 120 130 okay let's just say imagine hypothetically you bought low yesterday at 110 and you wake up today and it gapped down to a hundred you're 10% down overnight how you feeling you're probably uttering some four-letter word that's inappropriate but for our purposes this is money we are taking advantage of somebody else's misfortune because many of these people will panic and they will sell their stock they'll panic okay the average person I'm sorry to say this I apologize for saying it the average person is an idiot when it comes to the stock market do you know how many people out there said in 2008-9 they'd never invest in the stock market ever again for the rest of their lives thousands millions of people did that the markets up 6 to 1 since the bottom 7 to 1 since the bottom how's that working out for you guys that never invested in the market ever again ok so my point is is a lot of these people will get out it gaps down under support and all of this green that's huge shock value so we have room from roughly okay what is that 104 down to the pivots port at 98 roughly 104 to 90 that's our tradable range so what do we do we wait for the stock to get in the tradable range and we trade it so you get a wide bar narrow bar this one triggered chopped a little bit and then went so this one took a little bit longer maybe 40 minutes okay it was a $1 stop-loss and this thing went down ooh I don't know about two dollars and 50 cents to and after one okay made 450 bucks on it okay bar number two can be any color does bar number two can be any color real quick for those of you that missed it note the color of a bar number two really does not matter I put it in there in pink it does not matter okay all right Apple here's one on Apple we start with magically the daily chart guys okay you're gapping over one red bar two or three red bars what's above here nothing once you get over to oh nine to 10 right here nothing's above this okay nothing is above this how do you decide your exit we'll talk about that in the management chapter okay which is coming up in a little bit all right so gapping up to 210 there's nothing above so what do we do we wait for it to get above 209 50 or 210 and we look for an entry okay this is the resistance this big pink line is the resistance we get above it we look for an entry wide range bar followed by a narrow range bar the entries to 12 the stop is to 11 rip it went three dollars went three to one on your money now this was a 15-minute play it happened to right around 10 a.m. you had a sit on this for two hours but hey two hours for two to one isn't bad is better than digging ditches okay this was the pre-market scan of this Apple was near the top of my pre-market skin look at the volume so I found it on my dollar gainers and losers which we'll talk about later I loved the gap and I said sweet we have to put this in our list and then it forms a 3 bar play ok beautiful simple now next chapter is the three and four bar play valid in all timeframes I get this question so frequently it's not even funny I understand why people ask the question they asked a question because a lot of the examples that I give are on 1 minute 2 minute and 5 minute charts so they think it's only valid on like 2 & 5 minute charts the only reason I you see so many of those examples guys is cuz I trade the market open I trade from 9:30 to 10:30 so I'm not gonna really be in too many 15 minutes free bar plays cuz well I'm usually finished trading by then but the answer the question is wait for it okay there you go yes it's valid in all timeframes okay all time frames in case you don't believe me let's run down about 15 slides very quickly cuz we'll be here till tomorrow if I don't do it quickly okay wait for it oh there's Netflix on a 1 minute 3 bar play ok from June wide range bar narrow range bar notice it triggered and got choppy see that the top and tail got a little a little nervous when it triggered but it triggered rip okay guys this thing from 3:45 to like 350 to $7 move on a dollar 75 it made 700 bucks on this one okay wide bar narrow bar rip that's a one-minute okay in case I think it's a fluke this was yesterday on caterpillar yesterday on caterpillar okay wide range bar to narrow range bar sorry it's so small sorry it's so small and we shorted it 130 55 by 130 110 made another seven hundred and seventy bucks on this thing okay this happened yesterday on Tesla today that was another one minute chart okay how's it two minute actually so you just saw two one minutes now let's move to the two minutes this is a two minute chart okay look at this bad boy wide bar narrow bar rip I made four grand on this alright I made four grand on this this is a few years back wide bar narrow bar rip see the daily breakout it's pretty sweet that's a two minute okay let's do again here's another two minute chart okay wide bar narrow bars drop that's a four-bar play for bar huh now why was it so potent see the green line see support you're dropping under support so we've seen to one-minute examples we've seen to 2-minute examples now what's next Oh another two-minute example okay see the gap see the three bar play okay let's go to 5-minute example here it is on a 5-minute okay there's the daily gap gapping over a topping tail and three red bars and a pivot it always starts with the higher time frame it always starts with the higher time frame then you drill down to the lower timer so what do we have here wide range bar to narrow range bars rip that's a five minute time frame okay 79 entry by 7850 it went to 82 bucks that's three dollars at six to one on your money but for those of you that are jittery the first five minutes paid you a dollar paid you two-to-one almost in five minutes you could have added over eighty bucks if you wanted to but that's a different topic for a different lecture great daily great intraday that's the 5-minute what's it up look at this another five-minute write gap down support was at $17 supports at 17 bucks gap down wide range bar narrow range bar now this one's a little different only because again the topping tail was not in the bottom 50% right you could have argued to take this one right here and it same just tanked now what here's another five-minute three bar play wide range bar narrow range bar rip right wide range bar narrow range bar trip that's 5-minute now what are we up to now we're on the 15-minute okay I'm systematically going through each time frame to show that these happen on any and all time frames what do we have to break resistance see the the pink line right there wide range bar takes out the pivot narrower range resting bar with a relatively equal high okay rip okay rip alright next Oh 60 minutes we're up to the 60 minute now well have two examples here one take a look at the wide range red bar what's it taking out support see the pivot support the bounce see the pivot support the bounce right in that 105 area give or take wide range red bar takes out two pivots narrow range resting bar and we have room down to what at least 101 ish maybe 100 we're taking out support we have room down to 101 maybe 100 okay wide bar narrow bar drop 60-minute chart oh here's another one see the consolidation resistance area right it like 60 150 you want to get above the red bar here pink bar whatever color that is wide bar does what ignites a new move out of this range into the void above followed by a narrow range resting bar get in at 60 250 your stop 62 you're up to 64 2060 minute we're not done yet what oh this is a daily chart okay you guys get in the picture here let these happen on any and all time frames is this enough examples to tell you this wide range bar breaks out I should have put a line on it this breaks out wide range followed by a resting bar narrow range rip you're in it like 1825 you have a 50-cent stop and it's at $30.00 to four five days later guys that's it like a twelve dollar move on a 50 cent stop-loss what's that like 25 to one on your money 25 to one on your money just in case you thought maybe that was a fluke here's another one on a daily chart wide range bar takes out this pivot takes out this pivot right there okay followed by two resting bar so it's a four bar play rip consolidate rip if you held this thing for like three months you're looking at what 27 to 50 looking at $23 moving a dollar 50 zero 15 to one on your money okay and we're not done one more one more even happens on the weekly time happens on the monthly happens on the yearly - what do we have a wide range bar breaking out of a double top resistance area right the stock smacked its head at like 1975 and pulled back came all the way back up and consolidated for several months this is a weekly chart I blew it up so you could see it it broke out of this one two three four five six seven eight nine ten eleven twelve thirteen weeks that's over over three months consolidation breaks out wide bar narrow bar rip okay it's a 35 cent stop and it's at like 1150 so you're a dollar 25 up on a 30s like four to one so I think I've made it clear I've answered the question does this happen on all time frames the answer is emphatically yes what's the next question how do we determine the target how do we determine the target I try to keep it simple some of you will be more complicated that's up to you guys there's a million ways to manage here's just a few in pts there's twice as many ways as this there's all or nothing' bar by bar pivots sell into strength combination hybrid approach the question the only question that matters is which one is best for you and the next slide is very very important guys it's out of pts told you I took five or 10 slides out of there imagine what the other 520 are like okay it's extremely important okay I want you to pay attention to this trade management considerations guys trading is all about expectation when it comes to management what are you expecting from the trade and are those expectations in alignment with your trading style and strategy here's the thing I'm getting at you can't do two things at the same time let me explain you cannot maximize profits and protect everything at the same time you cannot do both you cannot protect everything at the same time and maximize profits why because stocks wiggle there is occasionally where they just hit and run and never look back but that's not normal so when you go into a trade you need to know yourself very well are you a jittery person are you a relaxed person can you handle giving back profits while shooting for larger targets can you handle taking profits earlier than watching the stock move higher what type of person are you where do you fit into this give-and-take spectrum because remember you cannot try to go for a huge 10 or 20 hour move and protect every penny along the way you can't do it okay so you have to find a balance trade management is all about balance but to know that balance you must know yourself know your style and know your time for example guys I trade 45 minutes to an hour a day how would I do if I said I'm gonna do 15-minute bar by bar as a trail stop 15-minute bar by bar it would never work for me ever because I'm gone in 45 minutes so I'm not even gonna give the stock time to set up and move in the direction it needs to move up in right so in my time constraints 45 to 60 minutes a day I could never use that particular management because I'm not around long enough am I not at my desk long enough I hope this is making sense to you okay now if you're a super jittery person you're probably not going to want to manage on 5-minute pivots because 5-minute pivots take a long time to form an average pivot takes at least 4 or 5 bars to form well that's at least 20 minutes and you're a jittery person so if you're a jittery trader you might want to try either doing short-term all-or-nothing or perhaps one or two minute bar by bar but understand if you're a jittery person who's not gonna trade for a long time perhaps an hour a day guess what you're never gonna be a trader who gets huge targets there's nothing wrong with this but what where the problem comes in is when people don't match their personality and time constraints with their trading style let me repeat because it's like one of the biggest Nuggets you'll ever need to learn in trading the problem with traders lies in when they try or they make the mistake of not matching their personality and their time constraint with their trading style okay it's very important so everything is a give-and-take can't maximize profits and completely protect gains you can't completely protect profits and expect to maximize gains and this is the one issue that I have with most traders don't force a system on yourself see when I first started trading I almost I almost quit because somebody told me hey Jarrod if you want to be really profitable you need to management 15-minute pivots it's like the only way to make a ton of money so I thought well that's it that's the only way I can do it you know what the problem was I really couldn't do it I had a very hard time 15-minute pivots just took too long I was too too jittery of a trade or too nervous of a trader and there's no way I was gonna sit there for five hours waiting for those pivots to form that person may have been right that that was a profitable management strategy but what they failed to tell me was there are many other ways you can make money in this business you don't have to marry one approach okay you don't have to marry one approach so the approach I tell most traders this will answer the question the approach that I tell most traders to use is all or nothing specifically to our own or nothing it's the approach that unball uses it's the approach you guys just hit target on B Y nd on now how does it work it is insanely incredibly amazingly simple these are the only three things that can happen you ready just stop out on the trade it just won't work you'll hit your target on trade because it will work and if between 9:30 and 4:00 o'clock it doesn't stop out or it doesn't hit your target you'll just get out at 3:55 that's it they're the only three things that can happen there aren't there's nothing else that can possibly happen unless you make a mistake you will either stop out on the trade because it didn't work you will either reach your target because it did work or you'll get out of the position five or ten minutes before the market opens that is it that's it set your bracket order set your target set your stop and walk away you don't even have to be there because wait for it you can set a bracket order that closes at the market at the end of the day yes you can do that many of you don't know that you can set a bracket order that literally closes at the market closed so it'll either stop you out you don't have to worry about it it'll hit your target you don't have to worry about it and if you're not around because you're on the golf course it'll automatically hit mark it at the end of the day 3:59 why is this important it's important because for those of you who are portrayed managers I'm not a great trade manager I'm a great stock picker not a great trade manager it allows you to quote set it and forget it and walk away why is this important because the more you stare at your trades the more you mess them up and you know what I'm talking about those who've been trading for a little bit you stare at them and what do you do you nickel and dime them you raise your stop when you shouldn't you get out a little too soon you sell shares when you're not supposed to or you don't take a stop off if you just set your bracket order and leave say you're in two or three trades and you're like all right and just set your bracket and leave now you can't mess it up it's not up to you anymore and one last comment most people can't beat it most traders I've met do not beat all or nothing to are shoot for two-to-one targets so if your stop-loss is $0.50 your targets $1 if your stop-loss is 28 cents your target is 56 cents that's it it's a two-to-one target that is it you set the stop you the target and you you don't touch it you don't touch it okay if you're still in it when the market closes you either get out manually or have your bracket order exit you at the end of the day most people can not beat this so that answers the question what management do you use just two to one set it and forget it okay I don't use this exact management on mall uses this exact management and he banks are on it it's crazy okay here's an example wide bar narrow bar set it and forget it now why did I put this in here for two reasons one to show you it works and two to show you sometimes you'll leave money on the table guys I don't care when I hit my target I don't care if I leave money on the table because I hit my target some of you have that FOMO many of you have that FOMO this is why you chase trades because you have FOMO fo mo FOMO and many of you can't handle want to trade hit your target and then goes like three dollars higher I've never understood that because to me that's arrogance and you're going what do you mean Jarrod that's arrogance because you thought you were good enough to hold it for that three dollar target if you were you would have done it but you didn't make sense once I get a target I don't think about that stock at all in the sense of fear of missing out if it goes twenty seven dollars higher who cares I got my target I got my predetermined target I'm not Nostradamus I can't predict the future so when I got in my goal was two to one if I leave that trade with a two-to-one winner I did what I came to do period so why would I be upset if I did what I came to do too many traders get upset okay David P if you want a bar by bar trail it up go for it I don't have a problem with it I told you guys before and I'll show it again there's lots of different ways to manage all or nothing' bar by bar pivots selling to strength hybrid approach there's tons of different ways to manage I'm just telling you that 99% of traders I've met can't beat this don't beat this and won't beat this just telling you the facts now not saying you can't beat it I'm saying it's very hard to beat it and then you ask yourself gosh if I make an extra five or ten percent a year but I had to sit there all day bar by bar trailing pivot trailing when I could have literally just set my bracket and played golf is that worth an extra five or ten percent a year to me it's not to me it's not said it forget it walk away some of you like to sit at your desk for six and a half hours a day and lose your eyesight that's okay I'm not even being sarcastic it is totally fine it's just not for me and it's not like all or nothing's chump change it does very very very well very well okay but you have to be able to handle watching a stop go two dollars higher than your target I don't care I don't care okay many do believe they can falsely pick the top I tell this to people all the time when people ask me a question hey Jared where do you think XYZ is gonna go by the end of the day I said if I knew the answer to that then Jeff Bezos Bill Gates and Warren Buffett would be shining my shoes all of them would be stay be begging me to shine my shoes because I'd pay that much money if I could genuinely predict the future nobody can you have a predetermined plan and if you reach the goal of your plan you smile if you want to try to improve upon your plan then you rewrite your plan and then you follow the new plan but you never go FOMO you never get pissed when you when your plan works and you make money if you think you could make more than you rewrite it and then you follow the new plan okay all right is the three and four bar play valid in forex options in crypto man I get this question all the time the answer is yes yes and I don't know yes yes and yes here it is guys this is the Aussie n3 bar play wide bar right here what is this wide bar doing breaking above resistance followed by a narrow range bar blasting up to the target area okay wide range bar breaks resistance right here narrow range bar get in right here and blast higher this is Ozzy yen Forex okay personally I don't trade for it these are charts that unball is traded okay next here's another example and I'm gonna I liked this chart because it shows several things here's a wide range bar breaking out of a consolidation see it right here followed by a narrow range bar and then going higher the top and tail goes all the way up here but I put this on here for a reason one two three four five bars followed by a little tiny red bar and a big bar you see this do you know how often do you know how often I get people telling me they took a three bar playing it looks exactly like this it's up one two three four or five bars followed by a little red bar and then it goes higher and they go look at the three bar playing just took okay hold on one second guys wait for it let me just give me one second oh we're all the way back at the beginning bar number one must be a wide range bar igniting a move not four or five bars into a move not seven bars into a move not three bars into a move the first or second bar of a move preferably the first this is very important okay Groundhogs Day let's go back now to be fair three bar plays do not happen that often in forex they do not happen that often okay so if you're gonna trade Forex you're gonna need another pattern see if you trade stocks you can just trade the three bar play if you want 4x you're gonna need another stock are not another stock you're gonna need another pattern to trade cuz they don't happen that often okay but here's a wide range bar breaking out narrow range bar blast off now again here's to false three of our players back-to-back because these are not igniting bars it's already at the end of an extended move then you get the six seven eight bar consolidation okay one more all right here's a stock that was sort of in an uptrend so this one's a little bit tougher this one's tougher because this stop was in an uptrend I say stock but it's the euro US dollar wide range bar takes out support followed by a narrow range bar and it continues down here okay wide bar narrow bar drop wide bar narrow bar drop now see this you see this right here this is not a three bar plane this is not a 3 bar play why because this is the fourth bar of the move 1 2 3 4 bars 3 bar plays don't happen after extended moves and this is where YouTube pisses me off people out there trying to copy this pattern call it the 3 bar play and they're teaching people the wrong way to trade it okay just so they can get some views on their videos and more so it's pathetic we're here to make money guys right not to sit here and figure out how not to trade something so you'll lose more money okay now there are three I just showed you three Forex examples but I want to reiterate it happens in forex just not that often it doesn't happen very often now options you can use 3 bar plays in stocks and trade the option on it so on Mall took for example the daily chart of this traded it intraday on the three bar play and also traded the option on I do not trade options so don't ask me what a vertical spread is because I don't know because I don't trade them alright my point is yes you can use the 3 bar play in conjunction with options now unwell would be a better person to discuss that with you but he's sitting back chillin right now okay my point is is yes it can be used in conjunction with options okay it can be now last but not least quick I do not trade crypto I don't but if you can chart it and the three bar play is valid I mean this sincerely if you can chart something pet rocks you can probably trade the three bar play with it probably I don't trade crypto but I pulled this chart up off on the Internet wow that's not bad wide range bar takes out one pivot takes out another pivot and you have room down here okay I did not trade this chart all right but this is a 3 bar play on a on a chart I thought was pretty decent wide range again breaks down right here takes out this pivot and this is your tradable void this is your tradable void so you could have got in here your stop here and dropped bounce a little and dropped okay the point of making is I don't trade crypto so I can't tell you oh yeah check out these awesome three bar please do three bar trades in crypto but I just literally googled crypto charts was like oh there are a few out there okay so yeah the answer is yes you can I don't know how often it happens because I don't trade crypto all right now let's move on a $64,000 question how do you find the three and four bar play how do you find this thing it's not as convoluted or complex as you might think many people think that I have some magic wand or crystal ball that I shake up and pop out three bar plays nope doesn't happen like that for me you can certainly set easy language on trade station or trade ideas or whatever it is and you can try that but it's not what I do and you know what's interesting about it those of you that are in the chatroom every day I don't use any of that stuff how often do we find three bar plays in the chat room every day every day every single day okay so what I use guys tradestation is the platform that I use okay I use dollar gainers and dollar losers it's a hot list scan on dollar gainers and dollar losers off of tradestation this is just an example from I don't like a month back I don't like how that's not exactly even that's better okay so I should literally scan this list in the pre-market and this is what you need to understand guys you need to understand that every three bar play happens because of a daily breakout or a daily gap or a daily breakdown I want to repeat that every three bar play on the 1 minute 2 minute 5 minute 15-minute chart happens because of something that happened on a higher time frame so for example I would go down this list and I would click on Tesla I would click on Bui nd I would click on data or CRM and I would look at the charts I'll show you in a minute don't worry I will show you in a minute but this is how simple of a scanner I use I use dollar gainers which you're seeing here is the top 100 gainers and over here is the top 100 losers that is it and I literally just go click click click click click and when I'm clicking my charts populate I'll show you in a minute don't worry my charts populate and then they show me what it looks like on the daily in the 60 and I decide wow that's a nice gap that's not a nice gap and then I build a gap list you'll see in a second but before I get to that this is a new scanner that live traders is put out unball has created this ok it's very inexpensive it's a very basic scan if you take advantage of the pts today you get this for free with it all right you get it for free all right as a standalone product you'll have to email on more info at live traders for that ok I just put this out because this is something we just came out with in the last five days three days literally this week ok for those of you that don't have tradestation or don't use dollar gainers and dollar losers this is a great scanner to use you can email unmold live traders calm or info at live traders calm to get more information about it it's very inexpensive it's a lifetime membership there's no monthly there's none of that it's lifetime you own it ok all right now watch ok I want you guys to watch so right here on the left is dour losers down here is a daily chart down here is a 60-minute chart this is from a trade I took on Caterpie yesterday yesterday okay I want you to take note you go down this list oh there's cat I should have probably put a circle around it so you can see it see it right here my cursors on that's cat I click on cat I look at the daily I go wow that's a nice daily gap why is this gap nice its gapping under a green bar under one pivot under two pivots and it has room to 125 I know it's small guys I probably should have blown it up I apologize okay but I'm showing you my process I wake up get in front of my desk at age 45 I'm in usually on the west coast so 545 I go down my gainers and losers list in this case losers I got down to cat and I go whoa that's a nice gap its gapping under a green bar under one pivot under two pivots and it has at least five or six dollars worth of void see the 60-minute under this area right there put a line on that put a line on that under that area it's gonna drop so wait for it to show you that this isn't hocus pocus after-the-fact watch watch 902 in the morning long watches ups T X and blah blah blah let's go to short watches short watches Amazon NSCA and TM and cat 902 28 minutes before the market opened 10 minutes before the market opens cat is likely the best gap of the day we should look to find an entry in it cat is likely the best gap of the day we should look to find an entry in it this is 10 minutes before the market opens markets not even open yet 925 5 minutes after this post these are my favourites for the day with prices and guys I want you to take a quick look at this going to show you something again t-mobile over 80 cm G over 767 and I even said hey it's thin and spread e NS C under one even cat there it is cat I even gave the price that I want to trade it five minutes before the market opens and I even put it out there on Stockton my handle is scoutmaster for those who want to follow me on stocked wits calm my handle a Scoutmaster if you want to follow me on instagram it's Scoutmaster one like the number one Scoutmaster one okay guys just real quick on the Instagram front I have hundreds of people copy my account this is truth over the last couple years hundreds of people have tried to copy it if it doesn't say WWE live traitors calm with no phone number do not go with it it's some European binary horseshit crap okay they copy my pictures that copy my likeness it's ridiculous I report them when it happens but it happens all the time alright so 902 cats on my list 920 I tell everybody in the chatroom like you guys today cats my favorite then a 925 okay I write cat under 130 point 50 I even at 926 this is still on the West Coast time say guys cat now remember where did I find it I found it from my TradeStation dollar losers list and I liked the gap and the 60 minute so I put all this out there guys nobody on the planet does this I've never been in a chat room ever that they actually put the price out before the market opens they all put lists out everybody puts a list out nobody does this though okay and then what do I do with my favorites what do I do with these favorites I'll show you what I do I put a month thumbnail watches the green or the long watches the red or the short watches and the blue is the market where was the first cat my number one short watch team miss was my number one long watch let's go back T miss CMG to my two favorite Long's my two favorite shorts NSC and cat right there there we go cats on my list right there NSC is right next to it all I gotta do is look to the left right here my favorites are right there thumbnail charts two minutes and I watch these and guys for the first ten minutes of the market open that's all I do is stare at these I just stare at them my eyes do not leave this chart I just stare at them okay I just stare at them okay and then what happens wait for it this happens okay you saw it where it came from cat right there 60 minute chart daily chart I put it out there in social media and there's no point in putting it out there if you're not going to treat it so let's trade it there's the trade there it is a one-minute for bar play on Caterpillar people had plenty of time to take this trade because I put it out at 9:02 again at 9:20 and again at 9:25 and if you're on stock too it's again at 9:26 where did we get it one thirty point 55 where did I mention it one thirty point fifty a nickel where I mentioned it okay and I told you it's the best gap of the day that is how you systematically scan for these stocks the most important part about this is knowing what to look for on the daily chart if you don't know what a good gap looks like you'll never be a profitable trader the pts course has an entire chapter on gaps it's about 40 pages just on what a good gap is level one gap level two gap level three gap and all of the criteria you need to know what a good gap is under a green bar under two pivots with void nice gap find an entry okay find an entry I want to show you one more thing I am patting myself on the back a little bit here but I want to show you one more thing guys how did the favorites list do yesterday this is yesterday you can pull up these trades from yesterday that was team us over 80 CMG / 767 NSC ottawa in cat under 130 how'd they do well team is one up at dollar 57 from the entry I suggested CMG went up $22 from the entry I suggested oh by the way it's four minutes before the market opened NSC dropped $3 and cat went what two dollars and five cents that was my entire favorites list every one of them worked all of them were put out there with prices before the market ever opened now why is this possible and how is that possible because I know what good gaps look like now does the entire list work every day no sometimes half the list works sometimes 70% of the list works it's rare nothing works is extremely rare my goal when I put out my favorites list is to get at least two of my favorites if I have a list of four or five ideas my goal is to get to maybe three of them why because it's really hard for me to get all four of these at the same time it's really hard things happen very quickly my goal isn't to take all of them my goal is to take to it okay now some people are asking well geez Jarrod that's awesome but how in the world do you figure out those entry points before the market opens it's kind of weird you said you're not Nostradamus so how do you figure it out check out pts there's a whole chapter on pre market charts and what to look for on pre market charts I use pre market charts in conjunction with my gaps in between pre market charts and the gap itself I determine where the entry level should be okay this is yesterday all right yesterday meaning July 24th you want to go back and take a look what team of CMG NSC and Kat did yesterday go for it okay and we talked about today just throwing it out there guys was Tesla not on our favorites list today we traded Tesla short remember yes Tesla was on our favorites list today right Tesla was on our favorites list today okay all right the first bar here is about who I don't know $1 so yeah I would consider that if you take a look if you take a look at cat on average what's an average bar on a one-minute chart look like on cat average bar on a one-minute chart of Caterpillar I would say is probably about 30 or 40 cents maybe a little less this one was a dollar right so I would say yes all right I would say yes okay all right how do you buy Tesla on tradestation easy you just click click the blue area to buy it in the red area to sell it it's not it wasn't hard to borrow today okay all right next chapter guys we're only on slide 50 we've been here over an hour and I have 30 more slides to go for all right I told you we're gonna be here awhile how often do three and four bar plays happen how often do three and four bar plays happen every single day every single day there's not a day that we don't find one in the chat room other days we don't take some yes but there's never a day they don't happen guys this is Intel 15-minute three bar play okay on the same day a one-minute roku 3 bar play happened on the same day okay a 5-minute CDN a three bar play happened okay they happen every day in case you thought this day was just a particular fluke here's another one all right from a different day here's a one-minute on TSS a one-minute on SG a 5-minute on vivre a five-minute short on a MTD a 15-minute on into all on the same day all on the same day okay they happen every day here's another day okay there's a 15-minute on GM a 15-minute on is r.j. a five-minute on a MTD a 15-minute on IBM a two-minute on WB okay every single day these happen guys we took one today on Tesla we took one yesterday caterpillar okay took one of the day before in the day before we've taken one every day this week sometimes we take two or three three bar put I get this all the time well how often do they happen every single day every single day okay question is after a gap you see on the daily morning if the if the three or four buckle does not happen do you know if four so how you will take later in day no I'll be gone by 10:30 so I won't take it later in the day all right I won't take it later in day I just got a thousand bucks on wall just broke his plan all right I just got a thousand bucks thank you one more I love you unless unless you messed up with the target earlier I guess it's 54 I maybe he didn't he didn't it looks like you followed his plan nice job by the way guys nice job on byn D and Ford today you got four hour today which is fantastic and another couple are on that Tesla six our day today well done guys alright four out of five today are sorry three out of four four out of five isn't bad you'll take an 80% banners back to the point guys three bar F plays happen every day every single day okay guys you can take them on 15-minute charts if you're not happy taking them on one minute charts at 9:33 because you don't like the market open wait till ten o'clock and take them on fifteen minute charts like the GM here okay if you don't mind taking them early off the open then take the W be on a two-minute chart or you know take whatever meaning they happen on every time frame okay they happen on every time frame now real quickly because I'm not gonna spend much time on this alright guys if they happen on every time frame it's impossible for them to only happen at the open right by definition true or false by definition if they happen on every time frame it's impossible for them to own to to be only available at the open 15 minute chart you need at least three bars that's at least 10 a.m. that's 30 minutes after the open if they happen on 60 minute chart it has to be at least 11 or 11:30 at least right okay so they can happen at all the time now a lot of people and I'm not gonna spend much time on this a lot of people don't understand what shorting is shorting is making money when a stock drops can you make money when a stock drops the answer is yes have you guys ever seen the movie The Big Short did you ever wonder why it was called the Big Short right Brad Pitt was in that and what's that guy's I'm Gosling Ryan Gosling right there's a whole Hollywood Margot Robbie was that it was nice there's a whole movie on it the whole financial crisis you can make money when stocks drop it's called shorting you borrow the shares from your broker at a certain price and you repay them back at a lower price and your broker owes you the difference it's basically a bet between you and your broker technically it's not your broker because it's somebody else on the other side of that it's not the point it's a bet between you and somebody else that you think the stock is going lower and they think the stock is going higher so they say all right I'll let you borrow those shares at $100 if they go higher to 101 you owe me that dollar but if it goes down to 99 they owe you that dollar okay you can I did a video on this by the way on YouTube so you can you can search for that you can look at investopedia.com you can google shorting but the answer is yes yes yes you can make money when stocks go lower I get this question on youtube all the time and some people think I'm like I'm lying or something oh this guy's a fraud nobody makes it I thought you know since when do you buy high and sell low and make money like you should see some of the comments I get it's because it's naive they just don't understand guys shorting just so you know he's been around since 1828 as we know it in the United States before that it was around in the 1500s but as we know in the United States 1828 so it's not like it happened yesterday okay there are a lot of people out there truthfully that don't know what shorting is I'm not knocking them they just don't know I only knocked them when they think I'm scamming them or some of them Nick no this has been around a very long time okay here are a couple examples we just saw caterpillar here it is again making money with a stock lower we got in at 1:30 point 55 we got out it like 129 they paid us that dollar fifty two dollars and fifty cent difference that made me seven hundred and seventy dollars yes happens okay here's another one in UNH you saw earlier we got in at 265 we got out at like two sixty three we made eight hundred and seventy eight bucks okay yes yes and one more yes you can make money when stocks drop it's called shorting that's it that's all that's all I want to get at I don't want to spend much time on it I just want people to know that there's nothing funky about it there's nothing strange about it there's nothing fishy about it there's nothing scammy about it no Wall Street does it every day we do it every day okay all right you must have a margin account to be able to short you must have a margin account to be able to short okay at least in America overseas I don't know if their rules are all right what platform do I use I use TradeStation I get this question top three most asked questions what platform do I use I use TradeStation all right I use TradeStation I've been using it for almost 15 years I love it I think it's a wonderful platform okay outstanding platform okay now to that point to trade unlimited in the United States of America okay in the US of A you have to have at least twenty five thousand dollars in your account at all times to take unlimited trades if not you are limited to three trades a week somebody just told me that if you have a cash account you can take unlimited trades but there's no margin there's no leverage to it right pattern day training account typically generally has leverage of four to one intraday and two to one overnight you can open account for a lot less cause you can open account for 500 bucks thousand bucks whatever okay but you'll be limited to three trades per week now if you're overseas this does not apply to you if you are overseas this does not apply to if you're outside the United States none of this applies to you you're in the u.s. that's the limits now what are your other choices if you don't have 25 grand what are your choices your choices are using offshore or international broker a non us-based account I can't recommend them because they're not us-based but you can use one search Google they're probably out there okay if you're international you don't have to worry about that because it's not a problem you can join a propped firm proprietary trading firm but you will need a series 57 license and you will be FINRA regulated you will have to do continuing education through FINRA every year okay and on top of all that they get to see this is the truth I'm not Josh Enya they get to see all of your investment accounts okay whatever prop from you drunk joined by law and you have to pay them for this right $25 month so let's say you have two trading accounts an IRA account and 401k what's that for accounts okay they have access now they can't use those or touch your money okay but they can see all your investment accounts to once you're licensed it's it's kind of crazy what they've done in the last 10 years but to join a prop firm usually can get in them for like 3 grand you get around the pattern day trading rule but you have to take a 200 question test and then be FINRA regulated I'm not gonna get into it I used to have a prop account years ago all right there's nothing wrong with them ok it allowed me to turn 20 100 dollars into a hundred grand so there's nothing wrong with them but they get to see your entire life and I got tired of that all right you can open multiple small accounts right if you have five grand open 3 $1,700 accounts now you get 9 trades a week ok I get 9 trades a week until you get above that 25,000 then just put it all in one account or you can swing trade with 3 trades a week there's nothing wrong with swing trading right holding stocks overnight there's nothing wrong with that ok I just wanted to go through that now like I said here is what my platform looks like as part of my deal with TradeStation I will at some point in the future likely be giving out my TradeStation platform layout codes okay so it'll be easy for you guys to copy if you want but this is my order entry screen ok my main order entry this is my level two here on the left all right by short I have a five minute a 15 minute a two minute in the one minute on my main screen and these are my fills my account number is up here my account number is down here blah blah blah okay that's off traces and now this is my scanning monitor right here dollar gainers in dollar losers I have a five minute a 15 minute a two minute a sixty a daily and then I have the market I have some watchlist over here this is old so ignore it but when I scan I just go click click click and it populates all of these charts and that's how I scan I use dollar gainers and dollar losses on a hot list through TradeStation and it populates my charts my thumbnail watchlist is over here I showed this to you before my long ideas go on the top my short ideas go on the bottom and I just stare at it for the first 10 minutes that people don't believe me I'm not kidding you when I put together my gap list I put them all in these little thumbnails they're about 3 inches by 3 inches maybe 4 inches by 4 inches something like that I typically use 27 inch monitors and I just stare I just literally sit here with my hand on my on my computer going alright alright what's somebody commenting in a chatroom okay I'm still looking so when I throw out ideas it's because those ideas are coming from these thumbnails Oh guys watch Tech do guys watch keys right that's all I do I keep it very very simple okay and you can see here this is what it looks like in action right you can see my account number is there my account number is here my account number is down here okay I trade real money every day all day all right now 5 minute 15 minute 2 minute one minute you can see me even my bracket orders when I put my bracket or as you can see those down here as well alright this just happened to be a 4 bar play we took on AIG but this is what it looks like in real time there's the bid there's the offer okay alright just throwing it out there so that's what my TradeStation platform looks like okay I use for one last time I use TradeStation okay I've been using it for a very long time I really like it okay all right now this chapter is an important one it's important because let's be honest and I'm guilty myself I'm guilty myself you don't really get to see much of the the BS online because people want okay people want you to think everything's perfect it's kind of like Facebook you ever noticed people always just unless somebody passes away that aside they always put like their perfect life on their instagrams their perfect life well that's the same in trading okay that's the same in trading all right so let's yes Pleasantville that's a good way to put it I like a date all right this is a failed three bar play on Netflix you know cuz shocker they don't all work this is a nothing wrong with this wide range bar takes out this pivot takes out this pivot we get a resting bar we get in at 360 535 my stops at 360 310 and boom now in this case we only lost 20 bucks on it we didn't take a full stop because after this second bar so our third bar right there we raised our stop loss we raised it but it did not work if you were doing all or nothing like on well you would have taken a full stop out you would have taken a full stop out why there's nothing wrong with this pattern so before a hundred people start going well why didn't it work why didn't it work I don't know there were more sellers than buyers I suppose right I don't know why it didn't work okay wide bar it did everything right it broke over the double top it was near a whole number a reasonable stop-loss on the 15-minute yeah it moved up like eight dollars that could be a reason but we could say that about every trade there's always one little tiny thing that's wrong with it just it's usually small it didn't work okay and just in case you think it's the only trade in the history of our trading that didn't work nope let's use AIG why didn't I put this one up here I put it up here because this is a Tale of Two Cities right so we have a wide range bar here with a narrow range bar and look at it if peekaboo is over 51 just take I know it's small and I apologize that it's kind of small guys I do and I want you to see this because take a look I was green almost $300 on this trade and this is what ultimately ended up happening I lost was at 3 360 so I was green this is one of those trades that went from green to red you got to sit there and just suck it up okay we got in trade popped up 31 cents looking good you're sitting there going sweet we're gonna hit target we need another 40 50 cents we're golden blah blah blah blah blah you're thinking about how you're gonna spend your money ba ba ba ba ba and five six minutes later you're gonna write this is a failed three bar play I put this in here to show you that they'd all just like peekaboo buy a penny and roll over sometimes they tease you they build your hopes and dreams and then they roll over on you you have to be able to handle this I lost 360 bucks on it oh well I lost 300 some bucks on western call today lu v today as long as you win one you lose or when you win you win more than you lose okay so that's AIG oh here's another one right so didn't work take a look at take a look at the 15 on tme see the wide bar narrower I see it right there see the little tiny bottoming tail where my curse is again I apologize it's it's small okay what did I do here I overlaid the 15 now this is what it looked like when we took it look at the right-hand side guys okay look at the right-hand side of the screen this is the pattern we took tell me that's not textbook that's beautiful it's perfect it's awesome it's incredible right this is what happened 30 40 minutes later so we took a great pattern in real time we did nothing wrong like it was a good pattern and then 40 minutes later and went against us so I took a picture of it when it was working but it ultimately turn the corner and stopped us out right so when we took it it looked like that it looked like that it looked like that I took this picture an hour later so you guys can see it turned around and didn't work okay they don't all work but they don't all have to work they don't all need to work you only need to bat 50% on two to one right if you lose 300 on a loser and win 600 on a winner and you bat 50% you just made 300 bucks that's a that's a good number right in terms of batting average 50% win to lose one win to lose one right when two to one lose one to one okay now this is the stuff what I mean nobody talks about I mean nobody talks about okay I don't know why but they just don't and this is one of the areas where I know when I go into a certain chat room when somebody's full of or not when they're completely fake and these are the situations and times where I know it what we have here guys is a beautiful three bar play right a nice gap down a wide bar in every bar oh my gosh this stop wasn't good it was outrageously incredible 3601 or I should say who should be $35.99 let's change that do it in real time okay 35 95 or 91 I'm losing my mind $35.99 right this thing dropped to like thirty three fifty one second about two dollars and fifty cents on a thirty five cents thought what's that like eight to one on your money seven to one on your money okay Wow think about this for a second that's a perfect play and it worked but no fill equals no money no sugar well how many shares printed under $36 48 hundred and then very few remember you're not the only person in the world that wants to short this stock you're not I tried to get this and I got skipped it doesn't matter how far it goes I didn't make any money you never see this every time I go to a chat room they they somehow get filled on every single trade they take everyone and I know when they didn't get filled cuz I can see the shares that are printed oh yeah I took four thousand shares that well where did those shares exactly print again you know could you show that to me no this really happens okay and it happens more often than you think here's another example guys how beautiful is that two-minute three-bar play on Baidu okay yeah exactly I love that Covina thank you yes dark pools I remember one particular educator who's been around a very long time saying yes I'm the second highest volume trader on the NASDAQ so I have access to dark pool I'm like I worked on Wall Street and not all Wall Street banks have access to dark pools but you know you're special right it's unbelievable then the horseshit that people play anyway okay wide bar narrow bar drop this is a perfect pattern there is absolutely utterly nothing wrong with this 3 bar play and it worked it worked ok but you're not getting filled at 177 49 how many shares is 0 48 47 46 45 44 43 42 41 0 shares the only way you got this is if you put your order at like 51 52 or 53 and then you're anticipating and that brings out a whole nother ball of wax right out of the pts course we talked about anticipating but take a look guys in a 30 cent range this stock printed 100 200 300 600 900 shares in a 30 cent range you're not getting filled and if you do get filled because you were dumb and you used a market order you would have gotten filled like 30 or 40 cents lower right 30 or 40 cents lower that's crazy this happens okay here's another example ZM ten-minute 3 bar play last month we broke under this support area we had room down to here wide bar narrow bar drop I called it in the room 9750 by 99 right called it in the room there's my order there my order 97 57 I anticipated by 7 cents I didn't even try 4 9 he said I tried to get in sooner I even gave it 24 cents worth of room I started my order in 97 57 okay I put the limit down in 97 33 and I got 0 shares of it zero shares that's real trading guys and I want you to also take note I was only looking for a couple hundred shares I wasn't even looking for a thousand shares okay my point of making is is most of the time like 98 percent you're gonna get filled but this does happen today here's another example I got six hundred dollars out of Tesla I should have got 750 why I had my platform just locked up on me just locked up it's nothing I can do about that my internet connections 300 Meg my computer is new it's not on my end once in a while you'll have a tech issue once in a while trades will skip you once in a while you'll take slippage hence why I called this chapter not all trades work plus BS because training can be BS sometimes how many people how many places have you been to in this industry or people talk about this topic I have a whole video on it it's called why trading is so hard it'll hold you to be my trading is so hard we talk about topics like this nobody wants to talk about these things because they're worried it might make them look bad no it actually makes you look like a real trader when you get skipped why because it actually effing happens right it actually happens if you never get skipped I'm really skeptical now you if you get skipped too much then I don't think you're a good trader but if you never get skipped and you're not trading BAC every day because then you'd never get skipped I'd be very concerned right it does happen now it shouldn't happen every day should happen rarely but it will happen your platform will freeze occasionally like today your internet will go down occasionally like today your computer will have a virus scan right in the middle of the day randomly times that's the BS part of trading okay because we can't compensate for that you can try to mitigate like I tried to get in at 97 57 I tried to mitigate try to get in a little early cuz I knew it was spread II and it still skipped me I did the best I could you just move on like when an hft shakes you out you just say - good tip your cap and you move on today I get frustrated in real-time but I'm over it I'm over it what happened today and Tesla's what happened today and Tesla's nothing I could do about it you move on okay now one quick comment somebody's saying for example you IND is a hard to borrow stock yes bi y and D is a hard to borrow stock but in most platforms guys it says H be hard to borrow or h t be hard to borrow okay you there's a place that you can usually locate shares okay short locate alright let me see if I have this up if I have it up I'll try to I'll try to show you guys real quickly I may not have it quick access because I don't want to waste too much time while I'm doing this but let me see if I have it quickly here if I have it quickly I'll show it to you but I'm eight like I said I may not give me one more second yes no yes I do good give me one sec guys watch on my platform and TradeStation I can go to my intraday short locate and I can request notice they gave me short ZM but they didn't give me GN f - okay all right you see this ZM g n ft door I know you're perfect I know you're perfect when you say get real man that's your fault entire cuz you've never had an update randomly out of nowhere because I know you're perfect right because you know BS never happened sometimes you know like when good things happens to bad people but I know I I'm just one of the rare people where I'm not perfect I live amongst a world of seven and a half billion perfect people though anyway back to the intraday short locate sometimes you get approved like here and sometimes they reject you so this is an example where I got a thousand shares of ZM which was the stock you just saw but they they didn't have any shares of G IFT because I'm not perfect if I were perfect they probably had 2,000 shares of this for somebody else right but notice the interest rate guys okay I don't pay any money on this intraday see I get a lot of people saying oh my gosh it's so expensive almost never is there a fee for it now if you hold it overnight that's different if you hold it overnight that's different okay but this is a good example because you can see one where I did get the shares and one where I didn't get the shares but it just says create requests I type in the symbol the account number and you're good to go most platforms have a short locate okay most platforms have a short locate all right now there we go back to this give it a second this was ZM so you can see where it says hard to borrow at the top and I just showed you I got a thousand shares of it I still got skipped though right I still got skipped okay now we're getting towards the end we're at this summary all right this is just a review guys Long's and shorts and then at the end I'm going to show you a couple more little things all right wide bar multiple narrow bars continuation movie yes you can make money going lower yes you can make money when a stock goes lower okay caterpillar from yesterday many of you seen this like 19 times now yes you can make money when a stock goes lower wide bar to narrow bars drop all right here's one on Halliburton from this this is this week to perfect this is this week also all right here's wide range bar on Halliburton now no see that right there that pre market chart I really like how higher today but not sure of the entry yet stay put I I typed this out there at 9:26 in the morning on social media I really like how hired today I'm not sure the answer yet stay put if you were in the chat room well got it 23:14 by 2290 right I put it out there was at 9:38 okay wide bar see the bottom and tail I loved the bottoming tail wide bar to narrow range bars and blast off okay it does it moves slowly it's a slow moving stop I agree okay but this was before the market every opened ever opened I was on how this was a really nice gap that day okay now I'm gonna show you something from several years ago all right I'm saying this one more time I don't use prop accounts this was like six or seven years ago but I'm showing this to you for the international traders out there the prop traders out there and the people with small accounts this is for you some of you have seen this before but this is for you guys it doesn't take a lot to make a lot but I want I want to qualify this when I did this when I turn 2165 into fifty one grand I was not a new trader if you are a new trader with a two thousand dollar account you are not gonna turn it into 30 40 50 grand in your first year or two you'll be lucky if your account is still two thousand by the end of the year after you pay commissions and platform fees I'm telling you though that it's not the amount of money you have it's how you trade it's not the amount of money you have it's how you trade okay but I did not do this as a new trader I want that to be very clear because I'm I'm tired of the get-rich-quick people I get emails I get like almost a hundred emails a day guys and I'm tired of getting emails from people go hey Jared I have 700 hours do you think I could make a living in this business maybe five years from now maybe but not right now you can't you're just not good enough to turn seven hundred into ten or twenty grand you're just not good enough and that's that's normal you're not good enough to beat Tiger Woods either well because he's been playing golf for thirty five years and you've never played before right same here it doesn't take a lot have done this multiple times in my career okay so it's not about the money you start with but it is about the experience and education that you have it's very important guys to understand that it's very very important to understand that you can do it you're just not gonna do it in your first year or two it's gonna take you a couple two or three years to get good at this okay yes swing trading is in pts okay so I wanted to bring that up not to rub it in because I don't want you guys thinking 4000 percent is normal on a retail account if you make one to two hundred percent a year you did a very very very good job this account was leveraged like fifty to one right at one point was leveraged three hundred to one okay but I still never took more than one to two percent risk ever all right now let's leave you guys with this this is important okay this is just a summary of everything we talked about today not everything but a lot of things so that you can kind of take a picture of this slide if you will and this is kind of a just a basic summary all right the three and four bar play is valid in all time frames from 1-minute microcharts to long-term yearly core charts and everywhere in between answer that question to check they can happen at any point during the day not just at the market open I prefer them at the market open mainly because I only trade the first 60 minutes today all right check answer that question they are both valid long and short yes you can make money shorty three bar plays are valid long and short check patterns happen every day okay they happen every single day check the wick the topping tail the body it's part of the bar you have to consider the wick it's part of the bar okay check the entry on a three or four bar play is the nanosecond that bar three trades above the high of bar one whatever the high of bar number one is whatever the high is the second at bar three trades above that high you are in the trade your stop-loss goes below bar number two check yes it works in forex but it doesn't happen very often check you can use options to tray two three and four bar play I don't trade options but you can use them check okay my target is always two to one wrist reward with the goal of a 50% batting average now I don't always get two to one sometimes i phuddle around and sell a little bit too soon or make a mistake but my goal is to get 2 to 1 and my goal is to have a 50% batting average check trying to think of there's any other questions I missed out there on social media because I get lots and lots of questions ok so I'm getting down towards the end and I'm going to save a couple minutes to answer questions for you guys to get more great educational content subscribe to the live traders YouTube channel this way you'll get email alerts every time I upload a new video

Channel: Live Traders

Views: 506,006

Keywords: stock market, trading, stocks, traders, trader, daytrading, daytraders, day trader, day trading, day traders, daytrader, online trading, technical trading, learn to trade, how to trade, live trading, trading education, trading seminar, live daytrading, invest, investment, money, wealth, fredom, vacation, flexibility, wallstreet, boss, noboss, power, business, millionaire, entrepreneur, noexcuses, tradingplan, success, 3 Bar Play

Id: xEjUd82NVVg

Length: 103min 32sec (6212 seconds)

Published: Fri Jul 26 2019