BACK TO BACK Big Green Days

What's up everyone? All right. Well,
here today I'm going to give you a live
streaming recap of my trades from the
morning. We are sitting here in the
green and I want to come on here and do
this recap right and early because guess
what? Today is going to be a double
recap day. One recap for the big account
and today is day five of my small
account challenge of trading with a
$2,000 cash account using WeBull. So I'm
going to do a first recap for my big
account right now and then I'm going to
upload the WeBull small account
challenge probably later this evening
like 7:00 or maybe 8:00. It's going to
be later this evening. So we're going to
have two recaps today, a double recap
day. That's always a good day, right? So
guess what? We've got a stock this
morning that is on my five pillars of
stock selection scanner. Okay, let me
jump on the screen share so you can
check it out. Here we go. We've got PLRZ
right here. This is the scan This is the
stock that I'm looking at. It's on my
scanner right here. The five pillar
scanner. So that means it meets all five
pillars of stock selection. All right,
so
um let's see. Now by the way, for those
of you guys There we go. Fixed. All
right, perfect. Uh thank you guys who
are tuned in here.
Uh appreciate you giving me the heads
up.
Uh I think we are good. We are uh we are
live. This is a live stream. So we've
got YouTube tuning in. I've got our main
chat room tuned in and we are now uh
online and hopefully uh everyone can uh
hear and see me well. So PLRZ uh this is
the stock that I traded this morning.
Uh I know you guys probably want to see
the P&L uh but before I reveal the P&L,
let's just kind of set the stage for the
stock.
Okay, so we've got a stock right now
that's up 120%.
That's nice. The relative volume is
11,531
times above average. That's very
significant. In fact, if we look at the
daily chart on this, what you'll see is
that this is a stock that has sold off
for a long time. It's got a history of
reverse splits. We know that's very
common and in fact, uh you know,
this is a very typical chart among small
cap stocks. If you recall our big short
squeeze that we had last week on SMX,
SMX um
very similar chart, right? History of
reverse splits, pretty awful and then
all of a sudden down here and I got to
take off my 200 moving average so we can
actually see the chart better.
All of a sudden on uh Wednesday and
Thursday last week, this thing squeezed
from about $5 a share all the way up to
$78. Okay, that was a huge move. So
today
PLRZ is the stock that hit my scanner.
As of right now, it has 45 million
shares of volume. But let's back this up
on the small cap high day momentum
scanner. So I'll show you when we got
our first alert on this scan. So this is
4:00 a.m. So this is when pre-market
begins, 4:00 a.m. And you can see the
first stocks that hit the scanner were
TAOP. So TAOP and QTTB. TAOP popped up
on the scanner and it did squeeze. Uh
this is one that actually began the move
in the after hour session um yesterday.
So squeezed up after hours as you could
see right here. The first pullback
pattern worked well for a dip and then a
squeeze higher. That's a That's a
pattern that I really like to trade.
4:00 a.m. it pops a little higher and
then it ends up selling off. So TAOP is
no good. QTTB, this one uh this is one
of the ones that was moving yesterday
uh which was fine, got a trade on it.
But this morning popped up at 4:00 a.m.
but again, uh no trades for me on that
one um today.
FTEL pops up at 4:00 a.m. as well. No
trades on this one. It's a little
cheaper. It could have worked for the
small account but I didn't break the ice
on it. And then coming up towards 7:00
a.m. FTEL hits the scanners again. JASPR
hits the scanner. SBEV hits the scanner.
We'll talk about this stock um a little
bit later uh because this one was um
interesting.
And then PLRZ hits the scanner right
here at $4.40.
Right there is where PLRZ hit the
scanner. Now I've got a new scan um
which we're going to be releasing to
members here at Warrior Trading. We've
been testing it out. It's a five pillar
alert scanner. So this is actually going
to give you an audio alert when a stock
meets all five pillars of stock
selection and PLRZ uh triggered this
scanner here at 7:56 and 54 seconds.
Uh which was the same time that it hit
our scanner right here.
So in fact, um this uh so PLRZ hits the
scanner. I pull it up and um
I look at it and I see that they have
news that came out at 7:55 a.m. The news
was announcing successful completion of
key manufacturing of scaling milestone
for its nasal spray platform. Now I for
one um
I can't say no to a little Flonase in
the morning. Um
this stuff is very effective. Now of
course, I don't really know exactly what
kind of nasal spray they're working on.
Um but it it seems to be that the market
has reacted very positively to this
headline. So we've got the stock
immediately squeezing up the instant it
hits our scanner. So I'm going to hide
this here.
Now I'm going to adjust this to auto and
let's see. I'm going to zoom in on this
on our 10 second time frame. So
basically the instant that it hits my
scanner here, I already know that this
stock is something I I should pay
attention to. Based on the price, the
float, the relative volume already being
100 and even though the stock is only up
40% so far on light volume because it
has news, I might be one of the first
people to see it. So these scanners are
tuned to search for the needle in the
haystack, to look for these types of
stocks in real time. This is what a lot
of traders struggle with is finding
these in real time. So now we're going
to get into that first trade that I took
on it. Before I do, let's go over here
and jump over to Warrior Trading and
jump the dashboard. I'm going to jump
over to warriortrading.com and let me
remind you, my name is Ross Cameron.
That's me right there. I'm a full-time
trader and I funded my first account in
2001, nearly 25 years ago. Now when I
funded my first account in 2001, I set
out with a goal of being an investor. I
was, you know, inspired by some of the
great investors out there, you know,
Benjamin Graham, Intelligent Investor,
Warren Buffett of course, um Peter
Lynch, head of Magellan Fund at
Fidelity.
And uh I was inspired. So I funded the
account with $1,000 and that was harder
earned money in those days. And uh
I invested in companies that I was
familiar with.
Over the course of the summer, my
portfolio remained more or less
unchanged.
>> [laughter]
>> Uh I made more money that summer mowing
lawns and uh that was fine.
But I I got the I got the bug for
wanting to learn more about the market.
And so although I ended up giving up
investing at that time uh for a while, I
came back to it during the Great
Recession uh that we had beginning in
the stock market crash of '08. Um at
that time,
I had a little bit of money in the
market. My father um
who had uh passed away the year before
that uh
at the age of 61, he passed away from
cancer.
He had left me money that was intended
to be his retirement uh which was the
money that he had gotten when he sold um
my grandmother's house. And so that
money uh was about $200,000 and it was
split between me and my younger sister.
And so that money got invested in the
market uh and I actually wasn't able to
use it until my younger sister turned 21
years old. That was like the the the way
he had wanted it. So the money was
invested in the market. I didn't have
any control over that. That was just the
terms and I watched it lose a lot of
value in 2008.
And I thought to myself, you know,
if I could trade this money myself,
um
I mean I'm setting the bar
the the current financial advisors set
the bar pretty low. If I can do anything
less than losing 30% a year, um I'm
going to be off to a great start. And so
I decided um eventually to cash out that
account and to start uh trading with it.
Now what I didn't realize was that it
would actually take me years to be able
to consistently make even just $200 a
day. Uh so I ended up making my first
million dollars in 2019.
That's when I crossed over a million
dollars of profit. And at that point I'd
been in the market, well, originally
since 2001.
Now in 2013,
uh I created this YouTube channel right
here. And thank you guys who are all
tuned in on YouTube listening. Um so
when I created this YouTube channel, I
had the idea of um uploading videos
about day trading patterns and
strategies and setups and hosting them
on YouTube and embedding them on
warriortrading.com
uh which at the time was called Day
Trade Warrior and it was a WordPress
blog. And all I did with YouTube was I
used it for video hosting. But as it
turned out, I was actually getting more
views on YouTube than I was getting on
my blog. People were just going straight
to the video source. And so, I continued
uploading videos. It's now been 12 years
of uploading recaps and strategy
episodes and everything else to YouTube.
In 2014, I taught my first day trading
course. In 2015, I wrote the first
version of How to Day Trade The Plain
Truth. We've got um the updated version
right here. And
I say all this because I want you to
know that
I've been in the trench every single
day.
Whether it's a hot market or a cold
market, I show up. And this right now is
one of those small windows of
opportunity where we happen to be
running our Black Friday Cyber Monday
sales. But the Cyber Monday sale will
end tonight at midnight Eastern Standard
Time. So, 9:00 p.m. Pacific time. And I
want to give you guys, you know, the
full heads-up. We're not extending the
sale. You know, I see other people
sometimes do that. We're not extending
the sale. The sale ends tonight at
midnight Eastern. And so, this is kind
of your your your last chance if you
want to take advantage of our biggest
sale of the year to take the leap and
become a member. Our Warrior Starter
membership begins at $597. This gives
you access to my course Day Trading the
Basics. And these courses, by the way,
have been ranked by Investopedia as the
most comprehensive day trading course
for 2025 and by Business Insider as one
of the best day trading courses for
2025. So, we're really proud
of how these courses have been received,
not just by other traders, but you know,
by the sort of
you know, well, I don't know what you'd
say, the critics, so to speak.
So, when you become a Warrior Starter
member, you'll have access to my Basics
course and then you'll also have access
to
a month of my live broadcast, a month of
a simulator, and a month of Daytrade
Dash, which is the platform that I use
every day for charting, scanning, and
breaking news, which is where I found
PLRZ. If you become a Warrior Pro
member, you'll get access to the
software for 90 days. You'll get access
to the simulator for 90 days and you'll
get access to my live audio video
broadcast and my chatroom for a full
year. And by the way, those of you guys
who do decide to take the leap and
become a Warrior Pro member, I want you
to know that we've got your back and we
give you a 7-day money-back guarantee.
So, you got 7 days to go through the
program, to trade side by side with me,
and give it a shot. Now, for those of
you guys that joined, let's say
yesterday or the day before,
why don't you share with those of you if
you're already on YouTube, why don't you
share with those on YouTube
what your experience was like, let's
just say today or even yesterday.
So, if you recall, yesterday we had
some, what would you say, fantastic
momentum. We had a stock that basically
went straight up. I mean, this thing was
unbelievable. That was yesterday. Today,
it happened again. So, today we had PLRZ
and the stock went up over 100% as you
could see right here. So, when it first
hit my scanners, what was I looking for?
Well, the first thing I do is I look at
the stock purely from a just a technical
point of view. I'm just looking at the
criteria on the scanner. So, right here,
when it first hit way back there at was
it 7:55, 7:56,
right? The news came out at 7:55, which
I'll say is an unusual time for a
company to put out breaking news, but
nonetheless, it's when they put it out.
So, the news came out there and the
stock immediately pops up on my scanner.
I see it and I recognize the news flame.
So, we've got the news flame right
there. I see the relative volume is 100.
Even though the total volume is light, I
pull it up, I click on the news, and I
see it's moving. And so, from that point
forward, I know the stock meets my five
pillars of stock selection. So, now I'm
going to back up the chart and show you
exactly where I traded this. And I
suppose
now is a good enough time to reveal my
P&L, which is that I made $45,373.27
on this stock. Now, I'm not going to
show you my WeBull
small account challenge just yet. I
traded in the small account today as
well, but first we'll just focus on
PLRZ, which is currently sitting at 120%
with 52 million shares of volume. So,
when the stock first hit my scanner, it
immediately surges up right here to 420.
And when it first hit 420, I was like,
"Hmm, you know,
that's a little tricky.
I was a little bit worried about this
because it popped to 420 and then it
flushed all the way down. It actually
hit about it was 408.
Then it drops back down and then right
here it curls right back up to a high of
440.
And so, I want you to look at this
pattern here.
The safest entry on this, in my opinion,
was right here.
This was the safest entry right there.
That's not to say you couldn't have
gotten in down here. It's a little
riskier or maybe bought the break right
there. It's also a little riskier. But
this right here was a really nice little
pullback. So, it dips down, it pops up,
pops up again, it dips down here, and
now what we're doing is we're
consolidating right underneath the half
dollar.
And you guys know, when we get that
consolidation underneath the half dollar
or underneath the whole dollar, it's
typically something to pay attention to.
So, let's just kind of mark out a couple
of these half dollars and whole dollars.
So, this right here is the half dollar
at 50. This right here is the whole
dollar right at five. Okay, so we go
through 450 up to five, then we pull
back for a second, then we end up
squeezing up here. We have this high at
about 30 44, just under the half dollar.
We squeeze up to a high here,
consolidation right around $6.
So, notice again, sort of right around
the half dollar and the whole dollar. In
this case, the half dollar is
technically right here. So, we were
underneath it and then we broke above it
and then we kept going higher. Then
we're underneath it. Can we break above
it? We couldn't. We dip down, we rally
back up, we break six, we pull back, we
drop back down, then we rip back up
here. We pull back at six and then watch
this break. Whoa, holy smokes. We go
from six to seven. Micro pullback at
seven and then a little pop up to 720,
dips down, and then a rip up to 780.
This thing was really really strong
today. Now, I was kind of thinking right
here it might pull away and make a move
up towards 850 or higher and
unfortunately it wasn't able to. So, you
know what? Today, I actually gave back a
little profit off the top and I'm okay
with that.
One of the things that we were talking
about yesterday
as we went through chapter 14 in
the Warrior Pro curriculum is I was
talking about the trading plan and I was
talking about and then we got into
chapter 15, which is getting ready to
switch from sim trading to to go live.
So, this is the Strategies and Scaling
course right here. And if I scroll down
here, chapter 14 is creating your
trading plan. So, this I taught live
yesterday. So, just basically taking my
slide deck and teaching it live for all
of the new members. And then we jumped
into trading
when to trade live, chapter 15. And so,
one of the things that I said is
when you first get started, one of the
things I'm a big advocate of is getting
a lot of experience practicing in the
sim. Just take a ton of trades. Get in,
get out. It's pretend money. And we give
you access to the simulator because we
want you to be testing this out. But
once you're starting to feel like you're
making some money in the sim, that's
when it's time to go ahead and
flip live, right? Or get ready to flip
live. And so, what we do is
I put you on a 10-day trading plan where
you focus on taking just one trade a
day. One trade a day, get in, get green,
get out. Don't overstay your welcome.
And if you're successful at one trade a
day for 10 days, then you progress to
doing that same thing, rinse and repeat,
but with real money. Get in, get green,
get out. That's phase one of the real
money. Phase two, you increase share
size. Phase three, you increase the
number of trades you take each day.
Phase four, you start scaling out. Phase
five, you start scaling in and out. So,
that's the progression of the transition
from sim
to real money. But one of the things
that I was talking about as we were
getting there
into chapter 14 of the trading plan is
we were talking about how important it
is each day that you're trading the
right stocks. The fact is some days
there's not an A quality stock and it's
okay not to take any trades. And then
there's other days where you've got a
stock that is incredibly strong and it
makes a lot of sense to trade it. And
for me, it makes a lot of sense to be
aggressive on it. So,
I I think that sometimes people
overcomplicate trading.
At the end of the day, your goal is to
pull a little bit of profit out of the
market. And I think if you focus on just
taking one really good trade each day,
quality over quantity, if you can build
a track record with one setup that you
feel really good about, that can be the
difference between success and failure.
So, I am going to I want to import my
trades from yesterday so we could just
look at those for a second. I'll show
you my metrics.
And those of you guys getting tuned in,
thank you as always for being here. I
also want to give you a update on
where we sit here on the small account
challenge in terms of our fundraising
goals. So, let's see. I have this
sheet here.
So,
today is day five of my small account
challenge, as you guys know, and we are
now at $183,000,
just over $183,000 in money that's been
raised for charity.
And so, I have, as you maybe recall, um,
just on Friday I donated, uh, $30,000 to
these organizations: Wounded Warrior,
Hole in the Wall uh, Gang Camp, Wings
for Life, and this was, um,
thanks to Jim right here on YouTube
who's, uh,
said this is was really, uh, an
important organization to him, Ronald
McDonald House,
American America's Vet Dogs, uh, Service
Dogs for Veterans, um, the Genesis
Foundation right here, and then we've
got, um, two new charities that we just
added to today. So, I donated, um,
$5,000 to No Hungry Kid today, and
$5,000 to the Food Bank of Western Mass.
And I'm going to add, um, the I'm going
to add the the slides here for those
two, which I'll share when I do my small
account challenge later today. So, that
means we're now at $185,000
donated. So, we've actually gone a
little bit above, um,
the 183 we've already raised, which
means I'm going to ask you guys to hit
the thumbs up. So, as I said, every time
we hit the thumbs up on episodes in the
small account challenge, I'm going to
add an extra dollar to charity. So,
later today I'll be uploading, um,
episode five for day five, and I hope
you guys tune in and hit the thumbs up
on it. $185,000
donated to charity. I feel pretty good
about that, and
uh, and you guys you guys helped make it
possible. So,
um,
let's see.
Uh, okay. So, now PLRC, this is now
halted going up. And you know what? I'm
glad. I love seeing it go higher, and I
don't feel FOMO. I don't need to
overtrade this. I got in, I got green, I
got out. I'm not going to overstay my
welcome. So, one of the things I was
talking about, uh, is focusing on just
seeing if you can consistently pull 20
cents a share out of the market. 20
cents a share. You do that with a
thousand shares, and you're locking up
$200 a day. So, now let me pull up the
small account challenge. I'll just show
you kind of where we're at. I'll give
you a little preview. So, today I took
one trade. And in fact on this one
trade, this is on SBEV, this is a stock
that has short interest of about 30 The
short interest on this one was about
32%. Where was that?
Um, I'll show it to you when we get into
the, uh, the recap on it later. So, on
this one I got in at $1.75.
I got out at $1.87.
Ended up only making 12 cents a share. I
came in a little shy of that 20-cent
goal.
And that's going to happen sometimes.
Some days I'm going to be above it. Some
days I'm going to be below it. But any
day that I'm capturing 10, 15, 20 cents
of profit out of the market, in this
account, it's a cash account.
So, once I've taken that one trade, I
can't take any more. That's it. So, I
got my one trade. I got green. I'm
grateful for that. I lock it up, and I
do it again tomorrow. And so, this
strategy now in six days, five No, sorry
Sorry Sorry, today's day five, has the
account up 65% in five days.
It's slow and steady growth. Get in, get
green, get out. Get in, get green, get
out. So, those of you guys who are still
trading PLRC, I would argue that, um,
you know, your your biggest
opportunities on it, uh, were a little
bit earlier this morning, and you've
kind of missed it. While it may give you
another leg higher, and I hope it does,
um,
you know, this first leg right here and
this second leg right here was where we
actually had the highest volume of the
day. You know, this was a little bit
lighter, and this, although it's been
steady, you know, it has obviously had a
bit more selling. So,
I think that, uh, all of the new members
that joined, um, you know, over the
weekend, uh, and and even yesterday,
they were able to see my strategy on
display here this morning as I traded
this live. And of course, while I was
trading, you were able to see, um,
my position. You were able to see
exactly where I was in, my spy orders,
my sell orders. You're able to see the
whole thing, um, you know, which is a
level of transparency that I don't think
you guys really see anywhere else. But,
yeah, the the really strong setup on
this was this little pullback right
there.
Second pullback right there. And then we
had a little inverted head and shoulders
pattern here, um, but not super clean.
Then it kind of pulls away here, little
micro pullback after we broke over 550.
Then it surges up towards six, so that
was a nice trade there. Breaks over six,
back below, back above, can't hold, back
below, back above, can't hold, back
below, back above, can't hold, back
below. So, $6 was a real, uh, area of of
tug-of-war on this one. So, then it ends
up going sideways, as you can see right
here, and then boom, we get the squeeze
through six. Comes back up, resistance,
resistance, resistance, and then boom,
squeezes right through that level. I
love to see a breakout like that. That
is awesome. But look how it went from
six straight to seven. So, that next
level of psychological resistance. Okay,
so for those of you guys, um, in chat,
I'm going to do some, uh, Q&A here. So,
let's see. Um,
Uh, let me go back to the first question
that I saw posted just a few minutes
ago. Um,
All right. So, um, so Carla, yes, um, we
can do a SIM walk-through. I'm not going
to do that, um, right this moment, but
we can do that. Can we set alerts for
the five pillar scanner and how to do
it? So, yes, the five pillar scanner,
the new scanner right here, um, which
let's see. I wasn't using today, but
we're going to, um,
make this available to you guys.
This, uh, we're just going to I'm going
to adjust the color on the background.
You can set this to an audio alert, and
then you choose what sound you want to
use. I'm not going to do the dog bark
cuz my dog will start barking. But you
could set your chimes, etc., and then
just click okay, and then you've got
your audio alert specific for that
scanner. So, now you're going to get the
alert is this the second that scanner is
firing, um, which is, um,
uh, which will be good to go.
All right. Um,
let's see.
Uh, so next question.
Do do do do do do do do do do do do do
do. What is really anything? So, the
this five pillar scanner often doesn't
have anything on it, and you're right.
You're right. There's only two stocks on
it right now, and it's it's very often
it'll say that there's no that there's
no stocks that meet the criteria.
And what what I'm looking for
on this scanner is I I've got a set of
criteria, which are my five pillars, but
I added a few additional criteria, which
are searching for something that meets
the five pillars, but are also
experiencing volatility. Sometimes
you'll have a stock that's a buyout. And
so, it's up, it's got high relative
volume, but it's trading exactly
sideways. So, in that case, it's really
not it's not worth trading, um, so it's
not something that I would consider.
Okay. Thank you guys for putting the,
uh, questions in. So, how do I identify
an algo spike? Um, an algo spike, and we
had one yesterday in AHMA.
So, AHMA, let's see, we'll go to the
pull this one up.
So, generally an algo spike is when you
have a candle that goes straight up. So,
um,
in Wayne's World, uh, this is a candle
that goes schwing.
Uh,
pretty much what you can see here is
that in a matter of seconds,
uh, this goes from $5, um, all the way
up to $12. So, that one candle there has
a $6 range, from $6 all the way up there
to 12. That's an algo spike. So, the way
that algo spikes work, um,
and we I get into all the details on
this, um, in the class, but essentially
what happens is, um,
you've got a stock like this. So, AHMA,
and it's got a bid and it's got an ask,
right? So, at at one point it was, you
know, 625
by 650. It had a little bit of a spread.
And there was a market maker, market
maker on the ask, and a market maker on
the bid. And typically that market maker
will display something like a thousand
shares. Now, there's not a lot of market
makers that make the market for these
lower price stocks because they can be
so volatile. That volatility can be a
problem. So, let me give you an example.
So, let's say all of a sudden, um,
there's a surge of buying that comes
into this. So, this market maker
is seeing all of those buy orders coming
into the market. So, they actually
subscribe, they're able to receive all
that order data, the incoming order
data. So, they see, you know, one, two,
three, four, five, six, seven, eight,
nine, 10 orders, whatever it is, all
coming into the market. And let's say
those orders are for 650, 675, $7, 725,
750. What do they do with that
information?
Option one, they just keep selling
shares at 650. They sell to everyone
right at 650, and they sell, let's just
say, 100,000 shares.
So, if they sold 100,000 shares at 650,
unless they already own the stock,
what's going to happen is they're going
to become short this stock at 650. If
you are short 100,000 shares of this
stock at 650, and it then goes up to a
high of 1250, you're down $600,000
in less than two minutes.
Okay. So, obviously these market makers
are very sophisticated. They want to
make money in the market, they don't
want to lose. So, what do they do when
they start seeing these orders coming
in?
The first order is for 10,000 shares.
So, they'll fill 1,000 shares of that
order, and the remaining 9,000 shares?
Well, it's likely that the market maker
also had an order at [clears throat]
670,
680, 690. And what they do is they go
ahead and cancel those orders. They're
like, "We are not going to sell get in a
position where we're short heavy this
stock." So, they cancel their orders,
and now all of these orders are
disappearing. So, where's the next
order? Maybe it's at 750. Maybe there's
a market maker that's kind of sleeping
at the wheel and so they've got an order
up here at 750. Maybe it's 5,000 shares,
who knows. Okay, so the stock pops up
there to 750. That order gets filled.
And then that marketmaker, if they had
it orders at 770
and $8, they're going to do the same
thing. They're going to cancel their
orders. So now who else has orders?
Well, now you start getting up to $8 and
850 and people that bought at 650 might
be putting out some sell orders. So, all
right. You've got some people selling,
maybe that are actually in this
position. And if you know, if there's
more sellers than then that'll end up
being kind of kind of the top. If you've
got like, you know, $8 and you've got a
50,000 share seller, that's the top. But
if you don't have that seller then what
ends up happening is now you've got a
stock that's just gone from 650 to, you
know, 850 on essentially an algo spike
because buyers came in, the marketmakers
moved, they pulled their orders. The
stock squeezes up. And this is because
of Reg NMS and the obligation for these
marketmakers to fill at the NBBO. So
they reroute their orders, the other
marketmaker sees the order coming in.
They cancel their orders as well. So
marketmakers add liquidity and uh create
liquidity in a stable market but in a
volatile market, they pull their offers,
they pull their bids. That fuels um and
it actually exasperates flash crashes to
the downside because it works the
opposite way as well, as which I'll show
you.
But the market
while have circuit breaker halts and
things like that to minimize these um
extremes we don't have them pre-market.
So this ends up going up to 850 and then
there's more people buying and then it's
950, then it's 1050. And now the stock
is firing on the scanners. It's up 50%,
you know, it's up 75%, it's up 100%. And
now people are like, holy smokes, this
stock is ripping. Is there news? I don't
know. Anyone who shorted it right? Who
was like, I'm going to short at 750
1,000 shares. And then it's at 950, I'm
going to add another 1,000 shares. Then
it's at 10 50, they're like, oh my god,
I've made a terrible mistake. I better
buy. So now they're buying back the two
or 3,000 shares they're short. So
they're adding more buying to this
squeeze. And that's where suddenly you
get a combination of a short squeeze and
an algo squeeze happening at the same
time. The reason it can happen so
quickly is because there are system
short sellers who short using a
systematic approach that you know, every
X uh percent a stock goes up, add you
know, X shares. This is a very sort of
simplistic way
creating an algo. Um but because we know
that we have stocks that make big moves
up and then often come back down it can
work. And I suppose you could argue that
on um AM uh AHMA maybe it did work for
those traders who were shorting,
shorting, shorting, shorting, shorting,
shorting, shorting, shorting and then it
comes all the way back down. But this
one ended up rallying back up and back
up and back up. And as the morning went
on, it kept going higher. So you know
this one ended up being a very strong
stock. So that's a quick quick example
of the um algo um
the algo spike.
But the algo flash crash is the exact in
in reverse, which is that
you have uh the bid right there at 625
and someone goes to sell 10,000 shares.
The marketmaker is only showing 1,000
shares. So nine 1,000 of your order gets
filled, the remaining 9,000 gets
rerouted to another marketmaker. They
see your orders come in. They cancel
their order. Sometimes they'll even
short the stock in front of you drop it
further down and then when you sell
you're actually selling
and fueling the drop even further. Or
they put their shares on the bid so
they're buying back and they actually
scalp on your order flow. They cut right
in front of you. It's kind of crazy. Uh
but it happens all the time. And so you
know, this is the reality of trading in
a digital market, electronic that we do
have these high frequency trading
algorithms. And so I do pay attention to
it and I have certain strategies that I
use to try to um you know, avoid getting
too much slippage caused by my order
getting rerouted. Now it depends on what
broker you use. Uh different brokers,
you'll have different degrees of
slippage on these.
Um
All right, Louis. So let's see. In the
small account uh in the small account
challenge with $5,000 of cash capital um
how would you how would I suggest
entering a trade? Would I buy on the bid
or would I buy on the ask? Great
question and I'll show you with an
example. So let's just say for example
that Ford well, look at this, PLRZ.
PLRZ, we'll just pop this back up. Um so
very nice, great to see. Halts it up,
now back up to the high. So PLRZ, just
as an example, if I wanted to buy this
um 250 shares and I put my order on the
bid right? I put my order on the bid
down here. Uh what I would have to do is
I'd have to wait for people to sell me
shares. So in a market like this, and
this is a little top heavy here it would
work. But let's say like a stock like
Ford, if I put my buy order at 96 to buy
I'm just going to be sitting there on
the bid. And I just have to sit and wait
and wait and wait. So if the market's
moving really fast and there's a lot of
buyers and not a lot of sellers, you
won't get filled buying on the bid. You
just won't get filled. So if I want to
get in this I got to buy on the ask, so
I'm going to press shift one right now.
And in an instant, I filled 1,000 shares
at the ask.
So shift one, buy at the ask. Now if I
want to sell I can do one of two things.
I can either sell on the ask put my
order at 1297 right there. Or I could
cancel the order and say, you know what?
I don't need to wait to try to get
filled at the ask. I can just sell on
the bid. In which case I would sell
basically right on the bid, control Z is
my hot key. And I would sell 1,000
shares.
Uh 1,000 shares right here. And my order
would be right on the bid.
And then I'm back out. In that case, I
actually made $7 cuz it happened to go
up a one penny while I was in the trade.
But uh that's the way I would jump in
and out. I would buy on the ask and I
would sell on the bid just to keep it
simple.
Um yes, Daryl, we do have a template. Um
if you go into the support room, they
can give you a link to that template
that you can uh install for DAS Trader.
I do have a DAS Trader template.
Uh okay, so let's see. Um next question.
I'm still looking for the next question
here.
Um
What um would I focus on the 10 second
chart or the one minute chart as a
beginner? So
I like the 10 second chart um especially
as a teaching tool because I it it makes
it easier for me to show you what was
happening inside a one minute candle. So
for instance, back here on PLRZ
you're if I just show you the one minute
candle and I'm like, yeah, I bought
right here. You're like, well, wait a
second.
What? I don't understand. What what
happened there? And I say, well, it kind
of pulled back for a second. You're
like, I don't see it. You're right. On
the one minute chart, you kind of don't
see it. So but we get on the 10 second
chart and that's where you could start
seeing these kind of micro pullbacks. So
to be honest the 10 second chart is
really helpful as a teaching tool. But
what I'm really using while I'm trading
is right here. It's the level two. It's
the depth of market. So this is what I'm
really using in the middle of a trade to
get in and out. I'm looking at the level
two. So that's why I encourage you guys
to really practice your tape reading
skills. Because remember, the chart it
gets all of its data from the time and
sales right here. The time and sales are
transactions that are going through. And
transactions that go through are going
to affect the order book. So you'll be
able to see buyers and sellers, you
know, getting bought and sold to. And so
this is sort of your ultimate source of
data. And so I feel like if um you know
I don't know. If if you were
if you were really smart enough
or had a very like strong visual um
mind you might be able to draw charts in
your mind just based on seeing this data
and not even need the chart. Now
that's a level of
I don't know, super genius that I am not
at. Um but you get the idea that the
chart, because it's formed from all of
this data, you know
it's a visual representation of the
historical price action.
So for me if I'm trying to predict where
the stock's going to go, I'd rather look
at the data source right here of what
it's lined up to look like. Um and then
just glance at the chart to see if
there's anything on the chart that's
concerning. That sort of is like a red
flag, you know, that uh-oh, we've got a
problem here. So um
you know, that's kind of um the thing to
to do.
Um so and then a question about
patience, how to be patient in a cold
market.
So I've been through so many market ups
and market downs that you know I guess
I'm at a point where
when it's cold, I just kind of hunker
down and I'm like, all right, you know,
this isn't what I wanted, we're in the
trenches.
One of the things I do is I size down my
account either by taking money out of my
account or by putting a max share size
restriction on my account because it's a
lot easier to trade in a cold market
when your account is at all time highs.
In other words, it's easier in other
words, this isn't going to be an analogy
everyone understands, but uh another way
of saying it is it's easier to get
through a long winter when you know that
your woodshed is stacked full of dry
firewood.
Right? It's easy. It's like, all right,
I'm good. I'm okay. I'm going to get
through this. But when when that's not
the case, you start to feel a little
anxious. And so with trading when
you know, you're in a drawdown you know,
and you realize uh-oh you know, I just
took a massive loss you you know, and
now the market's getting cold. There's
no chance to recover it,
it's a lot harder to be patient.
Now, sometimes that loss is the result
of impatience to begin with. So then
it's like, all right, you know what? If
I had just had kind of the wherewithal
to hold tight a little longer, I
wouldn't have gotten myself into this
pickle. So, I try to remind myself that
cold markets don't last forever. Hot Hot
markets don't last forever, either.
So, this is just the current situation,
and the best thing I can do is wait it
out.
When a market heats back up the way it
has these last couple days, it feels
night and day from a cold market. And
I'm sure you guys, you know, who have
experienced both can attest to that. So,
um
I think in a way, one of the things I
I'll sometimes tell myself is that
my next best chance to have a really
good trade is tomorrow morning.
That's the case as of right now. Even
though it's only 10:00 a.m., my next
best chance for a really good trade is
tomorrow morning.
So, you know, if I was red right now,
does it make sense to take big risk and
try to, you know, catch a big win? Or is
it better for me just to start getting
oriented to my next chance is tomorrow
morning? And I just kind of have to, you
know, hunker down and get through the
night, so to speak. And if I I'll get
through the night, and then tomorrow,
you know, I'll have another chance at
this.
So, there's definitely this feeling of
like,
you know, trading like
>> [clears throat]
>> the sort of survival of the market.
Survive to you thrive. Keep your head
above water,
and just keep chipping away. Small
gains, small gains. And like I said, you
know, the whole concept in chapter 14 is
just focusing on 20 cents a day per
share. And we had a couple of really
good opportunities to capture 20 cents a
share on PLRZ. So, those of you guys who
are practicing the strategy you're
learning in the simulator, I I hope that
you're able to have a decent day today.
Um how can I see if a stock has had a
reverse split? So, reverse splits, we
can see that on the daily chart. Um
let's see. I'm going to make this full
screen in just a second. So, the reverse
split is going to show right down here
on the daily chart when we've had a
recent reverse split. It's that little S
right there. So, when I see that, I know
we've had a recent reverse split.
All right, let's see. Um Ross, I'm
constantly overtrading.
I mentally know what not to do, but when
it starts things start moving, I get
tunnel vision. How can I stop this? So,
I think that that is an extremely common
experience, especially in the day and
age today of commission-free trading. Um
I see a lot of traders that just
chronically are overtrading.
Hey, it's free. Why not, right? Just
keep punching those buttons.
So, I get that. Um
So, there's a couple There's It depends
I I say I would say your situation
depends on how chronic it is and how
much it's costing you.
Uh the most extreme would be
to to actually discipline yourself by
using a cash account, because when you
run out of cash, you can't take any
trades.
And just as an exercise of discipline,
it would slow you down.
Number two, um
you obviously could put some
restrictions on your account with your
broker. Not all brokers let you do this,
but some brokers you can call your
account manager there, and they'll put
restrictions on your account. So, you
start to put some guardrails on to keep
you a little bit safer. You know, if
this happens, I'm not allowed to trade
anymore, etc., etc.
Um
The next thing you could do, obviously,
gaining a lot of experience is of value,
but you've got to kind of separate this
is my account where I'm trying to make
money, and this is my account where I'm
here just to gain experience. And so, I
would consider that you've got your
account for making money where you focus
on a max of one trade a day,
or you set the rule that I trade until I
have my first loss.
And so, if you get five trades in a row
before the first loss, awesome. But once
you have that first loss, you're done.
And then the rest of the day practice in
the sim. And overtrade as much as you
want, but simulator. Now, if you're not
overtrading in the simulator, then that
speaks to me of the fact that you're
really just profit seeking. You're
looking for profit and covering your
profit loss while you're trading, and
focusing just on the process may be
beneficial. Focus just on trade the
best, leave the rest. Is this a setup
where I can get 20, 30 cents of profit?
And slow down a little bit. And maybe
take off the hot keys for buying if
you're finding you're pressing them sort
of impulsively.
Um so, Jason says, I get better results
when I take a dip off the EMA or VWAP,
and then just hold as it goes back up.
What do you think about this dip and
hold strategy? So, I have no problem
with it. It is a strategy that I trade,
and that obviously I teach in chapters 7
and 8. So,
I don't have no problem with it. I do
sometimes feel that buying into weakness
carries risk as a beginner.
Um you don't always get instant
breakout, like breakout or bailout. It
doesn't always work as as nicely in that
regard, but
um
you know, at the same time, I I do feel
like
um
in a hotter market In a hotter market,
it can work really well, buying off
support. So, I think you want to pay
attention to the market you're in. When
you're in a hot market, buying off
support, yes, I do really like that.
When the market's a little bit colder,
um it's a little more indecisive about
which of these are will hold up and
which of them end up failing. So, that's
when I think you you want to be a little
bit more cautious on some of those
trades around weakness. It's the same
very similar to buying um
like a red-to-green move. The
red-to-green move where you get that
flush and then that curl back up.
Um
you know, that
it's just that inherent weakness
sometimes throws me off a little bit.
So, I just don't want, you know, to see
buying too much into that weakness. That
That can be a little bit of a problem.
Okay.
Um let's see.
All right. So, next one,
um
in a hotter market when you get those
fast high-day breaks and shorts are
trapped, how do you personally approach
them? Do you treat those as A-quality
setups? So, well, that's a good example.
We had PLRZ today, right? So, well, it
was already on. So, PLRZ, um we had a
couple of sort of surprise pops, like
this one right here kind of came really
quickly. And this one did, too.
And
I do find these to be a little tricky
because sometimes you get this quick
squeeze, uh but sometimes on slightly
lighter volume, and shorts cover, but
longs will also feel like it's so
extended, it doesn't feel like it really
makes sense to be buying up here. So,
when that's the case, um it it
unfortunately often doesn't um end up
feeling like a super safe trade for me.
And I I end up um
you know, it ends up not not working.
So, the market has to be really, really
hot for me to just jump in at the very,
very top there.
Uh
let's see.
Can I talk a little bit more about
stacked bids and stacked offers? So, on
the level two, um PLRZ doesn't have
really stacked bids or stacked offers.
We've got two, three buyers, you know,
two, three, maybe four sellers.
Ford
is stacked. You've got a stack of 10
buyers, you've got a stack of 10
sellers. And basically, these are market
makers, but they move right like with
the price. So, they all kind of move in
tandem together.
So, this is a stock that's very stacked.
Now, I wouldn't trade it on a day-to-day
basis to make money because the float is
higher, I wouldn't expect it to work,
but
if I was trading a small-cap stock, and
then I saw a stack of sellers like this,
I would think to myself, yikes. Someone
is putting out a lot of sell orders.
Now, that could be one individual
trader. We don't know. It could be one
individual trader putting out orders
across multiple markets at the same time
to create an impression of a lot of
weakness. In fact, it could even be a
market maker. Market makers will do
this, too. They'll create the impression
of weakness, which causes you to sell
shares, but they're sitting on the buy
on the bid, accumulating all the shares
you're selling. So, it's a trick.
However, generally, when I see big walls
like that, even if it's a trick, I still
feel like inherently it's not
communicating positive sentiment, and I
don't like it. So, um
so, I just kind of
um
you know, I just sort of say,
I should probably leave it alone.
So, um question from Vlad. I feel like
I'm not getting good fills on WeBull. Do
you feel the same on WeBull Do you feel
the same about WeBull, or is it just me?
So, WeBull, um I did have an issue on my
first order today. It didn't go through,
but it said that I didn't have enough
buying power, even though my hot key was
to use 98% of my buying power, so it
actually should have gone through. I'm
not sure why it didn't, but um
you know, the So, that was a little odd.
I really don't know what the explanation
was for that. Um this will be under my
canceled orders. Or no, canceled all?
Um
Canceled.
All. Well, I guess it I don't know what
what ended up happening with that, but
um
in any case, it was on SBEV.
So, yeah, I'm not really sure what
happened there, but
generally, the orders have been getting
filled pretty well with smaller share
size. I've been pretty pleased. So, you
know, I'm not sure that
this would work with 50,000 share
positions, but I'm not doing that with a
small account. This is small account
challenge stuff.
Um so, and thank you guys who have all
tuned in on YouTube for this
live recap from today, going over my
trades on PLRZ, and also doing a little
Q&A, and giving you guys the last call
of um
our Black Friday Cyber Monday sales
ending tonight at midnight.
So, uh Ross, what should my target
profit loss ratio be? Okay, so when it
comes to profit loss ratio, you sort of
have a choice of what you want to focus
on.
What I mean by that is if you focus on
really high accuracy,
what you're in in most likely going to
do is you're going to take profits very
quickly. If you're in a trade and it
goes up 2 cents, 3 cents, you're taking
profit and you're paying yourself,
right? So, it's not hard to be right 90%
of the time if your average winner is
really tiny. You're only predicting a
stock going up 2 cents a share.
The problem with that is that when you
are in a loser and your average losers
are 5 cents a share, you're going to
have a negative profit to loss ratio,
right? Now, you could still make money,
but it's just kind of where where's the
line in the sand? So, let's see. Um
if I jump up here, let me see if I have
it in this slide deck. Um
yeah, I do. So, in this slide deck right
here,
I'm going to show you this table. So,
you can see right here, um if your
profit loss ratio is one to one, average
winners are a dollar, average losers are
a dollar, you need to be right 50% of
the time to break even.
Okay, that's straightforward.
If you risk a dollar to make $2, you
only need to be right 33% of the time to
break even. You could be wrong 66% of
time and you're still break even. And I
think that's pretty awesome because
you've set the bar pretty low. If you
risk a dollar to make $3, you only need
to be right 25% of time. If you risk a
dollar to make $10, you'd only need to
be right 9% of time. But here's the
problem.
To risk just $1 to make $10, it when we
when we think about trading, how much
are your average losers? Now, some of
you might know this in cents per share
and some of you might not, but for me,
my average losers are about 15 cents a
share. So, average losers
of minus 15 cents per share. So, for me
to get a 10 to one profit loss ratio, my
average winners would have to be a
dollar and 50 cents per share. Yikes,
that is just not going to happen. It's
not going to happen when trading small
caps. So, for me, the only way I could
achieve a 10 to one profit loss ratio is
if I could somehow get my losers a whole
lot smaller. But when you trade with
10,000, 20,000 shares, sometimes you get
slippage. I just don't know if I can
really get them a whole lot smaller.
This is how it's been for more than a
decade. So, what are my average winners?
My average winners right now, this year,
are about 18 cents per share.
All right, so right now I have a
positive profit loss ratio. It's
positive by, you know, one a little a
little well, it's a little more than one
to one, right? Just slightly. So, that's
good. I'm happy with that. Um so, that
means I'd be even at about 50% accuracy.
Oops, 50% accuracy, right?
Okay, well, so then what's my accuracy?
My accuracy as of right now is is
averages about 72% this year. 71.5%. So,
I'm rounding up just a little bit, but
72%. So, at 72%, I'm making money with
this profit loss ratio. So, this is
where you kind of have to make the
decision. Now, for me, the decision was
made for me. You want to know who made
it? My anxiety. My personality made it
because I don't I get so nervous and
anxious when I would have a long stretch
of losers. If you're right only 17% of
time, it means the majority of the time
you're wrong and I just emotionally
struggled with that.
I don't know, that feels really hard. Um
I'm sure there's other people that maybe
could tolerate that and
um
you know, maybe there's even careers
like Thomas Edison and the light bulb
being wrong. He was probably wrong like
98% of time, you know, but then one time
he creates a light bulb, so it's is I
guess it's okay.
Right? Um there's good risk reward
there, I suppose. But but for me, when
it comes to trading, the reward on any
given trade when we're day trading small
cap stocks is is relatively small. I'm
never going to have a trade that's going
to allow me to retire, you know, it's
These are just base hit trades, trading
for income, a couple hundred dollars a
day, you know, was sort of where I came
to the market as my initial starting
point. That was my goal, 200 a day,
$1,000 a week, $50,000 a year, right?
So, I wasn't trying to do anything
crazy. I wasn't trying to get rich or
drive a fancy car. I just wanted to make
enough money living in Vermont to, you
know, pay the bills and and not have to
have a regular 9-to-5 job. So, for me, I
focused on really high accuracy.
That was my focus, high accuracy. So, at
if I was in a winner, the second I saw
an exit indicator, I was getting out.
That was it. If I saw the exit indicator
and I was only up 2 cents, didn't
matter, I was selling. I saw an exit
indicator, I was up 50 cents. All right,
awesome. That doesn't happen very often.
Usually, I see the exit indicator pretty
early. I end up getting out, which is
why my average winners right now are
only about 18 cents a share. But, you
know, look, it's tolerable. And so, what
that meant was that by focusing on high
accuracy,
I ended up actually having a better
profit loss ratio because out of 100
trades, I only have 30 losers because
I'm focusing on high quality setups and
I'm taking profit quickly. So, usually
when you get those big flashes, they'll
like hesitate for a little while and
then they dump. So, I would already be
out of that trade before you get that
big dump. So, by focusing on high
quality setups, accuracy improved, which
is great, and profit loss ratio got
better because I was eliminating some of
those big outlier losses. So, that then
fed into me being just generally more
consistent. But remember the anxious
mind. How's that feel?
I've got I've got I've got a strong
track record. I'm consistent. I'm
feeling much more self-confident. Now,
I'm feeling better taking slightly
bigger position sizes and boom,
increased profitability. And this
creates a positive feedback loop. But
what happens for a lot of traders,
including myself, when I got started was
I jumped into the market with real money
way too soon. I lost money. I felt
emotional. I felt sad. The only way I
could sort of think to feel better was
if I could just make back what I lost
really quickly, which led me to be um
impulsive and take really poor quality
trades, which created a poor
self-confidence and increased losses and
this negative feedback loop. And then it
just starts to spiral.
Um and one thing I also mentioned in
this section of the class, you know,
being from Vermont, many of you guys
know that I make maple syrup.
Uh there's a a very small window each
year where you can make maple syrup. Um
I've got this book um
right here that I keep on my desk, Five
Acres and Independence. Um this book was
um written in Let's see, what year was
this?
Um
This book was written in 1935
and then this right here says, "This is
a wartime book. In accordance with the
regulations of the War Production Board,
the format of this book has been
designed to save paper and other
materials essential to the war effort.
Although this volume is smaller in bulk,
has narrower margins and other features
not found in peacetime books, its
contents are complete, unabridged in
every respect." Uh printed in the United
States of America. So, this was printed
during um
World War II. But this book was written
during the Great Depression. And
I don't know, guys, there's just
something there's just something about
um
learning about the Great Depression um
that really makes you grateful for what
you have. And um
I I think for me, I've just always been
so oriented towards um self-sufficiency.
And so, making maple syrup, you know,
something that um people have been doing
up in Vermont for, you know, for well,
literally generations. And um
and you know, in Five Acres and
Independence and other books that were
written during the Great Depression,
like um Scott and Helen Nearing's book,
The Good Life, they talked about making
maple syrup. And the thing with making
maple syrup is you got a very small
window where you can make it and that's
the window for the entire year. So, it's
at the end of uh winter, early spring,
the temperatures have to be just right
and then you can make this maple syrup.
And if you don't
I mean, it Look, that the window's open.
And if you don't boil all the syrup then
or all the sap down to syrup, then
you're not taking advantage. The the
iron is hot and you're not taking
advantage. So,
uh
sometimes trading feels like this career
where when the market's hot, you've got
to be here and squeeze as much as you
can out of it because when it cools off,
you know, you'll be grateful that you
took the profit and and then you batten
down the hatches when it gets cold and
you just wait it out. So, I think
there's a whole there's just a whole
mentality around this and part of it
that I think about is trading uh really
almost like as a business, you know, I
mean, day trading, if you're
if you already have a small business,
you're already kind of oriented to
running a small business, but trading,
um thinking of trading as a business.
If you thought of it that way, does it
help you kind of
change the way you approach it? The I'm
I want to start my own business as a
trader.
Okay, so I want to start my own business
as a coffee shop. Okay, so I I got to
research, right? I got to research, how
does this work? What are other coffee
shops doing that work for them? Is there
someone that runs a coffee shop that I
can go talk to? You know, can I go see
what it looks like? Um how much does it
cost to set up this coffee shop? You
know, what's a good location? You start
asking these questions. Well, day
trading is just the same. Okay, so I'm
interested in day trading. Well, you
know, what are other people doing that
is working for them? You know, is is
this something that's hard? Is it
something that's easy? You know, what
when people find success, you know, what
are the
what is it that creates that success?
You know, okay, so I and then what's the
startup cost? How much education do I
need? How much experience do I need? How
how do I know, you know, that I've got
enough experience to be a good trader?
You know, and as you kind of put the
piece the pieces together, you realize
that um you know, I'm I'm over here, you
know, let's say, you know, I'm I'm here.
I've been doing this for a long time,
right? So, I've been on this, you know,
path for many years. And then you've got
traders um you know, like Jess over
here.
He's got his badge at Warrior Trading.
He's um seven-figure trader. He's been
doing this for a long time. And then
you've got um you know, Danny, you know,
we've got Max and you know, other
million uh million-dollar badge holders.
You know, they're various sort of states
in the learning curve. And these traders
all trade variations of momentum, you
know, basically they have taken and
learned my strategy and then they kind
of modified a little bit to their niche
and kind of their risk tolerance and
what works for them. Um but but you
know, we're kind of the same
um archetype in a way, the same profile
of I would say like a momentum, you
know, momo day trader, momentum day
trader. So, you know, you've got these
sort of examples here. And then you
might be down here. You might be at the
very beginning of your learning curve
and you're thinking I I want to get into
this.
So, then it's a question of like, all
right, what steps would I have to get
what steps would I have to take to get,
you know, to the sort of first
milestone here of making your first like
25,000. You know, what for what steps do
you have to take just to get ready for
like day one in the sim? You know, just
to get ready for day one in the sim, um
one of the things that I sort of talked
about in how to day trade the plain
truth was this book was designed to
prepare you for day one of um
of sim. Just to get you kind of oriented
with what your next steps are, risk and
fear in trading, um giving you your
guardrails. I shared some interviews
with other traders. These are the
guardrails that I give you guys. And so,
just getting yourself ready for day one
sim, right? And then then we're getting
into sort of like um
these first phases of
um of learning how to trade. Uh which
actually kind of ties back to what I was
teaching you guys yesterday in chapter
um
chapter 14 and 15. Let me just pull up
that slide deck. Um
So, I was sharing with you
um
the seven phases of learning how to
trade.
And so, you guys on YouTube um
these are the phases right here. You've
got your alpha phase, which is the
period where you're gaining a ton of
experience. And some of you might be in
this phase without realizing it. By the
way, you don't make money in the alpha
phase. So, if you're not making money,
then you're you're in alpha phase. But
you can avoid losing money in alpha
phase by doing it in the sim. This is
when you're just
basically like getting your hands dirty,
just practicing a lot, trading
everything that's moving, right? Just a
lot of experience, which is important.
So, this is the alpha phase. Then you
get to the point where you're like, you
know what? I actually sometimes feel
like I'm making some money. I want to
see if I can actually make a go of this.
So, then you do the beta phase, which is
following a specific uh trading plan
that I give you guys and that's your dry
run. If you make money in the beta
phase, then immediately you go to real
money and you just repeat this phase,
but with real money. This is real money
phase one, one trade a day. Real money
phase two, one trade a day, but scaling
up. You can make a living with one trade
a day.
Now, and it obviously helps when you've
got additional sources of income and
everything like that. And I'm not trying
to make There's clearly, I'll disclaim,
there's no guarantee that you will find
success
because trading is risky. Whether you
learn with me or you learn on your own.
But I believe there's no question that I
can make a living trading with one trade
a day. And I really believe that if you
become successful, it is very possible
to make a living with just one trade a
day. So, phase two is scaling up your
share size.
Phase three, increase in the quantity of
trades. Phase four and phase five is
when you get into scaling in and scaling
out. And you you complete one phase
before you proceed to the next. Now, the
problem with a lot of beginner traders
is that you're not thinking about it in
this sort of
um
uh you're not thinking of it
business-minded way. You're just sort of
shooting from the hip, doing a little of
this and a little of that. And when you
have an inconsistent approach to the
market, you're no doubt going to get
inconsistent results. You might have
some nice wins and then you'll also have
some big losses. And so, it ends up just
being
uh
it could be a very difficult extended uh
period of of frustration, which I think
I think can be cut down. It may not be
avoidable entirely, but I think it
certainly can be uh reduced quite a bit.
So, um
I don't think it PLRZ was expert level.
Um this was a decent momentum stock.
What would have made it expert level is
if it started at like $14 or $15 a share
and went up to like $28 or $30. Because
when you get higher price, you get
bigger spreads. AM uh AHMA from
yesterday was a little bit trickier
because of the higher price gave it
bigger spreads.
Um so,
>> [clears throat]
>> how can I distinguish between an uptick
that is temporary and then reverses
versus one that will continue going up?
What do I look for?
So, an uptick that's temporary. Well, I
suppose
if we look at our one-minute chart here,
if we had an uptick right in this area,
um I would assume it's going to be
temporary based on just the position of
the one-minute chart, right? It it
obviously looks sort of weaker. The
MACD, although it's technically positive
right now, is been negative for a while.
We're below VWAP. Um but in this area,
you know, that was an uptick on that
green candle right there, you know, but
it didn't really go higher. Is there a
reason why?
Well, it was just after a halt excuse
me, a halt up. So, one halt up opened,
dipped, and ripped. It was pretty
extended.
Regular trading hours can be a little
bit more of a battle with uh traders
using market orders. So, that can create
a little bit of a challenge. Um
the market makers take advantage of that
with more slippage.
But the things that I look for are the
position of the MACD, number one. I look
at the volume profile, number two. And
then how extended we are off our moving
averages. Those are the types of things
I look for.
Um but the fact is, my accuracy at 70%,
you know, I'm wrong 30% of the time and
I still make money. So, it just means
cutting the losses very quickly.
Um
when I buy a micro pullback, how do I
know that it won't flush or do a round
trip? Well, the fact is,
uh it could drop and if it does, I'm
going to stop out for a loss. And if you
look at my P&L, I am red on BGLC. That's
literally what happened on BGLC. I got
in it. It looked good at the time that I
bought. And uh you know, I thought it
was going to work and then it rejected.
And it rejected pretty violently. I got
in uh just under $7. And it came all the
way back down and even went red on the
day. So, this is an example of a micro
pullback and and I was wrong. So, what
happened on this one?
So, it popped up here to um 750. It
dipped down. I bought right here at $7.
Uh and then you can see it popped for a
second, dropped down, and I had to cut
my loss. And there was just it was as
simple as that. I took the loss. So,
yes, it'll they might drop, but I'm not
going to still be holding it down here.
I just take my loss. I just get out. So,
the only question is really how much
range are we talking about where, you
know, how much can it drop before I'll
have time to stop out? And so, is that
20 cents a share? Is it 50 cents a
share? You know, that's the question.
If you're doing one trade a day, at what
point in share size are you considering
going to a direct access broker rather
than something like Schwab that might
have slower executions and a bit of
slippage on bigger positions?
So,
you know, I guess that depends a little
bit. Um I mean, I think up to 5,000
shares is very safe with commission-free
brokers. And I know that some traders
trade significantly more than that. Um
and I have before as well. So,
I think
I as a beginner, I really think there's
a big advantage with a commission-free
brokers and the price improvement that
you get, it helps set your break even.
It makes it a little easier to be break
even.
And that means it's a little easier to
just tread water and survive. So, I
actually think it's really valuable um
you know, to use them. And if you get to
a point where you're consistently
hitting your daily goal,
you know, with a commission-free broker,
I think that's fantastic. If you get to
the point where you're up to 5,000 or
8,000 share positions, you're starting
to introduce taking three or four five
trades a day, you're more active. Now
you're taking more trades, so
commissions would start to make a bigger
difference and ECN fees would add up as
well. Um
you know, you could stay with a
commission-free broker for potentially
years and be very happy. Um
you know, and then at a certain point,
it's like when we kind of get to phase
five, we're talking about, you know,
optimizing and sort of how to improve
efficiency, maybe that's when you set up
a an account with a direct access broker
and do a side-by-side comparison for a
period of time and ask yourself, is this
better? And is it worth it?
You know, there's a cost, but is it
worth that cost?
Um so, I use manual stops um not live
stop orders. You can't use live stop
orders during premarket, but one of the
other things with those live stop orders
is that the market makers can see all
the stop orders and the trigger prices
in their data feed. So, that means, you
know, you are showing your hand to all
of the market makers out there and I
don't like doing that.
SMX, another nice strong stock. The
problem now is the liquidity is very
poor on this. So, no doubt SMX will be
expert level stock. It's actually halted
right now, but uh the spreads are just
going to be too big to feel safe trading
it.
Um
So, let's see. Um Um
Joseph, for first candle to make a new
high, um
what we're looking for uh literally is
the moment after we have a rally up, a
nice rally up, and then we have it could
be one candle pullback for micro
pullback or maybe two, then the first
candle that makes a new high. So, each
candle opens, you know, right around the
close of the previous candle. So, we
open here, and if we squeeze up right
here, we're going to break over this
level right there. We push to a new high
right there. So, the moment it breaks
that level, that's our trigger price,
and that's my entry. I don't wait for
the candle to close. The second it
breaks that price, I'm watching the
level two. So, I'm seeing the order the
price coming up to that level, and so
I'm buying right there. All right. So, I
set my stop down here, and then first
candle to make a new high, and then the
continuation as it moves higher.
Okay. So,
um let's see.
All right. So, at this point, um we are
sitting here. It's coming up to about
10:30, so been running this broadcast
for just a little over an hour, and um
I'll answer a few more questions here
for those of you guys that are still
tuned in.
So, thank you uh for that question,
Joseph. Um
let's see. So, when you're in a
situation where you really need to take
one share trades, but you Okay, hold on.
When you're in a situation where you
need to take one share trade, just one
share, okay? But, you really
you see a really nice stock trending and
decide to do 300 shares, and sometimes
it works well, and other times it
doesn't work well. How do you stop
yourself from switching between 300
shares and one share?
Okay. Um so,
the one share model, the concept between
between the the concept of trading with
one share is basically the same as the
concept of trading with 100 shares in
that you're just trying to gain
um you're trying to build a track
record, and you're not trying to make
money at all. It's just about proof of
concept, about producing consistent
results. So, if you randomly take 300
times the position,
then you're totally screwing up your
metrics.
Um
it it's it it it defeats the purpose.
So, no, you it's not a good idea to do
that. What you should be doing instead
is
taking screenshots of some of those
trades you feel really confident in,
build up that stack of screenshots, and
then work on slowly increasing your
share size from one share to 10, to 50,
to 100. And that's the gradual steady
way to build. That's the right way to do
it. Not to just That would be like me
being like, I usually take 10,000
shares, but every now and then I take a
million shares.
So, if that million share position
works, I feel like a hero, but then when
it doesn't, in spite of maybe even
having great accuracy, I'm still losing
money.
Um So, the other day I spoke about the
benefits of commission-free brokers over
direct access. Can you clarify what you
mean, please? So, I'll give you a link
actually to um the class that I taught
um just the other day. This was part of
my WeBull small account challenge, and
in episode day four, I shared with you
um sort of a comparison of WeBull versus
um
the direct access brokers. And I cuz I
took the same trade in both accounts, my
direct access account and my um my
WeBull account, and the WeBull account
was break-even.
Actually made a little bit of money. And
in the main account, I lost money. And
the reason I lost money was because I
got slippage. I did not get price
improvement, and I also, unfortunately,
um
had commissions. So, the combination of
commissions plus slippage made it so I
just was not able um to make money.
So, I you know, I think for a small
account trader, um there's a lot of
benefits to using a uh direct access uh
sorry,
to using a commission-free broker
because it sets your break-evens a
little bit um higher. But, um you know,
on the other hand, at a certain level, I
kind of this is the way I sort of said
um I I was like, if you're trading with
a $1,000 account, let's just say, and
you're using a direct access broker, I
was concerned that you wouldn't really
have break-even trades, so you would end
up kind of losing money for a while
unless you ended up getting like a a
couple of really big trades that got you
up a little higher, and then you could
kind of make more progress. Now,
obviously, I've done $500 and $1,000
small account challenges using offshore
brokers, but that was because I had
times leverage, right? I had more buying
power. When I've done them without
buying power, well, I'm basically doing
the same thing I'm doing right here at
WeBull,
right? One trade a day, except I'm
paying commission, and I don't get price
improvement. So, at that point, you
might as well just use a free
commission-free broker, right? The only
benefit to using those ones with small
accounts is cuz you're trying to use
leverage, but we know that that carries
risk. So, the the thing though is that
um a $1,000 cash account,
you know, the growth is kind of slow
here, but then there's a certain point
um
where I almost worry that uh
you're you're kind of selling yourself
short a little bit, whereas
um
with a a bigger broker, you might need
like $25,000 to start, but you know, you
can start to accelerate a little bit
faster in these areas when you start
taking like, you know, 10,000
and, you know, 20,000
and 30,000 shares. Whereas, I feel like
you kind of get diminishing returns at a
certain point with some of the
commission-free brokers when you try to
take big size. That's just been my
experience. I I can't really say
directly on WeBull because I haven't
used big size with WeBull, but um but I
have with Thinkorswim, and I you know,
it it it it can work, but here's the
thing with Thinkorswim.
The market needs to be really hot for me
to do well trading there with big size
because it I'm sloppy. My precise it
it's not it's like carving
I don't know. This is like a bad
analogy, but it's like carving the, you
know, Thanksgiving turkey with like, you
know, a butter knife. It's just you're
it's just sloppy. It's not precise.
Whereas, the direct access brokers are
just so precise.
You can just get in and out. I mean,
yes, you can get slippage. Um you know,
but it but because your orders are so
quick,
you get that really it's it I don't know
if you guys are like car people, you
know, but um
I remember I had a Audi, an old Audi,
and I loved that car. Uh it was so easy
to drive. It was a manual transmission.
The stick shift was just it was so
forgiving. You couldn't stall it out if
you tried. I mean, it was just so easy
to shift into drive. It was very
comfortable. And then I had a friend
that had one of these um
Japanese uh cars. It was like it was
like a Nissan, you know,
RS RX something. I don't remember. Um
but, I had to move it, and
I remember
um
like tapping the throttle, and it was
like
vroom vroom vroom vroom.
I was like, "Whoa, this thing is like
like that pedal is directly connected to
the engine." And with the old Audi, um
it was just very like mushy. Um the
whole thing was mushy. And that was
fine. It made it very easy to drive. Uh
but, when I got in that Japanese car, I
was like, "Wow, this is like
you know, I'm ready to like really have
fun with this thing." Um it was just a
really different world. Um
So, you know, in any case, I feel like
that's kind of the thing um with direct
access versus commission-free. It
doesn't mean that direct access is
better for everyone. You know, as a
beginner, I don't know that it is.
Um Yes, it's fast. Your execution's
fantastic. Um you know, but you do pay a
price on that, and then that's going to
increase your, you know, operating costs
in the business model, right? When
you're thinking about this as a
business,
you know, you've got your costs, which
is of course, you know, your education.
You pay for education, go to seminars,
you take my classes, whatever. You go to
Las Vegas, you go to the convention,
whatever you end up doing to try to
learn more about the market, you know,
you do these things, you learn more
about trading. That's going to cost you
some money. You got to buy a computer,
some extra monitors. That costs you some
money. Now, if you're smart about this
and you're doing it in a business,
you're
keeping track of all these expenses.
You're going to write them off against
your gains. But, in any case, you're
kind of going through the process of,
you know, investing, but it's a question
of um how do I keep my operating costs
minimal because, you know, we know most
businesses fail in the first couple
years, and you're a self-employed kind
of day trader is not an exception to
that. So, if you can keep your costs
really low, you know, by not having
commissions, I I feel like you are
setting yourself up uh in a really good
way.
But,
you know, it's uh
But, on the other hand, uh when if
you're only doing one trade a day, you
know, one entry, one exit, you're really
not going to be doing that much in
commission.
But, to use those brokers, most of the
direct access brokers in the US require
at least $10,000.
You know, you can't fund an account with
two grand uh as of today. I hope that
that changes at some point. Uh but but
as it is today, it's
you do need a higher account balance.
Mm.
>> [clears throat]
>> So, let's see.
Um
And again, those of you guys uh tuned in
here on YouTube, um so, our Black Friday
sales and Cyber Monday sales are ending
tonight at midnight. Now, I know a lot
of you guys have already checked them
out. A lot of you guys had a great
experience in the room today. Well, you
saw yesterday was a $40,000 day. Today's
another $40,000 day. So, you know, we're
in we're in pretty good shape here,
which is fantastic.
But
but I hope if you haven't already
checked out our specials, you come check
them out and you take advantage of the
bundles that we have for Black Friday
and Cyber Monday before they end.
Let's see. All right, so I'll do a
couple more questions here.
I struggle to hold my winners. I've got
over 70% accuracy, but
I'm red on the year.
How can I stop selling my winners so
soon? So Javier, can you share with me
your your actual metrics so we could so
I could take a look at them? I want to
see the accuracy, which is good, but I
want to see the profit loss ratio. Can
you share that?
And maybe you could also share the time
of day you make the most money and the
prices that you make the most money on.
Brian,
watching the level two bid and ask
imbalance. Sometimes there's a lot of
sell orders which might tell you the
price will go down, but instead it gets
bought right up and it moves up.
Or sometimes there's big buyers then it
goes down.
So
yeah, that's true. And and
and the thing is
you can have marketable orders that
don't appear on the level two. So a big
buyer comes in, they're just buying from
the sellers on the ask, those are
marketable orders, they don't they don't
appear.
Generally, I wouldn't expect that type
of price action of seeing a stacked
offer and then the price goes higher
unless it's a very low float stock. Cuz
usually if the ask is stacked up with
sellers, usually it does not go higher
very easily. So I would check the float
on the ones that are working to see if
you can draw some correlation there.
All right, so and anyone who's streaming
on YouTube who jumped over just to say
hello who's also Warrior Pro member, let
folks on YouTube know
what it's like being a member. Those of
you guys who have joined, let people
know
so they can you know, hear it from a
real student. It helps more probably
than hearing it from me.
SMX continuing higher. This is this is a
tough one and this is incredibly
frustrating for short sellers because
you now have a stock that's gone from
$36 to $59 a share here. It's halted up
again and it's on very light volume. So
if you were short this stock, there's
not a lot of liquidity to get out of the
position. And so now suddenly it starts
to get into these areas where it's like
uh-oh. You know, this thing
you know, what if it breaks over you
know, the high? But the reality for me
is that
it's not easy to day trade because the
spreads are too big.
But let's just check to see if they're
putting out more headlines again today.
So access, so we got one at 9:00 a.m.,
one at 10:00 a.m. and
yeah, they had some and then they put
out headlines all day yesterday. So
they're putting out so many headlines.
Look at this. Look at how many headlines
they're putting out.
They're they got an equity purchase
agreement and it arrived at the exact
moment the world needed proof. Who's
writing this?
Equity purchase agreement becomes the
engine behind the proof economy.
I mean, these are
this is is this chat GPT? Someone's
taken over. I don't know.
It's really funny.
But the price goes higher.
All right, so let's see.
And yes, thank you guys on YouTube. So
let's see.
All right.
Okay, so back up here. So
So Javier, just waiting to see if you
post those metrics and then I'll look
more closely. So yeah, the bid stack
okay and then I want to know if the
stacked buys and sells um
So
I'm asking about them from the
perspective of support and resistance.
Sometimes you say that you sold because
the bids were pulled off.
So sometimes we'll have a big buyer
right there, there's a big bid and then
all of the sudden the bid disappears,
someone cancels the order and then I'm
like uh-oh, that's not good. That big
buyer has now disappeared. So that
doesn't make me feel great when I see
that.
Yes,
definitely have
an update coming on that regarding level
two. I'll keep you posted on that.
I'm with DAS and IBKR, but sometimes I
don't get out fast enough. Any ideas? So
DAS Trader is the front end play
trading software, but all your orders
are going through IBKR. So your
execution speed is
you know, a function of IBKR and that
yeah, unfortunately
trying to trying to get in and out a
little trying to anticipate trades is
probably the best thing you can do. So
you're getting you're sending your order
just a little bit ahead, but
but I am a little bit worried about
you know,
the fact that Interactive Brokers just
in terms of like their the way their
orders are routed might not be as fast
as what you want.
Would you recommend using WeBull for the
one trade a day phase?
Yes, I mean, I'm literally doing it
right now and so far I'm pleased. Now I
funded the account with $2,000.
So for this size account, it's felt
adequate. I might at some point do a
bigger challenge with WeBull where I
fund it with 25 grand and really like
really put the thing to its test and see
like can I trade big size with this? Can
I jump in and out with 5 10,000 shares?
And I you know, I don't know. I'm we'll
find out you know, how that works. But
my experience doing that with
ThinkorSwim, like I said is that I would
only do that when the market's really
really hot. Like yesterday and today the
market's really hot, these would be days
that would be I could probably do okay
at ThinkorSwim, but you know, when it's
colder, I just find that I end up um
not doing as well.
Okay,
so let's see.
All right,
besides the half dollars and the whole
dollars, what else are you looking for
in terms of targets?
Um
Sometimes I'm sometimes I'm looking at
daily levels. So like in the case of
SMX, I would kind of start gravitating
towards that 6388 level on the daily.
That was the daily high.
Of let's see, what day was that?
That was on the 28th. Right, because
this was technically after hours trading
because of what time the market closed
on this day. But so the all-time high
though is 76. So realistically the
intraday level's more important, but
that's the type of thing that I would
pay attention to.
So this is showing a resumption by the
way right now of $62.
So I'm just kind of check the time. So
time is 43 and 42 seconds. So it's
already on a 10
Well, actually no, 44 and 11 seconds. So
is it going to resume here?
No, looks like
there were a couple ADFN orders it looks
like that went through.
Yeah.
There it goes.
So
So the high right there is 6248.
So you see the level two is moving
around, but not a lot of orders are
actually going through.
I mean, the amount of orders are going
through is actually like
extremely minimal right now. What is
going on with this?
Like I've got it sorted wrong. Hang on.
Um
Yeah, kind of like that. Okay.
I'll have to save that layout.
All right, I'm going to save my layout
here so I don't forget it.
Okay.
All right, everyone. So we're coming up
here closer to 11:00 a.m. So I'm going
to take
the next hour, I'm going to grab a
little bit of lunch and then Warrior Pro
members, we're going to be back here
resuming class at noon time and I'll be
teaching this afternoon. All right, so
we've got a lot to cover. Those of you
guys on YouTube, if you want to join for
class, you can become a Warrior Pro
member today. Use the Black Friday Cyber
Monday coupon code, jump on over and
class is starting at noon. All right, so
we're going to continue class today and
then I'll be teaching again tomorrow as
well. Okay, I'll see you guys.
Warrior Pro members, I'm going to leave
this room open so we'll be back here in
about 1 hour and those of you guys on
YouTube, I hope to see you in the chat
room bright and early. I'll be streaming
tomorrow at 7:00 a.m. Thank you guys as
always for tuning in and reminder
trading is risky. My results aren't
typical, so please manage your risk and
always practice in a simulator before
putting real money on the line and
remember there's no guarantee you'll
find success whether you trade on your
own or you learn from me. So please take
it slow. Better be safe than sorry. All
right, thank you guys as always for
tuning in and I'll see you guys real
soon.