Day 2 of our NYC Seminar +$1,463 in 20min!

 

All right guys. We’re going to do midday market recap. Okay? So, let’s see.

All right, everybody. So, time for our midday market recap. We’ll go over the trades from today. Today is day two of our New York City Inner Circle Seminar and I’m finishing the morning up $1,463.31.

Thank God. Another green day. That’s exactly what I wanted. So, yesterday, 800 bucks. 830. 1,400 today, so $2,200 in the last two days. This really is the definition of financial freedom, to be able to make these kinds of gains, day in and day out, and I wasn’t doing anything different today than I would do on any other day.

So, the two stocks we traded today, APVO and CVNA, straight off the watch list. These were the stocks we were talking about this morning. Both of them gaping up, leaving gapers with catalysts. Reasons to move higher. So, very straightforward trades, just the same strategy, same routine.

So, for those of you in the room, let’s get a show of hands for who traded today. You traded CDNA and APOP, right?

I did trade APOV, twice.

Or APVO? Yeah.

So, who today was a profitable trader, hands up. Very good. Who didn’t trade today at all? All right, very good. All right, who lost money today? Got a couple, okay.

So, not bad. Most of you guys did pretty well. Who traded the small caps today? Show of hands. And who traded the higher priced stocks? Okay. So, the higher priced stock was shot?

Shot.

You were short at $98, covered on the move to 93, 94?

Yeah.

Ish?

[inaudible 00:02:00] a point down to 94.

Yeah, so a three-four point move? Obviously fantastic opportunity there. Shop was a trade that played out over a little bit of a longer period of time, whereas APVO and CDNA were both a little bit faster moving trades, which is typical of the small caps.

We can go over the trades that I took and I’ll show you my entries and my exit points and then we can talk a little bit with some of you guys and find out about how you traded these stocks as well.

So the very first trade this morning with CDNA, you can see this right here, my entry at $5.93, $5.93, $5.94. So the reason I got in at that price… Let’s look at our chart. CDNA; our pre-market high was $5.95. So I was getting in for a break of the pre-market high. As soon as the bell rang, I was looking to jump in, anticipating that we would break over this level right here. So as you can see pre-market, we had this little period of consolidation, and I’ll move this chart over a little bit so those of you here can see this.

So we had this little period of consolidation right at $5.94. Now I had originally wanted to get in this at $5.50, but it broke out pre-market. I could have taken a trade pre-market, but I really don’t like doing that so I just waited for the bell to ring. That’s kind of my rule of thumb, wait for the market to open. So as soon as the bell rang, I was looking to get in on that one minute micro pull back.

So in with 7,500 shares right there. We pop up over 94 and squeeze up right there to $6.40. An even bigger move than I was expecting. Now, when we look at these candles on the one minute chart. You can see how, whoa, they just went straight up. But if we break this down all the way to a one second chart, you’re going to see that it’s not always as clean as it looks on the larger time frames. I’m going to zoom this back here. What you’re going to see is that we popped up and we did pull back just a little bit before going higher and one of the challenges for us as really active traders is not knowing when stocks are going to really open up and when they’re going to pop up and then fade.

So right here you can see this is the one second chart. So we pop up to literally one second candles. 95, I’m in. We pop up to 10, boom, we have a quick flash down here and then we continue higher to 20. We pull back a little bit back down to 6, back up to 18, back down, back up and then we sort of start to take off. So over 620, right here, was a [inaudible 00:05:04] set up for a move higher.

So then lets look here, if you scroll down, or if I scroll down. You’ll see that I got in, I sold, and then I added back at $6.20. I added back at $6.20 for that little break. That little micro-break. Now, when you’re looking at the one minute chart, you can barely see it, because it happens inside the one minute candles. You bring it down to the one second chart and now you can see that that’s what I was seeing. And I was seeing that on the level, too. I was seeing the prices drop, consolidate, and then start to pop back up and I thought if this breaks over $6.20, it’s gonna go higher. So I get back in and I add and then we get that squeeze further up.

So, in total, $915 on this trade in the first 3 minutes-4 minutes of the day.

Why were we not concerned about resistance at the $6 mark.

Well, the $6 mark, it’s a whole dollar. So a lot of times, these stocks will break the whole dollar really strongly. Whole dollars are psychological areas of resistance and so are half dollars. So we see stocks pop up to them, they sometimes tap that level and pull back, and recently, we’ve seen a few stocks that hit the whole dollar and actually really reject that level. They don’t break it at all.

The best time for them to break it though, is in the first 30 minutes. That’s when stocks have the most volume. So that’s why I was pretty confident it would break over that level. As it came up to $6.50, towards $6.50, you can see around $6.40. It wasn’t able to break over that level at that time so it didn’t end up being strong enough, but I will often buy stocks at half dollars and remember pre-market was looking at $5.50 because I was thinking over the half dollar there. If we could break over that psychological area of resistance, we’d have a good chance of getting up to the next half dollar.

Yeah, because I was trying to get in at about $6.03 to see [inaudible 00:06:58] level and it just blew right by me.

Right, so that’s why I like to get in early to anticipate it. If I see a lot of buying at 94, 95, 96, 97, I’ll press the buy button there, get in a little lower and if it does do a false break out, I can stop out at like 89 or 90 and my loss is only 7 or 8 cents. Versus I wait for the break, I get in at $6.05 and it’s a false breakout, meaning it pops up and then immediately drops back to 89, my loss is twice as big, number 1.

And number 2, sometimes it pops so quickly that I don’t get [inaudible 00:07:34] at all, because it goes straight to $6.20. So that’s why I usually anticipate and so I’ll start with 2500 share orders and sometimes if I see a 10,000 share seller at $6 and I’m feeling a little aggressive I’ll say, “10,000 shares? Those are mine, I’m taking them.” Boom, I hit the 10,000 share buy button and now I’m in 15,000 shares. That seller’s gone and it’s gonna break. The only thing to be careful of is if he’s a hidden seller. If he’s hiding shares, because you only have to show 10% of your order.

So what I usually would want to see is that if maybe it looks like 10,000, it’s going 8, 7, 6, 5 and then I’ll press the order. If it’s 10,000 and you’re seeing lots of buying and it’s not changing, then he’s hiding shares, so that’s a thing to be a little careful of with any entry at a breakout point where you’re buying up what appears to be a big seller.

So CDNA, great trade out of the gates, but unable to hold the gains today, dropped back down to $5.30. Kind of consolidating there.

APVO, this was the second stock on our watch list. I was watching it pre-market over $3, but just before the bell rang, you can see how it dropped down here to, like, $2.85. I thought that showed a little bit of weakness, I wasn’t really liking that it did that. It then pops up out of the gates and right here would have been a great opportunity to buy a little one minute pullback. Now, unfortunately, I was distracted with CDNA, so I missed that pull back. Now, whenever I miss a pullback, what would you usually do, Shanna? If you miss a flag set up like this, where would you usually get in?

I’d wait for a one minute pullback.

Yeah, a one minute micro-pullback and so that’s what I did. So let’s look at my order entry. So my entry was at $3.30, right here and I got in there because of this little pullback. Now, when we look at this again on the one minute chart, it’s hard to really see that there was anything of a pullback there. It wasn’t really a pullback, but when you’re looking at the one second chart, you can see that it dipped down there and then started to pop back up and you know that that happened because of the lower wick. The lower candle wick.

So it dropped down and it popped back up. I jumped in at 30, it pops up to 40, up to 58, and I’m selling on that move, my best exit was at 52. So, really two stocks today, $1400 bucks, that’s the daily goal. If we can do that consistently every single day. $200,000 a year is well within reach. Today was an ordinary day, there was nothing really really exciting. Nothing that was just really outstanding. It was just a couple set ups right off the watch list. I was a little unsure pre-market because we didn’t have anything that looked super super obvious, but CDNA was looking decent, APVO was looking okay and then we were able to get a good trade.

So what I’m thinking here is that, we can take a moment and talk with a few of you guys who took trades this morning. I’d love to hear from you, Shanna, to see how you did this morning, because I know trade price range and the same stocks that I usually trade.

Yeah, I traded the APVO. I waited for a little bit more confirmation than you did for the morning. I jumped in at 9:37 at $3.49. At a half dollar break. Jumped out at 10 cents; at $3.60. Then I took another trade at 9:44. It wasn’t necessarily a one minute pullback, but I was watching level 2 and I could see that it was filling in as it was pushing that $3.60 level. And the next panel opened at $3.58 so I went ahead and jumped in at $3.60 and that [inaudible 00:11:31] for another 10 cents. And then I took a [inaudible 00:11:34] on STZ to $11.50.

Short STZ to 11… Okay.

And took half my shares off at 2 and a half points at [inaudible 00:11:42] and then I let the rest ride, but with a conference call, I ended up breaking even on the rest. So I finished the day at 600 bucks.

600 bucks! Not bad. Very good. Great Job. Alright, anyone else want to share their trades from today? Go ahead.

[inaudible 00:11:58] but I was watching CDNA…

CDNA.

[inaudible 00:12:06] 500 at 9:26. Sold them at 9:28 and I see it kept going really strong so I jumped in at the gate. First time I’ve ever made money out of the gate. It worked out really …

Great Job. Really good. So the trade’s pre-markets are tough. CDNA was actually a good one pre-market, because it broke over that $5.40 level.

The selling was like the market had opened already.

Exactly.

[inaudible 00:12:35]

Right. A thing that’s kind of interesting was some of these stocks pre-market they already have so much volume, they’re basically trading as if the bell’s already rung and so when the bell does ring, yes you get more volume, more people will buy, but it’s just not exactly the same. That’s usually why stocks that have millions of shares of pre-market volume don’t really like the for the gap and go as much, because it’s almost like, I’m not the first one to see it.

CDNA was still under a million shares though, it still looked pretty good. So good job on that one. How much did you make?

I needed 500 pre-market and then a 1,000 after, but I think I got about 20 cents on both so $200.

$200, that’s good. Really good. Anyone else? Yeah? Renee?

I trade on MSC.

Yeah?

I never get sales.

Yeah.

It’s kind of crazy [inaudible 00:13:28] CDNA. So I’m thinking of just doing live trading, but doing small shares so that I can get in. So [inaudible 00:13:36].

You’re using limit orders, right? Yeah. This is one of the things Nicki was talking about earlier the fact that when you press the limit order… Let’s say I have a limit order of $6 and I’m waiting for it to break 6 and then I press that buy button as it’s breaking 6. A lot of times I won’t get filled, because it’s popping up too soon so that’s where the approach would be anticipating the move and getting in at 97 and 98, just below that level is good.

On the flip side, if I’m selling a stock for a loss, I don’t want to sell below the whole dollar, because I know as soon as it breaks, it’s gonna wash out. So I’d rather sell at like, $6.02 or $6.01. Because if I plan to sell it $5.99, I’m probably getting filled at $5.89. I’m gonna lose another 10 cents in slippage. And it’s because so many people put their stops there, but they do both when you’re on the long side and the short side. SO in a way, we’re taking advantage of short sellers who have their stop at, like, $6.01. Thinking that as soon as it breaks that, their stop order’s gonna market them out and boom, that’s a buyer. You have that times a hundred of those people or a thousand and that’s an even bigger surge over those whole dollars.

So just change it a little bit?

Yeah, that’s what I would do. I would try to get in a little bit lower and if you’re using a limit order, maybe put a little bit of a bigger offset on that limit order. Yeah. Any other trades? Yeah, Jessie?

[inaudible 00:15:01]

Well, you certainly could. The thing with live if you’re trading with only 100 shares then your risk is really minimal. So really you’re just burning some commissions, but if you figure, “Well, I don’t mind spending $400 bucks this month on commissions just to practice.” That’s okay. I’ve done that before.

So I’ll wait a little while.

It’s your call though, yeah. Jason, what were you gonna say?

Just a couple of things on FST. You’re right, sometimes it is hard to get filled. I’ve watched orders go through at my price and FST doesn’t give me fill. So you’re exactly right, it does happen. In the long run, it might actually make me a better trader, because it’s actually a little bit harder on FST than it is live. Yeah, so…

That’s interesting.

You’re right. I’ve sat there and watched. I’ve gone back and looked at the time of sales and there were lots of orders that went through and it just didn’t get any fills.

Yeah, that’s how we designed it. Any other trades?

Jason, [inaudible 00:16:06].

Yeah, Justin?

I had to exercise great patience, I’m glad everyone was here or my computer might be up against the wall, but, typically I’m trading with this computer and then with a desktop. So I have a different set up with bigger screens. I tried to get into… the Shop shorted at 98 12. I was just gonna mark it in and my hot button’s… Nothing.

Not working.

And so, I had to restart the platform and of course it worked, but I didn’t want to chase it at that point. Just went and got another cup of coffee …

Yeah. That’s the thing to do when you miss-trade. You can definitely have that sense of frustration, even today for me, I missed HMNY and I’m not sure… I say that I missed it, because it went up from $13.50 to whatever it was high of $14.50 and I didn’t make money on it so I missed the trade, but I don’t really think that there was a good opportunity to get in it. If I look back at this chart, I think maybe the best opportunity would have been this one minute pullback where… which was not a bad one, but remember this is a stock that routinely has 8, 10, 12 cents spreads and so even with 2,000 shares, I could be instantly down 250, 300, 400 bucks if it goes the wrong way. I just wasn’t sure I wanted to risk it. It also doesn’t have enough volume that it’s gonna be easy for me to sell on the ask, because there’s not enough buyers. So it means I’m most likely gonna mark it in by the ask and sell the bid to get out, which with a big spread means my profit is gonna be that much smaller.

So part of me was looking at this at $14.50 and I was like oh I’m thinking about it and then I said look at this, this would be too extended to buy it here, I need tow ait for a pullback and then by the time we had the pullback, I just felt like it was still too extended and the spreads were too big.

Right now, we’ve got a spread of 13 cents on it. A 13 cents spread. If I got in here at 88, I’m immediately down 13 cents. If it drops 10 cents, I’m down 23 cents. If it goes up 10 cents on the ask, that’s 98 on the ask and I’m still at a loss of 3 cents. Even if it goes up 10 cents, I can only make money if I sell on the ask. So that just makes it a little bit difficult. That means I need it to move 30 or 40 cents for me to get a good 25-30 cent winner. And certainly this stock is the type that can make those big moves, but I felt a little unsure about it and I wanted to stick with my guns and be disciplined, but it’s one of those things.

It can be a bit tricky, but I’m glad you were able to do that today and it’s definitely better than chasing, because when you chase it, then you’re the guy that buys it way up here at $14.50. You’re holding down to $13.90 and you’re down 60 cents and then you’re lucky if you can get out break even or for a 5 cent profit.

Well today it probably would have worked, but the times that I have just hopped in… it doesn’t work, so I just figured I’m better off being in cash…

Yeah. No, you absolutely are. You have to protect your capital as much as possible. So when you trade, you look for A quality set ups. You get in. You get out. My approach, my strategy is definitely to be aggressive. These trades today were all very quick in a matter of 15 minutes, I was up 1,400 bucks. Mike was probably holding his position for 15 or 20 minutes and during that time I’d taken, like, 5.

So it’s just a different approach and they both work. It really comes down to the way you prefer to trade so let’s do a question. How many of you, when you’re getting ready to take a trade, feel nervous and second guess a trade and then end up missing on the trade completely or have struggled with that in the past? Yeah. Okay.

And then how many of you guys, when you’re about to take a trade, you want to jump in, you want to be aggressive, you’re thinking about to profit and you’re not really as much concerned about the risk, you’re just trying to generate quick gain? Yeah. So one of the things I’ve noticed is that traders who want to jump in and be aggressive, often times prefer a faster moving strategy because when you’re nervous about getting in, you want to have a lot of time to think about it and to contemplate “This is my entry.” And so Mike’s strategy is, “I’m gonna think about my entry. I’m gonna trade one stock today and I’m gonna hold it for maybe 2 hours.” So you’ve got a lot of time to analyze it, to break it down, to really talk yourself into the trade, to have to talk yourself into the trade.

Whereas with these trades, it pops up on the scanner and before I can even talk myself out of it, I’m in it with 2,500 shares. And then I’m up 10 cents, 250 bucks, and I’m back out. For me, I do that because I see a quick opportunity. I wanna get in and then I wanna get out, because I’m afraid of leaving my money just sitting out there, to leave it out standing. I feel much safer to get in and be aggressive and get out quickly. So depending on where you are on that spectrum, we could almost do a questionnaire at the beginning of the course and it would give us a good sense of what strategy you’re more likely to go towards. My strategy, which is a little bit more [inaudible 00:21:43] based. Quick gains, get in, get out, book the profit, look for the next one where you don’t have to analyze the trade quite as much. It’s a little short term.

Or Mike’s strategy where you think about it, you really analyze it. You get in and you kind of step back a little bit. And that may mean you get in and you’re down 30 cents, 40 cents, or a dollar, but you’ve already done your analysis on it so you’re willing to give it a dollar. It goes up. Maybe you add another 200 shares. And then it comes down. Now you add another two hundred. So it’s more of a process of working through the position.

It’s a strategy that, in truth, I have a little bit of a hard time trading because I don’t want to get into a trade and be down 30 cents. I don’t mind scaling in, but I’m scaling in pretty fast, within a period of 5 minutes I’m fully in. I have a hard time sitting there with a big position and seeing it down 30 or 40 cents and I never, personally, will add to a losing position. That’s just for me, not something that I like to do and especially with the small caps, it’s not usually a good idea. So, you have to sort of have that internal dialogue of which strategy and where on the spectrum you for of fit. You guys, for the most part, have found that for yourselves.

I know Roberto has done a little bit of both. He traded the small caps for a while, now he’s back on the larger caps.

[inaudible 00:23:13]

Yeah, go ahead.

It’s been a day for me, which the community made a difference. So it’s like, Mike saved my day. I start my day in a hole, basically I went too long on STC and it stopped the collaborating then dropped so I stopped out. And I was like, oh, okay. Then Mike called out Shop. I knew a little bit because I made a little of my research pre-market and so I jumped in and I made all my money back so thank you Mike.

Yeah. There are certainly some traders who are able to master one side of the spectrum and then they can go to the other. John has been practicing that. I think you’ve been practicing that a little bit. And ultimately, it’s gonna make you a better trader because you’re more diverse.

On a day where small caps are dead, you can trade large caps. A day when the large caps are dead, you can go small caps.

It’s one of those same reasons, like you said, with the Momo’s I can get in. I can get out. And it’s fast when the right setup sets up for me. And then with Mike’s I can put it on the back burner and let it work while I’m checking out the Momo’s and stuff.

I think I gravitate towards wanting to make a quick profit. Get in and get out as quickly as I can. A quick profit with as minimal time in the market as possible, because I don’t feel as comfortable being in the market, because when I’m in the market I feel exposed I feel risk. So the way I mitigate that risk is by trading fast, right? Less time in the market; I don’t feel that feeling anymore. So that means I get in, I get aggressive and I get out. And it’s for me, what’s always seemed to work really well, but the other approach of when you’re a little bit gun shy on the market and you’re afraid of taking a lot of size and being higher risk, getting in and getting out quickly.

That’s when there’s some traders who are like, I don’t mind holding 300 shares for 4 hours. And that was never me, but if you’re able to do it, there’s a lot of opportunity on the higher priced names. I don’t really consider them the quick winners, because sometimes it’s a little bit of a battle. They often don’t have an apex point of exact price, up to the penny that the stock has 90% chance of breaking out the way small caps do.

Small cap, the first candle will make a new high, I mean literally right here, the first candle to make a new high, traders are looking at that, but with a large caps, the first one minute candle to make a new high… I mean it’s like, using a one minute chart is almost irrelevant, because it pops up, it drops back down, and then it goes.

I guess it’s kind of appealing [inaudible 00:25:58] maybe because it seems like it’s less risky[crosstalk 00:26:01] because I don’t have as much on the table. [crosstalk 00:26:04]anyhow, I only take[crosstalk 00:26:06] because of the false breakout thing, end up taking it. I could be down a lot more than really I’ve been with my strategy [crosstalk 00:26:15].

Yeah, no, that’s absolutely true.

Just trade off, you know [crosstalk 00:26:20].

[inaudible 00:26:22] but I mean, your trading is impressive, because you’re so fast and you’re so on top of it that you can lock it in, like, seconds like today. How many seconds were in that trade for that $800? That’s unbelievably impressive to me. But to me, exactly, I would have to [inaudible 00:26:40] I would love to be able to duplicate, but [inaudible 00:26:45] extremely difficult it would be to pull that off. It’s kind of a contradiction for me to be in [inaudible 00:26:57] because I’m a little on the conservative side financially and also for me to…that’s why I’m more personally drawn to [inaudible 00:27:05] strategy, but I’m so impressed about how quick you lock in and out.

[inaudible 00:27:17] John, he definitely gravitated towards that strategy initially. That same kind of feeling of just get in, get the money, get out. It’s a quick opportunity. It’s a very obvious set up. It doesn’t take as much work to analyze the charts. The piece that’s more difficult is getting the execution, the timing. Making sure you have the perfect entry. And making sure you take your loss when it doesn’t work. Those are very important, especially when you’re using large share size. And the ability to make 1,400 bucks is requiring 7,500 share positions. Where is the ability to make 1,400 on a stock that drops 5 points, you know, 300 shares and you’re pretty much there, if you get the full 5 point move. Maybe a thousand shares scaling out.

Now the entry with the Momo’s is much easier for me because it’s patterns and stuff, that’s why I like them. I can get in and out. With Mike’s my entry is just[inaudible 00:28:13] way is the best.

See that’s the thing. I have a hard time with the entry because it’s hard for me to really… It’s almost like that… the thing we were talking about yesterday was a swing trading strategy, or the longterm investing of cost averaging, because when you cost average, and you add a $1000 a month to the market, you’re timing doesn’t matter when you’re gonna hold for a longer period of time. And that’s sort of the thing, if you have really strong confidence in the pattern and in the technicals. You’re exact entry, it almost… I mean it doesn’t matter as much because you’re kinda working around an average.

For me, when I get into a trade and I look at a chart I could usually tell you… we look at CDNA and we look at APVO, I could tell you my exact entry looking back on the chart that would make sense and what my cost bases would have been, but for… as well especially with CDNA on the break of the pre-market high, it was 94. And you can see my entries right here, at 93, 93 anticipating the breakout and then at 94 that was exactly the right entry for me. Whereas if I was looking at one of Mike’s[00:29:23] one of the trades that Mike has. I don’t know that I’d be able to dial down what the proper cost bases would be to the penny, because, you know, you add a little bit and stuff like that.

Mike’s gonna talk more about this in about 15 minutes when he talks about position sizing, but I’ve been so impressed at his ability to spot these large moves and his ability to have the confidence to buy a stock that, the pattern, to me, on a one minute chart, I’m not seeing, because he’s looking at a bigger time frame. He’s looking at the technical lines on the daily chart. So despite the fact that the one minute looks strong, he’s shorting it and I’m thinking that I don’t quite see that, but he’s looking at this daily, technical line, this resistance point and it obviously works very well.

He takes a starter, if it does break through that level, adds another hundred shares, another hundred shares, whatever it is and then it starts to roll over. And the higher priced stocks can respond incredibly well to those technicals, the lower priced stocks don’t always respond as well to the technicals because they have so much exuberance. Traders that just mark it in. Beginner traders trade lower priced stocks, because they’re cheaper. And that’s why I started with them, because I couldn’t afford to trade a stock like Shop or a stock like S…whichever the other one was this morning. [crosstalk 00:30:48] Yeah, STC. I just didn’t have the account size. So inevitably, I was trading 3, 4, 5, 6 dollar stocks and because that’s what I started with, that’s what I got really good at and you traded them a lot with me when we were a bit younger.

Yeah, I used to try to trade them.

But your approach, you weren’t quite as… You didn’t always like scalping and so that meant when you got into a trade and it did go up 40 cents he had a bigger winner than me, but when we got into the same trade and it only went up 15 cents, I had a small winner, it drops 20 cents and he’s still holding the whole position and there were times where you’d end up being like, “Well forget it, I’ll just hold it overnight.” Because you get stubborn, you get frustrated and so you sort of gravitate towards that, “I don’t wanna try to get in, get out.” I don’t know.

And I think that’s why I had to move away from them because I wasn’t seeing how to take that profit immediately, so I would end up hanging in these ones a lot longer than Ross would be and I’d be losing money and I’d hold it overnight and go through, probably the same thing that a lot of you’ve experienced, but… So I had to try to figure out what about was not working and then I kinda moved over to trading the higher priced names where you gave yourself a little bit more leeway to get into a position and just fit my style of trading better.

So it’s important, just, whatever fits your personality better. To realize that and take advantage of it, because… Just because a strategy is instant gratification doesn’t mean everyone can do it. It has a lot to do with just the type of personality you have, because I to this day I couldn’t go back and trade those, there’s no way I could do that. So for all of you guys that can, it’s impressive…

So I think our job is to teach you 2 strategies, essentially. A strategy that I use that works really well for me and the strategy that Mike uses that works really well for him. And then you take from those strategies what you will and every one of us is going to create our own strategy. They’re all gonna be based on the same common foundation of risk management, understanding what a good stock to trade is. We both have the same definition of good stocks, both of them were stocks with catalysts, stocks that have high volume. We just apply the technicals a little differently.

So each one of you guys will ultimately come to your own strategy, which may be very similar to mine, the way John’s is, or maybe the way Shanna’s is, or maybe more similar to Mike, the way some of yours are and that’s totally fine. And through that process of learning, being able to get to the point where you have your own strategy is something that you’ll feel really good about.

What, for instance, Jason and Shanna, is your morning routine? Because, I know that you guys have a routine every single day that’s based around the strategy that you trade. So what’s the routine look like for you guys?

So we’re on West Coast.

You’re on West Coast time, right?

Yeah, so we get up early, 5 AM. We get up, the first thing we do is meditate. So we meditate for 20 minutes, get our mind right. Make coffee, by that time it’s 5:30.

Get everything booted up.

Yeah, get everything booted up, start looking at the gap. At what’s gaping up, what’s gaping down. By that time, Mike’s online, he might be starting to talk about what’s gaping up, gaping down. Roberto calling out stuff and looking at levels and so forth. And then, at 5:30 and 6:30, we just monitor what’s going on with the market. I decide the [inaudible 00:34:43] for the market [inaudible 00:34:46] influence a little bit whether you want a short or go long. And just watch your stocks, like Shop, today.

Shop today was one of my favorite set ups [inaudible 00:34:57]. And when I saw it between [inaudible 00:35:01] it was making lower lows, lower highs, but it had this 100 right underneath, right? And I said to myself, it’s either gonna bounce at that one hundred and go back up or it’s gonna puncture it and if it punctures it, then it’s not really support anymore. As soon as we can get through it… and so that’s exactly what happened right at 9:25. It punctured that 100 daily SMA and immediately I was looking for a retest of it after the bell and it came right back up. Tested it, went a little bit higher, not really enough to really cause any problems, went just a little bit higher and then it just crashed.

So that’s what I do from that last hour in the morning, I’m just watching trying to envision what could happen to this stock to ruin the pattern or what could happen to actually set it up.

And that’s the interesting thing, because we’ve discussed all these stocks and as you see, I decided to take STC as a short this morning and he leaned towards Shop. So the discussion in the morning about all the charts and our trend lines and making sure our resistance levels and support levels are the same, but he doesn’t do Momo’s.

No, I like to watch a stock so I can envision what might happen with it a half hour from now and that’s just not Momo. I tried Momo remember at the last conference, I was all about the Momo, but they’re so fast. I can take a hundred shares and limit my risk on large cap stocks. Like my risk today on Shop was a .82 with a hundred shares and ended up pulling 3 points out of it, with a hundred shares.

I can significantly limit my risk like the day after the last conference? HMNY, oddly enough. The day after the conference, I took 2,000 shares on a gap and go and it dropped a point.

Right, 2,000 bucks.

Yeah, so for me, it just doesn’t work that well. That’s just me, I mean it’s worked out really well for John.

Yeah, okay, that’s really good.

Alright, well maybe what we can do, is switch gears, Mike is gonna start his position sizing class in just a couple minutes and be able to continue the open dialogue, answer questions for you, but… Yeah, so and then after that, Mike will jump in.

Okay guys. Thanks for tuning in here on Facebook Like, I’ll be able to see you all first thing tomorrow morning. Hopefully in the chatroom, bye.