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all right everyone well we are gonna get started here thank you guys for tuning in the topic of today's class is scaling strategies for averaging up and averaging down this is a live broadcast thank you guys for tuning in live and for those of you guys who are watching this Days Later weeks later maybe months later thank you as always for tuning in I love that you guys are motivated and wanting to learn about trading one of these classes that I taught uh last year on timing entries and exits now has over a million views

so thank you guys for tuning in especially your the loyal subscribers to the Channel all right so uh let's go ahead and dive in I know you guys some of you have been tuned in here uh waiting for a few minutes so this is a class that is certainly great for beginner Traders but I'm going to tell you right now that scaling is a little bit more advanced than your very simple strategy of one entry one exit and I'm going to talk about the reasons why I would approach scan mailing and let's just go ahead

and look at the topics for today's class so number one what is scaling some of you already know so we'll go through that fairly quickly I'm going to talk to you number two about when to avoid scaling when is scaling not appropriate and then inversely when is scaling appropriate number three number four I'm going to share with you how to scale into trades and number five how to scale out of Trades so those are the five topics that we're going to cover in this class and I'm excited because today you guys are going to get

a chance to download a live trading Archive of me trading o-c-e-a this is a stock where I made a little over ten thousand dollars and during the whole trading session I was using a scaling technique to try to maximize on the opportunity so write down in the link there'll be a link right down in the description we'll also pin it to the top of the comments so if you guys and I'll show you this live trading archive a little bit during this episode but if you want to download it to re-watch the whole thing on

your own by all means please do that and everyone who downloads that um Ocea live trading archive the scaling in and out case study you'll also get a copy of my technical analysis series all right so those are a couple of cool things that we put together for you guys especially for this class here today so without any further delay let's get into it and cover the topic of what the heck is scaling scaling is a position management strategy designed to help maximize profits a Trader who does not scale will have one entry and one

exit for each trade they take a Trader who scales will add several times until reaching full position and then when they sell they'll sell several times until they've closed the position now I have my whiteboard here ready to go so a beginner Trader is going to typically focus on a buy and let's just say we've got a pattern here stock pops up it pulls back they're getting in right there that's the entry it goes up to here and they're taking one exit right there all right so that's their exit that's going to be very typical

a beginner strategy one entry one exit more experienced Traders what they're gonna do what I'm going to show you on this is as the stock is pulling down we might take what I would call a starter down here now you're going to be in at a little bit of a lower price before you have confirmation which carries more risk but it's a smaller position then you add into confirmation and you might even add on the break through the high a day right there so now you have a cost basis of let's just say approximately in

the middle but you're able to start with what was initially maybe 10 cents of risk and now you've got a full position a bigger position than the person who does one entry and one exit and I'm going to show you exactly how that works but this is a strategy where you can increase your position size without increasing the risk you were taking on the trade and then in terms of your exit a scaling Trader might take a little off here a little off here a little off here and a little off here as the stock

keeps going up so obviously some interesting stuff and in fact um I'll show you here uh just today uh we did have some opportunities uh for scaling on a couple of different uh stocks that that we traded I traded uh bfrg which was a nice momentum stock today it was one of our leading percentage gappers and gainers in the market went up about 57 60 percent CL cdlx is uh going up right now these are the types of stocks that if you're not scaling you're going to be leaving a lot of money on the table

all right so let's switch back here to the slides so scaling is about increasing profit without increasing risk or Max loss on a trade well how is that even possible I don't believe it okay well let me show you this is how it works a non-scaling Trader is going to take and this is just you know as a as an example an entry of let's say a thousand shares at 9.50 with a stop at 9 40 that means they're risking 100 bucks on that trade if they get an exit at ten dollars that's 50 cents

a share they're going to make 500 this is non-scaling now a Trader who is scaling let's just say we'll take an entry at 9.50 same thousand shares stop is 940. so they're still risking only a hundred dollars on the trade but at ten dollars this is where we see a difference instead of selling they're adding another thousand shares this is when I'm already up 500 and this is going to highlight the risk here as well so now the cost basis moves up to 9.75. right so your average price is 9.75 but you're holding 2 000

shares and at the current price of ten dollars you're still up 25 cents so now you can set a stop at break even which means now you're holding a 2 000 share position and your risk is back to break even that means you're actually not risking a loss now you know you have to be a little bit careful about this because as you obviously know if you've been trading for a while we do have the risk of uh you know for instance you know a stock that's that's pulls back like this starts to pop up

and then does one of these dramatic candles like that and you know you were you added at 10 and then it dropped below your 975 average and you've got slippage on the exit so you did end up taking a a loss so there could still be some risk but the idea here is that you take your entry so let's say you're in at let's say this is 9.75 and this right here is ten dollars uh sorry that's 950 that's ten dollars right there so your average is right in the middle this is your cost basis

now a conservative Trader a beginner Trader is doing the right thing by taking the whole thing off the table at 10 rather than adding but a more aggressive Trader who's trying to capture more potential is going to add at 10. new stop is 9.75 and now with 2 000 shares if this thing goes up to not to 10.25 right here they're going to end up making a thousand dollars and what was the risk on the trade initially they were still only risking a hundred based on the initial entry at 9.50 by the time they were

adding to a 2000 share position their risk was back to Flat stop it break even but the thing here that could be a little confusing is that you are risking giving up your unrealized profit because you're up 500 and you're choosing not to sell it and take that 500 off the table so that's where the the risk comes in in a more significant way and so I'm going to talk as we go through this class about the times when I think it's appropriate to scale and the times when it's not as appropriate to scale so

you could see here on this example and I'm going to let my my dog in this is this is a problem with sitting close to the door as she she knows I'm here so she goes in and out so here in this example uh you were able to increase your size to 2 000 shares and on a 50 Cent winner you made a thousand bucks instead of 500 so you're able to increase your profit without substantially increasing the total amount you're risking when you first were taking the trade you were still risking only a hundred

dollars okay now hey by the way for those of you guys who have been tuning in for a while I really do appreciate you hitting the thumbs up we have um something that we do over at Warrior trading we ask our students to give us our test their testimonials and things like that and we have over 2 200 of these testimonials uh 92 percent are excellent five out of five so for those of you tuning in perhaps for the first time I would um I I I hope that this is a good intro to being

a bit of a student of warrior trading even though it's on YouTube I hope it gives you a little bit of a sense of the way I teach my personality and I hope maybe you guys make your way over to Warrior trading and check out one of our classes for your starter Warrior Pro over 2 200 testimonials 92 being five star they've got to be on to something all right so now let's talk for a second about when to avoid scaling so during my small account challenges I do not scale when I'm doing a small

account challenge I almost always take the approach of one entry and one exit especially during the beginning of the challenge so why would this be the case with a small account taking one entry full size then getting out with one exit is a more conservative way to trade this is about being consistent locking up lots of consecutive base hit winners small accounts are proof of concept and confidence builders so let me say that again a small account it's not about making a lot of money it's about building a track record of success a track record

of consistency creates confidence that's what gives you the motivation to keep studying to keep trading and to consider funding a larger account where you can make a little bit more trading with a 500 account there's no six-figure trade or seven-figure Trader who resets their account to 500 at the beginning of each month so if you're trading at a 500 account just consider it proof of concept and as many of you know my average trades right now and this is just giving you some context here so my average winners are one thousand four hundred dollars why

don't you take a guess at my average winner in terms of number of cents per share how much do you think I'm making on my average winners in terms of cents per share and this is using a scaling strategy my average winners are 14 cents per share so you could do the math here my average share size is 10 000 shares just like that so if you're a beginner Trader and you're trading with a 100 account you're trading with a 100 or sorry uh with 100 share size let's say you're trading with 100 shares your

average winner of 14 cents it's only going to be 14 bucks you're trading with a thousand shares average winner 14 cents is 140. you're trading with 10 000 shares your average is going to be 1400. you're trading with 20 000 shares your average is 2 800. you're trading with 40 000 shares right you can continue to scale up now at a certain point you're going to run into liquidity issues but scaling from 100 to 1000 to 5 to 10 000 for stocks that I trade that's not difficult and that's because I focus on stocks that

have high relative volume I'll talk a little bit more about that in a moment at the end of this class I'll share with you my um four or five tips for trading the right types of stocks each day all right and that'll include a calculation on relative volume so my Approach here and my belief is that as a beginner Trader uh if you're focused if you're trading in a uh in a small account you should avoid scaling you should focus on one entry and one exit one of the things I talk about a lot is

uh and I actually have this built out as part of our trading plan for warrior Pro students in chapter 14. the trading plan focuses on one trade a day focusing on trying to capture 10 to 15 cents per share that's the same as what I'm trying to capture yes you're doing it with only perhaps 100 shares but it's about building consistency and a track record because if you could do it with a hundred shares you should be able to do it with a thousand if you do it with a thousand should be able to do

it with two thousand so many Traders throw out that good advice and instead say no no no no no I'm trading with 100 shares which means I want to make a hundred a day so I've got to get a full dollar a share out of the market that means you're trying to on average have your winners be almost 10 times bigger than my winners I've been doing this for more than 10 years I think that sounds like a good idea to try to be out trading me on the average winners by a multiple of 10.

doesn't seem like a good idea to me in fact it might even be a better idea to set your goal a little bit lower than what I'm doing and yet that's not going to work for a lot of Traders with a tiny account which reiterate tiny account proof of concept that's all it is so if you're someone out there with a three four five six hundred thousand dollar account and you're actually trying to make six figures with it I'm gonna tell you and I'm not going to tell you what you want to hear I'm going

to tell you the truth that's going to be darn near impossible but you can do proof of concept and I really did take a 583 account and I did turn it into over 100 Grand in 45 days and I did it by taking one entry one exit so just for instance my first day and I could show you you could always check out the metrics if you want to um but they're they're over on our website but I'll just show you real quick so my first my first trade for instance um on day one uh

I think I made something like eighty dollars eight dollars so I had like five hundred eighty three dollars and then plus the 80. so on day two I had oops um I had about 660. right so I was able to buy a little bit more stock then on the next day I think I made about a hundred dollars which was pretty good so then the next day I had about 750 and then again another 118 a day or whatever it is the next day I'm at 870 and then another 150 day now I'm at you

know one thousand and twenty bucks right so just continuing to slowly add a little bit more a little bit more so by the end of the first week all of a sudden I can buy twice the position that I was able to buy on day one just focusing on one entry one exit trying to grow the account and then once the account was over I don't know five thousand dollars then for me it was a lot easier to trade so really a small account challenge it's really only challenging the first week but if you're gonna

try to take all that profit out and start again next week or next month with 500 it's going to be pretty difficult so again if you're a beginner Trader try to get dialed in with being consistent with one entry one exit if you're not consistent yet with one entry one exit I wouldn't over complicate it by scaling scaling is more advanced it requires different types of orders for selling half selling quarter sizing in using average cost basis so it's a little bit more complicated so focus on first timing with one entry one exit getting consistency

getting confidence and then add the scaling on top so assuming you're in that position now where you're ready to start you know well maybe you're a beginner and you just want to learn about scaling and that's fine too but let's say you're at a place where you actually want to start trading and using scaling so one of the things I have to look at are market conditions in a hot Market I will scale much more aggressively in a cold Market I'm going to trade more conservatively and I'll scale less I rarely won't scale at all

even in a cold Market I just scale a bit less than I would in a hot Market so in a cold Mark and I'm a bit more cautious about scaling because I don't want to bring my average cost too high what ends up happening um quite a bit more during a cold Market is you know we'll see a stock pop up it'll pull back a little bit and then it'll pop up but it'll do a double top and then it rejects right so adding here and taking profit here really is the right approach adding here

and adding here cost basis is here you're going to keep getting stopped out break even and so after that happens a number of times he starts thinking you know what markets feel a little cold I think instead of adding right there I'm just going to go ahead and sell it and that's the right move so you do have to adapt your scaling strategy to market conditions now I still try to scale out a little bit to capitalize but I'm a bit more cautious I suppose on scaling in because I don't want to bring that cost

basis too high because then that's what I'm going to start finding myself getting stopped at break even okay so when is scaling appropriate well if scaling is about maximizing profits and There She Goes she's going back out again if scaling is about maximizing profits we know that that's not going to come without any risk instead of taking that small profit off the table taking that small base hit we're in a winning position and I add more shares this is scaling in and it's also called averaging up because my cost basis is moving higher if I

keep adding higher my cost basis moves higher and I understand some beginner Traders are like this makes no sense at all why would you add higher so I'll give you the simple uh simplest explanation I want to add to Winners not to Losers that means averaging in averaging higher averaging down a stock is dropping and you can continue adding adding adding that's averaging down that's averaging to averaging into a losing position you know we've seen this a lot um you know with short sellers where a stock pops up and they add short here it pops

up a little bit more they add short here they're bringing their average up so they're averaging up but they're short so they're it's averaging down because they're in a losing position it goes up more they add more it goes up more they add more it goes up a little more starts to slow down they add more and more and now their cost bases which started here has moved all the way up to maybe right about here now they've got a big position it comes down to here and they're hoping you know something like this but

when it suddenly goes like this like that now they're taking Max loss up here with full position and you could do I mean the inverse would be something kind of like this um where a stock is dropping and you're adding adding adding adding adding as it's going down and then finally it flushes and you capitulate and bail out with full size so averaging period whether you're averaging long or short I think is uh when you're averaging into a losing position I think is a dangerous strategy what I would instead prefer to do is to add

to a winner so we have a stock that goes up you know I take my starter down here I add more here I add more here it goes higher it pulls back a little bit it goes higher I add more here so yes my initial cost basis was down here I could have taken the whole thing off the table here but I added I could have taken the whole thing off the table here but I added so now my average cost moves up to here but let's just say in this instance I started with I

don't know 5 000 shares that was my starter risking about 14 cents a share that would be my Max loss so risking about 750 bucks but I add 5 000 I add another five add another five now I've got 20 000 shares of this position up here it's trading at this level here my stop is break even and if it goes all the way up to here I end up potentially with a 10 to 15 maybe 20 000 winner and it was still only based on an initial risk of 750 dollars so now when you

see me having a trade where I'm up 10 or 15 000 sometimes a Trader will say how much did you risk to take that trade well my initial entry of five thousand shares had a 15 cent stop I was only risking 750 bucks now that's true on the one hand but of course on the other hand uh if I'm in a trade with twenty thousand shares and I'm up 30 cents you know I'm up 6 000 unrealized so if it does go back to break even it's kind of it's not like losing six thousand because

it wasn't money that you actually sold and then you took a loss but on the other hand it is it's definitely giving back unrealized profit I'm kind of okay with that in a hot Market because I have to use that unrealized profit as my cushion to give me the leverage to hold a big position or a bigger move and that's the reason I've been able to have such huge green days because I keep adding and adding and adding and adding so Alex says please show how to turn 500 into 750 000 in three days it

sounds like Alex owes someone 750 000 so I hate to say it buddy but um that's not possible that's not gonna happen I I can't teach you how to do that because I haven't been able to do that now I've certainly been able to turn you know 500 000 into 750 000 or something like that and I did turn my 500 account into over a million dollars but it took two years almost uh 2017 to May of 2019. it took about two years to do that so three days that's not gonna work 700 days maybe

I can maybe I can help you there all right so so the long and the short of it here is that scaling does sacrifice a base hit so you have to ask yourself and this is this has to be a very honest question with yourself is when are you comfortable risking giving up that unrealized profit you know so like for me if I'm in a cold market then I'm going to be in this kind of approach of like I caught kind of Hit and Run trading like base hit get in get out get in get

out do not overstay my welcome just get green get out get green get out and that's going to be a little bit more of like add starter add to it once so I start with three thousand I go to six thousand and then I'm up 20 cents I take the full 1200 off the table and I'm like that's good enough for me all right I'm not going to push it too long that's going to be an approach that I'm going to use during a colder Market in a colder Market what gets me through is remaining

consistent even if it's only on small green day it's just kind of grinding on small green days but when the market starts to heat up and that's what I'm going to start to recognize look we're seeing some really big Winners I'm not going to start with a 25 000 share position but if I'm willing to risk some of the unrealized profit I could scale into 25 000 shares and Heck if we end up getting a 50 Cent move into a halt and it gaps higher I could make 25 Grand on one trade it's time to

step up to the plate that requires a pretty deep connection with Market sentiment and also a good understanding and self-awareness of your own confidence and kind of where you're at because one of the things that's really important is that you're constantly trying to keep yourself at the top of your game whenever you're trading so even in a cold stretch you're still trying to stay at the top of your game so you're ready when things start to look better so preserving your emotional mindset keeping yourself feeling confident is very important so building consistency but yeah if

so if things are starting to uh to improve then you want to start to step it up so one of the things I talk about is trying to trade right at the edge of your comfort zone don't get too comfortable because then you're not pushing yourself hard enough but if you push yourself too hard you could fall and you could lose confidence so just trading kind of right at the edge of your comfort zone both in share size in quantity and time of day sort of all of that that's where you're going to experience the

most growth so um I want to show you I have a couple different episodes or little Clips I'm going to show you here as we go through this class I asked some of my All-Star students about their favorite strategy because you know I have of course some of these students who have been doing quite well and um why do you hear from from them about some of their techniques foreign Trader with the front side moves I'll look for diffs that kind of go into where shorts have been squeezed and look for the biggest moves of

the day my strategy I would say is momentum based strategy stocks going straight up essentially as Ross trains are like small cap stocks I'm a small Capital mental Trader [Music] hi short sell small caps equities and I tend to look for momentum stocks that are making big intraday moves and I short sell them and scalp them for a mean reversion trade on the short-term tripod [Music] my favorite strategy is going to be trading the theme in small caps [Music] so I could turn down the audio a little bit on the next one but um sorry

so that gives you just a little bit of a sense of some of the different traders that we have in the community generally though I'm a momentum Trader and so most of the students that I have at Warrior trading are also momentum Traders so that means we're focusing on trading stocks that are moving quickly and that is a strategy of buy High sell higher looking for those continuation squeezes and in order to trade momentum effectively you really have to scale however requirements to start scaling we do need bigger moves I mean if you're seeing a

stock that's only going up you know 10 15 cents you don't have enough room to scale in right I mean it just you just don't it's a difficult Market to scale now if we're seeing stocks squeezing up 50 cents a dollar a share or more that's where we're getting an opportunity to start scaling so let me show you um just a a real life example here this was uh the well this is um a cdlx today you know so the range is from 450 up to six so you've got more than enough range there to

scale if you wanted to bfrg earlier this morning this one presented some great opportunities and you can see here we had this uh break of 750 that gave us a squeeze into a hall up to eight and then a dip in a rip up to nine so here again you've got a dollar fifty a share so when you're seeing bigger moves like that that's where you're definitely going to have the opportunity to start scaling in and out a bit more um you know on the other hand I don't know if there's a good example well

maybe even Seco today this one was a little bit cheaper so it didn't really you know it didn't really give us quite an enough range and so you know one of the things that I would point to here my strategy is based well it's based on metrics it's based on historical data and the way I was able to accumulate all of that data was through a long period of trial and error and you guys have the benefit that when you learn from me or you learn from anyone who's proven profitable you have the benefit of

sort of piggybacking off of all of the experience that they've accumulated so I'll just show you this here this is um let's see 23 000 trades 23 000 trades over 12 million dollars of gross profit so there's a lot of data in all of this right here this is going to tell you the day of the week I trade the best it's going to tell you the price of the stocks I trade the best right so I know with a lot of certainty when I should be the most aggressive this is based on historical data

so if you're a Trader that's brand new you know and perhaps you're trying to trade on your own you may simply find that um that you don't have the track record to really feel a lot of conviction in anyone's strategy which is one of the benefits of being able to be part of a community of Traders and sort of piggyback off other people's experience so requirements to scale probably first and foremost um is that we do need bigger moves in the market if you're seeing really small moves it's just it's going to be really it's

going to be difficult I wouldn't say that hotkeys are necessarily a requirement for scaling you could scale in and out just by point and click I wouldn't say direct routing is a requirement I would really just say volatility and maybe perhaps another one is liquidity you know if you're in a market where you're scaling up to 20 000 shares if you have to panic out and sell the whole thing you do want to make sure you could do that without getting a ton of slippage so some of these stocks end up you know they make

big moves and you could scale in but they don't have a lot of liquidity so accumulating to a really big position it could be difficult to unwind that position you would have to just as you scaled in with 5000 share blocks and 10 orders you'd have to scale out like that so that makes it so you know when you start accumulating a bigger position it's kind of like a big big boat in the harbor you kind of have to be a little bit more careful how you move you can't move in and out quite as

quickly and if you do you're going to get slippage on your orders so that is something to be aware of when it comes to scaling but naturally there are a lot of benefits to scaling if you ever want to trade larger positions scaling allows you to move into and out of the market with less slippage than one big block order so like a 30 000 share order that's sent as a market order that order needs to find a match the second you press the buy or sell button and if there are not buyers and sellers

ready to absorb your order you're going to get slippage now if you scaled into that same 30 000 position with six orders of five thousand shares it would allow you to move into the market a little bit more slowly you would be able to find matches it's easier to see a 5000 share match you wouldn't have the same level of slippage and if there were a hidden seller maybe there's a big big hidden seller an iceberg order you'd be able to spot it faster with small size before you buy a big block of thirty thousand

shares from them now you might not have a problem selling to a hidden buyer but on the other hand if there's a hidden buyer there why would you want to sell because maybe that hidden buyer's Gonna Keep moving their price up and that's an indicator that there's some real strength in it so scaling has the sort of added benefit of helping you dip your toe into the market a little bit so you can visualize with your order whether or not you're buying from a hidden seller so the way I look at Hidden sellers you know

we've got our level two here so we've got the bid and we've got the ask and let's just say this is six dollars and this is 605. you know it might be showing only 1 000 shares and this might be showing you know 2 000 shares but then all of a sudden you press the buy button so you press a buy order for 5K shares and you see on the time and sales window right here so you see your five thousand share block go through but it goes through right at 605. and that seller doesn't

change so that means there's a hidden seller right there so you press the 5000 share buy button again it goes through again still doesn't budge so now you know there's a big seller right there on the flip side if you hit the bid at six and that 2000 didn't change you would know there's a hidden buyer there so scaling in and out allows you to kind of get a feel for the market and you can sense whether or not there are hidden buyers or hidden Sellers and you can sense it with five thousand you know

three thousand share positions just as easily as you could with thirty thousand so you might as well try it with less size because once you know that there's a hidden buyer or seller that's gonna you're gonna use that information to your advantage so the share size for scaling um I suppose it's also a requirement that you have a certain number of shares if you're trying to scale with less than a thousand shares you know if you're with a broker that charges commission I don't think that that's going to be really efficient um but if you're

trading with more than 5 000 shares and certainly more than ten thousand I think you will see a benefit from scaling both in the fact that you'll have less slippage and the fact that it gives you the chance to kind of take the temperature of the market now uh I think Jack asked a question about in terms of averaging in if I have a specific technique that I use to calculate how many shares I'm going to add and and sort of what prices and I'm going to talk about that in a minute when we're looking

more in detail of uh scaling scaling in averaging in now what some Traders will do is trade around a core position so this is a little bit of a different technique for scaling the idea here is that let's say you buy 2 000 shares and you're holding it but then while you're holding that 2000 share position so you know we'll just go on the Whiteboard here again so let's say you know the stock squeezes up it pulls back and you buy 2 000 shares right here okay then it goes up and it pulls back again

so let's just say you haven't sold it at all and now you're like well shoot this is another setup right here so scaling around a core position could mean you buy and then as soon as it goes up here you sell so you buy another 2000 and then you sell two thousand so for a moment you had four thousand shares and then you drop it back down to two thousand and that's fine the only problem with doing this is that as soon as you press the buy button here your cost basis goes from here to

here all right and then when you sell 2 000 shares there that's fine you book some profit but you've screwed up your cost basis a little bit so that's something to be aware of you can't like hold one position and then sort of leave that to the side and then trade other positions unless you have two accounts which you could do in that instance but that's not going to be as as common for most Traders so you can trade around a core position so you have a core position and then when you see certain areas

you you do quick trades you add and then you take profit so you know you're you're kind of doing little trades there but like I said the downside is that it'll increase your cost basis when I'm in what I'd call Flow State Trading I'm hitting the buy and sell buttons really based on what I'm seeing on the level two and the time in sales it's based on this volatility and this is high speed breakout trading scalp trading it typically involves a lot of scaling in and scaling out so we'll reveal the live examples of this

as we get into the Ocea uh live trading archive because that's going to show you that scaling kind of in real time and then you guys will also have a chance to download that if you want to download it and re-watch that full live trading archive because that full live trading archive is about an hour long and I'm not going to show the whole thing I'll just show little parts of it here in this episode very closely psychological price levels when trading a fast-moving stock including half dollars and whole dollars and that actually reminds me

let me show you um let me show you an example uh I'm going to switch actually to this screen I'm going to show you an example really quickly of what you could have taken as a scalp trade on um this was a let's see a trade just yesterday so let's see all right so here I'm going to pull up this live trading archive for you so this is a stock and just to help you get oriented uh we're looking at the level two on this and you can see that there's a seller at 10. for

some of you guys this is like a little bit this is gonna be a very quick example but right here you've got a seller at ten dollars it's showing Thirty one thousand shares on the ask three one zero and then you add um you add the two zeros that's the way the display level two so there's 31 000 shares on the ask here and this could have been a trade where if you already had a core position you could have said you know if this seller breaks it's probably gonna pop and let's let's just look

at what happens when the seller breaks so it falls you know it Taps it and then it pulls back drops down to 983 by 990 then it comes back up to 98 back up there you go and look someone just bought 5 000 shares so see how that 5 000 share order went through so someone bought 5 000 shares there and maybe what I'll do just to make this a little bit easier for you um let's see I'll just make this a smidge bit bigger um just so you can see it well all right so

screen capture all right how's that look is that easier for you guys to see all right so let's watch this here all right so we're going to rewind 10 seconds okay so what we're gonna see is 31 000 shares on the ask 5 000 share order goes through it goes from 31 to 26. the math checks out all right so it doesn't look like there's a hidden seller that someone is selling but it doesn't look like a hidden hidden seller and then another 5 000 share goes through and it goes to 21. okay now there's

another cell another buy order another 4 000 shares and it goes to 15. here we go boom so now some people are jumping in to anticipate the break and Watch What Happens holy moly 70. [Music] that is a breakout there's 5 000 shares for sale at 10.70. so 1065 on the ask so that could have been one of those times where you jumped in at 10 and you sell at 10.50 for 50 cents a share or 1060 60 cents a share whatever it is maybe 10 40 40 cents a share and then you do that

quick trade where you add to the position and then you get back out now one of the things that I like about using the level two is that it helps me see those little areas so that little spot there that quick breakout or scalp trade at 10 that's a whole dollar level that's what we would call trading based around a psychological level ten dollars and we use the combination as a scalp Trader as a as an aggressive day trader of looking at the level two reading the tape and predicting what was going to happen now

any of these predictions they come with um you know obviously uh you have to have a certain level of experience to accurately predict what's going to happen in these moments gaining that experience is a process of um you know continuing to trade every single day and be here you know getting in that screen time so those psychological levels can be the type of places that I like to take a quick trade to add and I would call that flow State Trading now I want to give you um another second here uh and let's let me

get my mouse here uh to hear about a couple of the favorite setups of uh some of our students so listen to this real quick my go-to setup would be essentially stock squeezing straight up I like the wit reclaim that's my go-to setup it provides a lot of opportunity and a lot of high risk High reward it's essentially how I like to trade [Music] thank you my two favorite strategies are a washout long after a catalyst driving parabolic move and then sub the white trash [Music] my favorite picture day setup would be a sock that

is spiking up on momentum making a strong extension on a short time frame and I'm looking short that extension back down to the trend line usually the 13 EMA on a two minute time frame I'll take partial profits there and if it continues to fade taking profits at and below viewing foreign [Music] setup as a Trader is an ABCD pattern for your all-time highs or at Hyundai where I can kind of take a dip in between the seat and D pattern look for an add towards High day getting the squeeze some shorts one more time

adding to the Fine power yep there you go all right come on let's see my go-to setups I could trade stocks is between five and twenty dollars that are shooting up on momentum and are also fogging up [Music] I typically like to trade uh breakouts dips within the context of strength and pulse all right so um for those tuned in you know be happy to hear what your favorite setups are and for those that want to leave comments down below um so now let's talk for a second about um the actual process of scaling into

a trade all right so this is where kind of the rubber meets the road a little bit uh and I think that this is probably what a lot of you are interested in so how to scale in uh into a trade this is what I would call the starter position how many of you have heard me say just took a starter right taking a starter position you've seen it in the live trading archives you know this is the way I approach trading so I often take a starter position this is my first entry this is

the place where I'm anticipating a breakout now I'm getting in a little early I'm getting in without confirmation takes a little bit of calmness to do that it's a little riskier but the nice thing about scaling in is that I can comfortably test the water with a smaller position if it works I can add if it doesn't I cut the loss with small size and the loss is smaller so the reason that I do this is because I found that if I wait for confirmation I pay a high price for it in other words by

the time we get confirmation the stock is going to be up quite a bit more so if you know we've got this pattern here and let's just say you know we get that bottoming tail and then the entry is right here that is maybe the official place to take an entry that's what we call first candle to make a new high and you can see it right here that's this spot right here that's the right place to take an entry but what if you could have taken a starter down here and what if right down

here was like six dollars so now you've got psychological support and maybe you could have pressed the buy button at like 602 and the first cam will make a new highs not till 6.25. so now you're in this thing you know 23 cents lower and if you're getting in at 602 and your stop is right below psychological support right now you've only got two cents stop so you're getting in without confirmation but with a starter position of let's say one quarter or one-fifth of whatever is your full size even if you do lose 10 cents

on it it's not going to be that bad so this is what gives me the conviction and the confidence to press the buy button is the fact that I'm doing it with a smaller order if I was like only trading with blocks of 10 000 shares I would trade less because I would be nervous I'd be like uh I don't know if I'm gonna punch it for 10 000 right here I don't have confirmation it's too risky and the result is that I would miss a lot of good entries and so what I decided to

do is reduce my share size and start with starter positions so I take that starter position so in the case of this drawing here maybe the starter position is right down here you know right in this area is the starter so let's just say that's 602 and the stop is you know six dollars so maybe I don't get it exit at six but maybe I get an exit at you know five you know 592 at the worst so minus 10 cents initial trade and then we come up here to 625 and I add so now

I double my position and this is where you know the question from Jack is so sort of what ratio do you use you know in terms of position management you start with 3 000 shares and then you double to six thousand and then you go to nine thousand or do you start with 3 000 and then go straight to nine thousand you know or oh so so it's like what or do you start with six thousand and then add three thousand so these would be three different ways that you could scale into a trade I

don't have a sort of methodology that I use where I'm using at the same time every time I'm sorry to say because I know that that might be more helpful but what I do is I really I base it just on what I'm seeing on the price action number one uh and in terms of the total quantity I'm basing that on how well I'm doing on the day and how well I'm doing on the weekend on the month if I'm feeling confident I might take a starter down here with and I usually use three thousand

share blocks three 3K is my sort of that's my block that I usually use so I might punch this you know times two and have 6 000 shares right down here and then this I might add three thousand but I could also go ahead and add another six thousand so I could do either I could either double it or just increase to three thousand and then if it comes up here to the high of 650 now up there I probably wouldn't add another six thousand because the problem is that's 50 cents away from my initial

entry probably wouldn't do that but I would be willing to add up there so that may be where I'm adding you know just kind of the quarter position so this might look like you know starting with six thousand doubling to twelve thousand and then adding a little bit more and then selling half and then selling a quarter or another half of what I'm still holding and then another half and another half so that might be kind of how my positions look on a more typical basis now yes there are times where I'll really start with

a tiny position but if I'm starting with a tiny position I'm usually not going to be able to get all the way to my full size kind of how much I start with Will Will dictate how high I'm able to size so you know if this first order here is 3 000 shares I might be able to get up to you know 15 to 20. if this first order is 10 000 shares I might be able to get up to 40 000. right so it really depends on and and whether I'm going to do three

thousand or ten thousand is going to be based on factors such as what are the spreads of the stock what's the price the stock how much am I up on the day do I already have a profit cushion you know is the market really hot so there's a lot of things that I factor in there which I suppose is probably the benefit of being able to listen to me trading in real time because you get to hear that market commentary that play by play and kind of my real-time assessment of you know how I'm looking

at things so girls gotta go out again this is just that we this is uh this is like my typical day a lot going inside and outside so um now now for what it's worth um there's a lot of different patterns that we can use so like this pattern that I was showing you right here this is a standard uh pullback pattern that I trade all the time but that's not by any means the only pattern there are so many different variations of these patterns but these are all I would say these are patterns of

a momentum day trader someone who's trading momentum we buy High we sell higher we're looking for stocks that are moving quickly right you know that's that's what we're looking for so if a stock is moving quickly the first time it starts to pull back that presents an opportunity to add on the dip for the next leg higher one of the things I would also encourage if you're out there and you've been you know trading for a while I would encourage you to think a little bit just for a moment about um you know what are

Traders maybe like me or others who are profitable what exactly are we doing if you think about that because if you were doing everything that I was doing down to the most money my new detail you would presumably be trading very similarly to me profits will be similar as well so if there's a disconnect then you're going to see a very different result so the question is how what are you doing differently what are you doing that's different from what I'm doing or someone else and it's not to say that I'm not trying to give

you some um you know I I want to be very careful and very clear to disclaim that trading is risky and my results are not typical but I think if just on a very basic level if you look to someone who's successful and you were doing everything they were doing you should also find success and I think what a lot of beginner trade or struggle with is without perhaps being totally aware of it they start doing little things differently but all those little things are doing differently they add up and that cumulatively can create a

very big disconnect between the results you see in the result someone else has so finding your Edge is important uh I think one of the edges that I have as a Trader is an ability just like we saw with this example um of this trade from yesterday an ability to see this type of price action and read the tape and having the hand-eye coordination to respond to it quickly that may be an aptitude that I naturally you know came to this table with and I'm grateful for that it doesn't mean you couldn't study and and

get better at hand-eye coordination get better at reading the tape I think if you want to try to trade as aggressively as I do you would probably want to improve that skill but say that uh you know I think that that's an edge that I have especially in a fast moving Market being able to read the price action read the tape but these patterns are are also a big portion of it the patterns for me are the basis and then the level two that's the precise timing of when to actually press the buy button so

another example here could be talking about when to add all right so once I have my starter position I'm closely watching the tape in the level two time and sales and and what I want to see as I like to see these sort of squeezes up and then a momentary pause that momentary pause can be the formation of a micro pullback as you see right here pops up it pulls back just for a second that's an opportunity to add it tries to let shorts off the hook and then they're not off the hook and off

of off it goes you know pulling away sometimes they form almost it's almost hard to read it's just in the bottoming candle the bottoming tail but this is something that we would be able to visualize on the level too you know you notice that in this example of course uh you know the chart the chart is right there you can see the chart but what we're really focusing on is the level two that's what gets so interesting there so the chart is the basis but then the level two really helps with those precise entries and

exits so when to keep adding all right so this is this is probably listen the next slide are two pretty valuable ones so these are about when to keep adding and when to start selling it if I have just taken a position now I'm going to be very closely watching the level two for signs of consent continued strength what does continued strength look like green on the tape we want to see more buy orders coming through this reflects strong buying volume it reflects the imbalance between supply and demand there's a lot of demand there's a

lot of green on the tape what does green on the tape look like let's go back to this video right here at the green on the tape is um and we'll just rewind this here just for a second so that's green on the tape right there is green on the tape uh and you know for what it's worth I have this ticker tape machine that's from like the 18 I think 1800 1880s or something 1890s maybe 1900. it's an old-fashioned ticker tape machine um it would print out every execution that went through the tape so

tape reading is not new this is something that Traders active Traders have been doing for a very long time reading the tape seeing those orders going through green on the tape that's what we like to see so uh number two I like to see the number of shares on the level two decreasing as orders are coming through in other words not a hidden seller so what we saw at 10 30 or ten dollars how it went from 31 to 25 to 21 to 14 to 10. you know it dropped down that's what we want to

see the price naturally should be moving up and hopefully fairly quickly the stock should be hitting new highs and it should be on the high day scanner being on the high day Moma scanner is good that means other Traders are going to notice it it continuing to hit new highs means it's continuing to put pressure on anyone who's short so if I see all of that green on the tape number of shares on level 2 is decreasing the price is moving up the stock is hitting new highs then I'm going to be watching any of

those momentary dips to continue adding I'm going to continue to average up to continue to scale into position at a certain point obviously I have to switch from adding to selling I can't just add indefinitely I mean at a certain point you have to switch so when do you switch when do you know when to start selling all right well uh when to stop adding this is going to be very Market dependent in a hot Market we'll see stocks continue to go higher and higher and higher I mean it's I'm not even kidding you know

you look at look at some of the stocks you know just as an example from uh from last year that we had we have you know HKD and I'll just um back this out for a second so last year we had HKD a Chinese IPO stock this thing goes from I don't know like 14 15 a share uh all the way up to 100 a share that's pretty crazy right one to two hundred to three hundred to four hundred to five hundred six seven eight nine up to fifteen hundred two thousand this hit a high

of 2 500 a share I'm not kidding that's crazy hudi this one made a pretty explosive move as well not quite as big uh you could see in November there was this move there that was November so you know in a hot Market you don't want to underestimate how much a stock could go up I mean we could definitely get more than 14 cents a share um but you know again having said that we also have cold markets where extensions can be a lot smaller so if I see a sign of weakness I can either

sell the full position I could begin scaling out quickly or I could also sell slowly and wait to see if strength resumes the decision will be based on my cost basis my total profit both realized and unrealized and Market sentiment if it's a hot Market I'm going to try to hold it as long as I can if we're in a colder Market I'm going to be a bit more conservative and take the profit off sooner so how to scale out of a trade well if I've taken a position I'm fully scaled in and then suddenly

I don't see any of my signs of strength that's a problem breakout or bailout would tell me to exit but you know it depends on whether I'm doing a scalp trade or I'm really scaling in for a bigger move but even worse than not seeing a sign of strength would be seeing one of the following clear exit indicators these are clear exit indicators when you're scalp trading when you're taking trades with a five cent stop and you're looking for 10 15 cents a profit if you've had a trade and you're up 50 cents a share

these don't necessarily apply so it depends on how uh you know how up how much you're up versus your cost basis but a big seller on the level two right where I got in that's not great now a big seller on the level too but I'm already up 50 cents I can give it a chance to see if it breaks the obvious appearance of a hidden seller well a hidden seller regardless of how much I'm up we just don't know how big that cell is we don't know how big they are so that can be

an indicator to start to consider unwinding a position a large burst of red on the tape indicating a surge of selling and a possible false breakout you know where the stock kind of continued and then topping tail and then that quick reversal what that can do is it can form a really large topping tail on the chart which creates an ugly chart pattern a chart pattern that a lot of Traders are going to say ah I don't think I can trust it and then they're not going to be likely to buy the first pullback so

that big burst of red that creates a false breakout candle that could be a problem initially a pop but then dramatic reversal again same thing forming topping tail false breakout that's a problem I don't like entering on a red candle unless that's my starter and I'm buying a dip so if I'm in with pretty good size and the candle turns red while I'm in the trade it's obviously an indicator of weakness I should probably get out of the trade and seeing some signs of weakness or resistance around psychological levels it shouldn't be too surprising necessarily

like what we saw around 10 on that example but it reiterates why an entry at 9.99 could be a little riskier if you haven't first seen how the stock is testing you know the half dollar or the whole dollar so it's definitely something to be aware of now I want to talk for a moment about my criteria for being willing to trade a stock what I would say are probably the four or five criteria that I use to decide whether or not something has the potential to make a 20 30 40 Cent move or it's

just kind of choppy uh before I do that let's uh check out the golden rules of some of our students at Warrior my golden rules are to keep my red base to a minimum and to keep studying the markets I really put a really big emphasis on studying the markets every day to stay up to date which in turn helps me keep my bread days down to a minute my Golden Rule creating more of a mindset than I have to keep moving on to loss so that I can't dwell on it looking past the only

way that I can grow as a Creator is to look at it and learn from it before [Music] one of my golden rules is good habits will make you much more Rich than any single day p l [Music] some of my golden rules are first and foremost that Excellence is not an action but a habit so therefore it's not an act but a something that I do every single day I also believe that trading is 80 patients and 20 execution so 80 of the time I'm sitting on my hands waiting for my setup and then

20 of the time I'm executing and managing that trade my golden rules would be not to have many rules I found it oftentimes my rules would really put in a box in trading and I would be afraid to bring these reports we would also make me afraid to take some trades all right so let me show you on the Whiteboard here um what I would say are probably my uh my top criteria for I think considering a stock to be worthy of trading so what we're looking for and just to kind of give you some

context I look for stocks that can move 20 30 40 50 or more one of the things that I have found in my career as a Trader and I learned a lot of this the hard way so my first few years of trading a lot of trial and error I was trading a little of this a little of that you know I just I wasn't finding consistency but I was also trying to figure this out myself I was kind of Reinventing the wheel I didn't have a mentor I didn't have someone I was learning from

someone that had a proven strategy that I was trying to learn I was just testing the market I was trying to trade what was moving and that included trading options penny stocks large caps mid cap small caps a little bit of everything what I ended up discovering was that I had the most consistency on stocks that were lower priced and on stocks that had really high relative volume and so I kind of had to ask myself a little bit what is it that creates high relative volume what it what is relative volume so for those

that don't know relative volume is a measurement of today's volume compared to the average volume of stock experiences and it's usually over a period of either 14 or maybe 30 days either is fine it doesn't really matter and what I found is that I do much better on stocks I have at least two times higher volume today than average so you might ask well okay that's interesting how and why would a stock have two times higher volume today than on a typical day typically it's the result of breaking news so what that breaking news does

is it creates demand it creates interest and as the stock starts moving up it kind of becomes you know the Unicorn that everyone's excited about today everyone's focusing on it and that there brings in even more volume creates even more interest and then those are the stocks that can make these really big moves but it's not always true there are times where stocks have news and they don't make big moves there are times when stocks have news and they drop so how do you kind of figure out you know which from which and ultimately stock

selection is an opportunity for you to further reduce your risk as a Trader because if you're really trading the right stocks each day you're going to find them to be a lot easier than trading the wrong stocks so let's talk a little bit about some of the characteristics of these stocks that make you know plus you know 20 to 30 you know percent moves or or even higher it could even go up as much as 200 or 300 percent so number one relative volume I'm just going to say RV needs to be at least two

or higher so that means twice the relative volume of a typical day number two I would say the stock has to be up at least 10 percent for me to even consider it typically the process of going from up zero percent to up five six seven eight nine percent ten percent is what starts to create that early increase in volume that's going to give you a two times relative volume by the time you start taking the trade number three prefer news now a news PR now this isn't a requirement sometimes you'll have a stock that

has that's up ten percent with two times relative volume because the sector is strong and that can still be worth trading but I do prefer news because this usually gives Traders and the big Traders the whales out there more confidence and we're little baby fishies right so we're we're just a little baby fish here um that was a that's kind of a bad fish drawing anyways it's a little fishy smiling but we're just in the kind of wake of these big whales this is going to be one of these whales here that's his little tail

right there so oh and he's like hungry he's looking for something so we're just little baby fish and we just feed off kind of what the wake of the big whales so I'd prefer to see breaking news um number four I have found that we see the biggest percentage moves on stocks that are between two dollars a share and kind of like ten dollars a share but up to up to 20 is okay problem with trading over 20 is that unfortunately you start to get big spreads on the level two which you know we could

look at this example here the spreads did start to get a little bit bigger um on this one um where was it right down here so you start to get these bigger spreads on the level to you know 10 45 by 10 60. that creates more risk it's a little harder to manage risk so you know that that can be a little bit of a problem uh and then the fifth thing I would say um is that so these are all these all help create demand and or are indicative of demand so so let's just

say these are four criteria of demand all right and now we need an imbalance between supply and demand so Supply right here that is float which is the number of shares available to trade I find that the stocks that make the biggest moves especially the ones like if we're looking for a 10 to 20 move a stock with a flow probably of you know under 50 million shares 50 million shares or less is fine if you're thinking something maybe has the potential to go you know 200 to 300 percent you're probably going to be looking

at a float of under 10 million uh maybe even a float of under 5 million shares the lower the float the higher this can be I have just found that to be consistent for a number of reasons I'm not going to get into all of them right now but you know there's days where we sit down we look at the scanners and um you know my top Gap scan uh and let's just see you know today for instance um let's back this out so today if we look at the scanners and these are the tools

that are available for members at Warrior trading so the leading gapper was 63 and the float was 7.7 million bfrg was the second leading gapper at 45 with a float of 1.6 million and you can see that's the stock that I traded and made the most money on why did I trade that one instead of Seco because of the price I know I don't do as well under under two dollars that's based on a lot of data right so I've got a lot of data here that says under two it's not really my strong spot

between two and ten great between 10 and 20 okay above that you know profitable but anyways this so this is a lot of data that helps support these decisions they're not just uh I mean you know they're not just willy-nilly so anyway so bfrg 1.6 million share float and the stock goes up you know went up at like 55 60 today and then you have something like cdlx 23 million share float we got to move on it uh wasn't quite as big uh but you know we got we did get a move on these ones

down here with higher floats 153 500 million no you're not going to get much on that maybe you'll get five or ten percent but most Traders are going to be so focused on these ones up here that these just take a back burner now if one of these was our leading gapper Gainer then you would have probably allowed people watching it so there is something to be said just for uh whatever is the leader tends to uh often tends to be one of the best um it's kind of funny the way that is it's just

sort of um sorry it's just sort of the the way Traders are looking at uh you know these big momentum stocks so now let's talk a bit about the correct exit the correct exit is almost always going to feel too soon if you hold too long you'll look back and say I should have sold at this price but in the moment if you had sold there you would have considered the exit to be too soon so learning to recognize that the right exit will instinctively feel a little too soon is really important this is true

with winners and it's true with losers when scalp trading it's important to trade quickly I want to enter before it's obvious right because otherwise I'm going to pay that higher price for confirmation so taking a starter and then adding before it's super obvious and exiting before it's super obvious if you wait until it's obvious both an entry and exit you pay a price of slippage because that's when everyone's going to be moving in and out that's when you're going to see these big spikes and drops so using the subtle tape reading skills to enter an

exit just before breakouts means you're learning to anticipate what a stock is going to do and this is this is really the spot where you can find a lot of success as a Trader but it takes time to get there there's no question about it now I'll tell you um when it comes to leaving money on the table as a beginner you will leave money on the table every single day unfortunately most beginner Traders not only leave money on the table they give back profit leaving money on the table is an expression um basically for

meaning you you could have made more if you traded longer so you left some profit there all you needed to do was pick it up but you'll left a little too early you left some profit on the table but leaving money on the table is not as bad as giving back profit a lot of beginner Traders give back profit and they end up red which is you know not great so as a beginner Trader the first order of business is focusing on building consistency with one entry one exit that's the trading plan that I teach

our students in uh chapter 14 of our classes so Warrior Pro class down to chapter 14. this was ranked um most comprehensive course by Investopedia by the way so if you haven't checked that out it's definitely worth checking out I'll just put this over here so you can see it so this is my um you can come over here to the menu and check out our class as we're you know constantly adding and updating to them but a chapter 14 Ross's trading plan so that trading plan is literally my blueprint for how I trade with

small accounts that is how I do it now you could use that same blueprint for trading with big account but it is the blueprint for trading whenever I've done small account challenges so not only is it like you know in theory it makes a lot of sense I've actually proven it I've done it I've used it and it's the strategy that I trade every single day for the most part the only difference between that trading plan and the way I trade today is that I'm at a level where I trade more than once a day

so as a beginner Trader you are going to leave money on the table right your goal right now is just try to be consistent one entry one exit build consistency build confidence with that you're going to want to start to scale up that's the right time to do it when you have some you know momentum uh you know but at the same time I I think that um you have to recognize that fomo can kick in when you see a stock make a really big move and you feel like you left money on the table

you can start to get fomo you can start to act on those emotions you can start to overcompensate for missing a trade and that can lead you into a spiral so one of the things that's just so important is to remember you are not comparing yourself against anyone except for yourself just try to do a little bit better each day doesn't matter how much someone else made just try to do a little bit better each way you don't yet have the benefit of educated intuition I have educated tuition I've been trading for so long I

I know very well when it's time to stop and walk away but you need to rely on a very strict set of rules that will dictate when to sell and when to walk away each day and yes you're going to leave money on the table and yes you're going to have days where you feel like you walked away too soon sold too soon I'm giving you these guard rails and these rules because I want to support you on your journey to trying to be more consistent and these are rules that Reign you in to help

focus on consistency once you have consistency you'll have the confidence to start taking the training wheels off right that's natural but if you're overconfident and you go in too hot too big you're going to end up losing and you're not going to be happy so let's look um at this live trading archive here and I'm going to put the link um right here in the chat for you guys to check out so for those of you guys that um and maybe um I'll put the link in the description I'll pin it to the comments so

you guys can check it out this is going to be a link um that you guys can download let me uh um hey I know I have a couple members of my team watching um the chat here can one of you guys post the link for me I just don't have it on my um right in front of me so we're gonna post the link here for um uh for this for these free resources that we've put together for you so uh you're gonna get access to my live trading case study of Ocea which we're

going to pull up right now and I'm also going to give you guys access to my technical analysis series so I want to show you this case study but I also don't want to overwhelm you and go into too much on it and I I want to give you the chance to watch it on your own time because this has already been a fairly fairly long class so why don't we um why don't I show you a couple trades from this and then you guys can download this live trading archive and you can re-watch it

as many times as you want all right okay so let's do that all right so let's see um so we're gonna go full screen here so on this day um and let me see if I can find I'm gonna look for my first good example so so this is this is the first example of scaling in right here okay so we're gonna back this up uh do all right so to give you to kind of get you oriented uh we're dealing with a stock here today that's up 44 as you can see it's on the

top Gainer scanner it's the leading gainer in the entire Market the float is 19 million shares so it's a little higher you know perhaps but it's not bad it's it's still 19 million is fine and what's most important probably is that it's the leading gainer in the entire market so a lot of Traders are watching it it's already squeezed from five up to seven had a red candle drop down now it's coming back up all right so you can see I've already made 800 on at the beginning of this video and um I'm gonna trade

and make my way to up over 10 000 as I trade this it's not through one home run trade it's in fact through many trades uh that come together so right there I scaled in you see that this uh this is a little bit of a the setup here um this is a half dollar whole dollar breakout setup I got into 85 to anticipate the squeeze through seven the high a day is seven it's just under seven so I'm expecting the squeeze right here so I bought with two orders of 2500 shares I pressed that

pretty much at the same time and now I'm in this looking for the squeeze through seven dollars so now this right here is an opportunity I saw some green and I added at 91. so I added at 91 right here now my cost basis has moved up I'm with 6 000 shares and I'm looking for the Breakthrough seven this is a moment where it's pausing a little bit it's kind of right at break even but then there's 99 on the ask there's seven on the ask and there I take some profit off the table so

I sell half of my order which leaves me with from six thousand down to three thousand and then I press the same button to sell half again so I use orders on my keyboard that automatically calculate how many shares I have so if I press sell half and I'm holding ten thousand I sell five thousand share if I'm holding 5000 I press sell half it sells 2500 shares I'm holding 2500 I press sell half I sell 12.50 right so on and so forth so it automatically calculates the shares for me all I have to do

is press the button and that's really important because it allows me to be quick on the bid you'll notice a 17 000 share buyer right here we've got a buyer on the bid and it gets sold into but it doesn't break and so I add back this is one of those times where I'm taking a starter at 705. this is not the place where I would take full size but it's a nice starter position at 705 support is right around seven I sell it at seven for a five cent loss that's okay it's a starter

position so we got the Breakthrough seven and what I did down here is I bought 2 000 shares on a dip at 84. so now I'm in on a dip and looking for the pop back up over seven and these are the types of Trades that I'll take all the time this is tape reading buying a quick dip taking some profit as it comes back up dip and then profit dip and then profit so let's look at another one here so this looks like um we might have a good one okay so we're going to

come back up here it looks like and we're going to look for another trade through the high of day so right now I'm holding 250 shares at 684 and I'm going to add to the position I'm looking for the break through the high green on the tape is what I'm going to look for and I'm going to look to add for the Breakthrough 710 added right there at 706 and 710 now we have 715 I knew this was anticipating a breakout I knew if we broke the highs we would see squeeze so now I add

no I take a little profit here at 720 which is about 12 cents a profit and now we get 730 and I switched and added another thousand shares at 731 and now I'm looking for a squeeze up to 740. so I can quickly change my bias from wanting to sell to one ad when it squeezes right there I sold half my position at 7 35. now I'm holding 1200 shares I'm up 2 400. you could certainly see how this is a bit more complicated than one entry one exit and there's no reason that you couldn't

take one entry at 684 and rather than add the way I add just hold it and then take profit there are different ways to trade the same stock so I added back there at 37 and I took some profit at 40. with 3 000 shares you know three cents is 90 bucks 10 cents is 300 all right so it adds up for those that are curious uh or you know realize that tape reading is an important component uh on chapter six this is where I teach tape reading chapter six level two tape reading and we

talk about market makers we talk about tons of tape reading examples of course then we've got Gap and go momentum trading Short Selling Etc et cetera all right so let me switch back here this so so right now the price is at 738 now it's stalling out a little bit you can see how we've got a hive about 750 the price is stalling out a little bit so we've pulled back and now looks like we're coming back up it goes up to 750 pulls back again this is one of those times where we're dealing with

a little bit of resistance at the half dollar so now let's watch this it looks like it's about to come back up I'm sitting at three thousand three hundred dollars a profit there's 45 745 there's 757 760. nice now it's starting to break away is it gonna hold this level that's one of the things I'm always asking green on the tape I add 63 average now looking for 75. 77 nice I take a little profit for 10 cents I sell half I add back a thousand at 77 only a thousand shares no big deal let's

see if it goes up to 85 holding at a 67 cost basis now we've got 80 on the ask so I'm up almost 4 000. now let's jump forward a little bit sitting at 3500 gave back a little profit on one of those trades you see how we have a top and then it pulled back looks like sort of a head and shoulders pattern forming a little chop in this area it's up 54 percent sitting at 3 600. up now at 4 400. I'll find another good trade though here we go all right now it's

getting exciting all right so sitting at 4 400 here and let me back this up so I'm starting to scale in you see I've got five thousand but let's back this up for a second all right so I'm looking at this level right here 761 approximately I'm looking for it to break through that level I see green on the tape good there I add 69 it's pulling away what I will sometimes do on these types of stocks is every 10 cents or so I'll keep adding as it's moving higher so I add another thousand shares

at 75. now looking for 85. this is an area where you do have some risk because it could sort of jackknife and drop back down I have a profit cushion which is great there's 80 add another thousand shares add another thousand shares 82 so see here I start with 2 000 then go four five six seven those are five orders right there scaling up to seven thousand shares ideally on something like this I'm looking for a squeeze through eight dollars add in another thousand at 84. so now my average is 75 see how the cost

basis has moved up a bit it is stalling out a little bit right here so you're seeing a mix of green and red and some sellers in that spot there I added and then I took some profit off the table I added at 84 I took profit off at 89 and scaled back down so I added right there I was hoping it would squeeze right through eight it went up to 90 got an exit 89. okay now we're back up to eight I've added six thousand almost seven thousand shares at 8.99 7.99 there's 808 on

the ask we're straddling the half dollar whole dollar this sometimes happens up 6700 now we're up to 818 and like I said there are some traders who would take the approach of just adding uh their position and just holding the whole thing for a big move the problem is you never know how high these are gonna go that's the problem now we're up to eight dollars and eighty cents let me back that up I got a nice trade in there it looks like there we go okay so I'm sitting at 6600 right now and then

I got a nice trade right in this area let's back that up okay so it looks like I scaled in so I'm at 6 600. and we're dealing with this pattern which is a flat top breakout pattern right there so I'm going to start adding right there six thousand this is a time where I start with 6 000 shares now at seven thousand just about looking for the Breakthrough 750 now at 8 000 I take some profit sold half so I'm up 7 200. now we've got 758 selling a little bit more at 751 holding

2400 shares at an average of 44 just added four thousand and looking for the squeeze up to 675 685. they're 667 taking a little profit selling half puts me up 8 000 still holding 1600 shares cost basis is now 8.50 put the order at 72 right in here in my order entry window there's 864. holding 5 000 shares I added back add another thousand looking for 75 didn't get it sold the whole thing that was one order super smart order added back 4 000 shares at 873 sold half and sold half and 88. added Back

9 000 shares at 87 looking for the squeeze through nine dollars we're up 88 percent this is a bigger position I'm up 9000 and the nice thing with this position where I'm at on the day is that I can afford a little bit more risk because I have a profit cushion so reducing the risk a little bit and taking a small loss now let's watch for another trade added back at 90. holding 500 shares at 890 added there at 901 looking for the squeeze over 9 10. flat at nine it's not really pulling away we've

got in this live trading archive about three minutes to the opening bell holding now 5 000 shares back to flat actively trading this range this is an area where I'm kind of doing some break even trades oh check this out okay so watch this I just did a 4 000 share dip trade bought two thousand shares with two orders in at 8.85. this was another dip on the one minute chart pull back bought the dip so it needed to rest for a moment and now it's coming back up to the new high so let's watch

The Squeeze and what happens at nine dollars and ten cents 903 905. 9 13 9 24 and I take some profit off the table and I'm up over ten thousand ten thousand dollars in one day wow that's pretty impressive now I've been doing this for a long time uh I opened my first account my first uh trading account in 2001 with Ameritrade uh I didn't find a lot of success during that period of time but I did uh get a taste of the market and then I came back into the market after uh the Great

Recession and I was looking for kind of some source of income and I've been trading full-time for more than 10 years Ocea you know this was a good example of a stock that was strong pre-market then at the open sold off ten thousand five hundred dollars here there's dip opportunities but this is broken it's a sending support trend line so the risk is higher today we had uh you know this was an example uh from a few months ago and again I'd encourage you to download it uh and re-watch it because there's a little bit

more here that I didn't cover and I also skipped over some sections um watching those types of um watching those types of episodes I I really think is super valuable because it really gives you a good sense a good kind of look into exactly what I'm doing as I'm moving in and out of these trades um and you know there's there's no question that Trading carries risk this isn't something that's risk-free my results are not typical trading is risky there's no guarantee that you'll find success whether you're trading your own you learn from me I

certainly think that if you're wanting to learn more about the market it makes a lot of sense to learn from someone who is proven profitable and you know you guys have heard me talk about this quite a bit but the fact is there's a lot of people out there there's a lot of imposters out there there's a lot of people out there who talk a big game but are not actually profitable they're they're like they're influencers they're just trying to make money on the advertising whether it's YouTube advertising or whatever other platform they're on and

that's their goal is making money on the ads they don't actually make money Trading so if you have any curiosity about whether or not I make money trading or how much I make you know you're of course welcome to come over to Warrior trading you'll see in the footer on our website my um my performance you'll also see see over on my biography um you'll see down here a link to my um audited broker statement right here so these are the actual this is the actual audit um and I have it right here as well

so you guys can see my firm belief and this was at the end of last year so I have the um the newest audit that's going to be released soon I do them annually so it's the annual audit of my trading profits so I'm over 10 million dollars in in uh net profit and I started with less than 600 in my account and this is real money my firm belief is that the only reason other people aren't putting out something like this for themselves is because they can't so if you've been learning from someone and

you're wondering how much they make and they're not telling you they're not being transparent there's probably a reason for it so anyways think carefully about who you're learning from make sure you learn you're absorbing information from someone who actually puts their money where their mouth is knows what they're talking about has some experience I think that's really important so I want to thank you guys for tuning in to today's episode if you want to check out a couple other episodes uh if you are subscribed to my channel you can look at some of our most

popular episodes we have timing entries and exits which was a really popular one that I uploaded I taught that as a live class just like this one about a year ago so check that one out um there's um of course my beginner's guide to day trading strategy which has over 10 million views there's um how I turn 583 dollars into 335 000 in one year that one's got 2.3 million views uh so anyways come check out our Channel I think you guys will find um a lot of really great content and I want to thank

you as always for tuning in for being here hopefully you hit the thumbs up hopefully you're subscribed to the channel and I'll be trading first thing tomorrow morning as always so come on over to Warrior trading check out the classes check out some of the tools that we have available for our students we've got the scanners we've got charts we've got of course the mentoring we've got the live market commentary we've got the community it's a great place to trade it's a great place to be so hope to see you guys over at worry trading

and thanks again for tuning in to today's class