He Made Over $10 Million With This Trading Strategy

but if I want to hop on board I need that volatility to subside a little bit um there's not a lot of juice left on the bone potentially before you know you mentally have to start peeling but sometimes with an Nvidia you know it takes 18 months but she grinds [Music] 1,000% hey what's up everyone welcome back to another episode of trade and takes With Me Sam presented to you by investors undergr now tonight we've got another very special episode coming at you probably one of the most exciting and inspiring conversations that I've had the

privilege to be a part of in fact we were recording until 2 am my time and I still couldn't get to sleep tonight's guest arel or on Twitter real simple RL has made over $10 million trading stocks in a relatively short space of time and tonight we go through his strategy all the way from planning to execution and for those of you who like real trade example there's plenty of those tonight Ariel how you doing welcome to the show thank you brother for having me man it's uh I feel like it's been a long time

coming because you and I have been speaking quite a bit probably for the last six plus months yeah I mean you're you're at the level that I obviously I'm striving to get to you're predominantly a swing Trader um you're you know obviously you're very good at it and obviously we're both mutual friends with Jos chenak as well and he said my goal Sam is I want you to be predom trading large caps um so it's great that I can have that conversation with you I appreciate your time as well not just tonight but all those

conversations as well and yeah long time coming absolutely and I'm and I'm happy to be here and honestly Josh is is fantastic and I'll say this don't give up necessarily on midcaps or even small caps when the Market's hot I think the important part that maybe Josh may have not mentioned to you and really the small little Nuance is theme right once you're on a specific theme um and even a few maybe a month ago when you had sigga and govx and it was the monkey pox theme you can get really big outsized moves and

that is how I grew my portfolio in 2020 and 2021 was themes small cap midcaps that you would catch these you know big percent moves and you're just really not doing that in large caps um the thing that large caps provide you is the liquidity right um there comes a point where you know you're going to be trading with seven figures or more multiple and it becomes really difficult to move the portfolio meaningfully in with day trading you know even even small because you can only size in so much like you know even if you

were very comfortable on govx you know and you get to a certain point you have 30,000 shares and you know you catch a majority of that move and couple dollar move and for some people that might not move the needle where if you're in large caps you know and you catch a 10 15% move it had all the liquidity necessary for you to put you know a million two million five million 10 million into these trades and then let them work and then you know and really it's all scaling based on the size of your

portfolio you're not like they might sound like big numbers but you're not really ever doing that until you know you're like you're walking well before you run and you're crawling before you're walking so but I know why Josh says that it's because INF liquidity is infinity but the percent moves you get in small caps midcaps are are bigger um sometimes they're they're faster lived you know you get the 40% the 50% the 200% and then it's done um but sometimes with an Nvidia you know it takes 18 months but she grinds a thousand per. um

and that I think you know not everything turns into Nvidia you can study something like e. or Celsius or VRT or VST or ceg or any of the things that are currently themes they already had really beautiful setups 10 months ago 12 months ago 16 months ago and really strong powerful midcaps large caps they're liquid and they do the same thing as things have always worked they they go up then they consolidate or they'll pull back they'll build a new base they'll tighten up and then they'll rebre back out right and it's when things get

really tight that you're beginning to hunt your entries and liquidity is basically infinity and you know I was just you reading some of what the short bear said and he was talking about Nvidia being a huge opportunity at the beginning of this year and he was right and I was there for that entry I had a 495 entry and then I had a $500 breakout entry the very next day so I kind of anticipated the move because a smaller hourly time frame was already starting to get above all its key moving averages and then then

on the daily the next day you got that daily breakout and then there you go and I remember I actually missed smci and all of the guys in the Discord are all in smci but I was so big in Nvidia that you know I again this is looking back at it I was a but I was like oh it's a lagard it's it's going behind Nvidia the leader always goes first so I was like I don't need to own smci I've got Nvidia and then it was like smci broke out and then about four days

later percentage wise it's like already creaming what Nvidia is doing and I'm sitting here Nvidia three and a half% 3% a day and it's climbing it's grinding you know and you have a $500 average it feels great um but obviously you missed the fast one and then that's a huge opportunity missed I did play it on the short side but um I also gave back the most amount of gains on the short side on that one like I was up huge and then I gave back half the gains overnight and then I did it again

and um eventually I stopped playing playing it and then you get the real big move and I at the time I had like 1,070 average and at the time you're like oh this thing's too whippy up here and then it finally breaks down 800 700 gets really tight at 600 uh fails you know rebounds now they're not filing a 10K another 100 Point dump and you're just like so many great opportunities and I was like man I once had 1,076 was my average on the short and and now you're like I don't want to how

weird is it psychologically when it spites to 1,200 in your mind you're like that's the top like this has gotten absurd and then you know it's not till months later where you're like man I don't really want to short it at 700 I had it $400 higher and then you know it still ends up you know going another 40% lower um so I think sometimes I gotta like work myself out of that own mentality that like just because something's gone up too high doesn't mean if it doesn't tighten up and give you a tight entry

that it's not good like I bought Nvidia today my first entry it's it's funny because um I bought Nvidia today $117 and then1 120 my first entry on it was um $167 bucks I believe in like December of 22 all right and it went from 167 to 230 and I was like all right this went up too much and I let it go and all these times you know it's like watching Nvidia still go higher and higher and higher was like this is why we really have to swing this is why we have to size

him properly uh this is why we have to let moving averages work um because I don't really truly know how high something can go I think what became difficult for me um to figure out was how do I sell something so that I can capture most of the meat of the move and then I just started to say well if I'm using moving averages is like if you just looked at you know a thousand charts roughly how extended do they have to get from those moving averages for you to say hey you know we're if

if a stock moves 4% per day and I'm using the 50 simple moving average is my guideline and I say hey this stock moves 4% per day and it's up you know call it 28% from its 50-day then I would say to myself it's seven if if every day it moves 4% and now we're 28% from the 50-day we're seven times its average daily range away from the 50-day right now mathematically we're starting to get extended you know once I'm getting to seven times eight times nine times 10 times I really want to make sure

that I'm scaling into that right on a daily chart um and then if a chart is if a chart moves 4% per day and it's less than 16% from the 50-day moving average I'm still comfortable buying it but I'm sizing down ideally I want to be buying something as tight as possible in a chart pattern and to the 50-day and we could even look at like Nvidia as an example when I'm buying something how extended is something and I think it all just for me it just became a mathematical thing and this is something that

I've studied um it's just when something gets over 10 times its average daily range above the 50-day uh simple moving average it's almost an unsustainable move so it's something that I know I have to be peeling off a chunk of my position into strength usually over seven times its average daily range and and the same is true like if a stock moves 20% like it's some low float you know or like an N you know it can get it can go wild get wildly extended but when they move 18% a day and now you're 200%

away from the 50-day which can happen you know you're still only 10 11 times its average daily range away from the 50 you know you need to be peeling aggressively but you know moves like that aren't impossible and those are kind of the moves that I'm personally waiting for um to be peeling completely into strength then again if a chart is really pretty but it's you know six times away its average daily range away from the 50 I don't even engage in it um because the likelihood of it succeeding you know is very low and

what am I really shooting for another 1% average ear like another one times its average daily range again if a stock is moves 4% a day or three and a half like um Nvidia 3.66 and you know you're up call it 4% and you're up 24% from the 50 there's not a lot of juice left on the bone potentially before you know you mentally have to start peeling and you look at a chart like Nvidia today it's one it's less than 1% from its 50-day and when it takes out yes yesterday's highs you know at

this point you're you you're less than a percent um from from it's 50 day roughly a percent you know you're buying 117 if you're waiting for 120 to break the range and and add to your position you can and then again simply for me all stops become low of day um anytime I take an entry and how do you know that today is the day to buy Nvidia well one price right it's break it's no chart like I don't want to anticipate that something has to happen but when price takes out the prior day range

right it has to do that first in order to establish itself to meaningfully go higher but then on the daily chart everything's very tight and it I've always had like this little like um saying in my head that birds of the same feather flock together I'm sure you've heard of something like that so it wasn't just Nvidia right it was arm that had a very similar chart um it was TSM so you look at arm um link these here you know so you look at arm and you can see again a move up and then

a sideways consolidation getting very tight a TSM you know a move up a sideways consolidation for you know uh on the hourly chart and again the charts are effectively the same thing over and over and over so it's a a move up a move side ways get tight and that's where you can limmit your risk and then you're buying it as it's breaking a range usually for me it's an entry over prior day high if I'm looking to buy a breakout there are a few other entry tactics which you could buy an undercut and rally

which is like you might break a prior day low and then you start to reclaim um and then I'll use like a five minute you know time frame where I you know like I've always respected Lance and he coined it as the right side of the V so get that move down into prior day lows then you start to get that reclaim of that prior day low you know the tape isn't as heavy anymore you know maybe you're seeing a few more bids maybe you're seeing the a big wall on the ask that just is

getting chewed up and you know I like to see big walls on the ask everybody's like oh that's super bearish if it was super bearish and that big wall on the ask really wanted to get out they'd be selling to the bid but if they're just sitting on the ask right they almost know they're going to get filled right so I love seeing big walls on the es I know it sounds silly but then when you break through them you get that nice little burst right through and then you see another big wall you know

the bid is very thin and you're like oh you know this is just going to get knocked right back down gets knocked down a couple pennies soaks right back up now you're right back up against that big wall and you'd be thinking like oh I want to front run that big wall is maybe to short it and I've done that a zillion times and let me tell you it doesn't work right through the wall the wall disappears you're pushing right back higher and I look that little right side of the V capitulation against prior day

lows against a prior left side uh on a daily and then you know play it back through and then once it gets through moving averages maybe add but the key I think for swing trading and a lot of Swing Traders know this is you have to scan the market when I was a day trader I was Cash every single night I would come to the computer the next day what's gapping up what's not what's got news what are some levels what are the stock maybe showing the most relative volume let's let's scalp those if we

have to fine yeah um's process them for that then like your nightly process to scam because like you said like for a day Trad and and I don't want to assume our audience is like more day Traders than swing Traders but I think everyone is interested obviously in S I certainly am so what does that process look like for you like I don't know is it typically an evening for example an hour night kind of thing um flicking through obviously what happened during the day Etc yeah so it's a it's a combination kind of of

all of it um I like to scan in particular the evening um I you know I just the Market's quiet it's turned off you know maybe just the Futures markets are going um so you kind of get a sense of oh you know the Futures are coming down a little bit right now some of these positions that I like for Longs maybe we get a small little gap down in the morning we get to see if we get that morning strength but it always starts with scanning um the first scan that I like to do

um I scan for my three-month relative strength scan so I like to know what charts are actually holding up best over three months and literally if we go um just right from top down I am sorted then by the most liquid some names are holding up better on my list but I want to look at the most liquid ones first and obviously the best uh and most liquid name in the market um is meta um and then recently you've got Baba and you've got Visa getting absolutely hammered um Netflix making new high and Netflix is

another great beautiful example of the exact same thing we look for it's just a move up a pull back you almost get this nice flat base right around you know 710 bucks roughly and you could just be playing it for a little breakout over those highs right a breakout move to alltime highs and you're doing it I think it's really important to take this into context when you're buying you're buying something with the market Direction at your back yes do I think Netflix and meta and Nvidia do the Apple Microsoft do they all just go

higher eventually if you just close your eyes yeah probably but if you're trying to not really guess and get into the green right away you want to buy something as it's leaving a tight consolidation that's how you're going to limit how much risk you might have when you initially open the trade but then I want to buy something on the day the market is at my back right yeah when the Market's going when the Market's going down that's a really great time to scan and say what stocks are holding up best but when the market

finally begins to go up the ones that were holding up best during the correction are the ones I really want to own coming out of the correction right you could look at a software name like now and it was getting absolutely or the market was getting absolutely smoked there for a moment and now still hanging out near 52 we highs right you look at a name like um Netflix you know the Market's getting smoked and very quickly hanging right back out in near 52- we highs any names that are hanging out near their 52- week

highs when the Market's going down are the most likely names to advance the most when the Market's done going down and then and the inverse of that is true too when the Market's going up the names that are going down are the names that I would like to short but I don't really want to short when the Market's going up I'd like to do it I'd like to engage in a short position when the market gives me some distribution not like a day like today right but on a day in which the Market's actually coming

down I don't then just want to short the names that are most extended and highest up and have been showing the most strength I want to short the names that have been already showing relative weakness for days and weeks at a time right and you could think of a group right off the top of your head I'm sure solar names and say to yourself every time the market was incredibly strong those names were showing relative weakness the minute that the market showed any relative weakness or distribution those were the names to get crushed the most

right then then the market would turn back up and maybe those wouldn't get crushed anymore those would just go sideways but their initial move was down so the same thing is true for Longs the initial move is up then the market you know maybe pulls back and the best names will just kind of go sideways then when the Market's done going down the best names will go the highest and again I like to buy when things are on like on sale right not the stock on sale but the stock market on sale right because once

the stock market stops being on sale you're no longer dealing with with any market headwinds for your swing positions so when I recently bought cpng coz Nvidia today Tesla a few days ago you're really not getting any Market push back because the market bottomed a month and ago right it had the huge wash out you know what was it August 1 you know we had the vshape recovery everybody thought we were going to wash back out semiconductors did a double bottom against their 200 and they're the maybe biggest group for institutions right now semiconductors and

so those names got supported and it wasn't just semiconductors it was you know crowd strike finally washed out from 200 and recovered you know another hundred bucks of that um pandw did something similar and and now you've got themes right you've got the energy theme you've got the powering a uh data centers uh like with ceg and gev and again gev another absolutely beautiful chart right you get this really nice sideways consolidation and um you know you start to say to yourself hey out outside of this and some people will call them Darvis boxes some

people will just call them you know consolidations whatever people might want to call them but you could look at a day very simply like 828 and you could see how absolutely tight you get a move up and then you get a sideways consolidation on 828 you have a incredibly tight day and then you get the breakout you know on a on a you know breakout over prior day highs breakout over the little range and you know you're buying anywhere from 186 to 190 with a stop at low of day I I think the biggest problem

that maybe most Traders have and I've had this problem myself is sizing properly you know I came from the day trading background I come from the day trading background so when you're only trying to capture a you know 3% 5% 12% move you oversize it right when swing trading you don't really know how far something can go but to truly be able to hold a move you have to be sized properly right if you've got 50% of your account GV the first down Tick's going to shake you out yeah right literally a few days after

you would have bought it you you'd have gotten a nasty shakeup um you know if you bought this thing on 829 holding it on 93 is going to be very difficult but if you only have 10% of your port folio at work you know and and again if you have a you know a million dooll account you know you might only have 500 shares here 500 600 shares here so in order to really make money right you you would have almost needed it to go on that 60p point run that it went on yeah right

in order to really you know make 30 40 like in order to make some good money you'd have had to have held a big chunk of that move and and my you even after that one little kind of shake out a few days after you bought it it never broke below the low of day or even your average of the day you bought it mostly never closed below and then it just held the 10 and the 20 it even held the five-day moving average it's still above the five-day moving average and again when you're a

SW when you're a day trader and you oversize something it's very difficult to hold the entirety of that move but when you're swing trading and you're sized properly not no one position is going to move the needle on your portfolio it's going to be very good TR it's going to be healthy trading in an even better environment like you seeing things well but you're no genius it's you're in a good environment and you know again it's it's not like a lot of people didn't see gev breaking out over 185 190 it's that if people wanted

to get in maybe they bought too much and now they're not in anymore but people who are properly trading and I know several guys who do own the name right I got a couple of guys who I talk to frequently and you know they manage some money for clients and they own this stock for clients but when they buy for clients you can only own and buy so much safely so you're not blowing up you know your clients's money and but if you do it properly now you're still in it and you'll notice that a

lot of the names for example that I'm in they're basically the exact same thing you get this exaggerated move up you get several months of consolidation when this thing got nice and tight I bought Kors on 912 and the thinking was with Kors you know while Bitcoin was pulling back Kors was still going sideways and I told myself if the Bitcoin sector begins to turn up you know who are the names you'd want to own well there's ibit which basically mirrors Bitcoin there's mstr which is very leveraged basically to bitcoin and then Kors Iron Wolf

you know we've seen those go on pretty big runs over the last several months and have big pullbacks but start to set up again and you can look at Wolf another great example and of why maybe you don't necessarily have to give up on Mid and small caps just yet and you can still swing them but the thing is with like just owning wolf is it fits a theme and a theme is very important you know it's the juice behind the stock that you buy right it's going to be that thing that really gets your

stocks moving uh it's a theme good earning sales so just touching on that then like these the themes that are merge obviously it helps to be I guess I not I don't want to say early but you have to time it well in that like everyone now can look at Nvidia and say the theme of this year is AI like it's not at this point it's not difficult but perhaps earlier in the year like you could be a massive skeptic and be like I don't think AI is going to change the world or whatever in

the next five years whatever but equally that's not what the market said so right I guess on that point is like how are you like you know recognizing these I'm sure your scanning process but or you know but how are you recognizing those themes as and when and getting that timing right yeah so actually I learned this lesson very early so I became a swing Trader uh 2022 and January 1 2022 and coincidentally enough I be yeah I literally and I became a swing Trader what I thought was at the perfect time 2022 was miserable

but at the very beginning of the year through scanning I noticed a setup in these energy names and I said to myself like remember the whole birds of the same feather flock together all of these stocks had Sam I kid you not identical setups and we will run through a few just so you can see so this is the ETF um XLE right and I will not forget it and you know what I will even um extend my time frame just a little bit more I'll go five years on this XL ETF okay so so

now we're coming into okay uh January how far back did we go here okay here we are all right so this is and and it's funny because Sam I kid you not every single one of these names I'm about to show you had the exact same setup so when I'm scanning I'm like a kid at the candy store the next day I've got got alert set and I remember I bought XLE 56 bucks I did it perfectly and I bought this thing on January 3rd and again very simply you had this thing basically bottom out

right at the 200 day moving average um in 2021 and you it had fond support right at the rising or flattening 200 day it makes this nice little move up and then you have this little pullback right basically into year end and of course you get that little wash out and you've seen this wash out now probably on all every single name we just traded recently where they have these wash outs right to the 200 and they find support and they rip right back up well right before it took off you'll notice December 28th 29th

30th and the 31st had this little three-day pullback on the 31st had this little upd and on the hourly time frame it's about as tight as you can get you can draw this little tight trend line right in there and I bought and you could see the moving averages they're stacked right on top of each other so this was XLE the energy ETF and for example this was dvn and at the time it was one of the stronger names and this was you get your move up you get your three little pullback days you get

your one day up and then you had your breakout and basically this was kind of like almost like a flat based breakout and again your entry would have been like 4430s all the way up to even the close if you just bought the clothes you know 45 bucks and that was dvn you had Fang it was was the identical and I mean I kid you not the identical setup you had this nice strong move up off to 200 this little wash out still well above the 200 got these little three red days in a row

it's like the exact same candles and part of it goes why do charts put in the exact same candles because it's the same institutions buying them it's the same institutions not selling them so it's gravity just taking over maybe they're not showing up to buy something gets really tight and then you're not the only one who know no is that chart pattern a lot of people who have that pattern recognition and are recognizing that energy all has the identical setup you know they're there to buy it you know that that day and then you know

institutions also finish you know finishing out their position for the remainder of the quarter for the next six months and that's what drives a stock higher for months and months you know you look at VRT or VST or L for you know Abra cromi you know AB cromie was 35 bucks the thing goes to 200 sometimes it just takes institutions qu ERS to finish out their position you don't know how long it's going to take and you don't really know their time Horizon but it's them buying that kind of creates that picture that you're seeing

and for energy they everything had that exact same picture and so when I'm scanning here's conico Phillips look your three little red days in a row your one green day very tight and if you study pretty much every single energy chart 2022 January 3rd that was your breakout day your buy your Buy Signal for for pretty much every single energy name now granted I did get shaken out um I was like a new swing Trader um and I got shaken out pretty nasty um in some of these because a lot of them did have a

pretty nasty shake out like something like oxy um right down here and I remember it was bad it wasn't right here it was like right before this thing went even higher I don't remember what it was but I think I closed this nasty Red Bar and sure enough you know you're like oh all right well move from 30 to 3 know 25% not terrible and then the thing ends up at you know another 100% higher and it's the same thing it's Sam it's the same thing I kid you not you can even look at a

chart like AMR it's probably one of the best examples that I can ever remember you know you get this you get finally something gets over its 200 day you know and it and it goes sideways and breaks over its 200 day you know and then continues to grind higher pull back go sideways get tight grind higher pull back I don't really ever ever want to look at a chart below any key moving averages and say to myself oh this thing's gotten too cheap here it's time to buy some right like I had somebody I had

somebody sorry for interrupting I had somebody asked me today hey Ariel you see semi going do you think aehr is going to make a comeback and let me just for example pull up aehr and then I say to myself look at this thing now well below its 200 day and trending below a declining 200 day and then look at how Nvidia was tight above all key moving averages yes can ahr go if the entire semiconductor sector just catches heat right where Alm and lscc and ACLS and everything's just ripping could ahr go back to 20

sure it could but it's got tons of overhead now and it's not a leader right the very best stocks are going higher or sideways when the Market's coming down and then when the Market's going up they're outperforming and when the Market's coming down they're outperforming right when ahr the Market's basically at new all-time highs and aehr is back to two year ago prices right that's not a chart I ever want to focus on because it's not outperforming anything makes sense like why deploy any Capital there when you just right because for some people it's gotten

too cheap and the last time Nvidia was at $120 right aehr was higher right or some people will say well nvidia's up even another 100% when ahr was at 50 now ahr is at 12 and nvidia's up 100% higher from there like ahr is gonna eventually go to 80 90 it's like I don't care about that at all right I want to find when when a stock is on my three-month relative strength scan yeah like I look at Baba and you know obviously the time to have bought Baba and you could even look at this

little setup it's it was very choppy but you could have bought like you had this little move you had higher low higher low and you could have just drawn a very straight line you know basically right over 86 bucks 8570 and over 8570 maybe it's a good long and again you're lot now looking for an intraday entry and with The Gap up that high it's a little tough unless it's like an earnings Gap up but that was the time to buy it now they're a bit extended and I look at it and I say Baba

moves 2.24% per day and it's up 15 bucks from you know from the 50-day so you know percentage wise we're we're getting there and now wouldn't be the time to be buying Baba right just because like we talked about it would actually be a time to be trimming Baba not buying Baba just based on its extension from the 50-day and you know that's very important and you know kind of once you're thinking about that so if you think about the 50-day it's 8242 so it's you know pretty much down here on the daily and we're

so 18% basically in terms of price from the 50 day and this thing moves 2.5% per day so we're effectively six and a half times its average daily range from the 50 yes Baba's going up but for a new portfolio position for swing trading no way absolutely not um um and I think again that sometimes like little nuances like that of like when to get involved when you don't when to pair back some risk and and take some of your chips off the table and there's nothing wrong with you know if you just look at

Baba and you see the Relentless higher lows against moving averages right now my thinking becomes hey when this thing retraces back to an ascending moving average just like it did every one of these times on 815 828 99 and it finds support at those Rising moving averages right if you have another entry tactic you know using a smaller time frame as something's approaching a daily level and then zooming in on a smaller time frame like a f minute chart and then looking for that you know that right side of the VC capitulation or looking for

that little move up off the lows small consolidation maybe back over vwap something like that maybe a red to Green off of that area and knowing hey it's a bit extended right now but China is a theme China's in play you can look at Lee you could look at JD you could look at Baba fxi with the largest upside volume in history today you know those are Clues and how much further can something go you and I have no idea but now's not the time to engage but it's already proven to you that for instance

Baba is finding support at Rising moving averages when it gets to a rising moving average you know it'll be on it'll still be uh on my three-month relative strength scan and when I'm scanning at night I'm going to say hey look at this thing resting right on the 20day or right on the 50 day I'm going to take a look at this thing tomorrow and see if you know this is going to maybe give me a little red to green or maybe a break over prior day highs or maybe a break back through that 20-day

moving average and all of those as long as you've studied that entry or you're limiting your risk you say hey when I enter here I know where I'm getting out but most importantly it fits the theme that you've scanned right right now China's a theme right now gold and the silver miners are a theme right now the anything to power uh AI data centers is a theme semiconductors with TSM Nvidia you know AMD it looked like they could be maybe coming back as a theme the semiconductors um you know the I saw iron today I

saw Kors recently Wolf's been acting well you know the whole um data center that isn't maybe a crypto Miner like Riot you look at it cleanspark you look at it Mara you look at it they don't look the same they are totally different charts you look at KES CZ or MST and then you look at Riot and Mara and clsk and if clsk was keeping up it'd be still at 17 consolidating like still chopping everybody up waiting to go higher but it broke that 15 level and it washed all the way down to nine or

whatever the hell it was and and it doesn't act like wolf or mstr or core like Kors is is less than 5% from alltime highs right for for clsk just to get back to where it was for months ago that's to go up a 100 per. yeah that makes that makes so much sense and just to like take it back a bit so you've touched on um moving like you touched on moving averages obviously they sound like a really key part I guess like the question to you is like in terms of the nuances that

you've explored with moving averages how did how have you come up with your process because I obviously I know you've touched on the 200 you touched on the 50 it sounds like they may be the two most powerful and I guess like as an add-on question to that is there a difference when you see that Confluence like you touched on a chart just a second ago and there were like three or four moving like crossing over super tight everything is so tight um and I've heard some guys call this like a Launchpad setup you know

or the power of three um okay so for swing trading in particular when you're dealing with small and midcaps um maybe small caps I really only want to be trailing the 10 and the 20 right I don't want to give a chart the ability to get super far away from the 50 and then retrace all that move back um but if it's something slower like Lily Nvidia avgo Netflix meta Google I want to give these great companies the benefit of the doubt and if you're above the 50 right like when abber kbby finally had that

Breakout out at $35 it gapped up big volume over the 200 over the 50 you know around $28 and then just trended higher above its 50 and didn't bother to close below its 50 until 49 of 2024 at $120 and yes when it reclaimed the 50 it then went from $ 120 to 196 so do I want to stay in something that's below the now here's the thing if you bought the earnings Gap up at 28 and then the next quarter it gives you another earnings Gap up on 823 at 50 bucks and now you're

in it right you're no and you've trimmed some you know at 90 100 because it's tripled for you right and and maybe you only have a very small portion of your position left but mind you it's tripled in size so it's actually not only move the needle of your portfolio but if it was a 10% position to begin with by the time you've gotten to trim at 100 it's not a 10% position anymore right it's it's a huge portion of your portfolio almost um but you're not using the daily anymore you might be using a

weekly chart and that's what you allow great earnings and and here's the thing you can go back and study this you know a lot of people have but like earnings winners if you catch the very first earnings Gap up um or that first change in character it can go on for 18 months you know you think about an Nvidia it's been about 18 months all these semiconductors names meta you know Netflix it's been roughly about 18 months since they've bottomed and they're still going now I don't know how much more these things may or may

not have in the tank um but some names can last about that you know again you don't want to get too cute withholding something for too long because you can end up in a situation like elf you know where it breaks the 50 and tries to reclaim and breaks the 50 again and once it does it then finally loses the 200 and if you get too cute with it you know you go from 220 all the way down to 111 very quickly so you do have to have some rules um to get you in and

out if you're trading much slower names um you know maybe 3% average daily range or slower like ailia nardis you know the 50 days is good if you're trading something faster even like eelf or Celsius which is like 5% average daily range or more you know the 20-day is probably and or the 50-day at Max um something that's acting really good on earnings and has been acting good on earnings deserves the benefit of the doubt um and and most stocks you know they'll they'll like like I'm sure you noticed Celsius long before it topped and

how strong it was and how many seems like million entries it gave from 10 bucks all the way to 100 or or even more because it actually split so like 10 bucks to 300 you know it gave over the course of a couple years a bunch of great entries but you know eventually the music comes and or the Music Stops for every stock and you you have to have some kind of rules to get you out I don't want to be ever engaging into any swing trades on stocks below the 200 day um I prefer

my stocks to be above the 50-day the 50-day is what I personally use to as a percentage gauge to gauge how far something is extended from the 50-day to know to trim or not or to not engage in a position um but um yeah the I don't use the 200 to trail I just don't engage in new swings below the 200 I use the 50 just to gauge how far something is extended and if I should engage in a news anything four times its average daily range above the 50 I just won't do it um

if it's a small cap maybe just size down because you know that they can get up to 10 12 15 times average true range away from the 50 um but like a midcap large cap once it's you know if inid like Nvidia was less than 1% from its 50-day but if it's if it moves 3% per day it actually moves 3.6% per day if it's four times its average true range away from the 50 you're 14% away from the 50 so for example if I'm buying Nvidia instead of today I'd basically be buying you know

it like a 100 okay so 14 14% higher imagine that I would be opening up my swing at $130 Plus instead of 120 yeah right like the meat is off the bone yeah right if it gets to 130 I want to sell some there right but you know if you're in if it's four times it's average sh range away from the 50 it's like you know I would be buying it at $130 plus it's like it's it's not to say it can't go higher but like you're leaving a lot of meat on the bone there

I suppose as the further you go that the odds just say it's impossible but the OD just begin to go against you and then like if you're gonna jump out of a window because that's what stock trading is you want to jump off the 10th floor or the first that's an interesting way of putting it yeah you know if I fall and and if I fall I want to fall the first not the 10th yeah such and that's like the best way to put it like if I'm wrong today on Nvidia even if I'm using

you know yesterday's lows as my stop and 117 and I actually bought it today 117 got stopped out low of day and then re-bought it as it went back through prior day highs like it just started ramping I was like what is going on so I bought some sized down a little bit compared to what I bought in the morning because I was already took a loss on it and then I was like okay 120 is kind of My Level it can get above 20 I'll add a tiny little piece which is what I did

and so I still use a stop at low of day but like even if I'm wrong you know um we're talking less than 3% you know 2.8% wrong essentially from my average and again I don't have a 100% of my money here so and even if you did you know some people I was day trading I would sometimes have 3% red days um I know all too much about that for with day trading you oversiz things but and obviously you touched on then like stopping out of position then reentering then so I mean what's your

criteria then with that because obviously like if you're coming from like a day trader a day trader mentality you're quite used to stopping out re-entering or Ty if you're shorting like a small cap or whatever it goes a bit higher and you Resh you like stop half hour and you reenter a little higher and recycle those shares or something yeah exactly so how does that I mean how's that working for you then because obviously like the cost the cost of missing a move like say like you know if we we might if we had this

conversation next week and nvidia's at 130 135 140 or whatever you'd be absolutely kicking yourself if you'd entered today got stopped out of lows and didn't reenter yeah so I actually um this is straight from Christian kbagi himself and he says you know if you get stopped out you know just and but it re-triggers and it's starting to break break back through your range and that's the most important part when I first took it you know it was trying to break out over prior day highs I got in and it instantly got stuffed and I

was like well that's not fun and so I was like all right I'm on the sidelines but it's like hovering right on this 50 day I was like if this thing breaks yesterday's lows it's now below the 50-day like I just longed it but if it breaks prior day low is like I might have to short it and so like I'm ready for that because it's breaking prior day low and the thing was very tight and if you're going to live below the 50 day I would short it um but it started to ramp right

back up and right back through prior day high and I was just like okay now the difference with when Nvidia started ramping the second time few things one there was this tiny piece of news that Jensen Wong was done selling shares stupid totally irrelevant news but that's the news that was being circulated two TSM avgo were starting to go and the market was like pulling back kind of ugly and so was Nvidia at the time all of a sudden Nvidia starts to get through that key level and I'm looking at the es and I'm looking

at the NQ the Futures markets for the spy and the NASDAQ and they're ripping and I'm like all right well if that's gonna happen and mind you at the time it wasn't just that like Google had turned back up you know AMD had turned back up arm was looking really great TSM gapped up big last another semiconductor name avgo still looks really good so I'm getting evidence from other parts of the market I mean and even at the time like when I see it might sound totally stupid but I see Bitcoin ramping up and when

I see Bitcoin ramping up I know there's speculative money flying around I'm not second guessing taking that entry because it's again it's not like I took that first entry with 100% of my money and took a 3% portfolio loss and then did it again and you know and then got my money no it's like I took like a less than a quarter of 1% portfolio hit literally less and and I'm prepared to you know take my next trade because it's still triggering and again if Nvidia comes back and stops me out flat it is what

it is but if Nvidia goes on to work you know and goes and makes a new all-time high and goes to 150 160 that's almost what it has to do to make this an incredible trade otherwise it's just any other trade right as a day trader you know you cut trades all the time for flat small red right I only have there's only one trade that is unacceptable in my book and that's big red and that's why I wait for things to be incredibly tight right that's why I wait for that sideways consolidation right that's

how I limit my risk but because of your the way you size things actually have to move right a good amount in order to like really move the needle in the account otherwise it's just I forget about like if Nvidia came back and stopped me out again to you know today and then I had to buy it again tomorrow those first two losses it's one of a gazillion little tiny losses that I so it's like you're allowed to have really small red really small green and tons of flat trades because once a stock starts to

work for me like Nvidia is I'm not maybe using low of day anymore like I will not be using low of day I'll be using something like my average for my stop so I'm comfortable it coming back to flat and getting stopped out now after something works for once Nvidia pushes 4% do I have to have a low of day stop anymore you don't have to could you sure it's still a really small loss but that violent move higher now makes me want to put my stop at flat that's exactly where my stop and so

in order so now really the three trades that I take most often are effectively off the table it won't be small red it won't be big red and probably won't be flat you know the likelihood is that it'll be small green or it'll be very big green right but very big green is if it goes on this really nice Trend you know like when it went from 500 to 900 which was like my final cells like n something and believe me I was kicking myself I didn't hold it all the way to 1400 um but

it doubled and that the doubling is what made made it a really nice trade had it gone up 10% wouldn't have made a difference it literally wouldn't have I would have just been trailing it on an ascending moving average but sometimes like even on a like even on shorts like today as an intraday trade I I shorted paler and you know off the open and I was expecting some kind of a bounce and the thing just never bounced and I was like waiting for a bounce to add more and the thing never freaking bounced and

I was just like fine forget it I won't add anymore like I this is one of M this is one of my favorite saying I always say the best ones don't bounce the best ones don't bounce you want to add so back but I've been caught in that stupid v-shaped recovery a couple times well there was that yeah I was like all right I was like I'm not gonna add but I won't and I knew it's just GNA be an intraday trade but I said to myself like I won't cover until and I take my

entries like this and sometimes I take my exits like this too it's when the 6 EMA on a five minut curls back up and gets back above the 20 and so once your six gets back above the 20 it you know momentum's kind of starting to flow back up I just cover it but the I was waiting for the thing to like come maybe retrace the vwap give me a chance to add nothing the thing just dumped a dollar3 cents and I was like well I have no size but the best you can do is

just Trail it on a smaller time frame and and that's it um yeah so let's just let's just touch on that so there's a I think there's a couple things to add there so on just going back to like the Nvidia example from today from like and like just to like break it down because I don't this is always a question that's always hot mind so you touched on like the break of 117 and the break of like 120 what does that actually look like in terms of like the execution in terms of like are

you just going bang on a type of TR one like you see 120 flash of like bang I mean no so really what I like to see um especially like when I take all my entries they typically occur on a f minute chart so um and and I'm always using level two like if I scoot my screen back I'm sure you could probably see all of my um yeah it's pretty busy yeah you could see so I am keeping an eye on you know my level two but really I mean when I use a moving

average my focus is really just that moving average it's are the smaller time frame moving averages trending up are the moving averages on The Daily very tight and when I'm taking that entry at 117 I already know as I'm taking that entry where my stop is so I know hey based on you know with my 117 entry and how much size I'm going to take this will be my loss when I'm wrong right and I'm wrong so often I pretty much just say to myself there's about a 60% chance right now that you're gonna end

up that this will come back on you and stop you out low of day but I had that you know but I'm sizing in properly and the market Direction was at my back right and like I said if you look this morning TSM with a big gap up and all of China names had a pretty big gap up even though tsm's from Taiwan but you know you had TSM with a big gap up you have avgo still looking fantastic you know um I I want to say it was KAC the one that I noticed was

still acting yeah that's still shaping up SMH is still shaping up so it's like semis are still looking pretty good and I've always thought this before they look like they may be wanting to break down but when something doesn't break down it has a fast break out and when something doesn't break out and it has a failed breakout it turns into a super fast like failed moves come fast moves right and the same thing is true for the short side like it looked like Nvidia was really weak in the morning and then boom came a

really fast move almost a little too fast for me to just take it all but it's turning up and I'm you know the other screens that you're not seeing you know around me I'm looking at all the Futures markets I'm looking at relative like if I'm buying um Nvidia I'm not just looking at Nvidia I'm saying to myself what are the q's doing because it's it's the most important Tech name and what's Tech doing and then I say to myself if Tech's doing all right the QQQ you know because I don't just want to buy

Nvidia when the Market's getting flushed out I want to buy when the Market's on my back I'm looking at the cu's and then I'm looking at other semis and they're going up and it's breaking a key level just because I got stopped out I'm happy to Reby it back and yes I'm looking at level two again I started as a day trader so like I live on that thing you know I just really want to see you know maybe 117 break maybe Wick back under one you know 117 and it gets soaked up really quickly

and then all of a sudden you know if there's any kind of wall on the ask you're just chewing through those I told you what I like seeing before some people think it's bearish I like seeing fat walls on the ask inversely when I'm short I don't want to see a super thin bid I I like to see a wall and then I want to see that wall get taken down you know if the person who's buying on the bid was so anxious to get out he'd be buying the ask but if he's just sitting

on the bid and he's a buyer he knows he's trying he's gonna get filled which means it's gonna go lower and I've always saw that like when I see a big print on the ask and I'm like hey that's like a dollar higher that's 50 cents higher on AMD or Nvidia I'm like this thing's probably going to that level to take you know that ask out take that wall out and it's always my thinking and and I'm using level two to my advantage not everybody does that because the reality is the truth is is you

don't need it you you do not need it you know you can go back to and i' I've had this discussion with many other Traders you can go back to November 1st 2023 last year when the market gave us a follow-through day um the market was washing out all of October and all of October Cy while the market was going lower three waves lower cyber security was going perfectly sideways and that was your leading group right and crowd strike went from 170 all the way to 400 you know months later panw went wild zscaler Zs

went nuts um snps another cyber name went wild but more importantly the reason I say you don't need level two is because if you understand and I told you I like to buy stocks that are holding up best when the Market's coming down when the market last summer came down 10% and then now all of a sudden coming out of that correction you had AMD responding really well getting back through a 100 bucks on earnings you had um um obviously all the and and even like Nvidia it had already made such a big move it

was still finishing its consolidation but at the time you had like uber making a really nice move from 40 bucks you had Shopify with a nice Gap up you had um for earnings play you had AMD you had deck for shoes you had Netflix you had AET um and all these stocks like if you looked at uh deck October 27th was the market bottom deck put in its earnings that night and it gapped up big on the night the market put in its bottom then the market floated higher the 28th 29th and 30th I believe

if I'm not mistaken or in that order and then the very next day it was October 1st the market puts in a big volume day and at this point deck had just had an earnings Gap up and went sideways the day before the market had a follow through it had anet hitting 52- we highs it had Uber basically hitting 52 we Highs at the time or it was you know coming out of uh was a kind of rounding out its side and and and it went from 40 to 80 um and so a lot of

these stocks they're at 52- we highs when the market goes through a 10 % correction yeah they are SC like I remember Netflix reported uh middle of October and the market still has to come lower for two more weeks and Netflix gaps up on earnings and if you looked at Netflix and I I'll pull it up right now it's a great example right if you looked at Netflix the Market's going lower and this is what the mark this is what the Market's causing Netflix to do but Netflix on 1019 has this big gap up for

earnings right back up above the 50 the 200 and mind you the market still has to go lower until the 31st so while the Market's going lower Netflix literally goes sideways yeah literally goes sideways and it was a big gap up on earnings and now the Market's getting beaten up and this thing is no longer getting beaten up because institutions are not selling it and they're buying it even when the Market's going down hence the reason Netflix is going sideways so if i' um so if I've understood like this conversation correctly this is a test

for me um the so what you would have done then in that Netflix example as per your setup obviously it's gabbed up it's gone sideways then you get in the strength from the market follow through day 111 was the day if you're if you have so and I've studied this and I would recommend any swing Trader to study Mark minini he is probably the best in my opinion or one of the it's something called Progressive Expos right if I don't have a swing portfolio I don't just go from no exposure to on margin in day

one that's not how that works right if I have no exposure on because the Market's just coming down all of a sudden you know Netflix gets on my radar when it gaps up on earnings all of a sudden deck gets on my radar when it gaps up on earnings and but what I'm really waiting for is I'm waiting for a market follow through day so the way any Market follow through in the history of follow-through days as described by Bill O'Neal is you get a bottom you don't know that it's the bottom but it's a

bottom right usually it could be big volume but but there it is so then what the market will do is for a few days two three days it'll just climb higher right it'll like float higher and then the third through the fifth day you'll get a nice Healthy Green Day in the market but on an increase in volume over prior day right so now this isn't just some low volume bounce right it's a it's a it's a three-day move up but then on the fourth or the fifth day and now all of a sudden institutions

are interested you get this pick up in volume in the q's and the es now all of a sudden you you don't even have to buy at the open you can wait until the es is about to close like a market on close order and say to yourself okay there was a pickup in volume today on the QQQ and the spy and were three or four days removed off the bottom and to confirm to yourself a little bit more that you have reached the bottom or you're more likely that the market's at of bottom how

many sectors and stocks are actually set up to go higher because there it's stocks that drive indices higher not indices that drive stocks higher so what stocks are set up to take the markets higher back in October your leading group was cyber security without a doubt right and so cyber security was set up and ready to take the market higher and it did Mega caps were also set up to take the market higher anything to do with the data centers So like um anet was one VRT was another and they were like already doing well

when the market was going down for that 10% move and then once we got into November you know I I've said it before it didn't matter if you bought a shoe company it didn't matter if you bought a semiconductor it didn't matter if you bought Uber it didn't matter what you bought back on that day so long as you recognized it was a follow through day and you've got some rules for how to get yourself and so like if I see a follow through day and I've got no exposure I'm trying to get myself to

like 30 to 40% exposure on day one right so like that day AMD has really good earnings it like flushes out and then gets caught like a bid that in after hours and then the next day when the Market's giving a follow-through day AMD just puts in this ridiculous candle right and you would be like I don't want to buy at the very top of that ridiculous candle even if you did which was like I think 110 or 111 bucks it still goes to 225 from there yeah so and it again it didn't matter if

you bought and and again this is why I say level two doesn't matter if you're listening to the market well and you're saying the market just gave me a follow through day what stocks are reacting well most importantly to earnings because if if it's reacting well to earnings right usually that move can last multiple quarters we just looked at AB cromi right it gaps up the first time at 26 the next time it's at in the 40s and the thing you know doesn't even close below the 50 until 120 so it gives you a couple

of entries but you know we're always trying to take advantage of these names in particular when the market is giving us an accumulation day or a follow-through day and then that's the day that I want to be buying things that are nice and tight things near 52 week Highs but when the market gets very extended I don't I if I've got like six or seven or like eight Longs open the way way I do right now let's just say the market rips for four or five more days and I've now pieced myself out of some

of my Longs I don't just want to watch myself get stopped out of the rest of my Longs I want to proactively start to look for weakness and I want to say to myself hey now that the Market's ripped higher for the last month and a half right what names are showing relative weakness and then when the market gives me some distribution what are the names that I'm ready to short right and and then that way if the market does begin to turn lower you know I can already start to use progress the same way

I would get long and use Progressive exposure to get long and initiate my buying power onto the long side you get the follow through day you you buy two three names you get 30 40% of your money at work on the long side once the market get stretched to the upside I want to start to say to myself how do I get 10 15 20% of my money to work on the short side on the swing side um and the same thing can be true like last year I was swinging I2 all the away from

20 all the way down to the low teens right and and again it's a it's a very simple setup that I've studied you know I learned it from another very talented Trader but you know called a double top short sale setup but I've even heard Nate uh who I've got tons of respect for just says look Left Right IQ literally hit the left side Peak around 20 bucks and then and then got destroyed right and so but the key is right and then I shorted it as a like a double top kind of a setup

I've actually got that t-shirt on actually it's not it's not mirror sorry at the moment but well it was funny because I actually again if I'm just sitting here I hate to say it sometimes I just take a little scalp if it's staring at me in the face but today I was like watching apld because I dislike the name and it hits the left side Peak at like 720 and I have like a 719 average perfectly and I catch a move all the way back down to vwap for like 3540 cents nothing crazy but wallet

patter while I'm still sitting here allowing my swings to work right um but again the the the thing with day trading it could be very very dangerous is position sizing you know you want to you want to make money so you oversize something and then you oversize it if you're wrong now you're chasing back games and H I've been there so I don't do it yeah well I mean I think after this hour I think everyone's going to want to shift from day trading to swing trading one thing is that so clear and obvious though

is like it must be your commitment and dedication to the market like just the way you're like recalling dates from 10 months ago the way that you're calling names you're describe almost honestly from this I almost get the feeling actually that you could just like close your eyes and draw charts over the past like three or four years um just that level of like detail and knowledge like I could which is very sick I mean it's commitment to the craft I think and know and and just like to wrap up this like it's honestly one

of the most fascinating conversations I've ever had and like it's just and it's also like so inspirational as well like just that level of detail how like far you've explored it but also like it also sounds like actually you've made it like as simple as possible for yourself as well like you start recognizing those patterns and it's like a simple I say simple it's like okay it's I take this break of this level and then I got my criteria for my exits and then you've almost obviously got the same in Reverse as well I just

like to wrap it up so someone like you got someone here watching now they've never they've never they never even swung a trade let's say it's get real basic what would you like just like perhaps their next three or four steps in the coming weeks months to start that path to get to you know to get somewhere near to close to your level as possible um I think the most important thing uh the most undermentioned thing is learning to scan the market and even as a day trader you know how important it is to find

the needle in the Hast stack right and I just want to know where are institutions putting money to work and where are they taking money out of right and it's and I rely on those moving averages to Simply say is this thing in an uptrend or a downtrend and if it's in an uptrend how do I hop on that train right and the train through consolidation is the only time it stops at the station right and so I think if you're a brand new Trader it's super important to learn the scan the market and focus

on leading groups even finviz has tons of great resources for figuring out over the last 30 days over the last 90 days six months what are the leading groups and focus your energy on leading groups if you like half of a Stock's price appreciation is directly linked one to its earnings and sales but more importantly to the health of its group half of a Stock's price appreciation right is directly linked right aehr doesn't ever go to 50 if Nvidia doesn't take off from 160 to 400 500 right it went 5x and that allowed aehr to

go from 20 or 15 to 50 right and so a Stock's price appreciation is directly linked to its group so it's very important if you're a new Trader learn to scan the market figure out mentally or right on finis over the last 30 days where's money going and then secondly what learn what is extended what is not right learn to refrain from having fomo because there's always tomorrow the stock market is not closing right Never Gonna close right Nancy Pelosi will not have this game turned off and she cly W yeah they will not turn

this game off trust me and so exercising you know really good discipline because there's always tomorrow so learning to scan the market understand what a decent setup looks like and then you know almost think contrarian right I'm not looking at the stock and saying this stock has gotten too cheap I'm saying to myself okay the market has now hold back what are the names holding up best yeah right or or the flip side of that is this Market has just gotten way too crazy to the upside what are the names showing the most weakness and

then always think inverse if you're going to short those are the name the ones that have been showing most weakness while the market is strong are the ones you want to short and inversely if you want to be long what are the names that have shown most strength when the market is weak and those are the names you want to belong and you want to buy them or you want to engage in your any of your positions when the market direction is at your back if I want to short one of those weak names I

want to do it when the Market's coming down if I want a long Nvidia today I want to do it when the market and its friends are going higher right what what's Apple doing what's Microsoft doing what's Google doing what's Tesla doing you know what's now once those are the market uh is doing well you know what are the other semis doing in its group because I understand Nvidia is the leader so they're all going to kind of go behind what Nvidia is doing so what are a few clues that the market can give me

that Nvidia is good to buy right okay so what's the NASDAQ overall doing give me a bigger picture of what the Market's doing okay the nasdaq's not getting beaten up right here right now nvidia's turning back up through yesterday's highs it's starting to break through the range you know let's buy it and I think that just becomes key and then finally for probably new Traders is position sizing I cannot overstate this enough it's I've done this to myself um if you oversize something uh it just leads you to get shaken out of every little single

EB and flow um and you know don't worry about being early to something you know just because you think you know something that the market doesn't if it's not being proven through price you know being early is still being wrong I I learned this the incredibly hard way uh in ccj I bought it at the end of uh 22 um and I caught like a gap down overnight and cost me a quar million dollars so still to this day it's a it's probably a top 10 loser of mine um at the time it was The

Biggest Loser I'd ever had but had I held that position right it would be over a seven figure winner um but because I was early I was wrong and being early is being wrong and and I didn't know that that $5 doll gap down doesn't then turn down into a $10 move and a half million dollar loss that I really couldn't have afforded to lose and mentally that would have just destroyed me uh but I cut the loss I learn from it being early is still being wrong and I want to focus on things going

up getting tight that's how we limit risk that's the train stopping at the station and I want to buy it as the train is departing the station but I want to know that many other trains are also departing the station and that we were going to know through scanning and that's why scanning is so important like I said not level two not none of that crap because had you bought on November 1 you could have bought like I said a shoe company you could have bought a semiconductor you could have bought a data center name

you could have bought Netflix and chill you could have bought so many different sectors right so many different parts of the market but because the market was no longer going down you're not fighting the major trend of the market and you had waited till the market had given you a follow through day and I implore everybody right study um you can go back and study what the spy and the cues looked like next to AMD AET um Netflix Uber right and just even though and deck right those four or five names and look at how

they acted going into that follow-through day for November 1 and see how they acted and and again most recently when the market had that big wash out bottom and things started to turn up right you had all of these um energy names turn right back up your VST your ceg your gev they were already hanging out near highs even though they they got beat up just like the rest but similarly home builders you know home builders right hanging out right near alltime highs when the market started to bottom you know it had that big wash

out and home builders are so home builders aren't going down when the Market's getting crushed what's the what are they going to do when the market starts to go back up so it just becomes a can I time them because I can find a tight entry also am I sized into them properly so I can hang on to the full Trend and then finally are you playing something proper for the size of your portfolio if you've got a $50,000 account and you want to play you know Google and KB Homes and Toll Brothers you're going

to drive yourself crazy with how slow they are your portfolio is never going to grow so you you know when you have a smaller portfolio you have to play things that are a little bit faster you know you have to catch that wolf that goes from you know or iron or you know wolf that goes from two to four or whatever the hell went to it doubled from four to eight or whatever it was I think it was four to eight um and that's kind of what you need to catch if you have a smaller

port folio once you get a bigger portfolio it's liquidity you know and and position sizing and patience and moving averages and just timing your buys with the market and never looking at a stock below moving averages and saying it's gotten too cheap you have no clue right and all you have to do is look at sge to realize you have no clue for the record I had a $313 uh short on sge with 3,000 shares and I choked it uh I covered it for a loss [Music] w at least I mean you at least you

make at least you're admitting you make mistakes I love that oh dude it's terrible I even um I had 3500 shares of Lily at um uh I want to say it was 311 bucks if I'm not mistaken uh I'll tell you right now exactly where I had Lily oh man this one just kills me to look at okay I had Lily um yeah 311 bucks so I thought this was really tight right in here and I was buying it just as it was getting back over the 50 day the very next day I caught a

gap up it was literally a six fig Gap up so I sold the entire thing I felt like a genius you know because it came back the next day and then it just grinded higher and in here I felt like a dummy when it pulled back I was like and by the way part of the thing was it was like too slow and too choppy in here and this was part of the reason that I left it alone I was just like it's too choppy I don't want to deal with it any more and uh

obviously hindsight's 2020 when you own it way down here and and you know now it's tripled uh from where you owned it and I could go on and on with the thousands of stocks that have done that to me uh so it doesn't really matter but I think the important part is don't be early you know don't get crazy on your position sizing learn to scan the market if you're a new Trader you have to be super patient with yourself I mean I make so many mistakes still I I want to say my hit rate's

probably like 30% but the thing is is the winners that I do end up having you know I could have 30 losses 40 losses in a row because of the one win that I had on Nvidia earlier this year right I've had some good shorts as well I I don't really count them like great trades like I had a short on Mara the day the Bitcoin ETF got approved and Mara got absolutely destroyed smci had a nice short on it but the problem was is I gave back half my gains twice on it and that

hurt really bad um so I kind of just left it alone after that because I gave back half the gains twice and I was like I thought I nailed it you know and sure enough like the nailed it didn't really happen until 800 it's when it you know started to like break down for real and at that point you're just like I don't want to get it so there's always another trade and I think you know it's really important for Traders to recognize that be super patient with yourself to get highly proficient at scanning the

market you know maybe like myself or you know guys like you'll see kbagi or like a guy like I gave mad respect to minini um you know just being patient with yourself in scanning the market you have to try and figure out where's money going where's money leaving and I'm always trying to buy things with the market Direction at my back whether I'm longing or shorting and I'm happy to be doing both at the same time right I've got a bunch of Longs open um and today I thought was going to be a nice mean

reversion trade on paler it was but of course it just faded too much right off the open and and I never could you know how do you deal with that I got I got to flip this on you how do you deal with that how do you add more size like you well the the person to look at so n Nate traded P Palante really well today did he he did yeah like really well like he like and I mean like his style is really set up to like capture those days like when you've got

a clear Trend like he doesn't like he just doesn't hold back and he's not always waiting for a bounce because he knows I guess it's tough because you just know the best ones aren't going to bounce so I mean it's I know I can't say I'm not gonna say it's easy or anything like that but no because it was killer reference I saw I saw that little push into the 38s and I like wanted to risk off yesterday's highs right into pre-market I was hoping that that would happen at Market open and then right at

Market open I'm watching the tape and this thing is violent I mean it traded five million shares in the first five minute candle and I'm like you know what the hell you know like I I felt like I was chasing it that entire FIV minute handle down and it was fine it still a fine trade but yeah I understand where when when when it's finally gotten extended on that daily and you know just that the day is just going to be a full just one day unwind or one day and a maybe tomorrow and then

one little quick morning wash out you'd be looking to cover or something but yeah that one's so tough man I I always struggle because I prefer is if something like that opens it gives you a little morning wash out comes back and retest that pre-market level during the day you know like I don't know 30 minutes into the open and then gives you that flush after you know 30 minutes or one hour into the open you know just gives you that fake for 30 and then unwinds but of course it didn't it just Unwound very

I always think that then there's always those occasions where like you know I'm under siiz and I'm like I'll just wait for it to pop and it and I just need to remind myself whenever that's my mentality the Pop's just probably not happening I I and it's like a difficult it's like I'm still having to work on it all the time the pop happens when you shorted it with plenty yeah exactly exactly because but then on that note like I think it's almost like the psychology of like everyone then has got the size they want

so it's G to pop whereas the you have the obviously the exact opposite no one's been able to get short yeah no one's been able to sell it all of a sudden you get that violent candle and it doesn't pop and then all of a sudden everyone's just got to panic out on the bids and then that's when I mean it's it's so easy in was it hi highight 2020 I love that funny and and that's how I felt today I took another one in uh okay so I played I played the uh cdale short

report on Lumen really really well uh the day that it was dropped like I was already in from the day before and then the day like somehow they show up on the day that you know I'm already short from the day before and drop that that's that happens and so that was super nice and remember I saw Nate mention it on Twitter too because it had like the wash out all the way sub five and I tried I've tried two other times to short it on the pop and it just has stopped me out every

single time and today I Resh shorted it again and a friend of mine he shorted it as well and he's just like uh um he's just like I'm gonna add some more on on the vshape recovery I said dude this thing has grinded all the way back from $4.50 all the way back to 750 I said shorts are done with this thing mentally they're probably so fatigued I'm so fatigued of this thing everybody's got to be fatigued of this thing I said these are the ones that don't bounce right I was like it grinded every

short every time you thought it was gonna come down and have two three days like in a row it would have that one red day and then the next day it's a green day and then it's higher the next day and then you'd short it first red day again and then it one day down and then back up higher and it's very frustrating I think it probably frustrated everybody for about the last two and a half weeks today you get this move up to 750 and you know I started shorting as I was coming back

through vwp like 740s and my friend was like I want to add some on the pop and I was like see you say that because you've now seen it pop every single time for the last three weeks I said one of these times it's not gonna pop and you're not gonna have the size you want on it I was like so that is the beauty of trading it becomes a real Catch 22 but again when you're swing trading I always tell myself you know 10% % of my portfolio if it's a small cap you know

sometimes 5% because it's just hard to buy a $4 I think I think that's another key lesson as well like because I I think like like you said like the the Lily example you do have to ride a bit of a storm and I think if you see your if you suddenly see like record p&l go from like whatever to nothing to back to record to nothing very emotional that's exha I mean that's exhausting just saying it to be honest like I'm I'd be like whoa every time I'd be like oh record zero oh scratch

out and then it goes to and then you know I don't know I'd be all over the place to be honest if I was I think that's the that's why the you know having only 10 or 15% of your portfolio and something is so important because hypothetical if you have this million dollar account and you put a 100 Grand into Nvidia when it broke out at 500 right I mean there's not you you can't even really buy many shares 200 shares right at 200 maybe because it's Nvidia and it's the market leader you know maybe

you get yourself to 20% and maybe you have 400 shares right of of this stock right it's like even if it moves a hundred bucks from you know five to six to seven I mean even if it goes 200 bucks you know 80,000 to a million dollar account it's you know it's not the most insane amount of money right I know guys who day trade with a million and make 880,000 that's in a day or two right so you know make an 80 but but being able to sit in a 200 Point move right being

able to then say I own Nvidia and it's well Bel you know it's well above the 50-day moving average right this company has and by the way the key here is institutions move stocks right they want to get paid too these things have to move right they have to move for a while and they build positions for a while and I've never caught um like a ANF going from 35 to 200 but I'd like to right I once owned I told you Nvidia at 167 and I sold it at 23 you know I I thought

that it moved too much and then to see it where it's at now it's basically where I bought it but it times 10 split you know at the time I had like and at the time I had you know 3,000 shares Part of Me Goes man had I just pyramided into it right had you just bought your 3,000 and then it had another flat base at 243 I remember it perfectly then it had another setup at 500 and then it had another setup recently it's like you you pyramid into something like that it never breaks

below the 200 and it's the market leader you know that's how you end up in a 10 15 remember talking about that when you get like setups on top of setups and then you're already in you've had no reason to exit and then you get another setup and then hey just buy more because you're because this new setup still has a low of day stop Bel low low of yeah risk is still tight yeah right your risk on the new shares is so tight and here's the thing like you could treat it as a whole

brand new setup and buy a whole new lot of shares or you can size down a little bit um because you already know you own some from lower but honestly if it sets up again cleanly you could buy the whole thing again as a whole new position because your other Shares are still being trailed on the 50 but now the Stock's gotten really tight on the 102050 again and you know maybe you're not even using the 50 anymore because it's gotten so tight you're using like a lower pivot on The Daily which is still well

below like it would have to break the 50 and almost go down to the 200 just to get down to that pivot yeah and part of you goes I'm still holding it from there so it doesn't even matter and that is the beauty of Swing trading um and you know I've been in a swing trade where it's been lasted over a year and the benefits on the tax side are also really nice too um which you know can't be understated you know some people may not think it's a big deal but you know once you

do start swinging with bigger money uh it certainly is a big deal so and I've only ever held game for a year um and you know hopefully many more to come but I think it's more so Market environment than you know it is the individual name if you're in a roaring bull market you know like I said you're not a g like if you started around my time 2020 and 2021 dude I used to like literally do nothing to make money I used to just trade sympathy place gme was going I'd buy AMC or uh

exp or cost right when when tat was going I was just hammering away on dlpn um when mosy was going I was just hammering away on WIA or LEDs right and and it was just the exact same and and the psychology was in I'm just smiling at your recall like I haven't heard tat and dpln I remember trading those but I haven't like I don't remember anyone me in those in in quite some time well that that's and and honestly sympathy plays was the easiest way like I remember my first sixf fig trade with sunw

and it was the day that SPI went from a dollar to 46 and if you were there for SPI that day you were like what the hell just happened but we're actually like this is it happened around this time yep and the 23rd of September I think SPI happens and I remember I'm on finis and I'm like okay SPI okay solar all right they started like at about a buck and so I found sunw and all of a sudden I'm seeing that there's like you know there's like some steady little bit of buying in here

but it was like at 83 cents when I noticed it and by the time I was done filling in like I had a $1 average and same intraday it went to four bucks um and so yes it wasn't a 4600 per move like SPI but it was a very very predictable upcoming move and it was the same thing like with um and this is actually why I got you know kicked off a thinker swim um initially is because I was doing such massive Market orders I remember when AMC was running I was just Market ordering

you know um costs as much as I could and you know some guys know this some guys don't but like there are certain brokerages they offer what's called midpoint fills and so I was getting like these right Market orders right between the bid and the ask but the ask isn't moving so I'm just like literally getting filled 2,000 shares at a time on cost 2,000 2,000 2,000 all of a sudden I'm like 25 30,000 shares in and then all of a sudden I'm like all right AMC still flying and now I'm I'm like all right

I'm now willing to buy cost up higher so now I'm hitting the ask and I'm prices not starting to move and people start filling in the bid people start filling in the bid side and I'm like already slamming out but you're getting like these 5071 moves you know in a minute 2 minutes and I'm 30,000 shares in and all of a sudden like 60 seconds I made 25 30,000 then the thing would flush out because you got a bunch of Market cells and you know AMC's getting Wicked right back up and so you're marketing right

back in or you're limiting right back in and it was such a show 2020 and 2021 like it really involved no true skill where once 2022 happened and I transitioned to swing trading and small caps were really dead obviously iwm got absolutely pulverized small caps you know went to hell that's when carvana you know spent the year downtrending plus and you know that's when your sunw went from they they broke out and they became great charts and sunw at one point was at 28 bucks that that'll tell you and it came all the way back

and they don't even trade anymore if I'm not mistaken so that just goes to show you how far we've really come within the market cycle but that's really like the market you know you have to focus in on leading groups and if you do that leading groups leading sectors good earnings in sales charts that are super tight not extended from the 50 and if there's one piece of advice that I would reiterate it's um take a percent of from the 50-day SMA and draw it up to current price where it's nice and tight and if

a stock moves 3% per day but it's more than 12% above the 50 you know it's four times its average sh range above the 50 think twice about buying something like that you look at something like Nvidia today where it's only 1% % literally 86% at yesterday's close from the 50 right if you're wrong you're risking a close of that 50 1% I must mean I love I do love how I do love the system that you've come up with in terms of like and like I said before like I can see the experience the

passion that everything's gone into it but actually how you're able to it's it's not it's like it's not that difficult though to like to like talk to me about it and I think that's what's great and I think I'm sure that's like encouraging for everyone is that like you've made that transition from you know trading those names in 20 and 21 and then now you know it's you know sounds like you've had some insane trades and I think that's again again with like swing trading like you know with short bear talking about um smci yeah

in selling him some of his he's like he tweeted that he sold some of his portfolio today and it's like it's cuz he selling into you know you again you what do we talk about when we when I mentioned Baba right it's like you look at Baba and and again smartly so that's not to say that it cannot go higher and I'm sure the short bear doesn't think that his positions cannot go higher otherwise he would have sold it all but when you look at Price compared to the 50-day it's almost the most extended we've

been in like a year right but just from its own from its own perspective where it's currently at to the 50-day it's very far away right like Nvidia again 4% from its 50-day you know Baba 20% away from its 50-day right Nvidia is still tight to its 50-day Baba not so much so the short bear selling some into strength is the right thing to do and then I and I've seen him do the exact opposite when everybody's very fearful you know he's looking for you know maybe undercut and rally setups he's looking for a red

to Green move he's looking for something to help initiate his position so he's just not staring at big red right off the start you know he's trying to build and and one of the things too with like pyramiding or or even when you're day trading I would much rather average up than I would average down average down means you're wrong and you're adding while you're wrong averaging up means you're seeing it well and you're adding to your winner so that even if you end up being wrong and it could still end up being a flat

trade but if you're wrong already on your initials and then you add a little bit more because they're just your initials and your starter and then you add a little bit more but you're still wrong and then your your second ads don't start to turn up right away adding a third and a fourth time lower and lower effectively leaves it impossible for you to just get back to break even yeah yeah yeah completely and that's exactly the same like day trading like it's you just you just all you do is end up with an oversized

position and trying to get back to break even yeah yeah you're you're relieved actually if you get back like it's almost like a relief actually if you get back to break and and and just the opposite is is what happens when you're oversizing a position that's already working for you you're only beaten up if it comes back to your average and you take a flat trade because you were just looking at an absolute monster well that's yeah you put yourself in a position for that monster for for an emotional beat up but not a not

a a financial one yeah yeah yeah try to get one of the two not both get none obviously but like if you're going to have one um maybe the emotional might be better than the final I looked at it at the end of the day and when I was day trading if I was at zero it wasn't a big deal like if you made no money it wasn't a big deal but you had to like even be down you know three grand five grand 10 grand whatever it was like that sucked right like it sucked

and I and I would rather just give back 10,000 like and go to zero than to like literally be red 10K like nobody actually wants to lose 10K but I'm happy to give back the 10K that I was up like you don't want to do it too many times you want to figure out a system and you're locking in some kind when you have some gains like that but the reality is if you've got um you know 10,000 in open gains you didn't just you shouldn't have just gotten that right off of your first button

click I probably would have pyramided myself into a position where you've now added and you were right you've added some more and you were proven right and you added some more and you're more right again and you're averaging up into a winner versus averaging down into a loser I've never ever ever done well averaging down into a loser because you're not reading the market right some like if it's going down it's because institutions aren't buying it Point Blank period unless you're playing small caps but if you're playing like companies that make money and in a

real theme like semiconductor or AI data center or you know this energy you know the cegs and the GVS if they're going down it's because institutions aren't buying them but if it's going up and you're just continuously adding to something that's working you're seeing it well you're on the side of what the big boys are doing so yeah you know I think that's the key I think to be honest like this conversation like it's like a light bulb has like with your help obviously like a light bulb has like a you know switch is flick

like it it does it's just started actually to make so much more sense and I can only like thank you I only thank you for that and like like you said like being on the right side of Institutions like things like that like it just begins to make sense okay like what would they be doing right okay well then if they if if they think it's going higher they're obviously not going to be selling they're not scalping the move out today yeah right and you could look at Tesla like two days ago so this would

have been on Friday Tesla I bought it over 234 bucks had a nice little pivot 234 and then Monday yesterday it flushes and it kind of gets close to my average but it doesn't get close it doesn't get close enough or gets close enough to low day but then what does it do today it turns right back around and it's out towards new highs and so I think or or excuse me this would have been uh Thursday it took off Friday it pulled back Monday and then today it had uh two good days so Friday

last week you know if if you had maybe oversized too much or um you get a little too impatient you're not using your moving averages or you're not using your proper stop then you shake yourself out of Tesla and I know guys who did right they bought it with me on Thursday you know we're in the Discord and and then on Friday they're like I stopped out a Tesla I was like why why like draw a horizontal line price never even got back to that horizontal line which I know is the place that a lot

of people like to buy and the the psychology is very simple right if you have an area of resistance that breaks and you have short sellers at that area of resistance once it retraces back to that level shorts are like well I just got blessed let me get out for break even and then that's what ends up happening sool no know it makes yeah it does make so much more sense and thank you probably go on for days I was GNA say like I I mean I'm only stopping because it's 1: a.m here um quick

last last one La last little quick comment and and this is true you know like we were talking about initiating a position when whatever side of the position you're taking uh momentum's on your side it's like when you short how much easier of a time do you have it when you short a red candle and then you're instantly green versus trying to Short into that move higher that like you're like okay is it going to reject yesterday's highs is it going to and like you're like all right I'm gonna get in just a couple cents

before because I still think it can go higher but let me get in a couple cents before I've done that too and it's like and you end up being right it ends up going to yesterday's high to reject but you got yourself in a few cents lower you know just kind of anticipating that rejection um but you're staring at Red first versus like yeah and I always think like if you think of like like when Lance talks about the right side of the V like by definition like if you're buying if you want to be

on the right side of the V like you typically should be buying probably a red candle and conversely if you're selling I mean obviously there's going to be like pullbacks within that but like if anything other than that you are always think like if you're if something's going higher higher higher and you're looking to get short that's it's you're just not going to be right because it's just it's just going against you against you so yeah it's like and so I would almost rather short the red candle right then then and and same thing's true

with the daily right like I don't want to short something as it's and a green candle on a daily I'd rather wait for the first red day right or I don't wna I don't want to short something on it on the first Green Day in which it's breaking out of something you know of some I think that's what's powerful about your like the system that you've talked about tonight is that like take smci for example ex like it's very easy like what did it top out it went to like what 1200 and change and my

best average was at 1076 on it yeah on a bunch of shares dude at one point it was a humongous position but you think like there's like a lot of these what you're talking about though is that there's like opportunities again and same like Nvidia like take buying Nvidia today like you could easily think oh I missed the buyer 100 say and it's like 20 bucks away now I can't do it but then when you start talking about it's just above it's a percent above the 50-day moving like average super tight so's lows you're risking

2.86% we're literally talking about peanuts here even if you had a 100% even if you had 50% of your portfolio in there which you should never do into any one stock but if you did right even if you were 100% into Nvidia first of all it'd be the stock to do it with but you'd have less than 3% risk on the whole thing like if you had a million dollars and you put it all Nvidia you'd be risking less than 30k what for the potential for it to go 40 50 60 70 80 bucks yeah

yeah right it's like so that's the thing and and the thing here is is we don't have all our money on Nvidia so if it's gonna EB and flow if it's GNA chop around if it's gonna do this and that it doesn't matter right I understand if you want to get up to 20% of your portfolio in Nvidia because it moves a little bit slower I get that right if something's too slow you got to allocate a little bit more money if some things really fast you don't need as much money right like if something

moves 20% a day like you know and something's going to go from you know four to five bucks right you don't need you know 10% of a m you don't need a hundred grand in there to do really well yeah makes right so I think that that's the key is position sizing is so important it helps you stay in that trade and then SC you know scanning I mean we talked about it you if you don't understand what's where institutions are putting money and where they're taking it out of but the beauty is when you

are just looking at Daily and hourly candlesticks they take a long time to finish and develop everybody thinks that you have to be in some R like when you're day trading fighting for your average matters because you're putting on big size and every 10 cents matters when you've got 10,000 shares right but when you've only got a thousand shares it you don't care about those 10 cents right you just want to know that you've got the the trend in your favor the direction the bigger Trend in your favor and if it's not then your stop

is really small because you're looking at tight daily candlesticks it's like even like app a it gave a perfect setup and then the thing went 40% in like a week you know and I mean anybody who understands a good set and this is probably the one that I would be kicking myself the most right if you bought this thing you know on 911 right and you look it app right you had a big move up you had a big move sideways here was a good entry for earnings right so you had this uh 215 earnings

Gap up or again right in here look at how absolutely tight it got in here right it had a a wash out held the 50 then you had an inside day and another inside day so you're basically saying to yourself anything over you know 8830 you know you're long basically and here's your entry on 9911 and this thing basically goes from 88 to $130 I mean that is just absolutely absurd right and that is the power of what swing trading can do instead of every single day looking for an entry every single day trying to

come up with a clever idea of how to make money get a really a strong chart that's already been in an uptrend let it build a base let it consolidate let it be in the right sector you look at AP and you say to yourself oh well what sector AP and app Lov and software and then you can start to say to yourself well what other stocks are in the software sector if I'm not mistaken now is a software name paler is a software name and what's paler been doing what's now been doing these names

have been making new highs New 52 week Highs at that so you don't really even have to think too hard and then all of a sudden day one this thing goes from 88 to 96 it's up 10% in a day 10% plus you're in the driver's seat by the time you get up 20% sell half the position let the rest work now this thing's up like you know 45% in two weeks that yeah and like you said it there like and I think that's to be honest that's a perfect note to end it on like

that is the power of Swing trading in terms of like this and I always think like with like names like this as well like you aren't at risk of an offering overnight or no a 50% h America or you know whatever it is that you it's not some biotech with PFA dates it's not some name that's about to do some you know convertible debt offering it's not some stock that you know is a $4 stock to begin with right it's not it's a it's a $80 stock it's been in an uptrend for the last year

it's in one of the best groups in the market it's at 52- we highs while the market has just been undergoing an ugly correction I mean it damn near had every going for had two double inside days I mean you know TI both you you really you really couldn't limit your risk upon your entry any tighter you know it's literally a double inside day you buy over the prior day's high and your stop is the low of the day or even the low of the prior day as long as you're size properly and you know

what the low of the prior day is size into it right and all of a sudden you know you might be out of half your position and everybody's and I know people and myself too I used to say to myself oh I one time bought the name at 80 I don't want to buy it again at you know or I one time bought the name at 50 I don't want to buy it again at 80 because I did I once owned app in the 50s right and and then you know I eventually got stopped out

of it and then it reset up again at 88 and some people will say oh I used to own it in the 50s I don't want to buy it anymore it's gotten too expensive too expensive or too cheap are like famous last words of people who have no idea what they're doing right look for tight tight is how you limit risk if it's in a top 40 group it's in a top 40 group because institutions have bought those names so that they can be in top 40 groups yeah so if they're in top 40 groups

means they're being bought by institutions right they're not solar names right they're the far from Top 40 it's like group number 197 right so that's literally the last group you want to own but anything in the top 40 anything that's tight anything that's already in an uptrend anything that is at the train station right I don't want to hop on the train up here like everybody's like oh my God I missed app like and they're trying to like look at app to buy it right and I'm like looking at app like this is gonna make

a good short soon right so it's like the mentality is totally different I'm all about a when things are tight and when things start to get a little ridiculous like this I start to think the other side if I'm not already long if I'm already long you know and you're trimmed you're sitting there saying to yourself hey you know $108 is my current stock which is the 20 day and if you're in at 88 and you got a $20 cushion on it and you've trimmed who cares so and that really is the power of Swing

trading and there's been so many great examples like AP right we just talked about gev um it had a really nice setup and and that's up a a ton um ceg same group and you look at VST same group and look at all of them they're all out to new all-time highs um and so it's very important that you focus on the group group group group and then things that are tight good earnings and sales and then buying things as the market is in your direction whether you're short you want distribution if you're long you

want a nice follow through day and then ideally you're buying stocks after the market has undergone a correction right not like when the Market's up for a month and a half straight market up for a month and a half straight I could care less about relative strength everything should be damn strong if the market yeah good point yeah but when something starts to be weak and you're scanning like I noticed Visa right I don't necessarily want to trade Visa because it's super slow but the market's at all-time highs and Visa just had this nasty down

day right where it's like this thing just has a one ugly distribution day has massive volume on whatever day this is 227 which was I believe uh uh options expiration and rebalancing and so you got massive volume on that day and then you've got this huge gap and follow through right I don't necessarily want a short Visa because it's such a slow name but I know that Visa Mastercard you know I don't know if it'll start to trickle down into like a firm right but anything you do with like payments or collecting payments I would

assume it's probably hands off for right now until this thing because this is just too much volatility right you have this the stairs up and elevator down and and now you need that that elevator down to find a bid find some support against Rising moving averages tighten back up that's not saying that Visa is done going higher because I guarantee you in five years it's probably much higher than it is right now but if I want to hop on board I need that volatility to subside a little bit but right now the trend on a

smaller time frame is down and so I would say to myself hey if I wanted to hop aboard to short I would need it to go sideways and then because the most recent trend is down I wait for that sideways and usually you'll get like rejections on a hourly time frame or even if it pops back up on the daily it'll bump into a declining 20 and reject and and then it'll build another little range and then if it breaks to the downside you short it and you know that literally how I play it what's

the most recent move if recent move is up then we wait for some sideways to hop aboard um the bigger the base the better the move and D we could probably go on all I was gonna say I'm fully you have converted me and um I mean I'd love I mean this is just we'll chat again off of camera brother say we'll chat off camera and I definitely think we should do uh I mean it sounds like in six months or so a part two would be good and I just think there's so many nuggets

for like the way you're like like talking about names as well like you've just given so many nuggets for people to go and back test and be like okay what does it what does it need to look like and things like you know like if I just like if I what I want to do now tight is right I'm G to write that down like in a sticky and put it on my monitor little things like that like the cues like for like T is right I love it so I mean thank you so much

for your time it's been truly ening and and even for yourself and even for yourself go back to early 22 and study the setup on all of those energy names from oxy to dvn to Fang like from Exxon Mobile to Chevron like just go through them Name by name and look at the setup leading into January 1st of 22 and then also go back to this L latest period in October when the market was undergoing its correction and then look at those names that showed the best relative strength right AMD AET deck um Uber right

and and just look at those four or five names and how they acted leading up to and right around the market follow-through day of November 1st and the market bottom of October 27th and just kind of look at those names look at how they acted and then also go back to the oil and look at how all those charts looked and it could really paint you a good picture of how institutions are literally giving you the exact same chart across multiple names that's not by surprise right or that's not totally random and then you know

the other side of that is um you know look at what leading groups cyber security or leading stocks do before the market finally bottoms and then once the market bottoms how do they act right and like I said it doesn't matter if it's shoe company or a semiconductor two totally different parts one's a technology company one's a fashion company um but they both go on to double right AMD goes on from uh 100 to 225 and deck goes from 500 to a thousand um and those are both really great to study um and even Uber

Uber doubles I mean pretty much anything doubled from October but if you got too late Side Little Nugget if you got too late into like because the market bottomed and followed through on November 1 if you thought okay the Market's finally in an uptrend mid December and you started to buy earnings Gap UPS mid December like estc or iot guess what you got stopped out because now the Market's already been going up for five and a half weeks and now you think it's time to start buying earnings Gap UPS the time to start buying earnings

Gap UPS is immediately after that follow-through day the initial one but now people wait for confirmation and you the month the market trends up a market trends higher for a month plus and then now all of a sudden you start buying these earnings Gap ups and they're failing on you and they're failing on you and they're failing on you and by the way that would also be your clue that hey you know new positions I need to start taking my foot off the pedal the last two three times that I bought an earnings Gap up

in a healthy Market the Market's been coming lower right and and then it wasn't until January when Nvidia got a hold and smci got a hold that like renewed fomo kind of kicked into the market right so November was good middle of December got a little tough it wasn't until the first few weeks of January when Nvidia took off that okay here wow look at this massive oversized move and and even at the time not too long behind it was the crypto names right mstr and coin went went on big moves too so and again

it just goes to show you it wasn't just coin alone right it was coin it was clean spark it was MST it was iron it was wolf it was Hut it was Kors there was dozens of names um some have what's the saying the feathers the birds of the feather flock together birds of the same feather flock together birds of the yeah I have to remember that birds are the same feather together yeah right they're identical and and it's and it's the psychology oh yeah makes it's perfect it makes so much sense it's a psychology

for sympathy plays right you see a bunch of stocks going from you know and it's the thing too like right Argentina's got this guy in there Malay and Argentina at first you know they've had this huge inflation problem blah blah blah all of a sudden they get Malay in there and it doesn't matter what Argentinian stock it is if you're Argentinian the stocks have been going up right and for a while it was like ypf and ggal they weren't even in the same sector but because they're from the same country right they were giving beautiful

setups right they'd give you the move higher they'd tighten up and then they kept going higher and higher and like GG doubled um and so you know sometimes it's just that recognition and a lot of times you might be scanning stocks and you might be like oh this is a financial name and this is a energy name they're why do they look so similar well it's because they're from the same country and institution we' seen a lot of see a lot of that with like particular like in my where I focus anyway small caps with

China names for example you'll see matter it doesn't matter that one is whatever and one is a in a totally they're just China and so China too fa I don't think the companies do what they say they do anyway so they're yeah exactly so and just just lastly then um obviously like I said I've absolutely love this conversation if people want to ask you questions and something where's I guess the best is Twitter like so what's your Twitter or or is that the best yeah uh I'm on Twitter real simple Ariel um and if anybody

it's I used to be in IU I've been meaning to make a little comeback because I love the guys in IU I actually know tons of them so just to have it we'll get that we'll get that sorted for you yeah just to chitchat I would love to just be an I but um so that would hopefully be a really good place for guys to catch me in the future would be in that room um uh and then if any guys are on Discord um any anybody's welcome to join that Discord the only thing you

have to do is donate to charity and then you're welcome in that Discord so um that it's like the only that's that's actually the place that probably most people find me is in Discord so but uh well I'm gonna have to join so uh yeah thank you just got to shoot me a little message yeah know I will do and I appreciate I really appreciate your time and like I said like this was like 100% the conversation that like I needed and like I selfish like was like I've just got to get you on and

um you haven't disappointed at all I've absolutely loved it and like I said it's just I have to watch it back but like oh like it it just makes so much more sense so thank you for your time and um yeah we got to do this again soon thank you sir thank you man sorry for keeping you up so late no oh for you anytime thank you man thank you for tuning in to this latest episode of trading takes don't forget to hit the like and the Subscribe button and if you enjoyed this conversation please

check out some of others with some great Traders thank you for watching