2020 Had Taught Me These... Day Trading, Penny Stock Trading — Transcript

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1. 0:00hello guys steven dux here welcome to
2. 0:02this video today
3. 0:03i will be reviewing of the mistakes and
4. 0:06some of the biggest losses i made in
5. 0:072020
6. 0:08and this is something that i regularly
7. 0:10do uh yearly so i will be able to
8. 0:12identify
9. 0:13which one is avoidable losses which one
10. 0:16is unavoidable
11. 0:17this is a very important step for me to
12. 0:19become a consistent profitable trader
13. 0:21so i think it's also important to you as
14. 0:24well
15. 0:24and before i start this video make sure
16. 0:26to click the like button and subscribe
17. 0:28and let's get into the video so the
18. 0:30overall process will be split in three
19. 0:32different parts
20. 0:33the first part will be of the losses and
21. 0:35mistakes you made
22. 0:36second part will be all of the
23. 0:38consistent winning trades
24. 0:39that you made throughout the year the
25. 0:42third part which is the most important
26. 0:44part for beginners is you want to select
27. 0:47all the trades
28. 0:48that belong to scalping or small trades
29. 0:52you made about 500 or a thousand dollars
30. 0:54and these are considered to be small
31. 0:56trades for your account
32. 0:57now you want to identify them does these
33. 1:00small trades fit any type of pattern now
34. 1:03if it's not fitting any type of pattern
35. 1:05or some of the pattern you want to
36. 1:06potentially test
37. 1:08then those trades counts you are over
38. 1:12trading in this market so once you can
39. 1:14filter that out as a beginner then
40. 1:16it will be a very good step for you to
41. 1:19become a consistent profitable trader
42. 1:21in this video i will be go overing all
43. 1:24the mistakes that i made
44. 1:25some of the trades that stands out and
45. 1:29i'm very stubborn about and sizing way
46. 1:31too much
47. 1:32and also some of the biggest wins that i
48. 1:34made throughout the year so you can kind
49. 1:36of see that
50. 1:37how do i really react if i'm winning big
51. 1:39or i'm taking a huge losses
52. 1:41so in this way you can get used to the
53. 1:43mindset that you are winning
54. 1:45and also if you are losing you will be
55. 1:47able to find out okay this is
56. 1:49something that i did before i will try
57. 1:51to avoid it into the next time uh when
58. 1:54i'm trading in real time
59. 1:55so that'll be uh of the concept i'll
60. 1:58give you guys
61. 1:59let's get into uh the recaps all right
62. 2:01so there's going to be two tickers i
63. 2:03want to talk about
64. 2:04uh obon this one will be i'll say one of
65. 2:07the biggest mistakes that i made i
66. 2:09caught losses
67. 2:10way too late let's look at the yearly
68. 2:12chart this sticker
69. 2:13had over 200 minute resistance around
70. 2:16two to three dollars the major
71. 2:18consolidation area is between
72. 2:202.5 to 2.7 in that day
73. 2:23when i talk about shorting into
74. 2:26resistance
75. 2:27i always avoid stocks under three
76. 2:29dollars so on obln
77. 2:31it's stuck between two to three dollars
78. 2:33it's on the high twos
79. 2:34and the low 3 area so it barely
80. 2:38qualified the criteria
81. 2:39of shorting into resistance which i
82. 2:42still
83. 2:42sized in full amount risking
84. 2:46the 3 dollar area i think the stock
85. 2:48opened
86. 2:49over 3 opened around 3.4 it traded about
87. 2:53the 100 million
88. 2:54shares before 10 30. if you are trying
89. 2:57to estimate the entire day volume
90. 2:59if in the first hour already traded
91. 3:02about 100 million shares
92. 3:03it's definitely going to trade more
93. 3:04shares throughout the day and it's also
94. 3:06going to overwhelm
95. 3:07the 200 million resistance that was made
96. 3:10in december 7th in 2018 2019 we never
97. 3:15get
98. 3:15any resistance that is close to 200
99. 3:18million resistance
100. 3:19so i sized in about i would say 500 000
101. 3:23worth of positions i think i took around
102. 3:2615
103. 3:2720 losses so that's like a hundred
104. 3:29thousand one hundred fifty thousand
105. 3:30losses on this specific ticker
106. 3:33so in the future what i can improve on
107. 3:35is if the stock is trading over 100
108. 3:37million
109. 3:38shares before 10 30 and it's definitely
110. 3:41going to trade more than 200 million
111. 3:42shares
112. 3:43throughout the day and i will try to
113. 3:47size down because sometimes the stock
114. 3:49decides to
115. 3:50do a massive pull and actually
116. 3:52consolidate
117. 3:53around the resistance then drop so in
118. 3:55that case if the volume is too much
119. 3:58try to size down as much as possible i
120. 4:00would recommend 20 percent of your
121. 4:02regular size
122. 4:03for this type of shorting strategy so
123. 4:06for wnw
124. 4:08this is another massive wing that i did
125. 4:10i was
126. 4:11very patient on the sticker because
127. 4:13during that time there is a massive ipo
128. 4:16hype in that two months so
129. 4:19the stock did when very overextended
130. 4:21went from seven to 160
131. 4:23uh in three days let's look at the
132. 4:26intriguing chart
133. 4:27so we'll be able to tell where the entry
134. 4:29is and where
135. 4:30is the exit so first of all when the
136. 4:33stock is
137. 4:34spiking in the afternoon there's always
138. 4:36a really good chance that stock tends to
139. 4:38perform a massive morning spike
140. 4:40so for wmw because it is a very fresh
141. 4:43chart
142. 4:44and they attracted a lot more volume
143. 4:47after the open
144. 4:48the stock went from 50 to 160
145. 4:51pretty much in 30 minutes once it formed
146. 4:54the top it dropped another 50 percent
147. 4:56from the 160 so it dropped all the way
148. 4:58to 80
149. 5:00so in this case when people are buying
150. 5:02around 160 they're
151. 5:03down way too much so they want to sell
152. 5:05into some type of consolidations or
153. 5:07balances
154. 5:08and the consolidated about 2 million
155. 5:10shares around 100
156. 5:12so that's about 2 billion in terms of
157. 5:15dollar block
158. 5:16which i decided sizing around 120
159. 5:18covered around 102
160. 5:20then because of the borrow fee was way
161. 5:22too expensive to hold overnight assassin
162. 5:25again
163. 5:26into the next day morning average is
164. 5:28around 103 covered
165. 5:30on the low of the day close to 72.73
166. 5:34so that's the two trades that i made on
167. 5:35wnw
168. 5:37both of the trade i made over 20
169. 5:40from my original investment so i think
170. 5:42that's a
171. 5:43decent gain and also one thing to keep
172. 5:45in mind that a multi-day runner
173. 5:47tends to fade anywhere between 50 to 75
174. 5:51percent
175. 5:51now 80 percent of the multi-day runner
176. 5:54tends to only fade about 50 percent
177. 5:56now the rest of the 25 percent doesn't
178. 5:59really happen not often
179. 6:00so for wnw specifically
180. 6:04it covered when the stock faded around
181. 6:0650 percent
182. 6:07but in some cases that this type of
183. 6:10ticker tends to fade
184. 6:1275 which you can see that when it
185. 6:14dropped it to
186. 6:16the low 30s that's
187. 6:19in total about 75 of the entire game
188. 6:23oblan is one of the biggest losses that
189. 6:26i made in 2020 and also wnw
190. 6:28is one of the biggest game that i made
191. 6:30last year uh hopefully you guys can
192. 6:32learn something new about
193. 6:34my thought process on obon and wnw
194. 6:37overall i think the market is going into
195. 6:39a bigger volume sector
196. 6:40so what you have to do is go look at
197. 6:42your losses and to see what you can
198. 6:44improve on
199. 6:45and also look at your wins to make sure
200. 6:46that what you can do to
201. 6:48keep your consistency so that will be
202. 6:50all for this video thank you very much
203. 6:52for watching i will see you guys
204. 6:53in the next one
205. 7:03[Music]
206. 7:08you