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How to Make Money Buying Small Cap Breakouts (Full Guide) — Transcript

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0:00if it may help keep a couple shorts safe
0:02on some setups that they have been you
0:03know losing on then great this is the
0:05life cycle of these stocks they pump the
0:08stock they dump it goes all the way back
0:09to zero they do a reverse split so that
0:12they can stay compliant with NASDAQ and
0:13get back over a dollar just understand
0:15that you want to be playing more chess
0:17more chess and less
0:19[Music]
0:22Checkers hey everyone and welcome back
0:24to another episode of trading takes we
0:26have a special guest and a special
0:28episode today uh Roland wolf is going to
0:30be joining us to talk about all things
0:33small caps on the long side so Roland uh
0:36we've been wanting to get you on the
0:37show for a while you're a master at this
0:40kind of stuff and a lot of people I
0:41think struggle on the long side with
0:44small cap so welcome to the show and
0:46we're going to talk about a bunch of
0:47great things today so H how are you
0:49doing hey man thanks for having me uh
0:51you know we've never got to speak until
0:53literally right now and it's kind of
0:54always a unique experience like this but
0:56I as I was mentioned and I've watched
0:59any episode that on I always watch it
1:00and it's always uh a lot of great value
1:03and different guests that I've been
1:04learning from you know um kind of almost
1:06into a decade into my career but every
1:09single day I kind of step to the markets
1:11and and hopefully learn something and
1:13it's cool you know watching programs
1:15like yours at the moment where you're
1:17kind of diving into some other stuff and
1:19it's not quite so surface level you know
1:21so it's kind of cool and uh yeah thanks
1:24for having me on you
1:26know absolutely and I appreciate you
1:28saying that and that's what really what
1:29we're trying to do we want people to be
1:31able to to watch these episodes to learn
1:33from people who do this for a living who
1:35are professionals and to be able to
1:36apply that to their own trading so uh
1:39that's all what we're going to do in
1:40today's episode so just as kind of a you
1:43know to to get us going this episode is
1:46a solution to a problem and the problem
1:49is this a lot of people they try to
1:51trade small caps on the long side and it
1:53goes something like this they'll look at
1:55the large percent G gainers on the day
1:57they'll uh find something that's running
1:59has a lot of volume they'll go to buy a
2:01breakout on it the breakout immediately
2:03fails they don't really have a risk
2:04level underneath it they'll stop out for
2:06a big loss and then they do that time
2:08after time they get super frustrated the
2:10account's going down and that is the
2:13problem with going long on small caps
2:15the way that a lot of people do it so
2:17what we're trying to do is basically
2:19show the solution to that of how to
2:21actually go long small caps properly and
2:24you have made you know you're a seven
2:26figure Trader you've done very very well
2:28doing exactly that going Along on small
2:30caps you've taught other people how to
2:32do that so to just kind of kick things
2:35off for us you know what is the mindset
2:37going into this because you are you
2:40describe yourself as like a short biased
2:42long Trader and so you know that these
2:44companies are crap you know that they're
2:45just vehicles that are trying to raise
2:47money you know that they use news to do
2:49that so what is the mindset that you
2:51have to be able to go along small caps
2:53and do it
2:54successfully yeah so first off I guess
2:57you kind of have to understand that uh
3:00the way I went about the game of small
3:02cap well from a mathematical standpoint
3:04obviously massive percent gainers right
3:07um and you know like we've got something
3:09up you know I don't know how many
3:11thousands of percent today um they're
3:13outliers obviously your chsn but um but
3:17at the same time I saw that and I always
3:19said you know okay so there's and every
3:21single day you know there'll probably be
3:23especially in a hot market like we have
3:25this year you have three to 500 you know
3:28150% Runners at the moment
3:30um but at the time all the traders that
3:33I really looked up to were short sellers
3:36you know almost almost exclusively and
3:38in fact there wasn't anyone really
3:40saying that you could make money long in
3:43short cap in small cap um due to all
3:46everything that you just said they're
3:47really really scammy you know and you
3:50get into it and you know you think
3:52you're going to trade breakouts and
3:53someone tells you to trade breakouts or
3:56uh whatever else we're wired to trade
3:58that stuff like all that that situation
4:00that you mentioned where you come in and
4:01it goes through high day and you buy it
4:03and then it gets slammed and you're
4:04taking a big loss and you're really
4:05frustrated that's how we're wired you
4:07know it totally makes sense that's
4:09that's the first my in my initial and
4:11that's only because everyone I know is
4:13like that but myself like when I got in
4:15dude I could not wait till it got
4:17through high day I could not wait and
4:19you know what there was no trade until
4:21then you know for me I was like that's
4:23the moment where you know what it's
4:25going to break out of this and just keep
4:27going up and um I didn't have I had no
4:30you know semblance of risk reward but at
4:32the end of the day I didn't know what I
4:34was trading you know what I mean I had
4:36no clue what the big picture was uh so
4:39yeah small Cap's really a scam people
4:41say that all the time oh it's a scam
4:43that's why I don't trade it but actually
4:45I have found that because it's a scam
4:48it's more tradable than anything that's
4:49what that's what I think I think once
4:51you understand what is happening if you
4:54can stay out of the way of the scam and
4:56you can actually profit from the scam to
4:57the long side that's that's that's how I
5:00feel I call it kind of the life cycle of
5:01these stocks they're only tradeable a
5:03few times a year for the most part uh
5:05any ticker
5:07and uh so so that's really what that
5:10comes down to but we're I think we're
5:12kind of getting away from what um from
5:14what the question was sorry you might
5:15have to edit this but what what was the
5:17question here yeah it was basically just
5:19what's the mindset you know going into
5:21trading small caps yep no so we're we're
5:23still on track cool uh mindset the
5:26mindset is is that of what you said
5:28earlier so you know at the time it was
5:30Tim gratani man when I was really
5:32getting into the game so my initial goal
5:35because I didn't have that much Capital
5:36uh and and I realize you know what I
5:38can't be at any of the short Brokers you
5:40know the specialty short Brokers not
5:42going to get shares to short and then by
5:44the time these things are shortable uh
5:46hopefully they're extended and they
5:48higher price and stuff like that I can't
5:49afford to short anything really at the
5:51moment um nor did I you know was I great
5:55at trading so uh I but I looked up to
5:57people like Tim grani so my goal was was
6:00to at some point I realized holy crap
6:03well where I'm buying cuz I breakout
6:05stopped working well didn't really work
6:07for me like the high of day breaks um
6:10but I saw you know near these highs
6:12where I got really excited to buy is
6:14where all the best short sellers were
6:16you know in including Tim grani into
6:18resistance into multi-day resistance
6:19where I'm looking for a breakout he's
6:21like a shark just waiting for it to fail
6:23so that he can destroy it or even into
6:24that resistance you know Gap UPS into
6:26those levels um so I realized holy crap
6:30I gota realiz like if I want to be long
6:33I also have to sell here right because
6:35this guy's doing so well and uh not just
6:38him but all the good short Sellers and
6:40then along the way with that I actually
6:42learned what small cap was right which
6:45are a bunch of really terrible companies
6:48uh that need money but they have bad
6:52earnings so they're price is not going
6:54to go up and they get really really bad
6:56loans essentially I mean that's really
6:58what it comes down to is that they need
7:00cash and the only way to get cash is to
7:01dump shares onto us so that so it's it's
7:04kind of a conflict of interest because
7:06they're putting out a PR and if you look
7:08at every single one and and I felt
7:10prayed to this for a long time where
7:12they put out the pr and I would fall in
7:14love with the stock too like not not
7:17forever but right then and there I'd be
7:18like oh my God that's amazing you know
7:20what I mean I would get so excited I'd
7:22be like they cared what like oh they
7:24just need six you know one more year and
7:27probably I I would didn't know it at the
7:28time but like 50 million more dollars to
7:30get through to phase three and then
7:31they're still probably going to not cure
7:33cancer so that to me was the whole uh
7:36you know it's there are a lot of traps
7:39um and and once you realize at the end
7:41of the day it's just a vehicle that's
7:43why they go back down that it's a supply
7:46and demand issue and it's not going to
7:47overcome it I don't care what the pr is
7:49the pr is designed solely uh to create
7:53action within the stock so that they can
7:54put money in their pockets you know what
7:56I mean and that's that's solely what we
7:58trade every single day and sometimes
8:00years like this year it's spectacular
8:02you know they get amazing pumps they do
8:04a really amazing job so that is how I
8:06look at it and and so it's all you know
8:09garbage to me at the same time um even
8:12intraday price action when it gets
8:13towards highs through pre-market highs
8:15especially early in the mornings you
8:17know um I get weary um I just understand
8:20and you know I have a lot of friends who
8:22are just amazing short sellers I just
8:24understand where they are and how they
8:25how they are and I just never really
8:27made the full jump over to the dark side
8:29I guess is what I is what I'm trying to
8:31say and and I really have enjoyed um
8:33kind of guiding people away from that
8:36high of day beginner mentality but it's
8:39not the thing is it's not just a high a
8:41day like beginner mentality that's what
8:43everyone does teach you know kind of
8:45universally like even if you ask chat
8:47gbt like what's a good St like that's
8:50that's probably what chat gbt would even
8:52say so it's like um it's kind of like a
8:54universal thing I guess that people do
8:56that I don't know but in small cap it's
8:59specifically doesn't work in my opinion
9:01because of what you just talked about
9:02they have shares to dump and if I've got
9:04millions and millions of shares to dump
9:05I need liquidity and when that liquidity
9:08comes in I will dump it and the most
9:10liquidity comes in when where when you
9:11get through highs a day in the morning
9:13and you get those short sellers covering
9:14and you get Longs piling in and then it
9:17gets stuff there you know and it's like
9:19it doesn't mean it can't squeeze later
9:20in the day but there in the moment you
9:22know from a price action perspective and
9:24big picture perspective I like to be
9:25careful and you can always go back and
9:27match it to some fundamentals speaking
9:29so in other words fundamentals right
9:33fundamentals it's it really does Drive
9:35in a major way what's going on and um
9:38and kind of the conversation for me the
9:41way I look at it 100% And I I know that
9:44you've talked about in you know other
9:46interviews that you are looking at like
9:47what are the areas that they're able to
9:49dump at uh and so a lot of times it is
9:51around like high a day breaks or it
9:53could be around you know key levels or
9:55something where it looks like it should
9:56go all the liquidity comes in the shorts
9:58are covered the Longs come in and it's
10:01like bam that's when the Insiders are
10:03like you know we have to sell this when
10:04we're able to not when we want to so
10:06that's when they they really slam down
10:08those Pockets so you know now that we've
10:10kind of laid the framework of a lot of
10:13these small caps are not very good
10:14companies a lot of them have shares to
10:16sell uh so you know kind of given that
10:19we need specific conditions in order to
10:21be able to actually go long them so what
10:24are a couple of the things that you are
10:25looking for like what needs to set up in
10:28order for something to actually
10:29you know be a potential long other than
10:32just being a big percentage
10:35gapper Yeah and that's so and that is
10:37the golden question right that's and
10:39that's the question that I've been
10:41chasing um sometimes more successfully
10:44than others obviously because the
10:45markets are always changing but but
10:47mostly successfully um for like the last
10:49eight years is that uh that obviously
10:52changes all the time the markets they're
10:55always changing uh the nature in which
10:58they're moving or not moving is always
10:59changing we're either for I always look
11:01at it as we're either in a fader Market
11:03or we're in a squeezer Market um and I
11:05like to think of it in my mind is a you
11:08know and generally throughout my career
11:10you know 60 80 to 80% of the time we're
11:13in a fader Market maybe even more than
11:14that you know and certain years like
11:172022 for example almost the entire year
11:20was a fader Market you know I I don't I
11:22maybe just tiny pockets of time where
11:24there was momentum so so it is still
11:26going to be Market dependent which um we
11:28can talk about later if you want but but
11:31um ultimately what I'm looking for is
11:33the small pocket of time where they are
11:36going to be running volume through the
11:37thing that's all and and it it does come
11:39down to volume and and any any ticker
11:42that we end up going through you'll see
11:43that it's just a blip of volume and then
11:45it goes away and within that blip of
11:47volume there's usually a bigger player
11:50controlling action um and if you go to
11:54the sites of the bigger players who are
11:55the ones controlling action they tell
11:57you they're controlling action it's not
11:58even like a secret you know a lot of
12:00people on internet and on social media
12:03spe especially uh like the overall
12:06markets you know spy and people who
12:07trade Futures and stuff talk about
12:08algorithms a lot and like the algorithm
12:11but but it's kind of more obscure I
12:14guess you could say in this case they
12:16tell you like they specialize in
12:19providing liquidity and liquid stocks
12:21and uh and and doing that without moving
12:24without affecting price basically
12:26they're able to dump shares without
12:28affecting price too much by driving
12:29liquidity through it they say it right
12:31that's what it says on like HC Wayne
12:33Right website and um and it's pretty
12:36interesting to see that okay you know
12:38everyone's talking about algorithms that
12:39come in and you see the absolute
12:41astronomical amount of volume that will
12:43come in at times and it's like there
12:44it's that's actually is happening you
12:46know what I mean so there's there's a
12:48couple Dynamics in play and and for me
12:51it's it's understand that all those big
12:53players understand what retail Longs do
12:55what what shorts do what the
12:57institutional investors are doing and
12:58there embedded with the stock thems
13:00right so my goal is to find when when
13:05the institutional investors and the
13:08stock the people who are running the
13:09stock you know the people in charge of
13:11the company are going to collaborate to
13:14push their price up as high as they can
13:16and to dump shares I mean that's really
13:18what it comes down to at the end of the
13:20day and then I try and then within that
13:22I mean that can it can all line up but
13:25it can be a crap Market we're not in a
13:27in a in a squeeze Market Per Se
13:29and those are the times where you can
13:31still get great like this year for
13:32example right we're in 2024 where we got
13:34one quarter left uh this year has been
13:37marked but for me by Massive gappers all
13:40year almost all year and then it's a
13:43matter of are we going to be in a
13:44squeeze Market this week or are we going
13:45to be in a fader Market because some of
13:47the markets have been spectacular for
13:49shorts in terms of like if you're
13:51shorting pre-market or near the open or
13:52when pre-market highs rejected it's been
13:55very very fruitful but then when the
13:57outlier trade hits and and we can talk
13:59about this later too in terms of like
14:01how to adapt to this stuff but but
14:03that's really what I'm looking for in
14:05terms of of the overall markets or small
14:08cap for me like if things are slow I'm
14:10not going to be going hard in the paint
14:13to the long side um and when I say
14:15things are slow I mean gappers fade all
14:17day you know what I mean and there's not
14:19really any meat on the bone after the
14:21open because all all pops get just sold
14:23into um and those markets I tend to just
14:27do certain you know things a little bit
14:28different ly but but in terms of what
14:30I'm looking for yeah I'm looking for the
14:32one part in the life cycle of the stock
14:33where there are where they are actively
14:35pumping it that is it and then for me
14:37it's just the first few days of that
14:38move if I can specifically the first
14:40three to four days right now um and and
14:43as you'll we we'll talk about in a
14:45little bit um I've actually gone a lot
14:49away from day trading over the last six
14:51months or so because some of the Swing
14:53opportunities have been so great but
14:57yeah yeah that is fantastic and so to
14:59kind of you know summarize some of what
15:01you're saying you at least one strategy
15:04is to look for a market where there's
15:06follow through where you know things are
15:08actually getting bought where there's
15:09widespread demand and liquidity and then
15:11looking for something that is basically
15:12on the front side of a move and you have
15:15you know either institutions or
15:16something like that trying to run it up
15:18to you know for the eventual dump of
15:20shares and so you want kind of the
15:22market going in your favor and you want
15:24to be on the front side of that move
15:25while you have the institutions or
15:27whoever else are still churning it and
15:29bringing it higher so basically
15:31everything that a short seller is trying
15:32to avoid or kind of wait until that's
15:34done you're still on the front side of
15:36that move trying to get in there and so
15:38in order to actually participate in that
15:40runup and to not get chopped up along
15:42the way you need uh you know once you
15:44have a setup you need a good entry and
15:46so you are huge on this and you're one
15:49of the most vocal people kind of who
15:51trades small caps on the long side to
15:52really focus on this of you know wait
15:55for a a dip that you can use to to you
15:59know participate on the long side
16:01because your uh reward to risk ratio is
16:03better and so even if you still only had
16:06a 50-50 chance of being right on it
16:09because your reward to your risk is much
16:11higher than someone who is chasing
16:13breakouts um you know you can have
16:15vastly better results than someone who
16:17is doing it basically at the worst
16:19reward to risk uh ratio and so you know
16:22hopefully we can uh pull up a chart in a
16:24minute but uh is that a a fair and
16:26accurate representation of how you're
16:28going about about participating in these
16:31yeah absolutely I mean um it's what I
16:35I'd like to describe it as like I got as
16:37far away from Tim grani as possible who
16:39does a lot mostly like I I think a lot
16:41along now for the most part which is
16:43awesome um I remember the first time I
16:45met him we were at dinner and and he
16:48told me he didn't think that it was
16:49possible to like be long because at that
16:52time he was only short selling and uh
16:54and like I said and there weren't anyone
16:55longing really like and you know it was
16:58kind of it was interesting but but and
17:00to see now like his biggest trades be
17:02long and and what he's done and on to
17:04the long side's really cool but uh but
17:07that was initially it and it still and
17:08it still is uh very much that
17:11way a big part of this too has to do
17:14with um well yes risk reward but
17:17obviously um when we have your HC way
17:21rights or any algorithmic uh
17:24entity pushing liquidity through our
17:27tickers um
17:30it's not just about dumping through
17:31highs to me in in my opinion and and how
17:34you and when you watch these things go
17:36from lows to highs to lows to Highs at
17:38times uh if if I if I have more shares
17:41to dump I still need liquidity so that
17:44that to me is what is kind of what I'm
17:46talking about is retail going to be
17:47there and then uh do they have shares to
17:51dump if so sometimes just I mean just
17:53because they have an offering and you're
17:54above the exercise prices and stuff does
17:56not mean that they're not going to keep
17:57running it in fact they'll make more
17:59money the more they can run it with more
18:01volume the better obviously right if
18:03we're working with math here and um not
18:05that they really care at the end of the
18:07day they're just trying to get rid of
18:08you know they're dumping I mean they're
18:10dumping them so uh but why not if they
18:13can also sweeten it and make some more
18:15money and and the way I look at is like
18:17at lows if they want if they need more
18:19liquidity if they want to turn let's get
18:21them back to highs then you know let's
18:22why not suck in some more suckers uh why
18:25not bring in more liquidity back at
18:26Highs but to do that you got to turn it
18:28back towards ties you know what I mean
18:30and then you play the game of all right
18:32well now you're going to have shorts
18:33shorting like backside here going into
18:35the afternoon as it gets to vwap you're
18:37gonna have shorts as it gets to the next
18:40level you know the next uh previous uh
18:42lower high from earlier there are shorts
18:45and every con consequent level all the
18:47way up to high day right where the all
18:49the shorts are now if it's going to be
18:51get to up get up there and then maybe it
18:53squeezes so that's kind of the principle
18:55um and it can happen in really small
18:57time frames or big time frames
19:00um but yeah I'm a big advocate of that
19:03and and you know kind of the lower the
19:05better for me I guess you can say at
19:07times especially in a market like this
19:09things that look dead in the water
19:11inaday or on you know on a multi-day
19:13level end up squeezing and breaking out
19:16when we're in the squeeze portion of the
19:18market that I was mentioning you know
19:19what I mean so one of the things that I
19:22think a lot of people struggle with is
19:24differentiating you know a dip along a
19:27higher Trend versus you know the Stock's
19:29dipping and it's done it's failing and
19:31now you're on the back side of the move
19:33and I think that that's what scares a
19:34lot of people from buying dips in small
19:37caps is that they're like if this is
19:39going down you know it's probably got
19:41bag holders in it now it's probably you
19:44know they the The Insider dumped and now
19:46I'm buying a dip on a stock that's
19:47failing so how do you differentiate
19:50between you know I'm buying a dip along
19:52a trend higher versus I'm buying a dip
19:55on a failing stock and are you able to
19:58to do that in markets yeah it's uh it
20:01differs at times
20:03um yeah and and really that is the scary
20:06question and to me though you know at
20:07this point I've been I've rewired myself
20:10to where it's kind of the opposite
20:11question you know to me it's always like
20:14um you know when I'm buying through
20:16highs it always gets slammed every
20:18single time I know that for a fact when
20:21I get to when so basically the concept
20:24for me ends up being where are shorts
20:26covering and if enough shorts are
20:28covering and then institutional
20:29investors are going to step in or the
20:31algorithm um that they're running is
20:33going to T take it back to highs or
20:35towards highs and it's going to keep
20:36churning volume um and I'm short and I'm
20:39profitable then where am I covering you
20:41know that's that's always usually the
20:43the question to me and uh and so I'll
20:47just go back through pre-market levels
20:48I'll go through whatever key levels I
20:50have from the morning and and find any
20:52areas of support right at the end of the
20:55day where if I'm a short and I see
20:57certain levels hold maybe one or maybe
20:59twice you know or I might see it break
21:01down and then a higher low for the first
21:03time U maybe on higher time frames too
21:07you know um that's what generally what
21:10I'm looking for I'm looking for good
21:11areas where shorts are in the money you
21:14know and and backside or
21:16not you never know if I'm buying a dip
21:19you never know you know if it's a
21:21backside unfortunately that's the case
21:24but the beautiful part is it also leaves
21:26me a big margin for error I don't need
21:28it to go back to high day and through
21:29high day to make money in fact it's
21:31rather the opposite I make most of my
21:33money on situps like that by selling
21:35back into vwap by selling into previous
21:37highs in the first place so every area
21:39where subsequent shorts are going to
21:41step in post when they they think
21:43backsides in I'm also selling some
21:45shares there you know that's that's kind
21:47of the concept behind it um generally
21:49speaking those areas are also it's sold
21:52off a lot you know what I mean it's not
21:54it's it's O almost oversold at times
21:58right that's kind kind of the concept
21:59behind it as well so um in other words
22:02I'm not just buying random dips it's not
22:04like the first dip of the day generally
22:05speaking unless that's what certain
22:07ideas call for which there have been
22:09some like kind of early morning ideas
22:12this year based off of pre-market action
22:14which the pre-market action has dictated
22:16a lot for me this year of what my market
22:20actions have been or not been so um it's
22:22been a kind of an interesting year where
22:24pre-market has been super super fruitful
22:26I have some you know students I've work
22:28with who have made asinine amounts of
22:30money trading pre-market this year and
22:32um and then to me it gets to the point
22:34where I'm trading really really
22:36overextended junk already right at the
22:38open you know not it's like uh straight
22:40up you know tough kind of tough to tough
22:43to trade so so in other words the answer
22:48to your question is that it differs
22:49right from Market to Market there are
22:50some markets where um specifically I
22:53find slower markets where the day ones
22:55can be a little bit easier believe it or
22:56not where it's just like kind of is a
22:58little bit concentrated um and if
23:01there's you know if they're going to
23:02dump they dump right into the morning
23:03pre-market and then it pulls and it kind
23:05of gets back to some levels of support I
23:07can trade and then um you know and then
23:10I'll take some vwap Pro I'll do exactly
23:12the process I just told you and there's
23:14a single and then it gets slammed and
23:15Fades the rest of the day and I'm gone
23:17you know so there's that and then
23:19there's markets like this where I'm
23:21trying to be there for bigger picture
23:22moves right and that's kind of the qu
23:24that's kind of the question are we
23:25getting multi-day movers or not because
23:27if we're not getting multi-day movers
23:29then I get back into that kind of day
23:31one you know Gap and crap wait for it
23:33wait for it to dump you know try to get
23:36my position it gives me margin for error
23:38like I was kind of trying to mention
23:39which we can look at later it gives me
23:40good risk reward when I can locate areas
23:42like that um and and I know that that at
23:46least they're motivated for today to try
23:48to dump some more shares potentially um
23:51I know that volume's there so I know
23:53shorts are there no shorts no squeeze
23:55right so all all of those things when
23:58they line L up it can be it can lead to
23:59some beautiful trading um but but it's
24:02still Market dependent and then even for
24:04myself it's um uh will EB and flow based
24:07on how dialed my trading is at the time
24:10I guess you can
24:11say yeah totally and you know from what
24:13you're describing I know like an
24:15investors's underground there's a lot of
24:16people who short in there and you know
24:18something that Nate hammers home is that
24:20like if you nail something off the open
24:22if it flushes into you know that support
24:24or anything that's where they're
24:25covering to avoid basically being stuck
24:27in a clear out move back up to vwap and
24:29so where you know good short sellers are
24:32covering that's where you're thinking
24:33about potentially going long and then as
24:35that clear out move happens maybe you
24:37get a vwap touch and then maybe it goes
24:39past that and maybe you get you know the
24:41next level maybe High a day where you're
24:43selling some more and then maybe it
24:44works out and you get a full breakout
24:45and you're able to hang on to some of it
24:47but you're basically participating in
24:49the clear out that could turn in to
24:51something bigger as opposed to chasing
24:53something uh you know that could be okay
24:56you know but maybe you have a 20 %
24:58chance of it actually working through
25:00high of day and instead of something
25:02where you're buying a dip so uh if
25:04you're okay with it I'd love to pull up
25:05a chart and have you run through a
25:07couple of examples so that people can
25:08see you know what this looks like
25:10visually and what it looks like in uh
25:11you know the real world yeah sure
25:13absolutely okay great all right well
25:15this is this is the one we were just
25:16talking about because this is today this
25:17is Chinese stuff so first of all we're
25:19in the middle of sector momentum right
25:21now Chinese sector momentum uh there
25:23were some stimulus in the China markets
25:24they went nuts but then they also had
25:26had this break this two week break you
25:28know about this you know what's going on
25:30in China yeah with with the the holidays
25:33yeah so they have like a twoe holiday in
25:34the markets meanwhile you know you got
25:37we have um all of our Chinese tickers
25:41just and and I've been kind of watching
25:42Babas and some of their big capap if you
25:45know as a gauge for me in small cap
25:47specifically uh but this is just you
25:49know the recent move here on baba alib
25:52baba um and you can I mean that's it's
25:55getting extended you know it looks
25:57extended I'm sure short have been kind
25:59of chopping at the bit of this but
26:01obviously small cap is kind of my realm
26:03here's Duo here's a great example of a
26:05lot of things that we actually just
26:06spoke of fang D Network okay uh they did
26:09an offering today right in the midst of
26:11all this okay they did an offering I
26:15underestimated uh this sector but but
26:19what happened here first of all just to
26:21kind of touch on a different subject
26:22because it's really really important to
26:23me this is how I grew my account early
26:26on and so so and is a really really
26:29really uh a sector momentum man you know
26:32groups of stocks that go up together and
26:34go down together to me was always a big
26:36deal um and and and that's kind of what
26:40we've been seeing this week any s any
26:42Chinese stock uh has been going up for
26:44the last few weeks right um so we've got
26:47Duo obviously that that chmd I didn't
26:49really trade a lot of this stuff Chinese
26:51stuff is really sketch a lot of these uh
26:53was it chmd that's running right
26:56now no damn it I forget Duo uh chsn
27:02sorry there we
27:04go right like this is a Chinese pumping
27:07dump okay this is a CH look at that
27:09there's the pump and dump from December
27:122023 a lot of these tickers are like
27:15China room call room pumping dumps right
27:17where they have been driving price up
27:20and then literally dumping shares just
27:22like this overnight um so that's a lot
27:24of the tickers obviously that we're that
27:26we've been looking at but also they'll
27:28they do crazy things with them right A
27:30lot of people and and I know you've got
27:32a lot of short sellers in your community
27:33and they're Pro and I feel terrible for
27:35pulling this chart up I'm really sorry
27:38but I mean it's I'm just trying to show
27:40like that they're really sketchy but
27:42they can do crazy crazy things and this
27:45is one of the T Tops another one from I
27:47think earlier last year maybe or uh
27:51May was that this may I don't think that
27:53that's this may that was last May right
27:55yep uh last May right top this is they
27:58haven't split since then so this
27:59actually went from 6 to 250 in two days
28:03um and dumped you know back down to two
28:05by the next week and and um so a lot of
28:08these I've been kind of struggling with
28:09like H I hate trading Chinese pumps I
28:11just do um they're sketchy and a liquid
28:14generally speaking but but Duo okay for
28:18example this isn't this didn't really uh
28:22it does fit the multi-day mold that I've
28:24been kind of talking about okay it
28:25doesn't really fit the inaday mold that
28:27we were talking about because if you go
28:29back to day one of their move which I'll
28:31show you real fast because we always
28:33like to give you that kind of context
28:35the way and and just to give you more
28:37context quickly just for your viewers
28:39but I have kind of a specific way of
28:41looking at it we talk about the life
28:42cycle of the stock right are they in
28:44just dump mode right just low volume um
28:48everyday crap where they're just going
28:49to fade as they dump and just uh dump
28:52into every dip or every uh Spike over
28:55time okay or are they going to be fresh
28:57for pump and I'm looking at volume um
29:01but what I was trying to show you here
29:03real
29:05quick sorry hold
29:08on is this is kind of the context of the
29:11move for me is this would be a day one I
29:13call this just a day one gapper okay
29:15because just to classify it for myself
29:17what day am I trading in the move is
29:19very important for me uh this is a day
29:22two gapper right day two gapper to the
29:25upside this is a day three gapper so
29:27this is a 4 day gapper okay um five this
29:30is five technical Gap days for me I
29:33pretty much live in the first few days
29:35and if it's going to day two or day
29:37three I'm not trading to the long side
29:38even if it's getting ex that's that's
29:40just personal preference
29:43um I've been living kind of in the day
29:45two and if it keeps gapping up like this
29:48there's just not much for me this is
29:49different because this is driven by
29:51macro stuff right it's not just a r one
29:54Rogue ticker it was every Chinese ticker
29:56it was the whole Chinese market
29:58and then they took a break so like the
30:00Chinese market stopped trading and uh
30:02and our Market has left trading all
30:04these stocks over in China and I'm it's
30:06just really interested to see Duo
30:08obviously did an offering into it um
30:11which is smart okay they did this uh
30:14today okay they're holding up really
30:16well and they dumped shares it's what
30:18they do um let me get into let's try to
30:22find a better context this is glmd from
30:26earlier this year it's also gives me a
30:28chance to talk about something else
30:30because you asked um you know so when do
30:33I trade these you know when is it okay
30:35to trade these if they're always piece
30:36of you know if they're always dumping
30:38well you can see it's not always they
30:40are they're dumping they're liquid most
30:43of the Year doing nothing fading right
30:45they're not doing anything most of the
30:47year that's the whole point most of
30:48these tickers are doing nothing most of
30:50the year except for fading but you'll
30:52see little heartbeats like if you if I
30:53scroll out you'll see and glmd you can
30:55see one big heartbeat here but um um a
30:58volume that's what I'm looking at you
31:00know any anytime where there's some
31:02abnormal volume and then what does it do
31:03then um in this case
31:06glmd is going to be a chance to show you
31:08something else which is oh they did a
31:10split too right they did a one for 12
31:12reverse split this is the life cycle of
31:14these stocks they pump the stock they
31:16dump it goes all the way back to zero
31:18they do a reverse split so that they can
31:20stay compliant with NASDAQ and get back
31:22over a dollar and then they pump it uh
31:24to stay over a dollar right after they
31:26split generally speaking they're going
31:27to put a PR out and this is what I kind
31:29of what I was talking about also um when
31:32you understand the scam and when you
31:34understand the life cycle of these
31:35stocks you understand there there are a
31:37couple times where they're actually it's
31:39almost like insider trading honestly
31:42there have been some grooves I've gotten
31:43and when hot when splits get really hot
31:45and when the markets are really hot
31:47there have been some grooves I've gotten
31:48in where you know every couple weeks I'm
31:50I'm long a ticker that that has a
31:53positive PR tomorrow you know or the
31:56next day so um position ing myself for a
31:59PR ahead of time which man when I got in
32:01the game and I was and I was watching
32:02PRS I'm like I wish I would know how
32:04that went well this is actually one of
32:06those cases where and of course they can
32:08do offerings they can go bankrupt you
32:10never know there's bad things that can
32:11happen to but but for me it just this is
32:14the one that really got me excited
32:16because there is an actual fundamental
32:18reason that they run during this period
32:20of time which is that they just did a
32:22split okay so they got to hold a buck
32:24for 10 days okay generally speaking
32:26that's it once they hold a buck for 10
32:28days um they're they maintain compliance
32:30with NASDAQ so and I and I realized this
32:33back in 2018 it became one of my bread
32:35and butter setups which was this the
32:37reverse split pump I used to trade it
32:39differently back in the day because
32:40liquidity was different and uh the way
32:42they traded was different uh back then I
32:44would wait for the pr to come out and
32:46then when the pr came out I would uh dip
32:49by it or try to trade it pre-market you
32:51know I would have alerts ready for it
32:52and then I I would just kind of day
32:54trade at the day of um I don't really do
32:57that as much any anymore I I still will
32:59but my whole game now is trying to place
33:01myself somewhere prior of the pr that's
33:03always been the game but that game can
33:05get crowded right that game can get
33:07crowded now I'm not the only one who
33:08knows that happen so you'll see even
33:10glmd didn't really fade so much off of
33:12three they just kind of up ticked into a
33:14PR right so day one two three four five
33:16six seven eight nine 10 this is day 13
33:19day 14 it's not an exact science
33:21obviously some days they PR the same day
33:23some days they PR day two or day three
33:25so it just depends sometimes they PR and
33:27it doesn't do anything you know often
33:28times that's the case too but um it's
33:31still it's still um a really amazing
33:34scenario to look into and it's a great
33:36scenario to teach you like hey it's not
33:38just buy through high day bro you know
33:41it's not just buy through high day it's
33:42um in fact that's the worst there that's
33:44Checkers you know there are some ways to
33:46take advantage of what I was trying to
33:47tell you that there are life cycles of
33:49these stock stocks there are only
33:51certain times to play them and posts
33:52spit is one of my favorite times um
33:54posts spit why well first of all they're
33:56a low float you know first of all
33:58they're a low float second of all once
34:00you start to dig in and we and we can
34:01kind of move on from this uh but once
34:04you start to dig into the scenario there
34:06are quite a few rules around uh
34:08post-split what happens and their float
34:10size and their price and all that stuff
34:12uh that can kind of dictate you know
34:14when and where to trade them a little
34:15bit more but really at the end of the
34:17day I don't start getting split heavy in
34:19my trading until I see a split become an
34:22outlier Runner like for the week if that
34:25makes
34:26sense yeah so basically what you're
34:29describing is that you know when you're
34:30thinking about Longs in small caps that
34:33it's it's an entire life cycle of
34:35something happening so you can't just
34:37look at the technicals and say oh
34:38because it broke this level it's a good
34:40time to go long but it's more about
34:42identifying you know why is this running
34:44you know what theme or what kind of H
34:46setup does this fall into and in this
34:48case this is like a reverse split kind
34:50of pump theme so now that you kind of
34:52know what you're dealing with now you
34:54can anticipate you know how does this
34:55kind of play out so if we could get like
34:57a more granular look at this like if
35:00yeah if you were to play this on the
35:02long side you know where would you be
35:04looking uh to really get in you know
35:06could you show an example of like the
35:07dip that you might be interested in and
35:10where you'd be selling along the way
35:12yeah so so the interesting thing on on a
35:14chart like this the problem is is let's
35:15go pre-split pre pump right pre PR and
35:20here's the issue is that you can see
35:22this day and then Big Move day but for
35:24me this is uh this is one where yeah day
35:27three day four when I get a base sub
35:29three on some of these if I can get a
35:31Bas or a Green Day this wouldn't have
35:33really honestly if I'm if I were
35:35watching this uh because what I do is
35:38the second that every single ticker that
35:40splits the day of the split it goes onto
35:42a watch list for me all right so I start
35:44tracking it immediately there's no split
35:46that happens where I'm not already
35:47watching it and it's one of the things I
35:49love about this is that I get to watch
35:51it first and we're going to kind of
35:52break this down this isn't actually
35:53ideal we and I you know I don't know if
35:56we'll we'll kind of go through a few
35:57more TI maybe we'll find an ideal one um
36:00but but either way I'm looking day three
36:02day four for a base generally speaking
36:04I'm looking for a pullback towards
36:06towards a buck at times um and it's
36:08really going to be a little bit Market
36:10dependent though uh hot markets when
36:13splits are hot and by the way when glmd
36:15ran there were some other splits that
36:17were running and that it was kind of a
36:18Hot Topic at the moment um but but at
36:21the same time this is these are daily
36:24candles right so um getting into that
36:27this doesn't wouldn't NE necessarily set
36:29up ideal for me it's and they still did
36:31the pump right so I'll see these work at
36:34times the whole point is I like working
36:35off the idea that they got a hold a
36:37dollar but it's not always that it's not
36:39always that uh let's get into like the
36:41morning action for that day because
36:43that's I if I don't have the swing I
36:46still look at these when they put the pr
36:48out and you can see here's their PR okay
36:52this is here's their split right here
36:55right they just are very liquid is the
36:57issue post spit these things are a
36:59liquid so what I like to see personally
37:01is an a liquid fade okay because to me
37:04the whole premise is um the whole
37:07premise is is that as it gets down
37:09towards a dollar they have to hold a
37:11dollar they're going to want to
37:11meaningfully move it away from there
37:14it's not always the case but but you
37:16know I I I like that idea in my mind so
37:20a lot of higher price splits I'll kind
37:21of Miss if they do pump them um that
37:24being said morning of yeah this is
37:26another one so this this is this is not
37:28perfect either this is this is actually
37:30categorized for me under um a early
37:35morning Spike kind of idea like it
37:37doesn't really fit in is this it that's
37:40the balance okay so first of all uh
37:44here's that pump sorry about that here's
37:46the pump okay that put the pr out after
37:48hours and it started climbing from four
37:50it got up to the fives here's pre-market
37:53at 400 a.m. pull back to the fours got
37:54up to the sevens okay so that would have
37:57triggered pretty much everyone um it's
37:59it's it's a gapper it's a big big gapper
38:01that day uh my morning setups for
38:04morning Spikes have all been sub vaps
38:06pools sub vwap and this in this
38:09specifically by the way and this is good
38:11for my short seller Friends by the way
38:13if you're watching um and you may have
38:15already experienced this and you may
38:16have already adjusted but this year
38:19specifically when we have tickers so
38:20this is actually is a good example
38:21because it's still a reverse split split
38:23pump okay they put the pump out but uh
38:27it's also one of these tickers that goes
38:28sub that over seven pre-market right
38:31this has been a big deal for me all year
38:33long by the way um I have a stupid name
38:36for the pattern I don't know if we even
38:37need to talk about it but it's a it it's
38:40got over seven right from 234 has been
38:44kind of a trigger for moves to 10 if
38:46they can hold the fives that's been the
38:48premise of that trade fives or sixes um
38:50because it's super extended right it
38:52shouldn't go it shouldn't be that
38:54extended um if it goes to seven it
38:56should be your shorts are GNA step in
38:58shorts are already in okay when when
39:01things do like this right shorts are in
39:04I I got an emoji for y'all I don't I do
39:07you short at
39:08all I don't I I do with options but I
39:11don't with Equity okay cool um well all
39:14of our friends then you know this is
39:16this is uh the way I look at charts like
39:18this man you know literally I like
39:23that's how I see that okay I see um I
39:27see what it is there's so much meat on
39:29that bone to the downside right um and
39:32then they're going to Pile in generally
39:34speaking and I and and I mentally that's
39:37just kind of how I'm looking at it right
39:39this is going into high a day over here
39:41from pre-market highs um so I literally
39:45throw y'all not you but short sellers in
39:47my mind that's where they lie right so I
39:49keep that in mind
39:52um and let me see so in other words you
39:56have people in sevens who are going to
39:58be banking when it's in the fives okay
40:01you've got kind of going up on higher
40:03time frames is how I like to look at
40:04pre-market when you get a full
40:05pre-market and after hours on these
40:07things um but here's that glmd move
40:10again right here's that push to through
40:11seven and then here's that five hold
40:14which has also happened to be some
40:15resistance earlier in the morning and
40:17after hours previous day maybe have some
40:19after hour shorts or something like that
40:20I don't know but but this is
40:23uh this one was crazy the thing about
40:26this move
40:27uh as well is that it also dictates what
40:30my favorite swings have also been so
40:32there's reverse split pump this didn't
40:34set up exactly how I would have like to
40:35do it but but they it certainly did um
40:40they've got that pre-market action
40:41through seven the ones that go through
40:43seven and pull back generally speaking
40:45I've seen push to 10 almost all year
40:47long um outside of a small handful of
40:50times um I I've traded it not so
40:53successfully because it's still to me
40:56the lens and which I trade it's extended
40:59you know what I mean it's extended even
41:00if I understand that they're taking
41:02these things to 10 all year long I've
41:04kind of had trouble capitalizing just on
41:06extension because I don't like trading
41:08extension we've already kind of
41:09discussed that so what do I do instead
41:11on stuff like that if I miss these I I
41:13don't mind I've actually really
41:16appreciated uh sitting on the sidelines
41:18on day ones this year because the the
41:21hand starts to play out for me right
41:23they're going to squeeze it and fade it
41:24day one or uh they're going to fade day
41:26one it doesn't really matter because I
41:27don't have to get in the way either way
41:29and then what I've been looking for are
41:31day threes man day threes day threes or
41:34day or a first Green Day bounces those
41:36are the two setups this year for me and
41:38for a lot of the people I work with that
41:40have been uh the most fruitful and the
41:42most Dependable all year long um outside
41:46of the pockets of time where multi-day
41:48stopped so that looks something more
41:50like this we're going to go for me all
41:52year my trading process has been a lot
41:54like not caring of missing glmd going
41:57into 20 you know I zero fomo because I
41:59was going to trade it anyways it didn't
42:01set up for me um but then watching those
42:04key levels from day one for potential
42:06day three bounces right so uh you can
42:08see day one kind of getting back to
42:10those key areas from day
42:13one okay and we're not even getting into
42:15fundamentals right now and there and
42:16there are some right there are some
42:18here's that day one I was talking about
42:21okay um if we zoom in I'm sure let me
42:24see here right so here's a day two a
42:27week day
42:28two and and it it seems obscure and it
42:32is obscure to a certain degree because
42:34it's pre-market action for me um but
42:37levels like this I'll go back you know
42:39on kind of bigger picture time frames
42:41and I will look for any little bit of
42:42spot uh from the day one that might
42:45coincide with a level for a bounce um
42:48and then I've been looking for the
42:49swings okay this is what I call Third
42:51Day surge this one isn't um isn't
42:54perfect there have been a lot there have
42:55been a lot of these this year okay and I
42:57think because glmd got so extended day
42:59one but um I'm trying to think off the
43:03top of my head W hlr just did a reverse
43:06split pump right now there's their
43:08splint there's their split uh one two
43:11three four five six seven eight day fade
43:14down to six from 20s okay from the 20s
43:18uh and then they run on a PR from 7 to
43:2120 the last few days right it's reverse
43:22split pump for sure little bit higher
43:24price like I was mentioning but a big
43:26fade uh also I think if you go to the
43:28filings they're very dilutive as well um
43:31ffi remember that one that was a
43:33spectacular one this year uh this one
43:35didn't really set up the way I'm trying
43:37to show you but but generally speaking
43:40what I've been looking for are the Fades
43:42on day two on low volume and then
43:43getting those liquidity traps for day
43:45three which have been really prevalent
43:46this year in my opinion um for for large
43:50portions of the year and then when we
43:52get and and when you look and you see
43:54all these chunks of multi-days three
43:56four five moves those Third Day surge
43:59moves for me here's uxin uh day two was
44:01kind of strong day three it took a
44:03couple days for this thing to break out
44:05and it's it's doing more stuff now um so
44:09it's not exactly perfect but it's
44:11another Chinese play first of all so
44:12it's another part of this Chinese sector
44:14I missed that and ended up playing for
44:16example
44:17KX okay I played KX this is a good
44:20example of that actually this is a
44:22cheaper one though so this is a sub
44:23dollar okay this is a sub dollar which I
44:26I consider consider specifically tickers
44:28that come from 10 cents to be bottom
44:29bouncers and specifically 10 cents
44:32because there's actually um some laws
44:34around maintaining 10 cents for these
44:37NASDAQ plays to stay listed so it's
44:39another one of those kind of fundamental
44:41areas where you will see a lot of pumps
44:43off 10 cents also any ticker that's
44:46trading off 10 cents or below is almost
44:49certainly there because they've been
44:50dumping shares um in a toxic fashion
44:53usually right they've been dumping and
44:55dumping and dumping and anything that
44:56they pump into any pops they dump into
44:59so generally speaking they're also going
45:00to be bigger floats right um so I keep
45:03that in mind but also generally speaking
45:06when I trade them I trade them with like
45:07hundreds of thousands of shares and so
45:09does everyone else well not everyone
45:10else but a lot you know it's it's less
45:12expensive to take advantage of a of a
45:14stock that goes from 10 to 15 cents and
45:16moves 50% I need to take more shares all
45:19that kind of stuff uh so it's kind of a
45:21different environment but it doesn't
45:23really change um the move itself if we
45:25look at it and granted this also is
45:28driven by macro because KX had uxin uh
45:31pushing without it um kx's Chinese right
45:35and it's a Chinese auto company they
45:37were kind of moving just with all the
45:39China momentum they like to move in this
45:41case I was buying up some KX here and I
45:44sold some into this uh last week I think
45:47it was um that Monday was that this
45:51Monday huh yeah maybe it was uh either
45:55way it's been a long week but
45:57uh so so that uh yeah so this is one
46:01let's get into that real fast so you can
46:04see this is a this is a little bit
46:06different like I said because it's
46:07sector momentum with Chinese plays it is
46:10dilutive actually uh according to when I
46:13looked at it last they had dumped most
46:14of their shares but they had been
46:15dumping for a long time so here's their
46:18day one okay I was buying it on this day
46:23um because of
46:25uxin okay so literally right up in here
46:28um I was going to make a video about it
46:30soon but anyways that because of uxin
46:33running and then they got a nice pop
46:34right so I sold pre-market the next day
46:37in the 16s it went to the 30s I was kind
46:39of but hurt but it's is what it is
46:42here's the point uh this is the day one
46:44push okay here's the day two and on
46:48specifically for bottom bounce plays and
46:50I'm just kind of like giving out all the
46:53Playbook here but so for for 10 cents is
46:57that all right I hope it's all right so
46:58for 10- Cent plays if they go from 10
47:00for me to 30 um generally speaking the
47:04move is to wait till they get all the
47:05way back to 10 okay and this is yeah
47:09this is discretionary I you know when we
47:11talk about what we were talking about
47:12earlier um you know how there's a
47:15certain life lifespan of these tickers
47:17that's why data says don't ever long
47:19these you know what I mean and the and I
47:21and I don't know if there's a I'm sure
47:22there may be a way but I to me that's
47:25why but the data also can't account for
47:27this to me I guess you could say maybe
47:29it can but the discretion that's
47:31involved with the experience of
47:33understanding that there and and the
47:35fundamentals and the supply and demand
47:36that's involved of okay well they're
47:38pushing volume through and they need to
47:39dump shares so they are going to move it
47:40and that's supply and demand too right
47:42it's not just that they're dumping
47:43shares is is it's not just excess Supply
47:47they're creating demand they have to
47:48create demand to keep the volume going
47:50anyways that's so so this is a little
47:53bit different too because Chinese
47:54momentum kept going but I see this
47:57pattern I see this pattern all the time
48:00I've been seeing this pattern all year
48:02long and before this year I was seeing
48:04it last year not in 2022 but I used to
48:07see it in
48:072021 um 10-cent plays they'll pump them
48:10to 30 cents generally speaking there's
48:12an offering there from earlier you know
48:15generally speaking if we go back on kxi
48:17there's probably some kind of resistance
48:19up in that area uh probably here right
48:23uh you can see they ran on some volume
48:25back then there looks like they dumped
48:27here as well so there's obviously some
48:29stuff up in there right and that's how I
48:31look at these charts I just look back I
48:32look at volume I'm looking where and the
48:35lifespan are these stocks these days I'm
48:37liking to play day twos this is a bottom
48:39bound so I would usually wait for them
48:41to get all the way back to 10 cents not
48:42the best idea uh so it's not the best
48:45example I'm trying to find a really
48:46perfect Third Day surge example for you
48:48but let's check out this one apld D this
48:51is a good one recently did really really
48:53big volume and a big move they're
48:55actually in the midst of uh some
48:58continuance on that move right so uh but
49:00this these are the days I'm interested
49:02you can see most of the days they're not
49:03really trading much much volume um but
49:06on this day here they did 160 million in
49:09early September I remember this move
49:11actually um this will illustrate two
49:14things right now uh well you can see
49:17kind of the multi-day this has been a
49:19common occurrence this year are bigger
49:21multi-day moves where if you look back
49:232022 and then even a big portion of 2023
49:26and small cap a lot of these would be
49:28one or two day moves and that's it so um
49:31so we can get into that let's get into
49:32the one minute real fast or let's see
49:35yeah we can do the one minute that's
49:36fine just to show you kind of the
49:37morning action what that ends up looking
49:39like on apld uh right here right here's
49:44that push right there right so these are
49:46the days I'm trading a PR came out right
49:50a PR came out um a lot of volume came in
49:53in the morning so this is at 8:30 a.m.
49:55eastern um and you get a push
49:58immediately from three to the fives that
50:00then holds in the fours right we got a
50:02little hold in the threes here so
50:04immediately for me I'm starting to watch
50:06kind of this area I'm watching for dips
50:08pre-market and I'm watching for support
50:10levels that may potentially hold later
50:11in the day um or in the morning if I'm
50:14going to be looking to dip by right so
50:16that's all I do when we're getting into
50:17the pre-market action I start to um you
50:20know I'll check filings and stuff like
50:22that and see if they have shares and
50:23what their share structures are and
50:25there's a lot more that goes into it
50:26right than just this but but at the end
50:28of the day just from a technical
50:29analysis standpoint and what I'm doing
50:31chartwise in the morning um I'm going uh
50:35and I'm going to chart out little areas
50:37like this um for myself just areas where
50:40listen if it gets back towards highs and
50:42then they pull you know maybe they hold
50:44it okay that's exactly what I'm doing
50:47right then I Mark and I'm always kind of
50:50starting with
50:52um High a day pre-market highs what are
50:55those pre-market highs you know post PR
50:57where are those highs okay um if we're o
51:01if we're opening into those highs I I
51:04need to let it pull and all I want to do
51:05is see it pull to some previous levels
51:07it's kind of simple right and I keep it
51:09that simple in the morning and then what
51:11it's going to look like to me are there
51:13going to be two potential tra like when
51:14I look at this chart I see two potential
51:16morning trades okay um and if it doesn't
51:20set up that way for me then I don't
51:21trade them and it's really that basic
51:23and it's either going to be this right
51:26it's either going to look something like
51:27this and this is just from a risk reward
51:29standpoint and this is kind of what I
51:31was talking about if I'm just buying
51:33through highs I don't really have a
51:34semblance I mean I can risk the last dip
51:38I can do a lot of things but the risk
51:39reward is not necessarily going to be
51:41great there oftentimes and this cuts
51:43across almost everything I do um here's
51:47that high day right so I'll use that as
51:49Max so I have two trades here once the
51:52Market opens for me uh it's either going
51:54to look something like this here here's
51:56your pre pre-market highs here's your
51:57high a day too okay uh the open price in
52:01this case because it just dumped out the
52:02gate um so generally speaking I end up
52:06with something that looks like either
52:07this and why I like when they actually
52:09fade more in the morning is because I
52:10can if I can get this in the morning a
52:12big Panic it's even better right I end
52:14up with more reward I guess you could
52:16say and kind of less downside okay um so
52:20that's that's how I look at all these
52:22trades and when I'm trading them in the
52:23mornings uh you know I'm that's what I
52:26start to work off of okay that I don't I
52:29I watch tape when it gets down to levels
52:31like this and I get excited when it gets
52:32down to these levels that I map out for
52:34myself in the mornings especially when
52:35the markets are fit for them you know
52:37and then at the end of the day what I'm
52:39doing is uh price targets end up being
52:41vwap high a day pre-market highs so in
52:45this case I end up with just a few price
52:46targets here's my high a day right okay
52:50love you buddy sorry my son that was my
52:53son um all right out bud
52:57okay I'll be right there right when
52:59we're done I'll be right there in like
53:01an hour
53:03um okay quickly so we've got high a day
53:07we've got pre-market highs and I've got
53:09vwap generally speaking those become my
53:11targets all right and I keep it pretty
53:14simple like that um and that's kind of
53:16what I was saying margin for error so if
53:19if the trade sorry I accidentally copied
53:22two of those too if if the trade doesn't
53:25materialize vwap I you know I'm
53:28basically Break Even every single time
53:30by that point it's just you know I like
53:32to take shares off there um same high a
53:35day I take shares off at high a day and
53:37if it gets two and through pre-market
53:38I'm taking shares off so that's you know
53:41that to me has been the biggest game
53:43changer on how I play day ones and and
53:46that's Universal you know that's
53:47basically how I play them there there
53:49are definitely some um so there have
53:51been some nuances this year where have
53:53changed how I played them and even I've
53:55played them less but but it when I play
53:58them it's still the same and the idea is
54:01that listen man when when old me was
54:03just going to buy it and just getting
54:05excited to buy it and when all the noobs
54:07are getting excited to buy it here you
54:09know I'm taking profits there you know
54:12it's um an absolute rewiring of how I
54:15think about things okay and and because
54:18of that I found find this Mar like this
54:20margin for err for the people I teach
54:22this to it it helps them it helps them
54:24understand that listen you're not make a
54:26billion dollars all the time you know
54:28but you can definitely make a living
54:30doing this you know you can make a
54:32living buying the dip correctly and then
54:35selling it into into subsequent levels
54:38um without greed you know and and and
54:41becoming basically as mechanical with
54:43this process as possible that's what I
54:45want I don't want too much bias I don't
54:47want too much like it's going to
54:49anywhere crazy I want my perspective to
54:51match what I'm doing and then I can make
54:54money you know what I mean and and I
54:56just want I want I want to know that
54:59listen yeah okay so if I take profits in
55:01the vwap and then it goes to you know
55:03all the way to premarket highs yeah it
55:05would be nice but the rest of the time
55:07it protects me um and it's the selling
55:10into vwap like in this instance um you
55:14know if you're buying kind of the high
55:15or low or something like that for me
55:16it's the selling into the vwap that
55:18would allow me to wait into the pools
55:20where shorts or reshoring that so I call
55:22it on this setup and across all my
55:23setups buying patience and I'm buying
55:25patients by selling with the short
55:27sellers into the high into new highs and
55:29then I get to sit through the dips as
55:31they are going through their emotional
55:32thing and I'm just you know these are
55:35the I'm at profit Target levels you know
55:37and and that's how I like to look at it
55:38too you know people will be resorting it
55:41and then I get to use their volume for
55:43the you know now when they squeeze now
55:46I'm on that on that side of the trade
55:47where I'm long and I've been long and
55:49and I look at that as bonus for for
55:51doing the right thing throughout the
55:52rest of that trade and then really at
55:54the end of the day I'm playing a game
55:57now of how many shares and and um and
56:01how much to size out into each level and
56:05and that come and that you know that is
56:07uh Market based and setup to setup based
56:10and all that good stuff and how extended
56:11is it what's the float you know how
56:13dangerous is my entry and all that good
56:16stuff there's all sorts of factors that
56:18go into it but the spirit of what I do
56:21has to do with the fact that we talked
56:23about earlier which is like you know
56:26short sellers will be here and on
56:28something like apld they'll be here and
56:30absolutely they'll be there and you'll
56:31100% be here and you're going to be here
56:33and here and here right that's kind of
56:35the mentality but along the way when it
56:37gets back towards certain lows they're
56:39going to have to cover too right at a
56:41certain point and then at a certain
56:43point if it goes through highs they all
56:44become demand and it's just a matter
56:47they're they're at the will of whoever's
56:48running the thing or not you know so
56:51that to that to me is how I looked at it
56:53um apld ended up being a nice mold today
56:56so so here's what's great right so we
56:58get these key levels from day one well I
57:02like to let them especially if I'm
57:03missing day one moves what was the high
57:06here look at the high the high and even
57:08look at this day one for example the
57:10range on
57:11this if you look at the range through
57:14high a day right it I mean you had
57:16another 50 cents or so there uh but the
57:19meat of the bone here was all sub High a
57:21day you know I was kind of trying to
57:23mention that like I use the range that's
57:25given and then just try to sell into the
57:27highs on that range and when I can do
57:28that I'm generally speaking making money
57:31you know um here's day two for me watch
57:34this right here's day two and this is
57:37what I've been trying to tell you about
57:38this year
57:39specifically um why I've been doing what
57:42I've been doing on the swing ideas which
57:45are day massive volume day one right on
57:48apld specifically on these it's got to
57:51be 100 over 100 million in volume and
57:53there's got to be range and I'm talking
57:55about the swing trade idea now because
57:56we just talked about the day trade idea
57:58which is the dip byy based off some
57:59support from pre-market or you know
58:01ideally maybe you know days before or
58:03something there's some you know you can
58:04go left and find something for the ones
58:06that I can't and I don't hit the day one
58:09and even if I do hit the day one these
58:10days I don't stop it doesn't end up I
58:12don't end up in fact I'm more excited
58:15for it um and I and I hope they run
58:18without me when I'm wrong because I want
58:20them to have more range and more volume
58:22all day so if I miss that morning trade
58:23these days I don't even care you know I
58:26and in fact I'd rather um at times not
58:28get in the way of that and wait for this
58:30idea which is uh the third day surge
58:32idea okay uh Third Day search
58:36idea and generally speaking they're
58:38gonna have a drop on day two and um or
58:42or some sort of fade on lower volume
58:44okay and you're gonna have a ton of
58:45volume on day one okay um and the idea
58:50is to find that base hopefully it's
58:52going to base at a meaningful level from
58:54day one or in or around that and I can
58:56and I can play the same game Sorry that
58:59I play on that five minute time frame
59:01and that one and 15 minute time frame on
59:02day ones in the morning I can take that
59:05idea on to this 30 minute time frame now
59:08right we got the P the highs to 570s a
59:11day two pull in the morning um and then
59:13a hold all day on low volume compared to
59:16day one right key levels holding very
59:19nicely and that and that same thing
59:22right so same risk idea from day one
59:24basically becomes risk idea from day two
59:26um some support hopefully and this is
59:28the third day Surge and what you end up
59:30with is a lot of short volume that may
59:32not have be able to cover or waiting for
59:34this thing to you know get slammed all
59:35the way um you're going to have shorts
59:38step back in right absolutely you have
59:41shorts stepping back in here on day
59:44three when it starts to pop up on lower
59:46volume right just based off these highs
59:49from obviously the fives from uh
59:51previous days so you get this Dynamic
59:54right and for me it becomes the same
59:55game of how do I sell there does that
59:57make sense how do I sell there and then
1:00:00these days um at times we get upside
1:00:03down shorts and then you get nice
1:00:04squeezes right so so to me um these are
1:00:09the two setups right now for me well
1:00:11there are more you know and there are
1:00:13more ways to factor in and for example
1:00:15like this could also have been a reverse
1:00:17split pump and then it does this right
1:00:19so what's the biggest picture that I use
1:00:21the daily for that okay what's the
1:00:23biggest picture on the setup I usually
1:00:25use the daily for that um you know even
1:00:28you go back on the daily this is the
1:00:30weekly you'll see it's running you know
1:00:31up in here it's going to running into
1:00:33something right something you better go
1:00:36see what that something is but but
1:00:39that's it man that's that's pretty much
1:00:41the gist of you know there's a lot there
1:00:44are so many nuances to this obviously
1:00:46but but the gist of where I like to play
1:00:49is that and hopefully they're going to
1:00:50be pumping you know that so you know a
1:00:53lot of reverse splits um some of the 10
1:00:55cents stocks like I mentioned whenever
1:00:57there's sector momentum like we see like
1:00:59Chinese stocks go off you'll start
1:01:01seeing Chinese stocks PR more um all
1:01:05that good stuff you know
1:01:06so yeah that's that's fantastic and I
1:01:09think that that you know the visual of
1:01:11just showing like your risk versus the
1:01:13reward a lot of these you know day ones
1:01:15they have a press release or something
1:01:17and it's like what is a good time to
1:01:19actually try to get into those and you
1:01:22know you can see like with something
1:01:23like uh apld even though it never really
1:01:26broke the uh you know it didn't get too
1:01:28much above like the the high of days or
1:01:30like the pre-market highs you could
1:01:31still have a lot of you know gain in
1:01:33there by being patient by waiting for
1:01:36that morning dip and then you know
1:01:38basically uh where like the initial
1:01:40round of shorts are covering that's
1:01:41where you're entering and then you're
1:01:43looking at your targets through vwap
1:01:46through um was it pre high up days and
1:01:48then pre-market highs or those are your
1:01:50three levels yes sir I keep I keep it
1:01:53pretty basic like that you know and and
1:01:55then at the end of the day we're in a
1:01:56game of maximizing our trade so if I
1:01:58find myself too often I'm you know where
1:02:01I'm like damn I took too much off I
1:02:02scaled out too much too soon I just
1:02:04adjust and then when I find myself being
1:02:06too patient with shares and I'm giving
1:02:08back gains and then I adjust and that's
1:02:10kind of for me the cool part about how I
1:02:12play day one gappers is that you know
1:02:14obviously there's discretion involved
1:02:16and what's the pr and what's you know
1:02:18everything else that goes down but in
1:02:20and of themselves like I let the results
1:02:22kind of guide me a little bit for myself
1:02:24right like oh man we're in a squeezer
1:02:26Market or we're in a fader market and
1:02:28that's what I'm trying to find out um
1:02:31which yeah so so you know hopefully that
1:02:33was a little bit of a you know what what
1:02:36the main part for me which I realize
1:02:38over time and the more I got into the
1:02:40filings and the price action and the
1:02:41shorts and
1:02:43everything this is why I got into
1:02:45trading okay I used to play Blackjack
1:02:47and I used to play Blackjack to get that
1:02:50little tiny bit of edge over the house
1:02:51and I would count cards and do all that
1:02:53crap only to get this still one to one
1:02:55one you know on my trades and they all
1:02:57end up looking like one to one basically
1:02:59and I'm either going to make 10 today on
1:03:01this hand or I'm going to lose 10
1:03:02outside of blackjacks and whatever else
1:03:04or you know 20 or 50 or 100 at a time
1:03:06and to me the the thing that attracted
1:03:09me to trading was the ability to figure
1:03:11out ways to risk smaller amounts to make
1:03:14bigger amounts you know and and
1:03:15specifically with all the chips that are
1:03:17stacked against Longs and especially on
1:03:19day ones for me um when I'm trading them
1:03:21but um
1:03:23it's if my trades don't look like this
1:03:25every time I don't like trading them you
1:03:27know I'm not going to especially when I
1:03:29know they're dumping and stuff like that
1:03:31I need that if I know that uh especially
1:03:34because listen this setups like this
1:03:36when I trade these I swing about 50 to
1:03:3960% some months much better some much
1:03:43some months I can't hit these at all bro
1:03:45like like just being real that's reality
1:03:48there are some months where I'm just
1:03:49laying off of them because I don't
1:03:50really have a good feel of how they're
1:03:51running them or if they're running them
1:03:53or you know all that good stuff and and
1:03:55uh um and that's fine you know that's
1:03:57same for all my setups but but when
1:03:59they're dialed that's what that looks
1:04:01like and I need it to look like that
1:04:03because when they're not dialed or even
1:04:04when they're dialed and I'm and I'm
1:04:06batting 60% you know it's very
1:04:08profitable when when I can have uh
1:04:11profiles like this and and to me it's
1:04:14just been one of the biggest game
1:04:15changers ever you know in terms of my
1:04:17trading was to be able to look and and
1:04:20just this is how I look at it in my head
1:04:21you know what I mean but but just to
1:04:23understand that's what's happening and
1:04:25um um is a big deal if I can make all my
1:04:28trades look like this it not only gives
1:04:30me margin for error within my trade but
1:04:32it gives me margin for ER over the next
1:04:34thousand trades if that makes sense yeah
1:04:36yeah definitely and so just to to kind
1:04:38of get into a little bit more of this
1:04:40just uh you know for the audience and
1:04:42for myself so you know day one Gaper
1:04:44something that's still holding up the
1:04:45move is not done yet morning dip you're
1:04:48looking for maybe that the volume to to
1:04:50change a little bit from you know the
1:04:51sellers to basically run out for it to
1:04:53stall a little bit you're using a a pre
1:04:55Market level um you know looking left
1:04:58and so basically that's where you're
1:04:59trying to position into that and then
1:05:01you know where are you wrong where do
1:05:03you stop out is it you know if it's
1:05:05underneath that level or are you looking
1:05:06for certain type of action under that
1:05:08level where do you stop out so it
1:05:10depends on the thesis behind the trade
1:05:12but generally speaking on this it's
1:05:14literally when that when this line
1:05:15crosses I'm just done and I and the
1:05:18thing is I sit there and I will also
1:05:20watch that level to see if they're going
1:05:21to trap especially if it's especially if
1:05:22it's uh still extended and stuff like
1:05:24that and I feel like it's going to be a
1:05:26shortable level like if it snaps I'll
1:05:28watch for traps there um for example say
1:05:32like this low is pulling this low is at
1:05:34four uh or maybe a little bit higher and
1:05:37I watched it you know trap into actually
1:05:39four or like a whole dollar level or
1:05:41something like that and I see a low snap
1:05:42into that and I get stopped out I'll
1:05:44watch for a re-entry but most of the
1:05:46time that you know the thesis for me is
1:05:48well there's the low they're going to
1:05:49push it back towards High day you know
1:05:51and
1:05:52um and I just don't really ask too many
1:05:55questions I don't like I don't like to
1:05:57um I like to keep it very very simple
1:06:00for myself the whole beauty of this and
1:06:02to maintain margin of error I have to
1:06:05maintain this because if I do this every
1:06:07time and I start to let this slip every
1:06:09single time or I want it to test or I or
1:06:11I'm playing one to one all the time or
1:06:12one to you know three even for me is not
1:06:14good enough oftentimes um it just it it
1:06:18just isn't it for me over time I can't I
1:06:21can't I can't enjoy the benefit from the
1:06:24upside as much because I'm leaking so
1:06:26much the 40% of the time does that make
1:06:28sense so like I I make sure that um I
1:06:32like to look at it like if this Line's
1:06:34broken and I think low of day has been
1:06:36set and the higher low and this should
1:06:37be low of day then I'm actually wrong
1:06:39the second it goes through it right so
1:06:41that's the way I've always looked at
1:06:42this
1:06:43trade that makes perfect sense and yeah
1:06:46so basically your your thesis is that
1:06:49this is the low of day and I'm using
1:06:50that as my risk level and if that breaks
1:06:52you're out and if it sets a new low of
1:06:54day then maybe you'll try the trade
1:06:57again maybe the problem is a lot of
1:06:59people will get sucked into that
1:07:00especially if and just this is my
1:07:02experience teaching this as well people
1:07:04will get they'll be like yeah that's
1:07:05amazing they get away from like chasing
1:07:07through highs and stuff like that um
1:07:08they want to dip by lows and sell it the
1:07:10way that I've been describing um and
1:07:12they're literally just the first thing
1:07:14and I did this too when I started trying
1:07:15to dip I was like the first dip I'm just
1:07:17trying to get in on the first one minute
1:07:18dip you know the the biggest advice I
1:07:20can give to help for this is like get on
1:07:22a f minute time frame maybe you know if
1:07:24it's not reversing on that that kind of
1:07:25time frame um you know I mean the one's
1:07:28okay but 10 15 minutes in you know
1:07:31generally speaking is is what I like to
1:07:33give these things the morning pools
1:07:35these days it again this is going to
1:07:36depend on strength of Market too right
1:07:39when we're in really strong markets the
1:07:40pools are not going to be as great
1:07:41oftentimes the danger is is like buying
1:07:45every dip on a fader it's it's not
1:07:47that's can be that's generally speaking
1:07:49so that's why I say I want to know if
1:07:51I'm in a squeeze Market or if I'm in a
1:07:52fader Market because if I'm in a fader
1:07:54Market yeah you know what and I don't
1:07:56mind actually I don't mind fader markets
1:07:58at all and all that I'll adjust okay all
1:08:01that I have to end up adjusting across
1:08:02the setup is I'll take this like this
1:08:05watch I'll that's the setup then that's
1:08:08just the setup for me when we get into
1:08:10fader markets we do that and then maybe
1:08:12I'll get one of these bad boys right if
1:08:16if that breaks down and I have a
1:08:17two-level kind of kind of chart like
1:08:19this where maybe I only have two ideas
1:08:21for the day on it um but generally
1:08:24speaking I like to let things sh and sit
1:08:26low and I'm not going to be just dip
1:08:27buying and dip buying and dip buying for
1:08:28no reason you know I don't like getting
1:08:30stuck into that um but if it if it does
1:08:33you know then we're play it's the same
1:08:35sort of thing that's what I like to do
1:08:36I'll I'll just adjust my expectations
1:08:38across the trade and still just bad a
1:08:41single and that's kind of how I look at
1:08:42it you know it's either I'll take away
1:08:44all the other price targets man when I'm
1:08:46struggling and I'm on my dip buys too
1:08:49I'll do that and then I'll actually do
1:08:51one of these bad boys and I'll cut that
1:08:53in half sorry I'll actually arbitr
1:08:55barely cut whatever my price Target is
1:08:57in half and take some off there so like
1:08:58just to get the ball rolling for myself
1:09:00these are just little tricks um for
1:09:03myself that I've used over time and that
1:09:05have helped some other people I work
1:09:06with you know yeah definitely and then
1:09:08it was also super interesting how you
1:09:10know this is your kind of day one
1:09:12process if you're looking for a dip Buy
1:09:13on a name that could potentially move
1:09:15higher or at least you know you have
1:09:16some mean reversion back up to vwap or
1:09:18something but then you also talked about
1:09:20you know this is kind of like the first
1:09:22start and then you know uh you can get
1:09:25uh the volume on day two to kind of dry
1:09:27up and you can get a liquidity trap on
1:09:29day three and a lot of people and
1:09:30investors underground are familiar with
1:09:32the liquidity trap setup so it's just
1:09:34nice to know that you know even if you
1:09:35weren't able to get the dip byy on that
1:09:38first day that there still potentially
1:09:40might be an opportunity there in two or
1:09:42three days or something where the volume
1:09:44dries up um you know then it starts to
1:09:46creep back up towards the highs you have
1:09:47the volume come back in you have some
1:09:49shorts upside down and you can have an
1:09:51entire other setup there so yeah those
1:09:53those first day uh dip buys and then the
1:09:56liquidity traps those seem to be like
1:09:58some of your go-tos and then you know as
1:10:00long as you can control your risk reward
1:10:03uh and you basically have a pretty tight
1:10:05stop on that then it seems to really
1:10:07work out a lot and this so this real
1:10:10quick before we kind of get move on but
1:10:12that's this is just the way I
1:10:14contextualize the third day surge idea
1:10:16in my head and first green day balce too
1:10:19so if this were a red day and another
1:10:21red day maybe the first red day only
1:10:22faded to five and then we got another
1:10:24red day you know and then we're having a
1:10:25first Green Day same context to me a
1:10:27little bit different because I like this
1:10:29three-day move that they're doing but
1:10:31but same thing man so I'll take whatever
1:10:33the levels were from day one of the move
1:10:35and those become price targets um any
1:10:38any you know meaningful levels of
1:10:40support like I look at this and I look
1:10:42at like five right as as a level that
1:10:44may now act as some
1:10:46resistance um it was some support on day
1:10:49one on the 30 and pre-market and all
1:10:51that good stuff at a whole dollar level
1:10:53here after hours right it's reacted to
1:10:55it um pre-market the day it ran all that
1:10:58good stuff right so I'll look at levels
1:11:00like that too and that becomes a price
1:11:02Target that becomes a price Target and
1:11:03then and and really this is kind of how
1:11:06all my trades end up looking like you
1:11:08know if I'm playing a first Green Day
1:11:09balance or whatever else it is I'm going
1:11:10to use what's been given to me I'll
1:11:12hopefully there's some more juice in it
1:11:14and there's good macro and I'm in a good
1:11:15Market uh to do this sort of thing you
1:11:18know because if we don't if we don't get
1:11:22good day ones we don't get good day
1:11:23threes right we don't it's not it's if
1:11:25they're not good day ones it's not
1:11:28everyone kind of suffers the shorts and
1:11:29the Longs right um so it's we're in an
1:11:33amazing market right now where I where
1:11:35these are viable ideas and um there are
1:11:37going to be markets I'm sure very soon
1:11:40where these are not viable ideas so I'm
1:11:42just trying to hit them while they're
1:11:43here you know yeah and I know that
1:11:46earlier you brought up like you know the
1:11:47ideal kind of day ones it's something
1:11:49with either a catalyst uh it's something
1:11:51with you know tens of millions of volume
1:11:54something that is like an outlier day
1:11:56it's not just like a random pop on a PR
1:11:58with a million you know shares traded
1:12:00you're looking for something where it's
1:12:01like this is one of the the hottest
1:12:03names of the day it's going to attract
1:12:05the most short sellers the most longs it
1:12:07has you know an institution uh you know
1:12:10possibly playing something in there so
1:12:11like you have all Market participants in
1:12:13on this and that's how you get a good
1:12:15day one and then those are the names
1:12:16that turn into good liquidity traps is
1:12:19if the volume dries up and then it comes
1:12:21back in is that correct 100% yep that's
1:12:24an excellent excellent description
1:12:26excellent description especially I mean
1:12:28you look day two you have the morning
1:12:30Panic uh that's pretty much the most
1:12:32volume then it died off uh day one same
1:12:35I mean that's a $ 30 million you know 30
1:12:37minute candle and 30 million share I'm
1:12:39sorry first few candles of the day it's
1:12:40a lot of volume the basic the basic
1:12:43profile of that is over 100 million
1:12:44shares for me 150 depending on the price
1:12:47of the stock and then on day two I want
1:12:49to see that decline to usually sub 20
1:12:52million usually sub 20 you'll see them
1:12:55drop down to three five million they'll
1:12:57go from 150 to three million the next
1:13:00day you know so I've seen some of those
1:13:03and and that is the kind of the meat and
1:13:05potatoes of that but between those two
1:13:07ideas you know I think it kind and then
1:13:09the reverse split pump should give the
1:13:11viewers a pretty good sample size of
1:13:15just some of the many things that I do
1:13:16but those are kind of the meat and
1:13:18potatoes from a bigger picture level of
1:13:20how I like to look at risk and um and
1:13:22this that this obviously there's more
1:13:24not getting into like reading tape and
1:13:26level two and um and and then the
1:13:29fundamentals themselves obviously which
1:13:32um we could talk about you know
1:13:33obviously all day but but but this is
1:13:36the meat and potatoes in terms of the
1:13:37technical analysis and it still gives
1:13:39the big picture ideas of what of what
1:13:41I'm leaning on there so so that was just
1:13:43incredibly helpful for people to see uh
1:13:45you know someone who is a long biased
1:13:47Trader in small caps that's how a
1:13:49professional is approaching the market
1:13:51dayto day of you know looking for these
1:13:53big uh you know first day Runners things
1:13:57with a ton of volume things with a
1:13:58Reason to Run they're attracting the
1:14:00attention of all the market participants
1:14:02and then if they get a a dip in the
1:14:03morning you're looking left you're
1:14:05looking for the volume to change and
1:14:06you're using that low of day as your
1:14:08risk to be able to basically trade it up
1:14:10or participate in the move or the clear
1:14:13out move up to uh vwap high of day
1:14:16pre-market highs and you're locking in
1:14:18at those levels and so even if the stock
1:14:20never ends up breaking high of day you
1:14:22can make money whereas someone who's
1:14:24just kind of stumbling into the market
1:14:26waiting for that high of day break and
1:14:27that gets rejected they're losing money
1:14:29on the exact same stop so that is just
1:14:32incredibly helpful uh for you to walk
1:14:33through that and then uh also if you
1:14:36have those names on watch but you don't
1:14:37end up trading them the first day they
1:14:39can be on watch for two or three days
1:14:41later when the volume dries up when they
1:14:43kind of go sideways or they dip and then
1:14:45you have basically it starts to creep
1:14:47back up again the volume comes back in
1:14:49and those shorts who were basically
1:14:50nailing it from day one and maybe some
1:14:52other people they now have to cover and
1:14:54like you said those shorts now become
1:14:56the demand for possibly the next leg up
1:14:58and you could trade that so those are
1:15:00real world strategies that work those
1:15:02are ways that people can uh actually
1:15:04trade small caps in a professional way
1:15:06so Roland just thank you so much for
1:15:08coming on for explaining all that and do
1:15:11you have anything to to add before we uh
1:15:13wrap up today hey man yeah no absolutely
1:15:15thanks for having me on hopefully that
1:15:17helped some people out there just uh
1:15:18give them maybe some different ideas and
1:15:20maybe some short sellers can help keep
1:15:22them safe because you know a lot of
1:15:24people are like shorts versus Longs I
1:15:25don't ever look at it that way you know
1:15:27we're all kind of retail brothers and
1:15:28sisters here and and I and you know if
1:15:31if if it may help keep a couple shorts
1:15:33safe on some situps that they have been
1:15:35you know losing on then great um and and
1:15:38for the Longs yeah just understand that
1:15:40you want to be playing more chess more
1:15:42chess and less Checkers at the end of
1:15:44the day you need more uh to your system
1:15:46you need more variables to look at you
1:15:49know the fundamentals understand what
1:15:51you're trading in the first place I know
1:15:52that's Nate's always been a big advocate
1:15:54of that you'll hear say know what you're
1:15:55you know know what you're holding know
1:15:56what you're trading absolutely if you
1:15:58don't you got no chance you know for the
1:16:01Longs especially in my opinion you got
1:16:03no chance because the the odds are
1:16:05stacked against you these things go down
1:16:07all year all the time you know there's
1:16:11nothing there's nothing more to it they
1:16:13go down all year so I'm so for the long
1:16:16side but when they do go up they can be
1:16:18absolutely explosive right they can be
1:16:20amazing so so the idea is be there when
1:16:23they're pumping be out of there when
1:16:24they're dumping and that's the case
1:16:26right uh be in with the shorts when
1:16:28they're covering and be out when they're
1:16:29when they are also shorting um all that
1:16:31good stuff I want to be there when
1:16:33they're covering I don't want to be
1:16:34there when they're short selling I don't
1:16:35want to sell with them and get out of my
1:16:36positions in the right areas and um and
1:16:39really you're being contrarian you know
1:16:41you're taking your what you thought was
1:16:43right is wrong in my opinion what at
1:16:45least for me I couldn't couldn't make it
1:16:47work to buy through high days and buy
1:16:48breakouts thing couldn't work for me and
1:16:50um and I think that there's a really
1:16:52well I don't think I know there's a huge
1:16:55fundamental reason why why it doesn't
1:16:57work because they dump there like and if
1:16:58I had millions of shares to dump I dump
1:17:00there too right and sometimes I have
1:17:03millions of shares you know because I
1:17:04buy them and that's where I sell them
1:17:06too so like you know specifically
1:17:08obviously the cheap stocks but but um
1:17:12but that's it man I I love your guys'
1:17:14show and what you're you're doing and I
1:17:16appreciate you having me on and
1:17:17hopefully we help someone out today I I
1:17:20know that we did help people out and I
1:17:21think that people are going to get a ton
1:17:22of value from this so Roland thank you
1:17:24it was a pleasure to have you on and
1:17:26we'll talk soon Hey Brother appreciate
1:17:28you we'll catch you soon thank you for
1:17:29tuning in to this latest episode of
1:17:31trading takes don't forget to hit the
1:17:33like and the Subscribe button and if you
1:17:35enjoyed this conversation please check
1:17:37out some of others with some great
1:17:38Traders thank you for watching

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