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My Penny Stocks Conference at MIT — Transcript

by Steven Dux · 6,298 words · 867 segments · language en · Watch on YouTube

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0:02[Applause]
0:04[Music]
0:05[Applause]
0:07[Music]
0:14there's gonna be something about me and
0:16how I got started where I come from and
0:19how much money did I start it
0:21what's my journey and I'm also gonna go
0:24over some stock charts analysis and talk
0:28about my recent two-month performance
0:31also I'm gonna review some strategies
0:33that is very popular in the recent
0:37market so for the last part we're gonna
0:40have some Q&A if you guys have any
0:42questions and being mad and I hope to
0:45throw all those questions and we're
0:49gonna discuss some hot tubs recently I
0:51came to United States in 20 2010 when I
0:58started in college at the first year I
1:00started with engineering major the way I
1:03think about all the educational system
1:06that you for an average person you're
1:09going to college with a huge student
1:12student loan then after several years
1:15you graduate you start working on a
1:17day-to-day job 9:00 to 5:00 and then you
1:22spend a couple years to pay off your
1:24college debt and suddenly you have a
1:26family whatever house loans or car loans
1:29have you paid off
1:30so before we can be debt-free can that
1:33you probably are four years over thirty
1:36years old so what I want to do is I
1:39don't want to do that and I always
1:41looking for some kind of opportunities
1:43to invest into somewhere as on the side
1:50so I started trading in the market but I
1:55have no idea what I'm trading so most of
1:58the time Trading ETS so I'm at first if
2:03you are trading something or you don't
2:04know you are taking a huge risk and most
2:08of people in the market they are hearing
2:10something from other people saying that
2:12hey this may be Bitcoin is really really
2:15hot or maybe some new technologies are
2:18really really hot
2:19so you're following other people's
2:22ideas and you don't really understand
2:24how they work fundamentally so when
2:28you're going into and if you make money
2:30and you think you're lucky if you lose
2:31money you're blaming me on somebody who
2:33give you that I know most of people are
2:37invest into stocks that 9 out of 10
2:41people lose money and only that one
2:43person can make money so the odds are
2:45really really small if you think about
2:47how many rich people are in the world
2:50it's probably the same percentage maybe
2:52even lower then let's start tracking my
2:56data and to see what kind of method
2:58works so I went to multiple people's
3:00that share strategies with me of course
3:04we pay for them so I'm trying out
3:06different strategies and I've at the
3:11very early stage I don't really
3:12understand that you have to focus on one
3:14specific strategies to grow your account
3:17now it was kind of everywhere I was
3:19focusing on this Sun that and
3:21turns out for the first I would say two
3:26monthly didn't have any any no growth or
3:30performance so after I start tracking
3:34data after ever I after I start focus on
3:38one specific strategies and that started
3:41noticing something that there's going to
3:43be that one pattern that works 85
3:47percent of the time and I'm going to
3:51start with a specific strategies when I
3:52like what my account they started
3:55growing to six figures seven figures I
3:58can start branch out so that is my plan
4:01then after 2 3 months I started with
4:0427,000 for four I started in 2016 and
4:13that end to now April 2018 I've turned
4:18$27,000 in to 2.8 million dollars so and
4:29then that gives you a totally different
4:31mentality that anything is possible and
4:34I am the one who achieved therefore hard
4:37work into it and I finally do you
4:40understand hard hard work pays off for
4:43last part in personal winning percentage
4:46for now is I think is around I would say
4:4980 to 85 percent thirty five thirty five
4:52percent of the time I think one of my
4:55highest winning percentage was in the
4:57summer I traded 56 trades at 154 so -
5:04now we average it up so my average is
5:06like 70 or 72 or 73 if you want to check
5:10the accurate percentage you can check
5:12out on the property I post all my trades
5:14on property and it's all verified so
5:17nothing fake going on there
5:19alright this is the chart I want to talk
5:21about this is the first pattern focused
5:23on growth my accounts significant be if
5:27you guys don't know the stock reverse
5:28split basically the stock decreases flow
5:31and increase its price but actual volume
5:34change so in March the stock trade about
5:39if you guys don't nest within the chart
5:41I'm gonna experience this beginning so
5:43volume is how much how many shares been
5:45traded on the current day and decide if
5:49the stock went from I would say starting
5:51from 4 to 12 so you went to 4 to 12 in
5:56that current day so went up to 300% then
6:01the green candle is the stock it's of
6:03course going up and read kendo means
6:05starts going down so my main strategies
6:09are shorting the stock which I'm betting
6:12a set to go go down your very long the
6:15stock basically you are buying and you
6:16wish to sell in the higher price and you
6:19make money now if you're shorting the
6:21stock you are selling the stock at
6:24higher price and you want to buy back
6:25into lower price so you make the range
6:29in between so the first spin the stock
6:33let's go back to the strategies so we
6:36can see the statute is 6 million shares
6:39in March and went up to 12 and the same
6:44after two weeks later the stock went up
6:47again you mean from 6 to 12 again so in
6:51stock market we call the dead tub in
6:54here called dirt resistance and whatever
7:00downwards we call support so right now
7:04we're gonna focus on the resistance so
7:07think about people's mentality most
7:09people in the stock market doesn't know
7:11anything that they want they want to
7:15follow other people's alerts and we
7:19don't know the fundamental of the stock
7:20your if you are blinding follow people's
7:23alerts we call that typically you go
7:26into suffering and you lose money so we
7:28call that bag holders and now think
7:32about people's psychology when people
7:36don't know anything that they're trading
7:38these specific stocks and and if I don't
7:42know anything about the stock market I
7:44see a stock is going 200 300 percent on
7:46a day what am I gonna do I'm gonna I'm
7:48gonna buy it - baby I wish tomorrow is
7:50gonna go up another 300 percent so I can
7:53make 300% in a day and now suddenly when
7:57you buy the stock then start signing
7:59goes down now what are you going to do
8:02you don't know you don't want to lose
8:03money so you're gonna hold the style
8:04until the stock comes back again now if
8:07your next few weeks to stop come back up
8:10then if you are holding stock at $12 so
8:14let's stay at March
8:16I bought the stock at $10 or $12 and you
8:19went down something went down I have no
8:21time to sell and wish the stock to come
8:23back again so I can bring I can get my
8:26money back so when the stop cubics
8:30Turner goes up to 12 what's your
8:32reaction you bought the stock as well
8:33you suddenly want to sell them because
8:35you want to break your loss even right
8:37so that will cause a certain volume into
8:41the stock now also if Emma short sellers
8:45thinking about okay I'm gonna find some
8:49kind of price to shorten - I'm betting
8:51the side to go down now I know
8:53the previous people that already treated
8:59two weeks ago and there who use that I
9:01know they cannot sell so I'm going to
9:03short into the stock first I know
9:06they're going to snow
9:07I'm not sure seller something will I
9:08will cause to start to go down also
9:10there's two factors that will cause the
9:12start to go down and I'm going to pick a
9:16risk level because when you are trading
9:18a stock you don't you're out of control
9:21because for buying so let's say if you
9:26go you can't buy a stock at two dollars
9:29and the maximum you can move is stuff to
9:31go to zero then you lose 100% now if I
9:35sure that stock at two dollars
9:37the stock goes to ten twelve twenty have
9:41to buy it back
9:42now that's over a hundred percent I can
9:44lose a thousand percent on short
9:46settings so when you are short no stock
9:48trading stock to go down you have to be
9:50you have to have a really specific risk
9:53level for you to focus on all the time
9:55so if you let that one loss to go off
9:59you can do you can blow your entire
10:01account your day and so now I focus on
10:06the the risk level on in March the top
10:10is at twelve dollars I can see the
10:13second candle or the second lines a
10:15little bit lower than the first one
10:17because that's where short sellers
10:19campaigns you know they picked that
10:22twelve dollars at their risk so if i
10:24shorted 1180 I'm risking twelve dollars
10:28because if tope tope dollars brakes have
10:31to cut my losses but for the odds of
10:33winning since you know there's one
10:38factors starts going to go down because
10:40the previous people gonna sell second
10:42you're gonna short self so as long as
10:45your risk level are really tight you can
10:47make all the range of the stock comes
10:49comes back down so I'm risking maybe 20
10:53cents to 30 cents per share and my
10:57reward will be four dollars a share so
11:00that's very very good risk reward and
11:03for this trade
11:06because it's really it's really my bread
11:08and butter type of strategies I made
11:11over almost a billion dollars on this
11:16trade and you can see the average gain
11:19of short sale Regency is 25% if your
11:23short sell if you make average around 25
11:25to 30% that's a really really good trade
11:28if you make over 50 to 70 at the
11:31accident trade so for your strategies
11:34you worked really well for me and let's
11:38go over next one so next one this is my
11:41top three strategies that I always use
11:44because in a stock market there's always
11:46going to be a balance between girls and
11:51stop coming down or dropping so let's go
11:56into detail that and so you see the
11:59first the the the stock is going
12:02parabolic parallel parabot means does
12:04that have consistent in Green Day's
12:05almost every single day I never had any
12:08kind of pullback so he didn't hat didn't
12:11drop a single day so for local companies
12:15you takes them years or 10 years 20
12:19years 30 years for them to become really
12:21big companies and what happens when the
12:24stock goes 10 1 to 10 in a day there's
12:29going to be some kind of bubble in it
12:30because people are hyping it up and if
12:33you're a - you're love but there's going
12:34to be profits in it because there are
12:38bubbles when the bubble bursts then the
12:40circles down now most of the time the
12:44penny stock sector the when the bubble
12:47bursts
12:48they typically drop almost 70% or 80% so
12:52you're always looking for that huge area
12:54to make a profit from but for short
12:58settings I said if you don't have a
13:00specific risk but if you don't have a
13:02niche or a strategy you can use short
13:07seller in the market because you'll
13:09deserve money so for this one same thing
13:15traded all over 60 million volume on
13:17that day
13:19and when people are buying it think
13:22think like this way so when people
13:25bought it the first day will tell people
13:27on the their friends or whatever and
13:29their friends join them then we'll
13:33increase the volume on that and that
13:36current day now when the stock goes
13:38higher and higher what we are knowing it
13:40and they don't know same thing the phone
13:42until the stock the start started going
13:45parabolic and people don't understand
13:47it's a huge bubble so when the stock
13:51shows first weakness people don't know
13:54to stock their if they're nervous the
13:57starts you're starting settings and if
14:00they're sending start stars shorts are
14:02recognized okay
14:04the wick needs to start coming the
14:05bubble is going to burst now since I had
14:07a decent amount of market experience
14:10I've seen this pattern so many times I
14:13can easily I can easily recognize when
14:17the witness is going to be and when is
14:19what kind of price is really hard to
14:22break so the more volume people trade
14:27latest think about like this way so the
14:28more of a so volume means how many
14:31people how many shares are buying and
14:33selling and if more shares are trading
14:36on the current day more people are in
14:40the stocks so there's less a today trade
14:44around 1 million shares per day now
14:48tomorrow through about 70 million shares
14:50a day means there's the same every
14:54single every single all of you have one
14:57shares so there's going to be 70 million
14:58people on this day people traded this
15:00either either they lost money if they're
15:03holding the stocks or they are short
15:06sitting in the stocks so sure settings
15:08are not many people short sitting on the
15:10stock showing up showing short settings
15:12on stock market and 90% of the people
15:15are buying the stock because that's the
15:17statistics of data of the stock market
15:19so you know people are typically buying
15:22this huge range on this big volume day
15:24and the more shares been traded the more
15:30bachelors will be in it
15:32so when the star shows significant
15:35weakness and you know there's so many
15:37people stuck in this area and once they
15:40start nervous they're gonna sail because
15:42the suction cannot go any higher then
15:48this huge volume huge volume day so when
15:53you start recognize weakness I start
15:55beginning short-selling
15:56I write it this talk multiple times I
16:00showed it around I think I should around
16:02the dead top 46.8 I'll cover that six a
16:06short around six to five and five to
16:08four so I think on this specific trade
16:11that made a hundred and twenty seven
16:13thousand on this shorting into your
16:16first red day and I think the total
16:19profit will be adding the factors that
16:23make sure it's six covered it shorter
16:27600 cover at five shorten shooting that
16:295.3 covered at four so I think got the
16:32total profit on this this ticker I think
16:37I made over two three hundred thousand
16:40dollars on this specific ticker in two
16:44or three days
16:49now the other thing this is a socket
16:52rated in back in 2016 as you can say the
16:57start goes 1 to 5 in 2 days same thing
17:01there's always a balance in the stock
17:03market and all the companies doesn't
17:07grow that fat because it's not realistic
17:08so whatever because in the pending style
17:12sectors all the other companies they
17:15need money for further investment for
17:18the research so what they will do is to
17:22draw money from investors that they
17:24putting more shares into the supply so
17:29if the supply will say supply is 10
17:31million and the company is gonna put
17:33another 1 million to dilute the shares
17:35and once they do the shares because
17:39those shares worth nothing so when they
17:41dilute the shares then we can draw money
17:43out front from the people who are
17:46investing to stocks so for people
17:48doesn't know how to how to trade these
17:52stocks then they either draw the lose
17:55money on short sellers the or they lose
17:58money in from the company because they
18:00died with the stocks on this one same
18:04thing the well I would talk about
18:08consolidation later in this area but the
18:11consolidation for this current day will
18:13be around $4 the most consolidating area
18:16will be most shared shaded area so ever
18:21if you are shooting from stranger if you
18:23are shooting from spiked because people
18:26like to chase or they like to buy when
18:29the stock is green they like to buy when
18:31the stock is going parabolic and people
18:36are freaking now are panic they like to
18:38panic under when people when the stock
18:41is going red but it's the opposite in
18:44the stock market for be with you when
18:46you are buying when the stock is panic
18:48you're shorting when the stock is going
18:51green or a parabolic that's that's one
18:55of the key but you have to control that
18:57very well so there's a whole lot of
18:58details in that I'm not gonna go very
19:00details on that and on this
19:03Tikaram made around this is really what
19:07one of them a very biggest gains in 2016
19:10made around $30,000 think it's in
19:15current day so at that time I can
19:19beginning to see there's a huge
19:21potential in this kind of sectors I can
19:24make hundreds of thousand dollars in
19:27really short period of not a time so as
19:31long as I can keep improving keep
19:34improving my strategies I can do better
19:37now let's talk about something that that
19:45the strategy didn't work so same thing
19:47the start went from four to twenty in a
19:51matter of four or five days now it did
19:54come back come back a little but same
19:57thing you traded around 32 million
19:59shares this day and somehow show some
20:04kind of weakness and Rick and come back
20:06to 16 or Tony so when your strategy
20:11doesn't work and when you trade it so
20:15many in the summer I want 54 out of 56
20:20trades and when that confidence getting
20:24to you you start become ultra confident
20:25when you start become overconfident then
20:29you are started going into huge you're
20:32betting huge amount of money on this one
20:35specific patterns so you don't want to
20:38ever do that because as investor as a if
20:41you have if you invest in do any kind of
20:44business you don't ever go all-in into
20:46one business you always have some kind
20:49of backup back have found if you in case
20:52something blows up and so so what I see
20:58often for people that some of my
21:01students master this technique and they
21:05one name with all their money and the
21:08start doesn't work then they take a huge
21:11loss and that loss will be your entire
21:13account so if you lose 12 or 20% 30%
21:17then you lose two hundred thousand three
21:19hundred thousand dollars in matter of
21:21one day so risk management and invest
21:27portion of your always try to invest
21:29portion of your Inc account is very very
21:32important to protect yourself from huge
21:36financial loss now for this pattern I
21:40lost thirty thousand but you just just
21:44to clarify I didn't invest all my money
21:46into this my invest about like ten
21:48percent this is when the strategy
21:50doesn't work you have to cut your losses
21:53very very quickly because now if you
21:56like if you have a huge size we have a
21:58huge amount of money in this stock if
21:59you don't cut your losses same thing as
22:01a short sale you can lose more than
22:02hundred percent can lose a thousand
22:04percent so for this specific strategies
22:08focus your risk management always always
22:12think think about how much you're gonna
22:14lose before how much you can gain people
22:18go into stock market they're thinking
22:20I'm gonna make a huge amount of money
22:23like others making $100,000 a few
22:26hundred thousand dollars in a day but
22:29for an end of the at the end of the game
22:32you have to think about your risk reward
22:35how much are risking to make how much
22:39they come if you are risking $10 to make
22:42$1 that's not even worth it's not that's
22:44not opportunities so this is all about
22:51us how to increase your odds then how do
22:56you how to increase your odds is the key
22:58of the game now this is me from say
23:05February 13th to April 13th that's two
23:09months I have made over five hundred
23:12thousand dollars in two months it's all
23:15about that's all in this two months this
23:20is one of my best performance month all
23:24I can say is it's incredible and I
23:27finally come out I can't
23:30my emotions I do everything as the best
23:33I controlled molasses really well and I
23:38think my those two-month losses will I
23:40think will only it's only $40,000 and my
23:44gang is $500,000 so invest into stocks
23:51focus on your losses instead of your
23:54gains
24:00now let's talk about the trading
24:02strategy or my daddy skinning or my
24:06habits so are you Stassi trade for daily
24:10skinny and that's true if you guys may
24:12know it's called das trader so typically
24:18I only look at the top person gainers so
24:21if you go into some kind platform you
24:24want you there's gonna be a button says
24:27top person gainer hope you wanna pull
24:28that allowed to see what's the hot
24:30stocks on the current day and there's
24:34going to be specific criteria if you
24:36have kind of some kind of strategies
24:38that fits if the size trading specific
24:40ball you'll see if the stock is trading
24:41into specific price range so that's the
24:47two that's the first two using a look at
24:49and third day I'm looking at does the
24:50stock fits my strategy this that doesn't
24:52fit my strategy I automatically drop off
24:56of my list because when the stock
24:58doesn't fail your strategies if you want
25:00to force trade that you don't know then
25:03there turns out those money you are
25:05going into the stock market to make
25:07money not to lose money so if you if
25:10you're always trying to feel you need to
25:12tray you need to four straight think
25:14about like that way
25:15and now if I after I see the stuff fits
25:19my strategies I'm going to check out the
25:23yearly or multi-year support material
25:25resistance if there's same saying any
25:28people who bought a sock in two weeks
25:30ago and something dropped I can use them
25:33as a has merit of an inch to short sell
25:35if the snot has multi-year support I can
25:37use men I can use them for people to
25:40come in start buying the stocks
25:45so this is how I pick my strategies and
25:48study habits first a very beginning I
25:51build a huge spreadsheet a huge database
25:54that tracks very specific strategies and
25:57to to see what what is the best
26:01performance and what kind of but it's
26:05popular for a recent month and second I
26:09combine my strategies las Tres can be
26:12combined to make better performances so
26:15same thing does the the strategy I
26:18talked about the first red day and let's
26:20try to talk about the very beginning the
26:22word the first slide it's a it's called
26:24bounce short and the why I made $120,000
26:29that's called first birthday so if
26:30somehow if you can combine the
26:32strategies that creatures fit for each
26:34other perfectly you can increase your
26:37winning percentage and the third is
26:41hanging from my mistakes
26:42if I know if I made a mistakes I focus
26:45on my mistakes I can I need to I need to
26:49focus on that what did I do wrong and
26:53valleys the learning process of trading
26:56of even but of course as investing for
26:59any kind of business if you fail you
27:02stand where you need to stand up where
27:04you thought you where you failed I also
27:07have to adapt into the current market
27:08environment sometimes well for the last
27:11couple months
27:11Bitcoin is very very hot and in the back
27:15in 2008 or 2010 the technology stocks
27:18are really really hot now the trade war
27:21started going around and the Chinese
27:22stocks are going up to you
27:24so always focus focus on what kind of
27:28sector is hot and when you can't
27:32recognize that momentum if you can get
27:33into you fear the first person getting
27:35to it then you can make a huge profit
27:37from no front it weighted percentages so
27:42same time talk about combining
27:44strategies and special sheets those are
27:46all factors to increase your winning
27:48percentage always track your winning
27:50percentage you will give first when
27:53going to a trade will give you a huge
27:55confidence boost before we get into a
27:59trade so it's all about confidence and
28:01that also cannot be overconfident when
28:04you feel you're already confident you're
28:07going too much so try to control your
28:13investment or portion you're very messy
28:17so also have to understand the two side
28:20of people in the market so people are
28:24some people are going along in the socks
28:26some people are shorting the stocks
28:27you're always going to stand on the
28:29right side on the most people side so if
28:32most people are selling the stock you
28:34want to draw on a short side most people
28:36are buying this like your own joint on
28:38the long side and always follow where
28:42the big money is because sometimes when
28:44the trade doesn't work you have to see
28:47what you do wrong and there's gonna be
28:50some kind of factors you understand you
28:54just wrong about people are where people
28:56are going on people going short so let
29:00me now let me give you examples about
29:04this specific stocks so same thing our
29:07bunch were just talking from 0.5 to $3
29:11and when the stock come backs against it
29:14as you can see this 2.5 act at the
29:16resistance and can you came back down
29:19and start going off this going up over
29:22this 2.5 at that point you have to cut
29:26your losses because as you can see stuff
29:29went over with your 4 so you ferry
29:31shorting from 2.5 you're you are losing
29:3360% 70% of your accounts so that you
29:36have to be really really careful about
29:38and when the stock is showing weakness
29:41and at that time if you if you took a
29:44loss same thing as other as average
29:47people or psychology if you took a loss
29:50in the market you will feel some kind of
29:54like you would I won't say a frustrated
29:59about your losses and the next thing you
30:02want to do is I want to make my I want
30:05to make my losses back now when you try
30:07to have that calm mindset
30:09I start trading training training and
30:10training something that you don't know
30:12that you and the next thing you can in
30:14the next thing you come back your
30:15account you realize you lost 50 percent
30:18your account so that I have to be really
30:22careful sometimes strategy doesn't work
30:24cut your losses and focus on or take a
30:28day off and the next day come back fresh
30:30focus on still focusing on strategy
30:32because when the stretch doesn't work it
30:35just your focus on it's a it's an arts
30:38problem if you are one in 70 percent of
30:41the time there's gonna be that 30
30:43percent happen somehow so don't take it
30:48too much
30:50don't forget don't take it too much
30:52personally just a heart problem so for
30:57the risk management for every single
30:59trade first you have to have a maximum
31:01loss second you have to manage your
31:03positions so for let's say maximum loss
31:08and for if you're a talent only $10,000
31:10your your Maximus can now be over a
31:13thousand dollars on one trade because
31:15you feel because if you take a loss of
31:18$5,000 it's really hard to come back
31:21over fifty and fifty percent fifty
31:26percent of your account so so too you
31:32have to manage the maximum loss manager
31:36maximum loss manager position size and
31:38your position size has to be equal to
31:41your maximum loss that lets me give you
31:43example if you are buying stock at two
31:45dollars you're risking 1.8 now you're
31:50risking 20 cents so if that 20 cents
31:52breaks your losses so you're all of the
31:55stocks and if your maximum loss is let's
31:58say it's a $1000 so you're using zero
32:03point zero point two times a thousand
32:07now a thousand divided by 0.2 yeah I
32:13think and I think that's right so you
32:15are you are buying 20,000 shares risking
32:18zero point two now you're buying ten
32:21dollars
32:22zero point no five done share the risk
32:26in zero point if sorry
32:29so that's so your maximum loss has to be
32:33equal your your position size you cannot
32:36be seen you can so different price range
32:38you can have different position size and
32:42you can play the guessing guessing games
32:44because if you size in too much into
32:46that consolidate so the consolidating
32:48star basically looks like a straight
32:50line so 50 50 50 50 percent chance if
32:54the stuff breaks down the stocks go and
32:56go that go that way if the style breaks
32:58out and starts gonna go that way so now
33:02if you're shorting in the fair Shooting
33:03more by in the middle you're risking of
33:05repetitions to go up going up take your
33:07chances going down now your you don't
33:11have a good odds of winning so if you're
33:13get lucky your short sale then you make
33:15a huge profit
33:15what happens if you it's the other 50%
33:19you do 60% on your account so always
33:23focus on the odds before going to trade
33:26think about how much we can wait what's
33:29your winning percentage on these
33:30specific strategies then star manage
33:32your positions now the stock histories
33:38this is really important as I said
33:40before our trade your stocks
33:42does the stock has a habit if the stock
33:45in the previous two three years he
33:48spikes alive and spikes I would say two
33:51three days now the stuff has the habit
33:54you spiked two or three days so if the
33:56stock specs on the first day you can buy
33:58and you're expecting this lets you spike
34:00in the second day stock has habit people
34:04look at the stock history to judge the
34:06stock habit then based on the stock
34:08habit you can make your judgment so down
34:13what kind of sector it it it is if
34:17typically these couple sectors are
34:19really hot in the stock market like
34:21biotechs
34:22right now it's become a couple months
34:24ago its Bitcoin related stocks missed I
34:26can go from two to one fifteen two days
34:29and what does the stock behave
34:32and so if the stock behaves always
34:38fairly stone spikes then it's gonna fare
34:40all its other specs every single time
34:43now if the start decided to go multi-day
34:46or it's like a multi-day runners or
34:48rounds first day second day third day
34:50and fourth day thing you want to
34:52expecting is to stock going
34:53boaty days instead of going up one day
34:56and start going down now I'll go over
35:02something you need to be avoid that when
35:05you are trading first you don't want to
35:07be very very emotional not same thing if
35:10you take a loss and you're feeling
35:12frustrated take a day off and come back
35:14fresh tomorrow and don't be
35:16overconfident because you'd be
35:18overconfident in your style in a cubic
35:20and if you feel missing now basically we
35:24are started making money and says I want
35:26to join this opportunities every single
35:28day I don't wanna miss every single
35:29opportunities and if you have that kind
35:32of mentality you start losing money
35:33trust me then avoid shortening on the
35:37first screen day I typically when I'm
35:39gonna stock his spike on the first
35:40screen day he has really really low are
35:43two drawbacks down so not just the
35:46statistics try to over it as much as
35:49possible and when you are shooting into
35:51a stat under 2 million flow 2 million
35:54it's considered to be really low flow so
35:56if you have a really low supply and high
36:00demand and people screw up keep bidding
36:03their price and start stacking them so
36:05it's first it's really hard for you to
36:08get out of that positions and also this
36:12bag so fast you when you cut your losses
36:14you already losing 30 percent of your
36:17account so if you're not really familiar
36:18about the sectors about the stocks then
36:20don't trade it and also when you don't
36:24have a risk level or don't have a
36:25resistance don't treat it and for stock
36:30earnings lots of people like to talk
36:32about like Tesla winnings Tesla
36:36Tesla's earnings career earnings or
36:40yearly earnings Tesla's or Amazon's
36:43whatever big company is you're guessing
36:46they don't know how they're gonna be so
36:49if you're trying to purchase it before
36:51the earnings or shortly before earnings
36:54violence comes out opposite way to 50 50
36:56percent chance so same thing avoid the
37:00guessing games now when you are also
37:03adding two losers four people four
37:09people are already got into your
37:13position so if you're losing money can
37:15see you around if you can see your
37:16unrealized start getting bigger and
37:18bigger
37:18then it says I don't believe this I
37:20think the stars can come back down start
37:23adding into my positions then your
37:26position gets bigger and bigger and next
37:29thing and you realize your position is
37:31so big you can it's out of control and
37:33you can not get out because when once
37:37you get out you lose 60% over the whole
37:38entire account now since you have that
37:41frustrating directors loss keep going
37:43then you lose everything so try to not
37:46add in two losers
37:47I stopped trading percentage same thing
37:52this is one of the one of the Vedas that
37:56I track on my spreadsheets so stop
37:59feeling percentage if if it's one
38:02strategies if there's one strategies
38:07that I'm shorting into a spike and you
38:11fades off before the market closed now
38:15they say the first day you closed around
38:18here now the second not the second day
38:20well next next time the pattern happens
38:22again it fades out right here so I've
38:24tracked so many data of this failing
38:26percentage I can know the exactly the
38:28average failing percentage is so the
38:32next time I use this average every
38:34single time I use is average to get out
38:36of my position so I can take my games I
38:38know where I'm gonna take my profits
38:41from now every single time which reaches
38:45this average I take at least 30% of my
38:47positions now if the stock we're gonna
38:49draw further I'm gonna keep writing my
38:52profits if stock comebacks up again then
38:55I'm still gonna take my profits so that
38:58tracking data will guide
39:00how to take my profits now how to
39:03recognize strengths pullback or weakness
39:06for the first green day same thing don't
39:08show in the first window as I said
39:10because the stock is really hard to no
39:12chance to come back down so when they
39:14pull back when they shows women are
39:16setting our pan whatever panic is you
39:20recognize it's a pullback it's not a
39:22weakness because the stock head can
39:23potential go up again because sometimes
39:27flow rotate sometimes people the new
39:30buyers comes in so first green day if
39:34it's a showing weakness it's a pull back
39:35it's not it's not weakness and first red
39:39day now the stock round ran the moti day
39:43rent moti days and shows the first red
39:46day and that's a weakness that's another
39:48pullback so recognize the recognize
39:51correctly about Pope acts and weakness
39:53is really really important because you
39:54know when you're gonna take it positions
39:56either go long or go short
39:58they say moti day and their extensions
40:03now momentum shift so this is where the
40:07short income comes from when the style
40:09runs multi days is very overextended and
40:12shooting the first red day and that's
40:13that's where we call the moment a shift
40:15once the once the entire style he start
40:18shifting Momentum's will be downtrend
40:20even full of at least couple days so we
40:22can write that banner ending for a
40:25potential 20 to 30 percent profits
40:31basting and consolidations this is
40:35really tough but so when the stock is
40:37basing I'm gonna keep it simple so when
40:40the stock is basing its counsel is going
40:42up a straight line and consolidation
40:45it's the same thing going out to three
40:47lines taking a technical analysis when
40:50stock breaks this consolidation is
40:51corporate Cal breaks down cover car
40:53they'll break down when the stock is
40:55having really good news then the stock
40:59has abolished factors
41:01now we're gonna stuck it but the stock
41:04is breaking down that means people who
41:07believe this is a bullish factors
41:09they're they're selling the stocks and
41:12sure sir how does it because people
41:15recognize as a bullish factor but turns
41:17out become a bearish factors so what it
41:20will do is instant shouting so the
41:21setting will be harder than usual the
41:25ration will be hard that's the part you
41:28can recognize if the factors on your
41:30favor so if the bullish factor reverses
41:35then increase the bearish factor odds
41:37now if the bearish factors reverses it
41:41turns out to be a bullish factors all
41:44right
41:45that's the whole thing about my speech
41:47thank you very much and I hope
41:50[Music]

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