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The $100 Million Dollar Catalyst Trade Setup - The Episodic Pivot Strategy With Pradeep Bonde — Transcript

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0:00So if anybody like T2108 I always tell
0:02people right and if T2108 goes below 20
0:05start getting bullish if it goes below
0:0710 you should be extremely bullish and
0:08if at all it goes into single digit sell
0:11your wife kids donkey horses whatever it
0:14is and buy the market you're likely to
0:15make money guaranteed. So [snorts]
0:17magnitude moves are these moves which
0:18are like very very aggressive 80 100%
0:21200% they happen in a few days or weeks.
0:24These are like meteors which shine
0:27brightly for a short period of time and
0:29then they might like just kill
0:31themselves or whatever might happen. EP
0:33[snorts] is what people know most about
0:35but uh in reality EP is least important
0:38setup for me today. EP 9 million and D
0:42which is delayed reaction EP these are
0:43the two main setup. What is an age? age
0:45is just like a three ways to make money
0:47in the market. Either be first or be
0:50smart or cheat. When you buy at 358, you
0:53are first, you are also smart and you're
0:55also cheating compared to people who do
0:57it in the nights. The goal is to remove
0:59every in the moment decision standardize
1:02like a factory have a process flow have
1:05a conveyor belt of ideas coming. I'm not
1:08going to chase it. No matter how good
1:09the idea, I'm not going to chase. Right?
1:11And I'm James Bond. Have you seen in a
1:14bond movie bond chasing girls or girl
1:16chase bond I don't chase I'm going to
1:19wait if I lose fine there is always next
1:22trade right now this talk on this
1:24particular day there was no news uh even
1:27if I had seen the news it was not
1:29gapping up there was no reason for me to
1:30get even look at it pre-market or things
1:33like that because it wasn't even gapping
1:35but this stock traded around 10 million
1:38shares that is when I went started
1:40researching it so I bought it on that
1:42day based on this thing and this thing
1:45based on that information I thought it
1:47will make like a 30 40% move it ended up
1:50making that in seven bars.
1:53[music]
1:56All right, welcome back everybody. It's
1:58my pleasure to introduce the next
1:59speaker of the Trailine conference Praep
2:01Bond. He's the founder of Stockby and
2:04the mentor to market wizards. And today
2:06he's going to be discussing quite a few
2:08concepts, his key uh trade setups and
2:11how to create a trade factory and a lot
2:13of the nuances that I think most people
2:15don't understand about episodic pivots
2:17uh momentum bursts and his way of
2:19trading. So Praep, uh first of all,
2:21thank you so much for being a part of
2:22this once again. I appreciate you taking
2:24the time and uh looking forward to this.
2:26Welcome.
2:27>> Yeah, sure. Welcome. Thank you.
2:30Yeah, let's dive in.
2:32>> Yes. Uh so let's start by looking at
2:35some of the core things which I look for
2:39and uh what I am uh looking for when I
2:42am doing my personal trading is I have a
2:46clearly defined thing that I want to
2:48focus on magnitude moves and not
2:50duration moves. So magnitude moves are
2:53these moves which are like very very
2:54aggressive 80 100% 200% they happen in a
2:58few days or weeks and like these are
3:01like meteors which bright shine brightly
3:05for a short period of time and then they
3:08might like just kill themselves or
3:10whatever might happen. I'm not looking
3:12for duration moves of weeks and months
3:14and all and I have nothing against
3:16people who trade that but that's not my
3:18cup of tea. Okay.
3:20uh the next thing which is like a very
3:23uh key to my uh looking at this uh
3:27whatever I'm doing every day I'm looking
3:29for situational awareness that's like
3:31absolute must in fact and I have like uh
3:35some uh things which uh somebody has
3:38made for me and uh which is like
3:40basically a quote on situational
3:43awareness which says that look if you're
3:46hitting on girls at a funeral do we have
3:48situational awareness
3:50Okay. So it's like every day morning I'm
3:53trying to answer some of these question.
3:55Are breakouts likely to work? Uh are
3:58breakdowns likely to work? And that's
4:00the starting point. So if I don't know
4:03whether breakouts are going to work then
4:05nothing is going to happen. Right? And
4:06that's the uh thing which is so
4:09situational awareness extremely
4:10important. The more I trade, the more I
4:13understand that the key really is
4:15situational awareness once you are set
4:17up because the moment you you lose
4:19situational awareness, draw downs, uh
4:22breakouts stop working, you get into
4:24very frustrated phase. So I only trade
4:27with situational awareness. That means
4:30there are times when I'm not going to
4:31put a trade or I'm just going to put
4:33some few 100 shares or some position
4:37just to check the water and I'm not
4:39going to be really excited.
4:42uh there are some absolutes which I have
4:44created for myself which are like a
4:47always buy a first day of a breakout and
4:49as early as possible because if you're
4:51going to be buying breakouts the earlier
4:53the entry the better it is because if
4:55you enter early by the end of the day
4:57you have a buffer you can move your stop
5:00to break even and the trade is free if
5:02you enter late your stop is going to be
5:03wider so everything when I talk about my
5:06trade factory is based on these
5:08principles these are like the
5:10foundations for everything. So I like
5:13really really focus on the first half an
5:16hour or 1 hour of the market open
5:18because if I can get in there then it's
5:20all easy.
5:22Uh whenever I'm buying breakouts or
5:24anything which I'm doing like and if I'm
5:26going to buy any stock uh I must I
5:29always look for tightness. I want to see
5:31two tight days or three tight days or
5:33four tight days. And that's like in a
5:36one of the ways in which you can get
5:37closer stop because if a stop is having
5:40a very tight action then the explosion
5:43makes sense buying breakout makes sense.
5:45So uh that's one or a negative day. uh I
5:50always look for young setups and moves
5:52which is like uh one of the problems
5:54which I see in trading uh when I see
5:57outside traders and even some of the
5:59stock be members they're buying moves
6:01which are like in a late they're buying
6:03setups which are like stale they're
6:06buying setups extended uh so the more
6:09you buy extended setup it's like in a
6:12you're going to be just not so uh we
6:16actually have a saying on stock beside
6:18be a cougar
6:19and go for young things and not like in
6:21a date older things right and basically
6:24uh always look for catalyst this is a
6:26new thing which I added more and more
6:28now uh even if I'm buying a regular
6:31breakout I always want to find what is
6:33the catalyst mean like is there a reason
6:35why this should go up right there are a
6:37lot of prettyl looking breakouts which
6:39happen and you buy and nothing happens
6:41because there's no reason why the stock
6:43should go up right and I so always look
6:45for some catalyst it may not be a major
6:47catalyst it It might be minor catalyst.
6:49It might be a sector. It might be a
6:51theme. It might be some recent news. Uh
6:54it might be government policy. But
6:56something has to be there for this thing
6:58to move. That's one thing which I have
7:01like really added in the recent years to
7:04improve the win rate. The second thing
7:06which I added also which is related to
7:10this is whenever I'm buying I'm always
7:12thinking okay who is the fool or the
7:15next person to whom I can sell this to?
7:18Right? If I can articulate look at a
7:20there are these people who will be
7:22buying this because it is going to reach
7:23this resistance level or they are going
7:25to re buy this because they are like you
7:28know looking at some sort of a level to
7:30buy or things like that then I can sell
7:33to somebody right if I cannot articulate
7:36and figure out who's be the next set of
7:39buyers for this uh then I'm I'm the only
7:42fool who's buying right and this is a
7:44greater fool theory right uh we buy make
7:46money by selling to somebody who doesn't
7:49understand or who buys on third day or
7:51fourth day or who follows a newsletter
7:54or uh who is like kind of believes in
7:56some uh buy points which are like above
7:59your entry points. So that's another
8:01thing which I'm always and this is why I
8:03track some of these things on Twitter
8:06and all other traders and I look at what
8:08where are they going to buy where are
8:10they going to get excited about and then
8:12the game is to try and buy before them
8:14and sometimes sell it to them or uh they
8:18come in and the move gets magnified so
8:20that's another thing which I always look
8:22at I always ask this question okay look
8:24okay if I buy this whom am I going to
8:27sell this to right and then always look
8:30for opportunity to size up and this is
8:33uh like you know one of the key nowadays
8:36which is like the more funds I have to
8:38trade uh it becomes more difficult to
8:41trade this small $3 $5 or some of the
8:44other moves they are very very
8:45attractive and they look very attractive
8:48but I can't size them so I exclusively
8:52focus on more fund quality stocks and
8:56fund quality I define it as something
8:58which is owned by buy 100 plus funds or
9:01thousand plus funds. So that way you're
9:04buying something and there are enough
9:06opportunities in a fund quality place
9:08that I don't have to go into the lower
9:10quality. I don't mind like there is a
9:12lot of money in this low uh lower
9:14capitalization nano cap, micro cap and
9:17small caps. But the problem is you
9:19cannot size up and if I cannot size up
9:21uh then you cannot larger amount of sums
9:25of money uh by doing those kind of
9:28trading. that yes for somebody else who
9:30has a smaller capital base that's a very
9:32nice opportunity I also built my capital
9:35to where it is by doing those kind of
9:37things but the game has changed for me
9:39things have changed life is different
9:41now so I'm looking for fun quality thing
9:45and also sizing up uh the really this
9:48thing is once you age is how much can
9:50you size up and where are the
9:52opportunity to size up and that's every
9:55day I look for opportunity where can I
9:57size up where can put big position
10:00uh always develop new agents and
10:02variations. Uh expand your playbook. Uh
10:05most people outside of stock B and all
10:08they know they think that I am trading
10:09EP. EP is the least important setup for
10:12me nowadays. Right? And I have a
10:14variation of EP which I trade and it
10:16gives me more opportunities than EP
10:18because I know the age on EP is less and
10:22less and gaps are too high. So I created
10:26a variations and there is no end to
10:29creating variations uh because you
10:31cannot depend on one age. Ages
10:34deteriorated, deteriorate, ages evolve,
10:37ages become too popular. Uh they make
10:41entries difficult. So I have an
10:44variations of EP which is delayed
10:46reaction EP or EP9 million or some other
10:49wages which are not yet in public domain
10:51because we don't want the ages to
10:53deteriorate
10:55and uh the one of the things always
10:58study 20% and 50% moves. This is like an
11:01absolute rule as far as I'm concerned
11:03because I make money by buying moves
11:06which will make 20 or 50% move in a
11:08short period of time. So I want to study
11:10them obsessively to see how they move
11:13and get so every day I study 20% plus
11:17every day I study 50 stocks which go up
11:1950% plus in a short period of time and
11:23uh this I learned from my previous uh
11:26career where I used to I worked for
11:30advertising for uni liver uni liver is a
11:32market leader in the world in detergent
11:35underarms deodorants and all still today
11:38every day they like in a catch hold of
11:40some 500 people and study how they put
11:44where did how much deodorant they did
11:46they put in what happened uh and things
11:49they're obsessed and the reason uni
11:51liver tells you when you join uni liver
11:54that the day they stop obsessing about
11:56understanding consumer the game is over
11:58because somebody is going to outsmart
12:00them so same way 20% 50% that's like
12:03golden standard as for that and all my
12:05learnings all setup ideas entries exit
12:08Everything comes from that study. And
12:11then age turnaround and rotation. Uh I
12:16believe that real money is in how
12:18frequently you can turn around your age.
12:21The more frequently you can turn around
12:23your age, uh the more better it is
12:26rather than looking for longer luration
12:27ages. So that's the core part of the
12:31philosophy for whatever I'm going to go
12:33through in terms of my trade factory.
12:36Okay. So
12:38using the principles which I discussed
12:40with you and those foundation ideas or
12:43that is my uh really my business defined
12:47as what I'm trying to do and what are
12:49things important to me. What I operate
12:51on a daily basis is a trade factory
12:54which is like a daily process flow which
12:57takes all things into consideration.
12:58It's a continuous loop. Uh there are
13:01things which I do pre-market. There are
13:03things do I do at the opening. There are
13:05things I do at 1:30. There are things I
13:07do at 3:00, 3:30, 3:58 and so on and so
13:11forth. It's a wellthoughtout trade
13:13factory to trade the kind of setups
13:16which I want to trade and the ideas
13:18which I want to trade.
13:23So it's a defined process and setup
13:25tools run on a continuous loop designed
13:28to consistently find trades. The goal is
13:31to remove every in the- moment decision
13:33standardize like a factory have a
13:36process flow have a conveyor belt of
13:39ideas coming when the ideas come in. uh
13:42there is some quality control process
13:44context there is a set of rules or set
13:48of like criteria a stock needs to meet
13:50and everything is uh then pre-planned
13:54there is nothing which I'm doing which
13:55is like on the fly basically right trade
13:58the tools execute the plan and you just
14:01follow the trade factory uh anything
14:03which is outside trade factory I don't
14:05even care about I don't even take a
14:07trade so the trade factory has two
14:10conveyor belts
14:11or two sections. One is which is home
14:15runs and mini home runs. These are the
14:18setups which I trade which can move my
14:20account in one trade to 20% or more uh
14:26or sometimes like even more uh in terms
14:29of it can even move uh more than 100% in
14:32one trade. So these are different
14:34quality of ideas or they have a
14:36magnitude which is greater than a normal
14:39kind of a magnitude which is going to be
14:41uh possible. So for this like I say uh I
14:45trade a set of setups and not just one
14:48setup. EP is what people know most about
14:52but uh in reality EP is least important
14:55setup for me today. EP 9 million and D
14:58which is delayed reaction EP. These are
15:00the two main setups. out of that like
15:02really uh EP9 million produces the most
15:06returns for me and D which is a
15:08variation of EP9 million which produces
15:10most setups basically and I'll go into
15:13detail as to what those setups are but
15:16uh so for these I run scans so the scans
15:19are EP9 million and DAP so EP9 million
15:22is a scan where I look for a stock which
15:24has made more than 9 million volume
15:26traded for that particular day is a scan
15:29which I run to find stocks which have
15:32done that in last one month and then I
15:34look for uh lowrisk entry on them and
15:38I'll get into details on explaining this
15:40whole thinking behind why I'm doing this
15:43what what is the logic behind this setup
15:45once I'll go through this particular
15:47slide now but I'm not dependent on mini
15:52home runs and home runs only because
15:54there is like an whenever you're doing
15:57this kind of a trading uh because of the
16:00kind of stocks which are in the way the
16:02kind of moves they make you need wider
16:04stop you need 8 10 20% kind of a stop
16:07sometime in order to trade these kind of
16:10moves so I also trade something which I
16:14call as singles or base heat which are
16:16like pattern based this is all catalyst
16:18based this is pattern based okay in this
16:20I'm just looking for a trade which is
16:23like going to move my account half a
16:25percent or 5% uh in one trade so if I
16:28like say buy a breakout and if it was
16:30like say 20% of my account and it goes
16:33up 25%. It's going to move overall
16:35capital by 5%. Or I bought a stock 20%
16:39and it just went like in a 10% I'm going
16:42to make 2% but I'm happy taking those
16:44trades because those singles add up and
16:47they give me the buffer to take a trade
16:49with a size here. If I don't do single
16:52I'll never be able to do size. So it's a
16:54combination of these two approaches and
16:56they are same thing essentially all of
16:59this is breakouts or anticipation it's
17:01just different kind of opportunities or
17:05expansion of the age into different kind
17:08of it's like and I always tell people on
17:11the side saying look uh coke diet coke
17:15zero coke orange coke lemon coke and if
17:18you go worldwide there are 70 different
17:20varieties of coke but at the end of the
17:22day it is just water, some flavor, some
17:25caffeine and some uh coloring, right?
17:27And same way these setup ideas are
17:30variation but they appeal to different
17:32kind of market environment or they give
17:35you a different kind of an opportunity
17:37to make money. So for these I have a
17:39scans like combination bullish and
17:41bearish which I run during the morning
17:44sessions. Then I have scans for
17:45anticipation which I run during the
17:48afternoon and I have a reversal bullish
17:50as a setup which is like a setup idea
17:53where I look for something which is
17:54going to be a reversal. So these this is
17:58the essence of the trade factory. Trades
18:00can come from here trade can come from
18:02here and then I take those trade. So
18:05let's go and look at basically the idea
18:09of EP9 million because that's like the
18:12main thing. Uh I'll start with EP and
18:14then I'll go into EB9 million because
18:15there's a lot of confusion. People don't
18:17understand or they have their own view
18:19about this. I just want to clarify
18:21things. Okay. Any questions before I go?
18:26>> No, not yet. I think it's good.
18:27>> Okay.
18:28>> Hey everyone, just want to jump in here
18:29real quick and let you know that this
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19:48That's dv.com/mpodcast.
19:50And with that, let's get back to the
19:52interview. So let's go back to this uh
19:55what I like to do use here, right? And
19:58so let's like kind of create a slide and
20:01let let's try and do this uh this way,
20:03right? And so there is EP
20:07uh there is EP 9 million and then there
20:10is
20:12the
20:17delayed reaction EP right and basically
20:20and then I have some other variation
20:21which I don't want to get into because
20:23the age might erode so we don't want to
20:25talk about it but but EP is a catalyst
20:28based trade
20:34and unneglected stock
20:41and by definition it is a gap.
20:45So let me give you an example of an EP
20:47which I readed uh this year at the
20:50beginning of the year and that was uh
20:53let's go to this
20:58okay CRCL
21:02okay so here circle IPOed it went into a
21:07long
21:08period of neglect nothing was happening
21:11and this is the day when there was a
21:13catalyst and from this catalyst which
21:16was a earnings as a catalyst and all and
21:19then the stock made a move up around 7
21:2181% and it made that move in just 15
21:24bars right I didn't rate circle itself I
21:27used the uh ETF which is CRCA to magnify
21:33my returns on this particular trade so
21:34CRCA which is like an so that made 70%
21:38this made 206% so I use nowadays if
21:41there is an substitute I use that
21:43particular now in this particular Okay,
21:44there was a clearly identifiable
21:46catalyst which was earnings. Earnings
21:48was blowout. The stock mets of EP which
21:51is like it should be neglected. There
21:53should be a massive earning acceleration
21:55or some catalyst and then the stock
21:58exploded in this particular case because
22:00I had identified EPS as a trade are
22:04identified pre-market
22:06right because they are based on gap they
22:09are based on catalyst. I knew this
22:11pre-market that this is stock is gapping
22:13up and what is the catalyst right so
22:15this particular stock made a big like
22:18because I took circa I made like a lot
22:20more and so here I entered early first
22:24thing in the morning as an what is
22:26called as an opening guarantee price OPG
22:28order and then
22:31subsequently like an it kept on going up
22:33kind of a thing so this is a kind of a
22:35trade where I research a stock
22:38pre-market I go through a certain
22:40criterias which I have which is like it
22:42should have a massive catalyst
22:44acceleration in sales or acceleration in
22:46earnings or some theme or something like
22:49that but it's very clear before I enter
22:52this that this is a gap and there is a
22:55catalyst and this is like okay fine this
22:58is like something which is uh I can
23:00identify the information is there to
23:03identify this particular thing and I can
23:05enter based on that that's EP that's why
23:08can I say something where there's a
23:10clearly identified and it's a gap. Now
23:13EP9 million is a very different idea and
23:17in order to understand this so if
23:20anybody if you have any questions on
23:22this the way I do it is like there is
23:24this set of criterias which I have which
23:27is magna 53 cap 10x 10 which is like a
23:31qualifying criteria uh which I use to
23:34qualify an idea. So in the morning if I
23:36get an idea I look at whether it has a
23:38massive acceleration or a massive
23:40catalyst that is m g whether it is
23:43gapping up n whether it is neglected and
23:46neglect can be in various forms. It can
23:48be a price neglect. It can be analyst
23:50neglect. It can be a earnings neglect
23:52fund neglect uh blah blah blah news
23:55neglect and all and five is it should
23:57have five days plus kind of a short
23:59interest but this is not essential. This
24:02is good to have because it makes the
24:04move more explosive. And three is three
24:06plus analyst raising their price target.
24:09And then capitalization below 10 billion
24:12and IPO below 10. If that is there that
24:14adds more to the explosiveness of this
24:17thing. When I go through this and I
24:19research and nowadays research has
24:21become very easy because I use Gemini, I
24:23use Gro or one of the AI kind of a
24:27tools. So I try and figure out for every
24:30EP which I buy I figure out what is
24:33likely move it it is going to make. So
24:37when I looked at this I said like based
24:38on the all the information which is in
24:41front of me this is going to make 50 to
24:47100% more
24:49right
24:51and that is based on years of experience
24:55studying things like this and all and
24:56that stock ended up making that kind of
24:58a move uh in pretty fast right and this
25:01is what is a magnitude move is all about
25:03right and it made that move of like in a
25:0670% in just like in a 14 15 days and
25:09this is what I call magnitude moves
25:11which are like an they are not designed
25:13for duration if I kept holding this
25:14trade I would be like in a not be even
25:17making money on that right so this is
25:19just per magnitude now so this is uh the
25:23thing with this kind of a catalyst based
25:25kind of a trade is the frequency with
25:27which this happens is very low you get
25:31one trade and after that the next trade
25:34might come in after like 1 month 2
25:35months 3 months. In a year, you're
25:38likely to find only 3 to 10 trades like
25:40this.
25:43Unfortunately,
25:45I can't run my life and my uh thing with
25:48three to 10 trades. Even though they are
25:50very explosive, I made good money on s
25:53uh this trade really like it was banger
25:57came out in the beginning of the year,
25:59first month of like it was in January or
26:01something, right? And so it uh just like
26:03an hour in the beginning first quarter.
26:05So it made like a good uh this thing but
26:07I cannot depend on this because the next
26:10trade comes in very infrequently. So
26:12frequency is an issue. So this is why I
26:16trade this if it happens like just
26:18yesterday there was another EP which
26:20happened which was BFL
26:23uh butterfly network you see uh it had
26:26this catalyst AI mid journey and it like
26:30show showed up gapped up uh had some
26:32sort of a thematic catalyst or catalyst
26:35theme AI which is a big theme nowadays
26:37right so but it doesn't happen
26:39frequently so how do you solve that
26:41problem of frequency so I created this
26:45set of idea called EP9 million and when
26:47people hear about EP9 million they are
26:49like and they dismiss it and which is
26:51very good because I 100% agree with them
26:55that there is nothing in it and they
26:56should not pay attention to it and this
26:59is just stupidity because that's exactly
27:00what it is okay uh it's very good if
27:03people don't understand ideas and they
27:05don't get excited with it because that's
27:08where the age is right and basically but
27:10here is my logic and thinking This idea
27:14started by reverse engineering when I
27:16looked at uh EPS and when I looked at
27:1950% plus moves there are lot of stocks
27:22which are making this 50 100 200 300%
27:25move but you could not identify them by
27:27just EP or catalyst because this was not
27:30apparent.
27:31So to me AP 9 million is a scanbased
27:35setup
27:37while
27:39APA is a news-based setup while this is
27:42scan based and most of the time non-gap
27:45setup
27:47and I'll show you an example and you'll
27:49understand much better. Right now here
27:52is what trade which I did couple of
27:54months ago or a couple of weeks ago
27:57sweet green.
27:59right now this talk on this particular
28:02day is there was no news uh even if I
28:06had seen the news it was not gapping up
28:07there was no reason for me to get even
28:10look at it pre-market or things like
28:11that because it wasn't even gapping up
28:13but this stock traded around 10 million
28:17shares that is when I went started
28:20researching it and I found out that
28:21there is they have a new product new rap
28:24new CEO and as a result of that like on
28:28social media and all people are growing
28:29crazy about this thing. So I bought it
28:32on that day based on this thing and this
28:35thing based on that information I
28:37thought it will make like a 30 40% move
28:40and uh the trade it ended up making that
28:43in seven bars. Another trade which I did
28:46which is again example of EP9 million
28:48which I would have never found using my
28:51framework of EP was this NFS couple of
28:54weeks ago like again this was gapping up
28:57like not even like a 1% or 2%. So it's
29:00not even something which I even noticed
29:02in pre-market. Even though I saw some
29:04news item about NFAS, it wasn't gapping
29:06up 5 10% for me to get excited. Then I
29:10saw it here in my scan. Then I started
29:13researching. They had a new product,
29:15right? I said like okay researched that
29:18new product has something to do with
29:20like AI and the data centers and things
29:23like that. So I said like this makes
29:24sense and now you may this trade this
29:27stock went up 88%. in some 10 bars. I
29:31would have never found this trade using
29:33the EP logic but my different set of
29:37idea finds this trade and that is
29:40exactly what so as a result what I would
29:42find 3 to 10 opportunities I am able to
29:45find 300 to 500 opportunity most of the
29:47time it's my limitation in terms of
29:50capital or like you know how many ideas
29:52can I take in a day kind of a thing uh
29:54which limits the number of ideas which I
29:57can get it through so let's see the
30:00logic of EP9 million which is like
30:03derived from uh doing some back uh like
30:07going through hundreds of examples of
30:09stock which made big moves like this NFS
30:11kind of a thing.
30:15Uh currently in the US market there are
30:19uh uh so say how many stocks are trading
30:22in the US market? There are 6,500 stocks
30:25trading in the US market. Okay, there
30:29are 6,000
30:31ATFs which are trading in the US
30:32approximately. I just rounded up, right?
30:35And there are around say around 400. So
30:39let's round it up to 500 ADRs which are
30:42trading in the US market. So added
30:45together you're looking at total of
30:48around 13,000 stocks or ETFs or ADR
30:52which are trading in the market on any
30:54given day. Right? out of these 13,000
30:58which are trading
31:00uh
31:01when I look for the my scan condition
31:04which is looking for stock which have
31:06traded volume of more than 9 million
31:10shares
31:12on any given day you get only around 200
31:15to 250 or that is like out of this 1300
31:202% of the stocks and most of the days
31:22it's not even 250 it's less than 250 so
31:25less than 2% % of the stocks trade
31:30this kind of a volume. Now okay there
31:33are stocks which trade that kind of a
31:34volume every day but NFS never trades
31:37that kind of or what I'm saying is that
31:40these are the stocks which for whatever
31:42reason on that day traded in terms of
31:44total volume traded in the top 2% of all
31:47the stocks trading in that particular or
31:48ETF trading in that thing. So I want to
31:51know if a stock is trading that much why
31:54is it doing that there must be some
31:55reason I don't know right there must be
31:58like an there is always something there
32:00or like there must be a thing and then
32:03all that I do is then I investigate and
32:06if I find a good enough reason I go into
32:10that particular trade and it finds you
32:13so many trades which make 20% 40% 50%
32:17sometimes 300% move which you would ever
32:20find by using this framework.
32:23So what it does is it expands your age
32:27into like an and then the theory of age
32:30rotation and things like that comes into
32:32place. So this is
32:37able to find things which I would never
32:39find using like I will give another
32:42example and I have hundreds of example
32:44because this happens so frequently and I
32:45don't even depend on this nowadays. If
32:47it comes in, good. If it doesn't come
32:49in, I'm not worried. If I don't trade a
32:52EP ever again in my life, I'm perfectly
32:55okay. There is no problem. There is
32:57still so much opportunity in the market.
33:00Right? On that day, a couple of weeks
33:02ago, I saw all these stocks having EP9
33:06million, right? And a Dal is showing up
33:09in my scan, right? And that day, all
33:12these airlines were showing up. So,
33:14there was information here, right? and a
33:16DAL, UL
33:18all of them are trading they don't trade
33:20that kind of a volume right and then
33:22they are trading in the 2% all that I
33:24did is like and I bought every single
33:26airline stock which was meeting my
33:27criteria that day I bought like AL ul
33:31because I just wanted was not sure which
33:34one uh love right all of the love didn't
33:37had EP 9 million it had like almost like
33:39you know 7.9 million it missed by that
33:42all of them so it was very clear and I
33:43have seen this multiple times when a
33:46sector is about to start a move or a new
33:47theme is about to show up uh it shows up
33:51with volume and the other question one
33:54has to ask is if something is attracting
33:56this kind of a volume who's buying it
33:58because most people don't even pay
34:01attention but this is institutional
34:03footprint right this is very clear on
34:06that day institutions were getting into
34:07these airlines and so like if you see
34:10JetBlue every one of them was having um
34:14this EP9 million and I just like I ran
34:17my scan I saw them yeah and all of them
34:19went on and made 20% in three to five
34:21days and that's how this EP9 million as
34:26an idea
34:28so there is a variation which I created
34:32of EP9 million now because lot of time
34:34by the time I research and identify
34:36sometimes they have ran up too much or
34:38sometimes there is a stock which is a a
34:41catalyst but it gaps up too much and I
34:44don't want to chase gaps like and I I
34:46did that in early in my career when I
34:48was an idiot or when I didn't had enough
34:50information or I didn't understand so I
34:53was taking gaps of 30 40%. I don't want
34:56to chase gaps now. Right? So if there is
34:59something which has a EP and it gaps up
35:01too much, I just like wait for it to set
35:05up as a
35:08DP. Here this stock gaps up and it gaps
35:12up like some 53%. I'm not going to chase
35:14a 53% gap. I'm done chasing that. At
35:18some stage I used to chase these things.
35:20I waited and then this is showing up in
35:23my uh scan EP9 million also. I know what
35:26is the catalyst. I know there is a
35:27genuine catalyst and I waited and I
35:30entered on this day and then the stock
35:34still made 87%. And I would have got
35:37stopped out if I had bought on this day,
35:39right? Which is what happened to many
35:41people. Or there is another stock which
35:43is a very good trade and I could do it
35:45with size because it was institutional
35:46quality stock which I did which is a
35:48DAP. Here GLW comes out with earnings.
35:51Earnings is blowout right and it gaps
35:54up. Uh and then I looked at like it
35:57showed up in my EP9 million scan. I
35:58looked at the volume. volume was one of
36:00the uh two years three year high volume
36:03and things like it's a institutional
36:05quality stock owned by thousands of
36:07mutual fund and all so and then it had
36:10this kind of a thing so this is where
36:12like I was so for a D which is just a
36:16variation of that EP 9 million I wait
36:18for some sort of a orderly pullback I
36:20wait for some sort of a
36:24thing like this so this is where I was
36:26like and I put it in a watch list next
36:28day morning when it started breaking out
36:31I was there within like the first five
36:33minutes as soon as it started breaking
36:34out because I had done research I knew
36:36this I'm going to buy and I had like and
36:39don't even ask how much size I had uh
36:41because the stop was so close right
36:43because you're you literally like
36:45sitting there like a hawk watching this
36:47and this is uh you get in the first 1%
36:502% of a move you just like loaded and
36:53then the stock made a move of around 43%
36:56in 10 days or 15 days or 18 cars right
36:59basically so this is the framework for
37:03EP9 million and D which is basically I'm
37:06sc looking at the non- gap or the things
37:09which I could not find EP and there are
37:11more these kind of opportunities in the
37:14market in my uh studies and in reality
37:17than this opportunities so this has
37:19become my primary setup
37:27and this
37:28Basic D is just a variation of that or
37:31for a D what I look for is something
37:32which did EP9 million
37:36in last one month
37:39and then I wait for a better entry very
37:41low risk entry on it like just to give
37:44you an example from yesterday uh this
37:47octa which had a
37:51here
37:53okay this is where like yesterday is
37:56when I bought it like because it was in
37:58my watch list. I was watching it after a
38:00pullback and again this was like EP9
38:02million. So I can qualify it and do
38:06things uh like this. Right? So that is
38:08the logic behind this particular setup
38:12idea which is to focus on stocks which
38:15trade in the top 2% volume on that
38:18particular day and find out why what is
38:21the reason and especially if they're are
38:22non- gap kind of a thing and then use
38:25that information to make a trade and
38:29then go into it. So that's the thing
38:31basically right and so uh even though
38:34people say oh there there's no magic is
38:36you're just quick scanning for yeah okay
38:40I want people to be continue to believe
38:42that way because the less people
38:44understand the setup will continue to
38:47work right so that's the thing which is
38:50uh on EP9 million and uh this thing so
38:54let's go back to our trade factory and
38:56see so this is so this is to find home
39:00runs and mini home runs and I have some
39:02variation of these which I don't want to
39:04talk about because uh we don't want to
39:07give out all the hes right and basically
39:09now on this side it is a very different
39:11thing this is just a pattern based and
39:13everything here is catalyst based so I
39:16researched on that day what was the
39:17catalyst for sweet green or I researched
39:19what was the catalyst for NFAS or uh
39:22anything which shows up there I'm going
39:25to go and research and if there is a
39:27valid reason and that goes back to the
39:29original first slide which I showed you
39:31always find a reason for a trade and
39:33when I find a reason like on that day
39:34when those airlines there was an
39:36apparent reason right the Iran thing was
39:39getting sorted or there was a rumor of
39:40Iran getting sorted so you always when
39:43you look when that volume happens I'm
39:46always looking at what is the reason and
39:48if there is a good enough reason then I
39:50go into it and many times it allows you
39:52to do a large size that's the advantage
39:54of doing this and then singles is just a
39:57pattern based trade uh something shows
40:00up and it's a very good like in a
40:02lowrisk entry point or something which
40:04is like in a this This is a brainless
40:07activity. You just need to learn the
40:08pattern and do this day in and day out.
40:10I'll show you an example of this also as
40:13uh something which is called a momentum
40:15burst which is 3 to 5 days move in which
40:18stocks make 8 to 20% if they're lower
40:20price they'll make even 40 50% move. uh
40:23is like very simple kind of a trading
40:25this is so here you look at this
40:28particular thing right and here
40:32so on this particular day um I run
40:35anticipation scan also which is looking
40:37for this kind of patterns so this was
40:39like showing up like this and next day
40:42it breaks out like this I don't even
40:44know what this company mean I do know
40:46what this company does but just a
40:48continuation momentum burst that there
40:51is a momentum the first like but I do
40:53have a qualifier uh everything has a
40:55qualifier and context so for this
40:58particular setup which is what we call
41:00as a momentum burst my qualifiers are
41:03the if I'm going to be buying this as a
41:05continuation setup which this was the
41:07first leg should be 15% plus right the
41:10first leg should be linear orderly uh
41:13the pullback or the consolidation should
41:16be less than 10 days uh ideally between
41:203 to 7 days works test. So in this
41:22particular case this was a six day
41:24consolidation and during the
41:26consolidation you should see series of
41:28tight bars which is like three tight
41:30bars or two tight bars at least minimum
41:32two three is better and sometimes four
41:34and then the stock should break out and
41:36then volume and it should close near
41:38high. Now these are trades which are
41:40just go up for 3 to 5 days. So in this
41:42kind of a trade I buy it on this day I
41:44sell it by third or fourth day 80% I'll
41:47sell I'll just keep a runner 20% move my
41:50stop to like and just like you know here
41:53and in case it makes more it's okay if
41:56it doesn't I am fine right and I made my
41:59money and this might look like a small
42:02uh move to people but like in 3 days the
42:05stock made 18%.
42:08So it still moves your account right and
42:1018% in 4 days if I can do this
42:15100 times in a year 300 times hey like
42:19and I don't need to find one long move
42:20right let others chase long so this is
42:23an example of this this is also an
42:25example of what is called as
42:31continuation setup or thing uh which is
42:33like anticipation setup so I scan for
42:35this and then I look for this. So if I
42:38find something like this, I'll put it
42:40either in a watch list or I enter this
42:42uh on at around mark before market
42:45close. I do this work at around 3:00 and
42:47I enter this at around 350. So that's an
42:49anticipation setup. Now uh let's look at
42:52an example of a reversal bullish right
42:55and I think an no might be an example
42:58here.
42:59So uh this is like an this is what is
43:02reversal bullish kind of a thing. Uh so
43:04I have a scan which looks for reversal
43:06bullish. So on this particular day if
43:09you see it showed up in my scan these
43:11are all scan based right and there is
43:13not much of a brain involved just a
43:15qualifier. So uh this showed up in a
43:17scan on that day. It's reversal bullish
43:19setup right and I which is just an
43:21exhaustion. So there was a selling and
43:24selling exhausted so it closed near high
43:26right and it's an exhaustion setup I
43:28call it like and minor exhaustion there
43:30can be major exhaustion minor exhaustion
43:32in the context of where this stock is it
43:34has some catalyst and all this was a
43:36pullback and then so you buy this just
43:39before the close I run this scan at
43:41around 3:00 3:30 and then whatever shows
43:44up I buy and this is what happened next
43:46day right stocks make 11% in one day
43:50just what is my risk hardly anything
43:52because I bought it at 358 put a stop at
43:55half of this day and next day it just
43:57gaps uh it just goes and makes 13 14%.
44:00you sell them in two or three in fact I
44:02sold 80% on that day because 13% more
44:05there is no way I'm going to let it like
44:07and go like that right and that's way
44:09beyond what I was expecting on that kind
44:11of a trade and that's the end of the uh
44:14thing these are just pattern based uh
44:16singles you move your account half a
44:18percent 1% but thousands of trades add
44:22up kind of a thing basically right
44:24>> so
44:25>> is that typical for your um sorry to
44:28jump in is it typical to put your yeah
44:31sorry is it typical to place your stop
44:33at the the half day point that's your
44:35typical thing for anticipation reversal
44:37bullish setup
44:38>> uh for anticipation I might have a
44:40slightly uh like an stop might be like
44:43an essay but the anticipation setup
44:46which I focus on are they are like up or
44:48down less than 1% and most of the one
44:51which I select are like even up or down
44:53less than 4%. So my stop is around 1%.
44:57So even [clears throat] though the stock
44:59stop stock is not so if they just like
45:01you know explode sometimes if it is a
45:02high price stock and I have had cases
45:05where the stock is priced at $300 and it
45:08is up or down 20 cents and then I buy it
45:11and put a $1 stock and next day it goes
45:13up $18 $19. So it's just
45:16>> uh very short-term uh
45:19free money kind of a trade, right?
45:21basically
45:23>> and I have reversal which I'll show you
45:25later [clears throat] of these kind of
45:26things.
45:27>> Yep.
45:28>> Yep. So for but for the reversal bullish
45:30where it's a little bit more of a wash
45:32out
45:33>> there you typically do like
45:36some setup. So there should has there
45:38has to be some sort of a wash out. There
45:40has to be some sort of a
45:42>> uh selling cascade two or three day
45:44selling cascade and then there is a
45:46reversal bar. that reversal bar in
45:48Noacur NVCR looked very clear and all
45:52sometimes like and it is uh I can show
45:54you another example Costco and this is
45:57the beauty of these kind of trades right
46:00and basically that uh this trade which I
46:03did uh on this particular day was you
46:07know when you look at it at this stage
46:09it looks like this was a failed trade or
46:11like it didn't even make money kind of a
46:14thing but uh this is what I saw
46:17Right? This was the reversal bullish uh
46:20on that particular day because this is
46:21what I scan for. So I entered just
46:23before close 358. Now my stop was very
46:26close. Right. And I was just like going
46:28with like uh this is a,000 uh this is
46:31$860 kind of a stop and then what
46:34happened is next day it started going up
46:38right from the word go and it went up 11
46:40or 12
46:43before.
46:45I had already moved my stop because it
46:47went
46:49like you take that kind of a trade last
46:50night and you get that first thing in
46:53the morning just and then it faded.
46:55Yeah, didn't work out like if you look
46:57at in retrospect but still made money.
47:00So yeah, it means it's all really
47:02pattern based. There's no real uh this
47:05thing but I there is a background to
47:08this. I don't do this on a random stock.
47:10Okay,
47:12>> this is done only on institutional
47:13quality stock. This is not on a random
47:16stock. It is only on a institutional
47:17quality stock. Can you see here there's
47:20a reversal bullish. This is the scan
47:22signal if it is uh so here you see and
47:25this one just like an event went and
47:26exploded.
47:28But it only works on a institutional
47:31quality stock because
47:34institutional quality stocks have buyers
47:38at uh support levels or at like these
47:40kind of uh things, right? So I'd only
47:42trade it on uh select stocks which have
47:47a certain characteristic in terms of
47:49institutional quality or uh I scan for
47:52stocks as reversal bullish only on
47:55stocks which have thousand plus mutual
47:58fund owning there.
48:01Okay. So not on any random stock. If you
48:04try it on random stock you're going to
48:05get killed. it only works on these in I
48:08if you study that on an institutional
48:10quality stock uh it happens all the time
48:14right and it just uh that's the way the
48:16market operates if uh something uh on
48:19institutional quality pulls back uh
48:21there are buyers
48:24so that's reversal bullish as far as I'm
48:26concerned
48:29so so this is the totality of the trade
48:32factory out of this this is the focus in
48:35the morning because the breakout kind of
48:37trades show up in the morning.
48:39Anticipation I do this work at 3:00,
48:413:30 and then buy them just before the
48:44close. I don't buy them next day. Okay?
48:47Cuz uh again this is based on what I
48:50told you. I'm always asking who is going
48:52to be buying, right? Whom am I going to
48:54sell to? So I have studied these uh
48:56newsletter writers and most of the
48:58newsletter writers what are they doing?
49:00They're looking at stocks with momentum
49:03and uh they are looking for these tight
49:04areas and then they're telling people
49:06buy when it goes up this is the buy
49:08point they draw a line or something like
49:10that or they will uh so I track some
49:16I have studied some thousand newsletters
49:18right of the like this out of them 300
49:21to 400 are exog members running them so
49:24I know what they are going to do next
49:25day morning right uh they're going to
49:27buy that when it breaks out I just want
49:29to be buying before they buy. Same thing
49:32on reversal bullish. They do this work
49:34in the night and they identify this and
49:36they say, "Oh, this is like an uh dogee
49:39or some thing like that and reversal and
49:42they buy it next day." So all that
49:44you're doing is
49:46buying before they buying. It's always
49:49buy before people can find out. Right?
49:51That's what is an age. Age is just like
49:53a three ways to make money in the
49:55market. either be first or be smart or
49:59cheat. Uh when you buy at 358, you are
50:02first, you are also smart and you're
50:05also cheating compared to people who do
50:06it in the likes.
50:09So, so that's like this uh totality of
50:12this trade factory in one slide which
50:14explains what is the daily process or
50:16where the trades come from, right? Some
50:18trades come in the morning, some trade
50:20come in in the afternoon and this
50:22anticipation reversal bullish comes in
50:26uh clear near the close.
50:31So there is a time processing in terms
50:35of I don't work after uh 4:00. I have
50:38stopped working after 4:00. I just like
50:41I work from morning till 4:00. After
50:434:00 I do my personal things. So this
50:45process which is called NT MT which is
50:48night time is right time to find EP
50:49which is to go through stocks which are
50:51gapped up which are catalyst and all. I
50:53don't do it in the night. I do all of
50:54this in the morning combination of this.
50:56So in the morning I'll start with what
50:58is gapping up pre-market scan look at
51:01this is where you find EP uh like in the
51:04morning right and in the morning I also
51:06do other things which is to create a
51:09situational awareness to create a watch
51:12list of D stocks which is delayed
51:15reaction EP watch list I create in the
51:17morning review 20% 50% study and
51:20identify an EP so that what happens in
51:23the morning if there is something which
51:24is showing up then I'll do a OPG entry
51:27or I will just do a stop adjustment uh
51:31on the things which I bought last night
51:33uh anticipation reversal bullish and
51:36things like that. Now 9:30 to 10:30 is
51:38where most of my trades are found and
51:40most of them are in fact found by 10:00
51:43because I'm a breakout trader. So I run
51:45EP9 million momentum bus scan and EP9
51:49million will start showing you 20 30
51:51candidates in the morning. And the one
51:52which show up are the one which most of
51:54the time went go on to make a bigger
51:56moves also. So immediately as I show I
51:59will research I will see find out and
52:02then keep on entry enter trade as they
52:04show up adjust stop and exit trades
52:06which you are carrying from yesterday or
52:083 days ago or 4 days. So it's a loop
52:11it's a cycle right and basically so then
52:14I 10:30
52:17uh like I stopped like I run I just like
52:21a move away physically from my trading
52:25this thing because I have seen that when
52:27I sit there when you sit at the computer
52:30and when you're running scan even if
52:33there are no opportunities if you make a
52:35monkey sit in front of a keyboard he's
52:37going to press buttons right so I end up
52:39taking unnecess neessary trades are like
52:40in a you know the momentum or the bulk
52:44of buying comes in in the first 1 hour
52:45after that buying slows so you buy a
52:47breakout it doesn't work the same way as
52:49what happens in the first hour or first
52:5120 minutes so I just decided that the
52:53best way is to physically intervene in
52:56this thing uh I just go to the gym at
52:5911:00 okay so 11:00 is my gym session so
53:03I go to the gym 11 to 12 I work out I
53:05come eat lunch 1:30 I run again the same
53:09fat Same setup, same scan. If I find
53:11some other EP9 million momentum, waste
53:13continuation setup, I buy them. Enter
53:16trad stop exit trade.
53:19Then at 3:45 4:00 I again come back and
53:23just run the ants and reversal scan
53:26because that has to be done at that
53:28stage if you want to get a very good
53:29entry. Right? So I do my anticipation
53:32reversal scan at this stage. 3:30 around
53:35after 3:30 and then I wait till the last
53:382 minutes 358 is when I'm going to enter
53:40the trade if there is an anticipation or
53:42a reverse. I don't do this process. This
53:46is just what I used to do but like and I
53:48do this all in free market. Whatever I
53:49used to do in the night I do it and
53:51after 4:00 I do my other things. Okay.
53:55So this is a loop. The process repeats
53:58continuously through each trading day.
54:00All the stands are set up. Whatever I'm
54:03going to use for making analysis is set
54:05up. Uh everything is exactly the same
54:09every day. There is no change. This is
54:11like running a Macdonald franchise.
54:15Right.
54:21Uh then position sizing. It's a dynamic
54:23position sizing. It's not always fixed.
54:25based on like how close the stop I'm
54:27going to be getting then I'm going to
54:29determine uh if I can on I always come
54:32with the intention if there is a
54:33catalyst based and if I can answer the
54:35question if it has a clear catalyst how
54:37much it is going to run if I can
54:39increase the size right because if you
54:41can increase the size on a trade
54:45which was like a year you could have
54:46taken 20% and it to run 40% you would
54:49make 8% and if you can bump up the size
54:51same trade will make you 15 16%. So I'm
54:54looking for this. So
54:57uh then for stop-loss there is a
55:00universal stop-loss kind of a thinking
55:03which I use and which is if I'm buying a
55:05breakout or very early in the morning
55:07then I put a stop at low of the day.
55:10Okay. If I'm buying it later than half
55:13of the day and especially some I don't
55:16like buying breakouts in the later half
55:18of the day at all. But sometimes you end
55:20up buying because you are coming in
55:22fully invested or you had like a
55:24positions and then during the day you
55:26sold or you got stopped out and then
55:28there is capital and then you pay
55:29something. So in that case I'm going to
55:32look at half of the low of the day half
55:34of half of the day like and I have that
55:37uh made uh like in this uh thing itself
55:41right and so if you see here
55:44uh in TC 2000 and let's see like say
55:47something like an A I'm just taking an
55:50example from yesterday I don't know what
55:53stock so let's take octa let's say which
55:57is a bad example because it has a long
55:58tail but uh So here I have these things
56:02put in. What is the stop? Stop. This is
56:05a low of the bar. So if I was putting a
56:06stop, it 107 is the low of that day.
56:09Right? And stop half is finding out how
56:12much is the half of this thing. So stop
56:14halfop in this case will be 115.20.
56:19Correct? So this is all uh pre uh uh put
56:23into the system so that when I take a
56:26trade, I don't have to go and calculate.
56:27I can just quickly say okay this is
56:28115.20 20 I'm going to put stop not
56:31exactly at 115 but near about that 115
56:35or something I can put it so I can find
56:37my ideas or s trades very easily like
56:41that so that's as far as stops is
56:44concerned and I never move my stops down
56:48I always move my stops up never ever
56:50move the stops down always move them up
56:53right and there is just no the moment
56:55you make one exception and move your
56:57stops down game is over. Uh I don't use
57:01this previous support resist. This is
57:03like nowadays this AI fancy thing. I put
57:05in all these ideas and it just generated
57:08this for me. Okay, so it puts in support
57:10resistance. I don't really care about
57:11support resistance. I just put it at
57:13half of the day or low of the day. Okay,
57:15same formula every trade. Never eyeball
57:18it. It's the same thing for any trade.
57:20Either it is going to be low of the day
57:22or half of the day kind of a thing. uh
57:25for a order execution I'm looking for a
57:28limit order. If it is a must buy kind of
57:30a thing I need to get in then I'll use a
57:33market order and if it is something
57:35which is like pre-identified in the
57:36morning I did my research and I want to
57:38get in I will do an OPG. Sometimes when
57:41I do an OPG I get stopped out but if I
57:44am convinced about the setup then I go
57:46back into that particular thing later uh
57:49during the day after like and it got me
57:51stopped out or shaken out.
57:54Uh if a stock triggers and it meets my
57:58condition I'm going to take it. Uh there
58:00is no debate like and it doesn't take
58:02much of a time. This is all procedural
58:04memory. You see it you buy kind of a
58:07thing. If I miss a trade, okay, if I
58:10didn't get in early, I'm not going to
58:12chase it. There is no way I'm going to
58:14chase it. It is gone. It is gone. I want
58:16my stops to be for uh like between 5% to
58:206% or less than 2.5% if I'm just going
58:23to be doing the just momentum ban. I'm
58:26not going to chase it. No matter how
58:28good the idea, I'm not going to chase,
58:30right? And I'm James Bond.
58:32Have you seen in a Bond movie Bond
58:34chasing girls or girl chase Bond? Right?
58:37So I don't chase. I'm going to wait. If
58:41I get lose, fine. There is always next
58:44trade, right? Stop loss set immediately
58:46on fill. So as soon as there is nothing
58:49which is mental stop, uh there is
58:52everything goes into the immediately and
58:55if a trade moves in my direction after I
58:58enter within like half an hour it goes
59:00like say four 5%, I'm going to always
59:02look to increase my stop. My first
59:05objective is to great my stop to break
59:07even or break even plus because then the
59:09trade is free right and sometimes I move
59:12my stop because it you enter and some
59:15some of these breakouts are very
59:16explosive they immediately go up 8 10%
59:19after entry you just I just move my stop
59:22because many times they just uh then end
59:26up giving up the gains also right away
59:28so stop loss immediately on film then
59:30profit taking again I have like any EP
59:35or EP 9 million if I'm going to be
59:37entering I still have this framework
59:39which is these trades are going to be
59:41either in duration term between 3 days
59:44to at best 20 days because I studied
59:46100% 200% 300% moves and if they are
59:50going to be magnitude moves they can
59:52make that 200 300% move in just 3 days 5
59:56days or 8 days or 10 days or 15 days so
59:59my thing is I always look at like an
1:00:01doing Now if I'm going to doing an EP 9
1:00:05million or a DP I always have a target
1:00:07in mind saying based on this like say
1:00:09when I got into love which was like uh
1:00:11one of the turnaround kind of a play the
1:00:15Southwest airline uh and I looked at it
1:00:19and it is a turnaround so I thought like
1:00:21the guaranteed move and this is 20%. And
1:00:24because turnaround tend to last for a
1:00:26longer period of time, it can keep on
1:00:28going. This can end up into a multi-
1:00:31week runner kind of a thing. Uh but I
1:00:34moved my stop on 20%. When it reached
1:00:3620%, I really moved my stop to protect
1:00:3920% and it so happened this whole Iran
1:00:41thing and all started and the thing
1:00:44collapsed. Right? So even though I had a
1:00:46profit which would have been higher, I
1:00:48just ended up making 10% uh 20% on that.
1:00:52Uh I always scale out right and I scale
1:00:55out trades. So if I buy a pure momentum
1:00:59burst like uh say something like this H
1:01:01A if I buy
1:01:04I'm going to be definitely selling it by
1:01:06third day or fourth day. Right? by third
1:01:10day I would sell 60 like in a 40% or 20%
1:01:13I'll move my stop like just not even
1:01:16half of this day because this is already
1:01:18a 5% kind of a move I'm not going to do
1:01:20I will move my stop just like in a
1:01:22one/ird of this move kind of a thing
1:01:24next day start going then I start moving
1:01:27I stop aggressively if I'm there in the
1:01:29office if I'm going to be walking out of
1:01:31the office I just trail and the trailing
1:01:33rule which I use is once it has gone
1:01:37this much right and this trade If let's
1:01:39assume that I didn't enter at the end of
1:01:41the day. I entered earlier but like once
1:01:43I have like what I expect 10 12% kind of
1:01:46a stop I'm going to like start trailing
1:01:48very aggressively or just sell 80% and
1:01:51keep a 20% in case it runs the trades
1:01:54all exited on third fourth or fifth day
1:01:56basic depending on how they uh run.
1:01:59Basically there is nothing which I'm
1:02:00going to hold beyond that. If there is
1:02:02something which runs and once I exited
1:02:05it runs it's okay. I am not worried
1:02:07about that. 3 to 5 days, right? That's
1:02:09the unit of moves. All these stocks move
1:02:11in 3 to 5 days.
1:02:15So that's as far as this is concerned.
1:02:17Uh the
1:02:23uh so
1:02:26profit taking sell into so everything is
1:02:30sell into strength. Uh don't I don't
1:02:32sell everything together at one time.
1:02:34I'll sell 20% of my position. to see
1:02:37sell another 20% sale another and sell
1:02:39another. So this is why uh what I do is
1:02:42uh I have uh bought one of those cheap
1:02:46pillar uh which you get on Amazon and I
1:02:49keep it on my trading desk uh to remind
1:02:51that to peel your position because I
1:02:54have seen many positions which are 20%
1:02:56profit if I didn't sell them they just
1:02:58end up giving up that gain. So I sell
1:03:0080%, keep 20%, within that 20%, I'll
1:03:03sell another 40, 50%, keep small.
1:03:06Sometimes I have a very small runner
1:03:08which goes for 5 6 7 days. But nothing
1:03:10like that kind of a thing. If I'm taking
1:03:12EP 9 million or something, I always have
1:03:14a target in mind 30 40%, if it makes I'm
1:03:17going to be more aggressive. The rule of
1:03:20my stops is that if something runs
1:03:22faster,
1:03:24I should move my stop more aggressively.
1:03:26If something runs slower, I should move
1:03:29my stop slower. So if something starts
1:03:31running faster, I will go. And if I was
1:03:33trailing with 3%, I drop my trailing to
1:03:362%. If it starts even running much
1:03:38faster, I drop my trailing to half a
1:03:41percent. Sometimes I drop my trailing
1:03:43to.5%, you get stopped out. But in the
1:03:46meanwhile, it can go. So the higher the
1:03:48speed of the move, u the lesser the
1:03:52drilling you use. That is the general
1:03:55principle which I use. Most of the time
1:03:56I get stopped out on trails basically
1:04:00hard stops only no mental stops. Uh then
1:04:03I have also a rule which is like an if
1:04:06there is some certain percentage loss
1:04:08for a day or three trades in a row uh
1:04:11which I bought breakout and they hit my
1:04:14stop loss. I just stop trading because I
1:04:18know something is wrong. And this is
1:04:20what happened couple of days ago. I had
1:04:21like an a Nvidia I had uh I think what
1:04:24else I had like CR CL or something uh
1:04:28two or three trade I had B I think I
1:04:30three trades I had and all of them got
1:04:33hit first thing in the morning by 10:00
1:04:36I said like there is something wrong in
1:04:38the market I don't know my best option
1:04:41is to just like and I walk away and
1:04:43protect my capital and good that I did
1:04:46that because next day the whole market
1:04:48collapsed and everything all the open
1:04:50profit would have been wiped out. I just
1:04:52have that rule. Uh I know because I keep
1:04:56track of situational awareness. So I was
1:04:57not expecting something like this. Three
1:05:00trades in a row doesn't work for me.
1:05:01Means I have a problem. So that's
1:05:06and I don't mind closing. I can reopen
1:05:08position. I don't have this whole thing.
1:05:10Oh, you keep on holding and all. No,
1:05:12just like an egg protect capital at any
1:05:14time. You can always find opportunity.
1:05:17So everything is like same routine. So
1:05:19this is a muscle memory. I can do this
1:05:21in my sleep. I don't need to worry about
1:05:23like magna 53 cap 10 by 10. If I explain
1:05:27I'm saying this this this but when I
1:05:29look at like I can do this in seconds
1:05:31right and if I had to calculate stop I
1:05:34know where to move. So all this is this
1:05:37uh the broker platform which I use is I
1:05:39have multiple brok brokers nowadays
1:05:41because there there are some different
1:05:43kind of accounts I have personally. So I
1:05:46have Fidelity and Interactive Broker as
1:05:48the main brokers but I also have Schwab
1:05:50and some other brokers for some other
1:05:53accounts. Uh charting I exclusively use
1:05:56TC2000 and market search for like uh the
1:06:00financial data. Uh news sites I use
1:06:03briefing.com
1:06:04uh Finn and nowadays I found that the
1:06:07best way to find news is to just like go
1:06:10into some AI platform and just put in
1:06:13the ticker and I have some scripts
1:06:14written. So they just like can you go
1:06:16and find out from some sources which I
1:06:18said like can I find out on Twitter
1:06:21Reddit and this reliable news site WHJ
1:06:24this Bloomberg this this and then they
1:06:26give me what is the news on this
1:06:27particular thing kind of a thing. So
1:06:30that's the goal is make execution
1:06:32mechanical every action predefined and
1:06:34repeated until it's a muscle. That's the
1:06:36idea basically.
1:06:39>> A quick question before we move on
1:06:40pretty deep. Sorry. Um, going back to
1:06:43position sizing, how much of your
1:06:45account are you willing to commit to the
1:06:48home run type trades versus the single
1:06:51type trades or is there a difference?
1:06:53Basically, you know,
1:06:54>> a single kind of a thing, I'll do 20 to
1:06:5625% of my account,
1:06:59>> right? But if I'm doing an anticipation
1:07:01where I'm taking an overnight risk, then
1:07:03I'll reduce it to around 10%.
1:07:07>> Uh, to account for sometime like it can
1:07:09go against you. So I cannot go like in a
1:07:11crazy kind of a thing and if I my
1:07:15situational awareness is like say look
1:07:17kind of it's like a really uh the market
1:07:21is likely to run like a couple of weeks
1:07:23ago or couple of months ago when the T2
1:07:26and 08 which is one of the things which
1:07:27I'm going to discuss later which I use
1:07:29which is what an indicator was below 20
1:07:32I was expecting the market to explode.
1:07:35So that time I just went crazy because I
1:07:37knew even on a normal trade if I found I
1:07:40was just trying to get in because the
1:07:42idea is when the sun is shining
1:07:45capture as much as possible. Now
1:07:48currently when we are talking currently
1:07:49when we are doing this particular thing
1:07:51my situational awareness is this is
1:07:53choppy market rangebound very very
1:07:56difficult market for breakout I'm not
1:07:58even 5 10% invested in this market
1:08:03but even if I find a breakout I buy it
1:08:05just for like a testing out an idea uh
1:08:09but if the market is at times if the
1:08:12market is good I will even on a normal
1:08:14just single hit I will go 607 70% also
1:08:17because it just quality of setup and
1:08:19your confidence in the market at that
1:08:21stage but for something like EP 9
1:08:25million and EP I'm trying to get mean
1:08:27like for GLW I had like a really big
1:08:30position even for CRCL which I bought
1:08:32through CRCA I had a big position even
1:08:35uh for some of the other institutional
1:08:37quality uh thing which like for Nvidia
1:08:40the day I got stopped out I had a
1:08:42position which was like in a huge
1:08:43position uh basically in terms terms of
1:08:46unm margin on that day between the three
1:08:49positions which I had opened. So I want
1:08:51to put as much as possible on the
1:08:53institutional quality stock. I will not
1:08:55do a large position on non-institutional
1:08:58quality stocks especially stocks like uh
1:09:02Google or like an Nvidia or Oracle which
1:09:05I traded multiple times in the last
1:09:09quarter. uh mean I don't want to even
1:09:12say because people start getting scared
1:09:14to write another signal but that's the
1:09:16game right so if you can't do size I
1:09:19made a video also right and you must
1:09:21have seen where I said size matters
1:09:23right and that's really what it this
1:09:25game is once you have age right and
1:09:26obviously if you don't have age then it
1:09:28doesn't matter and plus situational
1:09:31right
1:09:31>> obviously everything is situational
1:09:33awareness specific
1:09:36>> so this I can skip because I explained
1:09:37this
1:09:39Okay, go ahead. Whatever.
1:09:42>> No, no, that's all good. I think it was
1:09:44a great summary.
1:09:44>> This is just uh what I explained to you
1:09:47like EP classic neglected nails game
1:09:49changing but doesn't happen. Uh this is
1:09:52what I really like and looking at the
1:09:54volume is the footprints of institution.
1:09:56That's the hypothesis. Then you go and
1:09:58find why this stock is trading this kind
1:10:00of a volume. It's like trading in the
1:10:02top 2% volume. Most of the days it is
1:10:04not even 1.5% of the and sometimes you
1:10:08get like they are trading in the top why
1:10:10are they trading that kind of volume
1:10:11then just to find is the catalyst worth
1:10:13finding filter for noise I don't go into
1:10:16these low price like there are a lot of
1:10:18these low price stocks which will do
1:10:20that kind of a volume like if you see
1:10:21CRC or quarts or something which did
1:10:24like a huge volume or I research them
1:10:27always because uh if I can research a
1:10:30catalyst and I know the catalyst later
1:10:33when they become higher priced and when
1:10:34they offer opportunities I can get into
1:10:37them but I'm not going to trade things
1:10:40which are $3 $5 sometimes I do just but
1:10:44the size uh doesn't really is big like
1:10:47I'm not going to buy 100,000 shares of a
1:10:49$5 stock no never okay and then DP is
1:10:54something which is like let me get into
1:10:56a little bit into this D because this is
1:10:58another one of these things which I use
1:11:00a lot nowadays so DP is again I'm only
1:11:04focused on D on a certain uh kind of
1:11:07stocks not on everything in general. So
1:11:10what I do is I just focus on two types
1:11:14of stock. One which is owned by thousand
1:11:16plus funds. This list I put from market
1:11:18search. So these are stocks the which
1:11:21are owned by and on them I'm looking for
1:11:23a EP 9 million which has happened in the
1:11:25last one month.
1:11:28So DP is essentially a setup on a
1:11:32institutional quality stock or a stock
1:11:35which has a genuine catalyst and which
1:11:38had after the earnings or say whatever
1:11:41the catalyst which happened or EP9
1:11:43million happened. I'm looking for a
1:11:45lowest risk entry point after a shakeout
1:11:47or a small pullback which happens within
1:11:50the 25 days of the catalyst. Octa is a
1:11:52classic example. It has a catalyst. uh
1:11:55it made a EP9 million and then it still
1:11:58has a valid catalyst and now this is a
1:12:01what is a DAP? It was on my watch list
1:12:03like yesterday coming into yesterday I
1:12:05had uh this this is how it looked
1:12:07yesterday before this right and I so it
1:12:09was setting up probably for potential I
1:12:12had slow
1:12:14those are the two stocks which I had on
1:12:15a D because again there is a catalyst
1:12:18and orderly pullback after that um
1:12:22and this particular stock while we are
1:12:24on it three times I entered this stock I
1:12:27have a rule on D that I because if I'm
1:12:30convinced that there is a genuine
1:12:31catalyst I give it three tries but my
1:12:33stops are so close my entries are so
1:12:35good three times on this day it looked
1:12:37like it's breaking out I entered I got
1:12:39stopped out this day I entered I got
1:12:41stopped out and third time I tried I
1:12:44think on this day and then are this it's
1:12:47just there there are some stocks which
1:12:49are just like that so if three times I
1:12:52try and it doesn't work then I just wait
1:12:54for a confirmed breakout to buy and I
1:12:56just don't do any more harm to myself
1:13:00right I see
1:13:01Yeah. Question on snow actually here.
1:13:04Yeah. Yeah. Yeah. Question on this. Can
1:13:06a can a chart get too tight because it
1:13:08was just tight for so long here at you
1:13:11know is it more prone to a shakeout in
1:13:12your experience. You kind of like you
1:13:14said you kind of wait for the actual
1:13:15confirmation of the breakout in in that
1:13:17situation.
1:13:19>> Uh when I see chart going sideways for
1:13:22too long especially beyond like the one
1:13:24which really have a going to work they
1:13:26break out in three to five days. I will
1:13:28show you example like TX broke out in 3
1:13:30to 5 days. So, GLW 3 days and it broke
1:13:33out. So that what this tells me is
1:13:34there's no urgency on part of the
1:13:36institution on this particular stock or
1:13:38they are not convinced that this
1:13:40catalyst one earnings uh quarter is
1:13:44sufficient for them to get involved in
1:13:46this particular thing. So there is a
1:13:48clue and uh I was very bullish initially
1:13:51I thought like this is good. I'm less
1:13:53bullish. uh sizing terms in terms of
1:13:56what I expect now
1:13:59>> it's so so the one which break out look
1:14:02at this right
1:14:04>> GLW
1:14:05>> on earnings 3 days
1:14:08>> yep
1:14:09>> right uh TXN which is like another GP
1:14:12like 3 days 4 days it just goes right
1:14:15and there is urgency so this octa
1:14:19uh there is the that I think do or
1:14:22something digital ocean or something
1:14:24also but there's nobody is really
1:14:26believes in this catalyst according to
1:14:28me right or they're waiting for the next
1:14:30quarter or something like that right
1:14:34right makes sense
1:14:36>> yeah this is another stock which I
1:14:38tracked entered nothing happens entered
1:14:42again so I have these three rules look
1:14:44if you go on a date three times and
1:14:46nothing happens you just like and move
1:14:48on right
1:14:50>> yep
1:14:51>> you're married so doesn't matter
1:14:56fiancé but not yet but yeah okay I okay
1:14:59I thought you married okay
1:15:03>> so let's go back and look at this so
1:15:05this is just a summary of what I
1:15:07discussed DP I'm looking and the
1:15:09difference between P9 million and DP is
1:15:11DP trade is always from a watch list and
1:15:14it is like I only have three or four
1:15:16stocks which will meet my DP criteria
1:15:18which I'm walking watching like a hawk I
1:15:20will put everything into my interactive
1:15:23broker I'll even create a market order
1:15:24or a limit order ready and I'm just
1:15:27watching if I see a live a sign of life
1:15:31I press it button. So sometimes I enter
1:15:33and I but then this is where you can do
1:15:37size because you are like in a watching
1:15:38like on that GLW I could do the size
1:15:40which was like in a crazy size because I
1:15:43was just like in a watching as soon as
1:15:46entered stop was less than 1% right
1:15:50and it just went after that free money
1:15:53so this is watch list based uh all the
1:15:55work which I do and now this also in
1:15:58terms of working on this I don't do
1:16:01anymore this the EP work in the night
1:16:03which I used to do or in the morning I
1:16:06move this process to 3:00 because then
1:16:09it also allows me sometimes if
1:16:11everything is setting up so I just like
1:16:13enter in anticipation uh gives you a
1:16:16better entry and then you can add more
1:16:18next day if it really breaks out if it
1:16:20doesn't you take a small cut and blame
1:16:24somebody and it's always better to blame
1:16:27Trump right
1:16:30So,
1:16:32>> so we went through this momentum burst
1:16:34is just 3 to five days. I within
1:16:36momentum burst, I'm more focused on the
1:16:38higher price stocks. So, I'm not really
1:16:40looking at these lower price stocks 8 to
1:16:4240% kind of thing. I focus more on 50 to
1:16:45300 plus one of the rules which I done
1:16:48uh uh uh especially since this year is I
1:16:52really don't even trade momentum worst
1:16:54which don't trade a million shares on an
1:16:57average right now because liquidity is
1:17:00becoming so important I need liquidity
1:17:02so I don't even trade an higher price
1:17:04stock and if you look at the mathematics
1:17:08of higher price stocks mathematic uh
1:17:10returns are higher in terms of ours on
1:17:13higher price stock than on uh because
1:17:15you can like get stocks which are very
1:17:17close. I can get into a high price
1:17:19stocks with just like 2% stop. So small
1:17:22moves can also pay off.
1:17:25So this is all based on structural
1:17:26tendency of market where the market
1:17:28moves in 3 to 5 days. I'm just looking
1:17:31at start of a swing. The signal is large
1:17:33expansion bar. That's all there is to
1:17:35it.
1:17:38So this is all hitting singles looking
1:17:40one trade is not going to make your year
1:17:42but hundreds of trade make your year and
1:17:44in case something doesn't work out on
1:17:47the other side you still have continuous
1:17:49set of money coming in. uh then for
1:17:52everything there is a criteria if I'm
1:17:54doing going to do uh or there is a
1:17:56classification of breakout because not
1:17:59all breakouts are should be traded same
1:18:01way after uh lot of uh years of
1:18:05experience I know uh a breakout which is
1:18:09a continuation which is like where it
1:18:10had only less than 10 days or 3 to 7
1:18:12days is a different quality from
1:18:14something which is a consolidation like
1:18:16we saw digital ocean and a digital ocean
1:18:19kind of a thing if you just get a
1:18:20breakout
1:18:21And you get in very excited saying oh
1:18:23this is a long base and then it's going
1:18:25to most of the time when you buy a
1:18:27breakout on something which is having
1:18:29more than 3 to four weeks of
1:18:31consolidation uh more longer
1:18:33consolidation of months and all unless
1:18:36there is a catalyst clear catalyst for
1:18:38the next leg you buy a breakout which
1:18:40looks perfect it will have a cup with
1:18:42handle VCP pattern whatever pattern you
1:18:44draw on it and you buy it and invariably
1:18:47that thing is going to go squat and go
1:18:49back into the range.
1:18:51So I have a qualifier for buying a
1:18:53consolidation record. I only buy a
1:18:55consolidation breakout if there is a
1:18:57catalyst and a volume surge. But while
1:19:00for a continuation setup, I don't need
1:19:02volume because the volume has come in in
1:19:04the first leg. There is already
1:19:05aggressive W. So here the criter which
1:19:08is like the stock should not be up two
1:19:10days in a row linearity young narrow
1:19:12negative day consolidation quality high.
1:19:15Here I have I say like and I always tell
1:19:17people like you if there is a
1:19:19consolidation breakout and if you just
1:19:21buy it because it is a consolidation
1:19:23breakout you're going to spend lot of
1:19:24time in hardbreak hotel because most
1:19:27consolidation breakout don't follow
1:19:29through unless there is a catalyst or a
1:19:31volume. So then the qualifiers what I
1:19:34call qualifier for a consolidation setup
1:19:36I'm going to qualify using catalyst and
1:19:38volume and then bottom bounce I showed
1:19:41you like NV core and all I'm just
1:19:43looking for some sort of one exhaustion
1:19:45I'm looking for whether the market
1:19:46itself is going down and there's a turn
1:19:50in market so because when the market
1:19:52turns you're not going to get
1:19:54continuation and consolidation setup you
1:19:56get these bottom bounds kind of a thing
1:19:58let me show you an example of this uh
1:20:01when the market turned after uh the
1:20:04Google
1:20:07this was a bottom box right and it was
1:20:09like a stock was going down everything
1:20:11was going down on this day the spy also
1:20:13turned a Google turned and every single
1:20:15stock mean you could have just like in a
1:20:17that day if you ran a scan you were
1:20:19feeling like you're Saudi shake in a
1:20:22haram kind of a thing right and every
1:20:24stock was looking like this but this was
1:20:26a bottom bounce so this particular day
1:20:29this was the start of a swing EP 9
1:20:31million But it was coming in from
1:20:33bottom. But I was perfectly okay buying
1:20:35it because the context was T2108
1:20:38was below 20 and the overall market
1:20:40itself was also going to be turning
1:20:42around. So this setup I only trade when
1:20:45the context is right for this particular
1:20:47and that day every single stock uh large
1:20:50stock look like that. You could have
1:20:52bought any one of these stocks. Nvidia,
1:20:55AM I think Amazon, AMD uh bunch of them
1:20:58like all even the
1:21:01thing. So that is the context always
1:21:04like a uh
1:21:07always look for a context and a criteria
1:21:11what is the context for this particular
1:21:12stock. So then we structure short which
1:21:15is a short setup which I trade not such
1:21:17an important setup because you get
1:21:19enough in nowadays the I get so much
1:21:22opportunities in EP9 million that
1:21:25uh I don't even have money to do most of
1:21:27the time some of the other things but
1:21:29this is a short weak structure short
1:21:30kind of a setup where I look for a stock
1:21:32which is very weak which sells off three
1:21:34days in a row and just has two or three
1:21:37days of pause and then it starts selling
1:21:39off. So I have a criteras for that also.
1:21:43This is all singles all like you know
1:21:45just pays the bill keeps the cash flow
1:21:48going creates cash flow for putting in
1:21:50larger size if you find some idea like
1:21:52GLW or CRCL or something and you need to
1:21:56take a larger risk. Uh so this is but
1:21:59I'm not going to stop doing this because
1:22:02this is very good. It gives you
1:22:04practice. It
1:22:06keeps the register ringing right. I like
1:22:09my register to keep ringing.
1:22:14What else is there after this?
1:22:18Yeah, reversal bullish. I talked about
1:22:19reversal bullish anticipation setups
1:22:22where I look for two tight bars or three
1:22:23tight bars decreasing volume net change
1:22:26less than 1% or something like that. And
1:22:29uh
1:22:33uh this is a situational awareness. So
1:22:36every day morning first thing when I get
1:22:39up I'm asking and this is why I got
1:22:41these things done uh this kind of like
1:22:43anything are breakouts likely to work.
1:22:46So if the breakouts are likely to work I
1:22:48keep this wooden thing on the right hand
1:22:50side. So if I put it on the right hand
1:22:53side I know to buy breakouts. If I put
1:22:55it on the left hand side that means just
1:22:58tie your hand and sit on your hand.
1:23:01Okay. So are breakouts likely to work?
1:23:03Yeah. Okay. So then you go early you try
1:23:06and find breakout as early you do large
1:23:08door sizing then there is market
1:23:10environment where like some breakouts
1:23:13are working so you have to be very
1:23:15selective trim size do lower size have a
1:23:18lower profit expectation so I go in with
1:23:21a very low profit expectation I drop
1:23:23size I like and very very careful in
1:23:26terms of taking a breakout and when
1:23:28breakouts are failing I don't even trade
1:23:31right and basically so this is a
1:23:32framework for situational awareness
1:23:34And the input for this comes in from 20%
1:23:37study which I do daily market monitor my
1:23:41own trading how how have the last two or
1:23:44three breakouts work what am I seeing uh
1:23:47in uh other breakouts so this is just a
1:23:52framework but this is very important
1:23:55this is the key to success in breakout
1:23:58breakouts have a inherently very small
1:24:00edge right most of the time buying
1:24:03breakouts is a terrible business. You're
1:24:06not going to make money just blindly
1:24:07buying breakouts every day, right? But
1:24:10there are times when it is a very good
1:24:12business where like every single
1:24:14breakout you buy like on that day when
1:24:16the T210 it was very low and the market
1:24:18itself turned and all everything you buy
1:24:21worked right and it's like and I
1:24:23literally everything you could randomly
1:24:24throw a stone and buy any breakout and
1:24:26it worked. And then there are times like
1:24:28now people are getting frustrated and I
1:24:31told them I did a video on my site uh
1:24:35last week warning them that saying look
1:24:38this is going to be a London weather
1:24:40you're going to get fog dark dy clouds
1:24:44don't go and uh wait but people don't
1:24:46have patience right they want to trade
1:24:49because they see setup and the other
1:24:51thing is that when the market is when
1:24:54breakouts are failing and when things
1:24:55are not working. A good breakout is
1:24:58still going to look exactly same like a
1:25:01good breakout looks in this market
1:25:02condition. If the market is selective
1:25:04currently and everything is not working,
1:25:06terrible things are happening, right?
1:25:08And you run a scan and you see a
1:25:10breakout like H, it is still going to
1:25:12look exactly like HIV, it is going to
1:25:14look perfectly fine, but the situation
1:25:17is not going to allow that particular
1:25:20thing to work. There a lot of people are
1:25:21so frustrated. Some of the people bought
1:25:23like you know yesterday Marvel and then
1:25:25it sold off and some days ago they
1:25:28bought like and they're just
1:25:29complaining. I keep telling them hey I
1:25:32like operate with situational awareness.
1:25:34That's your best strategy in life.
1:25:38So this is as far as this is. So let's
1:25:40go and look at some examples before I
1:25:42take some questions from you and then
1:25:44we'll look at some examples.
1:25:46>> Mhm.
1:25:48>> Whatever questions you have like you can
1:25:50ask. So these are just random examples
1:25:52of some of the trades which I did.
1:25:54>> Yeah. Could you actually show your
1:25:56market monitor and kind of walk through
1:25:58how you look at it day-to-day and and
1:26:00what what things you're considering?
1:26:02>> So here u this is just mean lot of these
1:26:06columns is bloatware right and initially
1:26:08I had only these two or three columns.
1:26:10So now people say why don't you track
1:26:12this why don't you track this why don't
1:26:13you track so it's literally only thing
1:26:16which I look at is how many is it buying
1:26:18coming or selling coming into the market
1:26:20right and basically here there's a bunch
1:26:22of buying or like let's look at when the
1:26:24turn happened on that particular day uh
1:26:26when there was a big buying came in
1:26:28right and buying came in and buying came
1:26:30in and buying came in so breakouts
1:26:32worked buying came in buying came in
1:26:34everything was working at this time
1:26:35everything was melting up selling came
1:26:37in selling came in big selling came in
1:26:3997 72 and then selling and now in the
1:26:42last couple of days again little bit of
1:26:43a buying came in which is typical of a
1:26:46rangebound kind of a um action action
1:26:49right and basically uh so that's how uh
1:26:52this is like and basically now uh these
1:26:55ratios and all stock B members are added
1:26:59I don't even pay attention to those
1:27:01ratios there is no value in those ratios
1:27:02according to me they're just a ratio of
1:27:055 days of this buying to selling kind of
1:27:08and 10 days so I don't But this is
1:27:10important
1:27:12in general as a thumb rule when the
1:27:15primary indicator or the percentage of
1:27:17stock number of stocks of 25% in a
1:27:19quarter is green that means like you
1:27:22know more stocks are going up than going
1:27:24down. It's a good environment for
1:27:26breakout trading
1:27:29but this particular thing is not the
1:27:31only thing which I'm going to use. In
1:27:33fact and I rely less and less on market
1:27:37monitor than another indicator which I
1:27:39have created which is again market only.
1:27:41But uh while we are at it look at it
1:27:43like this. The T2108 is a very good
1:27:46indicator. It's an extremely good
1:27:47indicator. It is the percentage of
1:27:50stocks which are trading over their
1:27:51quotient moving average and it only
1:27:53looks at NYC stock. It doesn't look at
1:27:55the other stock. So it's like an looks
1:27:57at. So here you see this
1:28:01this is why I was like and I screaming
1:28:03saying look the market is going to turn
1:28:05market is going to turn. When it goes
1:28:06below 20 it stays below 20 for a very
1:28:09short period of time. Every time it goes
1:28:11below 20 if you bought socksel or if you
1:28:14bought TKQ you are going to make money
1:28:16because when the market gets so oversold
1:28:20buying just comes in and this is exactly
1:28:22what happened. So this T210 I have to
1:28:24pay attention to. There is another
1:28:26indicator which I pay attention to
1:28:28because everywhere if you go on Twitter
1:28:30everywhere everybody is saying oh there
1:28:31is a bubble there is a bubble there is a
1:28:32bubble right uh I know what a bubble is
1:28:36or what is the indicator which will tell
1:28:38you there is a bubble the one indicator
1:28:40which tells you there is a bubble is the
1:28:42absolute number of stocks trading in the
1:28:45market if it increases by 800 to,000 in
1:28:47a year there is a bubble and you can go
1:28:49back and check this indicator when
1:28:51number of IPOs increase by 800 to,000 in
1:28:55a
1:28:56then typically that is a bubble. So I I
1:28:58watch this I mean it doesn't move on a
1:29:00day-to-day basis but if you go back and
1:29:02look at this during the covid-19 time if
1:29:05you see 2023 or somewhere around that
1:29:07time it jumped by around 1200 because
1:29:10those 1200 spaxs came into the market.
1:29:12Before that there are only 4,000 stocks
1:29:14trading in the market and then that's
1:29:16when the market corrected right and
1:29:18that's when all everybody got into
1:29:19trading because they come in only at the
1:29:22bubble. So these are some of the things
1:29:24small nuances. Now this
1:29:28is converted into some sort of a uh
1:29:31green light red light kind of a thing.
1:29:33If the green light is a buy card but
1:29:34it's not as simple as that uh because I
1:29:37also look at the context of the market
1:29:39and the context of the market which I
1:29:41look at is driven by this particular
1:29:45thing 20% study.
1:29:48uh this is uh spy versus the number of
1:29:53stocks even common stocks which are up
1:29:55five day in a five days 20%.
1:29:58So this is like looking at stocks if you
1:30:00go to the scan you'll see that it's
1:30:02looking at a stock which is priced above
1:30:05$5 uh no above $3 and which are up 20%
1:30:09in last 5 days. So this is like a
1:30:11oscillator
1:30:13right? What I have seen is that when it
1:30:15goes to this extreme 200 and all not
1:30:18immediately next day selling comes in
1:30:20but invariably when it goes like this
1:30:22you get some pullback you know next 5 to
1:30:2510 days. So it's like a warning signal
1:30:27telling you like this is why on the
1:30:29stock B side we were like in a very
1:30:32cautious I said like you know no matter
1:30:33what people say this time is different
1:30:35it is never diff time is different
1:30:37because market is already made like some
1:30:3920 30% move which is historical and this
1:30:42indicator is screaming it's 200 right
1:30:45and we are ready uh can look in case
1:30:47like there is selling and I had like
1:30:49almost like you know put stops very
1:30:51aggressively and all and this is what
1:30:52happened now this indicator also needs
1:30:54to be interpreted in context when T2108
1:30:58is low and when it goes above I don't
1:31:00really pay attention because I expect
1:31:02that to happen because market was
1:31:04oversold so it's going to come in so I'm
1:31:05not going to sell at this first side but
1:31:08third time when it reaches this and
1:31:11especially about 100 and the good thing
1:31:14about this is like you can see it it's
1:31:16here this is mean like you'll see this
1:31:18on the thing like every time it goes in
1:31:22a small period of time at 3 to 5 days
1:31:24after that there is either a minor dip
1:31:27or a major dip after that right the it
1:31:30works the same way reverse way if it
1:31:32goes below 20 like on this particular
1:31:34day uh uh I was like in a bullish and I
1:31:37said I'm bullish and I even posted on
1:31:39the timeline on my site saying because
1:31:42this is below 20 20 the number of stocks
1:31:46which are up or down was 17 so when it
1:31:48like reaches extreme low level they'll
1:31:51buy so this is like a mean reversion
1:31:53kind of a thing So this is one thing. So
1:31:56this is another situational awareness
1:31:58and this is the main tool which I use
1:32:00nowadays like in a market monitor again.
1:32:02Yes. But this is the main 20% plus
1:32:04study. This is something which uh you
1:32:06can only do this in the highest uh uh
1:32:09package of TC2000. You can't do it in a
1:32:12regular package. So you need the
1:32:13whatever earlier it was called platinum.
1:32:15Uh now it is it is called some premium
1:32:18plus or whatever. Right? And so it's
1:32:19done. It charts the number of stocks
1:32:22which are up or down and this is just a
1:32:24combination of them. This is one thing.
1:32:26In addition to this uh I have this
1:32:29framework in terms of thinking which I
1:32:31call it like uh T3A
1:32:36and T30A
1:32:40which is think 3 days ahead and think 30
1:32:43days ahead.
1:32:45So when the market is coming out of
1:32:48something like T2108 is extreme and all
1:32:51I'm not even worried about a market
1:32:54correction because I know for at least
1:32:5630 days it is going to go up right
1:32:58that's not when you need to get worried
1:32:59that even minor pullback is going to get
1:33:02so if this reading get higher I'm not
1:33:04really worried and all but once it cross
1:33:06that 30 level kind of 30 days kind of a
1:33:08thing and all then I said like an okay
1:33:11never say never anything crazy can
1:33:13happen the market can go and make
1:33:14another move like this as somebody keeps
1:33:17saying you look can I can a marathon or
1:33:19run another marathon back to back in
1:33:22theory yes but in reality unlikely so it
1:33:25will transition into a chop so I have
1:33:28been saying this for some time saying
1:33:30this market has transitioned into a chop
1:33:32so that's my T3A now thinking 30 days
1:33:35ahead this is going to be a period which
1:33:38is likely going to be like this or going
1:33:39to be a period likely because that's
1:33:41what happens after a big move going back
1:33:43historically or this will be a period
1:33:45like this. So now if this is my thinking
1:33:49uh it is reflected in my trading. I was
1:33:51very aggressive buying things here. I
1:33:53bought bunch of stocks 150% invested uh
1:33:57on this day when there were breakouts uh
1:33:59and they all like work for 3 to 5 days
1:34:01and then I am out of most of them. So
1:34:05just a framework for thinking and
1:34:08decision making for situational
1:34:09awareness.
1:34:12what what goes into the T3 ahead the the
1:34:15three days ahead
1:34:17>> uh it's always determined by where we
1:34:19are in the phase of the market right and
1:34:22uh where you are like and I say this uh
1:34:25there are lot of these small things like
1:34:27market is down three four days in a row
1:34:30right and you know that it's going to
1:34:32bounce back right and say you don't get
1:34:34people got very aggressive shorting on
1:34:36this day
1:34:39uh it's like a No, you don't get
1:34:41aggressive. You want to get aggressive
1:34:43go on the first day or like you know
1:34:44something like that, right? So now after
1:34:47it went up 3 days uh I was and in fact I
1:34:51can show you on my site I said like on
1:34:53this day uh in the morning when I do the
1:34:56morning meetings I said like look this
1:34:58is another day I will give it and I'm
1:35:01very cautious. I'm not really bullish
1:35:03here because I think this move is
1:35:04happened 3 days. Most of these stocks
1:35:06already made 20 10 20% move in 3 to 5
1:35:09days. They're not going to keep on
1:35:11going. So I'm very cautious and
1:35:12everybody is saying that you're a CC.
1:35:14You're a You don't like no stocks
1:35:17keep going forever. I said like I'll
1:35:19rather be a than risk my money. So
1:35:22I reduce my exposure. I had a very
1:35:24little exposure and then it so if you
1:35:29start this at first I didn't had all
1:35:33this knowledge or understanding of
1:35:35market when I started I wish I had right
1:35:37but more you do it you can see this is
1:35:40over this game is over this party is
1:35:42over right uh this is going to
1:35:44transition into mean I have seen this
1:35:45for 26 years this is my not my first
1:35:47rodeo I know that this is likely to go
1:35:49into this kind of a thing yeah I'm ready
1:35:52in case it goes And I will put in money
1:35:55because I have set up a trade factory.
1:35:56But I think you know this will
1:35:57transition into some job and death by
1:36:00thousand cut uh and invariably new
1:36:03traders enter the market because
1:36:05everything has been working and then
1:36:06everybody tells them you just put a stop
1:36:08at 10day moving average 20day you should
1:36:10not trade for magnitude you should trade
1:36:13for duration. Everybody gets sold on
1:36:15duration. At this stage everybody was
1:36:17telling everybody and their cousin that
1:36:19you should be a duration trader right
1:36:23seen this for 26 years man this for 26
1:36:26years so uh this is going to be job
1:36:29according to me obviously I'm willing to
1:36:31change my mind I can change my mind on a
1:36:32dime I just don't see how it will like
1:36:34transition into some uh unless there is
1:36:37a time which goes sideways so I'm
1:36:40trading accordingly right I buy
1:36:42inventory big inventory I bought sold
1:36:44third day fourth Right.
1:36:47Sitting in cash. Welcome the cash.
1:36:49Waiting for another opportunity. Right.
1:36:53>> Could we go? Um, did you have something
1:36:56else to show or uh
1:36:57>> Yeah, you can ask anything. I just
1:36:59wanted to show T2108 like and I see this
1:37:02goes below 20 I'm telling you every time
1:37:04it goes below 20 if you just like and I
1:37:07start getting bullish and not getting
1:37:09bearish and not believe all the end of
1:37:11the world scenarios you'll make so much
1:37:13money. When this was coming out, I
1:37:15bought Sockil, right? And because I was
1:37:17like just waiting on Sakil and then that
1:37:20Sockil made this crazy move, right? I
1:37:23bought TKQ when it started turning that
1:37:26day when the bread thing happened. This
1:37:28thing made a crazy move, right? I was
1:37:30watching Kuru and I like and because the
1:37:34Koru was going crazy, right? And so like
1:37:36koru and that the thing where
1:37:40so if anybody like T2108 I always tell
1:37:43people right and if T2108 goes below 20
1:37:46start getting bullish if it goes below
1:37:4710 you should be extremely bullish and
1:37:49if at all it goes into single digit sell
1:37:52your wife kids donkey horses whatever it
1:37:55is and buy the market you're likely to
1:37:57make money guaranteed.
1:38:01>> Great. Could we dive deeper into the
1:38:03glow trade because it seems like a
1:38:05little bit of a standout trade for you.
1:38:07I'd love to also talk about the
1:38:09>> Yeah. GLW. Um and I'd love to Yeah.
1:38:13>> Yep.
1:38:14>> And if you could talk about like point
1:38:15out your exits too. Yeah, that would be
1:38:16great.
1:38:17>> Okay. So, what happened in this
1:38:19particular case is like and this stock
1:38:20was going sideways, right? And this is
1:38:22this is I I had looked at this stock
1:38:25every time EP9 million happens. I always
1:38:26look at it. So I had like and it looked
1:38:28at it but it is not a very fastmoving
1:38:30stock or it is not something which is
1:38:32like gots me excited and all but on this
1:38:35day when the earnings came in right and
1:38:37there was also a news that they have a
1:38:39meta or somebody has signed up with
1:38:42them. So I researched it on that day I
1:38:44looked at it and then I realized you
1:38:45look this is no more that corning
1:38:47company which I had seen sometime I had
1:38:50gone to upstate New York and I have seen
1:38:52this past this factory and all this is
1:38:54not that same old glass company. it is
1:38:57actually getting a lot of business from
1:38:59this AI kind of a thing. So I looked at
1:39:02the earnings sales I looked at all the
1:39:04things which were showing up there and I
1:39:07said like and this particular thing and
1:39:09if you see the earnings somewhere I
1:39:10should be having market search where are
1:39:13my things right I looked at all the
1:39:15things and I said okay uh this is
1:39:17something which is likely to make a
1:39:21uh around 40% kind of a move because it
1:39:24was like it had a earnings accel sales
1:39:27and I I am a sucker for sales
1:39:29acceleration but like it's not
1:39:31kind of a company it's too large right
1:39:33and so but for the kind of business it
1:39:35is 17 14 15% it was projecting it had
1:39:38like this uh it was growing hardly
1:39:41growing 14 15 and it had started
1:39:43acceleration and not only the
1:39:45acceleration in earnings but also they
1:39:47were getting this orders and also I said
1:39:49okay uh based on this based on all the
1:39:53information which is in front of me this
1:39:55is likely to make around 40% more kind
1:39:58of a educated guess kind
1:40:01And then like and I bought it and I like
1:40:04and when it started going around 40% and
1:40:07all I started tightening my stop I
1:40:09started tightening my stop and then on
1:40:11this day I had sold like 80% I was
1:40:14holding a runner and then this happened
1:40:17and I got stopped out.
1:40:20So one of the things which I look for is
1:40:22like an typically on this kind of plays
1:40:24is the first range expansion to the
1:40:26downside after my entry. So this is the
1:40:29first range expansion that G told me
1:40:31that there is no point in just sitting
1:40:32in this probably this is over and then
1:40:35then I tried again but here is the other
1:40:38thing also the catalyst have lifespan
1:40:40this catalyst again didn't work
1:40:43>> so that's another thing
1:40:46>> did you take a partial uh the first few
1:40:48days of this as well or for
1:40:50>> no I didn't take a partial I was like
1:40:52very bullish because uh I was and that's
1:40:54why I put in a larger position even in
1:40:56the case of the CR CL which I expected a
1:41:0050% move when I looked at it I said at
1:41:02least 50% move is going to happen on
1:41:04this particular
1:41:06>> so when it started approaching that kind
1:41:08of and I was not playing with sir uh
1:41:10mean after the first day's move I was
1:41:11expecting another 50%. So now I was
1:41:14playing with the CRCA not this one but I
1:41:16was tracking this for my targeting and I
1:41:18said like and look man this is like a
1:41:21good right and this is reached my target
1:41:24so I sold 80% and I said like and 20% if
1:41:27it keeps going I'll keep it and I had a
1:41:29stop at like an here half of the day and
1:41:31then I got stopped out on remaining and
1:41:35just lucky also like an after means
1:41:38there is no point in holding these moves
1:41:40are not mean all my trading is designed
1:41:42for this kind of moves. If I had to do
1:41:44something and hold it for 3 years, 6
1:41:46years or 3 months or 6 months, I will
1:41:48completely redesign my trade factory and
1:41:50do a different way of doing this, right?
1:41:54Is it?
1:41:55>> Excellent. Um, I'm sure you get this
1:41:57question all the time and people are
1:41:59probably asking it right now. Um, what
1:42:01what really separates just a normal gap
1:42:05from something that can be an APA? Um,
1:42:08again, I'm sure you get asked this all
1:42:09the time, but it'd be just good to clear
1:42:11that up. uh you need to see something
1:42:14which is like a stares at you which
1:42:16tells you that hey there is a massive
1:42:18acceleration this is why the first thing
1:42:20which I look for whenever there's a
1:42:22thing is ma which is massive it has to
1:42:25be something massive right and like
1:42:27something which is a gamecher something
1:42:30which is out of ordinary right and
1:42:32something either a massive theme or a
1:42:35massive acceleration in sales uh
1:42:38earnings or massive order or something
1:42:41big which is like a CFO leaving the
1:42:44company or something which is big right
1:42:46and basically massive now here look at
1:42:48like this CRCL right there's a
1:42:52people had very low expect and this
1:42:54works only if there is a low expectation
1:42:56right and basically uh people have high
1:42:58expectation then it doesn't really work
1:43:01very low expectation people had this is
1:43:03like IPOed after that it is like you
1:43:05know in the dustbin of the market and
1:43:07then it comes and surprises the market
1:43:09then it happens like that Or there is a
1:43:12government policy change right and here
1:43:14MP uh this was like a stock which was
1:43:17like an many years ago it had made a
1:43:20move it was in the dumpster of the
1:43:22market and then there is a catalyst was
1:43:25comes in and suddenly one day you see
1:43:27that government is taking a stake that
1:43:30was a big shock that was like and also
1:43:32the volume told you that also right even
1:43:34in this particular case I didn't buy it
1:43:35on the first day I bought it as a D on
1:43:38this particular thing So uh it's the
1:43:42massive cat it's a gamechanging catalyst
1:43:44something which is like let's look at
1:43:46like recent example which like people
1:43:49called it an EP and I mean people call
1:43:51everything an EP nowadays that is
1:43:53because they just like an this CBRL and
1:43:56I saw like everybody saying this is a EP
1:43:58this is an EP this is an EP yeah means
1:44:00like I look at CBRL which is grant thing
1:44:04right and which is that thing I looked
1:44:06at its earnings and sales
1:44:10Yeah, big deal man. Like they have to
1:44:13what? Like this is like minus 5% 3% 5%.
1:44:17It's like okay they might be turning
1:44:20around business but that's not how a
1:44:22turnaround looks. What does a turnaround
1:44:24looks like? I'll show you an example of
1:44:25a turnaround and everybody is scratching
1:44:28each other's back and kissing their
1:44:29cousin and telling this is a turnaround.
1:44:31This is what a turnaround real
1:44:33turnaround looks like. Here there is a
1:44:34real turnaround right? company comes out
1:44:36and declares earnings says we are having
1:44:39244% profitability and we are projecting
1:44:43for next few quarters our sales growth
1:44:45is going to be 18 2021 for the sign of
1:44:47size and the abbercomian which is a very
1:44:51old company and before that it was doing
1:44:52nothing it was doing minus 7% 4% 1%. So
1:44:57context was that okay this is like an
1:44:59acceleration right. So that was a
1:45:02massive turnaround and that's why the
1:45:04stock went and kept on going up. uh and
1:45:06there was I saw some of the things which
1:45:08Twitter people were asking you asked
1:45:10them what question to ask and they said
1:45:12we want to trade duration moves right
1:45:13and if you want to trade a duration
1:45:15moves you want to find genuine
1:45:17turnaround because genuine turnarounds
1:45:20if a company does a genuine turn around
1:45:21which is what happened in the case of
1:45:22Aberian pitch where like there are lot
1:45:25of factors right CEO had affair with
1:45:28some guy and uh wrong products and that
1:45:31preppy look Boston looks went out of
1:45:34fashion and things like that and then
1:45:35they managed to turn around right now
1:45:37when they do that kind of a turnaround
1:45:39this is not going to be one quarter
1:45:40right it's going to last for because
1:45:42they fix something in their business so
1:45:43it's going to last or very recent
1:45:45example if you want to see it here love
1:45:49okay uh which is southwest airline if
1:45:52you remember the history of Southwest
1:45:53Airlines Southwest Airlines in last two
1:45:55or three years had terrible problems one
1:45:58time their software froze they couldn't
1:46:00like any run flights everything was a
1:46:02mess
1:46:04competition from all the other airlines
1:46:07you name and they had problems right and
1:46:09then they did something right and and
1:46:11you see now they're projecting sales
1:46:13growth of 1819 uh 440% profitability so
1:46:17they really turned a corner in terms of
1:46:19getting things right obviously this
1:46:22happened because of the uh Iran if the
1:46:25Iran war would not have happened I'm
1:46:27sure this stock has made a real
1:46:30turnaround in business right and this is
1:46:32this is why it is a turnaround now when
1:46:34there is a turnaround you pee if the
1:46:36company has done a genuine turnaround
1:46:38that is going to stick and it's going to
1:46:40last for a long period of time but you
1:46:42have to understand and this is why I
1:46:45recommended a book and unfortunately I
1:46:47was just like you know responding to
1:46:49somebody and the moment I recommended
1:46:51that book there was a run on that book
1:46:52and the book is no more available but uh
1:46:54there's a book called stock market
1:46:56blueprint right and it's a very old book
1:46:58it's like I think an 40 50 year old book
1:47:02but in that that person gives you a good
1:47:05framework to think what is likely to
1:47:07make 500% move and turn around cyclical
1:47:10turnarounds are going to last for one or
1:47:12two there's a cyc like here is an
1:47:14example of a cyclical turner and in
1:47:16cyclical turnaround there is not going
1:47:18to be necessarily immediate earnings uh
1:47:21going to reflect that but here if you
1:47:22see dowo chemicals right
1:47:26going down down down was in the dumpster
1:47:28at the beginning of the year this was
1:47:30the worst performing stock in S&P 500
1:47:32right right and Then uh all kinds of
1:47:34problem chemical industry has this
1:47:36problem. Chinese are getting their lunch
1:47:38this is that and all and then now there
1:47:40is a turnaround in this cyclical
1:47:42turnaround right and this is a cyclical
1:47:44turnaround. This is not it's like you
1:47:45know the cycle has turned because of all
1:47:48these problem chemical industry shrank
1:47:50they reduce cost they did all this and
1:47:53now that turnaround has happened and
1:47:55this stock has made 91% more. So you
1:47:59need to have a framework for thinking
1:48:01for anything which you do like that. So
1:48:03massive is relative what is massive for
1:48:07do is not massive for SNDK in a
1:48:11technology kind of a sector. Uh what is
1:48:14massive is going to be what you see in a
1:48:16SNDK earning which is four digit or
1:48:18something like that right or move
1:48:19earnings which is very different uh than
1:48:22what you see in a retail. If there is a
1:48:24retail play, you don't expect turnaround
1:48:26is going to be 20% growth rate.
1:48:32>> Excellent. Um, perfect. So, I I think
1:48:35that was most of the questions I had.
1:48:36Did you have a few other examples that
1:48:38you wanted to run through? We've already
1:48:39covered um a lot, but I'm just going to
1:48:42run through some examples to that gives
1:48:44you visually a lot of like ideas to
1:48:46people, right? And this this is like a
1:48:48momentum typical momentum burst, right?
1:48:50And this is just a pattern based kind of
1:48:51a thing. And then it makes like this 8
1:48:549% sometimes like in a koru I discussed
1:48:57koru already h this is like a example of
1:49:00the kind of trade I always look for if
1:49:02something like this comes in I am just
1:49:04going to buy it I don't need anybody's
1:49:06permission to buy it right this is circa
1:49:09which I told you for the uh whenever
1:49:12there is a triple ETF I find and there
1:49:15are like a this is what I look for in a
1:49:17continuation setup right tightness three
1:49:19tight days and then it coming out three
1:49:21or four days is tightness and then
1:49:22sudden range expansion. So tightness is
1:49:25very important tight tight tight and
1:49:28that's what my mantra is again like this
1:49:30is a momentum burst first leg and
1:49:33continuation setup kind of a thing uh
1:49:36this is like an instead of trading AMD I
1:49:38trade AMDL so if you see this hut now
1:49:42this is an example on this particular
1:49:44day there was some catalyst and I
1:49:46researched it I said like you know I am
1:49:49not going to chase it because I didn't
1:49:51get and I didn't know even realize this
1:49:54catalyst is important right this is the
1:49:56other advantage of EP9 million but when
1:49:57I researched it I knew this catalyst is
1:49:59good so I was waiting and this is where
1:50:01I got in and I got u as a delayed
1:50:04reaction so this is also example of a
1:50:06delayed reaction EPA uh this is power
1:50:10which is an IPO again
1:50:13AI theme earnings so earnings
1:50:16acceleration so here like an 8 made a
1:50:18move as a EP9 million so this and this
1:50:22is like example of another like in a
1:50:24non-gap kind of a P9 million kind of a
1:50:27setup right sweet green which happened
1:50:29recently no cure which is just a
1:50:32reversal bullish kind of a setup this is
1:50:35something which I'm watching as a
1:50:36delayed reaction EP now because there's
1:50:38this government takes stake and after
1:50:40that it is setting up so this can be
1:50:42like example of that best buy this is an
1:50:45example of a reversal bullish again you
1:50:47see this uh it's a institutional fund
1:50:50kind of a things prints reversal bullish
1:50:52next You see, so again this is a pattern
1:50:56based kind of a trade. Lulu this is an
1:50:58example of a short where there's a clear
1:51:01catalyst and I waited and like you and
1:51:03then started so highly on this is even
1:51:06if it is a low price stock I don't get
1:51:08into but if it shows up in 9 million I
1:51:10do a research so on that day when it
1:51:12showed up now when it breaks out I can
1:51:14get into it as it comes into my price
1:51:17points and things like that. So that's
1:51:18what ul as I told you all the airlines
1:51:21were going up. This is low again this
1:51:24day
1:51:26in the morning. I didn't really realize
1:51:28the catalyst and all earnings was there
1:51:30but like and then here it showed up on
1:51:32uh reversal bullish also. So reversal
1:51:34bullish 53% in 4 days right and again
1:51:37second this day like I didn't get in uh
1:51:40like I was I had a dental appointment
1:51:43and I really wish I had didn't have that
1:51:45dental appointment. I missed 57% move
1:51:48because of that. Uh so octa these are
1:51:51just examples some of the example like
1:51:52here again I got into this
1:51:56uh he got shaken out right and it
1:51:58stopped out enter again and then the
1:52:01stock made 45% move in couple of days so
1:52:05you get sometimes you just you get
1:52:08stopped out and then you find another
1:52:10point love I discuss love with you SNDK
1:52:13this is like an one of the best stock uh
1:52:16but you're not going to get these kind
1:52:17of stocks every day right and is a so
1:52:20this is like a normal momentum burst
1:52:22normal momentum burst riot there are
1:52:26some stocks which continuously give you
1:52:2830 40% in each swing so I just have
1:52:30found a way to find those stocks and
1:52:33trade them continuously again this is
1:52:34the example of EP9 million where I only
1:52:37bought this because it should have been
1:52:39EP9 million I'm at 71% right basically
1:52:44Dale Lunar uh lunar again on the day of
1:52:47uh rocket lab earnings. I said like this
1:52:50is uh this I first bought Rocket Lab and
1:52:52then I bought Lunar. It was showing up
1:52:55in the EP9 million scan.
1:52:58Oh wait, this is again like multiple
1:53:00times traded. So yeah, National Lab just
1:53:04had AP9 million but it has EP9 million
1:53:06multiple times giving you ability to get
1:53:09in GLW. I discussed this this on this
1:53:12day I researched this. Okay. So they had
1:53:15missed earnings. They said like their
1:53:16margins are under pressure and all. So I
1:53:18was waiting that look and if it gives me
1:53:21an entry, it never gave me a DAP entry
1:53:24just went straight. So when you look for
1:53:26DP, sometimes you're going to mistrade
1:53:28because uh it just doesn't give you an
1:53:30opportunity. So that's for this is that
1:53:32that hyperlid this thing. I didn't know
1:53:35anything about it. Uh I researched this
1:53:37on this day and then EP9 million it
1:53:40showed up. The gap was very minor. These
1:53:42are the kind of trade which are never
1:53:43going to show up in your EP scan because
1:53:45they are not going to meet that
1:53:46threshold of 10% gap and then look at
1:53:49this and then again second time look at
1:53:51this. So yeah so there are a lot of like
1:53:54oracle I traded three times in this move
1:53:57first second time each time it was like
1:54:00an a million.
1:54:06>> Great. No thank you so much uh Praep
1:54:08this has been fantastic. Thank you so
1:54:10much for sharing all your process and
1:54:11also the thinking behind the process and
1:54:13how to evolve as a trader. I think
1:54:14that's what's really important. Um and
1:54:16you put out a tweet, I don't know if it
1:54:18was um uh today or in recent days about
1:54:21how to get lucky trading and like you
1:54:24know get get luck on your favor. Um
1:54:26would you mind kind of giving some
1:54:27advice around that and maybe just advice
1:54:28for traders in general who are watching
1:54:30this who want to improve, learn these
1:54:32setups and evolve? Yeah.
1:54:34>> Uh so there is a very uh he died a
1:54:38couple of years ago. So there's a
1:54:39psychologist called Albert Bandura and
1:54:41he is considered among the top four
1:54:43psychologist of all time in the world.
1:54:45He was a professor of psychology in
1:54:46Stanford I think university and this guy
1:54:50studied human achievement and he has
1:54:53this theory of like what makes people
1:54:55successful and that's the most widely
1:54:57acceptable theory about human
1:54:59achievement or what makes people
1:55:01successful and he says that there are
1:55:03two elements to people's success in
1:55:06life. One of them is the self-efficacy
1:55:08beliefs that is their own belief about
1:55:10their ability to perform a particular
1:55:12task or do something right and basically
1:55:15but there is a second thing which is
1:55:16equally important and the second thing
1:55:19is a chance events
1:55:21which is something which can which is a
1:55:24fork or something which you didn't plan
1:55:26for which is not like something
1:55:27completely random thing and he gives his
1:55:30own life example that he was a Canadian
1:55:33right and he came to us to do accounting
1:55:38He was in accounting class,
1:55:40>> second year or something. He was like in
1:55:42a second year of accounting class and
1:55:44his friend invited him to go to
1:55:46bullying. So the friend had invited
1:55:48other people. So there was one girl he
1:55:50met there. He he got smitten by that
1:55:52girl and that girl was doing psychology.
1:55:55So in order to spend more time with her,
1:55:57he changed his major from accounting to
1:56:00psychology and he went on to become the
1:56:02greatest psychologist of all time kind
1:56:04of a thing. So there are these chance
1:56:07events or lucky events uh which
1:56:11so he went on to study luck and he came
1:56:15out this chance events or it's called a
1:56:17psychology it's a very well-known
1:56:19psychological like I have some
1:56:21background in psychology so I know this
1:56:23uh it's one of the seinal paper in
1:56:24psychology which is like people's life
1:56:27change through some
1:56:30lucky event some random this thing right
1:56:32and some uh like And a person joins
1:56:37stock besides and he sees the setup and
1:56:39he takes that and he goes on to make 100
1:56:41million that is like lucky event right
1:56:43and it's not like a planned thing kind
1:56:44of a thing. So then the question is how
1:56:47do we become lucky and in order to
1:56:50become lucky there is this theory called
1:56:52surface area of luck or the more
1:56:54interaction you have random interaction
1:56:57the more the chance that you're going to
1:56:59get lucky. If you're going to be
1:57:00socializing and with only a set of
1:57:03people or a lot of people tell I see on
1:57:05Twitter people say oh just go and sit in
1:57:06a cave and you'll become a successful
1:57:08trader
1:57:10for some one person it might happen but
1:57:13it is not the way you can you have to
1:57:15get lucky by talking interacting with
1:57:18lot of traders talking to as many
1:57:20traders like you and I just uh I will
1:57:23give you an example of like really this
1:57:25is real life which has happened in the
1:57:27last couple of years DP which I
1:57:28discussed with is a setup is not my
1:57:31original idea. Okay. And this is
1:57:33completely how luck happens and how
1:57:35serendipity or complete luck things
1:57:38happen. I was in Costco in the fruit
1:57:41aisle and one woman comes running and
1:57:43says are you stop me? I said yeah mean
1:57:47other people are looking this guy
1:57:48celebrity. She says can I take a selfie
1:57:50with you? I said uh okay like and I was
1:57:52so embarrassed right because other every
1:57:54other other people are all looking at me
1:57:56who's this guy like who's celebrity and
1:57:58who's come to Costco she says I've been
1:57:59watching your video this and that and so
1:58:01I started talking to her she said like
1:58:03I've been trying to do this for 3 years
1:58:044 years I'm not successful this is what
1:58:07blah blah blah so I said like okay
1:58:09you're local come to my office and we'll
1:58:11talk so she came to the office and
1:58:14talked now she has two young kids and
1:58:17things like that and all so she can only
1:58:20trade during a time period and all. So I
1:58:22said like in a you have to find
1:58:24something which will work for you and
1:58:26because she's local she just stays like
1:58:28few miles from my house. Multiple times
1:58:30she and her husband they both trade
1:58:31together now. Uh they came and met me
1:58:34and we had lot of discussions and things
1:58:36like that and then we came to this
1:58:38conclusion saying that they can't really
1:58:40do this as a EP or something so they
1:58:42should look for watch list and operate
1:58:44from a watch list. They went and came
1:58:46back to me after 3 months and said hey
1:58:48EJ we have created this process called
1:58:51delayed reaction EP. We go through in
1:58:53the night create a watch list watch like
1:58:55this we only have three stocks and we
1:58:57keep like very close stop and we made
1:59:00some 100% in last 3 months
1:59:04and I like blown apart right and they
1:59:06gave me this whole idea now that became
1:59:08my setup now what is the probability
1:59:10that you go to buy bananas and you meet
1:59:12some random person who wants to drink
1:59:14selfie with you and it ends up into an
1:59:16idea and those that couple have done
1:59:18very well this happened three years ago
1:59:20they are like their performance is one
1:59:22of the best I have seen like they have
1:59:24done like so good that if there's a next
1:59:26market wizard book I will definitely
1:59:28recommend it then what is the
1:59:30probability of this is chance event
1:59:32right uh but if you have a surface area
1:59:34of lurka because I'm visible I have
1:59:36YouTube channel random person meets me
1:59:38and changes things
1:59:42so people should participate go to uh
1:59:45talk to other traders like and I go and
1:59:47attend some I attended that conference
1:59:50in last I met all these most of these
1:59:53people who are in the market wizard
1:59:54book. I personally met them right and I
1:59:57saw could interact with them. So you
1:59:59learn so much by personal interaction
2:00:01right and somebody has solution to your
2:00:02trading problem.
2:00:05>> Yep. Excellent. Well Praep uh like I
2:00:09said uh it's always a pleasure talking
2:00:10with you and and learning from you. So
2:00:12thank you so much for for all you share
2:00:14both both here on Twitter on your site.
2:00:16Uh we all appreciate it. Um so thank you
2:00:18so much for your time to everybody
2:00:20watching. I hope you guys uh enjoyed
2:00:22immensely. Leave a like down below if
2:00:23you did. Subscribe if you're new to the
2:00:24channel. And uh Praep, thanks again. And
2:00:26and we'll be right back. Cheers.
2:00:32[music]

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