The Do's and Dont's when the Market is Hot. — Transcript

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1. 0:02What's up guys? Steven Ducks here. Today
2. 0:03we're going to talk about a couple of
3. 0:04the play that happened this week. The
4. 0:05market started getting very very hot and
5. 0:08uh we got pretty much a play every
6. 0:09single day. We're going to talk about a
7. 0:11couple tickers and in today's recap,
8. 0:13generally including all types of
9. 0:15strategies and uh hopefully you guys
10. 0:17enjoyed it. OTOC, this is a decent
11. 0:20bounce short but it wasn't a very very
12. 0:22bounce good bounce short since the
13. 0:24neutral areas around 2.08. So when you
14. 0:27are seeing there's a heavy resistance
15. 0:29and there's no volume trading across the
16. 0:31board and until um Friday, then you
17. 0:35realize $2 area is very close to $3
18. 0:37area. So the maximum spiking percentage
19. 0:40is around 30% to 40% and the stock I
20. 0:43think is started spiking at 1.91. So
21. 0:47overall spiked about 40% uh I think just
22. 0:50little bit above 40%. So that doesn't
23. 0:52really meet the criteria of bounce
24. 0:55short. Bounce short needs at least 50%
25. 0:57for the bounce short to be able to work.
26. 0:59And if it doesn't really meet the
27. 1:01criteria, barely meet the criteria, the
28. 1:03risk reward will get very very strange.
29. 1:06So if you take a look of this parabolic
30. 1:08short and shorting to resistance and you
31. 1:11can see uh the stock came back from 2.41
32. 1:15then never cracked 2.40
33. 1:17to 2.36-ish and then later of the day it
34. 1:19actually squeezed. So if you really
35. 1:21shorted the let's say momentum breakdown
36. 1:23around 2.7 to 2.65,
37. 1:26then if you want to cover end of the
38. 1:28day,
39. 1:29you make nothing because the risk reward
40. 1:31is not there. So just be careful when
41. 1:34you are using bounce short strategies,
42. 1:36always make sure the stock spikes
43. 1:37enough, has good risk reward and trades
44. 1:40out a amount of volume. If the stock
45. 1:42doesn't really trade out a amount of
46. 1:43volume, let's say
47. 1:45uh traded only 1 million volume, then
48. 1:48the stock becomes not tradeable. If
49. 1:50you're trading too much volume, let's
50. 1:51say let's say the stock traded about 70
51. 1:53million volume intraday, then if you
52. 1:55take a look at the resistance,
53. 1:58then uh the stock doesn't really have
54. 2:01enough resistance to hold let's say 70
55. 2:03million volume volume intraday. So
56. 2:07if the volume's too much, make sure cut
57. 2:10losses quickly. If the volume's too low,
58. 2:12you cannot trade because you will affect
59. 2:14the volatility and you won't be able to
60. 2:17get a very good executions that well. So
61. 2:20IMRN is also a gap up short. If you take
62. 2:23a look at two-year chart, no resistance
63. 2:25whatsoever except this one line
64. 2:27resistance that doesn't really count.
65. 2:28Wait until the stock forms a correction.
66. 2:31Make sure the stock loses momentum.
67. 2:34Then go ahead and short it. So let's say
68. 2:36the correct I would say shorting point
69. 2:38is around this
70. 2:396.57 failed perk. Sometimes if the
71. 2:43stock's on low float, it can spike about
72. 2:4520% to 30%, sometimes even 100%. So
73. 2:48within this first half an hour, try to
74. 2:51not place any trades until the stock
75. 2:53start to lose its momentum. What do I
76. 2:55mean by lose momentum? It needs to crack
77. 2:57at least 50%
78. 2:58for the stock to completely lose
79. 3:00momentum. Then you can start getting
80. 3:01some
81. 3:02um the risk reward over there. If the
82. 3:04stock even though sometimes it loses 50%
83. 3:06of its own gain, so let's say 7.39
84. 3:10uh going back to 5.21. If if it's
85. 3:13trading like this amount of volume,
86. 3:14let's say let's say trading around 30
87. 3:16million 40 million at 12:45, then you
88. 3:20will trade about 60 million overall. So
89. 3:23where are those 20 million 30 million
90. 3:25shares I'm going to go? It's going to
91. 3:27trade and if the stock has some low
92. 3:30float, you will cause a high demand and
93. 3:32low supply, stock goes up. You will play
94. 3:35those type of weird actions that stock
95. 3:37can read, break this morning high and um
96. 3:41squeeze in after hour. So always be
97. 3:43careful with those gap up short. I
98. 3:44wouldn't be suggesting trading these as
99. 3:47a beginner. Highly suggest avoiding this
100. 3:49type of play.
101. 3:51Uh without resistance, don't try to
102. 3:53guess. Wait until the stock forms a
103. 3:55correction. Make sure it loses momentum
104. 3:57or starts spiking. The key is don't
105. 3:59trade first 20 minutes until the stock
106. 4:02makes its decisions. Now the last ticker
107. 4:04I'm going to talk about is MTP. This one
108. 4:07was also a very crowded trade. If the
109. 4:09pre-market volume traded too much, let's
110. 4:11say over 4 million 5 million, the stock
111. 4:13becomes not tradeable at all. Uh if it
112. 4:15does have resistance, depends on how
113. 4:17heavy the resistance is. Uh if it the
114. 4:19stock does not have heavy enough
115. 4:21resistance, the stock uh tends to break
116. 4:25of its own resistance if it's trading
117. 4:27too much volume pre-market. And we only
118. 4:29seeing at 4 million 5 million volume 6
119. 4:32million volume pre-market, don't try to
120. 4:34trade those type type of ticker. Uh I
121. 4:36sized in small and into this perk and
122. 4:38shorted a little bit and try to win the
123. 4:40live trade and cover in the 1.80-ish.
124. 4:44So made uh 13,000 I think. I made about
125. 4:48uh 18,000. Into those type of play,
126. 4:51always sizing very very small and it's
127. 4:53not some type of super good risk reward.
128. 4:57If the stock loses its momentum uh at
129. 4:59the first couple candles, you don't get
130. 5:01that much risk reward. So
131. 5:04always sizing small. If you have
132. 5:06resistance,
133. 5:07that's better. You can size in a little
134. 5:08bit more. If it doesn't have resistance,
135. 5:10make sure sizing small and since you
136. 5:12don't have that much risk reward, so
137. 5:14make sure cover uh into the weakness
138. 5:16along the way uh into the close. Don't
139. 5:19hold everything at the close because
140. 5:21that's one of the pressure risk as well.
141. 5:24Now let's talk about CEI. CEI is one of
142. 5:26the very low float that happened last
143. 5:28week as I talked about it. Uh this one
144. 5:30doesn't really have a consolidating
145. 5:31resistance. So if the stock really tends
146. 5:33to spike again, $5 will be not that
147. 5:37heavy resistance.
148. 5:38Uh it has one little bit
149. 5:41consolidating resistance around $4-ish
150. 5:43and into Friday spike,
151. 5:46espec- especially into this day. When
152. 5:48the stock tends to spike and doesn't
153. 5:50really meet the criteria,
154. 5:53it doesn't really spike to resistance,
155. 5:55don't try to short into this type of
156. 5:57play or you will become a potential
157. 6:00long. So if the stock's on SSR
158. 6:03and it's too far from resistance
159. 6:05and it's gaining volume and it's a micro
160. 6:08float, then it will become a potential
161. 6:10long. It will squeeze people because if
162. 6:13the stock does not have heavy enough
163. 6:15resistance on micro float, the stock
164. 6:17tends to spike especially on SSR and if
165. 6:20you are very far from the resistance,
166. 6:23let's say the resistance around $5 then
167. 6:26the stock's at two, you will have
168. 6:28another $4 to spike. So at this point if
169. 6:31the stock is gaining volume, don't try
170. 6:33to think about shorting. Try to think
171. 6:35about going long. And make sure you have
172. 6:38a decent risk uh because on this type of
173. 6:40play, especially on SSR, the stock tends
174. 6:42to drop 50% in one candle out of
175. 6:44nowhere. So also include a very very
176. 6:47high risk. And let's say if you bought
177. 6:49at 2.48 risking 2.38, yeah that's a
178. 6:52really good risk reward. So the risk is
179. 6:55for you to control and sometimes the
180. 6:57stock doesn't really have a high risk.
181. 6:59It depends on how you control the risk.
182. 7:02So this is when you want to master penny
183. 7:04stocks, master how to control your risk
184. 7:07first before you go into any patterns,
185. 7:09tracking statistics. Uh that's the
186. 7:11number one step because that's where you
187. 7:13can achieve consistent profitable very
188. 7:15very quickly. After that go into your
189. 7:17strategy, increase your winning
190. 7:18percentage, then
191. 7:20go into specific details to increase
192. 7:22your maximum risk reward. That's the
193. 7:24three steps you need to take for you to
194. 7:26become a very good consistent profitable
195. 7:29trader. Hopefully this video helps.
196. 7:30There's a conference coming up very
197. 7:32soon. Uh it's around August 17th, 18th,
198. 7:3419th. It's going to be a month away. So
199. 7:36if you want to come to watch me live
200. 7:37trade, uh register that link below. I
201. 7:40will put it in the bio and I will see
202. 7:42you guys
203. 7:44next video.