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Verified $5M+ Trader: LIVE Trading Using His EXACT Strategy — Transcript

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0:00At this point, you'd already made over
0:01$35,000 on this trade.
0:03>> Once I'm in a position, I just don't
0:04look at the P&L. I just look at the
0:06chart. Even if that's going to be a
0:07losing trade, the disciplined way of how
0:09to deal with the losing trade is this
0:11guy has made $5 million from the
0:14markets. Introducing Gala Trades. On
0:16this episode, Gala goes through his
0:18specific simple price action strategy
0:21that he backs up with confirmation from
0:24[music] using orderflow. So many people
0:26kind of assume that the trend is some
0:27kind of a two parallel lines and the
0:28price bouncing from the upper and lower
0:30boundaries. And in my opinion, they're
0:32totally untrue. Best case for me is when
0:34the price is touching, dipping slightly
0:36lower than the level and then getting
0:38back above the level. So my rule is just
0:40not take three entries on the same
0:42setup. If I'm doing three entries,
0:44that's the break [music] of rule. That's
0:46overtrading for me because
0:47>> and not only that, in this episode, he
0:49goes through his exact step-by-step
0:51process, but then trades it live during
0:54New York session.
0:55>> Okay, we closed 10 contracts. Now, we
0:57have only six contracts left. [music] We
0:59made 1,500 and 500 running.
1:01>> So, $1,200 in 7 or 8 minutes. It's
1:03absolutely incredible. You know,
1:04>> when the market opens, I'm not rushing
1:06into a trade. I I'm usually waiting for
1:08the first lightning candle to close
1:09because Scarlet is as transparent as it
1:11comes with live loginins [music] to his
1:13brokerage to back up his profitability.
1:15And in this episode again, he does it
1:18live. Make sure to tune in to Chart
1:19Fanatic. At moments like this, I'm a
1:21little bit scared like maybe I missed
1:22the opportunity because price did not go
1:25slightly lower than the level. One of
1:26the worst excuses that I hear from the
1:28people is when they refuse the
1:32>> We have a phenomenal trader who's done
1:34over $5 million in total profits so far
1:37in their day trading career. Today we're
1:40going to we're in for a treat, right?
1:42For the second time ever, we're doing
1:43live trading here on Chart Fanatics.
1:46Now, before we get there, we're going to
1:47go through our usual strategy breakdown.
1:50We'll trade examples and then live
1:52trading the markets where the markets
1:54open in just over one hour.
1:56Without further ado, it's the one and
1:57only Kamjan aka Gala Trades. [music]
2:01>> So if we start right away, let me just
2:05put a pencil. I don't have any
2:07particular name for the strategy, but
2:09let's just say price action. So the
2:12first thing that we have to focus on is
2:14the trend. So let me just write trend.
2:19So many people kind of assume that the
2:21trend is some kind of a two parallel
2:23lines and the price bouncing from the
2:25upper and lower boundaries and in my
2:27opinion that's totally untrue because
2:29even in there like two parallel lines
2:33price can be going higher or lower than
2:35those lines. So in my opinion it's
2:38better to use the terms like lows and
2:41highs because price might be having just
2:44some different lows and highs but you
2:47can always identify whether when the
2:49price is pivoting. So those points this
2:52is the high these are the highs these
2:55are the lows these are the lows. So when
2:58I identify the trend I just look at the
3:01highs and the lows because the most of
3:03the time the chart is trending but
3:06sometimes there might be the moment
3:07where the trend is inconsistent and it's
3:09choppy but here even even in this
3:11example it's quite choppy. You see the
3:14lows are getting higher, the highs are
3:16getting higher. But here you have some
3:19indistinct knowledge about whether it's
3:21going to be going down creating the
3:24lower high or maybe it is
3:29looking for the continuation for for
3:32even higher high.
3:35So that's basically the knowledge that
3:38we need for the trend analysis.
3:41>> And for lower lows or a downward trend,
3:42it would be the opposite.
3:43>> Yeah. Yeah. Yeah. And always when I'm
3:46doing the strategy, I'm always asking
3:49myself, why do I need it? So I just
3:52explained the trend analysis. So why do
3:53I need it? I need it to know which side
3:57of the options I'm going to be trading.
3:59So if the market is uptrending then my
4:03I'm going to be looking for the calls.
4:06If I see the downtrend on the particular
4:07stock or chart I'm going to be looking
4:10for puts. So that's the simplest
4:13approach that I have with the trend
4:14analysis. I'm just going to using it
4:16just to pick the side that I'm going to
4:18be trading and nothing less I mean
4:20nothing more than that. So I'm just
4:22trying to keep it as simple as it is
4:25with everything.
4:27So let's say I have already identified
4:29the trend and let's say the trend is up
4:33uptrend then what's going to happen next
4:36is I'm going to be identifying the
4:39levels the levels and also the the trend
4:42I usually identify at the hourly time
4:45frame. So on the hourly time frame we
4:47might be having let's say some trend
4:50like this. I have I have already
4:53identified the lows, the lows, the highs
4:57and highs. And the thing for me to
5:00identify the level is I need to see the
5:02pivoting points. So the pivoting point
5:04is going to be this one, this one and
5:08this one. There can be a little bit of
5:10the tweaks of how to identify the levels
5:12because usually I might be looking I
5:15might be ignoring the weeks of the
5:17candles on the hourly. I might be
5:19ignoring them and looking only for the
5:22bodies of the candles because where the
5:24candle is opening is more important for
5:26me. So if the candle on the hourly is
5:28looking like this, let's say this is the
5:30green candle
5:31>> and prior to that I have the red candle.
5:35Let's say
5:37so I'm going to be drawing the level
5:39simply at the open of this one candle.
5:42So that is the horizontal line the ray
5:45this is my critical level and usually
5:48I'm having high confidence in those
5:51pivoting points that have those levels.
5:54So at those levels I'm looking for entry
5:58in my positions during the day. So, it's
6:00important for me to identify whether the
6:02price is closer to this one level, let's
6:04say, or maybe to this one level on the
6:08pre-market. On the pre-market, price is
6:10going to be closer to either the higher
6:13level or the lower level. So, let's say
6:16the price is closer to higher level and
6:19having price right there on the
6:21pre-market. What I'm going to do is on
6:24the on my pre-market plan, I have the
6:26uptrend. That means that I'm going to be
6:29looking for the calls. I see those
6:31levels and the closest level is this
6:33one. So, I'm going to be looking for the
6:36price to have confirmation the
6:38acceptance above that level. But I'm not
6:41rushing into the trade at the moment the
6:42price is breaking that level. I'm going
6:44to be waiting for the price to break and
6:47hold. So that's the reaction of the
6:49price to that level because sometimes it
6:51might be happening when the price is
6:53breaking the level, not getting accepted
6:55and then going down even further to the
6:57to the downside. So it's important to
7:00wait for the reaction and wait enough.
7:04So that's the point that can get tricky
7:06because I might be even on this chart I
7:09might be showing a couple of the
7:11examples.
7:13So price might be just approaching the
7:16level and now I might have less of a
7:19patience. I might be scared that the
7:21price might be just going to the upside
7:23and going here just being scared that
7:27price might not touch the level and then
7:29go for the profits. That happens a lot.
7:32But I try to keep myself disciplined and
7:35wait at least for the level touch. But
7:39the best case for me, best case for me
7:42is when the price is touching, dipping
7:44slightly lower than the level and then
7:46getting back above the level. So that
7:49way prices on whether 2 minute, 5 minute
7:52candle time frame, it's creating
7:56some kind of a candle with week below
7:58the level, but the body above the level.
8:00So that's the perfect entry for me
8:02usually for the let's say for the
8:04breaking retest uh candle pattern. So,
8:08that is the moment when I identify my
8:10entry as close as possible to my level.
8:14I'm going to try to get as close as
8:15possible to my level because I'm going
8:17to keep my stop loss quite tight, quite
8:20close to this. If I have the week at
8:23this area, I'm going to be having just
8:25maybe an inch, maybe a pixel below that
8:28as a stop-loss because that's the place
8:31where price got bought up very quickly.
8:34So that is going to be my risk with
8:38that. So with that, if I identified my
8:42risk on the options, it might be a
8:44little bit vague. You you have like
8:47let's say five to 5 to 8% on the stop
8:51loss. And you know, you never know is if
8:53it's going to be 5% or 8%. If you wait
8:56long enough, it might even get to 10% of
8:59the risk with that stop loss. And you
9:01always want to assume some price on the
9:04option option chart. That is going to be
9:06your stop loss. Let's say here we bought
9:08at 10 0 at $1 the contract and here it
9:12is let's say
9:1592 let's say. So risking 8 cents means
9:18that I want to get at least at least
9:21twice as much as that. So that's going
9:22to be 116
9:25which might be probably somewhere
9:27somewhere around this area. Yeah. And
9:31one more thing about this type of
9:33entries is the week itself. At this
9:36example, the wick is not big, not too
9:39tiny. That's very optimal size. But
9:42usually
9:44things are not
9:46as perfect as it is as it can be.
9:51So you might be having the candles
9:54that are touching it and quickly
9:56reversing
9:58making it
9:59a hammer candle. That's the type of
10:03moments when you're not having
10:04opportunity to go in because of the of
10:07the speed of the price got bought off.
10:10>> So, one thing I was just wondering here
10:12in terms of the trend side of things, so
10:14picking your highs and lows to then mark
10:16out your levels. What time frame are you
10:17normally doing that with?
10:18>> Mhm. So, both the trend and the level
10:22analysis always done for me at the
10:24hourly time frame.
10:25>> Okay, gotcha. And then in terms of this
10:27then when we're looking at the entries
10:29and the reaction to the level what time
10:30frame is that normally
10:31>> that is usually two to five minute
10:35>> time frame and usually I'm giving more
10:38preference to the five minute time frame
10:39but if both of them are looking great
10:41then that's even better but if the two
10:43minute is looking good but five minute
10:45is looking bad then I'm not going to go
10:48because the five minute is going to
10:49dictate more conviction for me in that
10:53trade.
10:53>> Mhm. So you might ask why one hour time
10:56frame for picking the trend for picking
10:59the levels because sometimes they can be
11:02like the daily time frame 4hour time
11:03frame that is quite popular for me I've
11:07been analyzing like most of my trades
11:10are having the duration like within 1
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13:06>> So, and I'm and I'm also trading for
13:08only 1 hour a day. Um I mean I mean
13:12preparing 1 hour then journaling for 1
13:14hour but the execution part is 1 hour.
13:17So if all of my trades are having the
13:19entries and exits within 1 hour. So it
13:22might make sense for me to make analysis
13:24for the closest upcoming future which is
13:26going to be on the hourly time frame. So
13:30this is the type of candle that can turn
13:33from this to that without giving you the
13:36opportunity to hope in a trade. So, I'm
13:39going to be at this at this point, we'll
13:41be watching for the retest again of the
13:43level.
13:44But if the price is going to just go,
13:46then it's going to be a missed
13:47opportunity for me and I'm not going to
13:49be having any formal. I'll be just
13:51closing that chart and focusing on the
13:52other ones.
13:53>> So, do you want the price to go below
13:55the level and close back above? Usually
13:58>> in this scenario
14:00>> um here, yeah, I would want the price to
14:03go slightly maybe slightly lower than
14:06the level and then go back because at
14:09some point it is going to be the moment
14:12it's going to be going back above the
14:13level it's going to be looking like like
14:16this candle.
14:17>> Yeah.
14:18>> Which is a perfect bouncing candle for
14:20me. So that's the perfect conditions.
14:22And also the other like moments when I
14:24hesitate to enter it's going to be the
14:27candle the same candle but the wick is
14:29bigger. So I mean I might be having this
14:34type of stop- loss because the price got
14:36bought quickly at this area but at the
14:39same time that's way big of a risk for
14:41me to take especially with bigger
14:43position size. So the remedy for that is
14:45either to go with a smaller position
14:47size and keep this wide stop loss or
14:51just skip it for me because usually I'm
14:54quite I'm quite skipping a lot actually
14:57on the trades because the conditions are
14:59not quite pleasant for me and I'm also
15:01feeling a lot of FOMO
15:03>> because of the missed opportunities. But
15:04that's also part of the game that I
15:07recognize. So basically that's it.
15:09That's the that's the amount of the
15:12information that I need to enter the
15:14trade.
15:14>> Okay.
15:15>> And once I'm in a trade, my goal is to
15:19patiently wait for the price to let's
15:21say reach this area to get to two or
15:24multiple. And then comes the toughest
15:27part especially for me because price is
15:30at two or multiple. I can just close it,
15:33quit, and then just maybe finish the
15:36day. Or I might be just trimming some
15:38part of it and then leave some runners
15:41to it. And leaving the runners and
15:43having patience with them is something
15:44that I'm working on myself on quite
15:47quite a long time. And for me, the
15:50optimal way is once I trim, I want to
15:53shift my stop loss. And the higher I
15:56shift, the more calm I can feel myself.
15:58>> Yeah. from this let's say from this
16:01point. Okay, chart is a little bit miss.
16:03So, let me clear it up a little bit.
16:07Let's say we've been having this type of
16:09good candle, good week and having this
16:12smaller risk right there from from that
16:16here is going to be around tour multiple
16:19and by that point my stop loss is going
16:22to be above my entry. So from this point
16:25maybe to
16:27this point already where even when the
16:29price is going to hit my stop loss, I'm
16:31still going to be profitable on the last
16:32contracts.
16:33>> Yeah, that's how I make myself less
16:36stressed about the trade during the
16:38trade. So basically that's kind of a
16:42core fundamental information that we
16:43need about the trade about the way how
16:46we perceive the trade. Um so basically
16:48we need the to identify the trend on the
16:51hourly then we need to identify the
16:54levels also on the hourly
16:57then when it comes to the market open by
17:00the way these two are done before the
17:02market opens prior when you're doing
17:04your premarket plan.
17:06>> Yeah. So after that, after everything is
17:08ready, then you prepare your pre-market
17:10plan. You kind of sketch whether you
17:13want the price to break or if the price
17:15is close to this area, you might want to
17:17to see bounce off of the level below
17:20that. So after your pre-market plan is
17:23ready on the market open, you look for
17:26usually 5 minute to two minute time
17:29frame and then you look for candle
17:32patterns. And usually for candle
17:34patterns, I have quite a few of them.
17:38>> The beauty is we're going to see what
17:39this looks like live depending on what
17:41the market depending what the market
17:43gives us today, if it gives anything.
17:45Um,
17:46>> as always, we are at the mercy of the
17:48market and so it'll be very interesting
17:50no doubt.
17:52>> So the simplest one is just a regular
17:56break and retest.
17:58we have some level and if we're looking
18:01for the calls,
18:03we want the price to break and retest
18:07and have some good reaction at the
18:09retest. And for the for the puts, same
18:12thing for but for the opposite side. Um,
18:14when it comes for the chart patterns, I
18:17usually want to have maybe one or maybe
18:21even more than one retesting candle. So
18:24that's going to be the level.
18:26You want to have some trending breaking
18:29candle that is closing above the level
18:32on 5 minute.
18:34On five minute it is closing above the
18:36level. Then you want to see the next
18:39candle
18:40retesting and the ideal case as I said
18:43is having small week below the level
18:46because that's kind of give you the idea
18:48where the price got bought quickly. So
18:52here with small risk you can have the
18:56potentially good breaking retest pattern
18:59and look for the price to continue to
19:01grow to keep most importantly to be
19:04accepted above the level not going back
19:06below the level but in case if we will
19:09be having more retests
19:13in in case of we will be having more
19:15retest that's still fine.
19:18Let's say still breaking candle then the
19:22retesting candle have some struggling
19:25candle and then another retesting
19:28candle. And the best thing the best
19:31thing usually you have like not send to
19:34send but close areas for the weeks. You
19:38pick the lowest one and you keep this
19:41area as your stop loss
19:43>> and then your entry as close as possible
19:45to the level is fine. So let's say on
19:48the level this is your risk and the rest
19:50is just to hold to two R multiple and
19:54what I'm going to say is a two R
19:56multiple is great some people are
19:59underestimating it looking for 10R 10
20:02maybe five R like some home run trades
20:06>> but for me it's the two R or maybe 1.5 R
20:11small trades that are making the most
20:13amount of the profits for you at the end
20:14of the year the home run trades They
20:17might be good, they feel good, but at
20:19the end of the year they are
20:20accumulating to smaller part of the
20:23profits rather than the regular ones.
20:26>> So that's what I what I take on on this.
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22:19Trader Apex today. Let's get back to the
22:22episode. In terms of the 2R like or 1.5
22:25where it may be, how much do you look to
22:26scale out or do you close I know you
22:28said about moving to break even. So do
22:30you do you close like a fixed amount per
22:32trade when you get there?
22:35>> That actually
22:37that's a very depending on how I'm
22:39feeling about it. So let's say this is
22:42trade number one for me to take during
22:44the day. Let's say trade one. And I'm
22:48feeling good. I'm feeling good because
22:50the price is not hitting my stop loss.
22:52going for the two or multiple. I might
22:54be trimming let's say half
22:57half of my position.
22:58>> Okay.
22:59>> And then let the other half run maybe to
23:01three or multiples. But even when I'm
23:04letting it run, I'm going to shift the
23:06stop loss higher.
23:08>> Mhm.
23:08>> So that even the other half is going to
23:10be triggered at profit. Closed at
23:14profit.
23:14>> Yeah. But there can be some cases when
23:17I'm at trade two, let's say, and my
23:20trade one was negative, let's say, and
23:22then on the trade, I'm seeing this good
23:24pattern, good setup. At that point, I'm
23:27going to be more preser uh I want to
23:30preserve the capital. I want to be more
23:32conservative. I might be just even
23:34closing 80% of my position or sometimes
23:37even 100% if I'm feeling stressed about
23:40the trade. I feel like the trade is
23:43going to take some time and that when
23:45the time passes, you see the DK, you see
23:47the IV crush and that's going to just
23:49slowly take all your premium. So, it
23:52just depends on what circumstances you
23:54have when you are in the in the in the
23:57holding phase of the trade.
23:58>> Mhm.
23:59>> But usually if everything is good,
24:01that's 50%.
24:03If I'm feeling let's say adventurous at
24:06very rare moments, I might be even like
24:09even smaller than that. I might be even
24:11like 30% trimming and then most of the
24:14part of the position I might be letting
24:16it run but that's quite a rare habit.
24:19>> I'm trying to be more preserving
24:21conservative nowadays.
24:23So yeah and also uh one another good
24:27factor for me to hold is the candles the
24:31color of them. If I'm in this long
24:34position, in this call position and I
24:36see green candle, green candle, green
24:40candle, no red candles, it means that
24:43the momentum is strong and I want to
24:45keep this thing. Okay, so that might be
24:47the reason for me to reduce the
24:50percentage of the trim for the for the
24:51first trim. So I might be even like
24:54taking let's say 20% trim and then
24:58letting it run. But at some point I'm
25:00going to be feeling greedy. I know
25:02myself and I will be
25:03>> I will be leaving only very small amount
25:07>> trailing.
25:07>> Yeah.
25:08>> And the stop loss stop loss it's not
25:10it's never at the same place. I'm trying
25:12to shift it with every let's say pipin
25:15candle shifting shifting shifting. So
25:19even at some point your stop loss is
25:21going to be at your multiple let's say.
25:23So yeah, the good thing about having
25:26only small amount of the runners at some
25:28point is they're going to be stress free
25:30because even if you don't have the stop
25:33loss and let's say your last 10%
25:36contracts,
25:37>> Mhm.
25:37>> they're going to go absolutely to zero.
25:40You're still going to be profitable in a
25:41trade. That's that's best state for me
25:44to be on. But still, even in those
25:47trades, I might be kind of scared and
25:51closing even those small runners at some
25:53point without letting it run fully. When
25:57you're thinking of a beginner who's say
25:59trying to implement this or, you know,
26:01looking to implement this, what's like a
26:03a struggle or a key hurdle they should
26:05be aware of or to help them maybe be
26:08something to focus on?
26:10Yeah, I think the most important thing
26:12uh and it doesn't matter if you're the
26:14beginner or the advanced trader is this
26:18risk.
26:19Let me use the red color.
26:23This risk
26:25you have to know your risk on options.
26:29You kind of plus minus 5 10%. You know
26:32how much you're risking
26:33>> but you have to accept that risk.
26:36>> Yeah. when you're going into a trade,
26:38just don't stick to that to that amount
26:40of the money. Just let it go if the
26:42price is going to touch the stop loss
26:44because you never know if the trade is
26:45going to be successful or not. So, you
26:47have to accept the case that you are
26:48losing money. If you are unable to to
26:52accept the risk, then it means that you
26:54either have to size down or just don't
26:56take the don't take the trade at all.
26:59>> If you can accept, let's say that's 1K
27:01of the risk that you're putting into the
27:03trade. If you're okay losing 1K, if the
27:06price goes to the stop loss, then okay,
27:08you get you can go for that trade. If
27:10you are not comfortable, go for 500
27:12bucks
27:13>> or maybe even lower than that if you're
27:15uncoupled.
27:15>> Is there times where I know you
27:18mentioned you might have trade one that
27:19loses then trade two. Is there times
27:21where this sets up but then it looks
27:24great, this then wicks you out,
27:27>> but it still keeps closing above.
27:29>> Is that still something you would look
27:30to take? Is there a certain rule if that
27:33was to happen? Mhm.
27:34>> How many trades you give yourself before
27:36then saying regardless of what happens,
27:38that's it. I'm done.
27:38>> Yeah, that that's that's a great
27:40question. I have a rule on that by the
27:41way. So, let's say I'm going in here
27:44having this stop loss and then I got
27:46stop loss here.
27:47>> Mhm.
27:47>> Then I see the pattern is still forming
27:50still multiple candles bouncing off of
27:53the candle off of the level. That's
27:55actually uh the part of luck in the
27:58trading because you might be opening
27:59this chart when it's having only one
28:02candle.
28:03>> Yeah.
28:04>> That is going to stop loss you after the
28:07next candle or you might be just looking
28:09at some random c random chart and then
28:12after some time looking at this chart
28:14already with three candles which is
28:16better setup actually. So that's element
28:18of luck on the trading. But my rule if I
28:21got stop loss once I can take it for the
28:24second entry. But my rule is just not
28:27take three entries on the same setup. If
28:31I'm doing three entries, that's the
28:33break of rule. That's overtrading for
28:35me. So maximum two attempts on the same
28:38setup for me. That's the rule that I try
28:41not to break.
28:42>> Gotcha.
28:43And where should we go from here?
28:46>> Uh right. So that was that was the
28:49simple breaking retest and I'm going to
28:52go for the other couple of them.
28:57So the other couple of them are still
29:00quite simple. That's the bounce.
29:04I'm going to explain them at the same
29:05time by the way.
29:06>> Okay.
29:06>> And rejection because they are opposite.
29:09>> Oh, I got you. Mhm.
29:11>> Or maybe I should like
29:14write them in opposite way. bounce at
29:16the bottom.
29:18>> I got
29:19>> and rejection.
29:25So imagine this is the
29:27premarket. This is the market open. This
29:30is the hour axis and price is kind of
29:33making this type of move. We have the
29:36level right there.
29:38We have the level, let's say right
29:40there.
29:42And what's important for me is to
29:44identify on the pre-market where the
29:47price is closer to to which level. And
29:50let's say I'm looking for like calls the
29:53trend is up. Then I'm going to be
29:56looking at this trend either for the
29:58breaking retest of this one level on the
30:01upper side. But on the pre-market, I see
30:03that the price is closer to this one
30:04level.
30:05>> Mhm. So that means that I'm going to be
30:07looking for the price to retrace, come
30:09back to this one level and provide me
30:12with some entry. So for that I'm going
30:14to be using just bouncing setup and I
30:17need usually optimal is two three
30:20candles. Same way the wick below the
30:23level but the bodies are keeping it
30:25above the level or it might be even like
30:29some struggling candle and then couple
30:31candles after that having bodies above
30:34the level and the c the weeks below the
30:37level. This is the type of setup that is
30:40quite good for me. I can be looking for
30:42the lowest part of that to keep it as my
30:45stop loss. But I always have to check if
30:48the distance between my entry potential
30:50entry to my to my stop loss is it big or
30:54small because I want to keep my stop
30:56loss as small as possible. Sometimes
30:59tight stop loss is kind of ruining
31:02ruining some of my trades but that's of
31:04course the way that I have to
31:06>> have to take. I cannot be winning them
31:09all because sometimes it might be just
31:11triggering it and then reversing back up
31:14and that happened many many times to me.
31:18So
31:19for the bouncing setup the optimal way
31:23is to wait for two maybe three candles
31:27um preferably on the 5m minute time
31:29frame that are having the bodies above
31:32the level but the wicks are trying to go
31:35below the level. So it means that the
31:37price is quickly buying out below the
31:39level and at some point at some point
31:42logically
31:43it's the sellers that are trying to push
31:46the price down but buyers are just
31:48resisting and keeping the price above
31:50the level. At some point let's say the
31:53arrow the the size of the arrow is the
31:57intensity of the sellers that are
31:59getting weaker weaker and weaker. At
32:02some point sellers are going to be
32:04exhausted,
32:05>> but the buyers they're still sitting at
32:07the level and at some point no sellers
32:10only buyers and price can start to push
32:14to the upside. So that's the that's the
32:17point that's the goal of the setup for
32:20the bouncing setup. And yeah, the goal
32:24is to get entry as close as possible to
32:26the level and keep your stop loss tight.
32:29And usually with each five pin candle I
32:32try to I try to if they're trending I
32:35try to shift stop loss from this area to
32:37let's say this area let's say when this
32:40candle is opening. So at least have like
32:43this distance for wiggle if there's
32:46going to be some small pullback and then
32:48continuation.
32:50So that's basically how it is with the
32:52bouncing setup. And now I'm going to
32:55explain the rejection setup. Would you
32:58look to hold this even if you're going
32:59for 2 R, would you still look to hold
33:02this to the next level or you still
33:03follow the same rules of cutting at 2 R?
33:06Yeah, actually um sometimes I might be
33:09having my levels quite close to my entry
33:12and that might be kind of overlapping
33:14with my two multiple which is great and
33:17and also cautious because at level it
33:19the levels might be the points of the
33:21reversal but here when I have plenty of
33:24the room to the next level that's a good
33:26point actually when I have bigger room
33:28for to the till the next level that's
33:30that's better for the setup that means
33:33I'm quite far from the pivoting
33:36And I might be having the level here
33:39where price can pivot or here when when
33:43price can pivot. So it's better for me
33:45to risk this much this much of with the
33:48of the capital to potentially get this
33:51much of the movement at least with the
33:53with the runners.
33:54>> Yeah.
33:54>> Rather than having like level right
33:56there and then
33:57>> potentially having like this move
34:00risking this move. I mean which is still
34:02good but
34:03>> sometimes you prefer like bigger. Yeah,
34:05bigger bigger potential, bigger reward,
34:07bigger chances. That's my stance on it.
34:11Same pre-market line, the market opening
34:13line. Let's say we still have the level
34:17and price opening quite close to the to
34:20the upper side. The price is coming here
34:22on the pre-market opening.
34:25And if I'm looking for the puts, by the
34:28way, bounce is for the calls,
34:32rejection is for the puts.
34:35So if we are in the downtrend let's say
34:38on the hourly the picture is looking
34:41like this here potentially price can
34:44make the lower high at the level and
34:47that is the place where I look for the
34:50price to get to the level get rejected
34:52and create another leg for the lower
34:56low.
34:56>> So overall might be bearish.
34:58>> Yeah overall
34:59>> but then this is what it would look like
35:01on the lower time frames up here. So you
35:02want that lower high essentially to be
35:04this level.
35:05>> Yeah. Yeah. That that's exactly what I
35:07want because on the trend it doesn't
35:09matter if that if that's the
35:11>> uptrend or that's the lower downtrend.
35:15>> You want to primarily look for this move
35:19the biggest move in the trend.
35:21>> Biggest move on the on the uptrend is
35:23basically going for longs. I mean there
35:25are still going short at some point but
35:29that's risky.
35:30>> Risky. Yeah. Do you have like a rule
35:32because you have both setups where you
35:34can bounce or rejection and you have the
35:36break and retest like do you have a rule
35:38of how many trades you can take in a day
35:40regardless of wins or losses. So usually
35:43I try to take maybe two three trades and
35:48four and above considered to be overt
35:50trading for me nowadays. But I remember
35:53like in 2020 three I've been trading
35:56like eight nine trades in a day and
35:58still been fine.
35:59>> But the market was different. It was I
36:02think easier than now. Certainly easier
36:04than now. So yeah and also I've been
36:07reducing the number of trades to focus
36:08more on the higher quality trades
36:10>> to not waste my focus my attention my
36:14capital on lower quality trades. So as I
36:18said on the trend it doesn't matter if
36:20that's uptrend downtrend you want to aim
36:22for the bigger move biggest move is this
36:25one this one this one and this one
36:31basically from high to low on the
36:33downtrend and from low to high on the on
36:36the uptrend
36:37>> of course so the rejection setup it
36:40comes to the cases where I'm looking for
36:43the price to bounce off of the previous
36:47low and go to the lower high. Create
36:50some pivoting point which is going to be
36:53close to my levels.
36:56Have this the opposite setup as the
36:58bounce. By the way, you might have the
37:00candles. Oops. You might be having the
37:04candles
37:06with the buddies below the level but the
37:08wigs trying to push it. You might be
37:11having several weeks, several candles
37:14trying to push it but unsuccessfully.
37:16You kind of keep some area the the
37:19highest part as your stop loss. Same way
37:21with the with the bounce where you keep
37:24the lowest point as a stop loss and you
37:26try to look for the exhaustion of the
37:28buyers at this point. the
37:33the intensity of the buyers is the size
37:35of the arrow would say here buyers are
37:38pushing then they're trying to push
37:41again trying to push again and at some
37:43point they're not even pushing at that
37:47point sellers are sitting strong at the
37:50level and they start to take action so
37:53at that point price may start to form
37:57bearish candles and move to the downside
38:00and in this case I might be I might be
38:03still trimming big part of my position
38:05at two or multiple.
38:08The entry part is very important because
38:11if you have let's say bad entry let's
38:13say at this area not close to the level
38:17it means that it's harder for you to get
38:19to your two multiple.
38:23The better your entry is the easier it
38:25is for you to hold till your two
38:28multiple. So let's say here's going to
38:30be your tour multiple but with perfect
38:33entry let's say let's say here's your
38:35stop loss here's your entry even here is
38:38your tour multiples
38:41so that's the importance of the of the
38:43entry and I'm trying to go for good
38:45entry or no entry when when it comes to
38:48the
38:48>> okay one or the other
38:50>> mhm
38:50>> yeah and still if I see big space big
38:55area till the next
38:57big distance till the next level I might
39:00try to keep maybe maybe 10% of the
39:05position as a runners that to see
39:07whether they can or not reach the next
39:09level
39:10>> but I know myself usually I don't have
39:13enough patience with that and if that is
39:16that that is taking more than an hour I
39:17might be just closing it prematurely
39:19with with any with no signs of the
39:21reversal with no signs of the like no
39:23reason for closing just by physically
39:26getting exhausted by holding the trade
39:28What does that do for you though? Do you
39:29think it serves you better to be able to
39:32sort of remove that risk, remove that
39:34emotional turmoil and the thoughts that
39:36come with it so that you can stay on on
39:38process for the next day? Because do you
39:40feel like if you were to hold it longer,
39:43it would probably have a psychological
39:45impact that could negative impact your
39:47results?
39:47>> Mhm. So from the from the drawbacks, you
39:52can have some like immense move to the
39:55downside. Let's say some let's some some
39:58people say like like once in a year like
40:00spike dropping and you're missing that
40:02move. Even the smallest 10% of your
40:05position could have generated you more
40:08profit than the other 90%. And sometimes
40:10you feel that FOMO
40:12>> when you're missing that.
40:14>> But I'm trying to balance between having
40:16the FOMO and just having just calming
40:19myself down with the disciplined
40:20approach because okay I did two or
40:23multiple on that. Anything above 2 R
40:26multiple is exceptional for me.
40:28>> So 2 R is kind of a standard and if I'm
40:31making like let's say 1.5 R still I'm
40:34okay.
40:35>> I did what I wanted and everything
40:37excessive I didn't catch. Okay, I'm
40:39going to try next time. And primarily
40:43that was not the reason at the beginning
40:46because where I live uh market usually
40:49opened at either 6:30 p.m. or 7:30 p.m.
40:53And waiting for longer it meant for me
40:56was just just wasting all evening for
40:58for the trading. So that might be just
41:01the rule that developed primarily from
41:04the time inconvenience and then develop
41:06into some discipline rule.
41:08>> Got you. I love that. So where should we
41:10go from here? as we go on the chart
41:11examples.
41:13>> Yeah, I think uh basically we're done
41:15with the with the setups. Basically
41:18three primary ones and there is still
41:21one that is like a minute of the
41:24explanation that's just a trend
41:27continuation. I mean kind of a gets
41:31involved in all of the all of these
41:33setups because when the pro when the
41:35price is going uptrend the trend
41:38continuation for me it means trading it
41:40from low to high and it can occur on
41:44like 2 minute 5 minute hourly time frame
41:47daily time frame at any time frame it's
41:49just the circumstances like that you're
41:52taking trade on but still inside on the
41:54lower time frames you have to look for
41:56candles how they are going to set up. So
41:59yeah, basically I would say just
42:02breaking retest, bounce and rejection
42:04are my five I mean three setups that I
42:08go with.
42:08>> Perfect. Okay, so let's get the laptop
42:11out and we'll do the chart breakdowns
42:13and then we're going to trade live. I've
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43:31Let's get back to the episode. So, now
43:33that we've gone through the whiteboard
43:34and shown exactly the setup and strategy
43:37that we're looking at, we're now going
43:39to look at some trades taken from last
43:41week, um, you know, step by step and
43:43show you the exact process. And then
43:45don't forget we're going to trade live
43:46when the market opens straight after
43:48that as well.
43:50>> All right, thank you. So I want to go
43:53first with the trade that I've been
43:55taking on the Monday, February 2. That
43:57was Tesla trade. Tesla 420 calls
44:01um here on the on the chart. You guys
44:04can see the entry
44:07at this area and closing it at this
44:10area. So one thing that I want to
44:13highlight is first thing first was the
44:16trade in the plan and the answer is no
44:21it was actually in the put section
44:24because I've been having the rejection
44:26of 424 level on the Tesla but then
44:29suddenly after the rejection that never
44:32happened here price was approaching the
44:35level but just never had the touch of
44:37the level then we moved down to the
44:40level that was having key significance
44:43and I've been seeing other two times
44:46when the price got pushed very nicely
44:49from that level and when price got sold
44:52to that level even though this trade was
44:55not in my plan I took risk going for
44:59less position size and took some calls
45:01off of the level on the on the on the on
45:03the Tesla.
45:05So, here how it went.
45:08That was the chart on the two-minut time
45:10frame.
45:14Here is the option chart on the
45:16two-minut time frame.
45:20So, here you guys can see I've been
45:22having this type of entry, not perfect,
45:24not at the bottom, and this type of
45:27exit. I've been not achieving but just
45:29exiting the position because it was not
45:32in the plan and I've been scared that
45:33the price might still continue to go
45:36down and drop. So I didn't just hold
45:40didn't have enough patience because of
45:41that to hold to maybe this area. So just
45:45made some journal out of it. I've been
45:47risking 2400 in that trade. I've been
45:51initially targeting 4,800 to make on
45:54that trade. So you guys can see I've
45:55been making slightly slightly higher
45:58than two or multiple which is 5K on that
46:00trade. I'm marking it as three stars
46:03because I've been having mistakes.
46:05Mistake number one is a bad entry. The
46:08entry was bad because that was not quite
46:11close to the level at that moment. I've
46:14been having the level at I think this
46:16area and the entry could have been
46:18better right on the level. So the
46:21mistake number two is obviously the
46:23biggest mistake not in the plan because
46:25on the pre-market plan I've been having
46:28Tesla for the puts for the rejection of
46:31this one level. So quickly shifting my
46:34focus from puts to calls that's rarely
46:37happening but when I see high
46:39significance high relevance of the level
46:41that is about to be having some reaction
46:44to the price which is this one having
46:47good push good push and it made even the
46:50small push rewarded me with two or
46:52multiple so that was quite enough for me
46:55to even with smaller position size to go
46:57for it and that was actually my new
46:59experience with the zerod Monday Tesla
47:02options because nowadays Max 7 they have
47:06expiration three times a week
47:09>> and obviously early exit I didn't have
47:11enough enough balls to to hold it to to
47:15this area.
47:16>> Yeah.
47:16>> But even though I had like two or
47:18multiple I could have left some runners
47:20to see how much they can push to the
47:23upside and it doesn't matter if the
47:25price then reversed to the to the
47:28downside to the stop loss. always I have
47:31to have to leave at least some small
47:34portion of the position as runners to
47:36not suffocate the position but just let
47:38it run. So that's example number one
47:42from Monday. The next example that I
47:44want to go through is spy on Thursday,
47:48February 5.
47:50This one is quite interesting. And that
47:53day I've been actually looking
47:58for calls on the spy. So this is the way
48:01how sometimes my perspective can change
48:03from calls to puts or from puts to calls
48:05here. Initially I've been looking for
48:07the calls off of the level.
48:08>> But when market is not providing me with
48:11some entry because I didn't get enough
48:14of a retest. I wanted to retest exactly
48:16off the level to take my entry. And when
48:20it was a missed opportunity, I decided
48:22to just wait and look how price can
48:26react to the next level. And this is one
48:30of those few times when I combining my
48:32trading strategy with the bookmap.
48:35>> Yeah.
48:36>> So on the bookmap,
48:38I saw this thick layer of the sellers.
48:41On the book, by the way, I have some
48:42specific configuration have only yellow
48:44color for the big levels. So sellers
48:47been sitting at this area and on the ES
48:51and on the spy that coincided over
48:54overlapped with this one level on my
48:57chart and at this moment I did not wait
49:00for the candles to set up at this area
49:03and I've been just looking for the entry
49:05off of that level. So when price touched
49:08the level on its way down, I've been
49:11going into the position I think at this
49:13area
49:15because here on the book map I see okay,
49:18we've been just struggling at this area
49:21after some nice push and then price had
49:24some green bubble at this red thick
49:27layer of the sellers but the wall was
49:29not broken. Price didn't see any
49:31continuation to the upside. So price
49:34been struggling for a couple seconds and
49:35then just quickly got sold out. So that
49:39was my conviction to go for the puts in
49:41that trade. The most important rule for
49:44me is just to use the levels and if I
49:46use the level then I can forgive myself
49:49not going with the planned pre-planned
49:51trades. So even with this trade on the
49:55execution part you guys can see how much
49:59did I miss. So entry quite close to the
50:03bottom right there at 240 exited at 295
50:07around that couple exits and then
50:11price started just to just ramp up just
50:15it went to six then even 6.7.
50:20So, I missed a lot on that trade, but
50:23I'm okay not feeling any for just
50:25because it was not in my pre-market
50:27watch list. Otherwise, I would have had
50:28like let's say bigger for more because
50:31of that missed opportunity because on
50:34the chart the there was okay on the
50:39say the option chart.
50:41>> Okay, on the chart there was nothing
50:43nothing that was telling me about the
50:46weakness of the move. So price rejected
50:49been moving down and not even single
50:52pullback before moving down to this area
50:55and I actually saw that on the bookmap
50:59here it's not visible because it's below
51:02the the area but we had some support at
51:06I think 6830
51:08on the book of that area. So from that
51:11thick layer it moved down to another
51:13thick layer of the buyers. So from one
51:16wall to another wall. So I could have
51:18had maybe maybe more patience with that
51:21trade. But just considering the fact
51:24that it was already more than two or
51:26multiple on that trade and also it was
51:28not in my pre-market plan.
51:29>> Yeah,
51:29>> I'm completely fine
51:32>> not catching all the move. So these are
51:37the three mistakes. The setup is
51:39obviously the rejection of the level and
51:41yeah the strategy
51:44here I've been having like only seven
51:46out of 11 ticks because I've been
51:49waiting for the first five minute candle
51:50I mean using the level that's the most
51:52important thing using the patterns and I
51:55did not use any relative strengths or
51:57weakness because that's uh for the
51:59stocks other than Kik and spy relative
52:02to the indices.
52:03>> Okay. Yeah,
52:04>> my stop loss I think it was tight quite
52:07tight close to that. So consistent
52:09position size size was small just to
52:12mitigate the risks involved with
52:14something that's not in your pre-market
52:17plan but that was not planned. So that's
52:19something that I cannot avoid. Uh I use
52:24the book map. That's one of those rare
52:26cases when I use the bookmap and I tick
52:28this this box on the trade. I've been
52:31trimming at tour and I did not wait for
52:33the reversal. There was no reversals
52:36just straight to the downside move. So
52:39this unticked cost me maybe some
52:42additional couple thousand of the
52:44profits at least.
52:45>> Mhm.
52:46>> Yeah. So that's one other mistake, one
52:48other profitable trade that I made the
52:52last week and another one trade on the
52:56Kik that I've been using the bookmap
52:58actually also. So here
53:02you guys can see um on the one minute
53:05chart it's two minute chart it's not
53:07quite visible without the levels on my
53:09chart. So here I will try to expand it
53:14to make it more visible.
53:17However I'm hoping it's okay. So
53:20initially initially on my pre-market
53:22plan what was there? Let me expand this
53:25one as well. on the Kikq the bounce of
53:28the level 607.
53:32So again as the price moved up at the
53:36market open on the Kikq it didn't
53:39provide me any entry
53:41>> so just straight pushing to the upside
53:43but then I've been just waiting for the
53:46level to hit actually before that before
53:48that I've been trying to I've been
53:51trying to catch the reversal of this one
53:53level because I thought that okay price
53:56might make this type of breaking retest
53:58that I can take which is aligning with
54:00the direction overall. with of my trade
54:02on the plan. But that trade was actually
54:05unsuccessful. That was on that day minus
54:096.3K on that trade on the first attempt.
54:12But then after closing it with a
54:14stop-loss, I waited for the exactly
54:17pre-market planned level 600 which is
54:20which is this bottom level. Mhm.
54:22>> And again on the on the book map I saw
54:26that these are the buyers that are kind
54:30of protecting this area. It's a thick
54:32layer because other than that most of
54:34the space is just black and blue or is
54:38no orders. So I used that as my
54:41navigation. I I use bookmap as just a
54:44confirmation tool not not as a core
54:45strategy. The core strategy was
54:47remaining the same same plan. So
54:51basically from that bounce I've been
54:54taking it to the next level because I
54:58didn't think that the price might make
55:00another move up to the upside. So I've
55:02been quite conservative making this
55:04small move from level to level and then
55:06just taking profits and closing it. But
55:08if you just take a look,
55:11you see when I already closed the trade,
55:13price went down to the level again,
55:16bounced again, which is this area on the
55:19book map. And on the
55:24on the chart,
55:26price actually moved way higher.
55:30So this is the moment where I have to
55:32put the mistake of the early exit.
55:36>> Mhm.
55:37early exit because I didn't quite wait
55:40for the price to move. Maybe I should
55:43have even considered some re-entry into
55:45that trade. But okay, when the trade is
55:48done, that's none of my business. But
55:51okay, on that trade 150 contracts, the
55:54stop loss was at 195, the entry price is
55:58220, and the target was 2.8, and I made
56:032.87 87R which is beyond great for me.
56:07Everything above the two R multiple is
56:09beyond exception for me. So I'm very
56:11glad even though I felt some formal
56:14missing some money on the table but
56:17still great. I'm glad that always the
56:20analysis is right. Even when I'm missing
56:22the trade and it's not giving me the
56:24opportunity to go in and but I just see
56:26the the analysis being right. I it just
56:30makes me
56:32makes me kind of feel better when having
56:35like bad feeling because of the FOMO,
56:37not some missing. That makes me feel
56:40better for for sure.
56:43>> Yeah,
56:45I think we're done with those three
56:48trades and I might be going through some
56:52couple of other trades that might be for
56:55example the Tesla right there.
56:59So this is one of those moments when
57:01I've been just putting a lot of effort
57:03into the journaling because I have the
57:05preparation phase have the execution
57:08phase of how I feel how I am act acting
57:11during the trade and then the journaling
57:13part which is the most important part.
57:16So basically as I remember here this was
57:19the picture before market before the
57:23trade I think. So I have seen the
57:25downtrend.
57:26>> Mhm.
57:26>> And even though we've been having this
57:28type of gap up, we still kind of
57:30maintain the downtrend because as long
57:32as the the next high is going to be
57:35lower than the previous this one, we are
57:38still maintaining the downtrend. Maybe
57:40with some equal highs.
57:42>> Yeah.
57:43>> But still maintaining the downtrend. So
57:45that was one of the main arguments.
57:48And then at on that day, Tesla was the
57:51only name for the puts. Everything else
57:53was the for the for the calls
57:54>> interest.
57:56>> So
57:58that was the 5m minute time frame. We've
58:01seen the price rejecting this area and
58:03on the 5m minute time frame we've been
58:05rejecting it again. So
58:09initially on the pre-market plan I've
58:10been looking for the rejection of this
58:12lower level actually but price kind of
58:15opened not here but here. So it moved up
58:18and I started to look for the rejection
58:21of this one level, the higher level. So
58:23that's slight change to my pre-market
58:26plan, but still aligned with the overall
58:28direction.
58:29>> So here was actually the execution of
58:32the trade. Price was going down, making
58:35some retest even though we didn't touch
58:38the level. I was just going in and we
58:41caught the move down on that trade. And
58:45here is the trade breakdown. that I'm
58:47going to be even going for the replay.
58:51That's nice that we can have the replay
58:53on the on the Tradzilla.
58:55>> Mhm.
58:57>> So, just to be fast, I might be using
58:59just a one minute intervals.
59:02Okay, let's
59:10Okay, so here was the entries when price
59:13was going down. Let's pull up the two
59:16minute time frame on the way down. Some
59:19trim.
59:20>> Mhm.
59:20>> And price is moving even lower. Another
59:23trim.
59:24>> Oh, nice.
59:24>> Another trim. Trim trim trim. And out of
59:27the position. So, it might be just not
59:30quite visible because of the one minute
59:32uh interval of the of the of the shift
59:35on the replay. But basically, that's how
59:37it went. And another one that I would
59:41like to share is
59:43probably this one.
59:46So this is the Microsoft 52% win on this
59:51trend continuation and bouncing setup.
59:54So
59:56again,
59:58okay, again
1:00:00this was the trade breakdown, but it
1:00:04gives a little to less information. So
1:00:07here on the hourly, we've been seeing
1:00:09the the uptrend.
1:00:11>> Mhm.
1:00:11>> If I say uptrend, why do I need it? I
1:00:13need it just to see the direction that
1:00:16I'm going to be trading the calls. So
1:00:18Microsoft was in my pre-market. So let's
1:00:22just look at the replay of this thing.
1:00:35Okay.
1:00:45Okay. After getting some entry,
1:00:47we're pushing adding up to the position
1:00:51before the move. We have couple of the
1:00:54trims. Price is moving. Another trim.
1:00:57Another trim. And by that moment, I have
1:00:59already shifted my stop loss from this
1:01:02area already for maybe to this area.
1:01:06That's how important it is to scale out
1:01:07and just to keep the the last contracts
1:01:12disciplined. And yeah, I think I shifted
1:01:15my stop loss too much because here it
1:01:17already triggered the last contracts
1:01:19with the stop loss.
1:01:21>> So
1:01:22>> at this point, you'd already made over
1:01:23$35,000 on this trade, right?
1:01:25>> Yeah.
1:01:27I mean, when I'm in a trade, I just
1:01:29remove the pin bar on the on on the t so
1:01:33that I can
1:01:34>> before we didn't hide it and it was kind
1:01:36of like the fluctuations you would
1:01:38>> I think I almost from the beginning I
1:01:42started like uh I noticed that I'm quite
1:01:45distracted by you know I see that okay
1:01:48the numbers are moving
1:01:49>> it's quite disappointing when you see
1:01:52it's moving from green to red color.
1:01:54>> Yeah. And yeah, just to focus more on
1:01:56the chart because you have to speak with
1:01:58the chart and just reflect on how chart
1:02:02is behaving. And sometimes
1:02:05the P&L can dictate you like okay take
1:02:07profit here or like like close the
1:02:10position in loss here before it reaches
1:02:12the stop loss. But in reality you have
1:02:13to wait for the TP or the stop loss to
1:02:16hit.
1:02:17>> Be patient. So that's just just it. And
1:02:21maybe the last one
1:02:23of the of the replay that I would like
1:02:26to share is you can pick any one.
1:02:29>> I don't mind. Whichever you think.
1:02:31>> Okay. Maybe maybe maybe this one.
1:02:35All right. So, I saw the downtrend on
1:02:39the Tesla. This is the regular trading
1:02:41hours because I don't use any extended
1:02:44hours. So market pushing market pushing
1:02:48to the downside and this is the opening
1:02:52candle of that day.
1:02:53>> So lower high is quite close to that
1:02:55area but we still respected that. So at
1:02:58that point we moved to the downside.
1:03:02>> I think here my plan slightly differed
1:03:05from the from the plan here on the
1:03:08pre-market plan. The most important
1:03:10thing is just to review the pre-market
1:03:11plan whether I had it planned or not. So
1:03:14the only name again for the Tesla for
1:03:17the puts
1:03:20and here was the execution actually I've
1:03:24been initially initially planning
1:03:27on the higher level this one level.
1:03:30>> Mhm.
1:03:30>> But as price did not give me any
1:03:32opportunity I saw the hard break to the
1:03:35downside and I stopped looking at the
1:03:38five minute and on two minute time frame
1:03:40I saw this break and retest.
1:03:43Good break. Let me use another color.
1:03:46So, good break, good retest, close to
1:03:49the level. And even those two small, not
1:03:53small, just two two-minute candles, they
1:03:55provided me with some good profits
1:03:58>> because of the position sizing, good
1:04:00entry and good exits.
1:04:02>> Yeah, cuz so close to the level on that
1:04:03one, right?
1:04:04>> Yeah.
1:04:04>> So, would the stop loss on that one be
1:04:06just above the candle to the left?
1:04:09Yeah, I think I think it was somewhere
1:04:11like like like here.
1:04:12>> Yeah, those bigger. Yeah,
1:04:14>> having like smaller risk right there and
1:04:16having like here is like even visually
1:04:19more than two or multip let's say even
1:04:21three are let's say visually.
1:04:24>> So that's basically how usually I do the
1:04:28review do the breakdown and even for
1:04:30this one I have the replay. I think
1:04:32that's going to be the last replay
1:04:36for the Tesla. Even for that like two
1:04:39two minute candles 14k of the profits
1:04:41which is impressive in my opinion but
1:04:44still price is quite nicely respecting
1:04:46the levels and for the rest of the move
1:04:50I didn't get any entry so
1:04:53you have to balance between the foromo
1:04:55and like being humble and being grateful
1:04:59>> I can imagine
1:05:03>> it's like that that constant you could
1:05:05always have more could always have more
1:05:06but Yeah,
1:05:07>> in reality, you know, the trades that
1:05:09we've seen are more than enough.
1:05:11>> Yeah. So, here basically
1:05:15just been waiting patiently for the
1:05:17entry. Let me even like slow it down a
1:05:20little bit.
1:05:26So,
1:05:29it kind of missed the point.
1:05:31So basically just on the retest we've
1:05:34been getting the entry
1:05:36>> and price starting to go down
1:05:39>> on the way down we're getting some trims
1:05:44from trim another trim and then of
1:05:46course shifted the stop loss shifting
1:05:48the stop loss and then stop loss is I
1:05:52think hitting
1:05:54yep yep so here stop loss already
1:05:57hitting below the entry point so still
1:06:00in profit. Yeah,
1:06:03>> basically that's how it is. That's how I
1:06:06operate. That's how trades trades.
1:06:09>> I love that. No, thank you. And then now
1:06:11we're going to go into live trading just
1:06:13ahead of the market open. Perfect
1:06:15timing. So make sure you see exactly
1:06:17what's going to happen live. So guys,
1:06:19now that we've gone over the whiteboard
1:06:21section of what we look for and why,
1:06:23then we went through some actual chart
1:06:24examples. Now we're going to trade the
1:06:26markets live. We are just over 20
1:06:29minutes from market open. So, we're
1:06:32actually going to go through the whole
1:06:33process of the market prep to then
1:06:36trading the open to then even uh
1:06:39postmarket what we look to do,
1:06:41journaling, etc. So, we're going through
1:06:43a full trading cycle if you will today.
1:06:47Uh thanks to Gala being here and you're
1:06:49willing to do so.
1:06:50>> All right. So, first thing first, that's
1:06:54my choice. Usually I look for my charts
1:06:57on the wibble. So as I said the first
1:07:01thing is to first thing is identify the
1:07:04trend and the levels. I'm going to start
1:07:06with the levels.
1:07:08If I see some candles piercing through
1:07:11the level that means that the level is
1:07:13invalidated for me. So I'm going to be
1:07:14just deleting those levels
1:07:17this level as well.
1:07:19And I'm going to mark a new levels. So
1:07:23usually I'm going to look for the places
1:07:25where the price kind of pivoted and if
1:07:29that's the opening price for that day
1:07:31for example this one I'm going to mark
1:07:33it that different color the opening
1:07:35price color. So here I see that the
1:07:39price kind of perfectly rejected this
1:07:41one level like scent to send by the way
1:07:43and what I'm going to do here is I'm
1:07:45going to look for the color change on
1:07:47the hourly time frame. So that is
1:07:50another small pivoting point. But this
1:07:52higher level is more important for me.
1:07:55So that's it. AMD that's ready. I'm
1:07:59going to be going for levels only right
1:08:01now and then we'll be looking for the
1:08:03trend and then doing the premarket.
1:08:06All right. Uh the chart sometimes has
1:08:09some bugs when the levels are getting
1:08:12displaced on the wibble. I'm trying to
1:08:14fight it with the with the support, but
1:08:18they're not doing nothing. So, I'm going
1:08:20to delete all the all the levels and
1:08:22just start from the scratch. So,
1:08:25pivoting point here,
1:08:27locking it. Pivoting point here
1:08:31and pivoting point here as well.
1:08:34So, the chart is for me ready. Couple
1:08:38levels above, couple levels below the
1:08:39level. That's fine for me. AMD ready.
1:08:43Amazon. It's a pretty wild
1:08:47chart. I would say
1:08:49many levels got invalidated, even this
1:08:52one. But I'm going to be marking just a
1:08:55few
1:08:58pivoting points. I think this level is
1:09:00enough for me.
1:09:03And I think this one as well.
1:09:06So the level is ready.
1:09:09Going to go for the next one. And I'm
1:09:11having only like 10 names I think
1:09:13pre-market watch list nothing else.
1:09:15>> I don't trade any other
1:09:17>> names usually.
1:09:19>> So here is the opening price level for
1:09:22that day
1:09:24on Friday marking it.
1:09:27Oh yeah, by the way when the levels are
1:09:30getting pierced through for some time
1:09:33they still have the relevance and I can
1:09:35keep them as a dashed line and dash line
1:09:39means that the level is invalidated but
1:09:41still has some relevance. So basically I
1:09:43can put the level on every color change
1:09:46but I'm going to focus more on the major
1:09:48ones. For example here I can put this
1:09:51one level and then delete the
1:09:52invalidated one because they're are
1:09:53quite close enough. I can actually put
1:09:56even the level right there.
1:10:01Put a color change some kind of a p
1:10:04pivot pivoting point on the Google.
1:10:08And going for the next one, the
1:10:10Microsoft quickly deleting the levels
1:10:17for the next charts. I might be a little
1:10:19bit speeding up.
1:10:21>> That's okay.
1:10:22>> Just to be ready for the market open.
1:10:28>> So, if you have 10 things on your watch
1:10:29list, how how do you go about
1:10:31deciphering which opportunities you will
1:10:33take?
1:10:34>> Just the chart. If if the chart is
1:10:36looking good, I I'm going to go for it.
1:10:38If the chart is looking weird and I
1:10:40don't know whether it's the trending or
1:10:42choppy, then if I don't know, just skip
1:10:45it.
1:10:47>> All right. So, for example, this one
1:10:49chart on Nvidia with this big wig on
1:10:52this candle. I'm not sure if that's the
1:10:54dark pole orders being getting printed
1:10:56or some some kind of bug, but I don't I
1:11:01don't like it. So, I might skip the
1:11:03Nvidia. The next one is the Palanteer.
1:11:09I'm going to mark up levels.
1:11:17Ready? Now the important ones. The Kiki,
1:11:19the spy.
1:11:36Okay, here is the opening price for the
1:11:39Friday
1:11:42ready
1:11:44levels on the spy.
1:11:59So one more thing is like why do I
1:12:01differentiate the levels by the colors
1:12:03is it comes from the level of confidence
1:12:06that I have in them. If that's the solid
1:12:09like purple levels, the regular ones,
1:12:12I'm having let's say five out of five
1:12:14confidence with them. But if that's the
1:12:17blue level, the opening price level,
1:12:20that's only like a three out of five
1:12:22confidence for me. Same goes for the
1:12:24invalidated ones, that's like let's say
1:12:272.5
1:12:28out of five confidence that I have in
1:12:30those levels.
1:12:32>> And why do I need it? Why do I need that
1:12:34scale for the confidence? It just goes
1:12:36for the position sizing that I'm going
1:12:38to be using reflected on the confidence
1:12:40that I have in the in the in the level.
1:12:45All right. So, I think the levels are
1:12:46quite ready. Now, it comes to the part
1:12:51of doing the analysis.
1:12:57So, I'm starting from the from the
1:12:58Tesla. That's the the bottom one
1:13:02on the list
1:13:04here. I just see the clear uptrend have
1:13:07the lows getting higher
1:13:13and potentially price is making the plus
1:13:17half% on the pre-market almost close to
1:13:20this one level above
1:13:24my take point on the extended hours. By
1:13:26the way, if you I think you kind of
1:13:29notice that I'm not using any extended
1:13:31hours. I'm using only the market hours
1:13:33to mark all the levels and the trends.
1:13:36The extended hours everything I take as
1:13:40let's say one candle as one candle. So
1:13:43if the price is let's say at here it
1:13:45means that for me from the moment market
1:13:48closed to the m to the moment market is
1:13:50going to be opened it's going to be just
1:13:53similar to having this type of green
1:13:54candle for me.
1:13:56>> Yeah. which is kind of a forming here
1:13:58the higher low right there and price
1:14:01after having several several rejections
1:14:05from that level we might today have the
1:14:07opening quite close to the level we
1:14:10might see the break retest
1:14:13holding confirmation and then calls so
1:14:16that's actually the first one and the
1:14:18for now best case that I see I'm going
1:14:21to write it down right there so the
1:14:23Tesla
1:14:26um break in retest of the level 420
1:14:32dot.
1:14:34How much was it? 68.
1:14:38Okay. So, one name is in my pre-market
1:14:40watch list already.
1:14:42The next is going to be the spy.
1:14:46Same uptrend.
1:14:48By looking at the extended hours, I see
1:14:51that the price is
1:14:54price actually can make similar move to
1:14:56the Tesla.
1:14:58Price is making just small move like
1:15:00like this. If price is going to push to
1:15:03this one level, it means that the price
1:15:05is going to create the higher low right
1:15:08there. And then from that point breaking
1:15:10at this one level that got rejected
1:15:12twice, we might see another break and
1:15:14retest of this one level. and we might
1:15:17even target the next level or maybe it
1:15:20can push to the new alltime highs today.
1:15:22So that's the second name in the
1:15:25pre-market watch list. I'm trying not to
1:15:29have too many names on my pre-market
1:15:31watch list. We still have 15 minutes
1:15:34before the market opens.
1:15:35>> Mhm.
1:15:36>> Kikqi, they usually have quite similar
1:15:40pre-market plans for me here. Price is
1:15:43kind of consolidating on the post
1:15:45market, pre-market. We might be having
1:15:48similar plan for the KikQ. Same price
1:15:51breaking it, retesting and going for the
1:15:54calls. So 616.25 is the level of my
1:15:58interest. Right now comes the fun part,
1:16:01the skipping part.
1:16:04So the Palier
1:16:07Oh, Paler already breaking it actually
1:16:09on the pre-market, post market. So price
1:16:12is already making this type of move.
1:16:15>> It means that we are on the uptrend. We
1:16:17are continuing and it means that I might
1:16:20be looking for the bounce
1:16:23for the price to be bounced off of the
1:16:25level 144 83 here. And as I said, I
1:16:32might be looking for maybe two, threeman
1:16:36candles that are bouncing and staying
1:16:38above the level, which is going to be
1:16:40great for me.
1:16:42Okay, this one is looking good. Nvidia,
1:16:46the chart is just looking odd. I just
1:16:48don't like it. Even the even if the
1:16:50level is quite close to the level, I
1:16:52just don't like how the chart is
1:16:54looking. Yeah. And I'm going to just
1:16:56skip it. If I don't like it, just
1:16:58skipping it.
1:17:00Okay, here is the Microsoft.
1:17:04Uh, one thing that I don't like about
1:17:06the Microsoft is the price is already
1:17:08approaching the level. I would have been
1:17:10looking for the same setup as the
1:17:12palenteer for the bounce of this 414 and
1:17:15target the the next level. But here the
1:17:17price on the pre-market, let's say
1:17:19making already too much of the move
1:17:21going to the area where the price got
1:17:23rejected like numerous times like four
1:17:26hourly candles.
1:17:28So, I would say this can be a good setup
1:17:32for the another breaking read, but the
1:17:34way that the price made already this
1:17:37much of the move on the pre-market
1:17:39kind of makes me worry about it. So, I
1:17:42think that's
1:17:43>> that's just my opinion. I think that's
1:17:46giving like a less odds of the
1:17:48successful trade.
1:17:50So, just don't liking it is enough for
1:17:52me just to skip it. All right. And
1:17:55another one is here the Google the trend
1:17:59is inconsistent.
1:18:01If I don't see the clear uptrend or
1:18:02clear downtrend I can just skip it. And
1:18:04also it's going lower which is weakness
1:18:09because the market KQ spy are going up
1:18:11on the pre-market. This one is going
1:18:13lower. So if I'm not looking for
1:18:15downtrend for the puts then I shouldn't
1:18:17be looking for it. There is no clear
1:18:20downtrend. So just skipping it. the
1:18:23Amazon after bad earnings. There is just
1:18:26just choppiness right there. Even though
1:18:29the price is approaching this one level
1:18:31on the pre-market, I still hate to see
1:18:34this type of big wigs on the previous
1:18:37days. So, I'm going to skip Amazon as
1:18:40well.
1:18:41Here comes the AMD.
1:18:45I'm also trying to be unbiased about all
1:18:47the all the trades because because of
1:18:50the stock position that I have on the
1:18:52AMD on the Nvidia sometimes I like the
1:18:55way that the price is pushing and less
1:19:00like willing to go for the puts
1:19:04but it's okay
1:19:07right here
1:19:09one more interesting chart on the AMD
1:19:12after
1:19:14I wouldn't say bad earnings but just
1:19:16negative reaction to the earnings price
1:19:19got rejected from that level and went
1:19:22down just been bleeding and made its way
1:19:26up again to that level on Friday got
1:19:29rejected from that level again and today
1:19:35making small move toward towards that
1:19:37level so I do like it I do want to see
1:19:40the price breaking
1:19:42the rear that it was unable to break
1:19:44yesterday on on Friday. I mean on on
1:19:47Monday that that that's Monday. Today's
1:19:50Tuesday I forgot. Okay. So I'm going to
1:19:52be including AMD as well. Sometimes when
1:19:55I don't trade, especially here in Dubai,
1:19:58I kind of forget
1:19:59>> the days
1:20:00>> the days of the weeks.
1:20:01>> Don't worry about the exact same.
1:20:04>> And the last name is the Apple. The
1:20:07trend seems to be just shifting to the
1:20:10downtrend.
1:20:11Um, I might need couple of the levels
1:20:13below the price.
1:20:16Say this one.
1:20:18This one. That's quite enough for me.
1:20:22But the chart is just not looking good
1:20:24for me. I would I would have
1:20:28wrote down the Apple for the puts. If
1:20:30price was quite close to the level 271,
1:20:33let's say for the continuation of the
1:20:35downtrend from the high to the low
1:20:38creating the lower high to potentially
1:20:40break this and go for another lower low,
1:20:43let's say, but the price is just looking
1:20:46weird for me.
1:20:46>> Mhm.
1:20:48>> If I'm not confident, then I just skip
1:20:51it. So, yeah, basically my plan is
1:20:54ready. Nothing for the puts, just the
1:20:57five names for the calls. And
1:20:58>> so you do that so then that way when the
1:21:00market does open you're ready. You know
1:21:02the levels you're interested in and what
1:21:04>> setup you're looking for.
1:21:06>> Yeah. Sometimes I even write like which
1:21:08contract I'm looking for because Tesla
1:21:11for the break of 42068.
1:21:14Um where's the Tesla
1:21:18for the break of that level? I'm
1:21:21certainly going to be looking uh for the
1:21:23closest call strike price and that is
1:21:27going to be which one that's going to be
1:21:30422.5 or maybe 425.
1:21:33So nowadays I'm not writing the strike
1:21:36price because sometimes from that point
1:21:39I might be I might be willing to hold
1:21:42for a larger move and go for 425 strike
1:21:46price which is
1:21:47>> placed here
1:21:49>> because with with with the with the
1:21:50strike prices you're getting the most
1:21:52out of the strike price when the price
1:21:54is approaching the strike price. Let's
1:21:58say I'm looking for 422.5
1:22:01which is here somewhere.
1:22:04That's just the Greeks and the options.
1:22:06From here to this area, I'm getting the
1:22:09most out of this um strike price.
1:22:14>> But after that,
1:22:15>> I'm getting the most out of 425
1:22:19strike price because this option is
1:22:21going to get in the money and it's going
1:22:24to just slow down its increase in the
1:22:26price.
1:22:28But that's just some non-critical stuff.
1:22:32Okay, so the premarket plan is ready. I
1:22:35just post it in the discord so that I
1:22:38don't forget where it is. Um here here
1:22:41it is daily posting it and yeah so I'm
1:22:46just going to keep it here so that
1:22:48during the market hours I just come here
1:22:51look at it and remember what is my plan
1:22:56still nine more minutes before the
1:22:58market opened and one thing that I
1:22:59forgot to check is the economic calendar
1:23:02I just simply used the econ.com website
1:23:07for today
1:23:09after the market opened and I don't say
1:23:11anything these numbers are going to be
1:23:14delayed. So nothing within the first
1:23:17hour that I have to worry about.
1:23:20>> Is that good or bad?
1:23:21>> That's good. Yeah,
1:23:22>> because sometimes there can be like
1:23:24consumer sentiment some some core CPI
1:23:27maybe some Fed speaking FOMC some some
1:23:32meeting Jerome Powell which can affect
1:23:35the the way how market is behaving but
1:23:37right now I see that we have nothing for
1:23:40today so these numbers are delayed or
1:23:43either delayed or before the market open
1:23:45so
1:23:46>> we're quite good to go
1:23:49>> no need for the browser now eight more
1:23:52minutes before the market opened.
1:23:54And usually on the
1:23:57white monitor, I look for several
1:24:00charts, but here I think I can reduce it
1:24:02to let's say four.
1:24:05So that's for me usually that's
1:24:08five minute time frame spy on the Kik
1:24:12that's must have.
1:24:15And then that's going to be Tesla, let's
1:24:17say, and the Palenter. And I'm missing
1:24:20only the AMD from my pre-market plan, I
1:24:22think.
1:24:24So, just for the sake of having like
1:24:26better visual, I think I'm going to be
1:24:28looking at the four of them, not five of
1:24:30them.
1:24:31>> Okay.
1:24:32>> Right. So, I'm ready. I'm ready for the
1:24:34market to open. And when the market
1:24:36opens, I'm not rushing into a trade. I
1:24:38I'm usually waiting for the first five
1:24:40candle to close because the first five
1:24:42candle have can bring a lot of
1:24:44volatility, big wigs to the upside, to
1:24:46the downside. And that's where I kind of
1:24:50had some troubles at the beginning of my
1:24:52career and now I just skip it. I used to
1:24:55skip like first 30 minutes of the market
1:24:57at the beginning then 15 minutes then
1:25:00first 10 minutes
1:25:01>> and now just first five minutes that I
1:25:04skip and then make decisions.
1:25:07>> Okay. recently even like been thinking
1:25:09of skipping only maybe two minutes of
1:25:11the market open because let's say I'm
1:25:14looking for this level to break on the
1:25:16Tesla and it might be breaking it or
1:25:19retesting on the two-minut time frame.
1:25:20>> Mhm.
1:25:21>> But still first five minute candle not
1:25:23closing and then price is just going
1:25:26there without providing any entry
1:25:28opportunity which is giving me some FOMO
1:25:30sometimes
1:25:31>> of course.
1:25:32So yeah, hopefully market will re reward
1:25:36us with some opportunities today.
1:25:38>> So there you saw the market prep
1:25:40exactly, you know, how to identify the
1:25:43levels, uh what setup we're expecting
1:25:47and then there was about I don't know 10
1:25:48minutes until market opened. So we just
1:25:50quickly had a a short break there. Uh
1:25:53but market's going to open in 2 minutes.
1:25:55You can already see some of the the
1:25:57candle movements and volatility starting
1:25:59to pick up a little bit. Uh but just to
1:26:01let you know,
1:26:03>> we're gonna try and execute from the
1:26:05desktop, but usually you execute from
1:26:08your phone for the speed of it. Um so
1:26:10he's going to try to do the desktop just
1:26:12for the recording and for you guys,
1:26:13which I feel sorry for because you know
1:26:15at the end of the day we should still
1:26:17follow the normal process. Uh but for
1:26:19any reason, if it's taking too long to
1:26:21try and do on the desktop, we may
1:26:23execute on the mobile phone um
1:26:26accordingly. So let's see. But the
1:26:27market's going to open literally in 2
1:26:29minutes time. uh we already have five uh
1:26:33symbols that we are interested in. We
1:26:35have four on screen just for again
1:26:37visually uh make it easier to see and we
1:26:41know exactly the setups that we are
1:26:43looking for and it'll be interesting
1:26:45like just with this one here on AMD
1:26:47would that change you seeing such a
1:26:50seeing the market do that uh does that
1:26:52change what you would look for in there?
1:26:54Yeah, usually when I see this type of
1:26:56move that are kind of ruining my plan
1:26:59because I've been looking for the price
1:27:00to open up here, break and retest,
1:27:03>> but it might be still respecting this
1:27:06one level and still keeping the uptrend
1:27:08and move from that level as well. So
1:27:11that might be less of a priority for me
1:27:13this this setup, but still on my
1:27:15pre-market plan.
1:27:16>> Understood.
1:27:20And also when the market opens, usually
1:27:22I just wait for the first five minute
1:27:24candle to close because the first
1:27:25fiveminute candle is
1:27:26>> usually the place where the battle is
1:27:29and then everything is set.
1:27:34Okay, market open. Market open.
1:27:38There is no rush. Just patiently waiting
1:27:40for the first five minute candle to
1:27:42close. Hopefully it's going to be a
1:27:45winning trade today. But even if that's
1:27:46going to be a losing trade, the the
1:27:49disciplined way of how to deal with the
1:27:51losing trade is also success in my
1:27:53opinion.
1:27:54>> Mhm.
1:27:57So, some couple crazy candles here on
1:27:59the Tesla on the AMD.
1:28:04I'm hoping I'm hoping just that they're
1:28:06not going to be just shooting to the
1:28:08upside without providing me any
1:28:09opportunity to go in for the trade. But
1:28:12just even from that information that we
1:28:16have, just look at how precise the level
1:28:18is right there.
1:28:19>> It just touched the level on the open
1:28:22and just shooting. But I'm afraid that's
1:28:25like uncatchable move.
1:28:27>> Mhm.
1:28:29>> So what I do like right now is the way
1:28:31that the Tesla is breaking the level.
1:28:34It might be breaking closing above the
1:28:37level and then create the bouncing
1:28:39candles that go for the retest.
1:28:44But if no opportunity then no
1:28:46opportunity. I'm not going to be forcing
1:28:48anything. Still I'm going to be looking
1:28:50for other plans that are left which are
1:28:53still spy for the breaking retest. Kik
1:28:56for the breaking retest which are still
1:28:58aligned.
1:29:00That's how I operate. Like usually some
1:29:02plants are getting invalidated, some are
1:29:05still valid. If I if I have like zero
1:29:09plants left, if everything is
1:29:10invalidated, I have to ask myself like
1:29:13if I want to stay or am I going to be
1:29:16doing a mistake while doing something
1:29:18unplanned. So yeah, usually I just just
1:29:22finish and leave with no plan.
1:29:25So still just first two minute.
1:29:29>> This is the reality of trading, isn't
1:29:30it? They have to be patient.
1:29:32>> Yeah.
1:29:32>> You know, do you think a lot of people
1:29:34make the mistake of uh trying to find
1:29:36that excitement and rush from trading?
1:29:39>> Yeah, I'm I'm one of those actually.
1:29:40I've been making all kinds of the
1:29:42mistakes. I've been going into the trade
1:29:43at the market open having like couple
1:29:46times success but more times of like
1:29:48losing failures. It all it all was a was
1:29:52some lessons for me. So even at this
1:29:54time I can just highlight the way that
1:29:56the spy is approaching to the level
1:29:58which is kind of making it my favorite
1:30:01pick and the AMD. I think the original
1:30:05plan is valid right there because I mean
1:30:08originally looking for the breaking
1:30:09retest of 217. Yeah,
1:30:11>> even though the price quickly rushed
1:30:13from 215 level, but the Tesla that's
1:30:17another story because the price is
1:30:19already
1:30:20not making the breaking retest but
1:30:22moving to the next level. So, it might
1:30:25maybe take some time for the price to
1:30:27retest and provide entry. But if the
1:30:29price is not going to retest and then go
1:30:31up, I'm certainly not going to be using
1:30:34this one level. So, I'm going to be just
1:30:36I just let it go.
1:30:37>> Mhm.
1:30:39By the way, the other name that I had
1:30:41that was the Palanteer.
1:30:46Okay, Palanteer. I was looking for the
1:30:47bounce. So looking at the hourly still
1:30:53price opened just above the level now
1:30:56going down failing. But if the price is
1:30:59going to go back up, I'm going to be
1:31:01looking for some solid signs of the of
1:31:03the holding
1:31:05and still interested in calls.
1:31:11Right now, we're having a lows at this
1:31:13area. So, even going in at the level,
1:31:17this is a big risk for me. I'm certainly
1:31:20not interested in that type of trade. If
1:31:22the price is going to go up, create some
1:31:24good pattern with some tight stop loss
1:31:26available for me, that is going to be a
1:31:28go for me. But for now, nothing.
1:31:33>> So, how long do you think we can spend
1:31:35on this luxury?
1:31:37>> I don't know. We got to see what the
1:31:40market provides. Eh, uh, the beauty is
1:31:42that we can speed up, you know, if
1:31:43there's like large gaps in between or
1:31:45we'll go however you want at the end of
1:31:47the day as well. Um if for any reason
1:31:50you feel like h yeah market didn't
1:31:52really do anything we don't have to have
1:31:53the live trading in here you know so we
1:31:56can uh we can decide we can decide based
1:31:58on how how it actually goes.
1:32:00>> Mhm.
1:32:02Right. One good thing right now is that
1:32:04Tesla is breaking one level not two
1:32:06levels but just one level
1:32:09which now allows me to look for two
1:32:10minute time frame.
1:32:14I do not like the way that the price is
1:32:16looking good for taking position off of
1:32:20this one level. I'm still going to wait
1:32:21for the price to go here, take position
1:32:26and be patient on the AMD. Actually,
1:32:29this thing is actually looking like a
1:32:31how they call like a inside bar one to
1:32:34three pattern when the price is trending
1:32:36or resting and then continuing. But
1:32:39that's just a two-minut time frame.
1:32:40That's why I give preference to 5 minute
1:32:42because 5 minute that's just a breaking
1:32:44candle. Still didn't close above the
1:32:46level. Still can close below the level
1:32:48if sellers will push the price down.
1:32:53One more negative thing is
1:32:56indices are getting weaker.
1:32:59Okay, this one is looking quite
1:33:01promising about the palenteer price
1:33:04quickly bought from this area going back
1:33:06above the level but bad thing is the spy
1:33:09going down.
1:33:11Usually I try to avoid going against the
1:33:15market.
1:33:18>> This might be looking good for the calls
1:33:20but this is looking like a bleeding. So
1:33:23my chances are low to go against the
1:33:26market usually.
1:33:30So again with the AMD looks like a
1:33:33perfect break and retest but that's
1:33:36actually rejection happening on the 5
1:33:39minute.
1:33:43Okay. I think at least I can just not
1:33:46look at the Kiko at the moment because
1:33:47Kik is just quite far from the level
1:33:49that I want.
1:33:50>> Mhm.
1:33:50>> And replace it with the paler that I
1:33:52have on my pre-market watch list.
1:33:57Now I'm kind of having the sense of the
1:33:59indices and still looking
1:34:02for the setups.
1:34:07The pre-market bands are highly highly
1:34:10like subjective like
1:34:12they might be sometimes biased,
1:34:15sometimes they're wrong.
1:34:17Do you ever have the plan and then based
1:34:20on the market change it or do you just
1:34:22if it's not following the plan
1:34:24pre-market plan you just regardless
1:34:26leave for the day?
1:34:30>> Most of the time I just leave for the
1:34:31day.
1:34:31>> Mhm.
1:34:32>> But sometimes I might see some good
1:34:34pattern, good levels, good reaction to
1:34:37the levels, just no pre-market plan on
1:34:40that certain setup. I might go with a
1:34:43smaller position size because I know
1:34:46that I'm going against my rules, but at
1:34:48least to minimize the damages if the
1:34:51trade is going to go wrong and also not
1:34:53to reward too myself too much
1:34:55>> for doing bad stuff for breaking the
1:34:57rule.
1:34:59>> That's the remedy that I have.
1:35:02You might get bored waiting for the
1:35:04trade.
1:35:04>> Hey, this is trading. Yeah.
1:35:06>> Yeah.
1:35:08>> This is trading at the end of the day.
1:35:10you know what we're trying to do here at
1:35:11Chanatics is show the reality of trading
1:35:14you know
1:35:14>> and uh this is the reality of trading
1:35:17you know whether people I'm sure people
1:35:19will respect it you know
1:35:21>> um at the end of the day because you
1:35:24know easily
1:35:26we could pick a day that might have some
1:35:27crazy news and then we know we'll have
1:35:29movement but that still doesn't mean
1:35:31we'll have a trade.
1:35:32>> Mhm.
1:35:32>> You know that's the difference. Just cuz
1:35:34the market moves doesn't mean there's a
1:35:35trade. The trade has to as you said
1:35:38follow your system and it would be a
1:35:40disservice to you and the audience if we
1:35:43were live trading just for the sake of
1:35:45live trading you know
1:35:47>> um I would rather we follow a system or
1:35:49a plan and then see there's no trades
1:35:52>> um no matter how boring or you know
1:35:55whatever that may be because at the end
1:35:57of the day our whole focus is live
1:35:59trading you know real trading the
1:36:01reality of trading and the reality is
1:36:03you get days where there's no uh there's
1:36:06no movement or there's no nothing that
1:36:07fits the the criteria set out.
1:36:10>> And this is what it's about. You know,
1:36:12we we went through pre-market prep. We
1:36:15identified five potential trades and
1:36:17then what that should look like and if
1:36:18at the end of the day the market doesn't
1:36:20follow that plan, our job is to do
1:36:24exactly what he said, which is sit out,
1:36:26you know, no matter how boring or how
1:36:28much we need to make money. And this is
1:36:29the thing with trading though. There's
1:36:31no guarantee that you can take a trade
1:36:32every day. And even if you do take a
1:36:34trade, there's no guarantee you'll win.
1:36:36And that's why it's so important to make
1:36:37sure that you are trading with money
1:36:39that you can afford to lose and having a
1:36:41nest egg and savings because you know if
1:36:44this was your full-time thing
1:36:46>> not being you know identifying five
1:36:48potential trades and then maybe the
1:36:51market not presenting any of them.
1:36:52>> Mhm.
1:36:54>> If you need the money from trading
1:36:55that's that's the recipe for disaster
1:36:57there because that's where you start to
1:36:58chase. or say you're adapting, which
1:37:01isn't necessarily a bad thing, but if
1:37:04you're adapting because you need to take
1:37:06a trade, then it probably is a bad
1:37:08thing. You know,
1:37:09>> sometimes I might be just going from
1:37:13calls to puts changing perspectives, but
1:37:16that takes like like very very like
1:37:18trending movement from the indices
1:37:20usually. Usually, let's say like this or
1:37:24maybe even even harder than that. If the
1:37:26price is bleeding, maybe some news
1:37:28dropping in only at that point I might
1:37:31be just might be shifting my focus from
1:37:33calls to puts and look for some setups.
1:37:36But still not going to be using any big
1:37:39size, any full size, just tiny size,
1:37:42some adventurous feeling, let's say.
1:37:45>> Is Tesla still on your card, do you
1:37:47think? Or
1:37:47>> Yeah, I'm still going to be looking for
1:37:50the price to slightly go underneath the
1:37:5342068.
1:37:54hold it. And the important thing right
1:37:57now is the indices because they're
1:37:59bleeding. Not bleeding, let's say, just
1:38:00just going lower. So if Tesla will
1:38:05somehow resist this move, hold this
1:38:08area, then I'm going to be entering at
1:38:11that point. If let's say miraculously
1:38:14the market is going to pivot, shift some
1:38:17reversal, then it's going to help my
1:38:19position.
1:38:22So the market conditions are important
1:38:24to identify whether market can help you
1:38:27or just ruin your position.
1:38:32>> Even now I see that the spy overall is
1:38:35red for the day but Tesla is overall
1:38:37green for the day. So that's the
1:38:39relative strength that the Tesla has.
1:38:43So, usually when it comes to setups like
1:38:45this,
1:38:48let's say I'm anticipating Tesla for the
1:38:50for the touch of the level, then I
1:38:52quickly just configure my order here on
1:38:54my phone.
1:38:56But for the
1:38:58for the podcast, we will be doing the
1:39:00desktop one. So, that's going to be
1:39:02Tesla.
1:39:07I'm still not ready to trade, but I'm
1:39:09just in case just preparing the order.
1:39:12That's going to be the closest
1:39:14expiration, I think. Oh, no. I By the
1:39:16way, Tesla has the expiration like
1:39:20Monday, Wednesday, Friday, which is
1:39:24quite dangerous. So, I'm going to be
1:39:26using the Friday's one.
1:39:30the max 7 having the new expirations.
1:39:36It can be it can be dangerously
1:39:37volatile.
1:39:39So, as a regular shade, I'm going to be
1:39:41using the Friday's expiration on this
1:39:43one,
1:39:44but I'm still going to be waiting for
1:39:46the good
1:39:47>> actual level.
1:39:48>> Good. Yeah, good setup.
1:39:59It might be feeling weird to have like
1:40:03this type of rejection pattern by the
1:40:05way on the Tesla on the five minute I
1:40:09see one two three weeks that are
1:40:12rejecting this one level.
1:40:14>> Yeah,
1:40:14>> that's but but I'm still having the
1:40:16calls in my plan because this level is
1:40:18the level of interest and even trading
1:40:20from this level to that level
1:40:22>> is going to be rewarding for me. So
1:40:24after that
1:40:26>> doesn't none none of my business. So, my
1:40:28target is going to be from this one.
1:40:30Maybe tomorrow is going to be even
1:40:31closer than the level, but after the
1:40:34level, I'm going to be very cautious or
1:40:36just out of the position.
1:40:42Okay. Uh,
1:40:44I think that's going to be
1:40:46Oh, wow. They're expensive. Okay.
1:40:50The way that I'm aiming for that for
1:40:53that move.
1:40:55Yeah, 22.5 is like here and I'm aiming
1:40:58like for this one. So I might be looking
1:41:01for 425 strike price to get the maximum
1:41:05delta squeeze out of it. So 425
1:41:10this one
1:41:12if the spread is okay 10 cents of the
1:41:14spread I think that's okay. I might go
1:41:17even with the market order
1:41:20for that when the spread is okay. I
1:41:22might go with the market order. So
1:41:24quickly calculating the price for that.
1:41:27Where is it?
1:41:316.8. I think I can go with let me go for
1:41:3510k position size. That's going to be
1:41:39roughly like I think 16.
1:41:52Yeah. And I've been I'm going to be
1:41:54still looking for the price to get to
1:41:56the 420 level.
1:42:03There's the cheaper options for tomorrow
1:42:05expiration, but you'll be having much
1:42:08more volatility.
1:42:11>> So, what do you do? Do you aim for that
1:42:12sort of that middle ground?
1:42:15>> Actually, I usually aim for the closest
1:42:17expiration, but just to be a little bit
1:42:20more conservative on the
1:42:22on on the on the podcast, I want to go
1:42:26for this one. I actually tried only once
1:42:29the the new expirations on the Tesla.
1:42:32Other times, I've been always using the
1:42:34Friday's expiration.
1:42:36The term expiration might be something
1:42:38new for the feature traders, for the
1:42:40Forex traders.
1:42:42That's the moment when the contract is
1:42:45expiring. But
1:42:46>> when trading this on futures, do you
1:42:47just look for the exact same? It's just
1:42:49not really the options flow in terms of
1:42:52picking the contract, etc. Do you trade
1:42:54futures with the same setup we've gone
1:42:56over today, or is it slightly different?
1:42:58>> Actually, yeah. when I'm trading the
1:43:01names I'm looking for but but when it
1:43:03comes for the spy or the kik
1:43:06I'm just not opening up my bookmap
1:43:08because the prices are quite far from
1:43:10the levels so just to save my screen
1:43:13time
1:43:15um right now I'm looking for just Tesla
1:43:18AMD I think is invalidated because of
1:43:21the hard rejection and the palanteer
1:43:25is still struggling to go back about the
1:43:28level so right Now the only valid one
1:43:30for me is still Tesla.
1:43:31>> Mhm.
1:43:31>> So on the bookmark there's no point on
1:43:33using bookmark with the Tesla in my
1:43:35opinion. It's better to use with the spy
1:43:37with the Kik.
1:43:39So usually when it comes to the futures
1:43:41I trade ES in the INQ. So I just use the
1:43:44bookmap with with with the heat map
1:43:47right next to me.
1:43:50Right. I'm going to
1:43:53I'm going to do
1:43:55one more thing.
1:43:57I'm going to do Tesla right there and
1:43:59the indices
1:44:02as I'm not going to be focused on on the
1:44:04other ones. All right. So, the price is
1:44:07like this. I think I'm still going to be
1:44:09going for 16 bunch.
1:44:12Price almost touching the level like
1:44:14just 20 cents away from that.
1:44:17At the same time, KikQ is making the low
1:44:19of the day. That's something to worry
1:44:21about.
1:44:23Spy stronger.
1:44:29I would love to see some move slightly
1:44:33below the level to have maybe slightly
1:44:36lower than the level stop loss like
1:44:38this.
1:44:40>> And once I'm in a position, I just don't
1:44:42look at the P&L. I just look at the
1:44:44chart.
1:44:48>> Is that cuz the P&L can be uh can be
1:44:50distracting or like pull
1:44:52>> pull different decisions.
1:44:54>> Yeah. You might be even aiming for some
1:44:56round numbers like okay I want to make
1:44:585k 10k let it be like 20k of the profits
1:45:02or
1:45:04or or sometimes people are scared about
1:45:06the the losing amount
1:45:08>> they might want to kind of cheat and
1:45:11lose less than the desired
1:45:15>> the stop loss. All right. So, here
1:45:17price.
1:45:19Okay. 10 cents away. Okay. How much was
1:45:21it?
1:45:26Okay. Let me look at it.
1:45:29Okay. Price was just 4 cents away from
1:45:32my level.
1:45:34Okay. Let me just look at it in this
1:45:37perspective.
1:45:39Just a single chart.
1:45:43At moments like this, I'm a little bit
1:45:45scared like maybe I missed the
1:45:48opportunity because price did not go
1:45:51slightly lower than the level.
1:45:53>> Yeah.
1:45:53>> And I'm here just one click away. Just
1:45:55one click away from going into the
1:45:57trade.
1:46:00So if you just zoom at it, this thing
1:46:02was just 4 cents away from this.
1:46:04>> But it has to hit the level for you.
1:46:07Sometimes I might be flexible with that
1:46:09and sometimes I might be even like going
1:46:11here like half size and for the touch
1:46:14the other half size
1:46:15>> so that somewhere in the middle I'm
1:46:17going to be having the like the average
1:46:19entry for the trade if I'm too scared to
1:46:23miss the trade.
1:46:30I'm still hoping still hoping though
1:46:32that the price will present the entry
1:46:35for me.
1:46:38Okay, one more thing that I would like
1:46:41is
1:46:43okay 425
1:46:47I put this chart of the option contract
1:46:52so I see roughly where where the price
1:46:55is where my stop loss is going to be.
1:47:03I'm guessing at home as well you have
1:47:05multiple screens. Yeah, like three
1:47:07screens like everything very very
1:47:10convenient.
1:47:14By the way, that's the reason why I'm
1:47:15not going full size because I'm a little
1:47:18bit not not comfortable trading outside
1:47:20of my office. That's why today only only
1:47:23like 10k position size instead of 40k
1:47:2650k.
1:47:27But still decent decent size.
1:47:30>> Was very good size. Yeah.
1:47:31>> Yep.
1:47:34All right. So the price is approaching
1:47:36to this rear.
1:47:39All right. And then I'm going to go.
1:47:43Okay. This thing is
1:47:46it?
1:47:48Yeah. It's looking good. I'm going
1:47:54go now. Getting my weight. Here's my
1:47:57position.
1:47:57>> Uhhuh.
1:47:58>> I'm in at 575. Price is at 587
1:48:03right now.
1:48:05And I'm going to keep my stop loss here
1:48:06at roughly this area.
1:48:10So I'm going to be targeting the level.
1:48:14It might be maybe slightly less than two
1:48:17or multiple,
1:48:20but I'm going to be I'm going to try to
1:48:23be patient with this one.
1:48:25Okay. The good thing is that the indices
1:48:27are reversing. That's a good sign.
1:48:33Is that normally how it goes like on an
1:48:35average day where you we had what five
1:48:38on a watch list and then in this case so
1:48:40far one has been the one that's
1:48:43presented itself for us
1:48:45>> usually. Yeah. I mean not exactly. There
1:48:48might be some days where like two,
1:48:50three, four of them are doing good job
1:48:52and I'm looking at something that's
1:48:55going to take me with the stop loss. But
1:48:57the other one which is looking the same
1:48:59good, but that one is going for like
1:49:02like to the moon.
1:49:05>> Right, we are approaching the level.
1:49:08I'm going to Where is the I'm so not
1:49:12proficient with the
1:49:14with this one. create the closing order
1:49:17for let's say 10 at the market price.
1:49:26Okay, we almost touched the level.
1:49:30Okay, we're going for the level.
1:49:34Just a little bit more. Just 20 cents
1:49:37more. I think
1:49:40>> the market wants to do that.
1:49:41>> Yeah, we actually were. Okay, we're
1:49:43touching it.
1:49:45Okay, we closed 10 contracts. Now we
1:49:47have only six contracts left. We made
1:49:501500 and 500 running
1:49:53right now. Now let's let's shift the
1:49:57stop loss. Let's reduce the amount of
1:50:00the stress.
1:50:00>> Mhm.
1:50:02>> The important thing for me right now is
1:50:03for the price to keep it above the
1:50:06level.
1:50:07So if
1:50:08>> if you just break back above there,
1:50:09would you look for another retest of
1:50:10that or no? That's it. Usually after the
1:50:13winning trade, I am like I'm on a
1:50:15preserving mode.
1:50:16>> Okay,
1:50:17>> I made profit. I want to kind of keep
1:50:20it. And usually I found myself like in a
1:50:23great place recently having like great
1:50:26one and done days. Like
1:50:27>> one good trade, you make the profits,
1:50:29you don't spoil them, you don't waste
1:50:31them, and you're good to go. Okay, let's
1:50:34see how it's on five. Looking great on
1:50:37five minutes, actually.
1:50:39Okay, the candle is going to be closed
1:50:41in two and a half minutes. I really want
1:50:43to see the candle closed above the
1:50:45level,
1:50:46but same time I'm aware of the fact that
1:50:50we might get rejected from this area
1:50:53that was rejected multiple times
1:50:55>> on the open. Yeah.
1:50:56>> Yeah. So that's why my my stop loss is
1:51:00shifted. So I think it's going to be
1:51:02like like what break even or maybe small
1:51:05profit. Mhm. Okay.
1:51:08So if we were to sustain above, would
1:51:10you then be looking at price to get to
1:51:12that level there? 426 34.
1:51:15>> I would look to slowly start scaling out
1:51:18again and then just slowly start to
1:51:20shift my stop loss again.
1:51:21>> Yeah, I'm going to maybe close another
1:51:24two contracts.
1:51:26So two contracts
1:51:29at the market. Is it still good? Still
1:51:32good.
1:51:34Okay, another two contracts closed. And
1:51:37now we have only four contracts.
1:51:38>> Mhm.
1:51:39>> So
1:51:42the candle is going to be closed in 1
1:51:44and a half minutes. I just want to see
1:51:47the candle closing above the level. But
1:51:49I'm not going to be shifting my stop
1:51:51loss immediately to the level because
1:51:52that's going to be just a smaller room
1:51:55for the price to wiggle. So right now
1:51:57price is here. And also I certainly
1:51:59don't want this green candle turn into
1:52:02red candle. So that's why makes sense
1:52:05for me to move to the opening of that
1:52:09of that candle.
1:52:14If I didn't see like this big wick right
1:52:18now, this kind of looks like a rejecting
1:52:20pattern for me.
1:52:22But that's why I've been kind of uh
1:52:24ready for that. I've been prepared
1:52:33Okay. Uh, let me have the order ready
1:52:36just in case it will hit the stop loss.
1:52:39The market order.
1:52:44It's way faster with with the phone. By
1:52:46the way,
1:52:46>> I can imagine [laughter]
1:52:47>> it's like it's like once I'm I'm in the
1:52:50position, I'm uh swiftly configuring the
1:52:53closing order, market order, and I'm
1:52:55just just finger on the trigger. Just
1:52:58one click away from closing it.
1:53:02>> Right now, it is approaching.
1:53:07The candle is going to close in 5
1:53:10seconds.
1:53:13All right. Candle
1:53:15candle here. This is still a green
1:53:18candle, but
1:53:20>> still rejecting this one level. So, we
1:53:22might I mean, I like the way that we
1:53:25scaled out of the trade. And
1:53:27>> Oh, yeah. Well, it's a great example of
1:53:30why uh you know, don't trust a candle to
1:53:32it closes essentially
1:53:34>> because that you know, if you were
1:53:35looking at that a few minutes back when
1:53:37we we were scaling out, everyone would
1:53:39probably think, why aren't you holding
1:53:40it? That's such a bullish, you know,
1:53:42such a bullish move. And then this is a
1:53:44good example as to why you got to follow
1:53:46your rule set.
1:53:47>> Yeah. And also I my entry was not
1:53:50perfect by the way,
1:53:51>> which means I've been entrying I think
1:53:52here.
1:53:54>> I was some somewhere like here.
1:53:55>> Yeah.
1:53:55>> And I could have entered here like like
1:53:574 cents away from the from the level
1:54:00which could have gave me more profits.
1:54:02Better. So, if this thing is going to go
1:54:06to the red zone,
1:54:09I'm going to be closing the trade.
1:54:19Sometimes it's kind of bouncing like
1:54:21that off of the stop loss area. H.
1:54:33All right.
1:54:35Closing.
1:54:37Okay. Closed.
1:54:39So, a little 1,200 on that trade just
1:54:44because of the smaller size of the
1:54:45trade. But yeah, out of the trade and
1:54:49then what happens next is none of my
1:54:51business.
1:54:51>> Mhm. Definitely. Yeah.
1:54:53>> So, how long did that trade lasted?
1:54:55Lasted about 10 minutes max.
1:54:57>> Um, I would say how much is it? Uh,
1:55:01just 3 4 minutes.
1:55:03>> Oh, what?
1:55:03>> No, no, no. I think Where is the entry?
1:55:08>> That was 7 minutes. 7 8 minutes.
1:55:10>> Yeah. So, $1,200 in seven or eight
1:55:13minutes is is absolutely incredible, you
1:55:15know. But it just show goes to show
1:55:16though. It's easy to say that $1,200 in
1:55:19seven or eight minutes, but the reality
1:55:21is that's years of hard work. Is the
1:55:23preparation beforehand, which took about
1:55:2510 15 minutes as well. Uh then the
1:55:27patience to wait for the entry, which
1:55:28took about again similar 10 15 minutes.
1:55:31>> Um and so these these things add up. And
1:55:34then there's also the time afterwards,
1:55:36right, of of making sure not to give
1:55:38those profits back and and uh being
1:55:40disciplined and walking away like what
1:55:42do you normally do after? So we're going
1:55:43to go through, you know, sort of
1:55:44documenting the trade. That's the most
1:55:46important part actually. So now
1:55:48>> and normally you you what would your
1:55:50normal size on that trade be just for
1:55:52you know if we weren't here in the
1:55:53studio
1:55:54>> 45 maybe somewhere between 40 and 50k.
1:55:57So just multiply this number by let's
1:55:59say four or five and that could have
1:56:01been the
1:56:02>> the profits on this regular trade
1:56:05>> of course. So it just goes to show as
1:56:06well when developing the skill set
1:56:09>> um you know that could have been in that
1:56:11same seven or eight minutes in terms of
1:56:13the trade length could have been five
1:56:15$6,000
1:56:17>> right and again it comes down to just
1:56:20really want to highlight that
1:56:21preparation
1:56:23the time and the effort uh that goes
1:56:25into years of study uh developing these
1:56:28systems and rules and then following the
1:56:30rules of course is is the hardest bit um
1:56:33but not when you put in the time to do
1:56:34So like the preparation again is really
1:56:36it was really good to see the pre-market
1:56:38prep. We listed out five different
1:56:41opportunities but those opportunities
1:56:43with what we were looking for at the
1:56:45levels as well the price
1:56:48within the first uh 5 to 10 minutes we
1:56:50had already ironed out one or two right
1:56:52that now no longer fit the strategy and
1:56:55then boiled down to one that fit. The
1:56:58one that fit then met the criteria,
1:57:00executed and then managed accordingly to
1:57:03the rules. And look, you know, again,
1:57:05why, you know, a lot of people no doubt
1:57:07in real time might have thought, why do
1:57:09we need to scale out here? This is
1:57:10looking really strong.
1:57:11>> Well, then look what look what's
1:57:13happened. You know, you would have gone
1:57:14to stop loss, original stop-loss. And
1:57:16that's if you then had the discipline
1:57:18off the back of that poor decision to
1:57:19then hold uh not hold, sorry, close your
1:57:21trade as you're meant to. Uh you a lot
1:57:23of people probably would then look to
1:57:24try and hold it longer and who knows
1:57:26what's going to happen next. It might go
1:57:27lower, uh, even lower. It might go back
1:57:30higher, but then at that point, you're
1:57:32no longer trading, right? You're doing
1:57:34something else.
1:57:35>> One of the worst excuses that I hear
1:57:37from the people is when they refuse to
1:57:40close at the profit and then they see
1:57:41the price going from green to red.
1:57:44>> Yeah.
1:57:44>> The this the dumbest thing is they say
1:57:46like, okay, I still have two three days
1:57:48till expiration. What if the Tesla is
1:57:50going to make like some booming move
1:57:52like tomorrow or be a day after? But
1:57:54that's not how it is. That's the day
1:57:56trading. You have to be here and now.
1:57:59>> You should not be taking chances of what
1:58:01is going to have happen over the night.
1:58:03>> Yeah. And that's also the important of
1:58:05shifting the stop loss because here
1:58:08touching the original stop loss, it
1:58:10could have been more than I originally
1:58:12expected because because of the decay,
1:58:14>> we already spent like maybe like from
1:58:17that point like three five minute
1:58:18candles. So it could have been already
1:58:20less of a value at this point. And also
1:58:24one thing that people ask me sometimes
1:58:26is when the price is going down to your
1:58:28in area, are you like going in again? I
1:58:32say no. If I done the trade, then it's a
1:58:34done deal. Nothing else matters to me.
1:58:36It's it's none of my business. If there
1:58:38was
1:58:38>> essentially a break and retest you,
1:58:40that's what exactly what happened,
1:58:41right? We broke.
1:58:42>> Yeah.
1:58:42>> Then we retested and then that's what
1:58:44we're looking for because now it would
1:58:46be invalid, right? We could break again,
1:58:48>> but it's like how valid is that after
1:58:50the initial break?
1:58:51>> Yeah. And also the the precision of the
1:58:54levels. I mean, they're not like cent to
1:58:56send perfect like
1:58:57>> sometimes they might be, but here it was
1:58:59just 4 cents away from the from the from
1:59:02the from the level just here.
1:59:05>> But I took my entry here when it was
1:59:07like been having a little bit of the
1:59:10distance. So here to here, the profits
1:59:14could have been bigger.
1:59:16>> Yeah.
1:59:17>> And that's something that I'm going to
1:59:18be highlighting during the journaling.
1:59:20>> Cool. really.
1:59:21>> So, let's move on to the journaling
1:59:23part.
1:59:23>> Yeah.
1:59:24>> Okay. So, while everything is still
1:59:26fresh in my mind, um, where was the
1:59:30I think it was
1:59:33account statement.
1:59:38These are the orders.
1:59:40Exporting it. So, every account
1:59:43statement is here. Now I don't need
1:59:46anything on my tank or two
1:59:49adding the trait.
1:59:51By the way, that's the reason why I'm
1:59:53not syncing it because usually
1:59:57syncing it might take it till the end of
1:59:59the trading day
2:00:01>> to appear on your dashboard.
2:00:04All right, so here it is. Just one trade
2:00:0813%. So
2:00:12I'm going to start with the stop loss
2:00:14amount that I had.
2:00:16So going for the option.
2:00:20So here was my entry the market order
2:00:26and I've been having the stop was
2:00:27slightly lower than the than the than
2:00:30the level. So that was probably maybe
2:00:345.5 maybe. My my in was 575. So 5.5
2:00:40let's say. Okay. Now the stop loss.
2:00:47So
2:00:49now I think that's too low. I think I've
2:00:51been looking for slightly lower than
2:00:53that. So maybe 5.3.
2:00:58Okay. Something like that maybe. So I've
2:01:00been risking 700 bucks. small amount
2:01:03because of the small position and been
2:01:05looking not for two multiple but for the
2:01:08level to be hit on on the chart
2:01:11>> and we can actually see it. Uh this is
2:01:13the option chart price been going here
2:01:17triggering the level and we actually
2:01:19took that from basically from level to
2:01:22level.
2:01:24So
2:01:26u sometimes I'm leaving this page blank.
2:01:30One good addition that Trades made
2:01:33recently is added partials. So I'm going
2:01:36to use that.
2:01:38So I've been trimming initially 12 or
2:01:41how much was it? 10, right? Then I've
2:01:44been having like two.
2:01:47Then I've been having the four of them.
2:01:50So for two of them, I think I did not
2:01:53shift the stop loss at that moment.
2:01:56And for the last four of them, I've been
2:01:58hitting it exactly at the stop loss,
2:02:00which is like here at 585 or something.
2:02:07And look how my risk changed from 700 to
2:02:10to 500.
2:02:12>> So for the last four contracts after
2:02:15>> that changed because of the scaling out
2:02:16on the
2:02:17>> Yeah. on the
2:02:18>> because I I trimmed 10 contracts, it
2:02:20trimmed two contracts and then my shift
2:02:23my stop loss shifted from this area to
2:02:25to this area.
2:02:26>> So that's why I'm having reduced risk
2:02:29involved in the trade- which is awesome.
2:02:31That's the new feature on the trade zone
2:02:33that I absolutely like about it. So now
2:02:35it comes with the tagging. What setup
2:02:38was it for me? That was just a simple
2:02:40breaking retest for me. So nothing else.
2:02:45Maybe I can include the trend
2:02:48continuation because again on the hourly
2:02:51time frame we're on the on the uptrend
2:02:54and trend is continuing.
2:02:56>> So other than that I have to mark my
2:02:58mistakes. Mistake number one is going to
2:03:00be the bad entry
2:03:02>> because I didn't go in at right at the
2:03:06level right there. My entry was a little
2:03:08bit higher than that. So, bad entry and
2:03:12then what can be the other mistakes?
2:03:15I've been patient. I've been waiting.
2:03:17So, early exit is not the one. The
2:03:20pre-market everything was okay.
2:03:24>> Um,
2:03:28yeah, I think there is no more mistakes
2:03:31that I made with this with this trade.
2:03:34Yeah,
2:03:35>> I always have at least one mistake or
2:03:37two maybe. Usually that's like like the
2:03:39early exit when I am going out of the
2:03:42trade as soon as possible. So I didn't
2:03:47feel quite the exposure for the decay.
2:03:49Sometimes I mark the decay because
2:03:52sometimes when you wait too long price
2:03:54might start decaying, melting, and
2:03:56that's bad for you.
2:03:58>> Um
2:04:00my rate on that trade is going to be
2:04:02maybe like three and a half I think. I
2:04:05think for five star it should have had
2:04:09like clear entry right on the level and
2:04:12then no rejection on the five minute
2:04:14time frame like this one that we see.
2:04:17>> Yeah.
2:04:18>> So that two factors and then it could
2:04:20have been like five star trade on me and
2:04:23all by the way it's kind of a bouncing
2:04:25here and going for the level again but
2:04:28as I said none of them is this. So
2:04:32adding the strategy. So I kind of call
2:04:35it like gala rule.
2:04:37I just mark what I the the rules that
2:04:40I've been following. So I waited for the
2:04:42first five minutes of the citing candle
2:04:44on the market.
2:04:44>> Yeah,
2:04:45>> I've been using the level. I've been
2:04:46using the pattern
2:04:49>> on the pattern.
2:04:52Not the ideal one, but still we have
2:04:54several weeks,
2:04:55>> but the bodies are kind of keeping this
2:04:57area. It would have been also perfect if
2:05:00they had like
2:05:02>> below the level and the body is
2:05:03somewhere here. That would have been
2:05:06like like the dream like the awesome
2:05:08one.
2:05:09>> But still that's the bouncing pattern
2:05:10right there that I see. So I'm going to
2:05:13mark it as a tick. I've been using the
2:05:15pattern using the relative strength
2:05:17because Tesla is overall is been going
2:05:20up when the market was going down at the
2:05:22beginning.
2:05:24>> Stop loss I think it was tight. Maybe it
2:05:27could have been tighter, but okay.
2:05:29Consistent position size. Okay, I think
2:05:31that's okay because I didn't oversize
2:05:33and trade was planted. Okay, we had it
2:05:36on the pre-market plan right there
2:05:39breaking retest
2:05:41using the bookmap. I didn't use the
2:05:42bookmap. Usually I used for spy and Kik
2:05:45trade or NQ and ES trade. So I've been
2:05:47ting at candles started reverse and then
2:05:51I respected my stop loss and the move up
2:05:54overall it was aligned with the move up
2:05:56on the spine and the kiko on the on the
2:05:59chart we see we see
2:06:04>> the bonds alignment
2:06:05>> yeah from this moment to this moment
2:06:08that's this moment on on the indices so
2:06:11yeah if I been in my maybe office
2:06:16trading setup. Maybe I would have
2:06:19considered like looking for this
2:06:21breaking retest spy and Kiki for my
2:06:23pre-market one. But for now, I think
2:06:26it's quite okay to leave it as it is
2:06:29like one and done. Good trading,
2:06:31>> good session.
2:06:33>> And it doesn't matter how much we made
2:06:36or lost. The important thing for me is
2:06:38just to do things right. Of
2:06:39>> course,
2:06:40>> if you do things right, then results
2:06:42will not wait.
2:06:45So yeah, by the way, marked as reviewed
2:06:48and yeah,
2:06:50that's that's it. That's how my trading
2:06:53routine goes.
2:06:54>> It's perfect. No, I think it's uh
2:06:57>> it's amazing to see as I said in terms
2:06:58of, you know, to see the reality of of
2:07:01trading. You know, I know a lot of
2:07:02people always assume that trading has to
2:07:04be this, you know, super hyper engaging
2:07:08thing or that's what they assume because
2:07:09even because bear in mind, a lot of
2:07:11people always assume scalping and day
2:07:12trading is very exciting and impulsive
2:07:14and then swing trading is the thing
2:07:16that's kind of a bit more hands-off. But
2:07:18in reality, like even the right
2:07:20methodology of scalping and day trading,
2:07:22there's a lot of waiting, planning, like
2:07:24the actual execution bit is minimal.
2:07:27like like we said, we we spent more time
2:07:29planning the trade and more time then
2:07:31recapping the trade than we did actually
2:07:33in the trade, which is actually very
2:07:35very interesting. Um, but I really
2:07:37appreciate you coming on here because
2:07:38you volunteered yourself to trade live
2:07:40here. Um, so huge hats off to you and I
2:07:43really appreciate you doing that
2:07:44because, you know, again, it shows the
2:07:46reality of trading, you know, the
2:07:48reality of trading. And again, to walk
2:07:50away with $1,200 in 7 minutes is
2:07:53incredible considering the average
2:07:55salary even in America is about $40 to
2:07:58$50,000 a year. So to do 1,200 in a day,
2:08:03not even a day in 8 minutes, but let's
2:08:04say call it a day, um is an amazing
2:08:08opportunity. And that's why we love
2:08:09trading. That's why people try to trade.
2:08:12uh but they need to learn from people
2:08:13like yourself and learn from resources
2:08:15like this where they can see the reality
2:08:17of trading and what it actually looks
2:08:19like. So, I really do appreciate you
2:08:21being on here today. So, everyone at
2:08:23home, drop a comment with your biggest
2:08:24takeaway from this episode. A strategy
2:08:27that works both on options and on
2:08:28futures. We've shown you trading options
2:08:30today live with the market open and made
2:08:34$1,200 in the process. Whether we would
2:08:36have won, broke even, taken no trades,
2:08:38or lost, we would have shown you all the
2:08:40same. But thankfully the trading gods
2:08:42are on our side. But the links for Gala
2:08:44are in the description below. So make
2:08:45sure you check them out. Drop a comment
2:08:47with your biggest takeaway. Any
2:08:48questions you may have, throw it in
2:08:49there as well. Other episodes are on
2:08:51screen right now. So make sure you check
2:08:53those out. Hit like, hit subscribe.
2:08:55Well, until next time, this has been
2:08:56Char Fanatics. Take her.

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