THE "BACKSIDE" EXPLAINED

If you take a look at BIG you can see that, well that was a gap down and I was hoping it’s going to be a Gap-and-Go and it failed really, it was kind of going sideways then moved up took me out and now it’s moving higher so BIG just didn’t do what was supposed to do there’s nothing there really sometimes I like to talk about my losers more but not today, I mean uh definitely nothing educational worth talking about over there. I do want to talk about some of my trades here and I will start with PLUG.

Well, you may remember we talked yesterday about PLUG, actually you know what… Let me show you this; you see this piece of paper here? It says PLUG on it right that was the one I yesterday talked about in the room, I mean every once in a while I put up a few symbols which I really need to trade the next day my watch list on a piece of paper on my table, I know it’s kind of funny but you know, I still have them in the computer but it’s it’s just when I have them on my table as well it kind of helps me and why did I like PLUG yesterday? We talked about it because we looked at the daily and the daily is like oh my god the stock was at $7 a few months ago and now it’s $72 and we talked about this kind of high flyers that the day they’re gonna start coming down and the way we can show them and how much fun we can have shorting stocks which are big flyers.

You know we can go long, we can go short it’s not that different not necessarily going short but the intraday of PLUG today showed that it’s under a lot of pressure, of course not recently because the market was moving higher now and PLUG kind of moved up with the market, but look at the way it came down initially. Actually, Yogi talked about it I was busy with some other symbols today and then I heard Yogi shorting it, I took a quick look and kind of immediately joined Yogi’s in his trade in plug and again posted this one yesterday knowing that it’s about to be traded in the next few days I didn’t know it’s going to come up today but look at the way it came down started with the gap up today came down strong pulled back up failed again and then we took it under $67.

1. I took it under $67. 40. I think Yogi’s entries were a little bit different than mine; came down a bit moved up, actually reached my target here very close to $66 that was my initial target. I missed it because right when it reached it, it pulled back up again, but then when it proved to me that it wants to continue the journey lower I added and you know again you always add to your winners you never add to your losers, I will say this for the 100th time in here in the room I don’t care saying it for 1,000 times because I know one of the biggest mistakes people are doing is adding to losing trades you never add to a losing trade you never average down your losses you never ever do stuff like that unless you want to wipe up your account sometime in the future because you will wipe out your account, it’s just a matter of time, so always add to a winner if the winner can be trusted so if the stock is proving to you it wants to go your way and you like the daily in whatever reason then you know those who you really trust are the ones you should add, strengthen, as it came down you just add more size and that’s why I’ve got the $10,000 winner in PLUG, because it kept going and with an added quantity it just was amazingly nice and then I won’t talk about… and again you know one of my nicest winners was MARA here, but no reason to talk about much about MARA because it was a Gap-and-Go, it came down, it started with the gap down, then it moved up, then it reversed and that was a pretty clear Gap-and-Go trade and again you look at the daily it is a stock that we’re looking up at recently because you know again this talk started at $2 just a few months ago, two months ago so, and now you know you expect it to come down again so again a stock that is on my list for quite a long time now going short and long every once in a while it’s a big mover.

You know what it may come to you as a surprise but I do want to talk to you about Twitter which I think should be more interesting than other and then we’ll talk about GME of course but let’s start with Twitter here. Twitter is a loser and I do want to talk about this loss, not because we’ve done something wrong about going long, you know Twitter was consolidating nicely at the highs here. Look at Twitter here started with the gap up, definitely showing strength and then kind of going sideways and very, very clear resistance line right over here and then we took it and it spiked up nicely came down a bit re-tested and spiked up once more was very close to my target I needed another 7 cents or so for my partial.

But that’s not what I want to talk about, I mean Twitter can fail it’s okay it’s legal and then it came down the thing is it came down way too much from the highs you don’t expect a stock that wants to continue higher to come down that much when the stock is moving over the highs you expect it to continue well it doesn’t then you can have a loser fine you do not move out before you see a reversal the first thing I want to talk about is the fact that you have to wait for a reversal to know where your support is.

If you had some idea of where you want to move out that’s fine but you should always wait for a reversal point. So let’s say I moved in and I’m thinking I should have my stop somewhere around here $47. 90 okay this could be my plan stop loss but once it comes down and it doesn’t really pull back up and I don’t have a very clear reversal point which I did have here as you can see, that’s the only place where you can really trust the the support to possibly help you and the stock could start moving higher from that point on so you know it’s usually just a question of quantity ask yourself if you have any quantity, I don’t know how many let’s say you have 1,000 shares.

Can you really hold until it comes down another 20 cents? Or should you move out where you plan to move out? If you plan to move out at $47. 90, can you hold on to $47. 70? If the answer is no because I have 1,000 shares, then that’s the wrong answer. What happens if you only had 200 shares? Could you then play the right game and then hold until $47. 70 because you know when you plan the stop loss the stock doesn’t really have to obey your stop-loss, the stop doesn’t really stock doesn’t really care where your stop-loss is.

Nobody really cares where your stop is. So you determine that your stop-loss is $47. 90, who cares about that number? Somebody does care about this reversal of it when you have a technical reversal that’s a stop loss that’s a real stop loss okay and then only then then this is a valid support level that’s the point where you should have your stop. Can you hold to this point with 200 shares? Well, if the answer is yes well if I had 200 shares I would hold to that stop then the the 1000 shares answer was wrong, no I have to stand to 47.

90 - Why? Because I have 1,000 shares it’s a big loss then I don’t care about the number of shares you’re holding you’re just not playing the right game. You should wait until it comes down to the right reversal point and only then have your stop what I just said is wrong for novice traders if you’re just starting out forget about what I just said have your stop-loss have your stop-loss in the system hold on to your stop-loss don’t let it move cent under.

Why? Because you’re not that professional in making this kind of assumptions that okay we will wait for the next reversal and let’s see what happens… You you will get carried away, you may get carried away, you may have a big loser, much bigger losers than you expected so just don’t do it in the first I don’t know six months of trading but if you’re trading over that time or you’re feeling a little bit more confidence than just a novice trader just wait for the reversal point that’s the right thing to do you should do that don’t have a house stop in the system just wait patiently until it comes down shows you the reversal point and then starts to move higher but then comes another thing which is more important than what I just said, more important than what I just said; the other thing is really how far should you wait for it to move higher? Well it came down just think about what is going on in my head; I went long over here, okay? I was expecting to get my partial over there it did not get to my target and then it started going down this area I thought I should move out but I was waiting for it to reverse now every cent that it comes down it still looks to me like there’s a very good chance it’s going to bounce because you know it is up trending and you expect it to continue the uptrend so you don’t really know if it’s going to stop at 90 or at 95 or at 48 or at 95 or at 90 or at 80 or it’s 70 you don’t know where it’s going to stop you just don’t you have no idea where it’s going to stop so you just wait a little bit more 1 more cent 5 more cents 5 more cents and it comes down and then finally make the move but the point where it made the move right over here was too much to the downside it just you know when the stock is coming down that much you do not expect it to get back to the highs, you just don’t expect it to get back to the highs.

It definitely… We talked about dating girlfriends, right? Or whatever I mean we had this conversation today that you don’t marry to a stock you just date it and the shorter the date the better. So you know don’t get married to a stock, just date it and when the stock came down that much the stock is really laughing at you the stock is really just saying well you still want to date me I’m I don’t like you anymore I mean just watch where I’m going right now, you still like me? I just started dating your friend you still want to date with me, seriously? You know I’m sorry I’m just talking about this kind of real life issues I mean it sounds funny to you but you know the idea of not getting married to a stock is always important in my opinion I mean just don’t trust them and when the stock came down that much I just don’t trust it anymore.

That’s it. There’s nothing there anymore it just came down too much if it wanted to continue up trending, it if it wanted to continue dating me, it should have stopped somewhere around here and then continue to a new high it did not stop somewhere around here it continued coming down it shouldn’t be trusted then what am I doing next well next I’m not waiting for a miracle that will take it over the highs I just don’t trust it anymore, I’m looking for a good excuse to break up this relationship right now.

That’s it. That’s the only thing I’m looking for I’m looking to move out of this relationship that’s it this relationship is going nowhere so I’m just waiting for a good chance that it’s going to move slightly higher now I don’t know exactly where but you know I moved in here, I have a winning trade here, now I’ve got a losing trade here a bigger loser, a bigger loser, a very big loser okay so I’m just waiting for a small losing trade to move out so it bounced up somewhere around here maybe I could have waited  a little bit more maybe I could have got a bit higher but it was how to say how how far it will bounce if you’re thinking that it’s likely to continue coming down if you’re thinking this relationship is over just wait for a pullback and move out so you know I waited for it to come down a little bit more than I would normally expect because I needed to have I need to have the support level which I didn’t get and then when it bounced up I’m just thinking okay that’s the bounce and then it’s likely to come down again but where, where exactly? I don’t know so just wait for it to to move higher this was my original plan to move somewhere around here which is reasonable so at that area here where it just came up to I mean just have a smaller loser that’s it the stock is not going your way just just have a smaller loser look at my loser in Twitter.

I’ve got a $1,400 loser look at the look at the average winner that i’m having a few thousand dollars that that usually is my average winner three thousand four thousand dollars something like that big ones would write much higher well small one in GME, that’s a different story but you see that Twitter is like a third of my average loser or my average winner which is approximately the same and the reason for that is because I played it the right way. I was waiting for it to bounce I did not trust it to continue over the highs, I’m just just waiting for a miracle there and then when it came up a little bit I just moved out, I don’t have a big loser anymore I have a small loser now and that’s it and I’m out.

I don’t trust it to continue higher. Now the last thing we need to talk about is really just GME. We had a nice trade in GME. GME is a huge mover up 40% right now and look at that, it  has done it today, some intraday news, it has done it today without a gap. Again, when stock is moving up that much never, ever trust it. Never, ever trust it.

14:58 - That’s a a fantastic day the most beautiful girl you’re gonna ever meet and again excuse me for going that way today again but you know that should definitely be a short date that should definitely be a short date, I mean when it looks as pretty as that - why should it date me, right? Joking again right but I mean why should you just don’t date it for too long just you know get a quick spike move in take your partial and just leave it behind you. Never trust these ones they’re just too pretty and they’re probably gonna fail you so you know we had a nice technical point you would expect a stock like GME which is a big upside mover to spike again over the high so you just bite the right technical point and don’t trust it to continue i’m actually still riding 100 shares and if it just happens to continue higher then fine but definitely have a good stop loss right over here look at how far it moved and how far it came down.

I would not be surprised if it’s going to come down several points but that’s a different game maybe we should talk about it uh some other time, anyway I had a nice day I saw quite a lot of you guys making a good decent income today really proud of you. Really. I mean that was amazing. The market was not helping us today the market was spiking all over the S&P 500 spiked down then spiked up probably impeachment issues going on right now so I don’t know what’s the reason why it’s doing that but anyway when the market’s spiking up that way then it’s always harder to trade so well traders that’s a nice day and another green day and i’m having all green days from the start of this week and really enjoying my day enjoyed your company too and if you’re on YouTube how about giving us a thumb up, a quick click of a button here that will help our channel and more people like you who may be interested in trading and thank you all traders.

I’m not sure about tomorrow as I mentioned earlier I may not be trading tomorrow but I just don’t know it for sure right now. So see you sometime tomorrow, or the day afterwards. Bye traders!.