[Free Webinar] An Effective Second Trade Strategy

Apr 4, 2021 18:43 · 9395 words · 45 minute read

Okay perfect so I guess we can start. Topic of our lesson today first of all let’s we just say that uh we’re gonna do this mentorship and it’s an open mentorship so you’re very welcome to ask questions there’s a lot of things you can or may ask and let’s talk about everything that you feel like we should talk about but let me just start with something I want to bring up a topic that I think is very very important for for each and every trader it has to do with quantity management and I’m going to talk about the trade that I had today with Tesla it was one of my successful trades actually although I had three trades in Tesla this morning and uh two of them failed that’s the part I want to talk about how do you take your first trade let’s let’s you know start with how did I pick Tesla and then what do you do with your second trade and then what you do with your third rate quantity wise that’s a topic of my lesson today so feel free to ask any questions you like and let’s start and talk about uh um what I believe is a very important issue so first I walk into my computer pre-market time usually I do it at around one hour I start doing it at around one hour before the trading session starts I usually do it anywhere between 30 minutes before the market is open and one hour before the market opens somewhere in this time frame that’s what I do the first thing i do is take a look at the S&P 500 now take a look at the S&P 500 let me put this window a little bit higher here so you can all see it more clearly so here’s the S&P 500 you can see several months back now what’s the first thing you see when you look at the S&P 500 and a very clear uptrend a very very clear uptrend we are trending higher now of course I could uh take it further and we could this does not even this does not include the corona times now you can see the corona times where the corona crisis started last year so look at this huge move down and then we’re seeing the the recent move hold on second let’s take concentrate more on 2021 and you know somewhere let’s start somewhere at 2020 and 2021 we’re seeing a very very very clear uptrend now I always take a look at the S&P 500 before I start trading because i need to understand where we came from and where we’re likely to continue now although I I guess I feel like most of you that the market is too extended we shouldn’t be here I mean these are corona times markets supposed to be down we’re not supposed to be going for new highs and we did reach a new all-time high today so although that’s the common feeling of all of us traders we need to ignore it we need to ignore it because it only takes one look at the market you never find the market we never fight the market it only takes one look at the market to see what a very clear and beautiful uptrend we have now you take a look at the S&P 500 you see this beautiful uptrend that you just don’t find the market you expect the market to continue higher you look at uh the pre-market gap and you see that the S&P 500  is starting at around 0.

5 right now it’s up 0. 85 so we are trending higher today and it looks like we will continue moving higher and again if I go to the fundamentals here who cares about what I think who cares about the fact that I think the market should come down who cares about you guys think some of you thinking that the market should come down the fact is more people are at home more people have nothing to do more people are opening I don’t know robin hood accounts getting my money from uncle sam putting up in the market they don’t know how to short they only know how to buy they’re buying so I guess you know if I need to find an excuse why the market’s moving higher and keeps moving it’s because more and more people are involved in investing and in trading and in everything that has to do with that so if you take a look at the S&P 500 we’re moving to new heights and we do not argue so you look at that and then you look for opportunities so I usually look for my top 20 list now if you take a look at my top 20 list I’m taking a look at the biggest losers the biggest gainers and the most active stocks for some reason I can only see here one of the lists anyway so I what I do pre-market time I start looking at the losers losers of the New York Stock Exchange (NYSE) so I’m just going to click all of them and all the new users of the Nasdaq and I’m going to be looking for the biggest gap downs so the fact is today when we opened up I mean pre-market time when the market was getting up I do not expect to find and a lot of you a lot of stocks that are gapping down well I did find MVIS was it hold on a second let me see what it’s doing now MVIS is what is yeah it’s down 17 so that’s the only one I found today I didn’t even bother to take a look at the news stock is down 17 a pre-market time it was at 10 it was a beautiful opportunity for short yes of course here it is you see in the list of the big losers you can see it right over here so just one click of that button and immediately you can see the chart this is a daily chart of MVIS and so I just you know prepare pre-market picks but again that’s the only uh pre-market pick I saw today the only one I posted pre-market time in our trading home and it’s the only one that looked promising and it did do a great job personally i did not find a good entry point I know Scott took it for the short side so it worked out very well it was a beautiful gap and go trade but sadly I did not enjoy it myself I was too busy with other stocks today well I did concentrate on the stocks that did move up why because the market was gapping up today S&P 500 started with 0.

5 percent Nasdaq started 0. 8 I believe now it’s one half percent up so I did concentrate on the long side now if you take a look at the long side you will find somewhere no actually I did not find it on the long side that’s a good example in fact if you take a look at the longs at the gainers I’m looking for Tesla here I can’t find it you see I can’t find Tesla so Tesla is not on that list but if you look at the active stock pre-market time active stock you will find Tesla you will also find a few more candidates that we traded today like MU and other stocks you can find MVIS as well here so on the active side you don’t know if it’s moving up or down but of course you can just click them and watch so pre-market time Tesla was in uh was gapping up now so I start my day by looking at the S&P 500 always the S&P 500 I’m also looking at the Nasdaq 100 so I’m getting the feeling of what is about to happen today what should I concentrate you know me I prefer going for the short side right I prefer shorts works better than longs you know fear is working much better than greed and stocks are coming down 85 percent faster than they’re moving up so that means that your chance to have a short winner is better than to have a long winner anyway the market’s moving up I should concentrate on stocks that are moving higher I’m looking for long opportunities I posted a few of them one of them was Tesla I think I posted five or six long opportunities anyway one of them was tesla because it was on the list that’s it now i do have my own list as well stocks that recently moved up stocks that recently i liked the daily i couldn’t really find anything interesting there today so i concentrated on the top 20 list and if you so again if you’re wondering how i’m looking for my stock that’s it it starts there so i’m first thing i do is i’m taking a look at the s p 500 and i’m looking at the beautiful upside gap uh the fact that we’re moving to a new all-time high we started at the new all-time high and then i’m looking for my picks so i’m looking at tesla and again that’s the tesla’s daily now if you take a good look at this red candle you can see that i did think tesla should move up today why several reasons first of course the market was moving higher second a lot of people are noticing tesla it’s a big company you want to trade stocks that a lot of people are noticing because you know as technical traders it doesn’t help us to be the only one who’s looking who are looking at the stock and thinking well it should move higher that nobody cares about us unless you nobody cares about this trade unless you have a lot of people thinking the same way as you die you do i mean the whole idea of technical analysis is a self-fulfilling prophecy really because there’s a lot of people who think that the stock should move up therefore you will have people helping you so you look for a stock that you think should move up and i’m taking through the s p i’m getting the feeling that the market should move up now i’m looking at tesla tesla’s gapping up so what happened recently in tesla well tesla was under a lot of pressure it did come down but then look at what happened it popped up again moved up now i have a higher low you see i’ve got a higher low than this one recently lower lows lower highs now i have a higher low and it seems to me like tesla is about to break over this recent tire and move i still believe so i mean technically tesla right now to me it looks like i mean possibly a good swing trade i don’t know to me it looks like tesla is likely to move higher but anyway it started even better than what it is right now because tesla’s now is down but it started with the gap up today so i look at the daily pre-market time and i figure well tesla should be noticed by a lot of people um i personally like the trading tesla my success rate in tesla is idea if i if i dare say around 90 probably 80 at least anyway i do have a high success rate in tesla so i’m looking at the supreme market time and i’m saying wow market’s moving higher tesla has like a turning point here a lot of people are likely to watch it let’s try and find an intraday entry in tesla so it all starts with looking at the daily now i’m moving to the intraday i’m going to the internet these are one minute canvas now i’m showing you the s p in one minute kendra’s here um i do not i do not uh trade the s look at the s p in one minute candles i always look at five minute candles which you should too because institution traders are only watching five indicators but you know just to have them one in front of the other i’m just using the s p with one minute candles now i do start by trading with one minute canvas because you know it’s the first few minutes so that’s the best i can see when i’m trading a stock at the first 10 20 minutes or so i rather trade it with one minute canvas and but i see i keep watching the s and p in five minute candles so i’m watching the s p starting with a significant gap uh nasdaq as well starting with with the gap and i’m watching the s p first trying to move lower you see the first red candle over here and then if you take a look at tesla you can see the tesla also started by moving lower that’s okay because it it started with a big gap up it’s likely to have some kind of a downside pressure the s p is also likely to have some kind of a down south pressure in fact i was expecting a little bit more than that but then the s p uh stops start moving higher now you look at tesla stopping after the s p stopped you know the s p is our crystal ball whatever happens in the s p is likely to happen in most of the stocks i mean 60 of the movement of the stock intraday comes from the s p 500 that’s because the s p is followed by these issue traders institutions traders are the ones who are having uh 80 of the volume in tesla and all the other stocks over 3 000 stocks who were over 10 dollars and over 1 million shares a day volume a day they have around eighty percent volume of institutional traders so us we don’t we with a small part of it so now i am starting to see the s p starting to move higher and i’m saying well tesla should move with s p the pressure during the first few minutes is fine no problem but then it’s likely to move higher i took my first trade right over here i went along with tesla so you know it was a failing trade that was my first trading test i had to move out sadly tesla moved under the laws took me out and then moved higher you see sometimes it will have supported the laws i had no choice but but moving out of tesla when it moved out under the laws that was the right thing to do it was also the right thing to move in i failed but i did not do anything wrong technically i was looking at the market pre-market time i figured the market should go up i wasn’t wrong about that i was looking at tesla pre-market time i figured up well tesla is up zero point actually i don’t know what it was much higher in fact so tesla was up and i figured out tesla should move higher came down with the market a little bit it was a bit late to respond to the market the market did move to a new high you would expect a tesla to move to a new high too you look for reversal you go long you know we’re doing this kind of trades in our trading room i don’t know how many times a day we’re doing that most of our trades will be successful tesla failed do i feel i’ve done something wrong no definitely i do not feel so anyway i was looking for my second trading test not necessarily in tesla i was looking for a lot of stocks different stocks now you can see that the slp kept to the highs came down a little bit at that point i was a little bit suspicious about what the sop is going to do but then came a green candle and i felt like well it’s likely that s p would move higher it did so but a little bit later and look at what happened at the same time in tesla tesla failed to continue lower started reversing sometime during that upside move i decided i should move back to tesla and i took the same quantity that i moved in at the first time i don’t want to talk about quantity but let’s just say you trade 400 shares and that’s your i would say 400 shares for the average trader it’s too much let’s say you trade 200 shares and you took your first trade with 200 shares and the second one i believe should have been traded with the same quantity why it’s still early tesla look to me like it’s about to reverse again and move higher i was right this time this was my successful trade in tesla and at that point it was still rather early the market was touching new highs bouncing back trying to move higher again look to me it’s going to continue it did continue but a bit later and anyway at that point tesla was again a bit late to respond but uh as you can see once tesla moved under the lows the market kept to the highs really it was right over here you see that that was the point if you take a look at the point where tesla was under the lows it was 9.

40 now if you take a look at what happened here at 940 that was right over here the market was touching new high tesla had no business coming down there really seriously it had no business going down unless something exceptional would have happened to tesla well i was looking at tesla and i i couldn’t believe that tesla came down and i i did think maybe it was just you know one big seller several big sellers of course interest it’s just not one big seller they just one pixel probably couldn’t drive tesla down but anyway i was thinking well it’s exaggerated it’s too much the market was keeping to the highs and well i saw this reversal and i felt like well tesla is very very likely to move up and move over the highs i took a great rate in tesla which was much better than the the losing trade i had here so i was nicely green in tesla after two trades so at that point i was green in tesla then came my third aid now i can argue about my third trade in fact i want to argue about my my third i want to think a little bit with you about what happened right there because that’s a little bit more tricky now what happened there it first first it was a little bit later so you see that the market was moving sideways then the market decided that it wants to move uh it wants to move higher look at this area over here somewhere after um that’s at around 10 15 you see that area 10 15.

that was the point where i moved into tesla once more at around this point why the s p was moving to new highs tesla was once again trying to move higher came over this level over here looked to me like it’s very very likely to move higher and the market at that time was moving to new highs so i did have the support of the market i thought i could have another trade in tesla but i was experienced enough to know that at that point after having two trades in tesla today which is too much i would say i mean normally i don’t have more than two trades i mean if i would have two trades in a stock that would be kind of special uh it happens it happens quite a lot but i i normally just have one trade in in the symbol i’m trading having two is not normal having three you know when you come to the point where you’re having a second trade you need to realize that normally your second trade which did not happen today to me gladly but normally your second trade your chance to succeed are much lower so if i would ask you if i would uh if i would ask you you’re very welcome to write down your percentage uh rate for the second trade uh i would ask you what would be your success rate uh taking a second trade let’s say your success rate in taking your first trade is i don’t know 65 assuming you’re a good trader what would you guess would be your second trade success rate i say my first trade my success rate my average success rate is around 68 if i would have to think about what would be uh my second trade success rate it’s definitely under 60.

um i dare say it’s over 50. i dare say it’s over 50 but it’s it’s not even close to my to to what i do with my first aid i mean the same symbol i’m talking about the same symbol so i’m looking at your uh at some of you guys who dare share your opinion so uh 30 percent matt says and uh nevin says under 50 percent uh lower than the first um girl girl yeah well you know right so anyway our success rate taking uh taking the second trade is is is is definitely less why do we do it why do we do and i do it and i do it first i believe my second uh trade is over 50 but maybe i’m a little bit more experienced than you guys okay why do i take my second trade um and what should i do about the quantities that the topic of our lesson and we’re gonna talk about it really soon so why do i take my second trade i normally take my second trade while you say revenge interesting uh that’s one of the reasons right i mean you know i had i had a losing trade i i’m looking at tesla and i’m i pre-market i prepare to that trade i was ready to make money today in tesla i was looking at the slp the sp was moving out nothing wrong tesla came under the laws well it shouldn’t have done that the s p is at a new high why what happened there so i’m over occupied thinking about tesla and probably in the back of my mind i’m looking also for some kind of revenge yeah i mean definitely i have it in the back of my mind i would never agree i would never admit it no way i’m not gonna admit it but somewhere in the back of my mind yes it’s it’s right there you know one of the sad things about traders is that we only have around seven percent or so uh female traders and you know female traders don’t have this normally they don’t have this issue like men does do that’s one of the advantages of female traders and i found out that on average female female traders are doing better than men of course not all of them succeed but but normally one of the one of the things that they don’t have in the back of our mind is revenging a trade well i guess they do as well as as as we do as men does but probably a little bit less than men so they do have some advantages and that’s just one of them okay so now so i’m thinking about tesla i’m i’m occupied thinking about tesla i’m trying in a way to force a second trade my second trade is something that i’m kind of forcing i’m trying to see okay so what could happen if i take it here or there and i’m in many cases i’m just imagining something that is not there now i i can’t say it happened to me today well the fact is my secretary was very successful so maybe i’m a little bit more experienced but you need to keep that in the back of your mind you need to always think am i really taking this second trade because i’m trying to revenge my first trade or because i’m over occupied with tesla just watching it too much which i shouldn’t because there’s plenty of fish in the sea there’s so many stocks out there that you can trade you don’t need to to look at tesla all day long so are you over occupied with stock you’re taking are you trying to revenge your first trade or whatever reason uh you know normally you don’t really have the support of the market and you don’t really have the right technical support in the stock that you’re trading for the second time but you do take the trade and the reason that you are traded taking the trade is because for the reason because you you just watching it too much or you want to revenge it or whatever and that’s one of the reasons why your second trade doesn’t have the same success rate as your first trade so what is the solution if you’re just starting out of the trader the solution uh a very simple solution would be just don’t take your second trade never well if i would have really realized that when i started out as a trader i would probably have a bank account higher at a few hundred thousand dollars i’m not joking few hundred thousand dollars so right now at that point if i would have totally eliminated my second trade in the same symbol when i started out and when i say started out i’m talking about the first five years i’m not talking about the first few months i’m talking about several years because i the point where i got to the po when i got to the point where i believe i had more than 50 percent doing my second successful trade in the simple that probably took several years i’m not sure it was three or four or five but you will feel uh when you got when you come to the point where you can trust your second trade it will take you here so the best advice i can give you just don’t do your second trade you shouldn’t care if i take my second trade you should i to start with i have a lower percentage i admit it so should you take the second trade well i’ve i believe even if i take my second trade you shouldn’t definitely don’t decide by yourself to take a second trade and again if you feel like you’re experienced enough do it now i i do know a lot of people who are just trading are just one single traders they only trade one symbol they feel like they know it so another reason why you take a second or third or fourth trade is because you feel like you know the stock you feel like you you you we call it get married to his talk and i have to say i have to admit that in this point in my life i feel like i got married to tesla a little bit i mean i’m i’m not married yet but let’s say i’m dating it too much i’m not dating enough girls anymore i’m dating tesla too much at that point i’m having a tesla trade every second or third day or so i believe like i’m exaggerating in my relationship with tesla i i did have some very bad days recently with tesla i had one terrible day my worst ever trading day happened last month last month just two days ago was march so at the beginning of march i i lost 200 something thousand dollars that day and that was due to the fact that i probably although again i don’t admit it i got married to tesla so i felt like i’m having this amazing percentage uh success rate in tesla and i got a little bit cocky a little bit a lot and i had my worst ever trading day well do i still in green in tesla throughout the last year or so absolutely yes it was my favorite trade still is my favorite tesla and you know i think i’m still doing well but i need to reconsider my relationship with tesla my relationship is tesla is just too much close right now so needs to be considered again so anyway uh that’s one of the reason why you guys mito included are sometimes getting too close uh too deep into relationship with the stock we feel like we know what is it about what it is about to do we feel like we understand it which is totally foolish we don’t we normally don’t well maybe more than other stocks but but definitely uh that feeling that we understand it is to start with very bad because we we when we start thinking about what what what’s going to happen we we we make excuses to go long or to go short and and we feel like we know what is about to happen and we convince ourselves that this is really the fact that the time where this is going to go up or down and let’s say it comes down and we think we need to average down our loss because it’s more likely to move higher or whatever i mean we convince ourselves that we should do a b c d and that’s why we have what i had last month a terrible day in tesla so because we get carried away uh for example i i i was shorting tesla if i remember correctly my i do remember correctly my worst day in in my training career last month so i was shorting tesla as it was uh trending higher definitely i was looking back and i was saying what the hell did i think was happening over there i just felt like i’m like the i don’t know the the tesla whisperer or whatever i would call it so anyway i i took my third tesla to trade today did i do right well there were several reasons why i took my third tray tray today one of them was i’m say i’m sorry i have to admit it i was bored i was uh kind of without the trade for several minutes and i was kind of getting bored and there’s nothing like a trading tesla to you know to uh to make you feel uh uh kind of you know more active and so i was looking at tesla i didn’t think i’m doing the right thing if if we take a look at the point where i i i went along tesla again that was right over here so that was the right technical formation it was uh the market was uh was uh at that point was uh was looking good i mean that was 10 15 or so that’s right over there the market was at the highs tesla was probably i thought could challenge the highs once more and again tesla started with the gap up it is at that point uh trending higher so i it looked to me like the right rate but taking a third trade in tesla probably because i was a little bit bored i was green at that time i finished my day in red today but i was green at that time uh my second trade in tesla and i had uh what did i had as i can microsoft put me in green territory so i was green at that time and i decided i’m going to take a trade in tesla uh in fact i took two trades one in tesla one in zm both of them um finished in in red so at that point i took my trading tesla now there’s just one thing i did right and again that’s um that’s how i started today that was my topic of my the topic of my lesson today the only right thing i did about taking this tesla along was the fact that i took it with a relatively small size i took it with like uh third i think it was more than a quarter i think it was third quantity or a third or so so i i took tesla with um less size because well maybe i was a little bit uh uh understanding the situation i was in maybe i i realized that i was a little bit bored did i support this trade yes i looked at the technical formation of the of tesla it looked to me right i looked the s p 500 at the highs it looked like the right thing but i was clever enough to add small size i also mentioned it in the trading room i told you guys taking this trade with smaller size the reason i said that was uh because i personally realized that i need to reduce my side my size and then there’s another wall here which is very very important if you have a successful trade and at that point i was really interested after two trades i was green in tesla because my second trade was much better than my losing first rate so i was getting a tesla and i calculated where the stop should be in a way that i calculated my size in a way that whatever happens tesla would finish in green and that was the final result i did finish my day up in tesla five thousand dollars but i was at around fourteen thousand dollars in green in tesla earlier after my second trade so after my second trade covering my loss my first trade loss and then making some money i was up fourteen thousand dollars i finished around five thousand dollars it’s on instagram i can’t remember exactly the number it was around five thousand dollars i finished uh i i finished uh in tesla in i’m sorry after the first trade i finished in green 14 000 after the second losing trade because it as obviously as you can see it started trending low and i moved out after my second trade which was 30 sorry which i had a loser i still finished in tesla at around 5000 so i did the calculation well i was really hoping not to uh go down more than 50 of my profit so i would my target was to stop it at the point where i would lose up to half of my earnings in tesla i was up fourteen thousand dollars i thought well if i get to around seven thousand dollars i calculated my my quantity i will be out uh of the tesla trade and that’s a calcul the the the quantity i took and sadly tesla my third tester trade didn’t finish in green and i did lose a little bit more than i expected so i came down from 14 000 to 5 000 and since zm was also a losing trade then i finished in red both of them together that took me back to the territory because i was up after my second tesla trade so anyway the the thing i wanted to uh to emphasize here is the fact that first if you’re just starting out please don’t take your second trade in any symbol seriously just don’t do it and uh second thing if you do take your second trade or your third trade as i did always think why are you taking this trade i mean just probably have some kind of uh of a list of a checklist that uh says is that a revenge trade mark yes or no is that do i have a real technical formation yes or no what’s the s p doing s p supporting this trade yes or no am i losing money in this trade that’s why i’m taking it yes or no am i am i am i like in my in am i like in my normal senses or whatever i don’t know just have a list of things that you want to write down and figure out if you’re doing the right thing by taking the second trade now i’m talking about the third rate and it’s kind of same as the second trade because it’s you normally shouldn’t take the second trade but if you do take the second or even the third rate as i took today in tesla now anyway second or third rate if you do decide to take it if you if the checklist is all yes yes yes yes i’m normal everything’s okay if if you cut to that point and you’re taking the second or third trade now think about your size that’s the only clever thing i’ve done in my not really but it’s it’s one of the best thing i’ve done today with tesla is the fact that i reduced my size dramatically in my third rate you know when we take our second or third trade again we are probably not in the same uh um we’re not where we were when we took the the first trait as i mentioned for several reasons we need to realize that only for that reason you need to reduce your size only for that reason it’s a good idea that you should reduce your side only for that reason second thing i have a rule i never risk more than around 50 percent well i i do like today i risked 66 or so i did come down a little bit more but it happens you normally should look for the point where whatever you do with your second trade in the symbol or third like it happened to me today you do not risk more than 50 percent of what you earned in the first race so i don’t care what your risk reward rules now how much are you willing to make or lose per trade what is your risk reward one two one one two two and how much your maximum loss per day per trade whatever just look at what you earned in tesla or whatever trade you took and don’t risk more than 50 percent you need to realize you are not in your normal senses where you’re taking the second trade you you are biased uh even if you do not agree with this or you do not admit it you are biased you’re not your normal self at that point and even if you think you are you’re probably not and your success rate you admitted that earlier some of you did that earlier is not as good as uh your first trade normally and there’s a very big and important role that all of you should know and that’s a very important tool for traders if you put some money in your pocket you never take it out you just never take it out just remember this hole it it applies per trade really does not apply per trade it could apply per day but definitely per trade if you earn some money in tesla you can risk a part of it you never risk it all now does it happen to me that i sometimes go over this hole i’m human of course i do if i just look back last month my worst day ever i i broke several of my rules that day but if i look back at my trading career i do less and less mistake throughout time so i i don’t do the same number of mistakes i used to so i’m telling you about the rule that i will probably break myself but i will not break it as many times as you will because you’re probably just starting out as i started out you’ll make more mistakes that i like i did so remember this wall you put some money in your pocket don’t take it out it’s important it’s it’s it’s not legal you’re not supposed to be taking it out you want to take some of it out fine don’t take it all out it’s the same like averaging down you put you you’re risking of taking all of your money in fact all of your account just don’t do that just don’t do that i got an email uh not an email was it uh no no i got a chat today in the trading room maybe maybe one of you guys i don’t remember i don’t remember the name really right now but he wrote to me um something that touched touched me i mean i enjoyed reading what he wrote he said he was trading few years before he joined us and he was always averaging down his losers and he was normally in red and once he joined our trading team he’s in our trading room maybe it’s one of you i don’t know he he stopped losing but but just by dropping these bad habits so he had some bad habits he realized that once he joined us and that’s exactly what i’m talking about right now i’m talking about you know throwing these bad habits uh adopting habits that will help you so think about that you earn something in the stock the money is in your pocket don’t take it out take some of it out fine calculate your your new risk according to what you earned in tesla and i did that it was not perfect i wanted to reach the seven grand i risked a little bit more than that but um and result i finished in green and tesla and i’m i’m looking back and i’m i’m kind of proud that i’ve well i’m not proud of my third rate but i’m kind of proud that i at least that role i kept it and it worked out fine because you know my my third trade would could have been disastrous in just life i would have done it with my same quantity i did the earlier trades it could have been disastrous um so i guess that’s it that’s the only thing that was my only uh two cents for the day so if you have any questions you probably have already written some so i’ll i’ll read some of your questions right now and see if there’s something there that we should continue and talk about let’s see if you have any questions please write them down um yeah the volume in the opening is very very important so it’s it’s a you know it’s it’s always a combination you know you take your second trade and you or you take your third trade it’s not just the fact that it’s a uh maybe a revenge trade it’s also the fact that you know stocks are moving less as time goes by then you don’t have the volume of the opening and everything so yes there’s a lot of things that are playing against you it’s not just the fact that you are revenge trading okay do i still document my traits for feedback no i don’t i did it for years i think it’s extremely important but i think it’s extremely important to document your trades to have to write down your trades to follow them to write down what you think was why was the reason that you lost money why did it happen that you made money what should have you i mean write down your remarks from the passing day and everything per trade per day and so on extremely important tool for you to understand what you’re doing right and what you’re doing wrong of course what you’re doing wrong is more important what you’re doing right but both of them are important this is extremely important tool uh just that you know after 10 years i stopped doing that i did it for like 10 years which was extremely important and i did that and i think it was one of the best tools i ever had um well i i don’t think i did it as as good as i did it in my first i don’t know three four five years but i kept writing some remarks afterwards and then up to around 10 years i kept writing remarks i don’t do it anymore tell you what the the again the number of mistakes i do today i don’t really have to write them down i just i don’t do so many so i kind of remember what i did the number of mistakes i did when i started out throughout my first years was a lot i i when you’re trading i’m sure you realize by the end of the day you can count i don’t know five six seven eight ten mistakes on my average day i can count one i do count at least one but i it’s not too many to remember more questions would you have made would you have made the tesla trades if you did not know the name of stock uh good point howard uh good point you know tesla is expensive uh it has a very specific characteristics um spread wise um the point where people are jumping on board and pushing it up like what happened when when i took my second trade and so on so it has special characteristics i i don’t think i can your question is very good if it was not tesla for tesla it’s it’s kind of special but um that’s a good point and i think um the answer is uh i don’t normally take a second trade in a stock if if it’s not tesla okay i mean sometimes when you have a stock that is a big big mover i would take my second trade but if it’s tesla i feel a little bit better taking my second trade i think my second trade in tesla probably has a more than 60 success rate compared to other stocks where i have less but again i have to be very careful about this conclusion that i just said how to avoid over trading you know it’s it’s just a matter of discipline you need to you need to you need to set up your number um you set up a number and just decide that you’re not going to over trade i believe uh there were there was a long long time i remember myself where i had a rule that i’m not going to take more than three three trades a day so i i had the rule and and i was training more than i was trading more than one and a half hour back then so i i had a rule i’m not going to take more than three days trade a day and then i had the rule i’m not going to take more than four then i had the rule i did not only take more than five so you just need to set up the number i believe that if you’re starting out at the very very start you shouldn’t take more than two at the very very start but then later probably not more than three so just set up a rule it’s a lot of discipline it takes a lot of discipline over trading is just pure discipline so there’s no wall out there other than you know ask somebody and ask somebody to get into your home and put you in handcuffs or something like that but really seriously it’s just pure discipline so i also answered the question of how many trades i took per day of course i had my days where i over traded and so on like happens to everyone you trade too much oh you take a lot of trades in the trading room can’t just control yourself uh well i can tell you a story about the guy i made several years ago um he was with us in the trading room for several years and he met me and he said something like well mayor i’m trading for three years or so and i’m constantly losing money and i’m taking every trade in the trading room i’m taking your trades coach trade this trade that trade every trading thing i heard that and i had a rush and i’m feeling the same like what you’re saying right now um because you know if you if you if you’re starting out as trader if you’re not making money as a trader you need to find out what is your your system you need to realize what is a system you should be trading according to you need to come out with your own ideas of what kind of trades do you take do you take like gap ups do you take get downs uh do you take gap and girls do you take reversals do you take breakouts uh and and within this territory even if you decide okay i take gap ups okay fine gap and goes whatever within this neighborhood you need to decide exactly what kind of trade you take um so a system should be a very limited to number of trades that you can take if you just trade all over the place uh like this guy who mentioned i’m taking everyone’s trades then he’s trading these guys taking trades which uh is according to scott systems my systems and other idle systems he’s like mixing up so many systems in together look at myself how many trades do i take that scott posted in the trade room and the same for scott how many trades does scott take that i’m posting in the trading room i mean if i’m trading if i if i would take five trades in trading room on average maybe one of them will be scots maybe why because i have my own systems he has his own systems he trusts his systems better than trust my traits and that’s that’s the way it should be and when you’re trading with us you need to develop your own trading system up to the point where you no longer take mind of scots unless whatever i post falls within your category of your systems and then you take your own trade feeling very good about the trade that you picked uh be maybe because i picked it first but but it it is within your territory of uh of your systems so you you just need to go through this you need to go through this just don’t you don’t don’t gamble just pick up a strategy uh develop your system and and master it you need to get to the point where you know exactly what you’re doing and you’re mastering some kind of a system it’s extremely important i don’t know why the s p did not stay up together or change directions or whatever really i don’t have no idea there’s a lot of things i don’t know well traders let’s summarize it here this um mentorship is over now but let’s just summarize it very quickly first thank you for being here with me so i really enjoyed your company and i hope we talked about something that could help you guys uh if i need to summarize this lesson i would say the following first don’t take your second trade same symbol if you do take your second trade have a checklist make sure you’re not doing it for the wrong reason i would skip the checklist i would just suggest don’t take the second trade seriously just don’t take the second trade you may see me taking a second trade in the trading room my the first thing that comes into my mind that’s why i think i’m helpful for most of the time in trading moves because i trade my own account if i’m trading my own account the way i think i should trade then i’m genuinely trading the way i should be trading and i’m not adopting myself to your environment some some traders complain they say they think i should trade small quantities show you the way by trading the same size that you do i don’t i need to trade the way i believe i should trade and that’s war and and that makes me a a better trader and i believe more as as long as you know my quantities and the way that i’m trading i believe i’m more helpful doing that i think i’m doing but if i’m taking a second trade and you’re thinking about joining me taking the second trade as i just mentioned you shouldn’t maybe i shouldn’t take my second trade and just help you guys you know make it easy for you so you will not follow me in my second trade well i think i should do what exactly i should do with my account and the way i trade because i think i’m more helpful this way building myself as a better trader but maybe you should have a role that you shouldn’t take a second trade no matter what doesn’t matter if i take it or anyone somebody else taking it or you decided by yourself that you should take it if i need to summarize this session i would say this is probably the most important lesson today but then there’s another lesson if you have decided if you do have a checklist and you have decided that you uh uh mentally uh right and you show that you are fine mentally and uh do not need to be hospitalized or anything like that and you do decide that you want to take your second trade uh and you passed your checklist hopefully you have one then think about your quantity think about your quantity the the the the first thing that should come to your mind if you don’t have the time to calculate exactly how much is half quantity start with half quantity start with just half quantity of your first trade so that should be this is the first thing that comes into your mind now again if you’re experienced if you know what you’re doing if you feel like something special happening there’s a lot of if and then that couldn’t happen but taking a second trade should normally not happen if it does happen and if you feel like you pass the checklist definitely lower your size dramatically you put some money in your pocket don’t take it out be ready to put out take out only a part of it and that’s it that’s the way i would summarize this lesson so thank you guys for joining me have a great evening and i’ll see you all next week we’ve got a good friday tomorrow so enjoy your long weekend and hopefully yeah let’s meet next week and do some money together thank you guys bye.