+$45,546.52 TODAY with the 30 Minute MACD Scalping Strategy transcript

in today's episode I'm going to give you an in-depth guide into one of my favorite strategies this is the macd TR strategy it's a great one for beginner Traders because the goal is to lock up profit within a 30 minute window the idea is that there is a small period of time when the price action is the cleanest and that's the time when you have to be as aggressive as possible to lock up your gains and not overstay your welcome right now we're in an incredibly hot market and although some of you may watch this weeks from now months from now or even years from now when the market is different trading the macd strategy for me has been like my bread and butter it has been a go-to strategy through bull markets and bare markets alike so let's go ahead and jump into the screen share and I'm going to pull up my slide deck here for um for this class and I want to highlight my profit loss from today this is real money and what you can see here here is that I traded about 12 different stocks and locked up a total of $45,000 66542 this right here is my biggest green day of the year and that's why I wanted to celebrate it by teaching you guys this special class and what I can say is that I feel like a lot of you guys right now are over complicating it we're seeing some really nice clean moves but you know what I'm seeing a lot of you guys do I'm seeing you under Trade the beginning of the the move and then overtrade the backside and manage to find yourself red on a stock up 500% how many of you have experienced that in the last week well just in the last two days we've had three stocks that went up over 600% so these are some really big windows and we got to really think carefully about how we're going to trade when we have this kind of price action now whether you trade Forex currencies you trade uh cryptocurrencies you trade futures or you're trading stock like I am we focus as active Traders on trading volatility right we don't make money buying something at five and selling it a few minutes later at 5 we want to buy something at 5 and we would love to sell it up here at 10 now getting a 100% return in you know 5 or 10 minutes that might not seem very likely but when we start going over some of the charts and some of the price action that we've seen just today you will realize that there are moments in the market Market where we see extreme volatility and we see really big emotions there's no question that many of you are familiar with GameStop and The Epic short squeeze that took place on that stock well everything that we're seeing right now it's kind of on a smaller scale from Gamestop but it's that similar degree of emotion in the market right now there's a lot of excitement there's a bit of fear the fear of missing out and there's a bit of greed people wanting to capitalize on the next stock that moves higher and so learning how to be a successful Trader requires an ability to read the sentiment that is in the market right now I think I did a great job of that today my leading the stock that I made the most on was a and this stock actually went up over 600% today it was our leading percentage Gaper our leading percentage Gainer so let's go ahead and jump into the full screen um here we're going to start this class those of you guys who are tuning in uh to this class this is perhaps one of the first you've ever watched me teach my name is Ross Cameron I'm a full-time Trader I've been doing this for more than a decade in fact I created this YouTube channel in 2013 11 years ago is when I started uploading content here so if you enjoy episodes about trading strategy like this I hope you hit that thumbs up and I hope you subscribe to the channel and what I'm going to do to correspond with this class is I'm going to give you a PDF download it's going to be linked in the top of the comments and in the description where you can actually download my small account strategy as a PDF F download it print it out and start practicing it on your own but as always I'm going to remind you right now that my results are not typical trading is risky and you should always practice in a simulator before you put real money on the line I wish I had done that when I got started but like a lot of beginner Traders I jumped in to the deep end and I ended up losing hard-earned money so don't make that mistake okay so we're talking about a 30 minute scalping strategy and a 30-minute profit window this is a perfect example here on a from today so this is the stock in the background you could see that um this is the chart where it went from about $2 a share all the way up to $112 a share and I locked up just under $330,000 of profit but you know what there were Windows when this stock was clean and this was the right stock to trade and it was the right time to trade it the windows were when the Mac D was positive so I've highlighted them in blue this window right here was the first and this window right here was the second on the first window right here I did well in fact I did quite well I made about $118,000 on this profit in this like window right here so this is our first 30 minute profit window I locked up 18,000 but I gave back a little bit off the top we went sideways and then through this window here I scaled up and this is how I got myself to up $30,000 on a so these were our two windows where I felt comfortable trading and it was based on the macd okay okay so let's get into a little bit more detail about what we're going to cover in today's class so we're going to talk about the definition of macd I'm going to show you how to configure macd on your charts I'm going to share with you my macd trading strategy I'm going to tell you the tools that are required to trade this strategy side by side with me I'm going to tell you the skills that you need to learn and I'm going to share with you at the end of this episode some recommended reading a recommended reading list for those that want to keep learning okay so let's start with number one what is macd macd is a technical indicator used by active Traders so essentially most active Traders like you and I are going to be performing technical analysis technical analysis means we're reading Candlestick charts so I'll pull up uh my Candlestick charts here in the background so we're reading Candlestick charts we're analyzing the different patterns the the shapes of these individual candles right here and we use different technical indicators to help us interpret price action now this is of course in contrast to Big investors such as a Warren Buffett someone like Warren Buffett is not performing technical analysis he's going to be performing fundamental analysis so what he's doing in contrast is he might see a stock like a and he says um a if I want to buy this entire company today what am I buying what am I getting and he's going to pull up um the SEC filings on a and he's going to look at their quarterly earnings and their annual earnings reports and he's going to try to find out what's the value of this company and how does that compare to the current price that it's trading at and so he's of course a value investor um there's many value investors like him um we've got um Bill Graham and Peter Lynch um this is um a book by Peter Lynch he was the head of the mellin fund at Fidelity Investments during the 90s and really uh incredible value investor I've got another book by Benjamin Graham over here but in any case um the the concept of value investing is to try to find something that is really trading far below its actual Book value and as an active Trader you and I we don't end up focusing a lot on that because while fundamentals matter in the long run what we know is in the short term prices can become very disconnected from fundamentals both to the upside and the downside in fact we saw both with GameStop we initially saw that it was trading at a fraction of what was really its fair market value back in 2019 and 2020 before the short squeeze began at that time GameStop was doing $6 billion doar a year of gross sales and the market cap valuation of the company was $250 million they're doing billions of dollars a year and they're only valued at$ 250 million which means if you bought the whole company you could have bought it for 250 million and then now at this point it's trading at a multiple well it's trading it I think um it's it's doing about5 billion of uh Revenue but the market cap is now like 11 billion so now it's kind of flipped to the opposite side it's very uh overbought so for me what I'm doing each day is I'm looking for stocks that have the potential to show us these really big ranges and give us these really big moves because as I said I don't make money buying something that's going sideways there's a million stocks in the market not literally but there's thousands of stocks in the market that are going sideways on any given day there's only a handful that are doing something really special so as an active Trader I'm going to use technical analysis to help me better understand the context of the current price because if you said Ross I I found this stock that looks really good and it's $3 a share I would say okay well give me the context of that is $3 the all-time high of the stock or is it the low of the last 52 weeks right put that price in context and the chart is what does that the chart is what gives me the context so macd it stands for moving average convergence Divergence indicator right here macd it's an acronym and it's an oscillating indicator that's designed to visually to give a visual communication of changes in Trend so what that means is when we actually look at it on a chart and I'll pop my chart up right here the macd I have down here um at the bottom so this is macd right down here and you can see how it oscillates which means it's going up and then back down and then back up and then back down and then back up and then back down and so when it's trading up at these extreme levels here the stock is going to be very extended and when it's very week the stock is going to be pulling back so one of the things that a lot of Traders will focus on are these shifts from extremes so from extremely overbought to oversold overbought to oversold and looking for those curls off the low and what's kind of interesting is that to a certain extent even without looking at the Candlestick chart you can kind of understand what's happening with the Candlestick chart when you go get good at reading the macd you can clearly see here that we had an initial move up a pullback and that we moved higher and then you can see that weakness came in and we came down quite a bit now this would actually make it look like we came down lower than the initial move and that's not correct so it's not to scale but it does show these large shifts in sentiment which is exactly what we want to see SO trading when the macd is positive is far far easier for me than trading when it's negative and this is like one of the simplest things that you can check as a beginner Trader so if you're pulling up a chart and you're thinking oh this this is something I might want to trade one of the first things I would do is check the macd so right here for instance if I pulled up this chart I'd be able to clearly see that the stock is selling off but unfortunately in the last couple weeks especially the last few trading days a lot of Traders have looked at this and have thought you know what it's a strong stock generally speaking this is my opportunity to buy a dip buy it when it's pulling back for a curl back up and what I would argue is that you are overtrading the backside of the move so something I want you to help uh I want to help you understand is uh and just important Concepts to know so important Concepts to know so we've already covered um technical analysis versus fundamental analysis now I want to talk about front side versus backside all right now I don't like to trade the backside trading the backside is BS it's back side we don't like the back side why is it well what I have found is that when you're trading the front side of the move that's when you get the most action okay so what is the front side the front side is the beginning of the move as the stock is stair stepping up once it begins to go sideways we may be getting ready to stair step down so stocks essentially they're they Trend and so I'm going to erase this this is from a class yesterday that I taught so when the price is moving up like this we're trending up and when the price is going sideways like this of course we're you know we're trending sideways and when the price starts stair stepping down we're trending down so there are two different styles of trading you can either be a trend Trader which is also known as a momentum Trader a Momo Trader or so this A or B you could be a counter Trend Trader um uh which is also known as someone who's always angry and frustrated and has tears running down their face the reason is because trading against the trend is really hard it's so much easier just to trade with the trend then to trade against it when something is trending up and it's stair stepping up you get this predictable price action and what you look for is to buy these pullbacks and to ride the next leg up buy the pullback ride the next leg up ride the next leg up and then once we finally get the first candle that makes a new low and we step down now right here the trend has changed and we step off traders who are trying to trade the backside of the move here to the upside looking for the the reversal are going to struggle traders who are shorting who are looking for the reversal coming back down are also going to struggle because these can just continue trending Higher and Higher and Higher and it's it's just a lot more difficult for a beginner to be able to understand when the trend is exhausted and it's going to roll over what's more common is that beginner Traders try to predict the reversal of trend buying something that's really weak thinking it's going to turn around and just goes lower and lower and lower and the problem problem with this is that the lower it goes the more they feel like it's a good deal to add more shares because the price is even lower and they get into the habit of averaging down so now the stock or whatever you're trading is going lower they're adding more shares they're adding more shares they're adding more shares and sometimes we end up seeing such volatility that we'll see something go up 100% And then come all the way back down to where it was beforehand so it's like trying to trade as it's trading coming back down down expecting it to curl again is not the right move so for me I'm a momentum Trader all right I don't want to be trading against the trend so as a momentum Trader I want to be trading when we're stair stepping up stair stepping up like this now this area here we start to go sideways I don't like to trade during this sideways consolidation because ultimately even if you have a decent range from the bottom of consolidation to the top you're still more or less going sideways and when you're going sideways you know what's going to decline volume volume declines because Traders aren't really interested in trading something just going sideways they want to be trading something that's moving quickly so the problem is you get in here and then you have a hard time getting out if you need to because the volume has declined so then finally we break to the upside and this is where we're back in play the macd was positive it went negative and then comes back to positive and we squeeze back up right here so let's pull our slide deck back up here for a second so um so macd technical indicator moving average convergence Divergence indicator it's an oscillator the Crossovers are significant and trading when macd is positive is a lot easier for me than trading when it's negative so just as an initial gut check if the macd is negative which is from right here to here I'm not going to trade it so let me just full screen this here so when I say positive or negative this blue line right here is called the macd and the orange line is called the signal line let's go ahead and jump to the next slide and I'm going to show you how to configure this on your charts okay so I didn't mean to jump out of that but that's fine so the way to configure macd on your charts you can go to add indicators and you'll be able to do this pretty much with almost any uh trading software almost every platform offers macd it's a standard indicator that's been around for a long time time so in this platform there's this little FX button and then I can type in macd and I could click on it right there now once you click on it you want to make sure you configure it correctly so I'm going to double click this but I could also click on the little settings widget right here and I want to check the inputs the fast length is 12 the slow length is 26 the source is the close and the signal length is nine all right so these are our settings right here for the macd now um let me just make sure I don't think I I think that was oh and then the one other thing that I was going to note is that you'll see that this is on my one minute time frame so to get you oriented with what you're looking at here uh this platform is called day trade Dash this is the software that I've built out over the last seven eight years with my own development team and it has charts scanners Newsfeed and it has our chat rooms and my broadcast at Warrior trading so the way I lay it out is is I have four charts 1 2 3 4 and they're all for the same stock so this is a 10-second chart this is a one minute chart this is a 5 minute chart and this is the daily chart this right here is my little news window where I can see what the breaking news is on a stock so I have it set up like this and I actually only have the macd on my one minute time frame the reason it's only on my one minute time frame is because I am primar a One Minute Trader but I call this the 30 minute profit window because once the macd opens right here which was at about 8:46 it stayed open for about 30 minutes the reason I figure 30 minutes is because as part of my strategy and I'll show this to you uh as we get a little bit further into the class but just to give you sort of a a brief demonstration to help you understand why I choose this when a stock starts breaking out we'll usually get three four maybe five green candles going up and then we'll get a couple candles to pull back like this so each of these are one minute Candles now we're 1 2 3 4 5 6 7 8 minutes into the move so first entry could be down here and now we're 1015 minutes into the move second pullback is right here and then we're pushing up here and then usually what we find is the third pullback ends up being a false breakout and I'm not just saying that because I'm running out of the Whiteboard it's actually true so usually I find that I do the best trading the first pullback right here and the second pullback right here and not trading it up here and this is going to correspond with right here is where the macd opens and then right about here is going to be uh kind of where it closes so this is the window when it's open from here to here and generally for most stocks we have a window of you know about 30 minutes when we've got some really clean trading with look with some stocks it's a little longer with some stocks it's a little shorter but it's usually about a 30 minute window and that's the window to try to make as much money as you can before you get that first macd crossover once you get that first macd crossover for a lot of stocks that can be it you got one window it's crossing over and then from that point forward the stock is choppy it's not clean it's not easy to trade now as the case was with a we got a second window that opened up so it did make this first 200% move and then it goes sideways and then we get the second breakout here which was actually even bigger which is how I was able to have such a great day but then after that window closed we really didn't get another opportunity now you could say what about back here technically the macd went positive and you are correct it's a very um very good observation however let's go back over here we want to trade the front side of the move so the front side of the move means the stock should be making new highs around the time when we're trading it so if we were trading right here this is not going to be making new highs from this level down here so B in order for it to be making new highs of course it has to be way up here so even if the macd goes positive but we're not making new highs I would say it's no good so as the case turned out for this I initially thought it was possible that this was the top of the front side of the move but during this period of consolidation we were holding in approximately the top you know 10 15% of the entire move let's say that's 15% right there so when a stock is consolidating at the very top of its range that is usually bullish for a breakout to the next level and it's actually what we would call a bull flag that's forming now if you haven't already watched my episode on how to trade bull Flags you're welcome to check that out um after this episode it's another really good full length class that's right here on YouTube uh so anyway so up here the problem was this is the next leg up and if we measure it here from this low down here up to this high up here you know we've got a move from $5 to 12 but we pulled back all the way to seven right so we're down at like the 30% Mark we needed to at least hold the 50% line and we pulled back too much now some Traders will use um an actual retracement measurement tape to see what percentage it's pulled back I don't get that detailed on it this is for me is close enough but I can visually see that we've pulled back too much so although we got the crossover down here um the stock at this point was just it was not set up to make new highs and I felt like we were in fact on the back side of the move now the second stock that I traded quite well today was slrx so let's pull that up really quickly just to compare um these two charts so this is a stock that gave us a 30-minute profit window right around here and look at the incredible volume and that was it that was the window it was right here and then once we got that macd crossover right here you know it just pulled back now the way a macd crossover occurs and I I suppose to better explain how this technical indicator functions the moving average convergence Divergence indicator is measuring the distance between moving averages so if we looked at we'll zoom in here on this if you look at these moving averages right here the and we go into the settings here um it has two it's got the fast length which is the 12 and the slow length which is the 26 so these are the two moving averages that it's using and it's measuring whether these moving averages oops sorry are moving apart which means they're diverging and if they're diverging it's because the fast moving average is pulling away from the slow moving average and that happens when the price makes a rapid move higher so down here we could see and I'll just make this um let's see we'll go change visibility I'm just going to make this I want to just make it bold for you for a second um so we're going to make this one bold and we're going to make this one bold just to really help them pop so there we go all right so look at these two indicators these are both moving averages see how they're close together right here so right here they would be converged right so converging moving together diverging moving apart and the space between them got bigger and then it got a little tighter right here because we went sideways and you could see it got a little tighter and then it pulls apart and this was the biggest sort of difference right in there as the stock went from $4 to 650 so we get that big Divergence right there and then all of a sudden the price starts to come back down and as the price comes back down that fast moving average the fast moving average is taking the average price over the last 12 periods so when the price starts coming down that moving average starts coming down as well the slow moving average is slower to move so what ends up happening is the the is the fast one gets closer to the slow one and they converge so Divergence convergence and when they cross over right there that is a big big indicator that the trend has shifted so we got this crossover identifies a little bit sooner just because the way the macd calculates which is fine but that's the spot where I pay close attention we got a crossover so now the beginning of that window is closed and as the price goes you know pulls back in this area there's always a question of you know will we get another leg higher and in this case again if we look at the percentage of this move from here up to here we were holding about the 50% Mark until right here we broke down so when we broke down right there we were we were pre previously holding this level if you drew an ascending support line right around here we were kind of holding there we had a little bit of a descending resistance line sort of right in here and then we broke below it on this candle high volume selling because this was the moment where people said you know what I got to bail out I'm out this is not going to go so for me I would have been out much sooner because of the macd crossover that happened way back here so I traded the front side of this move as aggressively as I could I made $855 on it which was decent but considering it went from $2 to $7 it wasn't really that huge of a move or a huge of a game for me but nonetheless it was it was a solid green trade okay so now you also have a good understanding of what the macd is communicating so when the price is moving fast the macd is moving up when the price begins to slow down and even retrace the macd will also start to turn against and then eventually we get the actual crossover all right so let's talk about my macd trading strategy how I approach actually um executing these trades so my goal is as always to focus on aggressively trading the front side of the move before we have that first macd crossover because I don't know whether or not we're going to get a second leg to the upside in a really hot market like what we had today we did get that on a couple of stocks but but not on all of them it was only a few of them that really gave us that second leg higher and there were a number of others that just gave us that one first move and what I've seen a lot of Traders do is they kind of trade this to conserv atively CU they're like oh it's extended I don't know uh not really sure but these are all really clean pullbacks and then in this area they end up continuing to trade it hoping it kind of rallies back up but now you're trading the back side of the move like it's kind of you know McD's crossed over we're moving in the wrong direction this isn't what I want to see okay so step one for me is I need to find a stock that's volatile and that's moving so so I use uh stock scanners to help me find those stocks step two is performing some basic fundamental analysis step three is the technical analysis step four is where I execute my buy and sell orders and then step five is where I analyze my trading metrics all right so let's go through each one of these steps this is going to walk you through uh really kind of the way my day plays out and we're going to start with a today as uh we're going to use this as a case study to go kind of hand inand with um this class all right so let's see um so I'll put this on the side so Step One is finding that big percentage Gainer I don't make money buying and selling stocks that are break even I make money when stocks are moving so this morning um let's see let's switch back to a first of all I think it's worth um noting that each morning when I sit down I'll often uh ask this question of did you eat well did you sleep well what's the state of the overall market and if the market is strong you have stocks that you like how are you going to adjust your risk for today so for me when I sat down I was thinking just yesterday we had a stock that went up 695 per. the stock was m and I had a really solid uh Green Day on it almost double my daily goal this is the chart So Yesterday Mi goes from about 70 a share all the way up to $548 that was the high what an incredible move so because we just had that big move yesterday I was expecting that there would be quite a lot of fomo in the market that Traders would be getting really amped up really excited and that most likely people would be looking for the next stock that had the potential to make this kind of move I mean wouldn't you right we that's what we're looking for so when I first sat down this morning um I was going through the scans and I honestly didn't see a lot that looked great s so was one of our leading gappers it had made a move after hours of about 100% yesterday but pre-market it was already coming back down so this is just looking at the F minute chart and I could put the macd on here but certainly the macd was negative even though I'm not trading on the five minute time frame is very clear that this is not something I'd be interested in trading um there were a couple other lower price stocks that were on the scans uh let's see in fact what was my first trade let me go back here um my first trade today was actually on wrnt that's right forgot about that so wrnt look at this um I was happy to trade it this morning because right here where I got in we were trading front side of the move right macd is open we could go back on the one minute but it's going to be the same it's going to be open on the on the one minute as well so macd was open we're moving higher and I was happy to trade it but when it couldn't hold $1 a share which is a critical level of psychological resistance for a lot of these stocks at that point I said all right I've got to um I've got to I've got to cut it Loose I've got to let it go so ended up letting it go and only made uh actually on that first uh stock $27.16 right there so it's like nothing particularly exciting but hey that breaks the ice all right so then my next trade um let's see was um I did de trade on mea today I got a little bounce on that and then I got another trade on another stock that was popping up and let me pull up where I had my first trade on ad uh a so a I took my first trade on this at uh $2 this morning a really solid initial entry so a this stock hits my scanners you see right now how um this stock rgc is hitting the scanner at um $324 so this scanner is searching the market in real time for stocks that are moving and so this is how I'm finding the stock so a hits my scanner this morning and it would have been uh basically the second that news came out right down here which was at about 8 I guess it was maybe 8:30 that the news came out something like that and then it kind of started creeping higher and then right here it punched higher from $1.70 $180 $190 and the macd is moving the volume is increasing and I jumped in at $2 in fact I saw um one of our um members he's had a trade he bought a th000 shares at $2 and he was still holding that thousand shares when the price came up to $12 a share I was like that's unbelievable so he had one entry and then I don't know one exit that's not how I usually trade these usually the way I trade these is I jump in I'm happy to take some profit if we get a squeeze up to 250 and three which I did right here so I was up about $4,000 on this first trade it pulls back it comes back up and I'm taking the next trade we'll talk about the actual execution of the trades in a second but first the way I found the stock so I found the stock on my scanner and as soon as I see a stock hitting my scan I do my quick due diligence of whether or not this stock meets my criteria for being the type of stock I like trading now I have another full length episode on my stock selection process and how I qualify whether or not something is worth trading but to give you the cliffnotes version I'm looking at a couple of key elements um I'll erase this okay so number one for stock selection um specifically um on the scanners all right I'm going to switch pens so number one I know that I do better between two and 20 in terms of price right so price of 2 and 20 is kind of my sweet spot where I find the most uccess I know the stock has to be up 10% already at a minimum if it's not up at least 10% then I won't even consider it and I like to see that it has a relative volume that one's my goodness relative volume of five times which means the volume right now is five times higher than it would normally be at that time of the day on this stock so the high hang on one second hey go over here sorry about that so uh anyways so those who are familiar that was not June that was Bo he's um my other dog anyways so stock scanners here all right so 2 and 20 up 10% on the day relative volume of five times or higher and and then we've got uh float oh actually let's do um news I like I prefer to see if the stock has news breaking news news headline and then number five I like to see the float is under 20 million shares generally speaking if the float is higher than 20 million shares I won't consider it so these are the five criteria that I look at to evaluate whether or not a stock is worth trading so this morning when a hit my scanners I was like all right price a little cheaper right it's about $1.75 $180 but given that we've seen a lot of momentum on these lower PRC stocks in the last few trading sessions I expected we would see momentum on this one again and so or this price range so I was happy to trade it next check was a percentage change on the day it was already up at least 10% check relative volume was next and although I don't remember the relative volume was it was moving quickly and that's what I liked seeing I saw that there was a news headline and I saw that the float or the number of shares available to trade was uh showing 640,000 shares according to our Market data vendor right here so based on all of that the stock met my criteria for being worth trading and that is really the extent of the my process of deciding whether or not I'm going to take a trade at least not whether or not I'm going to take a trade but whether or not the stock is worthy of consideration so that's step one and step two is where I check the news and I did check the news headline I saw we had fresh news on it this morning and then step three is performing technical analysis so when I'm performing technical analysis the first thing I check well let me think about this for one quick second so when I first pull up a chart the first the very first thing I look at is this one minute time frame right here so if I pull up this this chart here the very first thing I look at is is right here and in this case you know we can see all right um you know the price on this has kind of popped up but what we would also be able to notice pretty quickly is that it it's pretty light volume because there's a lot of candles that are just sideways sideways sideways sideways sideways sideways sideways so a lot of kind of light volume candles where it's not really moving that much you see that I don't really love that and then we push up there to 215 now if I'm okay with this then from there I look down here and actually the next thing I just noticed was China anytime I see a stock that is a Chinese company sometimes it's obvious in the name other times I have to actually look at the headlines I I'm a little bit more skeptical because we've seen a lot of Chinese pump and dumps in the market and although you can ride that wave of momentum you have to be careful because you don't know when they're going to pull the rug so then the next thing I do is I take a look a quick look at the daily chart so here what I'm looking at is the position of the 200 moving average the 200 is a150 here so we're above the 200 moving average and then I look to the left this way and I look up to see where do we have nearby resistance maybe the top of that candle and something that I do that's a little different from what other people do is if I Mark the top of that candle I'm not going to look at anything below it basically I view this as casting a shadow back and all of this area is is uh disregarded and the reason is because it's already broken through that price it broke through it now there are some exceptions to that but this is a general rule of thumb that this is now this is a trigger at 230 that gives us room up to well we got to look to the left and up so in this case we've got some small little candles here and then we have a bigger trigger maybe up in this area that trigger at 35 four gives us room to the left and up and again to better understand how to read Candlestick charts you could check out my episode on um on reading Candlestick charts from zero which goes into the daily charts the shadow Theory and um a number of other Concepts so on a when I first pull it up that's the process basically I check the one minute it looks clean and then I'm looking at the daily and I'm seeing on The Daily the 200 moving average is way up here at 27 bucks and I also notice it's a recent reverse split you see that stock that s that means this is a stock split of 30 to1 on July 1st and that's why the float is so low because the company recently did the stock split so they've got a reverse stock split I check the stock and you could pull up the headline you could check the news and you can also see where is it located Branford Connecticut all right so just east of uh New Haven and you can see it's a early stage clinical bio biof pharmaceutical company company focused on developing therapies Precision Dermatology Etc so what we also know is that pharmaceutical stocks can be very hot this is a sector that typically performs well it's a US company which is more going to be more trustworthy than a Chinese company certainly um not a guarantee that it's going to go up but um but but just noteworthy and from that point I'm thinking all right are there any levels on The Daily recently that are a factor and that's when I noticed something very interesting check this out so I noticed that there is this Gap right here so back in February the stock uh sold off this day and then gapped way down here and ended up going sideways and the top of that Gap was at about $8.85 it came back up to the top here it tried here and tried here and so what I realized was that if we break through $885 we have no resistance until $24.21 the bottom of this Gap this is called Gap fill again this is part of technical analysis and understanding how to read Candlestick charts so once I saw this I was like all right that that gets very exciting but initially when I was first trading it I just saw this is basically having very light volume through this period and because it has light volume I didn't really think there would be a lot of bag holders a bag holder is someone who does not have discipline in their trading they take a position the price drops and they keep holding maybe they keep adding they keep hoping it'll turn around and they're just holding and holding and holding the problem is when those Traders are in a position for a long time sometimes they'll just throw out a sell order at some optimistic price they'll be like oh I got it if I could just get out at $4 I'd be flat on this trade so they put the sell order at $4 it's good till canel and just sit there in the market they might not even be full-time Traders they might be out running errands whatever whatever and then the stock boom has news pops up and that order gets picked up however those orders are only live starting at 9:30 a.m. good to cancel orders are 9:30 a.m. to 400 p.m so any price action that occurs pre-market or after hours is going past above those orders which is kind of crazy but that's just the way it works so I was concerned right at 9:30 at the opening bell that we could have some profit takers or bag holders sell but given the recent daily chart on this with the light volume I didn't think it was a very big risk so now I've done my technical analysis on the daily chart I've gotten kind of a good sense of how it looks and I'm looking at the one minute chart for my first entry and I'm actually going to pull up um the 10-second chart remember we've got a 30 minute window here so once the price starts to pull away we've got a window and my goal is to lock up and as much profit as I can on this stock and then stop trading it and look for the next one so I'm not going to trade this one stock all day long I'm going to trade it while the windows open and then I'm going to look for the next one so we get this initial popup right here and that was the first trade so do you see how we popped up and we have a micro pullback right there so now we're going to move into step four which is executing the trade so step four is where I'm actually going to have my order entry window right here so we'll type it in for and I'm going to have my um my window right here just like that so what I'm doing here is I click on the ask price which right now is 5.42 and then I've got my shares right here and now I'm ready to press the buy button so I bought 2500 shares with my first order and I filled at $2 and then I decided I wanted to add to the position so I added at 2011 and I added again at 212 all right so so now I've got an average of about 204 and we squeeze from 2 up to about 220 we drop down we pop back up we drop down we pop back up and then right here we break through this High that's a breakout setup so I ended up adding on this let's see at um 225 for the Breakthrough this level added at 225 we get squeeze up to 230 it pulls back and as it breaks the high here I'm adding again do you see how we're stair stepping higher we're St stepping higher so I'm adding we get the break higher I'm adding we get the break higher and honestly on this move right here I thought we were going to go through $3 pull back and we were just going to keep going I was a little surprised it came all the way back down to 240 on higher volume selling so that put me a little bit on notice there for a second I was like I don't know this should have done a little bit better than that so it ends up dipping down kind of going sideways here and then it rallies back up this is a pattern that we call the cup and handle so this is a cup formed by a double top it's a u shape and then the handle is sideways consolidation and then that's where I'm taking that breakout trade there for the move up to three we go to three 310 320 340 350 360 amazing 20% in two in two 10-c candles 20 seconds then we drop back down and then we pop back up to 380 and then we pull back and then this is the area where where it started to get interesting we're sort of grinding here right and then we start to pull away we squeeze up to four we push a little bit higher we pull back and then we pull away with a little bit more volume here up to 440 450 460 up to 480 and so through this area I'm just continuing to trade it and I'm locking up profit I'm buying on dips I'm taking profit into the move higher I'm buying on dips I'm adding on the breakout and I'm just actively trading it this is also going to cross over a bit with the one minute Scout strategy that I've taught a number of classes on SO trading you know this tight consolidation at this point stops getting interesting I'm thinking this is going sideways here now it's time to wait all right so this is the spot where it's exciting and this is where we start to slow down now I use the 10-second chart because it's a it's a good way for you to visualize what's happening on something that's moving very quickly this is very fast action and sometimes the one minute doesn't quite do it justice so you could if you wanted to and you have 10-second charts you could put the macd on it um but it looks like you're getting you're getting some crossovers that are not actually helpful so I I I don't do it and it looks like it probably wouldn't be that great of an idea to keep it on there so I keep it on the one minute chart but I'm executing sometimes on the 10c especially when I'm studying level two so what I really need is I need my level two I need my time in sales I've got my order entry window right here and then of course I have my hot keys my hot Keys allow me to buy and sell just by pressing a button just like that it's so fast you can get in and out of the market lightning quick um let's see we have a test symbol but that one's too expensive um let's see so just I'll just do a trade on this so I'm just going to do um let's see I'll just put this up here right here so you can see this here for a second um all right so so I'm going to go um shift one right there and instantly I'm in this with 250 shares you see how it's instantaneous instantaneous now I put my order on the offer right here I've got a sell order out and I just filled at 41 for $2.50 it's just instant these orders are so fast and that's what I really like about this software so you can see the trade there I was in at um 39 out at 40 and I did that just by pressing two buttons so let me just grab something real quick for you to see okay so this right here um is my uh my spare my spare keyboard and you could see that some of these keys are a little worn out so contrl X is to sell a quarter position control sorry contrl c contrl x is sell half contrl Z is sell full contrl k contrl l these are selling on the ask which add liquidity shift one shift two shift three these are hot keys for buying buying on the ask so as quickly as I'm typing you know I could type A and then I could type shift one shift one shift one I'm in you know 3,000 shares whatever and then control K I've got half on the ass control Q cancel the order contrl X sell half on the bid shift one add back a th contrl K sell on the ass contrl P 10cent profit Target contrl B stop it break even contrl x uh sell half control Z sell the rest right contr Q cancel any open orders and it's that fluid now the reason I trade with this or or with a um a trackpad here is because of how tight this has to be everything here has to be really tight I don't want to reach for a mouse I want to be able to move really quickly so quickly move my mouse from the buy button to the sell button if I'm entering using the order entry window and I will use this order entry window from time to time if I have time I will enter it uh here the reason I like this is because I could say you know I want to get in at I could type my shares whatever I want to get in at 41 or 40 and I click that buy button and my order is just going to sit there it's just going to sit there and wait I'm waiting and waiting and waiting so I just have to wait now if I get filled I get filled if I don't get filled I don't get filled I sit there and wait so then I'll cancel my order right so if you just press the hotkey of shift one you you'll fill pretty much no matter what because of the way the order is scripted to buy at the ask plus 10 cents that's okay for a fast moving stock but you just got to be careful um you know if you've got a lot a big spread on something so all right so let's back up out of this for one second um and we'll pull the slides back up so step um so step four is executing the trade and on a I had a to I mean gosh I I took I just traded the whole way up but what you would see when you look at those trades is that the area where I traded it was very aggressively front side here macd open stopped trading it very aggressively right here stopped trading it and I'm looking for something else and I think what a lot of people get sucked into is just continuing to trade the same stock again and again and again and they end up overtrading the backside of the move and I said you know what what I'd be better off doing is leaving this alone and waiting for the next one and next thing you know slrx is squeezing up and at 10:30 when asrt or whatever was going sideways this one starts pulling away and goes from $2 to seven bucks so doesn't it make more sense to just focus on trading the front side of whatever is currently squeezing than to just get so fixated on trading the same stock all day long that's what I think is better so that's the way I approach it so at that point I stopped trading um a completely and I think I was up I was up 32,000 on the day at that point I was up 32,000 on the day when I stopped trading actr so hey still a really good day but I was like you know I don't need to give back profit on actr so let me look for something else to trade I traded aggressively you know I I took so you can see I traded 20 two 277,000 shares so this would have been um gosh so today I would have had uh probably 20 trades 30 trades with 5 to 10,000 shares and a couple that were bigger you just keep doing that as the move goes higher and you're going to turn your shares it's fine it's not like it's one entry one exit it's just total trading but then I said all right I'm going to look for the next one and then we got slrx we got efsh we got Adil pghl right so pghl this was another one um we got a nice front side of the move on this right through here this actually I P today then it went from $4 up to 10 uh but on this one here's something that's interesting by the time the macd crossed over it had already gone from 450 up to 10 but you didn't get the crossover until it was back at 6 so if you waited for the crossover to exit you would have held too long so I don't wait for the crossover to exit but once we have a crossover I don't want to trade it anymore so I want to trade on the front side as it's moving up and I want to take profit as it's squeezing up you know and then let it dip down and then look for that next dip for the next trade now this chart is very hard to trade which is why I really didn't make that much money on it I'm up um let's see $1600 it was a small winner in total uh and that's fine you know there was another one today rgc which is currently up 430 this one was up 600 for a moment also basically impossible to trade volume is too light it's just not easy to trade cjet right now hitting the scans so this one pop dropped earlier came back up to 4 450 to 5 let's see where it's located cjet so Grand Cayman um chaiet Chet I don't know Motor Company never heard of them um 2001 based in Grand Grand Cayman uh so it's BAS in Grand Cayman but you know that doesn't look like the name of someone who's based in Grand C in so you know a lot of these companies where they're actually located where they where the the companies registered is different than where they do their business let's see oh this was a spa special acquisition company into a merger okay China People's Republic of China so for that reason you know this is one that probably wouldn't trust unfortunately just we you know we we know the game and if you haven't checked out my episode on um these Chinese stocks I've got another pretty interesting episode on that but uh yeah so okay so then so step four is to execute the trades and the way that I'm going to focus on trading these is buying the pull backs so if you haven't checked out the episode on the one minute scalping strategy or buying those pullbacks definitely check that out there's also some details on this strategy in my small count strategy PDF which is linked down in the bottom uh in the comments in the description and then step five is when we get into analytics so it's very important that you review your progress so right here I have these analytics where I can actually track this is $12.8 million of gross profit I'll remind you right now my results not typical there's no guarantee you'll find a similar result as me so please take it slow um but 12.8 million uh here in gross profit and so what I could do is I can analyze my trades based on the time of day based on the day of the week based on the price of the stock and all of this is super super valuable information as you're trying to figure out what in your strategy is working so today uh I import my trades at the end of the day uh actually it's the next day day that they that I can import them so I can't import these right now I have to wait till tomorrow um but I'll be interested to see what my metrics look like um for today my guess is that I have pretty good accuracy probably above 70% I'm green on all the stocks I traded my profit loss ratio is probably pretty solid I had a couple of losses but they weren't that big and I had some really nice big Winners so positive profit loss ratio these are the things that we kind of pay attention to when we're looking at metrics we want to look at your profit loss ratio you want to look at your accuracy you want to look at your hold time and you want to be able to look at this both for um winners and losers so what's your average hold time for winners what's the average hold time for losers profit loss ratio percentage and then uh price where you've done best volume and then other metrics that kind of play into what we already know about stock selection because ultimately your Mets are going to help reaffirm for you what is working in your trading so if this is if these are your metrics let's just I'm going to use an example here I'm going to go to a month where I didn't do so well so let's look custom range at um March all right so this is not a great month for me it it's a little embarrassing I don't want to show it to you but I I will so finished month um of March with $20,000 um but you could see I lost money on stocks over 20 I I just I had this little window where I did well and then everything else was sort of poor and if we look at um performance by time of day you'll also see that I didn't do well on Monday and Tuesday and I also didn't do well early and I didn't do well late I did well kind of in the middle of my window and so what I decided to do then was after that um performance I was like you know what for April I need to do better I'm going to take my metrics and I'm going to learn from them and so in April I focused on trading during the time when I usually do better I did still lose a little bit towards the end of the day but not as bad and then I focused on trading in the price range where I had done well in the previous month because I said right now I need to go back to basics and focus on what I know is working I want to really encourage you guys to do that focus on what you know is working focus on the right stocks to trade we had some great ones today I bet we're going to have some more really good ones in the coming weeks the coming months so for those of you guys T tuning in I hope you found this episode super valuable I hope you hit that thumbs up I hope you subscribe to the channel and heyy if you want to check out a twoe trial at Warrior trading there'll be a link posted in the comments and in the top of the description and I also have the link where you can download my uh small account PDF so check those things out and I want to thank you as always for tuning in and you know what the recommended reading I didn't quite get to it so what I'll do is I'll put a video right here of my recommended reading list so check that out and I'll see you guys for the next episode real