In this video learn how to copy the masters so you become one. Learn the innovative way a junior trader at our proprietary firm copies the trading of one of the firms elite traders to propel his trading development.
View Video Transcriptin this video learn how to copy the
Masters so you become one hi I’m Mike
bellafiore co-founder of SMB capital and
we’re a proprietary trading firm located
in midtown Manhattan and I’m also the
author of the trading classic one good
trait and the playbook click our
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of the videos they’re producing for you
in the trading community learn the
innovative way a junior trader and our
proprietary trading firm copies the
trading of one of the firm’s at elite
traders to propel his trading
development so I want to walk through
something that you were discussing with
me now the other day which is you go
back and take a look at how shark has
traded something and so you look at all
those executions and you overlay the
where the stock is actually trading any
overlay your tape I actually think
that’s quite innovative
yeah can you talk through what you and
Armand do to sort of decode what
somebody like shark is doing on
particularly effective trades
yeah absolutely so you know obviously
first things first with with with your
intraday trading you need to be
recording your screen if you record your
screen and you have all the important
information then you have access to that
data at any point at any time and you
have an edge over other people because
what mean or mondieu in particular is
over the weekend we go through and we
watch our recordings or screen
recordings from Monday through Friday
we watch it on two to three X speed and
just slow down on areas of interest
where we think it’s important we walk we
walk through each other you know
interesting interesting spots what we
should have done versus what we did and
then we write takeaways on each day now
what we also notice was really useful
was putting up a ticks window of only
what shark does and it takes window 4 at
SMB basically is it’s going to Swan so
you guys are going back and you’re
watching the tape of your trading yes
over the weekend yes
yeah and I’ve talked about this before
which is good to be taking notes and
taking notes of the really important
introduction points and the most
important stocks and go back and
watching tape at those points when
you’re going back and watching tape what
are you doing I’m looking for
patterns that are occurring at areas
where the stock that’s something that I
didn’t catch on to in real time so that
maybe at the open where I can’t just
watch all three names on the tape I’m
not experienced enough for that so I’ll
watch how I could have been what key
things happen on the tape at the open
what key things happened during a break
down and are you going back watching
black tape are you going back and
looking at things selectively so you’re
just rewinding your tape from the open
on Monday just to clarify what what I’m
doing is I’m looking for areas in the
chart where an entry should have been
identified in real time and I’m going
back and thinking what happened in what
pattern occurred him the tape there that
I should have caught on to in real time
and then I’m writing a note you’re doing
what we suggest eternally which is
you’re keeping track of the really
important moments yeah and the best
stocks and then you’re going back and
you’re watching the tape as much as
possible at those important moments and
when you go back and watch the tape at
those important moments you start to
recognize the tells that came before the
big moves you start to improve your tape
reading skills you start to internalize
the things you want to see in the tape
that really drive direction yeah it’s
exactly right you know it’s it’s not
just catching on to your own patterns
instantly you were just touching on just
a couple minutes ago which is you also
have to kind of figure out what other
more experienced tape readers are seeing
so knowing an attorney that you know one
of the best tape years of the firm is
shark what we went ahead and did was
figure out what he was doing during in a
trade where we’re very confident he’s
reading the tape for example something
like this bxx trade or honestly any of
his newest trades that are happening
during the open for example or or into
the closed
those are trades what we’ll do is we’ll
we’ll not just look at the tape but I’ll
also put on a five-second chart on
trading view and I’ll pull down the data
from cloud font which is our our
technology at SMB and what I’ll do is
I’ll see what was the reaction
there what did he see in that moment on
his execution and will chart his
executions and we and what we kind of
you know figured out is that he is he is
buying as soon as he sees any hint of
buying pressure in an area where it
would make sense he has a level you know
so for example like stock comes into an
important inflection point and then I
would see shark start entering a trade
as soon as there’s any signs of buying
on the tape and of course I can confirm
that by looking at the chart to there’s
just a little bit of a turn even on the
five second chart and that turn that
he’s taking he’s taking a lot of risk on
it and then he’s and then he’s reducing
immediately and I don’t wanna say a lot
of risk as if I know exactly his risk
rameters are but here’s my point is he’s
taking sighs and then he’s reducing that
size very quickly and putting himself a
profit and my point to say this is it’s
it’s making his trading very forgiving
in the sense that as soon as he takes
some money off the table he can keep
trading this name over and over again
even though he might be wronged by the
the overall direction let’s see he’s
even wrong but the idea of the trade
he’s still walking out of the name being
green and I think that’s the key to
being consistent and trading is if you
also need to find a way to to to not
lose in between the big trade you want
to have enough female mental mental
energy and you don’t want to be stressed
when the real trade comes where you’re
gonna be hitting a big breakdown or you
know you’re trying to catch the big move
so it’s what I’ve kind of concluded is
that is that reading the tape to catch
good entries I guess even it for a small
pas a small scalp to put yourself in the
driver’s seat on the name and doing that
over and over again until you catch the
big move until you position yourself for
the big move you’re going to be in the
driver’s seat you’re gonna have a lot
more size and a lot more risk available
to you so you’re going back and you’re
literally overlaying the executions that
shark gets done and using that as a way
to improve your tape reading skills
I mean he’s the best trader at the firm
I don’t see why anybody else isn’t doing
that yeah it’s just I mean somebody’s
doing it better than I am
I have to see how he’s doing it yeah and
how long does that take you guys over
the weekend we made it a process we have
we have a three-hour short session
almost every weekend at least so and
that that excludes all the other work
that we’re doing on our own for our own
trading so we would go back and figure
out what we do these days now that the
vault at ease died down a little bit is
we we have a sheet of all his best
trades that he’s putting up a lot of P&L
and verses in high volatility we were
doing this on almost every single of the
Straits but now we just have a sheet of
his best trades record of his and in
terms of you know a timestamp and so
over the weekend we’ll go through and
it’s almost like now when we go through
what Trey he’s taken we almost kind of
like know what to expect because he’s
still consistent in his in his process
and his entry style it’s really powerful
to do it because while replicating isn’t
very easy I’m at least have a path that
I know will work if I work hard enough
of figuring it out why do you think
replicating it is because it brought out
replicating isn’t easy because I think
seeing things in real time versus thing
seeing things in the past I think
there’s still a my trading you know even
though I’m one year into my professional
career
I still my my emotions still get in the
way I’m soaked my judgment is sometimes
still clouded I would think in very
important moments and there’s something
I’m really working on is being a little
bit more calm being moral collected this
has been a big factor for me because I’m
I’ve been trading on a higher time frame
for the most part you know called the
the the three to five minute versus I
know that he’s probably watching that
you know the one or two minute we’re
just watching the tape purely sometimes
and I think the more I practice it the
more the more calm collected I am during
his moments I
I don’t want to say it’s hard as if as
if as if it’s impossible it’s just hard
isn’t it requires a lot of work and it
requires a lot of practice because you
just need to accept the fact that you’re
going to lose a lot a lot of times a lot
of times I shouldn’t see you gonna lose
a lot of P&L but you know if you size it
properly even trade it properly you just
need to accept that you gonna take a lot
of losers initially yeah I mean looking
that’s a something he’s working on his
not drawing down as much but be not
having as much stress on his trading so
that is something actively that that he
personally is working on I will say that
on his team you know it it’s a huge
privilege we think the trade at this
firm it’s a huge privilege we think it
just is it’s a huge privilege to be able
to trade on team shark and what we’ve
recognized is that all of the people on
Team shark are all positive they all
make money consistently and guess what
and we found the shock the thought
process when we first started teams was
newer guys would copy the Masters copy
somebody like shark and then like a mini
shark and look just do what he’s doing
because and we know it works out and
that definitely is a really great way to
start your trading career in your
development by copying the Masters but
what really surprised us was how nobody
else actually under him could trade like
him nobody on his team trades the way
that he trades in fact there are times
when he’s short and other people are
scalping the trade long there are times
when he’s short and and people are just
long and yet all of these traders are
finding ways to win over time I would
say further what was surprising is that
some of the traders were particularly
frustrated that they couldn’t read the
way that he did and then even worse at
times were frustrated that shark was
doing certain things that they knew he
shouldn’t be doing that he had said he
shouldn’t be doing yet he was still
doing in real time and then they were
copying him and getting in trouble and
so copying the Masters certainly is a
great way to start he’s a great person
to mimic he’s a great person to learn
from but you got to do it the right way
and copying the Masters means having
that period of time where you’re being
exposed to what those those great
traders are doing and trying those
traits and seeing the executions and
seeing how risk is handled and seeing
how exits are handled and but then you
have to build your own playbook of
trades that you can get your personality
may not be suited to have the draw downs
that he does and your processing power
may not be the same as his to be able to
handle as many different stocks at the
same time as he does and the way that
you prefer to trade in terms of time
frame may be different than the way that
he looks at markets you mentioned you’re
looking perhaps at a different time
frame than him but what I love about
what you’re doing and I think one of the
mistakes that people make who are
copying masters is they conclude it’s
not actually really effective to copy
masters because in the end they’re not
going to trade like those masters it is
but what you have to take away is how
they’re thinking through trades which
have to take away are the things that
you can use in your trading you have to
copy the whole thing from soup to nuts
you can copy two or three things and
then make four or five and six of the
trade over all your own you can improve
certain skills that are very important
you’re trading like tapereading
or like technical now
or like building position sizing that
that you make your own but are very
important but it was so surprising that
everybody aids in the end their own
system taken from lots of good stuff
that they learned from him and from us
but but in the end made their own and I
do agree with you that at particularly
the beginning of your career going and
copying actions decoding what they’re
doing to learn it’s good just understand
at the end of the day you’re gonna want
to make your own for optimal trading
you’re gonna want to make it your own
for cognitive and psychological reasons
but yeah I mean that’s that’s a great
practice to go through if you want to
learn three real world setups that our
traders use including the simple setup
that we teach all of our new traders and
the set up that turned one of our
traders into a seven-figure big money
earner check out the free webinar that
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more in a couple of hours from this
trading workshop then from years of
online education today we talk my new 52
week low set up that I took on NC LH
which was a cruise line name that was
getting hit during the pandemic that
were apparently experiencing so the big
picture market here during this trade is
a spy had crashed in a 20% while trading
days big step tripled in in 12 days and
you know things were just absolutely
crazy there was wide ranges in the
market wide spreads and and this just
offered August a massive opportunity my
tactic during this time coming in from
Leatha late February to to all of March
really was to focus on very high are all
names on especially travel stocks
because a lot of institutions understood
that you know they didn’t know how far
and how bad the pandemic can get and
this could potentially put some some
names that didn’t have the best balance
sheets in the bankruptcy so in our
tactic I mean my trading partner our
tactic was was to look for the highest
are all names because it’s very noisy
during a period of time like this where
everything is getting sold because the
market is so weak I should say nearly
everything and you have to be selective
because there’s going to be an and it’s
going to offer you a better set up a
better reward and you know and and more
institutional involvement we’re just
going to give you obviously just more
checks in your favor for your trade so
you talked about your focus is on high
árbol names we’ve got an overall market
that’s in play got a market where the
volatility spiking out but you’re
looking for high árbol names and then
you say n travel stocks specifically
affected by the pandemic so my question
is are you just immediately looking to
trade the travel stocks or are you
trading to trade the travel stocks
because you’re noticing high árbol in
those names yes good question you know
um it’s let me first step back here and
say that you know a high overall name
indicate that names in play is very
interested it’s going to catch my
interest now because I understand the
fundamentals of this I’m also going to
give a stock that is that has you know
some something along the lines of travel
more of a check in favor I’m going to
pay more attention to it when it has a
higher wall because you know even though
Apple had IRL high árbol I can probably
tell you that a trader is going to make
a ton more P&L trading one of these
cruise liners during its period of time
because they were specifically affected
in a different way and seeing my our bow
on a name in those names and I mean
astronomical I was I should go is what I
should say I shouldn’t just say hi are
born I’m talking really really high
Oracle that is indicating to me there’s
institutions that are getting involved
on a different level there they’re
really trying to to get out of the name
because there’s so much so basically
you’re saying you’re developing a thesis
the travel
names are gonna get hit hard and then
fair to say you’re looking for our ville
to confirm your thesis yes yes and so if
our bowl is not elevated are you gonna
move away from the travel names of
course I mean just I’m not yeah of
course I’m not a big institution that
that’s putting on an idea over you know
a five-month period you know I’m on an
intraday trader who needs volume when
needs
who needs other involvement to determine
what where the stock is going to go
within the next 20 minutes within the
next 10 minutes and higher our ball
names are going to be cleaner moves
better resource ratio setups so yeah
absolutely our ball is an important
factor even though I understand the
fundamentals if
nch on this day had 0.9 our ball first
let me tell you you likely wouldn’t have
made a 52-week low if a head point i
normal probably not at least and if it
did it probably was going to do it in
you know in a fashion that wasn’t going
to be readable I should say or
predictable okay so this is this is the
high packing chart on spy you know as
you can see we’re in 20 point range on
spy which is just massive it was causing
a lot of names to be even out even wider
ranges you can clearly see you’re gonna
have to wait eight you know because a
lot of them move the down moves were
happening on on gap downs because
they’re doing some bad news that would
come out overnight in futures or gap
down a lot so you know the way to work
around it to a tape is you need to
understand you know what is the spy
gonna be doing intraday because even
though we’re in we’re in a market that’s
getting hit hard the downside you also
need to be cognizant of the fact that
you’re trading in a massive range and
there’s still gonna be some great launch
setups doing this period of time as you
can see here on this day on the far
right here you can see spy downtrend all
day
this doll is a key factor and me wanting
to look for a weak name this day biggest
high timeframe chart as you can see that
this is a big CTF it’s getting bought up
a lot over the past few days there’s a
lot of fear a lot of uncertainty
obviously the the ETF here shows shows
that pretty clearly it’s not something
I’m going to use intraday necessarily
unless I’m trading the product itself
but it’s it’s you know higher the mix
that we have the more
the more volatile moves we’re expecting
in the more we also understand that
moves might be more move to move rather
than just rather than just getting in on
something and holding it all day also
important to note that the higher picks
we have often makes me wearing my sizing
this is a lesson that I’m sure a lot of
people learn the hard way definitely
Island Hardaway is you know when you
have a probably gonna you know likely
have a wider range you have to adjust
for that okay so let’s go over the
relative weakness in the cruise liners
because there’s a lot of names and
there’s just a lot of noise during this
period of time what was interesting to
me about about the cruise liners is they
kept hitting my scanners like crazy and
I mean they were hitting them a little
bit earlier than when the pandemic
really started picking up in terms of
hitting the market and I felt that me my
trading partner were pretty early
relative to everybody that was kind of
watching at the firm onto these names
because of this one key scanner it’s
called the rhw scan that me my trading
partner bill that I have shared with
everybody at SMB and this canner was a
lifesaver during this period of time
because there was a ton of names but I
would I would have to argue for a
relatively newer trader if you find the
right names you’re just gonna have any
more forgiving setup
meaning if you screw something up a
little bit
you’re still gonna come out with a great
trade if you have the right stock
solution that is and these scanners were
key to helping me accomplish that so as
you guys can see is over the past few
weeks what I noticed was you know cici
out getting you know getting hit early
on that’s why we spend so much time on
technology I wrote in one good trade
you’re only as good as the stocks that
you trade dr. Steinberg and I were doing
a webinar to Asia recently and he
remarked that one of the things that he
learned from working with SMB that what
you trade is as as important as how you
trade and that one thing we were doing
differently at SMB was finding these
stocks in play which was making intraday
trading active trading
much easier and was making all the
difference as to
results and so what you’re saying here
is I’m building technology to find
stocks play on the best stocks and play
during this time period and that is
making your job as a trader much easier
yeah no I’m not banking that I’m gonna
come in and be sloppy on the day but I
also want to assume that the stock that
I’m trading is is good enough to where
if I if I do make a small error that it
doesn’t it doesn’t cost me and you know
and these names it’s almost like if you
got short anywhere they worked and that
is the point of picking in an easy name
to trade it’s you want to do the hard
work before the market opens you want to
figure out what’s going to be good
before the market opens and have these
things ready for yourself so that when a
market does open and you have to make a
split-second decision that the stock is
going to just give it to you that’s just
the ideal world scenario it’s not always
like this some some important
fundamentals to go or events eh today’s
prior the US State Department issued an
official warning saying US students
should not travel by cruise you know as
an institution I think they they should
be worried if they’re holding long a
name like this and as an intraday trader
I see this as a massive opportunity you
know they’re literally cutting cutting
of cutting them out of their business
I’m not sure what else could really go
wrong so and then this wasn’t just the
United States Department might be you
know these these these travel stocks are
going everywhere and it was many
countries that were drawing port entry
rights to ships preventing passengers
from this is barking I mean this is a
nightmare scenario for these cruise
liners and so they just closed down two
and a half a TRS and on two and a half a
ver Ajmal you mat day which of course is
the you know the epitome what I want to
see on my scanner so it was set to open
with an e TRS 52-week low which of
course me my trading partner before the
open if I know what is going to open
within to be close your eyes because
those are socks I could have potential
on intraday to run towards those lows or
highs and expand that range like to find
find things that will potentially expand
the range are well on the openness nine
and a half and mind you our role is you
know calculated based on the past
days so for this our wall to be nine and
a half that’s crazy to me because when I
show you the chart in a second on the
daily you understand that the volume was
really already thinking up like crazy so
so this was no joke
there was a lot of institutional
movement yeah our goal in 945 is also
interesting to look at just that you can
ensure that it’s not just dropping that
at the open it wasn’t just one
institution coming in is an all-day
thing a tiara meeting three and a half
points good enough for me to work around
the name a virtually long named million
shares that’s a check in favor it means
I can potentially trade this name big if
I need to short cloak 12% on
institutional ownership ninety-two
percent this was interesting of course
because you know institutional order
flow doesn’t cause doesn’t cause small
moves you know there’s very difficult
for an institution to come in difficult
for institution to be nimble I should
say for it to be 92 percent would likely
mean it’s gonna cause an all they move
you know you’re sitting there before the
open and you think that this can be
something that goes down for one to
three days in this case you know you’re
gonna trade this intraday I think that’s
gonna go down low a day finish lowered
day go down directionally for one day
and so you looking at the news news is
no good negative news catalysts okay
looking at longer-term charts okay no
support for a long period of time
looking at our of all our goals real
high are you looking at so you got all
these things that you’re looking at for
whether or not the stuck and finish low
a day anything else you’re looking at
that that we didn’t mention um you know
obviously of course like we talked about
the opening our ball and you know what
is the daily you know of course in this
case overextended so you know I don’t
want to be too too too bearish at the
lows but also be cognizant and be a
realist of where this stock can end up
it’s a you know it’s gone from from 62
dollars all the way down to you know to
17 dollars you know so so maybe you’re
not trying to swing trade the same
necessarily to the downside anymore you
know things at $50 gets sold much easier
than something at you know at $10 I’m
looking at how oversold it is but I’m
also stressed trying to stay realistic
about this
you know it’s a name that could go
bankrupt potentially it’s at all-time
lows not just 52 we close I should have
mentioned that so yeah I mean various
factors but most importantly the factors
that I brought up and those factors put
together are enough to put a put
together a good trade a great trade so
here’s the interview chart on the
15-minute time frame you can see here
that the range is master we’re talking
23% from the prior day all the way down
to you know 217 points you know from
from 22 points on an intraday basis you
see a big buyer stepped up that the
prior day as well that kind of pushed
the name back up this created for a
really good set up because when the
stock closes two days in a row at the
low of the day you start questioning on
the third day whether it can go lower so
what was key about this name on this day
is this setup from the prior day it was
relatively weak the first day and the
second day it was it was holding within
that range so that is key to you know if
have closed down at 15 points I don’t
know if I would have been as excited
about the short I should say but the
fact that it that it had come back up
you know tells me it’s some some buyer
stepped in they’re gonna have to get out
you can see by the way in the free
market here the importance note it’s
already below yesterday’s close you know
and that is a level that I’ll use to
kind of determine for myself where the
buyers are from yesterday you know along
with today view up obviously where they
stand because you know if it’s below
yesterday’s close then the people from
yesterday are taking heat that’s
obviously good if you’re if you’re
looking to shorts Albany I know another
important thing which I think we
mentioned intraday fundamentals but I’d
like to show here is you can see here
you know it was opening you know at 19
and a half and 52 we close were right
around 1710 so again within an ATR of
that so I’m gonna look for a set up to
break and expand the range you know past
52 we close so I have some criteria
though I’ll look over in the morning
because obviously I trade tons of
different setups and obviously to avoid
sloppy trading you have to go over what
did you do best last time you traded a
setup like this
so in this case here in my rules um you
know first I need identify a stock with
employee with recent fundamental
catalysts opening within each of the two
we glow again and CH covers all that we
were to talk about why Washburn
consolidation to break down on the open
towards me to be both take an additional
entry anticipating the break watch for
consolidation and the lows to provide
another opportunity for that range
expansion and that is a key part right
there because it’s interesting to trade
the name from open price down if the to
e globe
that’s what your home run your home run
is when you get it to expand the range
where there’s no buyers below the
52-week low
there’s no sellers limit 52-week high
that is a range it’s going to expand and
keep expanding most likely if that’s a
good reason to at least and of course
xmo Lawson over extensions and hold a
core anticipating a close to load a why
do I say take normal Lots off over
extensions it’s because we’re a nimble
we have capital that we can a lot of
capitals we can put in and out of the
market that could that could generate a
lot of piano and of course all the poor
you know not only protects you from
potential sloppy moe trade that you know
but it puts you in a position where
where you know you’re putting out P&L as
you’re making you know your mo trades
because of course stocks I’m going one
direction most times at least it’s good
to have a core position that that you
know put on an idea trade you know
intraday it takes a while to develop on
confident idea trades and you know trade
like this seem pretty obvious to me to
put on as an intraday idea trade
especially who is gonna was if it was
gonna all blows to me globe here is the
opening consolidation that we were
hoping for it NCH I was open for
different scenarios just to clarify but
this is my favorite scenario because I
have I haven’t paid the fine stop I have
clear levels of risk off both and the
break of it is as clear as it can get
you know I’m getting the volume
expansion that I want to see nearly as
big as the entry volume of formation
which is the open volume this to me is a
key set up I mean my heart races even
looking at this chart right here in
replay mode because I would I would
short this now with you know with my
full intraday risk if I could because
it’s clear to me this is something you
know as long as the tape is getting sold
down here and as long as the chart looks
like this this is a key setup for me to
put up you know a lot of you know know
what specifically about that get your
heart racing you know when you do really
so when you look at a chart like that
and that is your reaction that’s an
important observation and to me it’s
saying something even more important
which is like this just all makes sense
to me lots of different ways to trade
this setup right here makes sense to you
this setup right here just something you
see yourself being able to trade with
more sighs this trade right here is
something that you see can build upon
and help you to improve in your trading
career this is an a-plus setup for you
what is it about it
so what gets your heart racing about
this trade what I love so much about
this trade is is that there was a clear
fight at the open or for a directional
move to happen what I like to see about
these moves is that it’s not just going
off the open and getting sold
immediately because that doesn’t give me
as great verse toward set up what this
shows me is people fighting a little bit
somebody was trying to come and step in
and may be trying to value buy it or you
know or some retailers are coming in or
whatever it was there there wasn’t yet
that big sell signal yet and when I when
I get a consolidation at the open that
doesn’t break for a half hour I know I’m
getting set up for a big day and as soon
as it breaks with volume my confidence
level shoots through the roof because I
backed us at this trade I’ve seen this
trade many times I’ve looked through my
trader view and I know that this is the
trade got to your heart so your heart is
racing and it should be your heart is
racing because this is a trade where you
do have edge and is meaningful to you a
really important thing you got to do
with the trade like this you have do
duper important is you got to make sure
that you had enough size on for this
tray
you got to go back and judge yourself
pretty harshly hold yourself to high
standards as to whether or not you did
have the amount of risk on for this
trade that you should have we talked
about doing daily report cards we talked
about working on our sizing lots of
people say lots of things in the
internet about sizing
well good sizing starts from your best
trades and it starts from hey did I
really have enough risk on for this
particular trade judge myself great
myself on a specific trade like this as
to whether or not you did and if you
didn’t go back and visualize yourself
having that really big size having that
full risk on hold yourself accountable
with your trickin partner to say hey
next time I see a trade like this or one
of my eight plus trades I’m gonna have
max risk off gotta have it on I have to
have it on I deserve to have it on if
I’m gonna be the trader I want to be and
I’m gonna be as good as I possibly can
be as a trader
I got a habit on my heart my heart’s
racing for a reason now what nonsense
isin a new low after 10 a.m. in stock
exclaiming expand the range the sellers
won in this in this fight that we had at
the open you have a good risk to reward
ratio set up here a clearly-defined stop
if it was going to get back above if it
was gonna get back up a breaking candle
or above the high a day this trade was
wrong and you boy I should I should be
looking this name anymore but the volume
you know the timing of the tree the
pattern everything to me lines up for a
short I have to be getting short as it
breaks the low a day after getting short
once the once the five-minute can I’ll
close the bellows with that type of
volume after beginning short when I see
that when I see the lower they breaking
on the tape when I see the tape speeding
up every signal that every signal that I
have seen in the past as a technical
indicator for me should now come into
play you see the bottom come in you like
to set up a plus set up and you’re gonna
hit into it as going down but you want
to be thinking about other things as
well to get your full-size which is what
but the shark does pretty well all right
so one way to get in as you get in into
the dab move yeah all right so that’s
that’s a way to get into some of it yeah
and how did he get into more of it well
I mean there’s a variety of indicators
we’re going to use so of course if I see
a big bar on the tape that breaks you
know I see below it if I if I see some
type of some type of you know a large
bit that’s getting hit and getting yeah
I mean look if you if you’d like this
set up you hit it you see the volume
comes in you like to push away from
price you like the way it’s acting you
also want to leave some rim too short
the pops if you if you get in with tier
1 or tier 2 and then you like the way to
act it you may say to yourself hey let
me say some risk
let me short the pop somebody sure to
lower high but your your mindset shifts
to putting on more risk because you like
the way that it act it’s a very good
point because if you’re confident with
the trait then as it moves up it’s just
gonna be a better price for you short
this is something I need to work on am I
kind of SSM bie I think the least thing
I’ve done is is is work on getting an
entry that’s countering the move and
obviously fighting for pricing I work
for very hard there’s some key things
that the best traders do SN be done very
aware of that I need to put into my my
trading that I think will make me 10x
better trader because that’s the type of
risk better board that you have when
when a stock you know it comes into a
price like like short bits you know when
I look at his trades and I look at them
very closely it’s important to note that
he’s comfortable trading near near his
stop and I shouldn’t say near her stop
as if I know where his stop that
specifically is but I can tell he’s
trading somewhere where it’s a it’s a
I’m gonna say you know it’s a
technically a less risky area based off
your ward but it’s a more heart it’s an
area of less confirmation in sense
that’s a little bit difficult for me but
this may need to work on we’re working
on the trade here we get a big extension
into the 52 we close this is the price
that I’m watching 17.9 $17 a really
I’m watching the sea is this gonna make
new lows are we gonna see a big bounce
or we’re gonna get a consolidation if
this is an area where I need to be
sitting in my desk and watching very
intently you know what is what is gonna
happen next
of course here I’m taking off a lot of
my risk from the consolidation break
because I’m not worried that I’m gonna
miss them you know on the break of the
low because that’s Ted I’m on stalking
all day so I feel comfortable being out
nearly 90% of my short and you know in
holding my holding my core here because
what’s important for me is that you know
that I lock in these profits and then I
use them to get back in when I see the
next set up I want to see the next set
up that I like so obviously as you can
see here NCH had come into the 52 we
closed after opening up and failing
through an opening pattern we had a pop
into view ah this is pop that I missed
the short on something I’m trying to
work on in my trading we talked about
Bella which is something that shark does
really really well is you know watching
for the tape to flip you know near an
area of resistance near an area of
interest at least what I mean by the
tape flipping is basically when you
noticed for the first time you know
sellers taking back control of the name
and that’s where you have an opportunity
to risk very very little on a take turn
but with the pattern continuation liquid
cruises talked about Department to be
off was very short able again I think in
the future I’ll be looking to do is be
more focused on on finding the turn not
you know on the table of course and you
know in there your resistance where I
can be getting big against a tight stop
especially when this dog is acting clean
I think the number one thing is as soon
as you start seeing yourself when you
start to snowballing your your P&L and a
trade that’s working I think it’s
important not to say okay I’m going to
protect my day now rather it’s you don’t
have the opposite thought process is how
can I kind of be using this piano as a
cushion to be getting bigger on the rest
of my day is this today where I need to
have you know two times my biggest day
or is it this today to having 10 X make
my biggest day and this party or
something and I thought me and Armand
did my trading partner did a good job at
the
past a volatility period which is that
when we notice stocks were really
getting sold we just sat at the desk and
we would we would you know work all day
in a sense right we would watch the
chart all day for every pattern to
develop and and and hit every new low
you know and now obviously if I’m is a
little bit different or working on being
far more calm working on technology
working on models in our spare time and
after 11:00 a.m. rather which one
clarified this is a trade that had a
good reason to break the 52-week low it
had a fundamental reason it had a big
our goal I made the 52-week low you’re
gonna see is pattern a million times in
fact I saw I guess today in WFC I saw it
today and see but they didn’t continue
as clean as this because they don’t
currently as of right now have the fuel
to be getting sold all day on new lows
so I don’t clarify this is not a pattern
that I would hit today unless the stock
has a good reason to get sold unless the
stock has good our ball once there’s a
fundamental story behind it okay so my
next slide is the full day char of NC LH
and after that pop into vo up and after
that break of the 52 week low that
happened on volume and downtrend it the
rest of the day and you guys basically
the most important thing to understand
about these names is when they’re
breaking the 52 week low with a good
fundamental reason and with all these
technical factors playing in them
it’s in my opinion for my trading and my
trading partners trading incredibly
important to us to hold a position a
core position throughout the rest of the
day we are confident that there’s
there’s a good chance it will close at
the low of the day something that we
back tested with our tech and this
someone that we’ve worked on trading
live is when a stock obviously goes into
an uncharted territory or just expands a
daily range or expanse especially a
yearly arranged or all-time lows
all-time highs that is a spot where you
need to be thinking let me take a little
bit of risk and a little bit goes a long
way with these traits you know and hold
till the end of the day and sometimes
even for gap downs if they close
relatively weak at the bottom 80% of the
range with more than 120 percent of
their average daily volume those are
some key factors right there that that
will
like to lead to successful overnight and
is successful all day old
so my next shot max slide will show the
executions and essentially the only
thing I think important thing to go over
here is that on the open I thought
there’s a chance that sewage could could
just don’t fight off the open for a
morning drive
I hit it very quickly when I saw it
starting getting sold I quickly hit out
when it when it came back up again there
was a small wrist trade where I just
told myself I’m willing I just want to
be involved say I have a good idea the
stock should be getting sold and I start
seeing again so below an inflection
point I’m not risking a ton on this
trade but this is a trade where we’re
you know I’m I’m okay taking small risk
with a tight stop I’m expecting the
stock to drive away from price I don’t
see that I stopped out no problem I’m
still going to stay logical because
there’s several scenarios that I’ve
planned out for myself
it’s not just the morning drive that
could have happened it could have been a
morning drive it could be a pop I’m
going to yesterday’s closed and a
failure it could be consolidation which
is what we saw on this in this
particular scenario so I’m only focused
on this name is something I mean for my
trading partner a good at is focusing on
one or two names maximum I was watching
it very very intently the whole time and
as the consolidation played out we just
waited and waited until we saw a clear
signal which is the one that we talked
about earlier in this in this
presentation you know this was the this
was the moment where I got very very
excited when I saw I braved down from
the consolidation we saw a big fight
between buyers and sellers kind of give
out with with volume and that’s when we
hit it you know pretty you know pretty
big for our for our risk tolerance you
know and and after that it was it was
really just covering into the 52 we
closed covering some momentum size and
then of course restoring the 52 we
closed when the stock came back in for
the second time and started
consolidating at the lows and then
finally broke that level that was
another key trade that made that made
this one of our biggest trades actually
is is the consolidation that happened at
17 17 dollars to be close again we were
just hitting it on the breakdown of that
$17 level watching the tape there that
was a tape trade and of course I in my
head
I have III have to trade somehow I’m
taking there I had my Momo trade
I’m expecting a breakdown of the 50 we
close to go and happen fast and I’m
looking just get one point out of it
maybe 50 cents even with maybe even a 10
cent stop okay but then I’m also still
cognizant that I have a stop above you
opt for a core position of a trade that
could close below as of the day there
are two separate trades and of course
the stock set up this name set up in
such a way that allowed me to take both
positions at the same time the biggest
thing about the review that I wanted to
talk about here was the hold more size
longer on the catalyst that could
trigger institutions to sell the reason
why I bring this up because of course
holding more size longer is not end of
itself just an improvement it’s how do I
do that
why how would I know to do that you know
the answer here was we knew that
institutions or likely to sell this name
all day based off key factors 52 we
closed fundamentally nice name couldn’t
go potentially bankrupt and of course
the chart was was showing us the volume
the our ball it’s a dr. s trade when
when you get massive volume at the open
with institution of wine that indicates
you we could have a full-day move and of
course get bigger on names of the
callous that can fundamentally affect
their business and this definitely lined
up to be just that well not no I look
forward in short order to some new guys
coming into the firm and for them to say
you know I was really watching that Nano
I was really watching the way he was
trading XYZ stock and I overlaid all
those executions onto the tape that I
was watching back and now I really
understand how to trade it I could just
be like him I hope so
I’m happy to share my my so-called
secrets you know it’s of course the DNA
program the training program that I went
through extensively well you’re up next
say you’re up night so that’s why you do
that so you say your own accent alright
appreciate it that out we’ll talk to you
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