134 [If you want to make millions, YOU HAVE TO put in the work. No shortcuts. Jun 11, 2020]

  • JFIN this yesterday, I saw this setup, when it was looking like it was about to top out, it was up like 900% on the day. Right here I tried to locate, then it just cracked, retested, retested another time, and then boom down almost 80% from that level intraday. Shorting is a hard game, timing has to be perfect or you’re gonna get killed, and sometimes you can’t get a borrow/borrow expensive.
  • ZM, I bought some late day yesterday when it took out hod and sold 1/3 into close, using late day lows as final stop. Gapping up a lot, I think this thing gets going, could go parabolic, is super strong they just can’t bring it down. But I was very careful with it, tight stop and once I was up 1-1.5x initial R I just sold a third to lock in some before close.
  • The reason I sold very aggressively (ZM, PTON, TWLO) into close, I usually don’t sell first day, but I took on some decent exposure and the markets are extended and I just wanted to play it safe, we could go into a phase when things start going crazy, even crazier than they have been, bc we still have had some good setups, but instead we got a little bit of a rugpull but that’s fine, I’m ready for it. It’s called being aggressively defensive. You can be aggressive but still play defence.
  • TQQQ shorted some pm, just hedging some of my long exposure. Short 15kshares, will add another 10kshares orls. Added more orl stop hods.
  • Some of the cruiselines/airlines could bounce hard today, many of them are very close to their 20day. Okay bouncing hard, covered all, not gonna play the bounces. NCLH entry was orhs, 1min then secondary entry 5min orhs, if you bought any higher you are in God’s hands. I hope you’re following the orhs rules guys don’t chase these things. These bounce plays, this is pretty much the reverse of my parabolic short setup. Wait for the setup, buy orhs, sell some into pops, and hopefully this thing can bounce back to low 20s in next few sessions (NCLH). I don’t think we bounce back to the highs in the short term, but they could very easily bounce back to yesterday’s highs. Sell into pops and trail the rest.
  • Idk if we’re gonna get a big pullback, the SPYs right on the 10day, I think we could very easily pullback to the rising 20day, that would be a normal market pullback, 5% pullback, that would be the first stop. Can we pullback more? Absolutely, but I fully expect us to pullback to the rising 20day, I would surprised if we don’t, considering how much we’re up, QQQs up 50%, rising 10day and rising 20day have been major support so far. You should all be prepared for it, I am fully prepared for it.
  • MRNA gapping up on news, I just bought 20kshares bc why not, gonna buy more, 25kshares now, this thing looks very very good. MRNA what I see, this is a variation, you’re gonna have to know when to use it. This is one of the best momo stocks in the market, it’s a hot sector (corona) very hype stock, had a big run, went sideways, broke out, went sideways, broke out, then it pulled back to the rising 50day, had a perfect bounce, how it just went sideways, built higher lows, now it’s coming out of this range. It’s above this 20day, if it can go sideways, build some hls intraday, then starts breakout out of this consolidation however it builds a pattern, I’m willing to buy it back.
  • I have no patience for stocks that are not going up, there’s no reason to just sit here in stocks that don’t perform.
  • There’s no reason for a crash, crashes don’t happen at the highs. Guys, if you study every market crash in history, they usually start below the 200day, below the 50day. Go back and look at the market indices for the last 50/100years for the DOW, no market crash started when the index was above the 10day/20day. So no, could this be the start of a bigger pullback? Yes, but if you’re looking for like a freefall market crash, it’s not gonna happen above the market MAs, there’s just too much dip buying, so don’t worry about it.
  • Go and study market action, market behaviour, and you’ll see for yourself, then you can turn off the tv, all these idiots calling for this and that, bc you know that’s not how markets work. Guys, all of you should really invest in yourselves, if you wanna make millions, you really need to put in the work. You can’t sit there and follow other people, it’s fine to ask for advice but you should go back, like what I did. I went to tc2000, this was 6-7 years ago when I started my market research project, I went to US Common stocks, I went through all of these stocks. Just pull up the monthly chart, went back as far as I could, looked at all the big moves, every stock that went up at least a few hundred% in a short amount of time, or thousands of percent over a period of years, I just put them in a watchlist, then I went through. I looked at price action, news, earnings. Let’s just pick some random stock, MSFT, I’m looking, this stock went from 10c in the 90s/80s, to $53 in 00s, that’s a 52000% move, what the hell makes a stock go up 52k% over 13 years? Earnings and Rev growth, boom. Look at something like DPZ, went from $2 [09] to $400 [2020], 11 years 16000%, why? Earnings and Rev growth, so I started seeing these patterns. Then you also look for shorter term moves, and all of these are chart patterns, it’s the same patterns occurring over and over and over again, there’s really no rocket science involved to make millions in the markets, all you have to do is learn the setups, patiently wait for them (not do much when the market conditions are not correct/ are not well). When there are no setups, you don’t trade much.
  • The last really good one (biotech gap up) was AMRN, late2018, it had enormous vol, back then 100M volume in a double digit stock very rare, this one broke out late day, had already traded 50M shares or more, it was just huge huge vol. I was actually short it earlier in the day, then I switched long. Gap up, almost 300%, but then I saw the vol and I saw it’s gonna take out orhs and I switched long. This thing more than doubled in just a few weeks. On these sometimes it can be hard to know if it’s gonna go, how good really is the news, is it gonna fade back? Sometimes even high vol gap ups can fade back.
  • You wanna make millions? No shortcuts. I wish I had a midget, or AI that did these things for me. You have to build your own AI in your head, you have to be a pattern recognition machine. I have hundreds of thousands of these notes on my charts. Bc if I pull up a stock I just instantly want to see the story, the earnings, if I pull it up.. okay yeah it’s that stock, they had that news. You wanna make millions, you gotta work for it. And once you get it, once you really get it, you’re gonna make so much money, you don’t know what to do with it. I promise you this guys, I started with like $5k when I first started 2010/2011, I blew up 4x the first two years. Now in the past two and a half months I’m up like $6M. Pretty much 40% of all the money I’ve ever made in the markets I made in the past 2.5 months. That’s compounding. I don’t do a lot, I bought an expensive car recently, I bought a house, but I don’t do much, I just enjoy life. You know the nice thing about having a lot of money, you don’t have to worry about money. Everyday I make a decision like, should I trade today? So far, the answer has been yes every day, but there will be a day when I’m like f*ck it, I’m gonna do something else. Just that feeling having that freedom to choose, 95% of people don’t have it. They have to be at a specific place at a specific time, or they’re f*cked. Anyone can do this, I promise you guys, anyone can do this, you just have to put in the work. Stop following the news, unfollow all these idiots on twitter, every opportunity you have to learn, you have to assess is this working, is this not working, you have to study past actions. Like I said, same patterns repeat over and over again. I’m pretty much doing the same thing over and over again. I have two main setups, breakouts (either earnings gappers or htfs I’ve been playing lately, at least a variation) and then mean reversion setups. Just three setups, and some variations of those, I’m doing over and over and over again. Ditch what doesn’t work, keep what’s working, scale out when a trade goes for you, get stopped out when it doesn’t work, and your money starts compounding. If you double your money every year, just do the math, that’s what’s possible. You just have to believe it, you have to believe you can do it. That’s why you need mentors, you need role models. I’ve had probably a dozen mentors over the years, I’ve taken one or two key concepts from everybody, then I’ve moved on. Something that makes sense to me, implemented it in my trading, then I’ve moved on. I read in some article, some guy who has a net worth of a billion dollars, all he traded was orhs and orls. He did it on futures and commods, started a fund. It’s great for risk management purposes, catching new trends early. Earnings gapper trade I got from stockbee. Parabolic shorting those I got from different guys; I heard first from sykes, then other guys like investorsunderground.
  • I really don’t believe in resistance for stocks that are at all time highs. The best thing to do with these kinds is just sell into strength, every time they go up 5-10% sell some, then just trail with the stops, use the 10day/20day, slower stocks you can use the 50day.


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