139 [The market doesn’t care how smart you are or how much information you think you have. Jun 18, 2020]

  • I wasn’t even looking at the markets much yesterday, but most of my stocks were up like 3/5%, OPES was up more than 30%, I made like 700k yesterday, just by holding a portfolio, that’s the magic of a great market. If anything is an easy dollar market, this is it.
  • There were some insane intraday shorts yesterday, like this CLIR, I wish I’d watched this one, was a day2, was just so perfect. It had a pop out of the gate, started peaking, put in a lower high on the 1min, failed at vwap then it faded, retested vwap and failed, then it faded rest of the day. Now it’s gapping down, it was a very very clean setup.
  • APT, I hate this thing too but we are starting to see some more corona related news. Bought some APT and LAKE late day yesterday. MRNA looks great on the 60min, these things starting to move.
  • BILL, a few more days, the entry was $5-6 lower. Now would be a chaser’s entry. You’ve gotta buy stocks exactly at the right time, right time and right price, if you want the edge. It’s very important to buy them as soon as they start breaking out. Not on the second day after they’re already up a bunch from the entry point. You gotta buy as close to the base as possible, if you want an edge. Chasing is not good, just wait, there are so many other stocks starting to setup. Or you could buy a pullback, to the rising 10/20day, absolutely.
  • MSFT is not a trading stock, it’s way too slow. ADR is 2.4%, compared to something like TSLA 4.2% or SHOP 4.9%. You want stocks with high ADRs. Security selection is very important to this game, you want the fast moving names. You want the fastest moving, most liquid names, when you’re trading, cut all the random stocks out. It’s very hard to do, it takes many years. You only want to trade the best of the best. You can get more bang for your buck on faster stocks.
  • ENPH, bounced off rising 150day yesterday after a hit piece, prescience point, they also put out a hit piece at $6 in 2018 [25/07/18] with a $1.01 target. Then they hit it yesterday, the stock is over $50, idk what to say, it’s 50x their price target.
  • MGNX, it’s just one of these random illiquid stocks, these types of stock don’t have any institutional support, they’re just retail pumps, then they go sideways, just very random. ARCT, that’s a very random entry, there’s no edge there. You gotta find clean setups that are close to their MAs, this thing had already bounced well off the nearest rising MA, the 50day. Also try to focus on stocks that have rising 10/20day. OSTK, this day was a 5* setup, you have a clean move up, it pauses, goes sideways for a while, puts in a tight range, then it bounces off this rising 20day. These are the types of setups you should look for. Rising 10day, rising 20day. BILL, the entry was on this day here where I bought it. It made a big move, had a pullback, undercut the 20day but then it started shaping up, got tight and broke out of this tight range. You gotta buy these things just as they come out of tight tight areas.
  • Best way to identify stocks with institutional support, they’re linear. They keep surfing these MAs, they build hls, they bounce off these major MAs, and they have constantly high volume, they’re mostly mid and large caps, if it’s a small cap it’s probably not institutional grade, they move a little bit differently.
  • I look at the MAs, do my stocks close below the 10day/20day, if they close below the 20day there’s no reason to hold the stock. Unless they’re putting in a higher low, then I can hold some but I would scale out. There’s no reason to hold through bigger pullbacks, especially if you have big profits in a stock, it’s better to wait for the correction to end and then just buy the new ones that emerge. But you’re not gonna be on margin when the market pullsback, bc you’re gonna have rolling stop outs. You won’t go through a market correction on margin.
  • I sometimes hedge by shorting the triple etf, but only when I get a good short setup, like TQQQ, I did see a good short setup. It was straight up, then it gapped down and took out orls midday, that was a good short setup. I always want price action to confirm.
  • Get tc2000, look at the monthly chart, then you go through every US stock. Instead of vol look at dollar vol, so you look at stocks which have like 1B, 5B monthly vol or whatever, just to avoid the thin stocks, get the more liquid ones. Then you go through all of these, look for the stocks which doubled in six months, or went up 3/300% in a year or like 4/500% in 3/4 years, create a separate watchlist for all the stocks which made big moves. Then you’re gonna look at chart patterns, how do stocks move? Stocks move in a very specific way, you get the same chart patterns occur over and over and over again, there’s nothing new. Yeah there’s some variations of them but you got the same chart patterns in the 90s as you get today. Just look at price action, I also use MAs. Then you look at the biggest moves, how did they act? How do they act in a pullback? Which MAs do the best stocks obey? Build a database in your head. Print the charts out, Evernote, I have 10s of thousands of charts, then you look at fundamentals, and news etc, what is driving, what makes a stock go up 500% in a year? That’s what you need to do to get your returns from double digits, to triple digits. You need to spend a lot of hours, on you.
  • Guys you only need one bull market to get rich, and change your financial futures. You only need one. Learn the setups, learn how stocks move, learn what moves stocks, memorise the patterns. You only need one bull market to change your finances forever.
  • Trail stops and sell some into strength. Then you don’t have to worry about a pullback. Like PDD looked scary when it was straight up it was far above the 10day/20day but I was like I’m gonna wait for the close below the 10day before I sell a big chunk, then the 20day to sell all. Look what it did, it undercut the 10day, I did size down some just being safe. Then straight up since. Same with SE, on this day I was like aw I’m gonna give back all my profits, nope, just bounced off the 10day and straight up. One of these days it’s gonna top out, but that day could come at 150, so that’s one of the things I learned when I studied stocks, no matter how high a stock has gone, as long as it’s above the 10day, it can still go much higher. That lesson I learned several times on TLRY, this went up 1000% in a month, TVIX same principal, TSLA another, bounced off the 10day every single time.
  • NVAX, this is what a perfect htf looks like. You have a big big move, it’s a momo leader, pulls back goes sideways, gets tighter and tighter, you can clearly see it on the daily chart, look how tight it got. Bounced off the 20day, then it got super tight, then it broke out of this range. Look at this candle, where I bought it, 48 ish, I had 3 entries on it. Look how perfect it looks, hls on the 60min, then you get the b/o candle. This is a 5* setup.
  • FVRR, this was a good setup, it was riding the 20day, took a pause, put in a tight range, then it broke out of this tight range. If you would buy it now today, this is chasing, the tight range was down here in the 62/63s was the entry. Now this is just a random up candle of a random chart pattern, there’s no edge here. You have to wait for the specific entries guys. If you wanna make it in trading, you have to wait. You need to study how stocks move, you have to buy at the low risk, high probability entry points. You need to learn these patterns, there are no shortcuts, you need to memorise. Once you see it, you can’t hesitate, you have to attack it. That’s where you need to be at.


  • One second I have a phone call..
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