176 [If you trade random stocks and random setups, you wll have shit results. Aug 17, 2020]

  • Covered GSX and OSTK in premarket, they’re pretty strong. The key is you get stopped out you get stopped out, otherwise you’re not gonna make it.
  • JD had some nice earnings, breaking out of a really good looking flag, slow moving stock. Bought a starter [20kshares], straight down from open didn’t see, using lods as stop. Stopped out, 83k loss, what a pos. Back to highs, hate when this happens, should have just waited for the open, would have saved myself 83k, I wouldn’t have bought it the first time bc it just went straight down from the open. Got back in [50kshares] this is a really really good setup, slower type of stock but 5* setup and it’s gapping up on earnings, that’s my fav type of combination. That’s the problem with these big big stocks, they’re a bit choppier, the lower ADR stocks tend to be choppier, and the bigger the mcap, the choppier they are.
  • RIOT and MARA rebought some on friday, third/quarter size, they just keep coming back. Starting to move, bought back RIOT half and more MARA.
  • Added to NVAX short [orls]. Stopped out, probably wants to run to mid/high 150s, if it fails at the 10day I’ll reshort it.
  • Also added to CVAC short (from premarket) [orls]. CVAC taking out lows, for those of you who short, that was like a 5* setup. CVAC building lhs intraday and staying below vwap. Covered up about 25% so far, think this thing could go sub 65, this thing priced at $16 Friday and went to 86 today, that’s just insane. Right back at vwap. Added some. Right at vwap, if it fails I’ll add more and if it reclaims, I’ll cover.
  • Selling INO, bounce is losing some steam here.
  • RDFN was a good setup 5 mins ago.
  • Bought a bunch of BILI, been surfing the 50day.
  • KNDI nice follow through from Friday late day breakout. Not an obvious setup, would have been better if it’d closed a bit stronger, but you know pretty decent, big momo stocks, pulls back went sideways, started surfing the 10day, took out this couple of day range. Would have been better if this day was a big tighter, but it was a good setup.
  • If you wanna make it in this game you need an edge, I just see people mentioning these random stocks, where’s your edge? Just gonna be another statistic, 99% of people in this business, they don’t make it. The shorter your time frames the less your success rate. You really really need an edge to avoid being one of the 99%. And to have and edge you need to study, you need to study setups, you need to study how stocks move.
  • If you wanna make money in the stock markets, you need to get the randomness out of it. There’s always gonna be random stocks doing random moves, you want something predictable, something that works over and over and over again, that’s how you make big money. That’s how you become the 1/2/3% that actually make it in this business, instead of becoming another statistic.
  • BLDP, this was a great setup back in June, this is a 5* setup. You master this setup, you’re gonna make many millions. Many many millions, and only you decide what the limit is, your own abilities decide what the limit is. The great traders will make tens or hundreds of millions, the good traders will make millions or maybe tens of millions, and the sh*t traders will make no money, bc they haven’t studied the setups that work in markets.
  • The best names don’t ever pullback, any time you buy a breakout and it pulls back, you know, I usually don’t buy pullbacks bc the best stocks don’t pull back. That’s why I’m not a pullback buyer, I’m a breakout trader. Bc the best stocks once they breakout, they’re not gonna let you in. Well there are pullback setups obviously but I still buy breakouts out of pullbacks, I don’t just buy a pullback, I want a breakout out of a pullback.
  • BGNE is a very good setup, ADR is too low, but this is a very good setup. This is a 4.5* setup, if ADR had been higher. Makes a big big clean move, just been surfing the 10/20day, pulls back, goes sideways a bit and gets tighter and tighter and tighter, now it’s just been surfing above the 50day and now it’s breaking out of this range, this is a very good setup.
  • SPOT setting up, made a big big move, surfed the 10/20day, pulled back, went sideways, now it’s building hls and surfing the 50day. It’s a slower stock but this is the type of setup I’m looking for all the time, it’s getting tighter and tighter.
  • LL, yeah if you got in early, sub 24 preferably mid 23s, pretty decent looking one. Had an even better setup back here, this is the key thing with good setups, they keep surfing the 10/20day, sometimes they have hls sometimes they don’t, in this case it didn’t have hls, it was in kind of a channel, but many times what I look for is hls and getting tighter and tighter. This is how stocks move, they look like stairs, your job is to buy at the exact moment when the next stair higher is forming.
  • The key is you don’t want to be more than 1% of the avg daily volume, I have an exp22day MA on the vol, just to see the avg vol, you don’t wanna be more than 1%. Bc if I buy it and I get stopped out the same day, I’m gonna be 2% of the vol, and if that happens to be a below avg vol day, I could be 3/4/5% of the stock’s vol that day, worst case scenario, that’s also something you have to account for. As your accounts grow, you should increase the liquidity constraints. Take your account size 30/50x, to get the volume cutoff for your scans, I think everyone should use at least 5M dollar volume. You’ll notice when to start increasing it, you’re gonna start getting big slippage and have trouble getting in and out.
  • QUMU this is a 5* setup, not here though, ADR is 5.9%, so you could buy it up to say 5.29 or so, no higher than that, but this thing shouldn’t be in anyone’s scans it’s too illiquid, but it’s a good setup.
  • Well the thing is, a stock doesn’t have to go up, but when you have a parabolic move, especially if you know it’s a pure pump job, which most of these stocks are, the parabolic shorts I do, they’re gonna come down eventually, but the question is how much are they gonna go higher first. That’s why you need to develop a specific setup, otherwise you’re gonna blow up very fast, but they always come down 70/90% eventually.
  • If a breakout closes really really weak, I think you should sell it, even if it doesn’t stop you out, there’s no point in sitting in a stock that didn’t go on the breakout.
  • STNE yeah it’s setting up, it had a really good setup here, this is like a 4.5* breakout, now it’s setting up again, in a couple of days, if it can go sideways here so the 20day can catchup, looks good.
  • CALX is setting up yeah this is a 5* setup in the making, this is exactly what you should be looking for.


  • Trading is easy. Trading is so easy that 99% of people that try it become millionaires. I promise you guys, those of you that are new to trading, it’s gonna be the easiest thing you’ve ever done.
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