208 [A lot of wisdon today the last 50 minutes or so. Oct 9, 2020]

  • TSLA sold before the close yesterday, didn’t like the weak close on it, fell back into base, but it is building hls, if it starts taking out that mid/high 430s area, gonna rebuy it. Looks fine, was just a little bit of a shakeout, only reason I sold for a small profit was I had to size down on my margin a little bit overnight. TSLA putting in a nice tight candle today, if it can keep this tightness today this is gonna be a 5* setup for Monday, as long as it doesn’t put in a wide candle.
  • SEDG never reentered, there was one daytrading entry on it when it briefly reclaimed vwap and then built the first red 5min candle, that was like a daytrading kind of an entry.
  • AAPL looks great, holding the rising 50day, undercut it built hls, now it’s surfing the 50day tightening up, looks amazing, looks like it wants to go back to 140. AMZN too, this thing also getting tighter, megacaps setting up nicely.
  • Usually when the sh*tty sectors are waking up that’s before a pullback, not always but many times it is, the sh*ttiest stocks are the ones that run the last many times. But all you need to be focussing on are the leading stocks, leading stocks, leading stocks.
  • VVPR, I would say it’s kinda late here, it’s up 60% in premarket, they’re buying another company okay, EV, that’s hot okay but idk about this, this thing is already a ten bagger since summer, idk, can this thing to to 25 today absolutely, but not for me. If you really wanted to get it premarket you should have been on it earlier, when it start breaking out of the flag here [12.50s] and here [14s], this is the third flag in premarket, I just don’t see an edge here.
  • ZM, bought 10kshares 1min orhs, this thing looks so good. Gonna use b/e as long as possible, then gonna trail it with the 10day probably, since it’s already extended, think it’s gonna have one leg higher here and if that first leg starts to fail, think gonna get out, I don’t think it’s gonna be the type of stock that goes higher, pulls back goes sideways has another leg higher, just bc it’s already kinda extended, this is a little bit like squeezing water out of a rock type of setup, but you know sometimes they can work really well. I have a $3.5 stop on it and this thing could potentially run up like 100, the potential r/r is just amazing. What it did, it gapped up, it sold off on the first 1min candle, so now it had an orh, so I put an order for 10kshares hod, next candle it kept going lower, then it suddenly reversed and straight up.
  • The ones that are coming out of strong bases I’m trailing with the 20day, like FSLY, and the ones that are already extended I’m trailing with the 10day, like ZM.
  • W, it was a gap and crap, that’s why you wait for orhs, this stock just crapped out of the gate. Let the stock tell you it wants to go up, no need to sit there and guess which one will break out.
  • I read somewhere that most of the market gains over the past 50years have come from overnight gaps, that’s why swingtrading is superior, bc there’s so much price movement in the overnight gaps. Buy them right and sit tight.
  • If you get stopped out of a stock, you need to wait for a new setup. Setups, setups, setups. Sometimes stocks are gonna shake you out and then go straight up, but if there’s no setup you don’t rebuy it. Think in setups. Guys, once you start thinking in setups, and not feelings/opinions, someone else’s feelings/opinions, you’re gonna make so much money you don’t know what to do with it. Once you learn the language of setups. You need to spend 100s/1000s of hours studying past leading stocks from the past many decades, it’s the same patterns over and over again, if you don’t see the pattern, you don’t trade it.
  • You only need one bullmarket to get filthy rich, if you know the setups, if you have solid risk management, you need one bullmarket and you will have more money than you know what to do with it.
  • 300% a year is totally doable once you start thinking in terms of setups, won’t be crazy. What’s crazy is people buying and selling random stocks bc of random data points; ‘oh it’s going up I need to be in it I’m gonna buy here, oh it’s going down it’s gonna go to zero I need to sell it here’, that’s crazy. If you have solid solid setups, with solid entry and exit rules, solid position and risk management, you will have 1/2/300% year, in a very good market you can easily do 5/600%, what most people do is crazy, having good returns is not crazy, once you have a solid process.
  • MM has an 18k chart database on paper, that’s crazy maybe a bit overkill, but if you have evernote you should build a chart database, there’s no reason you shouldn’t have at least a couple of thousand setups, then trade those setups over and over again. I have 3 setups and variations that I trade over and over again.
  • JMIA actually owned at the ipo, wanted to invest it it, but then it took out the ipo lows and I sold it. The Amazon of Africa, feels like powerful, if they succeed it’s gonna be a 100B company, but rn it’s just a money losing machine and not much growth in it, actually negative rev growth, this is not what you want to see, from an ecommerce company, these numbers should have blown up.
  • I always buy the breakout, I pretty much never anticipate it, as soon as they start moving I buy, and sometimes I add once they confirm, but I’m not gonna just buy in anticipation of a potential breakout over yesterday’s highs I would never do that, I want this thing to actually start breaking out. I want the stock to tell me it wants to go higher, I wanna wait for the stock to tell me ‘hey I’m ready now’, that’s when I want to buy it. You can buy in anticipation, there’s nothing wrong with it, just not what I do personally, I find it better to wait for the breakout, just when it starts breaking out. The problem with anticipation, you want to maximise your profit, you want to compound your money as fast as possible, let’s say I buy TSLA here, what if it takes this stocks 3/4days consolidation before it finally breaks out, dead money, wasted potential, you don’t want to sit in a stock that’s not moving, that’s why I prefer to buy once they start moving higher. Especially in a bullmarket like we are in now, where things are breaking out daily, sitting in a stock that you think will go but is not going yet is just a waste of time.
  • If you have a solid process, solid risk management, you have backtested your strategy, you can trade whatever way you want but you need it to be solid, you can’t do random things. Everything you do there needs to be a reason for it, and you have to be able to prove it actually works, that is has worked for many decades, that is has worked for a hundred years, the same setups I trade now, if I look at market leaders from the 1950s it’s the exact same setups, and if you have a setup that occurs over and over again, trade it.
  • You want to be in a stock only when it’s moving. The principal of swing trading, stocks move in stairs right, has a leg higher, goes sideways and pulls back, this is how all leading stocks move, every stock that has made a big move, moves this way, except for like microcaps/nanocaps that can go up 1000% in one day, but this is how leading stocks move. Sideways, leg higher, like stairs, your job is to buy it just as the next leg higher is starting, just at the right time, you don’t want to buy it cheap, you don’t want to buy it expensive, you want to buy it right.
  • Like FSLY, had a leg higher, went sideways, then it gapped up on earnings [7/5/2020], has another leg higher, goes sideways, has another leg higher, goes sideways, leg higher, then it kinda pulls back builds a big big sideways and where did I buy it, right here [21/9/2020] when it started breaking out of this step and now taking another step higher. And once you’re able to identify these setups, you’re gonna make so f much money you’re gonna feel filthy. It’s all about pattern recognition and understanding which stocks want to go, and what the patterns are, it’s the language of setups, it’s an art.
  • GNUS, it’s a microcap, same thing, had a led higher, little bit of sideways, microcaps can move really fast this is an extreme example, leg higher, sideways, another leg higher and that was the end of the move in this case. Same patterns over and over again.
  • Getting stopped out is normal, it’s all about taking small losses and letting your winners run. I can take 10 losses in a row, then if one stock starts working, I’ll make that money back several fold.
  • If the stock is below yesterday’s highs, it’s not a breakout.
  • WKHS, I bought it [3/8/2020], lost like 100k on it bc it didn’t go, and then it had a good setup here [18/8/2020], then another good setup here [25/8/2020], then another setup here [1/9/2020] but you’d have gotten stopped out if you bought this setup. Sometimes stocks do this, they have multiple setup on setups, look how perfect this thing is, kept building hls then it had a rangebreak, pulled back a little bit had a very tight range, kept building hls had another breakout day, pulled back a little bit formed another hl, brokeout again, pulled back a little then it went. They do that sometimes, sometimes they don’t go straight up.
  • If you want to make it in this game you need to have very specific entries, very specific setups. There’s a lot of randomness, sometimes you’re gonna miss some great stocks, and sometimes you’re gonna get into stocks that go down after you buy them, but you need to do it on solid solid setups. You want to buy it just as the stock is starting to break a range, you don’t want to buy it too high, once it’s already up 5% above that area, you want to buy it as soon as it takes out that area. You gotta be ready, that’s why you build wls, before the market opens you need to be ready.
  • KODK is starting to break this range, this could also be a very explosive setup, you can clearly see the range here on the 60min, building hls and now it’s getting tighter and tighter. You don’t want to buy it on this candle here or here, this was a potential setup right here but this one failed, and now it’s just starting to break this range, could be a potential setup, you blink and it’s gonna be at 50, adr 12.5%, super explosive.
  • Trendlines, connecting some random points I don’t believe in that, it’s the overall trend, these undercuts and overshoots they’re normal, you want to see the overall trend. You’ll see a lot of these trendlines and triangles I draw, the price moves both above and below them, you want these undercuts and overshoots, you want those false breakdowns and false breakouts, that’s where you build setup strength. You need to look at the overall trend, it’s all about visualising the setup, you can clearly see it’s getting tighter and tighter, you want to visualise the tightness.
  • EAT, this is a great looking breakout if you bought it as you should have when it brokeout, yesterday. If you bought it today you bought it wrong. Not a momo leader per se but this is an amazing looking breakout, 4.5*. SHAK too, not a momo leader, but the setup was solid, nice range then it built hls into this breakout, nice range then it got tighter and tighter.


  • I don’t want to have as many followers as possible, I only want quality followers, I only want people who truly want to learn trading, who are tired of losing money, or not having the success they want, that’s the type of people I want to have, those who truly truly want to improve themselves, who are tired of following alerts and losing money and not understanding what’s going on, and they’re tired of it, and they wanna learn.
  • David is not a millennial, he’s not a boomer, he’s just busy.
  • A folder with Brandi Love, like this? I’ll leave it there just to troll people.


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