262 [I may have a $10M week going on here. Jan 7, 2021]

  • BE, after the market corrected the last two hours I sold it into the close bc it closed weak, I closed down some of my longs, and now look at it, but we could have gotten a gap down like this, so I did the right thing, when you play around on margin you’ve always gotta play defence first. If you’re on margin and things don’t act perfectly, you gotta size down, that’s the key to trading on margin, otherwise you will become a statistic.
  • NIU bought orhs.
  • The key is, these types of sell offs, no matter if there is news or no news or whatever happens, those events test your rules, and it’s a good thing, you need to be reminded of your rules now and then. This market has been such an easy market to trade, it’s good to have some kinda stress also, that tests how sharp you are, bc it’s easy to get sloppy and fat in this market.
  • What this market is doing rn, this also happened many times before, it kinda stops people out, traders who have specific sell rules they get stopped out, and then the stock they got stopped out of reverses and goes straight up, we’re in a market where everything is going straight up most of the time. And what happens is, when enough people start believing that stocks will never go down again, there will come a point where rules will start to matter again, but rn everything is straight up it’s pretty crazy.
  • DOCU, could work it’s been relentlessly building hls since like Jul2020, still inside of this range, gotta have a bit wider of a stop maybe, I think this one is maybe better to trade off the weekly, I think if you buy it here with a wide stop maybe to the lows here to have some wiggle room, bc this is just a random up day as far as I’m concerned, and it’s had a lot of random up days over the past 6months so idk.
  • If I’m gonna use more than like 130% margin I usually have both longs and shorts on, I’ve never been a trader that goes like 200% long, I know some like Zanger had super returns back in late 90s, turned like 15k into 42M in 2years, he’s the kinda trader that can be like 200% margin in like 4 stocks. That’s the thing, how do you manage risk if you have 50% of your money in 4stocks each, if you get a FSLY type of gap down you’re done. That’s actually what happened to Zanger sometime in mid2000 I think, he had a big drawdown lost like 70% of that 42M, he was heavily long some fibre optic stocks or something and then one of the leaders pre announced disappointing numbers and they all gapped down, and he got killed on it, that’s the downside of being so heavily margined like that. I’ve seen too many times myself when things have gapped down a lot, even lcap and mcap stocks, so I realised early I don’t want to be that type of trader, just not worth it, especially if you’re a swingtrader on the long side, most of your money is gonna be made in up or sideways markets, and there’s so many sectors, so many stocks that make big moves, it doesn’t make sense to put all of your money and be heavily margined in just a few stocks, how do you know those 3/4/5stocks are gonna be the best performers?
  • TSLA pretty amazing, who would have thought that TSLA was gonna go up 1600% in 8months, that’s an insane move, if I had known it I would have put all my money in it full margin and I would have bought a TSLA to support the company, but I don’t know anything. I think TSLA has a legit shot at going to 1000 this month, especially if it starts speeding up like Jan2020, was just grinding higher surfing the 10day and then it started speeding up, look at the speed up these two candles, the stock was up almost 50% in two sessions. I think it could legitimately happen to TSLA again, maybe not 50% but here it’s surfing the 10day, it only has 25% to go to get to the 1000, I think if it happens it’s gonna be a really really big shorting opp, mean reversion back to the 20day maybe even the 50day. But rn I’m long and strong.
  • CLNE, congrats to those who bought the breakout 3days ago it’s straight up since.
  • This is the market, you gotta get it while you can bc it’s not gonna last forever, things will go down, one day, one day, so you gotta dance while the music is on.
  • ICLN shorted orls. ICLN I kinda regret, it wasn’t really as extended as they need to be, it should have been up at least one more day, this was a mistake, you know what I’m gonna cover it at once, not even gonna wait for the stop to hit. What I just did I eliminated a mistake, I just realised it’s not a good setup, and I eliminated it. If you realise you made a mistake, the best time to correct it is right away.
  • SOXL I was an idiot, I didn’t follow my own sell rules, I moved my stop to b/e too early and I just sold it once it hit b/e, that was like 452 something like that, that was literally the lows of that day, it stayed below that price for like 1min then it went straight up. Man every time I’ve broken my sell rules that’s the main issue I have, I really don’t have any other issues in my trading.
  • BABA there is no reason to look at stuff like this that is in a downtrend, all the MAs sloping down, had a big gap down, this is no the type of stock you go looking for setups, you look for setups in a stock that the MAs are sloping up, a stock that is trending higher, this is a stock that is trending lower.
  • Nasdaq prices are supposed to go up, that’s what the stock market does, it’s been doing it for a long time, cash flows right, if you look at Dow Jones the annualised since 1915 is 6% annualised over more than 100 years. Let’s look at from the Mar2009 lows, up 14% annualised, but that was coming off like 20years of sideways market just looking straight at the DJ-30. We’ve had asset inflation for a long time, DJ-30 has been in a bull market since Jun1932.


  • Guys should I do a 1M giveaway to someone in the chat? F*ck no? There’s actually 60% of people in the chat saying no. Divide it evenly, 517 people in here, so everyone should get like 1900 bucks, that’s called stimulus, I’m stimulating my stream. Go to M with that, spend your 1900 bucks in M or JWN.
  • Brandi is on SNAP? Okay I’m gonna download.
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