 Hey traders, this is T Bradley 90 from the My Investing Club chat as a special gift to every viewer on YouTube There is a link in the description to apply for a free breakthrough trading strategy session with myself What does that mean? Alex created a free trading course for beginners and at the end of it We will be selecting a few non-members to get on the phone with myself Tosh T Bradley 90 to help with your trading click the link in the bio watch the video and apply today now While today is just a preview of the full-length video if you want to watch the full-length or any of our exclusive content then become a member of MIC So the first thing that kind of veteran traders will know is that nothing is 100% meaning nothing works 100% of the time but Not only is not every idea 100% not every trade is going to be 100% on the timing aspect That's why I put it twice and so traders deal in terms of probabilities, right? So a trader will never say something like I'm going to short the death line Because stocks always tank after the death line if that's if that's your mentality. I Think there's a little something wrong there Because what you're thinking about is what's going to happen after my entry, right? But you're not thinking about what you have to risk to get there, right? A real a true veteran trader will say something like I'm shorting the death line because I know thanks I'm shorting the death line because I know the probability of the stock Reclaiming the death line is very low right see how the mentality is a little bit different One is thinking about risk and one is thinking about the game right up so Trading is putting your bets with the probabilities while taking risk-rewarded to account and accepting that losses are a part of every strategy And I'm going to emphasize that last line, right? Losses are a part of every single strategy death lines are not 100% there are losses attributed to the death line set Low-hanging fruits have you know a loss incorporated into you know when low-hanging fruits lose Where do you want to be losing right your your exit strategies your stock strategies force for your? your setups need to be taken into account when you're when you're adding up the vast Number of trades you take right because this Joe kind of hits it on it's not one trade That's going to make your trading career It's going to be a thousand trades right a thousand trade a thousand trades It's what's going to determine the setup not one trade right and you can't go changing your one trade Because then you'll never know what you know if it's a good trade or not So knowing that nothing is 100% is something that like of that You know someone who can sustain the market for a few years will know Putting risk first and this kind of goes into what I was just talking about Wearing the risk management hat right versus the gain-seeking hat is Is the way a successful trader who's going to survive? Which you know the training world the stock market 20 years has to be you know if you're always looking for the game And I have I've seen traders blow up on Twitter You know that I've seen Twitter Twitter traders come and go and you just you just kind of be like Oh, whatever happened to that person like they're gone And you know almost you can pretty much assume that they blew up because you know they posted flashy gains And that's also another indicator right if you see someone on Twitter and they're always posting games, right? That means they're very game-happy, which means yeah, you know, you know what's coming next so Recognizing the symptoms of the risk management hat versus the gain-seeking hat some things that you'll notice when you're Focusing on risk management is that you'll always determine the dollar amount of risk you want to lose before you enter the trade as opposed to You know getting in and then thinking about where where am I going to profit right when you get in this is a good This is a good question to ask yourself when you get into the trade. What are you thinking about for what's the first thing you think of? What's the first thing that you think of where can it go or where's my stop the first thing that that should come in mind is The stop at the stop right because that's how that's how much you're going to know is the risk And that's even going to know if you should even take the trade But no one wants to short a stock of five dollars if the risk has to be seven so Planning your entries exits and ads I think are the most important part of Recognizing if whether you're entering into a trade where you're managing your risk or whether you're looking for a game Right is where how you add right because a lot of people a lot of us will start into a stock short as it's going parabolic and We you know you'll see the first red candle of the parabolic movie at top That's it. You are look you right now are looking for the game you're looking to get all your size at the top and most of the time it's not going to end well because You're just you're just looking for that ad right as it like that's that's what I call a candle base entry And you know I put candle base entry like I can also put level two base entry This is when you see something when you see the level to flash really fast and you get that immediate FOMO FOMO is it? FOMO is literally a derivative of greed right you need all of your entries exits and ads to be planned when you're when you're The difference is when you're watching a stock of parabolic and you're scaling in you should already have maybe even said out loud And I do this Say out loud prior before the trade if this thing rejects off eight hard I'm going to add into that candle whereas instead of just seeing it rich hard reject off a and be like only that's it Right, there's one the big difference there. It could be the same entry, but one is planned and one is candle base level two base FOMO base, right? Great in your setups if you have a piece of paper written down and all of your setups have a different risk attached to them Like I've shown in my webinars that that right there shows that when you enter the when you're approaching the trading day You have an idea of I only want to lose X, right? I know I want to make X. I want to lose X It's all about your priorities, right stop adjustments and this could be trailing stop adjustments This could be Seeing you know having an original stop idea and then watching the stocks range did you know? Dramatically increase like past your expectations. You might want to then say I need to adjust my risk, right? This is a symptom of wearing the risk management have as opposed to you know when a stop for an ad is in perspective meaning let's say you decide to add to a stock that just Put in a death candle, right? And you think it's good that that ad right there Is normally going to have an a risk based off of the top of the death panel, right? This is something that toss free just right and if you add that's I think that's totally valid You're trying to get a full-sized set up on a trade if you don't you know Have that ad have us have a risk if you don't have a stop attached to that ad that respects the risk You're not looking to manage risk, right? You're looking to make a gain and traders are innately risk managers not gain seekers Right and one bad side about risk management is sometimes you end up being partial sized for winners, right? Like you notice about today on his first bounce He didn't go all in one shot at that opening first bounce because how how how you know in the weeds Would he be would he have been at 670, right? And so he was in 200 shares. It's a symptom It's gonna happen, but because he had risk in mind that you know that was That allowed him to make a win on that trade with a decent risk and The number one symptom is always going to be being oversized on your losers That's just what's gonna happen every single time if you put game first instead of risk first So that'll also touch on this it's being started with your process, right? deviating from your process is a very very very very slippery slope because What you're doing when you're trying to deviate from your process is you're trying to cheat your system, right? And as I just said every set up every strategy has a loss attached to it Now if you try to cheat your system, right? There are times where you can probably deviate from your system and make money But what you're doing it now you've entered the gambling game, right? Because if like you can maybe like Add one last ad outside of your plan risk and it might work, right? You think oh, it's just like and you're gonna get rewarded for it, right? You might get rewarded three times or even and this is even bad, but when you deviate from your process Eventually, it's gonna catch up eventually it's gonna catch up And it's not gonna be ever worth it at all in the long run like a few if you deviate from your process a hundred times And you're gonna be your accounts gone, right? So you're always gonna have the question sorry You're always gonna have the question can you get away with this deviation? And you know I would say a lot of the times the answer is going to be yes You can't but how do you know it's not gonna be the one time that? Erases all the other wins from deviation right and even the wins that did not come from deviation, right? Can I do it just as once can I trade MTC or PSTV? You know I don't normally short these stocks is 50% institutional ownership and it's it's a you know It's a under one million share flow of stock, but it looks really parabolic right here. I think I can get the top I think this is it and you might win, but like You know what's gonna happen when it's an LFI end or a PPTH, right? MTC is an example of one of those right this if you did break your rules. I mean it's gone right MTC or PSPV those ones are the ones that are gonna wipe you out So like you know if you're if the question is ever just this once the answer is no right like so don't So always be aware that you're gonna have a process and you're gonna be seductive into breaking it because you think you can get Away with it and I'm still it's not worth it, right? This is not the mindset of someone who speaks to their process, right? This is why about a super anal about his his process because he knows he knows the one time It only takes one time So why would you ever take a trade that only takes one time, right? Why would you ever break a process when it only takes one time to break the process to blow up, right? It's like it's like something I relate this analogy when I wash my knives the wrong way I'm like, I never cut myself. Well, why would I ever do that, right? Why would I ever wash my knife the wrong way? I could get away with it I could probably get away with it a lot of times But why would I ever do that like it because it only takes once to cut myself and then the second I cut myself It's like all the other times washing the knife the wrong way It was kind of pointless because I cut myself eventually so The risk to reward of keeping your mental capital intact is the biggest That is the biggest benefit of being stern with your process, right? Because the risk of what happens when you break the MTC rule, right? Or the PSTV rule or the PBTH rule the risk of that your mental capital is gone You're just going to be kicking yourself in the dump and how do you expect to trade tomorrow when you're kicking yourself so hard today, right? The reward of keeping your mental Of keeping your mental capital intact is being able to make the same amount of money that you would have on MTC tomorrow on a better stock, right? So you everyone always thinks that you have to make your money back on the same stock if you lose Everyone always thinks that you have to do the logic, right? Everyone always, you know has this fear and this this fear of missing it, right? Coming into the day fresh is going to make thousands more dollars in the long run. It's just You don't have to do it, right? You're keeping your mental capital intact is going to always keep you fresh And so basically this is what I'm talking about is opportunity costs, you know Like the opportunity cost you're going to miss tomorrow because you messed up MTC today It's going to be more than you would have made on MTC today because you know if you did decide to break your process on MTC Or PSTV, you're not doing it with like a five thousand share order You're just trying to be cool. You're trying to be quick You're trying to short trying to get that super top, right? And like you know like you know that you're going to go smaller in it But like it's so easy to get trapped the the risk of that happening and just you know feeling lousy about it the next day You know when you could make more the next day on one of your A plus stocks all right, so the topics today are going to be stop-loss types and mental versus hard stops and another one a daily profit stop and Then we're going to do some basic chart analysis here If you don't know who I am I'm Joe Kelly three and a half years trading Momentum small caps and OTCs and I do a lot of data analysis and risk management that is like my strong points, so This is a quote that I heard a long time ago And it holds very very true To trading as well and this was actually this quote was was I heard when I raced motocross and But opportunities and it relates to the market to opportunities in the market or like a bus Every bus keeps coming along right there's always another bus right around the corner, but if you don't manage your risk properly You're gonna be stuck under the last bus and you're gonna give a rant over and you're not gonna be able to trade the next opportunity So that's why it's always important to survive and be able to trade the next day So we're going to go quickly through types of soft losses just so we don't get too In depth with it Maybe so the first one is going to be like a is going to be a price-based stop So it's very simple high day low a day Higher high and lower low you're basically just analyzing a chart looking at price levels Deciding where the best stop loss is If you always find yourself stopping out when you place a stop loss guess what you're part of the herd That's why you keep getting stopped out is because you pick the most obvious place That is a stop loss on BLIN on Thursday, and I think I told the story like four times I saw a member post that he just stopped out at like the 260 level after it like I went all the way to Korea and then and then here's three or 260 like stopped out. I Took a screenshot of it. I was like top indicator Because it just stopped out of resistance, right? It just stopped out at the most obvious level Or somebody would want to put a stop loss. So When you're placing a stop you have to ask yourself two questions is the risk-managed It isn't an obvious stop loss if it's a short buy a straight and you're placing an obvious stop Sometimes you don't have an option like your only option is it's high day, right? Somebody will use pre-market high somebody use high day. Whatever it is It's an obvious level But when it breaks you have to watch and make sure that it doesn't just go And then crash again because like Yuma today Yuma had a high day at 390 breaks the high day goes to 395, and then you're right back under nobody trapped That trap longs more than anything Because it was barely a breakout Breaks fails and then it grinds and it tries to recover We had time-based stops So this is a different level of risk management to where you're giving your trade a certain amount of time to work Or a certain time of day That once this time of day happens this set of no longer is valid This usually doesn't happen after like first bounce for example if the first bounce doesn't happen within like the first 15 minutes Or 30 minutes of the trading day You're not going to go into the late day looking for a first bounce. That's going to be like the 40th bounce You don't go into 2 p.m. Looking for something to parabolic and pull back going to go again Know the optimal times of day to place a stop loss and to use a time stop now the second part to that These are some of those basic time frames would be 10 30 Which is the zombie time as everybody likes to either stop out if you're short But if you long by this you probably start to look to accumulate dips and look for a move higher 2 p.m. Or 3 30 p.m. Those are general fade times or reclaim of trends to move to higher highs the next part This is the number of bars for the amount of time that you're in the trades since you've got the entry So this would be what you call edge decay. So edge decay is You take a trade and In 30 minutes It still is not going your way, but it still has an issue stop, but it still has an issue target Is the trade still valid? Or does it caught in consolidation now? You you bought for a first bounce and it didn't immediately happen After five minutes, it's not a first bounce anymore. It's just consolidation So you have to know how long it usually takes in order for this trade to work So you don't get caught we were talking about buying higher lows So make a look at a chart and no god see making higher lows and then they buy it and then it just Kind of goes back And it does nothing, but they're like well my stop has never been hit so I say the trade But my target has been either so I just say the trade. Do you really need to stay in the trade or do you really need to just consider it? failed trade Take it off for breaking the baby lose two cents maybe lose five cents whatever it may be you stop out when the Chart tells you hey, no, it's really just kind of doing this. It's not working So now we're going to talk about order types to use for risk management. The first is just being a stop order That can either be a market Stop which is going to basically be If I short here by here it hits this level I market order out of the position Everybody goes. Oh my god. Don't use the market Use a soft limit one time and tell me if you don't want to stop market Because it's going to go hit and trigger your stop and then you can pull right past your limit. You're like Should use the market Trailing this one is actually really good to ride Trends for example, if you're a long-dice trader and you want to stay in a certain position Let's say like you went today If we used a 30 cent or a 50 cents trailer after we enter the position as It continues to bounce and ride up and ride up and ride up and ride up We only stop out if it drops from the highest price 50 cents or more. That's when we finally stop out in small caps using a trailing stop is really risky because of the volatility so I Never recommend anybody uses a trailing stop until Later in the day Don't use a trailer in the morning because you're just going to get whipsawed out of it and you're going to bottom ticket But later in the day once it joins trend That's when it becomes More smooth like after an hour of the day you pretty much just watch paint dry, right? That's just to stop this trending or channeling whatever it may be Trailing stop would work good in that period of time a range stop or a range order consists of two things a Stop loss and a profit target all in one now What I do with range orders is I don't bulk my entire range order into one so if I have 500 shares But I want to scale out of that position. I can use range orders to do that I'm just going to submit five range orders for a hundred chairs or two or two fifty or three or some strange number But I can scale out of that position as it goes along now one dangerous thing to pay attention to and always be aware of This is why you don't walk away if you have a range order in or stop loss for that matter If there's a partial fill on one side of the range order either your target or your stop It won't execute the rest of it. So you have a hundred shares. It fills sixty seven the rest stays Unless It goes in the direction against you fully, right? So the stop is at five. It goes to five You execute sixty seven shares and then it drops You still have 23 shares You don't have it didn't stop you all out or the worst part. It hits your target, right? It comes down or up to you and you take sixty seven shares off And you're still stuck the rest and you're like, oh, well, it's okay. I'm sorry to stop out there No, you don't that order is cancel. It's virtually It's partially filled and not able to fill the rest of it It's a very dangerous part to that so OCO orders can actually help you get outside of the Limitations of a range order the big difference is One that trigger orders that are very similar to OCO orders. So trigger order means that one Order is live in the market It was short at five dollars that order once executed triggers another order. Okay, the other word was sitting and waiting It's not out in the market yet. It will be once five is executed OCO orders are two orders both live in the market at the same time Whatever one executes Cancels the other same risk is involved though if one partially fills The other order is canceled testing so What we're gonna do is we're gonna take a bunch of questions. Okay, we trade in the morning and work out in workout Doesn't matter what the result is You have your plan the best time to trade a certain thing. So I wanted to talk about certain setups So there's a high day right here you see this If it breaks out levels off the races and sure enough So there's two things two areas to look for V-wap reclaim. I think the V-wap was what dude? It was 380. I don't know 370. So we view up reclaiming high day, which is the fourth 70 great Okay, does that train make sense to you? So those are things you look over in the long and there's never a fucking reclaim V-waps It's fucking dead. It's also has a big at the at the market Dilution going on and off ATM we call it and do it at TC never freakin made it man. That was Little bit off by not much man 10 cents or so 5 cents so That covers that so I wanted to take questions from whoever wants to take questions And then you guys can come up and then we can do a workshop on answering some of the questions So think it would be a question as well answered and then we can use this opportunity that to answer Don't be shy Anybody anyone's asked a question Or you look at the trainer do whatever you guys like this is all to you guys All right. Yeah, come up man Yeah, what's your question for us to see if it's wards coming up? All right, come up. I've any good question across. I like that nothing specific nothing like oh What happens if you the pink drops me then you fucking sell So my question was for now about his process and Going over what he did this morning Setting out his lines and his parameters, you know, you have some plays that you look at and say, okay This could be very high probability. This one not so much, but I'm gonna throw this order out because I could be a great opportunity The ones that you give a lot of attention to like today We gave a lot of tension a lot of screen time to a first bounce place On the second day plays if you know, you're not gonna give those a lot of screen time. Do you ever set? Racket orders so that it's a little bit more automated whenever the You're in that first bounce play you're in that day one that hot shake and you have your your low hangers a little bit More automated. Is that ever a situation for you? That is a great question. That's something I should do I don't because I'm an old dinosaur that never even knew what a stop was for many years So I had a bunch of bad habits That's why like I said man, you guys are very fortunate that you you were starting young and you're asking this type of question So of course you see my fancy orders. I throw them out there My fancy orders are all manual if you guys are automated using OC orders and trigger worse You can do it except in my my way, which is a dinosaur way you can do that set it up It doesn't hit it doesn't hit so do it dude. Don't roll out An order could be an ocean already be even breaks the V-Blog we claim by With a 15 cent stop loss for example, right or it breaks high day 15 cent stop loss. So those are the OC orders exactly what you're doing. So So keep doing it man. Get them all out and that's the risk reward Bad habit I got is mental stops. We're still talking about those are bad But I'm mitigated because I hammer it hard the first hour Then I walk away because I'm mostly a short-sighted trader and so he said us I This is a case where it worked. I waited two hours. We've worked with most of time It doesn't do this. This is what this happens all the time What you catch so that this who made money the key is the patience and the OC orders and eliminate having sit around keep waiting for all This so yes, your way of doing it is perfectly right. Well, thanks. Thanks, Oscar Well, I hear in the room. So anybody wants to ask a question. Anyway, do we have two microphones? So it works both of these are tied in. Oh So this is me staying there. So I wanted whoever I wanted to ask questions come up and I guess come on I'm gonna move my food over here. So When you're recording doesn't look all nasty In general, is there a certain price action that you see that you'll say I'm staying now away from this stock whether it's long or short Kind of scary See that you have to fear once again that for me I have no fear if it goes to my life these arcs lines as the setup. You should say so You're like, dude, you're so fearful because you know, what if this happens? What if that happens? But if you can mitigate the rest using the hard stops or knowing exactly we get in get out You so say just throw it out there. Just throw it out there. So I don't really care I call I call it like I remember I was talking about lines in line Right and anything in between the line to be as noise and so that to me is those are the untrainable areas But a good line is the VWOT reclaim high of day. That's another line, right? So those those are two lines and the rest if for me, it's not scary. It's more of I don't know what's going on I'm not going to trade things which I don't know what's going on. It's indeterminate. It's ambiguous It could go either up or down. I cannot tell There's certain lines that it gets breached or broken. It goes way up or way down. So That makes sense guys So now what's gonna happen is the next line is the high day which is What is this guy's this is Yeah, what's the high day on this 645 625 45 45 there we go And so now do you see this this could be the new support run the 550 That's all you do Again to the point where it's just so high guys where you have to How much more can you make on the beat right how much more the downside? So you get trade remember you can trade anything you want. I don't care if you buying stuff, which is Against the rules as long as you have the stocks in place if you I keep saying if you pre-define your risk There's nothing to be scared of you know my wrist is a hundred bucks So you do reverse engineering math to come up with your price your exit and that's witness, right? 100 hundred bucks If I want to lose only a hundred dollars on this play I could do a thousand shares with ten cents stop right or I could do five hundred shares with twenty cents stop You so say or a hundred shares with with all their stuff or whatever that adds up to 100 he's a thing you have to use reverse math and you preach find your rest and you never get scared Anybody questions line up and just come up and that's a question man. Okay. Hello What I'm trying to think about is like You call bull is obviously is you know I don't want to know the exact dollar or shares because that may try to be crazy But if you could put it like in the fractions, so you talk you're telling me the other day like you had four bullets So like you know your first bullet. It's maybe one eighth Next one is half or how's your general strategy when you're looking at them in the morning? So again, don't tell me the shares because I don't mess with me, but it's just Something like that everybody skills different right and so I'm gonna tell you how I do it until Alex and then Awesome is it tell you how you do it right for for me what what I don't I don't I skill in terms of the lines I get myself to three max In terms of lines and then if I go three lines, I reduce my size So the rule of thumb is different for each stock if the lines are so close that I can know I'm okay to go three lines, but the next one is so far away. Hold on. I'm gonna stop with that big break, right? You don't think so it's not don't don't be so robotic to think every stop used to one eighth one fourth No, it's depends on the strength the time of day And what your objective is your objective is the scout 20 cents Or as a whole for the for the trend break or is all that but the key is for me Everyone has a different type of scaling my scaling is lying in line or every or like let's say I want the $3 I would do 297 and then 307 to average down three bucks and I for me personally I do use only 50% max He Alex has a 30% role in the front side. I do like 50% max on the front side So like for example, I could have gone 10,000 shares deep and they may have gotten me out of the position But I saw the $4,000 share and $4,000 shares got enough 50 cents. I'm scooping I lost two grand on it So all hands are what is right? So I'm nowhere near my max loss I'm nowhere near my max size for the day So it's kind of the feeling and to God, I didn't really want to take that trade I just did for education wise, but at the end of the day, you saw how I did when I when I started scaling in I started very small size and even that small size made me two thousand bucks Hey traders, this is Tosh I go by T Bradley 90 in the my investing club chat Just wanted to reach out and say if you have any questions about M. I see joining M. I see maybe you're a member already You have three ways to contact myself personally and through M. I see you can hit our social media You can hit me through PMS and chat or you can contact us through my email at Tosh at my investing club comm That's TOS H at my investing club comm I will get back to you in a timely manner And I'm saying this because I'm here to help and I don't want anybody to be afraid to reach out and ask any Question that they have we are here for you guys. All right. See you guys