 One of the most common questions I get asked is, you know, how do I start day trading? So what me and my mentor about it for our viewers on YouTube is create a free mentorship course that reveals our 12 secrets that every single brand new day trader should know before they get started. But please take note that there is limited seating every single week. So please reserve your spot at myinvestingclub.co. Link is in the description. All right. Enjoy the video, guys. What's up, everyone? It's Tom Dizou here. I hope you guys had a great weekend and also a great trading week this week. So today's topic is going to be how to locate properly in trading. For the new traders out there, this is very crucial because this is like the majority of the fees are coming from our locator. For me, locates are very key and you want to make a plan before so that when the edge kind of appear, you can have shares to trade, right? If you don't plan it, likely when you see your edge or once you see your pattern or whatever, you won't be able to kind of trade it because you don't have shares, right? But you don't want to be locating just like blindly just because you have to. Just locate something that you will use. How can you be able to determine that? So this is basically the day one of the stock, right? Our process is shorting what the strategy is called is the low hanging fruit. I know that this is the day one and the stock is pretty much broken now. So on the day two, the low hanging fruit, I would like to see the pops back into those resistance line or like, you know, aka pivot line or whatever you want to call it. So I want to use a whole and a half dollar mark, okay? Yeah. So ASTC, as you can see, I had a plan, you know, on that day, couldn't find locates on the stock. It's so broken now. 33.5, basically holding a whole and a half dollar mark, 354, so scale into those line, definitely not chasing down no pops, no trade and just be patient. So that was my plan on the day two. So basically I wanted to scale into that three line, 350 and four, I mean, but you know, it got only to like this line, which is 325. Okay. So now talking about locating for the low hanging fruit, okay? I want to see the stock kind of pop first for me to even, you know, interested in locating the stock. So ideally for me, in order for me to figure it out, if there's not, you know, if there's enough meat for me to even trade this, and I have to determine kind of the scenario here. So let's say stock is at this point, 2.5, right? And I can see, you know, from this, this is the port, like, you know, the best it could go to is like probably two, so 50 cents here. And let's say for the purpose of this video, I'm just going to use everything in like 1000 shares. Okay, guys, every single stock, I want to use 1000 shares. So in this case, you know, if the price of the stock is around, let's say, you know, when, because I'm using a trade zero, and I think the cheapest we can get is around like 1.8 cents, you know, so basically it's two cents, right? So if I'm locating 1000 shares, I'm down immediately 20 bucks. So I'm down already 20 bucks. But by looking at this chart, like 2.5 to this, you know, to like, I can have like, you know, 50 cents, right? But like the meat is not left for me down here. So if you calculate that, I mean, you know, 50 cents by like 1000 shares, that's, you know, 500 bucks, right? And let's say all you need is to take like, you know, like 10 cents out of this stock, 10 cents or 1000, you know, 100 bucks. So as long as you can calculate the risk and the reward, right? You already down 20 bucks because of the locates. And by looking at the range of the stock here, I mean, you know, for 10 cents, I could get easily, you know, 100 bucks, so which is five times than the locate, then I don't see the point. Why not taking this particular kind of strategy or the set up? I don't want to even locate when it's down here low. I want to see the pop first. Okay. So as I show you guys earlier, the lines that I'm interested in, which is, which are, you know, three, 3.5 and four, right? Those are my three lines. So I want to see the stock showing me some sort of movement first. Okay. Before I even hit the locate. Hey guys, my name is Tosh Bradley. I'm one of the head mentors and moderators at my investing club. If you have any questions about getting started in trading, getting started in the MIC, MIC in general, text me at two, one, three, four, five, eight, five, nine, nine, seven. This is not a robot. It is me directly on the other end of my business line. And we'll get you in the club. We also have special promotions going on that I can get to you depending on your trading needs. Hit me up. That's the video. So let's say I start here at 2.5 and it popped to like, you know, and it doesn't do anything, right? At this point, I don't even, you know, bother locating even if it's, you know, one sense or like, you know, like whatever price. I don't care because basically there's no meat left for me to even interested in locating stuff. Right. So my starter would be like here at three line and stock is already popping back up 2.7, 2.8, you know, like 20 cents apart from the first kind of line that I draw, then I'm going to locate. And, you know, by locating that it's, I need to kind of think, you know, about the risk and the reward. If it's the stock is like two cents, I'm 20 bucks or, you know, I need this 10 cents from the stock, I can make five times more than that. So always try to calculate. I mean, if the stock is, let's say, if, you know, the locates are 10 cents, right? So basically you down already 100 bucks on the day. And by looking at this, like, you know, can you easily get that 10 cents or not? Right. And by seeing this, I mean, 10 cents, that's pretty easy to get, but 50 cents, that will be something else. But, you know, if you get like 10 cents here on the 1000 shares, let's say you're just going to get in here and three and cover it 2.9 or whatever, right? 100 bucks in 10 cents that eat, like that's doable. But compared to your locates, you know, your locators, it's already, you know, 100 bucks. So it really doesn't make sense to even locate that much. And for me, if the price is so, that's so expensive, I mean, anything over 5 cents, I need to kind of think, you know, really carefully about, like for, for 2 cents, you know, for me personally, for 2 cents, kind of stock, like on 1000 shares, right? All I need is like 10 cents. I can make 5 times more than locates. That to me, the risk reward is there. Like, you know, it's, you know, it's worth it for me to even locating some, because I know that I can get back that easily and plus more. Okay. So whenever it's 5 cents, it means like, you know, it's that's 50 bucks a year. I need to get at least 20 cents. Like, you know, by looking at this chart, can I get 20 cents easily from the stock or not? Right? Just ask yourself, you know, the same questions over and over again. And if it's 10 cents, one of my way of doing it is I try to, you know, really keep it simple. I try to kind of multiply it, you know, by four or five times. If the locates is like 10 cents, you're locating 1000 shares, 100 bucks times, you know, five on that, you know, you need to make at least five, 400 bucks or 500 bucks to, you know, to make sense, right? And to be able to cover for the fees as well. So it should be one-to-one kind of profit, like the risk and reward. So let's say you risk 10 cents here to make 10 cents, but it doesn't work out. You got to stop you out. That's too tight, right? That's one kind of paper cut. The second time you try, that's the second one. And now you're already down 220. You know, by the third time, like, you know, after that, it's, it's really hard for you to, to, to even get all that back with the loss. If the locates are just so expensive. I mean, so for me, I would like to always think about, you know, if I'm wrong, 10 cents or whatever, you know, twice here, like those are the paper cuts, right? But, you know, if the third time I get it here, like 1000 shares and I'm covering for like 30 or 40 cents here, I could easily make that back with one trade instead of, you know, let's, like, like, let's say, you know, imagine it's, it's 100 bucks already and you're shorting here. You buy, by that point, you're already down 200 bucks, like 300 bucks instead of, you know, 200 plus 20 with locates. So, and I want to see the stock showing me some sort of, you know, movement first before I even locate. And I want, I mean, if anything is under five cents, you know, I, I think that's, that's doable. Okay. And you don't want to be shorting down here, you know, where, where there's no meat left for me, for you to even scalp. So at least I know that if it pops to this three line, I can have at least like 50 cents here, you know, 1000 shares, that's 500 bucks I can pay, you know, 10 times or 20 times more than my locates. And so that's why I'm, you know, I'm okay with, you know, that five cents, but if, if it's 10 cents, then I would need at least a dollar. So it's all really comes down to kind of a risk reward and also are you comfortable with, you know, with that pattern or with that edge, right? Yeah, guys. So I hope it's helpful and, and, you know, I see you guys on next one. Thank you so much for watching our video. You want to see more of our videos. 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