 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 my investing club.co link is in the description. Alright, enjoy the video guys. Today I want to talk about what I didn't even know what to call this. I'm just gonna call it my rule of safety. But it's something that I want to talk about. It's it's it's a rule that you make when it comes down to one of those decision making moments in the moment when you're trading. So this one's going to be kind of a nitty gritty webinar because the last one was kind of broad, right? Like I try to bounce back and forth. Like last one was on psychological traps, I think. And that one was pretty broad and you know, psychological, this one's going to be kind of super nitty gritty in the point, like on the chart, what to do kind of stuff. Anyway, so I'm I'll get into it later. But we're going to it's what I call my rule of safety. And so like if this is your first webinar, welcome. This is this is just where I go over the table of contents. I'm going to go over the market sentiment, which is slowly getting better in my opinion week to week, or we'll go over the key traders of the week. And honestly, I don't really have very many trades. I think I have like free trades this week, like maybe, if that. So I'll go over that. Then I have two kind of two rants that I want to talk about this week, two things that kind of bugged me this week that I really about chat, or in chat that I really want to talk about. Basically, this rule of safety is, it stems from the question like us mods get this question and then weekend mentoring will get this question all the time. There was one thing that you wish someone would tell would have told you when you first started, what would it be? Like I never know what, you know, like to say to this, because I really don't know. Like I've been in MIC for what almost a year or two now. And I still don't exactly know how to answer this question. But I think I figured it out to this one. What I'm going to talk about this rule of safety, because I mean, the obvious answer is like, oh, like patience or discipline, or, you know, stick to A plus setups, that kind of stuff. I'm going to go into the the number one thing I wish someone had taught me when I first started. And that's what we're going to be going over. Well, that's obvious. That's the that's the number one rule, I guess. But I mean, this is like the number one, I guess, technique I wish someone would have taught me when I first started. And then we'll end and we'll end the session with Q&A, although hopefully it's not a big one. Hopefully I cover everything. But if at any time you guys have a question, feel free to go ahead and throw it out there. And I'll try to get to it as long as it's pertinent to kind of what we're talking about. I'm going on six years. Yeah, going. Well, yeah, I mean, it's the end of 2020. I don't exactly know what month and shit I started. But yeah, five, six years, the 2021 is a six year. Oh yeah. And so the prerequisite we'll help you with this is being definitive and scaling. So it's going to be kind of about scaling today. Anyway, so where were we in the last couple, you know, a week last week ago, right? A week ago, or I think I skipped the webinar. So like a couple weeks ago, the new CDC COVID numbers came out, like, and that kind of like, just the comorbidity rates are showing that like, hey, like, maybe that quelled a lot of fears and stuff like that. And that kind of helped the spy rally and fuel that squeeze that we saw, and that it would definitely wasn't want to fight. And that we still had that October selling and the election hesitation coming up. So, you know, I literally, we were this was when we were in squeeze mode, like a week or two ago, you know, I said, like, I'm not going to try to guess the top. And I'm going to guess that the top is coming. It's a when thing, not necessarily a price thing. But I basically didn't know any, any sign of stoppage of that squeeze, anything except time and technical reasons, such as extension, right? And so I think ultimately, just kind of what what can the market the combination of just being overextended, overextended the euphoric dying, the squeeze dying and and the election hesitation, I think ultimately, that's what stunted it, eventually, right? Like, I said that for weeks. And then we kept going higher, higher, higher. And then we got stunted. So that's where we were. And here's where we are. So this is so this week, as opposed to the last, you know, the late weeks of August and the early weeks of September, here, we're in the third week of September, going into the third week of September, we're starting to see the sparks of tinder out of the ashes, right? Like, that's kind of what we're seeing, right? And so like last week, slash week before, was probably about peak deadness, where the range really got the shit, like, it was literally every single day, not much of anything. And I think that we've bounced from the bottom of it. So I'm going to call that as the bottom of the dead market. I think that's about as force as it's going to get. And honestly, guys, you guys, this is your first year of training, you're still spoiled. Because that was like, that was like the strongest dead market I've ever seen. You know, as far as being a dead market, that was pretty, there was still stuff to do stuff to watch stuff to stuff to lose money on, right? Like, normally dead, like when the market's super, super dead, it's actually kind of easy not to make it's kind of easy not to lose money because there's literally nothing to do. It's when it's like this, it's kind of easy to lose money, right? When there's when there's stuff to trade a little bit, but nothing like super solid, nothing super good, everything super crowded on the couple names that there are. That's when it's really easy to lose money. And that's it took me a few years to learn this. But it really just it took it taught me that like, it's so much easier just to take your entire foot off the gas and just save your energy because most likely, like you guys all know how easy it is to lose in the market. And even like, I even got like last week, not this week, I even got like kind of antsy, like, and I've been trying to not be antsy. And I got a little bit antsy. And like, you know, I took a couple of trades here and there. And like, I was just like, I mean, like, I lost a couple hundred, like I lost a couple hundred bucks and I lost a couple hundred bucks and I lost a couple hundred, I'm just like, what am I doing? Like, I just kind of bored them trade like, and like, it's not as if like, I trading small, but it's like, I didn't need to lose any of it. Like, why did I even lose any of it? See, and like, I definitely mitigated it more than last year. But like, I caught myself last week kind of bored of trading a little bit. And I was just like, and my excuse was I'm trading really small and I was, but it's just like, still, it's like, why couldn't I stop trading completely? Like, you know, like it's still in me, like, and that's why like, I need to take extreme measures. Like, I need to leave, right? Like, I need to, like, I have started waking, like, this is not me at all. Like, I trade in Hawaii and I'm always up at like 130. Like, for me, that's 730 market time. I mean, when there's something to watch, I'll be up by 7 at my screens by 7, everything on by 7 if there's something to watch. Like, that's normally like, how I've been, you know, how I trade. But like, I've been forcing myself to wake up at 9 and I know that sounds very like, so you're just like, you know, unprepared. But the thing is, is that I am too tempted to fucking trade pre-market. Like, when I'm super bored and I haven't tried to trade in a while, I like to trade pre-market and like, I suck at trading pre-market. I'm not very good at it. So like, I need to take, like, I force myself to wake up a little bit later. I'm kind of, kind of treating it as a little, kind of, relaxed time trying to just keep my mind sane a little bit. But like, yeah, last week I lost, I lost a few hundred bucks. Totally unnecessary on just like, well, let me just like, you know, let me just put some shares on here just because. And like, of course, I lost on them because it was stupid. I fell victim to it a little bit last week. And so I, like, this week I was like, nope, nope, take your hands off, just wait. I'll wait for the runners. Like, it will be so apparent when it comes. It won't even be funny. You guys, it'll be like, ah, here it is. And the worst thing that you guys can do, I promise, the absolute worst fucking thing that you can do is when that market comes back again where everything's running. And the thing is, I'm speaking from a long perspective, but also from a short perspective. If you're a short seller, you want the market to be hot. Why? Because what, when the market is hot, that means there's a lot of attempts. There's a lot of runners, runners, runners, runners. And only, it's still, only a couple of them are going to win the attention, win the volume. And then there's all that sympathy rejects. Those are the ones that the shorts want to take advantage of. It's a really hard market for, for shorts when there's only like two runners. Right? When there's only two things to trade. Their shorts are all just basically can, you know, like condensed in these two tickers and you're just fighting everybody for covers and it's ridiculously hard. Hey guys, my name is Tosh Bradley and 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 213-458-5997. 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. Back to the video. Do you think it will run or finally die, Kodak? I honestly don't. I think, I don't have, I I don't want to say I don't care, but that's that's not what I mean. What I mean is, yeah, I don't care. Do I think it's gonna go? What does that mean? I don't think it has a potential to explode. Like I would be really surprised if it ever got back above 25. I'd be really surprised if it ever got back above 25. So I don't think it's going to go finally, but I think like it's kind of bottom tier for a while like and so it would just slow fade anyway. So it's not really on my radar. Last and first out for swinging doing if I covered 75% of the swings a little bit different because there's a little bit less consolidation on swing charts than day trading charts on day trading charts. There's almost always going to be a consolidation whereas on a swing trading chart it's very it's more common to see consecutive candles in a row. I think so it's almost apples and oranges there. You know, like there's more dependability on pullbacks from extension on intradays than I think on swings. I mean, so the resetting is banking on that almost assured consolidation before a direction pick, which happens basically on every single stock chart in day trading, but not all the time in swings. So if you covered 75% of your position you recover your best average and then leave the worst bit of the average. Yes, that's kind of the opposite. No, I honestly wouldn't know. I would have to think about that for a little while. Like honestly, I don't know that. I haven't thought about it that way. It does. It seems a little counterintuitive, but I haven't really given it much thought. I'd have to think about that for like a day. If it would be better over time you covered your best average right away and then leave the crappy average on. I mean, mathematically averages average out. But it's more so to do with just covering the it's more so to do with just resetting because you're banking on the consolidation whereas necessarily trying to you're not like ensuring more profit one or the other you're just kind of trying to take advantage of stalls in which you might be able to fix your average. And for, you know, like the probability that bounces are going to happen very, you know, it's probably going to bounce again. You're just banking on that fact. I think that's stronger in day trading than in swing trading to reset the position. Does that mean that you would have to take off all early shares or just part? Yeah, so that's a good question. I knew this question was coming. I was waiting for this question. I think that you should take off a significant chunk. And my minimum is like a third. Like I like to play it again. This is a sliding scale on how much you don't like your position or not or how much you do like your position. Right. And normally just the better your average, then the less that you really need to take off. Remember, you're managing risk. So the worst position you are in risk wise after you get the pull from the scale or the balance from that scale and long, it's just a time to reset your risk profile. Right. You know, like you want to get into a now you want to turn your trade into a favorable position for you. So like if your average really sucks in, I mean, dude, you probably want to cover like two thirds, right? Or like minimum half, right? I knew this cover. I knew this question was coming. My minimum is like a third. Like normally if you ask the question, if you ask that question and you don't like your position, it's time then it's time to activate the rule of safety. You want to take off at least a significant chunk. And for me, it's like a third minute. Thank you so much for watching our video. If you want to see more of our videos, please subscribe to our YouTube channel by clicking the button here. We do our best to post a new video every single day. If you have any questions about MIC or any general trading questions, please text Tosh using the number here. Also, stay up to date by watching some of our most recent videos.