 Today is Tuesday, September 8th. I usually do these recaps on Monday, but we had Labor Day weekend and the markets were closed on Monday. Today, Bao was spending a day traveling back and he was spending the weekend with his son. So yeah, it's been kind of crazy. Want to talk about some market action that we've had. So a couple of things to make note of before we start is this. After a long weekend away from the markets, there's two feelings that you have, right? So my number one feeling is I'm excited, right? I love what I do. I love trading. It's the only job in the world that I love and hate at the same time. I'm very passionate about it, but I also fucking hate it from time to time. And I usually hate it when I'm over trading. I usually hate it when I'm trading with stress and I love it after I spend a few days away from it. So having Saturday off, Sunday off, and Monday off made me really, really excited to get back to trading today. And that usually happens to a lot of people. The problem is that when you are excited to trade, you're usually trading with lots and lots of promo, right? You get to your desk early. You start trading pre-market. You start getting a little bit too excited. So something to make note of on these long weekend days is, yes, it is good to be excited to get back to work, but also be sure to kind of put some guardrails in front of you to make sure that you're not trading pre-market, that you're not having formal trading, that you are kind of respecting the rules and trading as if you would be normally trading if there was no long weekend ahead of us, right? So that's number one. Number two is I was actually thinking a lot, obviously about trading over the weekend. And something that I really, really want to emphasize is we repeat ourselves a lot in trading, right? So if you notice, we always talk about the same things. We always do the same things. We always look at the same indicators. We are always sticking to the same process, right? And the reason why is because trading is almost a game of pattern recognition, right? So you are looking for these patterns that you have seen happen over and over and over again. And the next time you see that pattern, you want to put money onto that table, right? You want to be able to bet on that stock. So the reason why we repeat ourselves, the reason why we kind of say the same things over and over again is for you guys to realize, right? It's for you guys to realize that through repetition and through pattern recognition is how you find an edge in the market, right? The first red day setup is a pattern. The zombie rule is an observation that is now a pattern, right? So the more that you guys see these things, the more that it happens, the more your brain computes it and the more your brain tries to look for, right? So if you see that there is a zombie move every single day for the next six months at 1030, after that your brain is gonna say, all right, this is a pattern that happens at 1030 stocks tend to rebound. So keep in mind that we're repeating ourselves so that one day it just finally sticks in your head, right? This is robotic for me. It's almost like I have tattooed in my brain what the process is, but for a lot of new traders or for a lot of traders that don't have a process, think of trading as a game of recognizing patterns, right? We've done the work, right? Me and Bao have done the work finding the patterns, identifying the patterns, finding the patterns that work. Now it is up to you to look for those patterns and put your money when those patterns show up. So that's that. I also wanna talk about the Tesla trade, which I will, but also just something on a more personal level. Tomorrow is my birthday, September 9th. I'm turning 26 years old. It's kind of crazy that the year has already passed by. People always ask me like, what do you do on your birthdays? What is that like, this and that? And I'm the type of person that likes to keep it very normal, very casual. I don't really do anything crazy. I don't plan anything crazy or I don't get myself anything crazy, but this year I'm just gonna kind of go out with my parents, kind of enjoy myself. So I don't know if I will be trading tomorrow, but if I am not trading tomorrow, just know that's because it's my birthday. All right, so let's talk about Tesla, right? So Tesla was kind of, let's first talk about what's been going on with Tesla, right? So Tesla's kind of been the hottest stock in the market lately. Everyone and their mom has been trying to buy the stock. Everyone has been hyping up the stock. It seems like it's the next buck in Bitcoin. Everyone's buying, buying, buying and they don't really care what the outcome is, right? So we had a reverse, a forward split on the stock, right? So the stock did a forward split and then essentially doubled since the forward split. And every single person was looking for the top. Every single person was shorting, shorting, shorting. It's too overvalued, it's too overvalued. Like what's gonna happen, what's gonna happen? And on Friday, I actually traded it short and I actually made money because there was a negative catalyst on the stock. There was a catalyst that said that they were going to do a $5 billion ATM on the stock. It was either Thursday or Friday, I can't remember, but they said they were gonna do a $5 billion ATM offering on the stock and the stock started to pull back and that was kind of a signal, a catalyst signal that said the stock is gonna continue to sell off. This morning, we had news, I think it was either this morning or again Friday night, I can't really remember, but we had news that they're not gonna be included in the S&P 500, so the stock tanked. So we wake up this morning and Tesla's down 20% on the day, right? It's down like $60, $70 on the day, which is absolutely insane for a stock like this. So my plan was this, right? My plan was this, I wanted to use all of the process that we have for small caps on this Tesla large cap trade. So number one is the stock is gapping down big, right? If the stock is gapping down big with the overall market. Number two, SSR is going to turn on, right? So we have a stock that is gapping down pre-market, we have a stock that SSR is turning on, and there was another PR this morning that said that their $5 billion ATM offering was complete. So we have negative catalyst and now a positive catalyst in my eyes. So we have the ATM offering is complete, we have SSR on, and we have the stock gapping down with the overall market. Originally, what my plan was in the morning was to buy $350 wash out, right? It was to buy a $350 wash out and flip it on an SSR bounce. What ended up happening in the morning is we got that $350 wash out. I added to my position and I told everyone, my hard stop was at $348. If the stock breaks $348, I'm going to be out because that is very, very, very bad for the stock. So if you look at the chart, you can see that $348 broke in the morning. I exited my long position for a loss and then my new game plan was to wait and watch for a $335 hold. Now why $335? If you go back to the daily chart and you draw a line at $335, you will see a big support level there, right? So I want to see that level hold and reclaim and that's where my long trade will come from. So the stock broke $348, went straight down to $335, reclaimed $340, I went long at $340, I added to my winner and then basically it was just a matter of not only the stock market balancing, the S&P and the Q's, but it was also a matter of Tesla reclaiming VWAP. Every single person that shorted at the open was underwater and I was able to sell out my position from the 340s all the way up to the 360s. So I made over $20 a share after, after I initially had a loss on the trade, guys. So the point that I'm trying to make is this, when small cap stocks are moving, when small cap stocks are hot, they are easy money, I feel like. I feel like it's very, very easy to make money in the small cap market when it is very fast and on fire because there's a lot of dumb money entering small cap stocks. It's usually uneducated people, it's usually pump and dumps, it's usually garbage like that that is kind of pushing these stocks up in a small cap world. So whatever small caps are moving, that's always gonna be my bread and butter, that's where I have the most edge, that's where I feel the most comfortable. But for the past two or three weeks, small caps have been very slow. Now, when small caps are slow, that doesn't mean that there isn't the opportunity in the market. We as traders trade when there is an edge, right? And if there is an edge in large cap stocks, like Tesla or Facebook or Apple or whatever it is, I have no problem trading those stocks. The thing is, I'm never gonna trade it just for the hell of trading it. I'm not gonna be the guy that's looking for the top on Tesla every single day because that's not what I'm looking for. I'm looking for the trend to be set and looking to follow that trend. So if I see that Tesla is holding 335, which is a support level on the daily chart, I wanna go long. After it reclaims VWAP, I want to add to my position. After it holds the 350 whole dollar mark, I want to add to my position. And as shorts are panicking to cover, as SSR is pushing it up, I want to be exiting on the pop at 360, 365 and whatever else it is. Does that make sense guys? You know, a lot of people tell us that MIC is only focused on shorts, MIC only focuses on small cap stocks, but some of my biggest trades in my career have been on large cap stocks. A couple months ago, I made 100 grand on Tesla options trade, which was a short. Today I made some money going along on Tesla. So again guys, we are doing whatever we can to make money in this market wherever there is money to be made. So today, what we did or what Joe did, which was really, really great for the members is this. Before the market opened pre-market, Joe made a one hour webinar basically going over what he's looking for on these large cap stocks. He was looking for an opening range breakout on Zoom. He was looking to go long on Roku. He was looking to bounce Tesla. So he's guiding you guys in the morning in the large caps room on how he wants to trade these stocks, right? And then tonight at 7 p.m. market time, he's gonna be doing a large cap webinar. So we have resources for all types of market guys. The large cap market is going crazy. We have resources. If the small cap market is going crazy, we have resources. You guys just have to use the resources that we offer guys. Does that make sense? So today, I was not even in the small cap room. I was mostly spending all my time in the large cap room bouncing Tesla and guiding members on balancing Tesla, right? Because at the end of the day, even if Tesla is gonna go down, it came down from $500 to $330 in two days. It's gonna have a dead cap bounce, guys. What is Tesla's trading at right now? I sold my position at like 365 or 364, something like that. And I have no idea what it's trading at now, but if I was to guess, I would assume that later on in the day, it would probably find a way to go higher, right? So does this make sense, guys? Does this make sense? I want to try to kind of make this as simple as possible so that you guys can understand what my thought process is and what I'm thinking. Because again, like I said, the small cap market is where my edge is. I feel like that's where all the dumb money is. So I wanna be piling as much money as I can into the small cap market when it is hot. But when it is slow, I have no problem taking a little bit of money and putting it and messing around in large cap stocks that have an edge, right? So that's kind of what I'm going for. That's kind of what I wanna show you guys. The last two or three days, I've been trading Tesla and making money on it, which is great, but you guys need to understand too that just because small caps are moving does not mean you have to venture out into large caps either. I have experience in large caps. I have educated myself in large caps. I've been trading large caps so I know how to trade that market. If the small cap market is slow right now, use the slow time and use the off time to participate in the webinars, to ask questions, to watch the large cap videos, to watch the options basic series that we have. Use the resources that we have at our disposal by being an MIC member and educating yourself. We have the best education for all types of markets. You just have to be able to go to the video library, myinvestingclub.com slash videos and type in your question and you're gonna have tens of hundreds of videos to watch. So do you guys have any questions for me? We could open it up to a brief Q and A right now. I've noticed that you guys like when I keep the videos short and sweet so I will continue to do that. But yeah guys, any questions, we'll go over right now. Why can't I see your other hand that's holding a selfie stick? It's crazy how Tesla bounced off support at 337. It's not crazy because that's technical analysis. That's how charting works. Support and resistance. It's not a coincidence that it bounced exactly off that level because that is exactly the level that it was at on the daily chart. How was my mentality coming in today from the long weekend? I mean, I used the long weekend to decompress. I used the long weekend to relax, kind of stayed home on Friday, went to a barbecue on Saturday, went to another barbecue on Sunday, hung out with my family on Monday. So I was kind of feeling very good and very refreshed but like any other human, I was feeling FOMO. So what did I do to cure my FOMO? I did my laundry. I cleaned my house. I dusted off my car, right? I'm doing things to keep me busy, to get me away from the market and to distract me from FOMO. So if you feel yourself getting FOMO pre-market, clean up around the house, do your dishes, do your laundry and it might sound mundane and it might sound stupid but that small act might save you from making a FOMO trade that's going to ruin your day. How does SSR work? I don't know how it works. If you don't know what SSR is, man, you should be Googling it. SSR is the short sale restriction. It means that if a stock goes down 10% on the day, that shorts could not short on the bid. They could only short on the ask. Do I locate shares? How often does Joe do the morning webinars? Are they recorded? Every single piece of content that we make at MIC is recorded. Joe does the large cap webinars in the morning and every feels like it but every Tuesday at 7 p.m. he does a large cap webinar kind of guiding you guys through the market, explaining what he's looking for and what he could do to kind of help you guys. When would you say the small caps will start moving again? So guys, we have to remember this. Small caps have been higher. They have been hot. They have been so fucking crazy. Over the last six months, people made millions and millions and millions of dollars in the last six months, guys. And we have now three weeks of slow action. Guys, this is normal. This is absolutely 100% normal. I've been trading for six years now and I've seen this action nonstop. Usually the summer from May to August or May to September is extremely slow in the stock market. May to September is very slow in the stock market. That is because all of Wall Street goes to the Hamptons. They take their vacations. They all go crazy. But this year because of COVID, we have had the most active summer in history. In the last six years of me trading, I've never seen a summer so active before, right? So what that tells me is this. It's normal. It is normal. Usually what happens is in November, historically November during Thanksgiving week is when we have crazy, crazy runners. So I would say the latest it's gonna be is in November but until then guys, there's still plays every single day, you know? Your goal as a trader is to maximize the amount of money you make when the market is hot and minimize your losses when the market is slow. So right now the market is slow for small caps. So I am not using massive size on small caps. Right now the large cap market is a little bit hotter but I'm still not using massive size on large caps because I don't feel comfortable. So not every trade requires you to use size. Not every trade requires you to bank. Last week I had a phenomenal week making $44,000 in the week which is crazy but it just goes back to the same thing guys. If you stick to the process, you will be rewarded. If you control your emotions, if you study, if you participate, if you are here every single day, you will be successful. I recently, so something I also want to talk about is during quarantine, when COVID first started, I kind of found myself losing my mind a little bit just in terms of being honest. Like I felt very depressed, I felt very stressed, I felt like I was in a prison at my own house. I felt like I was in solitary confinement and I was kind of losing my mind. So what I did during quarantine to try to improve my life and try to use quarantine as a way to make me better is I started working out. So if you know anything about me, I hate working out more than anything. For whatever reason, I can't bring myself to do it ever. It's such a chore and it sucks. But I actively put in an effort to start working out during COVID and I think this week is my two month anniversary of working out and a couple of things I want to talk about that that relate to trading is this. I don't expect to see results from working out in just a month or two months, right? It's the same thing as trading. I can't possibly think that if I just lift weights for a month that I'm gonna have massive arms, I'm gonna have a massive chest, I'm gonna be huge, right? And that's something that has to go trading too. Even if you're trading for a month, even if you're studying for a month, you still don't know anything, you're still nowhere, right? So I think of myself in my new workout journey of trying to exercise and trying to stay fit and trying to stay healthy. I think of it as starting trading for the first time again. You know, I'm putting in the work. I'm literally working out five days a week. I work out Sunday, Monday, Tuesday, Wednesday, Thursday. I take off Friday and I take off Saturday. So I'm working out five days a week, right? Just like the stock market. I'm looking at the market five days a week. I'm working out five days a week. Yet I am a little bit upset because I have not seen the results that I'm looking for yet in my journey, right? And that's discouraging and it makes me upset and it makes me think, why the hell am I wasting my time working out when I don't see myself improving? And it goes back to the same thing as trading guys. Just show up, put in the work, and then you will see progress, right? I don't like, look, you can see my problem. I'm not nothing crazy yet, but I want you guys to see that this is the start of my journey working out. This is the start of me trying to start something new as a complete novice and not knowing anything. And I can't possibly imagine, I can't even think to myself that I'm going to find results in a month or two months. So remember that in trading guys, just because you study or just because you trade for a month or two months and you're not seeing results, do not let that discourage you. Do not let that make you quit. What I see or what reminds me is this, I am very disciplined person in the market. I have a very good work ethic in the market and maybe that's because I've seen success in the market. It is very hard to keep up your work ethic and to keep up your discipline where you are not seeing results. So I keep reminding myself when I work out that I'm not going to see results in a month. I'm not going to see results in two months. Maybe I'm not going to see results for six months, but after eight months, when I see results and I see my arms and my chest getting bigger, it is only going to motivate me more to keep putting in the work. So right now, right now guys, what I am doing is I'm just showing up and working out. Five days a week, I'm showing up, I'm working out. I'm not seeing results, but I'm still fucking working my ass off, right? And that's the same thing with trading. Use that analogy to help you guys. Use that to remind you and say, fuck, I'm not seeing results in a month. I've been studying videos for two months. I'm still not seeing it. I'm still not seeing it. Well, I've been working out for a month. I've been working out for two months. I'm still not seeing it, but that doesn't mean that I'm stopping. If I stop, that means I'm going to have no chance ever. I'm going to take this seriously. I'm going to give it a year. I'm going to push myself five days a week to keep going, to keep going, to keep going. And when I see results, I'm going to share with you guys. When I see results, I'm going to let you guys know so that you guys can also realize that I am starting a new journey myself. I am starting something new that I never expected to start. I hate working out, I hate it, but if I can challenge myself and be able to stay consistent, make it part of my routine and improve from it, that just means that I could conquer anything with enough time, right? So hope that all makes sense, guys. I think that's where I want to end it. Yeah, I mean, this stuff is a little bit personal. I'm sure you guys don't really care about it, but I want you guys to also know that I'm still putting into work. I'm still trying new things. I'm still trying to improve. And I can't expect myself to see results in two months, so you can't expect yourself to see results of trading in two months, right? It's just normal, guys, it's just normal. So I'm going to try to keep going. I want you guys to keep me accountable. I'm going to keep reminding you guys and I'm going to continue to stay honest with this stuff too, because at the end of the day, if I could be someone that doesn't, you guys could do it too, right? And personally, just on a more mental level, I have seen myself trading a little bit better after working out consistently, because I feel like my brain is more clear and a little bit less stressed. That's it guys, thank you all for attending. Oh, oh yeah, one more thing. So what I did is last week, I mentioned that we're going to be doing a giveaway for someone that comments on the videos. So what I did is I picked someone last week and I commented on the video. I think his name was Kevin M and I messaged him on YouTube. So Kevin M, if you are there, maybe it's a different Kevin M, I don't know, maybe there's two Kevin M's regardless. You got a message from me on YouTube. Please send me your email and I'm going to give you a free month of MIC. So guys, what we're doing on these videos is I want everyone to comment on the video, one lesson that you learn from the video and next week, every single week, I'm going to pick a person to win a gift, either an MIC membership, accelerator course, t-shirt, shirt, mouse pads. So the first winner is Kevin. So check your messages and I will be getting back to you. So yeah, comment one lesson that you learned from this video to have a chance to win next week guys. And as always, if you have any questions, text Tosh and at 213-458-5997 and he will help you. That's it, thanks guys.