 All right folks, here we are welcome aboard to our traders talk workshop here this Tuesday January 10th Great to see all of our students and members alike inside our live trading room Brian. We have Elizabeth John We have Ron we have Ravina Grant Carol Allison all of our students members alike great to see you all there Great to have all this back in social media Facebook Library YouTube We're actually doing more of an impromptu traders talk simulcast workshop We normally host this each and every Tuesday inside our live trading room So great to see new members joining us like Paul and Peter beforehand. We have Imad joining us right now a new trial member Just chatting us. So welcome aboard for any of our new members joining us here Hey, if there's any questions that you folks have right out the gate I feel more than free to chat it inside this chat board of ours But any questions that you have going forward just during your membership with us as a trial or even coming from raw Booker's hot sheets group welcome aboard Any questions that you folks have shoot me a quick email Josh at c2 trading calm got a bunch to go through though Obviously just in advance of this workshop But I wanted to post that right away for all of us on our social streams and inside our live trading room So let's hop right to it folks, you know, hey right now the stock shc is moving It's pushing up onward right now You know, this is a stock that we had on our pre-market watch list It was one that we had on our morning watch list as well So we could look to go over this in just a moment I wanted to go over a couple of other trades to begin, you know This stock has at least now a tighter spread But early on in the morning in pre-market and after the open the spreads were big The order book was scarce didn't really have as much volume on it as it does here at least So that doesn't necessarily make it like a tradeable stock Especially for a newly enrolled student joining us here at CTU, you know Myself and Fausto teacher students all throughout our curriculum phases one two and three as far as how to Scan the market and then from that point knowing what to focus on with each trade So with that perhaps we'll jump to the shc in a moment But there is a stock that I know a lot of us are pretty familiar with and we were focused on it early in the morning At least in the pre-market hours that bet beyond so, you know Hey, this stock was actually coming off of bad news this morning bad earnings So this could be a great example for any of our new members joining us Because hey, maybe as a long-term trader swing trader or investor You're more inclined to follow the news, right? Like hey if there's a company that came out bad earnings if they missed their EPS And if they ended up missing the revenue, that's probably not a good stock to trade and buy at least look for a run-up I mean, hey, I normally think the same thing But with that bet beyond this morning it was up early in the pre-market and with that It was trending upward from 845 going into the market open So one of the key things that I really look for when it comes to following, you know, really any trade this could be simple to say folks, but What's the trend of the stock leading into the open? All right Well, I answered that for us here leading into the open from 845 from 9 o'clock leading into the opening bell Although it was pretty slow It was moving up Okay, so for Leda and Ray and Grant and John and all of our members here really brief question folks We go through the same kind of motions each and every week when a stock is moving up What color primarily is on time and sales the tape? Sam Ray Ravina Wayne Mark all saying green and what do we nickname green as on time and sales? What's the nickname we give it the technical phrase is that it's filled at the ask but We consider it we nickname it as buying when a stock is moving up and we see green on the tape You know, we're quantifying that as buying. Okay, so, you know this bed-bath beyond chart I actually mapped out early in the pre-market. These are all lines and levels I plotted going into the market open So let's actually bring up level four I'll bring a book map here and let's show what book map had at least heading into the open All right, so this is bed-bath beyond at least from like seven o'clock even earlier going into the opening bell Now what I mainly focus on with book map when it comes to charting my my trades going into the morning Well, it's a matter of first focusing it on the dark orange and red lines that stretch across this page So, you know right here like where the stock is moving the red and green red and green squiggly lines That's the spread. That's the stock as it's moving up and down So any lines that are underneath where the stock is moving if it's underneath Well, that's volume on the bid that's potential support Anything above the squiggly lines here where the stock is trading anything above it. Well, that's going to be cell volume That's going to be resistance on the ask so let me ask all of us here for Paul and John and a couple of our new members joining us from Rob bookers hot sheets Perhaps you folks can answer this at what price levels generally. Do you see these dark orange and red lines stretch across the page? Might kind of squinch up the price axis there a small bit But generally what prices do we see these orange lines go across the page? Joys with two dollars. Well, yeah, there's about 26,000 shares on the on the order book at that price right here This column COB represents the volume the actual number of shares that are at each price So two bucks there was about 26,000. Where else do we see the orange lines folks that stretch across the page? Brian says 185 roughly. Yeah, like 185 186 roughly it topped off there in pre-market Then shortly after we started to see some more volume join and remain roughly at that price 185 186 Raveena says 210. I mean, that's the boldest darkest, you know line of red or orange that we have So this denotes the largest order that's on the ask it seems here So about a hundred twenty two thousand shares are on the ask at that price at two dollars ten cents Okay, so those are all resistance levels for us. At least there, you know, this was support at 162 All right now more or less going into the market open. I had mapped out 180 I was led to believe that 180 was a big volume level that was being traded here in pre-market Now I was wrong with that at the end of the day 180 that here looking at this was not the biggest level But I'll tell you right at 179 180 Basically right there when the market did open this became our biggest level to watch on this bed-bath beyond trade So, you know, we teach this all throughout our trading course myself in phase two I'll call this the opening bell print Normally when the stock market opens up for pretty much every trade that we look at We're gonna see a larger transaction that pops up on the time-and-sales window on book map here on level four It's gonna be represented by a dot a green or red dot that pops up on book map Now normally we focus on the color of the dot here at the market open We don't we focus on the price we focus on the size Well here at the opening bell it says volume and it says a hundred ninety seven plus thousand shares It got filled at 179. So certainly my 180 line Became really big because right there at 179. We have a key resistance. So I became focused on that I became focused on that 180 179 line. I had on my chart Well over time it ended up initially trying to make that move it popped up It tried to break out or tried to break above 179 and 180 and Much like I often say here when a stock breaks through such a big level We should be getting a pretty good reaction right out the gate, right? So if this isn't going to explode and run and pop over that 179 right away Then there is a chance where we'll see it make a sharper pullback if not even a Reversal and it drops right back down pretty far So I don't want to be held liable to hold on to this trade just because I thought it was a good entry So on this position I jumped in right at 180. I ended up getting out. I closed my trade out at 178 I just thought hey if it wasn't gonna pop it here Then I could jump back in later on at the least Maybe it doesn't make that move at all and I'll find another stock from our list from my list at least That I'll look to try and follow but with that this bed-bath beyond trade after it pulled back It didn't totally break down it didn't break lower off this iceberg at 170 that popped up In fact, it coiled back up it tested 179 again and when it re-broke above 179 180 I jumped back in Led to a new entry on this trade and much like I was just saying before You know if this is such a big level Then we should be getting a pretty good reaction right away, you know what I mean So, you know once this ended up popping from 79 up to 92, you know, that was just within a matter of a minute I think that's a pretty good start Now how big should big be like when a stock breaks to a big level we should be getting a big move shortly after So how big is big? Well, that's dependent upon the stock price That's dependent upon the volatility of the trade for instance if I not to go on a tangent But if I were to look at SHC, you know early this morning, although it moved up I thought this was pretty disappointing. I thought this move here within the first 30 minutes was really lackluster This stock had a much thinner more spread-out order book. So the SHC I thought had a better ability to make a more explosive move It's obviously a lot more expensive than bed-bath beyond this. So that's also something to focus on but you know Given how illiquid this order book was Compared to bed-bath beyond I felt like this had more potential to make that explosive pop This was disappointing. So, you know, you want to judge how big is big based off the stock price based off the Volatility and liquidity of the order book. So on this trade Yeah, I was looking for a move at least up towards 2 to at least make a move up to it to the next whole number Resistance at 2 so I ended up taking half my position out right off that level as soon as it hit 2 I closed out half my position. So with that I kept half in to at least, you know See can we get an extended run-up, you know bed-bath beyond we famously know is one of the Reddit Wall Street bet type of meme stocks and if you're unfamiliar with what that means You could take a look back at the beginning of 2021 this ended up making a big pop Then it dumped back down But you know that week is where we saw AMC and GameStop and all these other meme type of stocks run If you're a longtime student of CTU then you have experience with this Even if this can make a fraction of the type of run it made for us back then, you know That's what we look for so you don't want to have too high expectations But hey, I took half my trade out right off to I kept half in just to have some fun Is this gonna make higher lows off of two is it gonna run up and break above 210 and keep pushing up? So over time I learned it did not really look to make a great Continuated move I was really in the street for a long time as it pulled back under 210 I ended up closing the second half my trade. I was like at 203 even as it like dragged down right here Just get out on the second half of the trade there were other things moving at that point and Really, you know one thing here at cyber trading University to be very distinct at least We primarily are day traders here That does not mean that we hold on to a trade from market open to market close and then sell it 4 p.m On the flip side for any new members joining us. We're not scalpers Like we're not trying to take these micro trades be in and out within a minute That's not my cup of tea So, you know, hey trading could be relatively quick-paced But I'm not trying to hold on to this bed-bath beyond position all throughout the day Just because I had a good entry here. Hey, I could get back in on this position if it affords me the chance If this stock makes another break above 2 perhaps this can make a better trade leader on today or above 210 perhaps So that's just one thing I wanted to make known once we have a good entry on the trade We want to get as much meat off the bone as possible, right? But we don't need to be perfect We don't need to try and shoot for the stars nor do we need to be perfect with the trade So, you know, hey, I kept half my position in just in case if this really decided to run back up I know it's had some potential in the past to really keep going But you know, we normally know off to round that 10 15 10 30 Eastern time slot Hey, that's reversal hour. So this ended up actually reversing a lot earlier than that But it generally topped off shortly after 10 o'clock. You got to realize when it's time to fold the deck All right So, you know, hey, I wanted to start trade us talk off by going over one stock because you know Hey, it's something that was easier on the eyes for us to look at because it wasn't on a crazy spread Looking at level three here on the far right side of my platform No, this is on a tight spread a penny spread and very liquid book. So this was tradable for any student of ours You know, not like a level one stock as we would categorize it probably like a level two ish But you know, it was very liquid. It was a really good stock for any one of us to try and get their hands on So, you know, normally in traders talk this workshop We often go over a couple of big movers and apply our strategy go through the motions of where the iceberg orders were in Pre-market and how those levels could become big levels for after the market opens up So you could even see here at least heading into this afternoon, you know, it's making a move back down to 186 That's where we had a little bit of an iceberg order in the pre-market You know, that was one of the resistance levels that we were calling out After that, then I'm going to say 179 is the next big level So, you know, it would really need to hold off that 179 again If we're looking for this to make any sort of run back up, you know, later in the day All right, so let's go over a couple of different email questions that came in Of course, we have a lot of new members joining us each and every week, but from Rob Booker's hot sheets We have a lot of folks joining us from there. So I we had a bunch of questions get emailed over before So let me just do that Go through my inbox right now All right. So first question from Catherine. All right So this one is more in relation to just basic level three and level four She is coming from Rob's group and heard that Fausto often uses level three to follow iceberg orders And he's showing level four now So she's a bit confused on what she what she should be using and getting as a new trader of ours and Ultimately, just what is the best thing to focus on? So with that, right? Level three is a program on my platform at least here on the far right side Trade station is a great platform to have all together if you don't have trade station Then then that's totally fine, you know, as long as you're on a direct access trading platform Thinkers swim interactive brokers we both fidelity You name it all of them are direct access. I have trade station. Okay trade station is You know really useful because they have a program that we nickname level three So this program on the far right is officially known as the trade station matrix So this is able to show you all of the buy and sell data for the ECNs that you're looking at For all of the exchanges or ECNs that you're subscribed to So if you're on trade station at least what you could do is go on their website If you go right to trade station calm You can go into you know, like their data and subscription settings So you can see that these are all the ones that I have checked out bats batty Ajay Ajax Nasdaq so all of those ECNs and exchanges this matrix will pull the buy and sell data from and Really add all of the orders up at each price level. It does the math for you so in terms of looking for potential support and looking for potential resistance for this stock and any others well We'll look at level three and we'll see where the largest orders are across the buy side and blue and The sell side in red. So we're gonna deem those support and resistance levels respectively So right now just briefly a quick tutorial on this, you know, there seems to be a bit of an order here at 188 But after that though, I'd say you know Your next support on this trade seems to be about a 44,000 share orders sitting here at $1.80 So that certainly complements 179 the opening bell print that I you know mentioned before But looking at level three here because this order is a lot bigger significantly bigger than the surrounding orders Then I'd say that 180 for now should be a pretty strong support. All right So that would be a support level then a resistance here if we're looking on the ask side right now as this is actively moving No, there's a couple of orders that stand out that are above 20,000 shares a piece, you know, 198 the VWAP price 26,000 shares at 2 27 28,000 shares at 205 Now the thing is is that when you're looking at level three You want to make sure you're focused on a price level that Stands out that's a lot more distinguished of a price level in terms of size So, you know, hey this year 180 truly stands out compared to everything else around it, right? I mean, it's double the size compared to this one at 175, which is you know, pretty big still as well on the ask None of these orders are genuinely standing out that much more than the others, you know These 20,000 plus share icebergs, you know, those aren't necessarily icebergs if you know, that's a common size On the ask now if there was 120,000 shares on the ask at a particular price Well that trumps every other you know size that's out there So, you know the bigger the better if you're unsure if an order is an iceberg The way that I teach this at first for any of our new students joining us if you're unsure Then I'd say that you're pretty sure Meaning if you're looking to enter a trade because you know, there might be an iceberg order You don't know it maybe could be one Don't risk it. You know what I mean like unless if it genuinely stands out to you that much to say, okay That that's a pretty simple, you know iceberg to look at there So, you know, if it's something that genuinely stands out then certainly I'd you know Give you some good leeway to try and focus on that price as a clear entry or exit level From an up really briefly if you were sharing I cannot see so I'll just tell them to do a quick log out and back in Because I think that will fix it From Sam asking in the chat board now as well. How many different ECNs are there? So I know there's the NASDAQ ECN. There's the edge a slash edge X There is the ARCA book which I don't believe I have access to actually on my trade station platform There is a bunch of different ECNs plus Exchanges that you could subscribe to so you would need to go to trade stations website just to get their full list Now if you're on interactive brokers if you're using interactive brokers IBKR They have a program on their platform that is very comparable or the same exact thing as my matrix It's called the book trader from interactive brokers. Now if you're on trade station or interactive brokers This is a program that we give the nickname level 3 to so if you contact trade station and say, you know Hey, I'd like to get the data for your level 3 They're gonna actually say hey, we don't have level 3. This isn't called level 3 I don't know why they don't call it level 3. That's just kind of CTU's nickname for these programs It shows you all of the buy and sell data that you're subscribed to so it should show you all of the buy and sell data, right? Call it by the respective names for interactive brokers It's called the book trader and for trade station. It's called the matrix So if you just ask for the data on those programs, then they'll give it to you now Paul asking What is level 3 on thinkorswim? So thinkorswim doesn't have a program like the matrix where these orders are Added up at each price level where they're aggregated and added at each price level They might have a program like this, but it's unaggregated. It doesn't add all of the ECNs up together at each price Now what thinkorswim has though that a lot of program a lot of brokers don't have right now including trade station is Thinkorswim has the ability to give you book map data as what we nicknamed level 4 So if you contact thinkorswim and specifically ask for the book map data, it's about 40 bucks a month This again is what we nicknamed level 4. They've recently launched this over the last year So honestly thinkorswim, you know, they've been a great company and and wide-known brokerage right TD Ameritrade Before having level 4 they really weren't the best day trading platform Transparenly enough great for charting great for options But now that they have this right on their platform It makes them really like one of the best platforms to use them trade station interactive brokers So if you contact thinkorswim and just ask for the book map data Then they'll be able to talk to you more about that. It will give you pretty much everything that you see here All right Now we can go into book map a little bit more, but I want to continue with the trade station matrix just for right now I just you know, hey level 3 otherwise, you know Fausto often shows level 3 in his webinars He often shows the NASDAQ book viewer now That's a standalone program that you could subscribe to right from the NASDAQ website So if you're not on trade station, if you're not on thinkorswim to get book map then what you could do is go right to datastore.nazdaq.com and you'll be able to subscribe to level 3 the NASDAQ book viewer For 15 bucks a month. All right, but I'm gonna keep on the matrix just to you know Keep simple with traders talk right now What we'll actually do is go over just something actively moving right now not to trader You know really go over a real setup, but you know right now as we're looking at this trade on G Sun Well actually as we're talking There's a 14,000 share Order on the bid it was popping in and out right there at the price 285 Keep your eye focused on this price level. We'll see if that order could pop back up But that's certainly a larger order about 14 or so thousand shares a lot bigger at least Compared to everything else. That's currently showing so you know if there's a large order on the bid like that That should generate support And then otherwise right now an order like 11,000 shares roughly at 293 That for right now will create a small resistance on this trade Especially when you're looking at the size of the other orders that are nearby right when all these orders are a thousand 700 You know when there's an order of 11 12 13,000 shares that are out there or more It it will create that resistance So we had an order on the bid to generate support at 286 and then a small order on the ask at like $2 and 93 cents it's going to be stuck within this range here for a little bit it seems Maybe we can kind of just go around to another stock just to kind of cruise around see what else is out there That bet beyond we had started off with already SHC this see the stock though It doesn't really have any icebergs out there at the moment So, you know, it's just chopping out this point But given how small these orders are something around 10 12,000 15,000 shares That would genuinely stand out a lot further on this order book Compared to you know an order book like bed bath beyond that we had before right You know, we were saying before for bed bath beyond we had that support off of 180 the 45k Right. All right. So, you know, hey, if you have any other questions folks Not just for Catherine at the time but for any one of us if you have any other questions in relation to level 3 or level 4 Let me know. I'm sure I'll be showing a level 4 a little bit further in this trader stock workshop All right, so let's keep going throughout the emails I got one email save a little bit later on just kind of asking a little bit more personally about myself And how I came to be at CTU so I don't want to eat up time right now going over me Well, we'll save that for the end. So a couple questions that are coming in here briefly All right from Ryan. Okay, this is a nice one because a bunch of different questions in this email So Ryan had a few questions just prior to you know, watching this in traders talk that we're answering now Can you elaborate up a little bit further upon the three Ts and trading Fausto mentioned tradable Trend and trap. So, you know, that's just a catchphrase that we have just in terms of Better following a stock throughout the day. We want to make sure that the stock is tradable to begin with So there is you know, a certain criteria that we teach in our trading course Volume looking at the liquidity or the spread. Otherwise as we were going over on level 3 Looking at the speed of the stock how fast or slow it's moving per minute So again, I was mentioning before as a newly enrolled student at least, you know a stock like shc God bless it moved up today, but You know looking at how thin the order book was early in the morning and still is now There is better trades for a new student of CTU to follow So, you know that plays in part with it as well, but in terms of tradable trend trap Okay, is the stock tradable to begin with going through that criteria? Trend is there just a basic trend to the stock? So there might be a stock that's tradable based on what we you know look for But if there's no trend to it, then we're not going to bother risking money on it expecting a certain type of move You know, if there's a stock that's flatlining then there's no sense of trying to trade it You know, if there's no activity to it. I'm not expecting for there to be activity to it. You know what I mean Like we were talking about just earlier with that bet beyond that was trending upward leading into the open, right? So I'm following a stock moving upward because we're seeing buying we're seeing active buying pressure at that point So I'm looking for history to repeat itself because of the trend Then finally trap so I have a dry mouth right now trap That's basically looking at level three and level four seeing if there's any funny business looking at the order flow on there Seeing if there's any icebergs that pop up that can create resistance if there's any icebergs that get pulled on the bid I don't know if I have a clear example of seeing the rug get pulled. I Had one yesterday, but I deleted I deleted it off my book mat page So, you know, hey if there's an iceberg on the bid that would create a potential support And if a stock is moving up and up and up and up you might happen to have a style You might happen to have an iceberg order driving that stock upward over time like helping it push up Well, if you happen to see that iceberg get pulled from the bid It's basically like saying what happens when the rug gets pulled So, you know in essence, that's part of trap. That's part of something you want to watch for just in case, right? So the trap parts a little bit more in depth because it requires more time for us to go over Certain patterns on the order book we teach this all throughout our phase one two and three courses If there's something here on book map, I'll try and find before we finish up at least All right. Now, there's a bunch of more questions that that Ryan had sent over so let's keep going through them You had stated that you don't recommend trading within the first five minutes of the market opening yet I noticed you guys do a lot of pre-market trades. Can you just elaborate on that? Absolutely. So, you know pre-market trading Depending on your broker could begin as early as 4 a.m. Eastern time Trade station for myself opens up at 8 o'clock Eastern time There is zero need to try and trade at 4 a.m. In the morning folks Just so you know like if our whole MO is to follow the big money and There really isn't a whole lot of big money trading until like 8 o'clock 8 30 Eastern time anyway in the pre-market Doesn't really make much sense for me to try and be up that early just to say I'm trading, you know So a lot of platforms open up trading at 7 o'clock Eastern time I'd still say the same thing there now the difference with 7 o'clock is that you know There are some stocks coming out with news at that point So, you know, you're seeing news headlines out. You're gonna see some stocks making some moves at that point There will be more eyeballs on the market more volume traded going into 8 o'clock though So, you know, we open up our trading room 7 30. There are some folks in there earlier I get in there rich gets in there 7 30 Eastern time. We post the list up by 7 45 So we prepare you to trade the 8 o'clock move. The list is out there at 7 45 to prepare you for that 8 o'clock move and onward Now after 8 o'clock there could be some more news that comes out stocks making a pop or two afterwards So we're always scanning the market This is a very timely question because I got off a coaching call if one of my students yesterday Unnamed and I was going over this with them as well and they certainly know they've been around the block with CTU You don't really want to continue trading pre-market going into the market open, you know, like by 9 o'clock 9 15 You should be out. You should be done with your pre-market trading at that point If you have some for fun shares and you scaled out 75 percent of your position and you're hoping for one last run at the open Be my guest as long as you're doing it, you know intelligently, but I really try and stay out of pre-market trading after 9 o'clock Why because a lot of times at that point for the stocks that ran after 7 o'clock and after 8 o'clock You're gonna begin to tail off sideways going into the open. You're gonna see less momentum You're gonna see profit taking on those trades too So with saying that not only do you want to give this stock a chance to breathe and relax You want to give yourself a chance to breathe and relax too So I time that obviously pretty comedically, but it's to say hey give yourself a chance to just relax take a Simple water relax and take a deep breath of air You know make sure that you're lined up and prepared for the bull rush that we're about to have at the market open I don't mean bull rush in the sense of upward But I mean just like the floodgates opening up at 9 30 We tend to see so much chaos and volume being traded right after 9 30 So we want to make sure that you're prepped up to trade the opening bell But after the opening bell, we're not just jumping in right away You still want to see the chaos unfold a little bit. So, you know for new members joining us You know, hey, we teach this all throughout our curriculum in terms of making sure that you're prepped up before trading Uh, you know, hey for the stocks that we have on our watch list. I'm not trading each and every one of those Uh, I'm really mainly focused on two or three stocks myself going into the market open Uh, so for those two or three stocks well in the pre-market hours if I'm not actively trading that is I'm actively going through book map and going through level three or level four otherwise And planning my morning out accordingly. So like for this morning the two or three stocks I took the time to prep today. Well, it was bbby It was neo nio a stock that I often follow day day over day It wasn't on our main list, but one of my side list plays and then the stock pre Pre it was up big in pre-market at least so perhaps I can go over this one with you in just a moment as well Just for kind of what I was looking for on this trade You know right now So I was saying that actually let's do that. We'll go over pre while we're at it I mean this is just flattened out since I got in just as we started traders talk So that's not really too appealing not my cup of tea But you know, hey this stock pre much like bed bath beyond it was active in pre-market It was moving at least and this was coming off of news so What drew me to this trade more than anything? Uh, it's a cheap stock. That's up big, you know, hey We see this each and every day where there's this, you know, big runner early in the day Whether it's pre-market or after the open Hey, this can continue this can make another big move after 9 30, right? Now you could say that on a bunch of different trades, right? So why does this stand out more? Well news came out like we said But look at this chart check out like the daily chart for a second folks. This is like really interesting to me Um, all right. So daily chart doesn't look too interesting. I mean kind of looks like a new ipo dropped off, right All right, let's see if there's any other data here. I'll go to a weekly chart Yeah, it kind of looks like a new ipo right and I kind of like back from may of of 22 opened up and dropped What the hell is that? What the heck happened here? I I didn't really dive too deep into this I didn't go online look this up research on benzina as to why this happened But apparently this stock got either delisted or suspended something happened in 2009 Like the year 2009 and here we are now in may of 2022 Reopening up or getting newly re-listed again Normally my trade station chart doesn't show this like type of gap though that that's what made this like really Interesting to me. It looked very odd to me But odd means interesting and interesting means that there's going to be other Other traders and other eyeballs on this stock eventually. So, you know what? It doesn't look that great in pre-market leading into the open It was like kind of flat or more than anything kind of tailing downward Heading into the open All right, well, let me ask us here barb and ravina and sam and all of us here live when a stock is Trending down what color primarily shows up on the time in sales window red, right Sam asking could the company have been bought and gone private Maybe maybe You know to put it more in a blunt regard When it's this early in the morning unless if it's at like 815 and I caught that and like if I had A lot of time to try and dive deep in research, then that's one thing But you know the closer we get to the market open Just let's be more focused on where the levels are where the iceberg levels are we'll pull a book map in a moment Folks where the historical levels are now looking at the monthly chart there For instance one level historically that I thought Could have been a big level or could be a big level as the day is not over yet technically Obviously, this is downward right now still But there was a doji on the monthly chart back from uh, july right at four bucks I thought four could have been a really strong Historical level heading into the open today. I marked this as a really big Historical level going into the open But otherwise though, you're right when the stock is trending down and we're seeing more red coming in on the tape And what do we nickname red as folks? What do we nickname red as at least here technically it's volume filled at the bid but red on the tape we nickname it as selling So with saying that well, what happens if History repeats itself what happens after the market opens up If we happen to see more selling at the same prices that we saw within pre-market Well, in this case actually this ended up just continuing to pull back as soon as the market had opened up So it resumed its downtrend All right. Well simple enough simple enough, you know, it kind of broke below this whole number price this, uh bright blue line of three bucks, right? Let's just call that support for right now, you know, it was wholly above that that bright blue line of three As soon as the market opened up it broke under it. Okay when a stock breaks under support folks and it drops off from it We should expect support to initially become Resistance perfect Now here is where I will be transparent Well, it first popped up to three and i'm expecting resistance But it led me to think i'm like, well, I thought it was going to drop off lower A lot lower At the time here it did not and pushed back up I'm not going to be perfect with anticipating what a stock is going to do Literally no human on planet earth is going to be perfect with anticipating what a stock is going to do If you're a new member here, I just want you to realize that hey Myself and Fausto Rob Booker any educator within the industry Is not going to be perfect with their Anticipations of what a stock will do. So I thought it was going to drop off lower at first It ended up popping back up here at this point started running up to three All right. Well, I'm still very hesitant. I'm expecting resistance here at the time So it popped it it held it it popped it again And you know, it's trying to build a little support here off this darker blue line. I'm thinking All right, if this could pop over three again, I think that there's a chance for an entry. There's a chance So Right here on this white bar the one minute it snipped above three folks Transparenly enough. I jumped in right at three bucks Now much like I teach you When a stock breaks through a big level if this is such a big level Then we should be getting a pretty good reaction very soon So I don't want to hold on any longer than I need to if I'm wrong It's easy to say here. I was wrong it ended up pulling back I ended up getting stopped out right at 296 very quick exit Well, I guess I made the right call with at least that exit Perhaps maybe I shouldn't have gotten in all together But that's the easier comment to make in hindsight. What if this ended up holding here and ran all the way up? So every trade begins with the entry, right? Every trade begins with you know seeing a stock break through a big level on the way up So with that hey, we got to expect a good reaction after that bet beyond it led to that good reaction right away after That's what you need to expect even if it were to pull back down later on You need to have that good reaction to begin because otherwise. I mean this is a simple question to ask and answer, but Do you want to get stuck holding on? right Now earlier on this trade it was trending down and ended up dropping off more later on Well, let's go over book map here. Let's bring up level four here right now and we'll see where we had potential support All right, so you tell me where do we have a dark red line that goes across the screen here on book map? Go from left to right. What price do we have the darkest? Red or orange line going across the page? A couple of us saying two forty nine to sixty, but a few more of us saying two forty Yeah, right here two forty a hundred thousand plus shares on the bid right off of two dollars and forty cents Uh, you know, this is out there across the majority of the pre-market since just prior to seven thirty So it's not only the size of the order that stands out. I mean, that's a hundred thousand shares Meanwhile, everything else here is like You know a couple thousand at that, you know, maybe ten thousand twelve thousand here but This clearly is iceberg support at two dollars and forty cents for the pre-trade So earlier this morning just inside the chat board just so you folks know like this is why we like to always like call this out Inside the room. I wrote inside the chat board and I gave respect to 250. I did give respect to the 50 cent level initially You always want to focus on 50 cent levels and whole numbers, of course But you know, hey, I was saying both pre prd looking for s at 250 then 240 And I wrote that at 948 eastern time. So, you know, at least from that point it ended up dropping back down Right from there Now I took a couple of trades on this the second one of which i'm still in right now But the first one I thought was going to make for a great bounce and that was the better In my opinion, even if this moves up higher now at this point, it's just to say when you're Following a big level for a stack if it's the first time that level is getting tested on the day I often say the first test Is the best test right when a stack breaks above resistance and it runs off of it Resistance should initially become support keyword Initially the first time right? So here it's not like this broke above 240 resistance and flew up It's just that this was pulling back to 240 as a potential iceberg support Right here is still technically the first time it's testing it right there, right? So My best entries to buy a stack. I mean for phil and cat lean lead a grant Carol, you know you folks are longtime students of ctu and you hear this each and every week here, right? My best entries to buy a stack are directly after it breaks through a big level going up Now that could relate to resistance that could relate to bed-bath beyond breaking over and above that 179 resistance that I that I that I looked at If I'm looking for support here on this trade if I'm expecting a bounce if I'm looking gunning for a bounce I I don't want to catch the falling knife. I don't want to just buy this on the bid You know place a buy order out there at 241 kick my feet up and okay, you know, it's it's gonna hold It should hold right I mean that's like the same thing as going short as a stock is running up, right? So obviously that's not a bright idea With this trade what you want to focus on at least is seeing it break under 241st Because hey if this breaks under 240 and fails to break back above it Then there's no entry based off that that simple kind of Catchphrase going with the momentum of it breaking back over the level So here in this case, we're just looking for it to break under the level And then as soon as it broke back over the level that was the first of my two entries on this trade I ended up getting stopped out though. Unfortunately, this didn't make the move I ultimately wanted at the time it ended up just failing to break higher off the $2 50 cent price And then from there stopped me out break even minus one. It's a break even trade But going into traders talk just going into 11 o'clock. I ended up re-entering this so I'm actually in this right now off 243 I wish this ran up a lot faster if it's going to run up at least at this stage because I had said before, you know, I'm not trying to hold on to a position All throughout the day, especially as we head into dead zone time here like going into 12 o'clock noon So as I re-jumped into this trade going into traders talk, I really wanted this to run up a lot faster If it does it now or soon god bless, but Um, the more it just kind of flattens out here. I think it's eventually just going to break down more So my stop is set on this trade already at this point. So it's got to be careful All right So, you know, I was kind of going over a couple of different things here on the pre-trade answering for ryan at least You know, treating the first five minutes and trading pre-market elaborating the difference in the timing of both A couple more questions from ryan just asking. Do you discourage trading only one stock for the whole day? Or do you recommend trading multiple stocks during the day? This is a very important question For a new student I don't want you to be trading more than one stock at a time But you have to be watching more than one stock at a time. There's a difference between watching and trading, right? But with saying that Until you really get a good grip for our strategy until you have good screen time in our room Like being active with us for a number of months Until you really have your head on straight with saying, all right, this is what I should expect here This makes sense there unless if you're at that stage, you should not be trading more than one stock at a time Now again, though when it comes to watching more than one stock at a time Yeah, I mean, I want you to be following a group of stocks, you know, two three four stocks At a time just because if you for the one stock that you pick, what if it does nothing? Hey, what if I jump into this trade here and I only watch this for the next hour and a half of my life And this goes sideways There's got to be other fish out there in the seat for me to catch So I don't want new students of CTU to actively be trading more than one stock at a time But you know, they should be following a group of stocks two three four stocks at a sitting Myself I follow four stocks at a time three or four stocks at a time I try not to follow too much this, you know It's not like hey if you have 16 stocks on your chart on one screen that doesn't make you a good trader Trust me. I've learned, you know back in 2015 when I first started teaching for Fausto and being a moderator in this room I thought, you know, I'd make my life a lot easier having 12 or 16 stocks on the same screen like mini charts on one monitor Don't get me wrong. I was like a machine gun making all sorts of different call outs, but I felt like back at that point in 2015 I was overwhelming the hell out of all of our students back then and myself You know for all those stocks I was calling out was I really able to concentrate on one of those trades versus another So, you know If you have multiple monitors great that that's you know something that's needed in order to follow what we do And if you have a monitor devoted to a few equities few charts, perfect That's what that's what I do as well. But don't overwhelm yourself. Don't try and follow six eight 12 That doesn't make you any good of a trader. All right So, you know, those are my general thoughts at least in in terms of following more than one stock at a time. All right Can all stocks be shorted not all stocks could be shorted? Your platform oftentimes will Signal if a stock is shortable to you or not if it's hard to borrow or if it's easy to borrow I think or swim outright will tell you if it's easy to borrow or or hard to borrow or even none to borrow Here you could see on my trade station platform for pre it says next to the ticker Hb and parentheses that means hard to borrow So you would need to check with your platform with trade station here to see if you're able to actually get the shares to short them all right Ryan makes a comment on ETFs just with that really briefly so With that folks unless if you have level four, I would not want students to be trading in ETFs You know if you came in to see to you from raw bookers group following the cues or following the spy If you have your own strategy and if you're consistently profitable with that stick with it Would never tell you to change habits if you have a winning system, right? But if you're not consistently profitable on the spy or the the cues of the ETFs Don't try and and learn how to trade them If you have level four if you have book map it will make it a lot easier for you to do so But if you don't have book map, I'd rather you just keep your focus on equities It trades a lot different looking at level three and and equity like a stock versus an ETF All right In between question from sam. What does hb and f mean hb means hard to borrow f means Failed to meet nasdaq listing requirements if i'm not mistaken One thing i'll just briefly do right now is i'm on this The copy and paste a link inside the chat board right now for all this inside the room This is directly from trade stations website, but this could help you better understand some of those little abbreviations Next the ticker on my screen like hb F if there's anything else otherwise the link i posted inside the chat board will give you a little link to that What about leveraged ETFs same thing as ETFs just an ETF It's going to make it a lot more difficult to follow the order flow unless if you have book map so Again, if you were consistently profitable trading the s and p you're trading the spy already stick with it But if that If the if the answer to that question is no, are you consistently profitable trading an ETF already if the answer is no Don't try and be hero and learn it trust me You're going to have a lot easier of a time following the big money for a stock more than an ETF A lot of what i advise you folks to do or not do is based off of past experience So trust me when i say that i've tried and i've went through studies of following ETFs Again, if you have book map it gives you that edge, but otherwise it's going to be a lot tougher to follow big money for an ETF Generally, would you say trade station is a much better platform than thinkorswim Since thinkorswim now has book map data. I really can't say that trade station is Leaps and bounds better. I personally i'm comfortable on trade station. So, you know, i'm a bit biased perhaps But you know, otherwise though if you're more comfortable on thinkorswim And if you have book map added on to it, you're in good hands. You're on as good of a platform as you could have All right Right now folks current time is 11 59 going into 12 o'clock. We're going to run another 10 or 15 minutes here We got a few more questions to answer. So we're going to keep it going a little over time Would you elaborate why there are two time and sales windows? There we go So, uh, you'll notice below my historical chart daily chart here That I have two separate time and sales windows right here and the two that i'm waving here used to So I have two because one shows me every transaction that got completed big and small And then this one here the the left word time and sales here Uh shows transactions greater than 1000 shares This is just how I've had my platform for so long now So i'm accustomed to mainly keeping my eyes On this time and sales I do happen to use this one though for stacks that are trading a lot thinner volume out there on the order book For stacks that are you know moving a lot faster and stacks that are trading a little less liquidity out there on the book So, you know a stack like shc would be a little bit more beneficial to read the smaller retail time and sales Uh, what time of the day do you normally expect to see reversals had covered that earlier roughly uh around 10 15 10 30 Also, the way I like to teach that is you know, that's part of like what we teach with the cyber clock You know, we have a little clock that we sell on our website for a mouse pad and a clock So, you know 10 30 is off that reversal time, but the way I teach this it's you know transparent It's true, but it's kind of funny You know, it's not like the market makers are sitting out there at their desks and they have like their stop watch and they're like Up 10 30 Fausto Puglisi cyber clock You know what I mean, you know if every stock reversed at 10 30, you nor myself would be here on this call Right, so roughly around 10 30 Uh, I typically say between 10 15 to 10 30 sometimes depending on a healthy market It could be a little after 10 30, right So if you're in a trade you're making money from the market open And we're getting close to that reversal time much like we talked about with bed bath beyond If you waited till 10 30 on the gun for that and you wasted a lot of unrealized profit, right? All right question from Dario on youtube joining us here Welcome aboard Dario and any one of us joining us this week on social media asking Uh, what data feed do we need? So, you know, that was asked just a little little uh little while ago So if you're on trade station in particular, I would recommend NASDAQ data package NASDAQ data package number three So that will at least get you the NASDAQ ecn data on the matrix The more data subscriptions that you could add to it the better There's a couple others that trade station offers for about like 10 or 13 bucks a month to add on So everyone has their own budget and whatnot, but the more the better Um, you know book map is different So if you have a question on book map feel more than free to just email me that on the side And I could answer that to uh answer that for you through email All right, so that's for Dario or any one of us otherwise there All right, we're going to keep going just an extra five or so minutes folks We're going to finish up in just a moment All right, I think I got Ryan's questions here for the most part Last one actually how do you know when to lower your exposure to a position while trading? Is this based on the expectation the stock may rally or fall further? So if you're asking generally in terms of position sizing Everyone is going to have their own sizing right everyone has their own account when they join ctu So if one has a larger account size than another they could technically trade more shares They could trade a more expensive stock That's the more important part to me with a bigger account size You know if you join ctu and you're already a consistently profitable day trader of stocks I'd be led to believe that you're going to be more confident to increase your share size Over time compared to someone that is not of that experience Now one might be confident joining ctu They may not be a day trader prior to joining us, but they may have 20 30 40 years Of overall market experience trading swings and options you name it That experience will will take you a long way It really will and who am I to say it won't because I you know, I've been here for eight and a half years now I'm going to go into a little bit more about myself in a moment But you know, hey, there are folks here that have decades worth of experience more than I do So I'm never disrespecting any experience. It's going to take you a long way But as a new Day trader of stocks if this is your first go around with day trading equities I would not want you to be trading a lot of shares at first Even if you have a larger account size We all start off on the same square all this on the same foot, right? Same square one, right? So I would recommend for any new student joining us Even if it's a cheap stock to trade just 50 shares 100 shares to get the feel of things at first Hey when you started to ride a bicycle as a kid you fell off the bike more at first than you did over time, right? The same thing applies here. The difference is that our life and our money is on the line here, right? I guess you could say your life is on the line when you're riding a bike But your money is on the line here. I think you get the point So we don't want to crash and burn and lose everything that we have When we're more expected to make mistakes initially, right? So that's where you'll hear myself and Fausto preach like don't trade a lot of shares. This is a marathon this is something you're trying to to learn and and master for the next several years decades down the line, right? I mean, hey, let's say if you were, you know, relatively young you're 30 40 50 years old And you're trying to still do this for the next several decades And if you're doing this now at like 65 70 you have the time and money to do this So that's whereas other folks that you know are younger. They may not have the time to do this You may be retired semi retired and you have the time to supplement your income God bless But otherwise though, that's where I say we're all on the same kind of starting point We don't want to kind of overstep boundaries and overstep, you know Just what we should be doing initially because I've had new members join us that are not new members now They're not members at all now they quit pretty early on because they blew up their account So we want you to gain the confidence to say, okay, you know what? Let's trade this on 500 shares. Let's trade this on a thousand shares over time Now when it comes to like Timing of the day and how much I'm looking to trade at one point in the day versus another Primetime trading gets my attention the most from 9 30 to 10 30 in the morning Primetime trading so that's where I'm not trying to trade a crazy number of shares be a gunslinger But that's where I'm trying to make my income trying to make my days pay So that's where I'm trying to trade my normal share lot 500 a thousand shares mainly Heading into this time of the day. I'm scaling back at least 50% if not more this time of the day At this point right now I will admit I haven't journaled my trades in a little while because I found my groove. I know my weaknesses. I know my strengths. I know what to watch for throughout my day So one thing I could at least tell you I don't have a percentage But I give back a lot of my profits that I made from the morning as we transition into 11 30 12 o'clock at least I lose some of the profits more than I continue to stack up profits So it doesn't make as much sense for me to be Active during the late morning early afternoon if my winning percentage simply isn't as high as it is during prime time If that's the case then I'm not going to be as compelled to keep my share size my position size You know the same as it is from the morning. That's all All right Now last one here. We're going to wrap up at least for right now. This one came in from michael More or less just kind of asking because he's coming from rob booker's Group hot sheets. So again coming from rob booker's group folks. We welcome you with open arms I know it could be a hard adjustment because rob is just you know a huge name in the industry And you may have been with rob booker for a number of years likely very comfortable with his teaching and likely very hesitant to Commit yourself to anyone else's teaching Whether it's fausto or anyone else Now, you know, my this member michael has seen fausto in the past He's watched him on webinars. He even attended our trial or our trading room as a trial member back a long while ago 2015 I was still here there michael. So you probably don't remember me But nonetheless though michael was just asking for me to give a little bit more insight is to my trading background How I came to be with fausto at c2 I like this question because I will not because I like talking about myself But we have new members joining us here and like I'd said, hey, you may be very familiar with rob And used to him and you may not have the trust yet of you know, anyone else fausto Or some schmo like myself some nobody that you've never heard before correct Let's be truthful, right? If i'm looking to risk my money not just in the market or if i'm just looking to spend money on education I gotta have faith and trust in it. So I certainly understand that for any new member joining us here They're unfamiliar with me personally. They may have seen fausto. He's been doing it for 30 years But i'm kind of like kept like inside this trading room for the last eight or so years So, you know, you don't really see me on webinars too frequent, right? You don't see me with fausto in his introductory today trading webinars Perhaps that changes this year. We'll see but nevertheless, I started with fausto back in 2014 I came from a real estate background Prior to that I was just doing kind of just jobs like around long island kind of uh, I don't want to say minimum wage But you know, just not really a real profession So back around 2011 2012 I dipped into real estate I was doing more residential rental sales residential rentals in new york city financial district conveniently enough wall street Uh, I was not focused on the stock market there, but I was focused on a lot of these luxury high-rise rentals in new york city in financial district um, I was working at a good company at the time, but They they didn't really have the exclusive properties that I was able to represent solely myself So long story short I was kind of swimming upstream with that market. I wasn't doing as well month over month I was living in brooklyn at the time with my own apartment. This was back when I was like 22 Now i'm 31 So, you know, it's at this point now that i'm like, I don't know if this is for me Uh, anyone anyone with a brain to comedically put it anyone with a brain would be able to look at A listing that I put out with real estate that charges you a broker's fee They look at another advertisement the same building the same apartment The advertisements from the building so they don't charge a fee. What would you pick? I mean, hey, I'm sure that you wouldn't pick the one that pays the fee, right? So I ended up realizing that I said, you know what? I don't think this is going to work out I ended up moving back from brooklyn back to long island new york back in my parents house at the time And I was just looking for a new gig So i'm on indeed.com over the summer and into the fall and I find cyber trading university And the first thing I legitimately thought was like, you know, this has got to be like a pyramid scheme company It's got to be, you know, some scam because I'd never learned in college school Anything had to trade the markets didn't learn a thing about the stock market economy really outside of micro macros Economics, mind you, but you know in terms of how the stock market works No one ever taught that in school So I was pretty reluctant to try and be like a sales rep for Fausto at that point back like october of 2014 But my join on and you know, you start hearing stories of traders making this much money per day that much money per day And your eyes light up like a christmas tree, you know Prior to joining Fausto. I had zero experience with the stock market didn't know what a short was didn't know how to short So ultimately your eyes light up when you start hearing traders making five ten grand a day and it's like Is this real? Is you know, if it is then I need to learn how to do this So really to tell the full story behind this Really the full story behind this You know, there were a couple of other reps at the time working for Fausto like same as me um I took the most interest with learning how to trade the other reps like we're kind of just doing their job Just nine to five get the paycheck God bless, right But I wanted to learn how to do this Shoot, I really wish I can uh show you this right now If if there's enough time i'm going to try and put this up on the screen as we wrap up traders talk I'm going to try and show you an instagram post I made back from november 9th 2014 I'm in my parents House at the time my childhood house. I post like a video of myself watching Fausto's class at that point So I was obsessed. I was obsessed with like learning how to get this right just trying to master this And that's important because around 2015 late 2015 Fausto's instructor at the time ended up leaving the company. There's a bit of a fall out there I'm not going to go further into that but it's to say that I was kind of the next person up and I was already at that point pretty fluid with Teaching the phase one stock course the beginning the beginner stock course Now when this fallout happened, I was not ready to teach the intermediate class. This was at the end of 2015 so What I basically did was I took it to the next step. I made this my obsession my life You know, I ended up just kind of Falling into the classes every weekend inside my basement, which became my home office So I really made sure the shoes were filled at least at that point Looking back on it now now that we're in 2023 and that was about 70 years ago itself I was very green at that time to teach I was very green at that time to teach and Fausto made a big risk with giving me the keys to the car that early on to teach folks How to trade the stock market and risk money themselves But because I was looking to fill the shoes as well as possible I think that kind of not not stunted that only accelerated my growth that much further To be further transparent with book map You know the more that you trade You're not going to have as many light bulbs go off Over time There will be fewer and fewer light bulbs that turn on over time Meaning more of those like revolutionary points where you're studying that make you say Why did I not think about that the whole time, right? Well, when you first start learning how to trade learning how to do anything you're going to have more of those light bulbs turn on Frequently and you know fewer and fewer will turn on over time because you're learning curve kind of plateaus My learning curve, of course accelerated when I wanted to fill those shoes a bit further for Fausto But when book map came out when level 4 came out That really made you know provided that next step You know more light bulbs turned on in the last three plus years than they have the the four or five years prior really So, you know, that's basically kind of my upbringing to where I'm at now I've been trading live with Fausto since late october since early october early 2015 I started with Fausto in october 14, but early in 15 I started trading it did not go well at first. I ended up going back to sim It's not like I blew up this giant account and I don't really have a You know sexy story for all of us outside of just saying I started off with Fausto as a sales rep And I became obsessed with you know trading and then teaching all this together But I've been doing with doing this with Fausto now for about eight and a half years I kind of consider this if anyone's a golf aficionado here It's like kind of waking up every morning onto a brand new set of 18 You know, it's a different course every single morning different stocks that we're trading each and every day So, you know, it's a brand new set of 18 basically that you're waking up to All right, folks. So with that we're going to finish up. I guess last question from Leda. Do you get any sleep? I've gotten more sleep recently. I've tried Last year not so much. We're going to make it more of a resolution this year Karim saying I really want to do this as well. Well, I'll tell you what Karim You got a couple of options First and foremost, if you're interested in continuing us here, whether it be today tomorrow next week, you name it Just go right down to the link on the blue banner below right there It just popped up on the bottom of the stream right there You could sign up for a week long trial inside our live trading room If you have any hesitancy prior to joining us I always like to post my email here at the end of these streams We always are on every weekday at 9 a.m. Eastern and at 2 30 Eastern So I'll be back on here for youtube this afternoon at 2 30 But any questions that you have prior to joining us inside our live trading room feel more than free to send me a quick email Right at josh at c2 trading dot com But with that in mind folks here, we're going to keep the call outs going We'll see if there's anything else out there making a strong move. Let's check out that pre-trade again It's like kind of just laying flat So I'm more hoping now than anything that this ends up blasting above 250 and makes a stronger You know run back up, but otherwise there could be a couple of good plays ahead I mean the shc trade looks like it cooled off a bit It's still technically hasn't truly made that lower low So, you know if 17 holds the support perhaps that could lead to another rally later on today But hey, we're going to keep the call outs going folks Um, again, we'll be back on social media at least later on this afternoon right at 2 30 2 30 p.m Eastern talk to you folks soon. Take care