 I started in the PDT rule, like three or four years in the PDT rule. Obviously you become a different trader when you have different kind of restrictions. And when you are out of the PDT and you have all these things, you have this huge difference between the trader you started and the trader you're going to become. What's up everyone? Welcome back to the after hours podcast. Today we have a very special guest Eduardo. Thank you for joining us, bro. How's it going? How you doing? I'm glad to be here, man. Every single interview you've had is such a world class. So it's an honor for me. Thank you, bro. We're trying to do it a little bit differently. We're trying to kind of bridge the gap between the trading world and the real world. So yes, this is a trading podcast. We're going to ask you trading questions, but we kind of want to know the guy behind the screens as well, right? So I guess we'll start with the most simplest thing is how you guys started day trading? Well, actually, I was in Venezuela. I'm from Caracas, Venezuela. And I asked everyone, you know, you have this bug where I think maybe Hollywood has something to do with it that attracts me to the, you know, to the exchange and all those things. And I started like trying to see if school would give me that. That's why I did an MBA in finance, but clearly it wasn't it. I made a few courses on like trading and investment and all those things. And I realized that volatility and liquidity were so important for day traders. So I tried to look for, you know, these kind of assets that has those characteristics. And I found Tim Sykes as many of us. So I started with him. It was probably early 2016, late 2015. And as everyone, man, just making a lot of mistakes, trying to figure out which strategy was fitting my personality. After all that came to the U.S. and try to figure out a way that trading could make me survive in all this, you know? And that's why I think my way of trading, it's a lot trying to protect myself, you know, because of the background that I had. And that's how I started, you know, pretty simple. Yeah, that's super cool. I saw in a couple of your tweets where you would talk about kind of, like in your kind of like charts that you post where you kind of like, I guess like you would show like when you're kind of like revenge trading or fighting and you'd say, okay, that's kind of the old me, right? You've made a couple annotations like that. And of course, like I follow you on Twitter and I think that your content is great. But like, would you mind kind of explaining how you went from that old you, that kind of like overtrading a little bit to the kind of like person that you are today? I think we all have this kind of, kind of evolution in our trading, you know? And I think it's pretty important for us to try to be better than we were yesterday. And I think what resonates the most with me is recycling shares. I was talking with Baudes on LA and I didn't know he was such a kind of inspiration to me to do this kind of things because although it looks like I trade a lot, I only have like one idea in my head. And I just try to make, take advantage of the noise. And that's why you see a lot of executions in my charts and stuff. But I do have one big idea, one core big idea, which I try to back up with fundamental kind of analysis, try to understand those patterns, that penny stock framework, framework which is leading that cycle of a penny stock. I usually, I only trade small caps. And that's why I'm really focused on my niche. So whenever I have this really big idea, whenever I have this huge bias, I, even though I want to maybe short it all day and try to fade it, for example, I will be adding in every single pop there is and I'll be covering in every single flush there is just to recycle my shares. So yeah, I obviously, well, I started in the PDT rule. Like I was probably like three or four years in the PDT rule. Obviously you become a different trader when you have different kind of restrictions, restrictions. Yeah, of course. And when you are out of the PDT and you have all this things, I started like trading with the hotkeys. So obviously you have this huge difference between the trader you started and the trading you are and the trader you're going to become because every time I try to optimize my system, every time I try to hold to my position a little bit longer, every time I try to scale a little bit in my positions because my PNL tells me that I'm in sync with the market. So I try to push it hard a little bit, a little bit harder. And obviously sometimes when you push harder, that's when the demons start to come in. And I think one of the most important thing of the trader is trying to understand those demons because at first you're trying to master the markets, but then you realized that you have to master yourself in order to perform as in an elite level. So I guess I'm trying to understand and master myself so I can be better and I can perform better. How long did it take you to find this style? You said that, you know, you're scalping and you're finding a trend that you're focusing on, but before you kind of found a style of figure personality, what were you doing before that was not working and how long did it take you to find this system that was actually working? I think I was trying different things. I am all over the place. I started with Tim, but I also went through all of the services there is. And I think I was trying to find myself comfortable with a style and I developed it eventually. But at first I was trying things and one of the mistakes that I made was trying to test all these different things with a lot of money. Like I tried to make money out of the markets instead of trying to understand which kind of strategy fits my personality, which kind of trading styles fits my personality. I was trying to make it. I was trying to get those 100 bucks so I can survive and so I can pay the rent. And I think that was one of my main mistakes. I was not detached from money at all. And when I started to understand that this is not a profession that would give you the surviving skills, but gives you the growing skills, once I understood that, things started to change in the way I approached trading. I started to look at the setup a little bit more instead of the money that I was making or what I was losing. I was trying to understand the risk management a little bit better. So all these things, obviously at first, I was a disaster. I didn't have even a journaling habit. When you understand what you're doing well and what you're doing wrong, it's really important that you set it into categories. The quality one, which I do a lot of report cards and stuff. And the quantity one, which is the statistics. There are a lot of services that provide those kinds of statistics where you can drag all your and upload all your trades to see what's working. I was not doing that. So whenever I understood that, I began to adapt that personality to each one of the systems that I learned. I don't have like a primary person that taught me something. I have like six that were like role models. And I grabbed risk management from this guy. I grabbed strategy from this guy. I grabbed style from this guy or technique from this guy. So I have like a Frankenstein in my trading style. And I think it was just because of that because I realized that I had to do it. If I didn't, I would have, you know, lose more money than I did. 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So go to myinvestingclub.com slash live trading to get 50% off your first month on the live stream. Spaces are limited and filling up quick. What do you have to lose? This may change your life. So you would say that kind of like how you got to where you are is mostly because of just uploading your stats into like something like trader view or just like, you know, one of those type of websites where it kind of gives you the ability to say, okay, this is what I'm doing wrong. This is what I'm doing right. And I'm going to take what I'm doing right. And whatever I'm doing wrong, I'm just going to just delete that, you know, I'm going to avoid that shit, you know, if I'm losing along the breakout, I'm not going to long the breakout anymore, you know, stuff like that. Totally. Well, it's kind of sophisticated how you say it, because I didn't have those tools and I didn't know it exists at first. But I did like really manually kind of a little crafty kind of way. I try to understand that. And I think if you don't, like if you don't know which setup you're good at, and if you don't push the gas on that setup, it's probably going to be really difficult for you to be profitable. Also, if you don't know what your mistakes are, for example, I, and this is this is a non going on going activity. It's not something that you will do one day in that set or one month or one year. I keep doing it all the time. For example, one of the setups that lose a lot of money for me were anticipating a reversal on the gappers. So I was buying I was keep buying love days, love days, love days. And that's where my the majority of my losses from 2022 came from. So when you realize that, as you said, she just stopped doing it to just erase what you're doing and try to focus on the things that you do well. Yeah, I think it's really important because we have a lot of guests on the show. And what a lot of people say is pretty much the same thing is they there's a certain setup that they make the most money on. And on those setups is when they're starting to size. And like for me, when I see a first red day setup, that's the that's the setup that I need to be able to use a lot more size. Whereas if I'm trading day to day stuff, I'm not using the same size, right? It's like, if I'm trading the example that I give to other traders is like the regular season games versus the Super Bowl. The players that are playing during the regular season football games. Yeah, it's an important game. But at the end of the day, it's not the Super Bowl. When the Super Bowl comes along, you better be prepared, you better be there, you better size up, you better do it because that's the game that matters, right? That's the game that matters. So as a trader, if you do not know what your best setup is, if you do not know what your highest probability setup is, that means that you're probably not ready to size up yet because you don't know what that opportunity is. So what Eduardo is saying is that by going through his statistics, by going through his metrics, by going through his numbers, he learned that this setup was working. This setup was not working. So as long as he eliminated that setup that was working, just by method of elimination, his profit grew. It's just like, it's that simple, I think. I think trading is really simple on a technical kind of thing. But when the demons come along, that's where it gets tricky, right? That's where it gets like, oh, I'm buying low of days. But I know this stock is going to bounce. So that conviction mixes up and makes you take emotional decisions. That's why I think, like, yeah, technicals are very important. If you don't know the technicals, you wouldn't be able to trade. It's like saying that Cristiano Ronaldo is a really good soccer player, just because he has a really great mindset. Obviously, he knows his thing and how to play soccer. But I think every one of us are good at technicals. What differentiates us is our mindset, is how we apply all the things that we know that we need to do and we need to execute, and how clearly I am to, for example, if Alex sees that red day on BBBY, how I am going to apply whatever I know it works and being, in a way, reckless to hit that Super Bowl kind of game and try to win it and try to seize every single opportunity there is with that kind of setup. Yeah, I think a lot of people struggle with that. I think a lot of people don't know what their best setup is. So because they don't know what their best setup is, they're not able to properly size up when that comes, because if you don't know what your best setup is, you're going to use the same size for every single stock and you know that you can't use the same size for every stock just because of the probabilities. So there's a recurring theme that comes along, guys. So for those that are listening, pay very close attention to what is your best setup. If you don't know what your best setup is, it's very easy to find a trader view, an Excel spreadsheet to be able to track this as, all right, every time that I buy a stock before 11 a.m., I lose money. Every time that I short a stock free market, I lose money. Every time that I trade a stock over $10, I lose money. So just by knowing what you lose money on, you're able to kind of fix that. So I think that's really important. And now, yeah, go for it. Yeah, I was going to add something to that because I've been coaching a lot of people lately. And what I've seen is they don't have the specific criteria of each kind of setup. So if they, like, okay, which is this setup? Oh, that's a dip buy. So a dip buy. And what's the criteria behind it? Like, is it a low flow stock? Is it a stock with news? Does it have a catalyst? What the price is doing? Is it above BWAP? Is it above the open? Is that red on the day? Is that green on the day? Does it have overhead resistance? What kind of news is that? Is that something that brings revenue to the company or not? Is this company has, for example, urgency in order to raise money? Do they have cash flow? Do they don't? Like, all these things are really, really important that you have it really, really specifically so you can determine which kind of setup this is. For example, the first red day, you got to have some kind of extension and you got to have a number of days, a minimum number of days, which the stock is going up. And if you don't know that, if you only, like, a short extension on, I don't know, 30% of an extension, and you go like, yeah, this is the same thing that 150% of extension, you will have a lot of issues. So try to focus on, be specific on the criteria of each setup and try to have that pattern recognition in order to seize it when you see it again and again and again. Yeah, no, I think that's great. And so you kind of mentioned like a company's ability there to like, you know, need cash or like, you know, do they have like an S3 on the shelf waiting for you kind of thing. In your setups, do you read the filings at all? Like, do you pay attention to that kind of agenda? Because we have had traders on here that have said, I read the filings, you know, I have my tinfoil hat on every single day. We have had other traders that say that, you know, they don't read the filings as much as they should, or just that they don't want to read the filings because they don't want to get too biased. So what's your kind of approach to stuff like that? I think you got to know what you're trading. And obviously, as I am a momentum stock trader, whenever I trade a stock, it means that it has a lot of volume. So when I see that it has a lot of volume fundamentals, you know, are not as important. But I do want to know whether that stock has an ATM or has warrants at a certain level. Like, I do not want to understand the whole big picture of everything that I'm trading. I probably won't spend like 20 minutes on the filings. I would probably like, we have a lot of tools nowadays, which I remember I had to, you know, open each one of the filings on the SEC website and stuff. Right now, we have a lot of services that provide that. And with only five minutes, you can go through every information that you need to know. And as that's that, as it's so easy to go through that information, there are a lot of people that know that this has an ATM, for example. And that's why a short quiz is a quarter. So if you understand that what the other side of the trade is doing, I think you have an edge in the mass psychology kind of kind of setup. You know, so if you understand that everybody is going after the same thing, you can go otherwise, for example. And that's why I think when you're a momentum trader, fundamentals are not, doesn't have the weight that it should. And that's why, yeah, I look at the filings, I look at a lot of fundamental things, but I don't spend a lot of time on it because I think those are, doesn't give you edge, but gives you a lot of conviction. Yeah, yeah. That's a very good point because it ends up happening is because the information is so easily accessible these days, everyone has it. Because everyone has it, everyone's on the same side of the trade. If everyone's on the same side of the trade, the inverse happens, right? So it's almost like you're playing 3D chess. So it's crazy because these tools are very helpful. But at the same time, they could be very detrimental because they'll give you the false sense of confidence. But I kind of wanted to shift gears a little bit and ask you because you recently hit a million dollar milestone. So I wanted to ask you how that felt and what that's like being officially a millionaire, bro. Bro, it's such a relief. Like I spent probably, I don't know, like eight months being this close. And whenever you have that milestone, money milestone in your head, I think it messes with your trading because you're thinking about the money, you're thinking about an amount and you stop thinking of the setup, just stop thinking of ceasing the opportunity. So I think that got into my head a lot. Once I go through it, I remember in Kimfo, they changed the locate thing and I got all over the 900,000 again and I had to do it all over again and it messed with my head. It was so hard to get rid of that milestone for a while that I think that's probably one of the struggles that we have as traders because we obviously are here for money. Like obviously, I love this game and I get up on Monday so excited and so happy to do what I do. But obviously, if I don't have that reward, that money reward, I wouldn't be able to do it on a consistent basis. So obviously, you have that in mind. But whenever you do, whenever you're focused in that amount, I think you won't be able to seize the opportunities as you need to. That's why one of the main, if I had to have one tip for people, it would be detach from money. Like if you detach from money, if you really, really understand that what you're doing is not for money, but to seize opportunity and to try to take advantage of those patterns that you see over and over and over again, I think it will be really difficult for you to become a profitable trader. Yeah, that makes a lot of sense because it's true, bro. It's all in your head at the end of the day, 950, 980 million, 1 million. It's all in your head at the end of the day, bro. So like, it's good that you cross that milestone, but also for people that are watching this too. If you're at trying to cross the 100,000 milestone and you're at $98,230, what a lot of people will do is they'll be like, today's the day. Today and then what's going to happen is the opposite is going to happen. You're going to go back down to 85,000 or whatever it may be. So it's all in your head at the end of the day, bro. Hasn't that happened to you? Like when you're trading and you're like, I don't know, maybe $977 and you want to get to that $1,000 mark on the day, those $33 are probably the most difficult dollars that you can ever make in any trade. And you know why, bro? It's because you're not trading the right thing. You're just, at that point, you're gambling. You're gambling for that $30, $4.11 maybe. So it's happened to be all the time, bro. It's countless times. I've been at $9,982. I'm like, you know, bro, I'm going to make an extra 20 bucks, get it to 10,000 even. I end up going right on the day. I go right on the day. I lose all the money plus more. So these days, bro, I don't care. I'm just taking the money and get it away. But it took me 25 times, 25 times to be able to learn that lesson. So that's why trading is so difficult because you don't know how much money you have to lose to learn that lesson. For me, it takes me a lot of money to lose a lesson. Right? And that's what I don't like. But at the end of the day, that lesson that you learned helps pour to the rest of your trading career. Right? It's not just this lesson is learned and it's going to be only valid for a month a week. That's going to be valid for the rest of your trading career. Totally, totally. It's so important. And it's funny that you said that because it costs you a lot of money to learn those lessons. And when people begin to trade, they pour it all in. They, well, I have $15,000. I have $30,000. I'm like, what would you start with $20,000? That's like not understanding a business like if you want to open a pizza place and you're going to open 70 locations. Like what would you like? Why don't you start with one? You understand the business cycle. You understand how the customers want the pizza. How it impacts the location that you have. Understand which is the best business model for it. And when you know it works, then you go and open another one. That's the same thing that is scaling and trading. Like there are many people who go all in at first and they spend probably tens of thousands of dollars just to learn the lessons that they would have learned if they started with a $500 account. Yes, exactly. No, 100%. I wanted to just ask one quick thing. I know that we just switched gears, but let's say I'm Eduardo. I wake up in the morning. I see a stock that kind of gaps up. I'm like, okay, I have my bigger picture idea from kind of the knowledge that I've acquired over the years. And now we're starting to trade and we're getting into kind of the execution part of it. Do you think you could quickly walk me through that? Just kind of like what you use? Like do you use the tape? Are you using like technical levels? Because I noticed that you do pretty heavily recycle on the way down. So I was just wondering if, you know, other people are kind of like wondering too, like what gives you the ability to kind of hit those pops, but also hit those pops in the right areas, right? And I think that's, you know, crucial too, because like when you're hitting those pops on the way down, you're not like slamming support, right? You know, you're kind of waiting and you're taking that liquidity. So do you have any like tips for other people? Is it tape? Is it technicals? Is it whatever? I think that would be really beneficial for, you know, people. Yeah, totally. I have a few patterns that I rely on. Like the patterns that I use are pretty the same thing over and over and over again. It's like a routine, but I do use areas of supply and areas of demand. And whenever I see and I see a lot of people that use a level, like a key level, like 315, I rather use like a whole area in order for that selling, for example, to get in. You know, if I want to shorten stock, I know that there are areas, there are key areas, and they probably have probably a 10% range or between 10 and 5 and 10% range, where I want to have that perfect entry in a way. I want to have that average really near my risk level. And my risk level would be a level on the chart. And that is a key level, a level on the chart where my thesis, which is backed up with a lot of historical performance of the stock, fundamentally how the stock behaves and all those things, whenever the price goes through that level, I'm wrong at my thesis. So if I'm wrong at my thesis, it means that I cannot be involved in that position anymore. So it's really easy for me to get rid of the position. But whenever I try to see that level on the area below it, if I'm shorting, for example, I try to get the most of the arrows that I can. And I play a lot with my sizing so that my average price would be really near my risk level. So I have a really good risk reward kind of trade. And that's why I recycle a lot on the building of my position. And whenever it starts going on my favor, I add to my position. But as when I add to my position, I get further from my risk, I do a trailing stop, and I try to take advantage of the trend. So that's how I pretty much could explain it. I know it's really hard to do with no charts on it, but that's pretty much my thought process of it. When you're tracking your patterns and doing your patterns and stuff like that, how often do market conditions come into play with stuff like that? Do they not come into play at all? Are you like, okay, I've tracked my pattern, I understand what's going on, I understand my own kind of what you've done and what you've tracked? Or are you like, okay, we are in a very hot market where things are going a lot further than they should. Is that something that you take into account? It depends on what market's conditions means to you because I know a lot of people believe that market conditions are how the spy is moving, for example. I don't use any of that. As I trade small caps, I try to see and try to feel how the market environment on small caps is. For example, if we had, on January, we had a lot of runners of AI sector, every single stock that is from the AI sector, I would treat it differently that I would trade a biotech, for example. I do take into consideration the hot sectors, I take into consideration how the stocks are moving in our general basis. But what I think is the most important thing is that I let my PNL to dictate whether I am in sync with the market or not. I trade every day, and that's something that might be one of the things that I could optimize. But as I trade every day, I get to see in my PNL whether I'm in sync with that market, whether I'm, okay, if I'm more short-buy as in this market, is this working? Like, if these setups are working with all this market environment that there is, I have noticed, for example, that there are a lot of randomness lately on the stocks that are crowded. So it's really difficult, like, for example, today, what FWB I did, like that thing. Bro, it went straight to the 190s, and then straight to the 270s, and then straight to the 190s. Like, it was so focused on randomness, and I know one right does those kind of things. Like, I know, but it's so difficult to take advantage of those kind of moves that you only have to, you know, observe those kind of moves, try to learn from them. And as I got screwed on that move, I learned from it. And that loss will show in my PNL that I am not in sync with all these moves. So it's really good for me to understand that market condition with how I'm trading the market and try to see if I'm in sync. If I'm in sync, I'll go, like, really hard. If I'm not, I tend to, you know, lower my size a little bit and try to adapt to the market that I am. It's really important. That thing is really important because I see that a lot of people, when they're losing money, they push the gas in order to recover what they lost. And whenever they are winning money, they get a little bit, you know, conservative, and they try not to lose the money that they earned. And it's the other way around. Like, if you're winning, if you're in sync with the market, you got to push the gas because you probably are really, you're right on everything that it's going on. And a loss will show you that you're not. But whenever you're not, whenever you probably have like a streak of losses or a really huge loss, that is a sign where you should definitely lower your size and adapt to the market conditions as they are. How do you kind of go about, like, you know, like manipulation like this, for instance, by the way, where that's like very difficult, you know, like we had another ticker, it was like FCRX or something like that, where things were just moving up and down randomly so much. And I, for a lot of people, like a popular strategy has been just to go short of three, and then, you know, hold all day, which technically that did work here, you know, but just in the middle, like these random manipulations, these battles, these stuff like that, how do you kind of go about, you know, backtesting? Because when you get moves like this, they're all, like, they're going after people who are either short in this consolidation or who are fading, they're trying to stop people out. Obviously, here it looks to me on the short side, get some chaser lungs involved, whatever. But like, how do you kind of deal with this at the end of the day to kind of like make sure that you're just, I guess, like your trading business, you know, stays on the right track, right? This is like, you know, if you're a lemonade stand and they just, you know, there's a storm coming through or something like that and it screws up your business for a little bit, you know? Of course. For me, like, the trades that I do well, they don't do those kind of things, you know? Yeah. So I think those kind of moves are impossible to take advantage from. Like, I try to avoid them, avoid most of them. So that's why whenever I see a sales agent, which is very familiar on the filing and behind, you know, maybe an offering and all those things, I try to avoid them and try to not to put a lot of size. And usually it goes well. Like, usually avoiding them, it goes well. But there are times that I, you know, I'm reckless a little bit and maybe I'm probably trying to seize that opportunity of making those 20 cents and I end up losing 30 cents. And that's something that, as I'm a really discretionary trader, it will happen. Like, that's the downside of my system. But it's really important that you understand the downside of the things that you're doing. Because, yeah, I have downsides in my system, but I also have upsides. And whenever I contrast the upsides with the downsides, I think there's no perfect system. Like, you will have those trades or those moves that will eventually, you know, screw you. So how I deal with them, I just take the loss. And I just say, okay, market is my master. And these guys know a lot and are smarter than me. And that's it. Like, I don't try to seize every single opportunity there is. I just, I thought this was an opportunity for me. It screwed me over. And I learned that whenever I see those kind of moves, I've seen this before. I just didn't remember like how reckless they were with this move. So yeah, it's pretty much surrendering to the markets, I guess. And I think something that's also important is like the stock traded 90 million shares today. Okay. And trade 90 million shares, there's, there's the only way stock is able to trade like that is if there's outgoes and robots involved. So these robots are just completely out of control these days. They see an offering, they buy the offering, they dump the offering, they do this, they do that. It's like, it's all over the place because in my, my thought process, my thesis is that during the bear market, a lot of hedge funds were not able to make money. So what they did is they trained their algos to start trading these small cap stocks so that during any market condition, they can make money because it's a lot easier to move an FWBI than it is to move an apple, right? So I think that there's a lot of algorithmic participants, a lot of robotic participants these days, especially small cap stocks that are just screwing with everyone, right? Because if you think about it logically, if a stock has an offering, it's supposed to go down. But wait a second, there was enough volume to give it one more push to exit and then crash, right? It's, it's unbelievable if you really think about it because the algo was probably stuck long all day. And when the offering came, when the shorts slammed it, they said that's their opportunity to jam it one more time, let the algo exit the position for a win and then just stock collapsed, stock collapsed. It's crazy, man. I think it's like, you got to give props to them. It's unbelievable. And, and you know what? It's really important that many people try to avoid small caps because of all these things, but try to understand if you were doing the same thing that the algo did, you were making a lot of money. So what I'm trying to say with this is if you adapt to the market, if you understand what they are doing, if you understand what the manipulation is doing, if you understand what the retailing is doing, and if you understand what the insiders think in a, in a bigger picture kind of thing, you would have an edge and you would have an advantage in, in ceasing opportunities. So it's really important that we as traders adapt to the market condition that they are, whether it's a bull market and every single nuts as, as 2020 and 2021, whether you have to play really defensive in 2022 and whether you have to push the gas again in 2023 at the beginning with the AI sector. So let's adapt. That's it, right? It's so true, bro. It's so true. And I said that at the beginning of the year, one of my biggest regrets is during 2020, 2021, everyone made a lot of money going along. And here I am, bro, I made a lot of money going short, but had I just focused more on the long side of things, I could have made double, triple quadruple. So now that the bear market is over, that we're starting a new bull market, that things are starting to lift up. I am trying to, at least on day one, try to go long these stocks, right? I'm trying to go long. I made a really great trade on Carvana last week, which was great to kind of get the gears flowing. But now I want to kind of focus more that day one, hot stock go long until we see some sort of confirmation death candle, whatever, maybe flip sides. But until then, I was even talking to my girl about this, she's like, you tell me that 90% of these stocks on day one go up. So why are you trying to short them on day one? And almost, it's almost as simple as like that. It's like, wait, 90% of the time they're going to go up. Okay, 10% of the time when they break was short, which is fine. But if 90% of the time they're going to go up and you lose money on it, that's fine. Just keep doing it. It's going to keep repeating, right? It's that simple sometimes. Of course. And it's really interesting what you said that it costs you money. It you leave a lot of you left a lot of money on the table when you were not taking advantage of the longs. So it's interesting that every single time we have that kind of realization with that kind of, you know, big idea is when it costs us money. So that's why I think it's really important that we understand how important it is losses for us. Like if we have the proper meaning to losses, if you, if you think that losses are because you're a bad trader, you're going to have a lot of issues in becoming a profitable trader. But if you think that and if the meaning that you give to losses is that, you know, taking advantage of it in another way to, to grab that opportunity in another way, whether it's long and shorting, whether you have to avoid certain stocks that do, you know, some kind of moves, all those things are really important for you to understand how you can optimize your system. And that leads to, you know, losing money. It all goes back to where we started with, bro. It goes back to knowing what you're good at, knowing what you're bad at, and whatever you're bad at getting rid of it, whatever you're good at improving on it. And if you see someone else doing something that you could also learn, I mean, it helps. I mean, we had Jack Kellogg on here a couple of weeks ago, and he's great at going long. Now he's killing it, going short. He's killing it. He's talking the other day. Oh my God, I saw it. That's what it's all about. And it's all about learning not only through our mistakes, but learning from other people. And that's kind of why we do this, right? The reason why we're having this show, the reason why we're doing this podcast is, yeah, to learn together, bro. There's certain things that you're really good at, there's certain things that I'm good at, there's certain things that Harry's really good at. But together, if we could kind of mold those ideas, that turns into an almost ironclad trading process. Totally, totally agree. And that's why I love that this community that we're building, like all of us, like every single trader that is willing to share their experience, and whether it's in Twitter or YouTube or anything, it's so good. Like when I started, I didn't have this amazing community, amazing free information for me to approach trading in the best way possible. I was really an idiot when I started approaching this. And these kind of shows, these kind of information makes people do it the right way, do it the proper way. Yeah, 100%. And one thing that you mentioned like way earlier in the podcast was like, how you kind of like saw Bow at that like rolling both meetup, right? And Bow kind of flew out and you've been like to a lot of meetups, very active in the community that way. So do you want to kind of talk about how that has made you a better trader, how you've been able to kind of help other people, the impact that those meetups kind of have and stuff like that? Bro, trading is a really lonely profession. Trading is a really like, this is my thing over here. And I don't have anyone else here. Every time I have the opportunity to meet someone to understand how their thinking process is, I try to take it. And with these meetups, we can do like multiple kind of thing, you know, and I think it's really important that you, if you're out there, if you're trying to learn trading and what I would really recommend is that you have this feeling of person to person kind of thing kind of vibe, because it transmits something different than we're trying to transmit here via online, right? I met Bao there. Obviously, I spoke to him online for years, but I met him there. And it is so different. Like the way he obviously nowadays, I'm not interested in technicals or anything like that. I'm interested in how people think, how the mindset of this person, how is the relationship with money, how they can approach to, you know, to take advantage the most of some situation. And those kind of things, you can feel it better when you're in person. So in person events for me is my favorite thing to do. Obviously, they take a lot of work from us. Obviously, it's really hard thing, like LA, bootcamp was exhausting. But what it gave me is, you know, knowing each one of the people and what I told you, what I told you before, people make the same mistakes. Like we as traders, whenever we have a book of trading, a trading book, and we start reading it, it's like they're talking to us. It's really weird. But it's like they're talking to us because we have so like it's human behavior. And we have such identical patterns that whenever I see people that are struggling with trading and they, you know, try to take feedback from us, and I see the same mistakes over and over and over again. And if you see the people that are successful, and they obviously, they do the same patterns, look at the people that are struggling and they do the same patterns, they make the same mistakes. So it's really, really like seeing that in a live event, it's really, really cool and allows me to transmit better the message that I want to transmit, you know, in a way. I saw you recently at the 75 Heart, how was that, dude? Bro, that's probably, probably the best thing that I've ever done for myself. So for those that don't know, could you explain what that is? Yeah, 75 Heart is a challenge, it's a mental toughness challenge, Andy Fischella was the one that created it. And basically you have to do two workouts a day, one of them have to have to do outdoor, one of them have to do whatever outdoor or indoor. You got to drink one gallon of water, you got to, you're not able to drink. You have to have a diet, a specific diet, and that diet doesn't allow you to have cheat meals. You have to read 10 pages of a book, and you have to take a picture of yourself, like for the progress and stuff. And I said the picture thing, because I know a lot of people that have failed the challenge just because they didn't take the picture. And that kind of habits that you're building, it resonates a lot with the discipline that you want to translate into your trading. So I did it the first time, and I completed, it was amazing for me. But this time, it had something different, because I can see it in my trading. Like I really, really saw all that discipline that I was building translated into my trading. And I think that's probably the most important trait that you will have as a trader, like discipline. Whenever you say, hey, this is my stop, hey, this is going to be my reward, hey, this is going to be my entry, and you don't anticipate, you don't have FOMO, you don't have all this emotional kind of feelings where they lead you to maybe perform in a poor way, you will wipe all that out, with that discipline. So this challenge, what gave me is that discipline, is that making things done, being really productive, like the energy that you have when you don't drink. Like I was a pretty heavy drinker, and I love to party and I love to have fun. But when I introduced myself into these kind of hacks, I saw something different. And there's no way I'm going back. Obviously, I finished the 75 in LA with my friends and stuff. And obviously, I had a few drinks, but now it's different because you know that you will feel worse the next day, and you're not going to be able to be as productive as you were. And if you're not doing your habits or doing your workouts, you're not going to have the energy to wake up and be as alert as I am in 75 with the markets. And all those things really, really translate into a better performance. And that's what I look for every single time. I try to transmit this message where I think that if you really want to become a better trader, you have to become a better person. And that's something that yeah, there are a lot of people that yeah, technicals out what matters and blah and I know like for sure, technicals are what matters. But if you don't have that mindset, if you don't have the discipline to execute whatever your technical says, you can have the technicals you want, and you won't be able to perform in an elite level. So yeah, bro, like I really recommend that. It's kind of crazy at first, like people will look at you really different. But I think it's the way to go if you want to, you know, be better at your life and try to build up a little bit of mental toughness and a little bit of discipline and in our crazy lives that, you know, I'm sure that we're not 100% discipline all the time. So it was a really cool thing to do. I wanted to ask just kind of like some last couple questions. Is there anything that you have on your travel bucket list? Travel? Yeah, like where do you want to go, bro? Yeah, well, I have a few things like obviously I want to go to Europe and stuff and have fun. But bro, I haven't gone to my country for like seven years. And there's a place there that it's called Los Roques, which is an amazing beach. Like you wouldn't believe how beautiful it is. So I want to go there. I want to go there. I want to go to Canaima. I don't know if you guys have seen the up movie, a cartoon movie. It's a picture. And you know, there's a huge fall. That's Venezuela. That's Canaima. That's the Santo Angel. So I would really, really love to go back to my country and to experience all this incredible nature of things. And yeah, that that because it will be really lame for me to say, yeah, you're, you know, it's, but that thing, like if you go there, I'm going to show you like pictures and videos and stuff of those things. You're not going to believe where you are. Like it's amazing. And I really, really looking forward to do it, you know, eventually. Yeah. Yeah. This is usually Alex's question. But like, is there anything you do with money outside of the market? Yeah, you made it. So let's say you made a million dollars. The government's going to take another 30% of it. With the rest of your money, how are you managing it? And, you know, what are you doing to hopefully use it to grow some long term wealth? Well, I love to, I love the concept of diversification. I love the concept of having a few things, a few buckets, which will give you different revenue streams. Like I really like that idea. Right now I'm focusing on one revenue stream, which is my coaching business, which is, you know, for the Spanish speaking communities and stuff. And I really want to give a lot of strength to that because I think there are a lot of, you know, you have to educate people a lot and even Latin American and Spain on the trading, like doing trading as you should do it. Because there are a lot of people that are dragging, you know, in a really, how do you say that? Like, you know, deceiving kind of way. And I think that we have to, you know, the people that are real in this community, we have to, you know, do something about it. And I really want to, you know, to give a little bit of strength to that project. And I think I'm not capped in my trading or in my coaching business. So what I would do is give it a lot of strength on that and try to diversify in different things. Like maybe, you know, try to purchase some bonds, try to purchase some stocks, try to purchase this. Maybe I'm not a fan of real estate a lot, but maybe just for the sake of diversification I would. And, you know, I think that's that concept is the one that resonates the most to me. Yeah, I think just kind of like last question to wrap it up. Do you have any goals for the future other than like things that you haven't mentioned yet? Like, you know, growing your business or like doing stuff like that? Yeah, about goals. Like obviously I have like personal goals and traveling goals and a lot of goals. But I really want to enjoy the process. Like I really want to, like my goal would be to enjoy every single minute that I'm, you know, looking at these screens, enjoy every single time that I'm trying to help people, enjoy every single time that I'm doing those events. And I think that's the key. You know, I think the key is to really fell in love with the process, really fell in love with whatever you're doing. And, you know, that vision of the goal, like have certainty that it will come if you do that process in a really caring way. Do you have any questions for us? I would love, of course, I would love to ask you, like, for example, how do you scale into a trade? Because that's my, probably my struggle. I'm a really good trader with $10,000, $15,000. But whenever I go, you know, in a threshold where I don't feel comfortable and my conviction is strong enough, but it's too much of what I'm risking, for example. Like, I don't know how to properly manage it. So I think it's really important to understand how a professional trader scales into, into their system, not into a trade, but into their system. How do you do that? That's a really good question. So I think the way it starts, bro, is it starts with the fact that the size I've been talked about is determined by the setup. Like every single day, bro, like I'm not trying to size up or add to a winner on every single stock. I'm trying to only add to a winner and scale it on a stock a lot larger. If number one, it makes sense to me if the probability is there. So imagine if the stock did not have the probability, right? So I'll give you an example, like the FWBI example from today. Stock, if you look at the filings is a very, very dirty company, very, very dirty company. They have warrants, they have ATF, they have shelf, they have everything. So this tells me, and Harry, also if you pull the daily chart real quick. So if you see on the daily chart, you can see that it's just pretty much unwanted. It just is a very, very weak stock. Pretty much, you know, it just keeps getting sold off, sold off, sold off. It's not a really good genuine company. So what I see here is I see that the company itself sells off over and over again. I see that it is a very, very toxic company. And I see that the stock has expensive borrowers, which means that there's not going to be that many participants on the short side because they don't want to pay the borrow. So this to me is an example of something that I want to scale out a little bit larger on. I'm not going to use the same size as the Bed Bath and Beyond, but this is going to be a little bit more than a regular season game. So if you go back to the intraday chart, Harry, and draw a line at 260 from pre-market, what I was looking at was I was looking at that 260 line right there. I was looking at resistance, acting as support, acting as support. So my thought process on this is, all right, the stock fits my criteria that I want to use a little bit more aggressive size. I want to be a little bit more aggressive. I don't want to be Bed Bath and Beyond aggressive. I just want to be a little bit more aggressive. What this tells me from just looking at this chart is 260 was pre-market resistance that it broke through. It broke through it pre-market. When it retested it around 9.30 AM, 9.00, whatever it is, when it retested around 260, that told me, all right, 260 is a really key area. And then the market opened up. And if you see there, around 267, 268, they were trying to support it. They're trying to support it. They're trying to support it. My thought process was, if this thing just breaks 260, everyone's going to be underwater. And if everyone's going to be underwater, that's what I didn't see. So on something like this, I wait for that key area to be identified, which is 260, and I want to see it break under 260. And that's where I'm going to kind of scale a little bit more. For me, I don't want to scale it aggressively on the front side while it's above the wave because if I'm wrong, it's just going to keep shooting up. I'd rather let the stock break down and then hit it on that key level. So that's exactly what I did. I shorted around that 260 mark. I took some starters a little bit ahead of time. And then actually, let me see if I could pull up my chart of this in a little second. So if you see here, you can see that I start to short around the pre-market resistance around 290. And then as we had that death candle, I started to add a little bit more. And every single time we failed, I added. And then ultimately, if you see towards a 260 line breaking right under the U on the minute, you can see my final entry there. So here, if you could, yep, exactly right there. So that was my final entry right there. So I pretty much started it into resistance. Every time I saw some sort of death candle, I added until ultimately it broke that 260 support, shorted, and I covered on the dip, covered on the dip. And that was it. So for me, or something like this, it fit my idea that I could be a little bit more aggressive, but I waited until that key level of 260 breaking to really put on that size. So first things first, you have to identify if the stock deserves that size. And if the stock doesn't deserve that size, what is that signal? What is that confirmation? What is that area of interest that needs to break to be able to say, you know what, I'm okay screwing up my average, because I know that the odds are in my favor for this setup. So what my average is going to be screwed up by 1020 cents. Okay, if I'm wrong, I'm wrong. I got to eat it. I got to eat it. But if I'm right, screwed up my average by 1020 cents, it's not going to matter because it makes 50 cents. So first it depends on the setup. It depends on the setup. If the setup does not require size, you can't size it. So don't feel like you have to scale into every single trade. Don't feel that every trade require, requires size. Size is reserved for the highest probability setups. And to me, this was a high probability setup because of all the dilution and all the other stuff that goes into it. And to confirm that was 260 break. Nice. And my last question for you guys would be, what's your relationship with money? In what way? Roll the way. All right. Money, you need money. You need money to survive. You need money to live. You need money to be able to pay for things. You need money for everything. The question I don't think is what's your relationship with money? It's that why do you want money? Why do you want it? Because after a certain point, you're going to realize, well, then you could buy whatever the fuck you want. You don't need to be making $10 million a year to be rich. Even making $200,000, $400,000 a year is rich, but just fuck. It's like, if you think about it logically, you could buy yourself a new car every year. You could take yourself out to dinner every year. You could go off for vacations a year. You could get yourself a really nice house. So after you make a certain amount of money, everything else is going to get boring. How many watches do you need? How many cars do you need? How many this you need? How many that you need? So for me, the question is not the relationship with money. It's that why, at least for me, is why is it never enough? Why is it never enough? And I think the question for me is because why is it never enough? It's because I'm so competitive, bro. I'm so competitive that I just want to keep making more, not to be able to spend it on things because, thank God, I'm doing good. It's just because I want to see how good of a trader I can be, bro. I definitely can't be the best out there. I can't be the best, but to be the best trader, you'll make a billion dollars. If I'm just a solid trader, I'll make tens of millions of dollars. So for me, it's just I want to push myself to see how far I can go and money is the way to judge yourself based on how well you do. So for example, if I make $300,000 on a bed, bath and beyond, that's pretty fucking good. Until I see someone else make it a million dollars, then I'm like, wait a second. If you can make a billion dollars doing that, so can I. So that competitive nature of how much money you could make is what kind of pushes me to keep getting better. But after a certain point, if you're just trading to make money, I mean, as we all start, you'll plateau. You'll plateau because eventually you're going to make enough money that I'm like, you don't really care anymore. You don't want to risk anymore. You don't want to do any anymore. But if you want to get to that next level of making 5, 10, 15 million, it's not a matter of I want to make more money. It's a matter of how good can I really get at this, you know, totally love that. Yeah. Well, all right. I think that one wraps it up. So thank you. Thank you, Alex. Thanks, everyone. And yeah, we'll see everyone for the next one. Thank you.