 One of the most common questions I get asked is, you know, how do I start day trading? So what me and my mentor about it for our viewers on YouTube is create a free mentorship course that reveals our 12 secrets that every single brand new day trader should know before they get started. But please take note that there is limited seating every single week, so please reserve your spot at myinvestingclub.co, link is in the description. All right, enjoy the video, guys. What's up, everyone? It's Tom Diesel here. Hope you guys had a great weekend today. We just had a pretty solid weekend mentoring session. And as I've, you know, went over to the videos in the library and there's one topic that I've noticed that, you know, has not been talked a lot. You know, we had only one video on that, so I thought it could be a good idea to, you know, to kind of explain it a little bit in detail. So today's topic is gonna be about channel trading. Channel trading. You see the lines I'm drawing, okay? So let's say you found a channel you're gonna scout into this, okay? And let's say, you're gonna, you know, probably miss this one since, you know, it's the one that's gonna define the channel, right? So once you found that, okay? So let's say you're gonna along here, this is one, you know, one trade, along another one here, second trade. I mean, you know, you can easily scout that twice, but I'm just saying, you know, from 1.8 to 1.87, right? But if you, let's say, you scale from 1.9 here all the way to two, so at least you could get, you know, like, you know, this one, one trade, you know, scout here, second trade, third trade, fourth trade, and you know, probably this one. Yeah, it's like, you know, four times at least. You see how powerful it is? But keep in mind that you have to be really disciplined when the channel is broken, okay? The moment the channel is broken, you have to stop out. There's no way, you know, there should be no argument, you know, after that, or like, you know, or just put the hard stops, or like tight stop, just above this channel here, right here. And you know, once one you let it kind of put the top here, you can see here's the support, if it breaks this, I'm gonna stop out, if it breaks this high, I'm gonna stop out, right? It's like at two, right? Because you're risking like three cents. If you, you know, scaling into that or shorting to that, you're risking like, you know, two or three cents, and you know, the risk reward you're gonna get at least like, I don't know, six cents, that's the minimum, right? You're risking three cents, make six cents, that two to one, you know, profit ratio. And I think that's pretty good, right? But you just have, like I said, you just have to be really disciplined with your risk management, or it's like you have to pre-define your risk, because usually this is the time when the algo is taking over, and a lot of time it could really squeeze you, right? But the point I'm trying to make here is that, this is like, let's say you made money in the first hour already, and you wanna stock around, and you wanna play, you know, a little bit, say, you know, go with small size with hard stops. And you know, that's what I've been discussing in my videos, is that a lot of times I'm up, you know, on the day, and one of my rules is that I don't wanna give back 30% of my winning profits on that day, okay? So let's say I'm up like a thousand bucks, I don't wanna give back more than 300 bucks back. The moment I reach that number, the moment I'm down to like, you know, 700 bucks, I'm calling it a day, right? I can use that profit, you know, to do whatever I want, you know, with, you know, some extra strategy during the low, because during the low here, I can use really small size, but I can, you know, scope it more, like, you know, several times, that's pretty good, right? I'm just using that extra 300 bucks, just in case something goes wrong, I'm gonna lose that 300 bucks, that's fine. But if things going my way, I couldn't, you know, make it, you know, more than that thousand bucks, maybe like 2,000 or 3,000, you know, just something like that. But as I said, you know, it doesn't matter what you trade, it doesn't matter what your strategy is, you have to respect risk management, right? And this is risk management, it's really all come down to it. And this is MDGS, I'm gonna have here some another example here. Hey guys, my name is Tosh Bradley, I'm one of the head mentors of my investing club. If you have any questions about getting started in trading, getting started in MIC, MIC in general, text me at 213-458-5997, this is not a robot, it is me directly on the other end of my business line, and we'll get you in the club. We also have special promotions going on that I can get to you depending on your trading needs. Hit me up, back to the video. Like, yeah, look at this one. Okay, moving to premarket, I mean, you can see here, you can clearly see the range here, right? Like the channel is right one here, and one here, I mean, you can scout that around, but in the premarket, it's gonna be a little bit hard, but let's wait, let's say after 1030, okay? This is a perfect example. Now I can see here is the resistance I'm seeing, and still kind of dropped to this, so this is support I'm seeing. So I see this, let's say I will probably ignore this trade, but I will trade this one, right? Because I kind of found the channel from this one to this one here, so I'm gonna short here resistance, and let's say here support, but like 1550 to like, oh man, it's like almost a dollar. That's pretty good risk reward. I mean, if you short here, 1550, let's say you raise 16s, right? 1550 cents to make a dollar, that's pretty decent, right? But let's say I wanna get into this trade because I don't know what's gonna happen to this one, right? I've seen putting a range here, support and resistance. Let's say I'm gonna show into this, and let's say I cover this, okay? One trade, I got it right, a dollar, okay? So in like this one, I have no, I have like, let's say I'm just gonna cover this part. I had no idea what's gonna do that, you know, squeeze like that, okay? So all I know is the details form the previous, or like, you know, form, like look on the left to kind of predict what's gonna do in right here. So let's say I got this one trade, and then I wanna, you know, so scalp it based on my strategy, I wanna scalp it, you know, multiple times until proven otherwise, right? So in this case, I got this one, and I tried to show it back here again, but then ended up, you know, stopping me out, right? That's fine. You know, I lost like 50 bucks here, but I already made a dollar here, right? But if right, I could make another buck soon, you know, here, I could be two. But imagine if you didn't stop out. Imagine if you didn't follow your plan and you didn't stop out, right? Keep stubborn and keep adding. This is what you get, okay? And this is really a dangerous kind of situations when you don't know what you're doing, and, you know, it doesn't matter if that's after zombie or not. You know, if you're trading after zombie, ask yourself what is your edge, right? Why are you entering this trade? Because of the channel trading, okay, I see this channel, I wanna trade this channel, right? The moment it breaks, I'm gonna stop out. And so try to stick to it, okay? Your brain is always gonna convince yourself something else. Your brain is always convincing yourself, you know, to do something more greedy, like, you know, you're gonna short here, and the next thing, you know, like pops a view app, okay, maybe it's the view app rejections, right? It did kind of, you know, reject here, and then you kids grabbing size here. And the next thing, you know, it's squeezing you all the way from 15 to 24, so. So try to respect that. Try to respect and have your own rule. And as you can see here, right? Here, the moment kind of put out another range here, let's say this one and this one. You see that? This two line. Okay, let's say you're not gonna trade the first two or three here, because you wanna kind of arrange all the channel to kind of develop, right? So let's say you're gonna trade four times. I mean, usually what I like to see is at least once, kind of, you know, twice, because it starts kind of rejecting to the same channel. That's mean, you know, that's more like confirmation to me that the channel has been set. So usually after this, I'm gonna trade on this one, cover here, short here, cover here, short here, cover here. Let's say I can get at least like, you know, three or four times, right? But keep in mind, this is the most important part about channel trading, is that the moment the channel is broken, you need to stop out, okay? Stop out, wait for it to put another channel in, like maybe, oh, like this channel. I mean, you can do that too. I mean, you see, like support, resistance, and you know, shorting in towards that, you know, resistance, cover here, shorting to resistance, cover down here. You know, that same thing. And shorting into this, rock this channel, stop out here, you risk like, I don't know how much, it's like 30, 40 cents right here. That's fine, right? But you know, since that you already made back, like, you know, three or four times. But the key thing here is that the moment channel is broken, you have to stop out, you have to get out, wait for the next channel to be, you know, setting in. So guys, yeah, so I hope you enjoy the video and let me know if you need any help regarding this topic and I'll be happy to help. All right guys, so I'll see you guys on the next one. Take care.