 Hey traders, this is T Bradley 90 from the my investing club chat I'm one of the top mentors and moderators in chat as a special gift to our viewers on YouTube We have created a free two-hour course to help teach you how to start a consistently profitable trading business and identify high-paying setups in just 30 days There will be limited seating every week so register for the course and reserve your spot now Using the link in the description as a special bonus for everyone that watches the entire video We will give you the link to a free 10-hour additional mini course that has never been released to the public Register now before all slots completely fill up Everyone knows our guest speaker for today. I'm really excited to have him on. It's been like two long time coming I think the first time Andy does ever come here, too. That's gonna be very fun So today, I want to talk about recycling and channel trading guys because channel trading is Is one of the most stress-free kinds of trading and recycling is what I what I'm going to get into later It's a very good defensive trading, but it can also be almost like an offensive Haptic when it comes to trading to like recycling is a way of adding to a winner and I kind of briefly touched upon this in the last couple webinars and so I'm gonna get more into that later But for today, I'm gonna go over the key traders That that happened throughout the week and like kind of my views on them every week I go over a week a weekly market sentiment where I think we were where I think we're going where I think we're at right now And what I think, you know, it's gonna cost fear whether I'm being more aggressive or defensive on stocks I'm going to skip the the trader topics today because we have a guest speaker And I want to I want to have more time to chat about but so we're gonna go straight after the market set that we're gonna go straight into Recycling and channel trading. That's how we get to open up Val's mind a little bit. Yes TV. This was a trade a few days ago I think I think this was Monday. This was basically a short into resistance trade You basically just using free market highs as as the short, right? But the key to this trade is that you have to understand that not every time they're gonna get to the line guys Right, you have your lines and you want to be patient for them But oftentimes they stop short and that's that's why you can sometimes build into position and like like I said last night In last webinar in the adding for winter webinar What do you want to avoid is getting in full size into the trade before the trade starts to work because that's That's the number one reason why new traders are having a hard time with having smaller losers and bigger winners, right? This is probably everybody's big problem is that like whenever they win? It's because they started scaling into the trade and it started to work right away And they covered that but they whenever they were whenever they lose It's because they added all the way until you know They filled up their size and then they have to cut the top as the loss But that's max pain every trade they always cut is gonna be max pain And that's how you always end up with small winners and and big losers, right? So the way I started this trade was partial on the front side and you can kind of see it here Like I have three arrows on this side and three arrows on the other side The three arrows on the other side is the ad once once once we stuff hard at three market highs Once I saw that stuff hard I'm able to add to my position once I what I call like my wrist soulmate, right? Once I found the wrist that I was totally in love with or I knew if it ever got back over there I'm definitely cutting my trade and I wouldn't even regret cutting the trade That's when I feel comfortable adding to and getting to full size on position, right? So naturally I had a I had a cover for half like right at VWAP, right? You know front side short front side cover, right? There's nothing there's nothing in my mind that said that this put it like consolidate and trap down here and go higher And because that's the possibility That's why I always keep this front side short front side cover rule So I cut I immediately cover half right away and my other my other half I say for the low a day targets that you know at $3 support and low a day support You know I kind of nixed the two up because I'm not sure which one's gonna be the bottom So this is a little type of this isn't I see this is my OV and this is try that kind of fuck Sorry, I kind of f'd up on right, but I f'd up on but I didn't like I came out of this with like Like scratch losses, you know, I shorted it at the beginning at the 14 line I quickly covered that shit because it like it clearly like I had to fight for a cover at 13 6 at 13 like 40. So when I was fighting for that cover too hard I just cut it right away once I got once it got back over to you Then I just tried a lower high short over here And I also quickly covered and this is probably a little I might have been a little too afraid of the trade, but I Didn't want to fight it and it and it looked pretty strong So I just quit I said I'd rather not fight that and try again It looked like it wanted higher eventually did come up higher I tried a third short a 15 line short that one works pretty well, and this is a little slip here But I plan on covering some at 14 some at 13 It held and I just you know like I didn't like to hold and my ad was a too much of a slip So I covered it all, you know, I made some back here I tried to reshort it again off this resistance and it was just it got into grindy mode So I quickly covered that one right all of these are quick cuts. I don't ever want to fight a grinding stock I've actually flipped long because like I don't want to fight this friend anymore So I put on a feeler here and I added risk once we held this dip because when I put on a feeler here Like this can tank 15 and I don't want to be in trouble, right? So this is the same process as the last day HEPA was a short today, which I didn't get like the most out of this trade, but I got a piece Right. So I initially tried to short this for a parabolic and foul hit this one really good So I want you to kind of go over your thought process on HEPA today, but I shorted this parabolic and I felt like it was gonna push again And I really wasn't liking the fold up here like when I short a parabolic on the front side I really wanted to see it pull pretty immediately when it didn't I thought we'd get another push up the high a day And I had orders waiting up here at 50s low 50s Yeah, I mean I was very shocked at a freaking tank 50 cents like in a second, right? That's not something that usually happened with that much volume, right? So, um, you got it, right? Yeah, I nailed that one. I got lucky on that but so what I noticed is this guy So let me let me let me pull up a chart. Let me let me kind of remember what I did Yeah, do you want to put post in here and I'll open it? I will I'm opening up a big charts to see Where the lines were I'm trying to I'm trying to like we re-engineer this To see where I came up with that line Oh a daily chart. Yeah, I'm looking at a big chart to see uh Yeah, it's tough because There is really nothing on the chart that says to 450 except a couple of things so Every half dollar Could be considered kind of like a mental resistance every whole dollar is a definitely a mental resistance So when it when it touches that kind of stuff, you know, I kind of look at it, but the what I saw Let me see. Let me pull them the issue Put that trade So what I saw was this is that there was an example of tape reading. I hate using that word tape reading because You have to be very careful when you when you think you can read the tape because it's like Chinese, dude It's like if you miss read the tape you're gonna get screwed So the way I usually read the tape is I you know I watch with my lines and then when it comes to that area of interest and I'll start looking at the level too, right? And then the way I look at it to see if you know, how much volume is coming in and to see if it's actually Like moving up or if someone selling there and so the 450 line if you take a look at it kept every time it kind of Every time the volume surge came on it went down It looked like someone was selling over and over at that line And that that's how I was able to to to kind of like to size in at that point And so I started to scale out, but I didn't think it was dropped down too. So I saved like a quarter for as that covered down to like 408 from 450 so But the key to that trade was basically waiting for that parabolic move to go up again. I'm sorry It's a good long spot. I looked along there too. Yeah. Yeah, exactly Exactly so SSR is a big spot right there. It starts to wash at SSR. It sort of gets along Alright, so that market that we had some good rumors most of them changed this week I think we saw a little slow down from last week There were a couple stocks that kept it going KRTX kind of kept momentum going NYOB kept market alive, right? Large caps are mostly green and that's get the spies doing really well So the spy doing really really well going into the busy, you know, the most fun busiest time like November December January This is like ideal time for small caps like you want the spy to be roaring When at all-time highs at the you know, the pinnacle of the market here at the end of the year So this is I mean we're setting we're all you for a slam dunk next week I think like next week in the next couple weeks should hopefully get really crazy again get a lot of Multiple plays every day. That's what I'm really hoping for We have to be careful every every time every year around the Thanksgiving time. We call it a turkey play So things go crazy. I think the turkey play started earlier this year already Right, you have these stocks going $100. So so you have to be very mindful. So So next week guys be careful if you're shorting Uh things go fucking crazy man during the turkey week Right. Yeah, exactly. And I that's what I said crazy again around Thanksgiving like it's gonna be It's gonna be big All right. Yeah, um, I think we're kind of slowing down here But yeah, I think the buy now ask questions later markets coming up Right quick next week where it's, you know, short has got to be careful buyers You know, it might be a time to be a bit more aggressive Um in that week and so now let's get straight into recycling Now pal it's the king of recycling. So like feel free to interrupt at any time, buddy Talk about I mean this this is the the easiest way to short guys Um Oh, wow, this is perfect for recycling. Yeah So The way I do is remember I use simple resistance and support And so the if you take a look at this draw the line across man, it's it's all the same area That's doing the resistance And so when these stocks tank down so fast, I put my The moment I covered you I put it right back on I put it right back onto the resistance line just in case it goes back up and so So let me see this is A lot of times there there's very obvious channel trading with you'll talk about it later But but in this case all all I did was I just put put it on on all the resistance lines As you notice and I covered it out And to be honest when I trade I I I should have the v-wap on but in my real cake It doesn't have the v-wap. So I'm actually not even looking at the v-wap, but it turns out the covers are right at the v-wap line You see how you see how weird it is. It's like the fact that You can determine what v-wap is That is already on the chart without even drawing the v-wap line it's because Let me see. So these covers that you see here. I didn't even know that that was the v-wap I should be looking though what the v-wap is, but um But but my point being is like, okay the the the lines the charts show you everything Okay, and so You don't need indicators in my opinion It's nice to have some the the indication I use is just the v-wap stuff but But if you notice it's like if you just Read the chart The information is there guys And it's basically you have to have trust in the lines. You have to have trust in the resistance lines and and if you notice dude, it's it's the same spot that I'm shorting and then Let me see what time is it here 10 30. You see the zombie rule 10 30 I covered I'm done and then Boom it spikes up from the v-wap 13 70 to 14 60 dude If if and so if I didn't stop at the at the zombie time, I'm fucked What's that too bucket So the zombie rule is very important man, I mean it saves me a lot I mean it's dude Before I figured it out it was like dude I was like I couldn't understand why I kept on getting trapped and so It's kind of like I looked at the times and I was like, dude This is a fucking pattern that keeps happening all the time and so The reason why once again is the volume slows down at that time it shrinks down And if you take a look at if you take a look at the range, okay I look at range a lot to determine whether or not I should enter a trade So in the morning, you notice the range is huge for 14 30. It's like a dollar range, right? At 9 30 it's a dollar range You take a look right before 10 30 the range shrunk down to 20 cents You see that and then followed by boom one dollar spike up So the when the range collapses And it it it it it narrows You gotta be fucking careful something's going on. It's like it's like a spring that's coiled up ready to fucking, you know Let's bring out, right? Yeah, when it feels like just trying to squeeze rocks squeeze water from a rock, it's time to walk Correct and this happens to coincide exactly with 10 30 the zombie rule Yep Hey traders, this is tosh I go by t bradley 90 in the my investing club chat Just wanted to reach out and say if you have any questions about m i c joining m i c Maybe you're a member already you have three ways to contact myself personally and through m i c you can hit our social media You can hit me through pms and chat or you can contact us through my email at tosh at my investing club dot com That's tosh at my investing club dot com I will get back to you in a timely manner and i'm saying this because i'm here to help and I don't want anybody to Be afraid to reach out and ask any question that they have we are here for you guys. All right. See you guys