 by its trader. There's a bunch of red flags on stocks and when you see any one of these red flags on a stock, it means that you have to size down. So some of the red flags on a stock include low float, include day one, include SSR and include easy to borrow. If any stock has any of these four red flags, as is sure, you must size down. And if any of these stocks have more than one red flag at the same time, whether it be easy to borrow and SSR, it's probably a good idea to avoid that stock. So today on IC, I had a big red flag. It was easy to borrow. So what I told myself, what I told the members in the rooms, do not go over 30% size on this stock. So we have a rule in MIC that says if the stock is above VWAP, you cannot use more than 30% of your size. So for example, on IC, if your MAC size is a thousand shares, you might use more than three shares. So what I did on IC is I actually traded a couple of times. I kind of scouted a couple of times with my 30% size. I built up a little bit of a cushion. And then what ended up happening is, you know, I started over trading it. I started, you know, I didn't really oversize on it. I just gave the 30% but I over traded it and it lets me lose it. So what I did right today was keeping my size under control. What I did wrong today is overtrading the hot check. And you know, the thing about trading that people don't really understand or people are kind of asking questions about is make $100,000 on bed bath and beyond last week, but you lose only $1,000 this week on this stock. And it's the same thing that we mentioned over and over again. It's in trading. Your bet size, your betting amount should be correlated to how much of an edge you have on a stock. So on something like IC where it has a bunch of red flags, where it's an easier borrow stock, that doesn't have too much of an edge for me. So I'm not using more than 30% of my size, whereas something like bed bath and beyond, a first red day, I'm using a thousand times my normal size because there's more of an edge in my favor. So in trading, bet heavy when the edge is in your favor and reduce your bet size when there's no edge. So today, I'm actually really, I mean, I might be the only guy that's really happy with a red day today because I only lost $1,000 today. Yeah, exactly, man. 20, 10, 20% of what I make every single day. So so long as I keep my losses under control, so long as I don't oversize and over trade, losing a $10,000 doesn't matter today because tomorrow I'm going to make $5,000, $6,000, $7,000, $8,000, you know? Yeah, and I did it. So I did the same thing with Alex. I knew that this stock could be trouble. Usually what happens is, you know, they let me and Alex win and they began, that's how they trap, right? We were like, whoa, we win. So notice what I did here. So I did everything correctly. Even though you do things correctly, you may still lose and that's okay. Losing small manageable losses is a part of the game, right? So I'll show you what happened here. So all I did was I waited for the outer lines, but this is the beauty part. I knew zombie arrows coming guys, 10, 30. Yep. And I just stopped the fuck out. That's it. And then I reattacked at the $5,50 line, made some back. So but notice this guy. So make a plan. Doesn't matter what the plan is, right? You could be wrong or right with your plan. But if you stick with your plan, which concludes where to stop out. So I already knew ahead of time where it must, where I am stopping out. There's two couple conditions. Zombie hour, if the sucker is still strong as zombie hour, especially when it does the high date break during zombie hour, that's a huge sign that you must stop out. And that was around 14 something, man, like low 14. And they ran up in another $1.50 after that. So if we didn't do that, we would turn a small loss into a big loss. So I think we both did the right thing, Alex. Yeah. And you know, I just want to post the watches again, because it shows that today, what the process was saying. So this was our morning watches of the day. FWBI looking for a pop towards four, four, 24, 50 to scale in short. It literally hit those exact lines and tank. So that was really solid trade, but I see. So I see says this stock is easy to borrow and high volume pre-market. This means this is dangerous for a short. I will look for a quick trade, maybe 13, oh, that's supposed to be 1350, 13, 1350 and 14 lines to scale in 10% of a time, no more than 30% size with a pre-market high of the day stop. So the pre-market high of the day was about 1420. So if all failed, you would have still gotten out of 1420 and this thing hit 1560. So that's number one. The number one is if I just listen to the watch list, if I just avoid it, if I just did whatever, I would have been better off. But sizing helped me because if I was using size as if I was trading bed, bath and beyond first red day, this would have been a $50,000, $60,000 loss. But in reality, I only use a couple of thousand shares because I didn't think there was much of an edge and that's pretty much it. So today is a scratch day for me. Today is a red day for me. I'm not perfect. I don't win every single day, but you better be sure that when I do lose, I try to make it controlled and no more than the day's worth of work, which is what we preach in MIC. Yep, exactly, man. And once again, guys, take a look at this, man, the freakings at the zombie rule, zombie rule million times again, over and over, dude, 1030. Right here. 1030. Boom. I mean, we can't say anything more. If it's high of day, so if we were bear traders, Alice, we would go long. Yeah, you know, I thought about it, but the reality is that again, I'm trying to, I'm trying to stick to my niche and stick to what I'm good at. And, you know, I'm not really good at going long. I'm not really good at this. I agree with you. So that's the thing, man. A lot of these people switch biases back and forth. And so for me, I mean, I wrote, like you said, stick to your niche, stick to what you do well, because imagine, man, if we went long on that break and it was a failed breakout and it starts and it's stuffed down, we would, we would kill ourselves like mentally, like what the hell are we doing? And then what happens? It starts to, we start to doubt and second guess every other trade. Correct. So if we pick, so in the morning, usually this is what happens guys, you make a game plan, either you're long or you're short. I don't like the fact, I don't like it switching back and forth because in the morning, you know, we, we determine maybe this is a long meter short, but if you keep switching, you are going to confuse yourself. You're not going to be ready for the big score. So such as the first red day, I don't care if, I don't care if it goes up a dollar. I'm not looking for that little move. We're looking at, we're waiting for that giant big move. That's our edge. So a lot of times in the past, I try to scalp, you know, and then you missed the big move. And so if you, if you are hunting for back and forth, all you're doing is scalping little size. That's it. And so, you know, I've been stalking this cause I'm looking at, so this is what I wanted to do. So let me show you guys. The plan doesn't need to work, man. You know, the, you'd need to make a plan that has a stop. So my plan was basically, I thought that it would break the high day, do a fail, break out, and then just take down the view off to cover, but did not do that. It popped up. And so what I did was I covered. That's it. You know, if this has tanked down from a fair fail breakout, I look like a genius. You know, but, but, you know, but instead I lose, but that's, that's partly trading guys. You make a plan, you stick to the side and you, you commit their brand. And I'm not even happy. I mean, I'm not even sad guys. I don't give a damn. I'm actually green on the day. So this is just one of many stocks I traded today. So yeah. And worst case scenario guys, what ends up happening is because we have a max loss in place, our risk is capped. So God forbid, if something happens, if it goes crazy, crazy, crazy, we make sure that our risk is always capped with a max loss auto liquidation at the broker level. And, and you don't need to hit your auto liquidation to stop out. I didn't even hit my auto liquidation today, but I control my loss. Yeah. The max loss on liquidation is not a replacement for a stock. Remember that guys, don't use that to stop out. You know, the sooner you stop out, the less money you lose. You don't need some of these guys that you only stop out with hit max loss. You see that on Twitter. It's crazy. Either you see them having a max loss, but that's like, dude, when you know you're wrong, get the hell out. You can always re-enter. So this is exactly what I did here guys. So check this out. So I stopped out, waited at the top, made money on this, did another channel trade here, and then went back, back up, did the same thing. So I mean, dude, I don't need to hit max loss for me to stop trading. That's, that's the bottom line guys. You can always think of yourself. You can always go back on into the trade. Not all days in trading will be perfect. There is not a single trader that is real that doesn't lose in the market. So losing days are inevitable. I think last week, I lost on Monday, I lost $1,000 on Monday, and then Tuesday I made $145,000. Today, you know, I lost a thousand again, and I don't plan on sizing up tomorrow just because the hell of it, if there's an opportunity, I'm going to size up. If there's no opportunity, I'm not going to size up. So great. So if you're, if you're struggling with when to size in, you should not be sizing in every single day on every single death candle that you see. Okay. Cause that's the problem. The problem is you guys are sizing in on random stocks, wait for a stock that has an unusually large edge in your favor. And when those stocks appear that have unusually large edges in your favor, that's the opportunity to do unusually large size. But if not, I'm only using it like for example, today on ICI use maybe a thousand shares, thousand shares on bed, bath and beyond. I used a hundred thousand shares. Recognize the difference between the size on the opportunity, almost a hundred X more size I use on a better opportunity and almost 99% less size on a bad opportunity. So yeah, it's like, it's like poker man. You don't make the same bet every single time you have to look at the hand that you have. So same exact thing. Bed, bath and beyond was pocket aces. This other stock is like, you know, jack eight offsuit, right? And we just kind of splashed the pot, but you know, we understand the risk. That's the thing. You can gamble. You can do what the hell you want to do as long as you predefine your risk and you're okay with losing that amount of size. Like a thousand bucks is nothing, right? So if we're not splashing a hundred thousand shares, it's not pocket aces, but if you have pocket aces, guys, this is the thing I keep warning people. Pocket aces get cracked all the time. Even a 20 blackjack hand gets lost to a dealer's 21 draw. So at the end of the day, a hundred thousand shares that Alex goes in on an A plus pocket set up. He's willing to stop out. He's not going to be holding that for the river and dying. And that's the thing. I mean, we all, it doesn't matter if you have pocket aces, whatever. One outer in poker hits all the time. You hear your friends keep crying about that one outer, you know? And so you have to fold your hand and don't over become overly biased with your pocket aces, man. That's the bottom line. It comes down to risk management, guys. I don't care if you think it's a 99% set up. You don't want that one HKD, one was last week, ATXG. Shit, man. You hear crazy stories about firms blowing up. And that's the thing, guys. The thing that MIC is based on is risk management. And you know, when we first started, people were laughing at us talking about process. People were laughing at us talking about hard stops. Now every single trader on the street is mentioning process and hard stops. And what we want to emphasize is the power of that because, hey, I lost $1,000 today and I made 145 times that last week. So if I keep losing $1,000 from now until the end of the year, I'm still going to be green on the year. That's what risk management is. Make sure in trading that your losses are always less than your wins. The way that you could do that is bet sizing on opportunity and auto liquidation. Correct. And the auto liquidation guys, I mean, I'm telling you, man, the moment as we started doing that, my trading is much better. I'm less scared because before, when you're short in small caps, you're always freaking scared that you may lose your discipline. You may just go crazy and revenge rate. It happens all the time. Something snaps in your head and is very abnormal. And then all of a sudden you're like, holy fuck, I fucked up. You can make money like we talked about. You could be making money 10 years in a row, but is that one loss that you should be careful about? You don't want to wipe away your entire lifetime on one fuck up. Same thing with drinking and driving. That's the thing. When you're drinking, you're driving. How often does that happen? Hardly, but when it happens, your life is over. So you need to put the max thing you lost on. So whatever it may be guys, it's insurance. That's what it's guys. So you can either blow up and then believe us or you can just realize yourself that man, it will come. And I'm pretty sure it has come from a lot of you guys that you can have one fucking lapse of judgment and you're dead. It's happened to us about how many times have we said, if I just stick to my loss, I would have had so much more money. How many times have we said that to ourselves, bro? Well, that's how we found all these rules, bro. That's how we set up all these things. It took us money to learn it guys. So you know how many times I do IG live and come back and the stock is broken, but they reclaim it and hold it up and they teleport it. I'm just messing around with 2000 shares and then it happens all the time. Those are the type of things that you know, the max that you lost will help you. You go take a shit. You come back. Oh my God, what the hell happened? We go to war with China. Oh my God, 9-11. I was there training at 9-11, Alex. I was training at 9-11. Thank God he didn't have any positions open. The moment that the towers, I hit all that, dude, you're dead. You wiped out all the stocks tanked immediately. You can't even get out. He halted and everything, but if you had that max day lost, where the hell it may be, it may have triggered and got you out. So you never know, man. If you're taking this seriously as a business and not gambling, you do not want to gamble with your life. That's what it is. So think of your training account now as your life, your bloodline, because if you don't respect your life, you're going to kill yourself. So it's usually the same lessons that we come on here every single week, every single month, every single year, keep repeating the same fundamental lessons, guys, because these fundamentals in trading are what build you into a profitable six, seven, or eight-figure trader. It's the same fundamentals. So if you cannot get these fundamentals down, you cannot become a six-figure trader, a seven-figure trader, an eight-figure trader. So it may sound simple what we're saying. It may sound a little bit basic what we're saying, but the reason why we say this stuff, because this is the building blocks to get you to that level that you are looking for. And think about this, guys. Do this as an exercise for all you guys at home watching this. Add up all of your stupid ass losses that you should have stopped out. Just go back. You'd be fucking surprised how much you fucking lost. You could have made a million dollars, but you spent fucking, you lost, here you lost, there, just add it up. And then when you know, when you see how much stupidity comes in gambling, not stopping out, not using a max day loss, you know, setting your max day loss to maybe one or two days max of your average game. And think about this, man. You look at your losses. If your losses exceed more than two days of gains, add those up. Take a spreadsheet and add every fucking big loss over two days. How much have you fucking lost? Yeah, sure. 100% sure. And that's what got me, man. I'll leave it one thing, Alex, also. Even your body has a max loss. I can't keep drinking till I die because I will puke. So your body has a max loss. You throw up and you pass out. You imagine if we defeat that, we'll be dead. Same thing with drinks. So everything in life has a max day loss. Auto liquidation, throwing up, okay, when you drunk. So, all right, guys. Anything else? Any open items for MIC? We have a meetup. Actually, we have a meetup. Steve posted, let me see if I pull it up real quick. Yeah, let's put that on the screen for everybody to see. I posted this. We're going to retweet it as well, guys, at the Bay Area San Jose. Oh, shit, where is it? Let me put it there. Okay. So check out our Twitter, guys. Let me repost Steve's meetup. So Steve's traveling around the world, guys. He's also having a meetup in Las Vegas, too. So I treated that. Let me see. Let me treat the other one. Where is this? Did you find it, Alex? I know. I'm still looking for it here. I'll just show you next week. Let me double check. Here, I'll retweet it. Use the email on my Twitter. Here, let me show you. September 10, 11 a.m. to 2 p.m., guys. Sorry. Which is this coming weekend, guys? It's going to be in Milpitas at the park, I think. I guess I'm fresh. And now we're also planning a New York City meetup in October with Nancy and Trade Eric. And I think James is going to be there. I'm going to try to show up there. So I'll let you guys know when that gets a little bit closer, too. But that's going to be an October meetup in New York City. Hey, I think we should do this, Alex, with every bit of time. Add a meetup tab to our website. And we'll keep it. So we'll have a history of all the meetups so that people can go in their pictures and everything else. And then, so the upcoming events. So I think it's going to be easier than us having to retweet all that. Because I plan, we plan to do a lot of meetups, guys. The pandemic is over. We want to meet everybody. We want to help everybody. So get ready, man. We're going to travel around the world, hopefully. Let's do it, guys. So that's pretty much it. If you guys have any questions, feel free to text us at 213-458-5997. If you guys want to learn some of our strategies for free, you guys can go to myinvestingclub.com slash webinar. And if you guys made it to the end of this video, short tease is that $145,000 trade on Bed Bath and Beyond. I actually have recorded. And I actually have some commentary on it. So hopefully soon I should be releasing that live trade to you guys. So if you guys made it to the end of the video, comment on this video live trade so that we know that you made it here. And maybe about if this video gets, you know, 200 likes, we could try to release it this week. Yep. So do us a favor, guys. We don't charge you the stuff. Just click like when you watch videos on Instagram or post. Just, you know, that's all we ask because, you know, we want more people to see this content so that they don't get scanned by other people. So I don't know anyone else that's going to post the $145,000 live trade on the internet, guys. So it's going to be, it's going to be a sick one. Bye guys.