 Good morning traders. Merry Christmas and happy new year to you all. I hope you're doing well today Welcome to the live advanced book map webinar today. We're joined by Jay trader a professional stocks trader Bruce is away today. So my name is Sam. I'll be helping out this morning This this live session is part of our education here at book map These webinars are Joseph forheld every Wednesday at around 10 a.m. Eastern time These sessions give you the rare opportunity to look over the shoulder of a professional trader See how they approach the market and use book map in their decision-making It's a great opportunity to ask questions either in the YouTube chat or the advanced webinar discord text channel So please don't be shy. We'll do our best to get through them all Before we jump into the live analysis with Jay trader just a couple of things to cover First of all, you can find out more about Joseph on his website jtrader.co You can also connect with him on Twitter at Jay trader co and The disclosures here guys All book map limited materials information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations Live trading is in simulation demo paper trading mode and strictly for educational purposes live trading executed in simulation Cannot accurately represent realistic trading performance and the risk disclosure Trading futures equities and digital currencies involve substantial risk of loss and is not suitable for all investors An investor could potentially lose all or more than the initial investment Risk capital is money that can be lost without jeopardizing one's financial security in our lifestyle Only risk capital should be used for trading and only those with sufficient risk capital should consider trading past performance is not necessarily indicative of future results Hello, Joseph, are you there? Good morning. Good morning, Sam and book map. How are you doing, buddy? I'm good. Thank you. Happy Christmas. How are you? Thank you very good over here. I'm with my beer another full-time trader. So Can you see my screen? Yep. Give me a second just popping it out. Okay. Good to go All right, so today we're gonna have a lesson on small caps now There are different scenarios in small caps, right and also small caps change from season to season 2021 we had a bull market and this reflected also in the small cap plan since covid hit small caps started to trade much more volume versus the past 2016 2017 18 the volume High volume days will consider like 10 20 million and then we started like to notice that when Covid hit a lot of new traders came Market became much more volatile much more liquid and The volume now traded the high volume days could be even to 300 million small caps are stocks that have a low market cap This morning, we have several gappers a uvi kala one CGNC Few day two or day three like ACGM and others So I showed this morning my one of the trades that we took in the room on kala basically we were showing all pops and Few things to say about the stock so this morning I made and I really Would like to go over this one second because it's Conclusive or what we're gonna trade and how we're gonna trade it. All right stats gave a lot of things are very important over here in the market and over here this morning. I just said this 50% fader so while I put JNC 100% fader and it faded while I put over here a uvi 60% fader and Lucy 100% fader that it faded Kala instead I put only 50% fader. Okay, and why this? Well looking over here. We have a very small float 1.3 million. So it's a micro flow I consider this a very micro float and When we have micro float they Often float rotating pre-market and this ball in your market was already pretty high So the volume that we trade over here on kala pre-market, I believe was already two or three times slow rotated Primarch was seven point eight million. So yeah a flow rotate already four times over here. Okay, so four times flow rotation Means that to buy the float they buy and sell the flow they buy and sell the float and this craze so much over here Volatility and so much liquid over here Now what I'm looking is this high over here in 943 and if we can swipe this 943 945 946 and give a fake out over here this level right away push it down That would be a good level of breakout that I want to short Not longing breakouts because in this particular stocks like Kala like Lucy buying on a breakout can be very I would say risky and can be a reversal So I'm actually treating this today in my team we're closing the month of December with 80% win rate on Smokers and every single setup that I've been trading I share explain the room So it's all you know what I'm trading. I'm sharing the chart. I'm sharing the stats. I'm sharing the results Why because I apply a systematic process so I have a playbook of setups that I trade and How I trade small caps? starting since 2017 2018 I Would say put the basis for so many other traders out there Starting trading these with the smash the bid in the smash the bid so props to him for helping me out when I need it and Then I simply back test everything out there and I started to look which patterns work But then to get with chart patterns. You have also to have more So chart pattern is a 20% of my trading in small caps Then I have risk management. I Have asset location. I Have mental discipline. I have a read-off order flow through book map Analysis of price section and tape so putting all these things together then I can form a strategy I can build a strategy to trade Something like a la I said this morning multiple times in my room don't trade a short Because above the pre-market high so above this seven dollar area We have I would say a very high volume a stock a stock that is grinding with higher low So I only suspect it's very short to those traders were advanced We have a good read and the standing order flow and if Ron can cut with a good discipline and I will say mental focus now Look over here. What happened at the gate? This is the dip, right? There is a dip that happened over here at six bucks Exactly into this level over here. This is the dip. So we start seeing the dip and right away. We start seeing I volume come in those dots over here. I bought how did over here 720 and Then over here 740 how that again and then push again so I sure one of the chart that we traded in Of course in in the room that I where I teach and and also in there in book map So if you want to Have access to the charts just join book map and you will see the chart that I'm explaining Like we do every weekend with with Bruce So we shorter each pop and we took like four wins, but shorting almost only this okay? We did a long over here We missed this long over here eight because we were short from the stop according to dips short cover short cover Now as I said, this is a setting triangle right now And we have two possible scenarios or a fake break of 945 So we're gonna see if we can have a this 945 fake breakout in this call actually this pattern J slim Or we simply gonna wait it. I'm not gonna long over here. Okay. I'm not gonna long over here I'm holding parts of the position from Exactly 927 average 927 so I'm gonna post now my charts updated in the discord room and I'm waiting over here again for this 945 Major fake breakout All right, this I want to see fake breakout like we had over here and then jumping in short so you can see that This talk was trapped in this morning at this point why 950 we see the fake breakout and often we have this bull trap. Okay, so you will see a stock that goes up Breakout everybody invites to get in bull trap and fill over here now We have a fake breakdown. So you can see that we went exactly To break the trend line right away reclaim So they could push if they hold a trend line to 945 Stats over here low institutional so we have a Junkie company order filled and We have over here Inside the ownership 15% Financial with a company has a net income so often we see this None or negative right in this case. They have a negative net Never nothing comes sorry positive nothing come This days are the charge so I go check all the previous movers and over here this morning. I Was looking at 20% gappers Two million volume and over here I can back testing of 14 years five years to your remember every single day is different Every single year is different. Sorry every single year even from Season to season I'm putting over here the last two years when a check over here Which Stats we have and you can see we have 50 and 50. That's the reason why I said this morning Cala 50% fader Average of a daytime 950 average extension 1245. So knowing this I have a fairly big. I would say edge Together with book map in understanding what is a possible scenario? Now this morning we had JNC AOVI and also we had Lucy that we had all shorts from stats with that This morning stats on Cala were 50 50 in this high-volume Dip holding multiple floor rotation. It became a runner Meantime if if you heard I'm I Short over here. Yes. So these are the sum of the The fader that we had today. This is from from very good to work over here. So shorting that pop on Lucy which is an SSR And you can see the push over here near that high liquid area. So I'm looking for those areas over here just like Very simple. There's much more to to go over here soak in absorption Exhaustion the move or stall two different scenarios High liquid above but the point is looking for the pattern over here trader. I took it perfect bounce we shorted and then Holding for for the main target. Okay, so that is the way to I Would say to take a small cap now over here. We have a big cap So today I said we're not gonna talk about big caps. We have a lot of going on in small caps So we're gonna focus mainly on this Not all this is a The same stock we just saw on Lucy not all I would say The trades go perfect. This is the trader over here same on Lucy. You can see a Shorting that 170 so shorting this here exactly here taking the perfect trade, but Over here get faked out and stop to break even and missing the trade Right, so very important over here to analyze book map once you enter short of 170 then put Your I would say your attention to the nearest high volume resistance Which is this and use that as risk, okay? So there that the trader that are here. He's shorted perfect, right? This is 930 931 and then over here. He stopped it in 932 So he showed it exactly here, but then use this risk over here. This is the risk that you have to use Okay, guys So analyzing errors and reviewing them. It's very important so that you can learn from this Order filled Here Some yes big one big short. Let's go back over here. Oh right We're gonna focus for now on a cala a few tips that I'm gonna give you over here Tracer Fibs High to the low here. We are so we see the top over here 78% so we're basing into the 78% This is a V-wap Now my first target is over here each 40 I enter on this point at this point over here and I was looking for this 945 is alerted you but it didn't get the 945 So I didn't add I'm looking for this 840 now target and there we are boom So, let me see if we can get the 850 Put back color You can see the wash. This is the support 880 which is that fib level 880. I want to see the 850 840 Okay, so you see liquidity Exactly over here into the V-wap For now, we see sellers a 66 want to see a break on that a 60 That's a perfect setup And we need to stay below the zero here of 888. Okay Which is a 70.8 78.6 percent Fibritories when you want to see a curl down over here and unwind to this 840 a 66, let's see if we can break that 865 a 60 dip to a new sellers and 903 and 910 and there we are 856 going to get first covers Share my chart in book map But we can see a few things over here traders if you have a book with the score room or you're in a Boiler room of the trigger code. You can see the charts With executions how we took it from all morning We have over here The first push at this point. I'm gonna so we have a first main push over here and then we had a Second push on here then we had a third push over here. So now It's basically over here doing this, right? So we're doing pop fail pop fail So we're gonna see a test of it here at 830. Okay, so this is the first main target over here Now I'm looking if we're gonna fail and reject this level or we're gonna simply bounce Back over here tonight. All right Why I'm saying that because we held her here the VWAP all morning. You can see over here at point two, right? Here we held me a whole morning So ideally knowing how they trap often They can break down some of the VWAP reclaim it and then push it back up We're gonna look for that Also here a plus J-Lines, but this point you see that on book map Installing the price at 835 a 40 and you see these two main levels So these two main levels is buyers are buyers Already plays on that on the tape or sorry already plays on the level to replace on the book So once they are selling these buyers over here are absorbing in this case the The cells over here and then they're starting to bounce they bounce when we have no more Liquidity over here when we have no more sellers jumping in. Okay. It's like physiological like we go to the support boom bounce We go to support boom bounce Now this is the main point over here our seller going to be in control and then more and wind or Buyers Will hold over here to support the VWAP and then push. That's the reason why I don't show weakness But we showed at the top over here. We have three green bars over here looks more like Like a bear flag Let's see if you can break this bear flag and still more and wine. I have a question Sure, Sam. Tell me so how how do you go about kind of managing the trade from here? Then do you move your stop to trailer stop? I mean you're already taking some profits, but Yeah, that's that's a good question. So As I share we Showed at this pop Then we added here. We were waiting over here to load the boat, but unfortunately, we didn't have that pop so now we scale out a little bit here and We scale out a little bit here this VWAP I'm down to 50% of what I had Now what I'm going to do. I'm gonna risk in the money So I'm gonna put in I'm gonna put over here a protective We say area of risk this area of 890 because this was the Fib level you see over here also with this peak so I want to keep my gains and this 890 895 will be my Trailing case things go bad and this is gonna push back up at this point. I'm not even looking too much of the chart I'm looking more what's happening with order flow So do we see sellers over here? We see buyers two main points buyers buyers some sellers and sellers was this pullback, okay? Then buyers again, which was this And over here you can see we're trying to buy at this point But we have sellers jumping in sellers jumping in so now my point is one fail rejection and unwind second Possible reclaim hold And push the 10 we don't know this We have example from the past we can return the flow so we'll see now if We will have steady sellers or We'll see this big absorption day 20 830 40 and then push back tonight and I will guide you through here You see this week to the downside This means that buyer stepped in Okay, so this is a bullish candle. Even if it looks like you think of what this is a Is a bear scandal because it's red. No, this is a bullish candle That week to downside Means exhaustion over here the move is essentially this one over here You can see it came to the 820 down here to this support and then bounce back up The fat is we had over here buyers so buyers in the dips somebody doesn't want still to make this fail Right. Remember the intention always of these small caps is to collect Right collect money if we go over here in Cala And we go to check the news We can see over here pharmaceuticals announces FDA acceptance of application for treatment of PCED application of Corneal defect treatment Actually something that I'm very was a sensitive to him because my my father had big surgeries for this So I know that is something like, you know Very sensitive for many traders, but we have to think about How they end up these news, right? So not thinking about the attic But thinking about about more of it here how these gaps with these news Tend to fail or tend to run Okay, and today we saw that this company over here in the past Here had two gaps in the past one close red one close green. Okay So we have over here on I would say a clue 50-50 and That's what I said this one, you know, the best thing is when we have stats like 80 90 on 10 gappers So, you know, that's a pretty big edge. All right getting back over here to the right section They're holding actually in the right now traders the B web Going on back over here, you see they're holding this view up over here. So they found a base for now So we said we're trailing 895 I would put now two trailings The last one 895 and half of what I have a 65 another stuff over here another time to it. We'll talk about Tree like this from one of my Mentor students Shorting test all the way down. This is an amazing work. It's more like scalping along the way recycling But next time probably going to talk about something like this. So very good work over here by top tick The main point for me now is to Manage the position It's not about the wind rate It's to the wind rate with this strategy is pretty high But I mentor traders that have 35 40% wind rate But they're very profitable because they have a very good risk management. So more our return This means that whenever they risk they're risking let's say one hour And when they win the win like three or four are okay So that's most important. Okay over here. We're having that push. You can see over here from the view up bounce So reasons to trail over here another partial in a 65 so I trail more a 65 over here And this is an example Of risk management trailing. All right, you don't want to give back all your profits they have still Buyers over here in On this topic of kind of trade management and trailing your stop Joseph It's it's a tricky situation isn't it and you can kind of look at it as the better of two options like you obviously don't want to give back all your profits, but it's You you don't either want to be whipped up and stop you out early and then for it to carry on So it's but you'd prefer that option, wouldn't you? So it's it's kind of best of the worst two evils It depends it depends really from the pattern and the scenario they were trading Example on something like I will bring up an example. So it's you know clear for us on something that Is fading like this. All right like Lucy And you start formulae highs and lower lows You definitely want to hold the majority over here of the core between 60 and 80 percent for your main target But on something that instead could be sideways or still counter trend Which essentially we can see this morning Cala is being so then I prefer To take more profit and having trail levels, you know in order to lock in I'm sure right now Because I like to short a lot of these small caps, but often we long them like the day. I CC am I longed it This way here is one of the setup that I trade long Of course, I'm not gonna reverse my position for sure too long because I'm holding my short position because I have a high average if over here I was not Not short I I will go long and this is a playbook setup that I trade exactly for this fake wash and then reclaim But for now we hold in short I will be looking now to drill everything at 895 And then looking at this level over here between nine fit 940 45 as we said before till 10 bucks that area up here To reshor it. Okay, so we're gonna put this level because it's a particular level of resistance And we can see that over here many times We had rejection here here here all of these levels over here. We reject it, right? So multiple times over here So this becomes our level of possible fake out Okay Where we can have over here the possible Full trap area So we're gonna see for that You can see how fast these washes come, right? How fast these washes come instantly over here They start dumping And it's not something over here that it was spoofing or just no, this was a real dump So somebody over here had shears Generally big hands Volume this last bar was around 60 70 k so in the last two bars You can see they've started dumping one over here they Filled this level at 865 they're dumped more. So this is a real seller And these are real orders over here. They are simply Swept so over here they're eating out And it came back to that previous support So that for me is a is a good point that we're forming a lower high We still have sellers Now I can reduce my trailing at this 887 All right So we're going to bring down 887 trailing and of course They can fake out Maybe push it to nine and then back down to seven but I prefer to lock in It's a pretty good stock today that we wanted to talk about small caps Quite liquid We're trading over here today on this 25 million Pre-market trade already 8 million We had lucy this morning as I was saying We're fader Now simply fading low volume HT GM We're holding from yesterday 515 We're looking for this 320 These are a place that we're sharing And we're trading In the room and that also we're Explaining why so these are all like overnight position short this from 320 this PR QR And then we have Tesla here this morning, but as I said today, I prefer to trade. I talk about small caps I simply feel pretty good in giving an a plus setup over here 113 113 and 24 Where this may not fail over here Yes, more than wine. All right, so good Let's go back over here to gala Rejecting this a 55 curling down Yeah, we have the support a 20. We have to break the support And then we could see 770 and then 720 Those are more target targets area And I'm looking for targets if you're breaking that level So I'm looking for Main target for today would be the seven This area here this So I'll be looking if we can get that area today Now volume is very low Remember This can change very fast traders Right, this can change very fast. So you can see the sending volume over here Also pulling back When I see a breakdown If we're gonna see a fake breakdown This is a tip. So if over here We're gonna get this point a 20 Breakdown right away reclaimed at a 20 It can be another push low liquidity right now. You can see 11 o'clock We went over here from an average of 400 k per minute Down to 50 60 k per minute So very low liquidity Again, another bounce over here a 20 Remember traders today on this I'm going to write over here a few points In order to have a fail to have a fade Volume must be low Below 150 k per minute now on hold up b-wap and a 20 fair for possible afternoon Long push in the meantime I'm looking at the market So I'm looking at this potential stock movers Right now I'm looking at lucy Jnce I'm looking at Yes tesla amazon and meta which I'm trading on a daily basis Another curl in the meantime on kala When I say curl I say cut pattern so remember these stocks have We say they are super fast when they move. So if they find volume They could really push fast. All right So always be careful Prepare yourself use your trailing. It's very very important and be I would say Always stock in this this kind of stocks wait for your level wait for your plan But always stock them because in two seconds they can go up and down like even one buck per share We had the first breakout over here of this level now. We have a second trend line passing over here for 880 885 I'm trying over here to go for a breakup at 880 890 880 is approaching this level So always watch this high liquidity areas It's a breakout level So ideally they can really push above 880 right away. They Fake it Bull trap and dump it down to eight dollars. Okay, so I'm always ready over here to add a little bit more even if I'm not Uh a trader who adds at lows They may sound support a 65 so 67 69 and some resistance 880 down to a 71 Any possible next two minutes, they're gonna go for that 880 breakout Just check over here now Looking at 880 They're looking for that liquidity. They're looking for that push Again, you cannot find over here liquidity Boom back down to a 70 So now We're gonna keep our trailing at that 885 887 We're gonna look always for this breakdown 820 and look always for the target at seven bucks So again 857 867 really just Hold in position waiting Not adding anything with here Meanwhile lucy all the way down J nc all the way down And a uvi all the way down. So Now the three faders work pretty good. This is the only one that Is not fading as we want so high chances over here for a trap Just about patient traders Following the plan for now a 78 almost that approach that 880 Let's look if they can break it But now let's liquidate 80 over here So if we break I'm gonna be I'm gonna be Say ready in case of adding to the short or instead if it pushes 888 885 will get out entirely Again approach 875 careful in case it squeezes 877 879 It was pretty Yes, 888 885 will be my max trail and now fill again I was running traders in the meantime Uh statistics This is a very fastback test And it's not considered in different micro cycles Uh and senior that we had About over here. I just look at the stocks that in the last 12 months and the same parameters just like uh cala today uh considering the The close by 1030 right so after 1030 holding the open level And the volume above 30 million the float so we're considered a small float Uh price between 1 and 10 and gaps above 40 percent. So Uh pretty big gaps And over here we have uh no Main edge right or I would say one is the main one We have Seven stock they closed above the open. Sorry the previously closed, right? So we're gonna close above the open over here. We had oh, sorry 57 percent so four stocks closed below the open so four stocks the average high of day time 955 1043 1009 947 958 940 And we are in range with that because the high of day right here was 1004 Just like happened over here on all of these. Okay So you can see that the same stock we're trading right now Had A average high of a day. So the high of day happened before 1043 And of course we can go back and check all of these And look how they behaved So to understand better How these stock react you can see over here. This seems like today, right? That's why I use back testing over here So these are all the stocks that during the last year Had similar stats to column. Okay You can see Held over here all day and just simply fade in the afternoon or if it was an offering. I don't know over here we had this Push and then fade in the afternoon. AT&F was this a few days ago Actually, yesterday, sorry So you can see that push and then faded NVIV if you remember this was from august So extend over here again 10 Midday holding then fail TVLT Extending over here again 10 o'clock and then fading. So the point over here that ideally by stats We will need to see a fader. So this is the use that We're doing that and this this could be potentially If we have this squeeze to high of day right now on cala something like this or simply just looking as atxi Okay, so this all this is helpful to understand the the price action scenario here Okay, Sam. Any questions buddy? Hey, yeah, um I'd like to ask you about consistency if you got time Mm-hmm. This is uh, at the time of year many of us will be looking back and reviewing our performance. Um, something 2022 taught me personally is is the importance of of being consistent and When you think about it, how can you be a consistently profitable trader if you yourself Are not acting in a consistent way And I kind of put it into two camps The stuff covered by your trading plan and you talked about your playbook for small caps, for example The sticking to certain instruments set ups times of day Which this is kind of relatively easy to define and follow But the bigger challenge in my mind is the mindset It requires you to kind of be extremely self-aware Recognize when you're straying out of the zone Um, you know overconfidence underconfidence tiredness even having too much coffee can change the way you execute So my question to you apologies for the rather long preamble How do you maintain like a grounded consistent mindset when you're trading? So big question while Pala is just pushing over here. Yeah, I saw that So now it's halted let's uh, but the plan was good. So that's the reason Trillion right here works. So in order to become consistent, you need for me three main things One is routine And I will talk about these as three are One is retraiting One is report card so when I When a trader wants to Be mentored by me The first thing is not looking into his trading, but is looking into his life Expectation goals I would say fear stress Everything that matters is important to trading and trust me trader traders If you want to make a seven figure per year or more or you're a small trader you want to get to that, you know Maybe three or four figure per day Everything starts from a plan. So the first thing is you have to plan ahead what you want to achieve and you have to Have a routine routine that consists in Lowering your stress having a stress relief Preparing In the morning or if you trade like me in the afternoon evening For your trading day Be repetitive Routine means it has to be boring repetitive. So you don't have to have like stress You don't have to have like anxiety when you trade you have to be simple like on your zone in your zone So when you have a perfect environment when you know exactly what you're going to do when everything is planned Then you can start preparing your Pre-market plan your watch list. This is the first thing The second thing is you have to Make experience Okay, you want to be consistent consistent means that You have to trade a strategy that first of all works So you have to back test it and then you have to become good in that strategy. For example The strategy that I that I teach But it's not that I teach my strategy I'm consistent traders are consistent and the new trader that jumps in will be right away consistent. No, it takes time It's like if I tell you Play in that basketball team Everybody has great But you just started Even if they tell me they teach you how you have to play You still need a lot of training in order to become good And this training becomes like experience practice and retraining actually really taking even book map you retrade in order to become uh better in recognizing pattern faster analyzing the structure and uh reading over the flow And the third thing is having a report card. So analyze What you're doing every single day and then every single week every single month See if you're actually evolving as a trader What do you have to improve? What do you have to overcome in order to to get to the next level? Why do you have to fix? And this is a valuation that has to be totally honest with yourself. It's you analyzing yourself And then work with a mentor These are I say the pillars for For becoming a great trader and to become consistent That's awesome. I love it And I and the first thing you said there was You know be consistent in other areas of your life as well And I I totally agree with that and it you know, it looks like you as an individual are extremely consistent in other areas of you Obviously, you have a fitness program and you think this kind of helps Helps you like things outside of trading helping you within the trading environment The fact is that a trader generally wants to Always control everything So the the more control the more planned Is your life The less I would say space forever Anxiety and stress You will have That's the reason why when you trade I prefer you to trade a strategy with set rules set risk Set number of shares or contract whatever that is Because everything has to be planned If you don't trade with the correct plan or the correct strategy, then you're gonna fail Yep, absolutely and I also believe it's them You know the skill needed to follow your plan to sit on your hands to be patient It's the same skill that you need to keep grinding in the gym. It's discipline, right? And and that's it all ties together Exactly exactly exactly It's uh Everything is based on you know your goals your motivation your plan dedication and then of course you You right up, you know, like you evolve like you improve And this is the the point of trading like it never stops. Oh over here. Just let me say over here It just popped 10 40 10 40 I'm looking over here for a short in the 10 40s I'm risking over here 10 60s So I jump in short 10 40 right now risking 10 60 Stopped out immediately right away. So took a 15 cent stop and Now simply waiting. This is pushing strong See if we can get another short over here at the top But only if now I see a major stop for a major book map resistance So now over here traders. This is just like pushing for now and just waiting And uh, I will share the chart again in discord room book map and also in a small capital Okay, sam anything more I think that's it for me that that price action. There's a great example of trailing stops. Why why we should always do that Exactly exactly exactly All right, so traders, uh, thank you for Being over here with us today. Thank you sam for being a great host See you again traders next week and uh, Merry Christmas Yeah, thank you. Joseph. It's uh, it's been fascinating You know hearing how you manage your trade and your thought process and I like how you're going to back testing on the fly there That's very interesting And uh, yeah, I loved what you said on the consistent mindset So guys if you want to hear more about jtrader remember to check out his website jtrader.co and uh, happy new year everybody Happy new year. Thank you