 So today is Wednesday, January 22nd, 2020 at 11.04 a.m. So before I get started, I actually wrote this down. So Tosh, we kind of opened up Tosh's phone number to everyone. So if you have questions about MIC, if you're curious about joining, if you wanna see if MIC is right for you, you could basically text Tosh now. His number is 973-506-9822. I wrote it down, so I don't forget. But basically now you have direct access to Tosh. If you call him, he will not pick up. This is only for text messaging. So if you have any questions, you're on the fence, you don't know if MIC is right for you, hit up Tosh with any of your questions and I'll answer it. Number two is if you are a brand new trader or new to trading in general, me and Bal put together a mentorship course for the brand new trader. It's about two hours long. You could find it at myinvestingclub.co. Also, I took challenge of growing a $30,000 account in 30 days and I made about $84,000 doing that. So we kind of have all the broker statements, all that stuff on myinvestingclub.co slash Alex. So if you look at the title of the video today, I said kind of how can you trade low float stocks or how do you find an edge trading low float stocks? So let's kind of recap what like a low float stock is first, right? NTRP is New Hyundai. That's exactly what a low float stock. So a low float stock for me is any stock that has a float of I don't know, less than call it five million, less than 10 million, something like that. So something that's very jumpy, right? Something like NTRP closed yesterday at $1.44 and today is at $365. So that's the type of stock that's a low float stock. These are the type of stocks that jump up and down like crazy like 20, 50, 100, 200, 300% in a day. And there's a lot of money to be made on these types of stocks, but there's also a lot of might be lost on these stocks. These are kind of the stocks that most newer traders focus on because they're lower priced. So if you're trading 10,000 shares of a dollar stock, it's only a dollar. But if you're trading 10,000 shares of a $50 stock, it's totally, totally, totally different. So a lot of newer traders flock to the small caps, flock to penny stocks, flock to low floats. And that doesn't mean that there is not an edge in it. There is an edge going long and there is an edge going short. My edge that I primarily focus on is the edge of going short because 99% of these small cap companies are garbage companies. Most of these companies are junk. Most of these companies, the only reason why they are listed is to screw over shareholders to dilute the company to raise money. And the only way that they can successfully raise money and dilute is by selling shares on the market. The more supply that there is in the market, more of the price goes down. So I kind of focus on these scam stocks and I focus on shorting them. But the problem is on something like NTRP, when it goes from a dollar 50 to $3 or 350, if you're just blindly shorting at $2.50 or blindly shorting at three 50 just because you think it's up too much, that's kind of how you blow up your account and that's kind of how you lose. Or on the flip side, if the stock went to $3.50 and tanked all the way to $2 and you buy that $2.50 because you think it's going to bounce back to $3.50, most of the time that's kind of the dead cap bounce and that's kind of where the stock is dead and you end up bag holding a piece of shit company forever that's never going to go up. So there's two sides to every coin for low floats. So I kind of want to give you guys some tips that I use. I kind of want to give you some tips that might help you long term with trading these low foot. So these tips I'm going to give you are for the short sellers perspective. That is for when you make money when stocks go lower. I kind of actually got a question the other day on Twitter that said, what do you guys mean when you say you're shorting a stock? And I mean, I was just like, it's exactly what it sounds like we make money when the price goes down and people don't really know what that is. People don't know it exists. So I kind of want to explain that as well. So the short perspective is we make money when the price of stocks go lower. We bet against the companies. We bet that these pieces of shit companies are indeed going to continue to be piece of shits and dilute their shareholders. So the number one thing that I think is really important. So let's say a stock has a float of a million shares. The stock has a float of a million shares and the shares outstanding. Let's take, let's go back. Let's say the shares outstanding is $2. I mean, two million shares and the stock is trading at $2. Essentially that company should be worth around $4 million. So the number one rule is that if Bow could buy the company, you don't fucking short it, right? So if there's a company that you or a friend or you know some rich guy that could buy out the company, chances are that you should never be shorting that company because some hedge funds, some rich guy might actually buy out the company to squeeze the stock higher. That's happened on stocks like AWX. It's happened on stocks like AQXP. It happened on stocks like KBIO. So these guys that have millions, tens of millions of dollars, hundreds of millions of dollars could buy up the company and squeeze it up to hell, right? I'm to heaven, right? So that's number one. If the flow is low, if the market cap is low, let's say under $5 million, you shouldn't be shorting that stock at all, right? That's number one. Number two is most of these stocks, what they like to do is they like to run up pre-market. So if you are trading pre-market on the short side, I don't recommend it on a nano-float stock. The reason why I don't recommend it is this. Number one is the price during pre-market is more jumpy than usual because there's less volume and less liquidity. So what that means is if you are trading pre-market, chances are that the stock goes up higher or the stock goes lower, it's too much. It's too risky, right? It's too risky. You could be shorting a stock at $3 that has daily chart resistance at $3, but because it's pre-market, all someone has to do is flash a 5,000 share bid and the stock just jumps. It skyrockets because there's no sellers there, right? So that's number one. Number two, what's very dangerous is if you are trading a low-float stock on day one, that again, we're talking low-float stocks only, on day one that has SSR, that is also very dangerous. So if you don't know what SSR is, just look it up, but the quick definition is that you cannot short on the bid, you could only short on the ask. So because of that, what ends up happening is the ask stacks up and people are just pushing, pushing, pushing, pushing the price down until kind of supply meets demand and then the stock kind of jumps back up because there's no sellers. They've been pushing it down the entire time. So most of these historic short squeezes, I'm talking drives, I'm talking SAEX, I'm talking Lake, all these historical short squeezes happen when the stock was on SSR. So I think PPTH was one of them as well, but that's number two basically. So if the stock has SSR, that doesn't mean you can't trade it. It just means that you have to be more cautious because it's a lot easier to manipulate it to the upside, right? And as short sellers, we make money when the price goes down, not when the price goes up. So that's also important. The next thing that everyone needs to kind of be doing is using hard stops. So a lot of people educate the wrong way and they say that using hard stops is wrong. The market makers see your shares, the market makers try to screw you, this and that, and it's just bullshit, man. The market maker doesn't give a shit about your 100 shares. They don't give a shit about your 500 shares, but if you use a hard stop, you're gonna stay safe. So for example, if you're trading a low float stock and let's say, let's use NTRP as an example, if you're using that in the high of the days, $3.50 and you're sitting there with your mouse ready to click on $3.50, if it breaks that level, usually what happens is you have a nanosecond of hesitation, right? You have just one nanosecond of hesitation and by the time that hesitation is done, the stock goes from 350 to 370 in one second and you're down an extra 20 cents. But if you had the hard stop in place, it takes your emotion, it takes your hesitation, it takes everything out of the picture, it gets you right out at your 350 level and now you're safe to be able to trade it again. The way that we have to think about hard stops is we have to think of it as your seatbelt and trading. We have to think of it as your airbag and trading. Sure, you could drive without a seatbelt and you could drive without an airbag, but if you get into an accident, you're fucking dead, but with a seatbelt and airbag, your life is saved and that's the point about trading. Trading is not about making money, it's about showing up every day and trying to not lose money, right? Every single day I come to the market, I don't say I'm gonna make X amount of money, I'm just saying I hope I don't fucking lose money today and that's the whole point. Your goal for trading has to be that you make more money than you lose. My win rate these days is about 79 or 80%. So I win 80% of the time, but that 20% time that I lose, I have to make sure that it's not more than a couple days worth of work, more than a week's worth of work. If it's more than a month's worth of work, I'm already in the hole, right? I'm already in the hole. So that's kind of important as well. Also sizing is very, very important on low float stocks. I think I said three or four tips already, I'm gonna keep going until I've run out of shit to say, but another thing that's really important is sizing, right? Sizing, so because these stocks are so jumpy, right? Because the stocks are so jumpy, it's so difficult to really size into these trades because if you look at a setup like NTRP, the stock was at $2.90, literally 15 minutes ago. 15 minutes ago was at $2.90, and now it's at $3.60, so almost a 70-set move. So on these low float stocks, you do not need massive size to trade. You do not need massive fucking positions to make money on these stocks. Oftentimes when you trade less with less size and be more patient, you are bound to make more money because if the stock is jumping up and down and you have size, you're getting emotional because let's say you have 5,000 shares, every 10 cents is a $500 win or a $500 loss. So here you have a stock that's jumping 20, 30 cents every minute or two, so you're jumping up and down. And if you're not comfortable with that, you will exit emotionally, you will exit improperly, and that'll end up screwing up your trade completely. So what I like to do, what kind of I created for myself with the help of Dr. Brett Steenbarger, was the 30% rule. So what I noticed is that most of my money was coming when the stock was kind of breaking down. No shit, right? When the stock is kind of heavy, when the stock is weak, that's what I'm making my most money. The problems occur when I get too over eager. The problems occur when I get too excited. The problems occur when I don't follow the plan. So what can I do to fix this, right? So something that's kind of been revolutionary for me, revolutionary for the members in MIC, I know James uses this all the time and that's why he's so successful, is a 30% rule. So what the 30% rule is this? It's that if the stock is trade, and remember all these tips are for a short seller's perspective. So if you are looking for the long-buy trader's perspective, you just do the inverse, right? So the 30% rule is this, if the stock is trading above VWAP, right? The volume weighted average price. If the stock is trading above VWAP, you are only allowed to use 30% of your size only. And the reason why that is the case is because number one, it is so much easier to stop out when you're losing, when you're using less size. When you're not in full size, it's so much easier for you to exit emotionally mentally. Number two is because the stock is above VWAP, chances are that it's still on the front side of the move. Because it's on the front side of the move, you have no reason to be shorting size on this. So this kind of keeps you safe. Whereas when the stock breaks VWAP, when the stock does confirm, when the stock does kind of tank, then that gives you the ability to reason to kind of size into it. So today on NTRP, our plan was basically to wait for the 280 break and then to short it, right? So today what ended up happening is it tested at 290 or 289 and it bounced all the way back up to new high of the day at like 350 or 360. So what we're trying to do every single day is identify these key levels that if they break, the floodgates open. But if they do not break, it's like the defense shield is up and we have to kind of get out of there. So every single day our job as traders is to identify kind of these inflection points in the stocks. One of them is the death line, stuff like that. So we look for these big inflection points on these stocks and then wait for them to break those levels to rebound, right? And then we short that rebound and that's kind of how we make our money. We don't make our money when stocks are going up. We make our money when stocks tank, bounce up and then we short it. So let me kind of draw a quick picture maybe to make it a little bit more clear. So stock is going up this, well, okay. So if you look at this, this is the stock ramping up and this is the top. It goes down, it bounces. We're looking to short that bounce before it continues lower. So that's kind of what we're looking for every day. So those are kind of the things that help me stay safe during low floats. Obviously we also have the last thing which is our zombie rule. So we kind of created this. This is something that me and Bob discovered after trading for a fuck, man. It's been years now, it's been years that we never really knew what this phenomena kind of really was until we started really tracking it ourselves. But the zombie rule is really essential, man. The zombie rule is kind of what changed my trading dramatically and it's kind of what kept me safe today as well. I didn't really have a big day today. I think I made like 900 bucks or 600, something like that. 900 bucks normally I like to cut myself off after 9.30 because what ends up happening is based on my statistics, based on what I see for myself, I tend to lose money after 9.30 in the morning, after 10.30 in the morning. So I basically cut off my trading past that and I've kind of been a more consistent trader. So today it's now 11.20, my buying power is cut, I'm up $900, so I'm forcing myself to walk away. I'm forcing myself to get out of here because also what I've recognized is that the longer you are in front of the computer, the more trading turns into a casino. In the morning between 9.30 and 10.30, you have an edge, you could trade, there's money to be made, there's less algorithmic trading and more retail trading to take advantage of. But what ends up happening is past 10.30, the volume shrinks and the algos just take over, up and down, up and down, they chop you up left and right. So what I end up doing is because I cut my buying power, because I walk away, it's like I'm green at the casino and I'm just walking right out of there before I put it on roulette, before I put it on crafts because I'm confident. The worst thing you could do is make money trading, let's say you're up $1,000 on the day, get too confident, get into the wrong trade and then give it all back plus more. So that's kind of the things that I've been doing to help improve my trading. So far, January has been a great month, I haven't really looked at the numbers yet, but kind of, because I don't really like to think about the numbers, I just like to think about the process these days and the numbers follow the process. So I'll probably do a recap at the end of January to see how I did, but that's kind of what I want to talk about today. Do you guys have any questions? I'll start taking questions for a little bit. But does that all make sense, guys? If it makes sense, leave a thumbs up, I see the thumbs up counter going up on the live video. So yeah, let's do some Q and A for a little bit. Any questions? What is an example of inner and outer lines? So if you look at NVAX today, you could see that 850 is an inner line and $9 is an outer line. So an inner line, you could use a little bit less size and take advantage of it, whereas the outer line is kind of the level where you really want to put on the size because that's kind of the main resistance area. When you say you're cutting your bower power, is that a broker setting? I contact my broker and I tell them to cut me off, which means that my buying power goes to zero, which means that I cannot trade anything. Thanks, could you give some safe long setups and tips? Go to our My Investing Club YouTube channel and write first bounce in the search bar and you'll get 20 videos on long trading strategies. Goku Black, I love your name, man. Have I ever tried to mess with options futures? It's that I've messed with options, I made some money, but I don't really have time to dedicate the amount of time, I guess, to learning that because look, I've been training for six years now. I've been training small caps. So I have an edge here. So my mentality is to squeeze out as much of this edge as I can, but I still do watch large caps. I'm curious about it. I like to get to learn more about it. Joe and Sam and Brian all trade large caps very well, so I try to sneak into the large cap room that we have and just try to learn, but as of right now, my focus is small caps because I have such a big edge, I have to take advantage of it. What's the difference between shorting the death line hitting the bid and chasing shorting weakness? If you're just chasing weakness blindly, that's different than shorting the death line. The death line is the last major support that stock has. Most of the time it doesn't bounce after that level. If you're shorting some random support level, chance starts gonna bounce. Explain how you use morning push as your risk level when shorting. For example, stock opens at two, morning push at 10, it goes green, red is two 10, your risk level. Where's the green, red level? I don't understand. Do I do a quick check for dilution in the filings for confirmation? Yes, I do. And we even have a video on YouTube about how to read filings in less than five minutes if you are really just trying to sift through it. What I like to do is I like to just learn the basics of the filings, because if I learn too much, I end up becoming too biased. So what I wanna learn is are they diluting? Do they have an ATM? Do they have a shelf? I wanna know the basics that they're a piece of shit company, but I don't wanna know how shitty they really are because that's gonna end up causing me to be too biased and too emotional and I'm gonna fuck the entire trade-off. So I like blowing just enough, not too much. How do you be more patient with covers? Well, you should always be covering at support, right? So it's something else that's really crazy that people just set arbitrary numbers to exit. So let's say you're short of stock at three, you're saying I wanna exit at 202 because that's the level that's gonna make me the most amount of money. But if the support level is at 210 or 215, that's your exit, not your bullshit target. So that's also important as well. So if your cover target should always be the support levels, not some arbitrary number that you came out of your ass with. Do you use trailing order on part of your position with stock in the back? I do not, but I think Joe does. Joe has some videos on that that he talks about. Well, Tesla's almost 600 bucks. Can't wait to check back in two months and see if it's at 1,000 or if it's at 400. Also, what do you guys think about long vs. short videos? Cause what I noticed is a lot of people have short attention spans. So I wanted to try to see if I could keep my videos around 20 to 25 minutes long rather than an hour long so that you guys could actually watch it and absorb it. Any other questions, guys? Oh, shit, let me talk about this. So we're raising prices. We're raising prices on February 1st. So what we're doing is it's final. We're not gonna change it. The price of monthly is going from 179 to 197. The price of annual is going from 1790 to 1890 and all current members that sign up before February 1st are grandfathered into their prices. So let me explain. If you are paying 179 a month right now, you will be paying 179 a month forever. But if you cancel and rejoin in three months, you're gonna pay the 197 price. So this is kind of, I mean, no one else gives you four free trading DVDs. We're actually working on a fifth one right now. No one else gives you almost 700 free videos. No one else gives you daily mentorship phone calls. No one else gives you eight webinars a week. I mean, a month. So our value is there. So we're raising the prices. Again, it's happening on February 1st. Monthly is going from 179 to 197. Annual is going from 1790 to 1890. And again, if you sign up before February 1st, your grandfather in for life, your price won't go up as long as you stay a member. Let me catch up on these questions. Too long of videos is too much information to remember. I think what everyone should do is when they're watching these videos to have like a notepad or posted or some shit like that and just write down shit, right? Just write down shit, because these are your lessons, right? Imagine you're going to school, you're watching this as an educational lesson. So if you are not taking notes, how can you try to retain the information, right? What you have to think of MIC is like a college or like a university, right? You're going to school every day. You are studying, you are studying, you are studying so that your test that you pass is you making money in the stock market, right? So another analogy that I like to always kind of mention is that if people, it takes doctor, it takes my boy, Dan, is becoming a doctor. It took him eight years in school to become a doctor. Yet people want to be successful in training in eight days, right? The whole point of training is that it takes time to be successful. If college takes four years for you to get your degree, you have to think of training. It's not going to take you four days or four weeks to be successful, you know? So I think that's it, guys. I think I'm going to wrap it up. I think I'm going to keep it simple. If you have any questions, again, let me give you Tasha's number again. It's 973-506-9822. Just text him, don't call him. Bow made a really good video yesterday on how to grow your small account. So I'm going to post that as well. So thanks again, guys. Have a good day.