 What's up, everyone? My name is Alex. I'm one of the co-founders of MyInvestingClub.com and I want to let you guys know about something special we're doing for our viewers on YouTube. So the most common question we get asked is, you know, how do I start day trading? So what me and my mentor about it is we create a free two-hour mentorship course for the brand new trader. It's going to be available at MyInvestingClub.co. The link is going to be right here. This is a free webinar that reveals our 12 secrets that every single brand new day trader should know before they start. I also want to let you guys know about something that's very unique to MIC. So if you have any questions about trading or you're curious about trading or you don't know if MIC is the right fit for you, now you can text our head mentor, Tash, whose number is going to be right here and he'll answer all the questions that you have in less than 24 hours. Thank you and enjoy the video. So today we're going to be talking about understanding your framework. And this is kind of a topic where I kind of, I glaze over in almost every other webinar I've ever done or maybe every other one, whatever. In a lot of the webinars, I've kind of gone over this topic. I've grazed over it. I haven't wanted to tackle it until like today. I kind of wanted to tackle it. And when I say understanding your framework, there's a saying that I often will say in these webinars, well, if you're, you know, if you're binge watching the content right now, this is what I always talk about when I say, nobody sees the market the same, you have to understand how you view the market. Like, you know, like all, and, you know, every time I say all of this stuff that we teach, it's good. But until you go and see it for yourself, see it through your own eyes. It's, I don't want to say it's, it's not meaningless, but the meeting of it helps sink into your brain so much more once, you know, like Joe and I talked about, like I had a, I had a couple calls this week where they say, Hey, that webinar that you and Joe had last week for, or not last week, we did one a long time ago where they were, you guys said, you know, when we say something in the videos and we say that you're going to say that this isn't going to be me, like I see the mistakes you're making. That's not going to be me. We, you know how Joe and I said that we knew you would say that? Well, I got a couple calls of people and they said, yeah, I totally said that, bro, and it totally happened to me. Like, I was like, yep, but now you know instantly what we're talking about, right? Cause you saw it through your own eyes, right? All the rules that we talk about, you understand why immediately once it happens to you. And so that's kind of what I'm going to go over. I'm going to help, or I'm going to attempt to, attempt, attempt in this webinar to help you understand your framework, to help you kind of hone in on exactly how you guys see the market and what categories and what, you know, like what, how you can organize your mind in understanding how you see you, what you see and why you see what you see exactly. Anyway, so let's get, let's get started. So if this is your first webinar, like Gustavo, thanks for coming. Welcome. That being said, let's go. All right. So, you know, it was a mover that kind of, you know, it was strong, not strong, but it was kind of relevant in the beginning of the week. It kind of lulled out in the end of the week. And today it just epically tanked and gave a great bounce short. If anybody got it, I wasn't here, but it was a great bounce short today. If anybody got it. But anyway, this was like, this was on, this was on like Friday or Monday or something, but this was a, this was the trade right out of the gate. Um, just the context of the situation, the daily context of this was this is a stock that had run big in the last couple of weeks, but it started to taper down, it had gapped up the day before and pushed here. I believe this was like a day two-ish. It was like a day two kind of gap up and we're seeing if we can hold on to the gap. And so I was thinking that it wasn't going to be able to hold this gap. I was thinking it was going to, you know, not be able to hold on. It was going to tank. And so I kind of, I saw this downtrending pre-market action and I said, you know what, if this thing breaks eight at the open, I bet we can see a flush. So I kind of have an, I kind of had an eight dollar short thesis on this. I was like, you know, I'm going to short this if it falls under eight. And if it just comes back and goes over eight, I got no problem cutting it. And that's what I did. I just, I shorted it and I cut it because I didn't want to fight it. I didn't want to be like, I didn't want to decide on which line was going to be the one I said, like, I think this cannot hold on to eight. So I'm going to short only under eight. I'm going to let it do whatever it's going to do over eight. If it goes to like 10 or 11 or 12, I'm, you know, the trade idea is dead. But if it stays somewhere around here, I'm just going to wait until it gets under eight and short, you know, I shorted first. It didn't work. I waited for it to do its spike and get its thing. I'm not worried about getting the top on this. It comes back down to eight. And I think now we can go. Unfortunately, it wasn't that big of a trade. Like I didn't get an opportunity to add. And it just, like I was hoping for another bounce back up to eight. And it just didn't bounce high enough. And I mean, I don't, you know, it's still a profitable trade, but like, I wanted that pop back, right? Like I expected this kind of, you know, in the morning, like right under low a day, perfect. I'm covering, I expect it to bounce. That's why I'm covering. And like, I just wanted one more pop up to eight and it just didn't happen. And it just epically crashed. So, you know, I missed out on a piece, but like, I mean, I made a piece. So I can't complain too much. But then there was an opportunity. This was a really harsh tank. And what I, what I was expecting with this was that this bounce was about healthy to 750 a line. I was really expecting this to kind of come back and fade towards seven. And so when I was watching here, I was, I was watching this strong bounce in this dip. And when I saw this flash crash, that got me actually interested in the other way, because I was like, you know what? This was a pretty strong bounce. I bet there's a whole bunch of people that chased here and maybe shorted added on the bounce. And we're really counting on this to come back down to seven. So when we get this flash crash, I almost feel like that was just the tell, right? That was just a tell. And so that got me interested in it along. So I entered into a position and I said, I'm going to add as this breaks 750, you know, and after we based here for a little bit, you know, when I'm buying here originally, yeah, I brought, I have a 725 risk. And that's, you know, I'm kind of steep here, buying in the forties risking 725. So it's not a full size position, but we base here for a few minutes. We break 750. Now I feel confident in just cutting it under 740 because I feel confident that if it comes back under 740, that I'm not that like, it's not just going to like, trap me out and go back. I feel like if it fails 750, there's going to be some longs that want to bail. I feel like I'm not going to get just flashed out of the trade. So that's why I picked 740. So basically just my typical routine, I stick to small risk until my risk is either confirmed or lowered. And in this case, it was it or it was lowered or raised. I guess it should be raised for a long, but lowered in the sense of lower dollar amount, right? Where I'm risking like 40 cents here, but now I can lower my risk and only risk like 10 or 15 cents, right? So I wasn't willing to buy the dip, although I should have been right when I saw that flash grass. I should have just been right there, but I wanted to wait a little bit just in case I was a little unsure. Anyway, and I had an eight dollar target and that was it. You know, you can see like my last sell here. This is just like my last quarter. I'm sure, of course, I'm hoping I can get back up the higher days, but I expected eight to fail as far as quick to sell. Anyway, so that was, you know, sorry, kilos. Oh, yeah, all the crashes caused by me. No, flash knows this setup. Flash called me about this setup. Like this is this is one of the things flashlights. Sorry, ruin that, but ruin that secret. But yeah, like this is one of the one of my good entry signals, too. But when shorting, when do you recycle up versus bail? That's a good question. When do I recycle up up? When when the bounce isn't stronger than I want is the answer. When the bounce isn't stronger than I anticipate, I will recycle it. Basically, it has to conform to my thoughts, right? Like I only want to recycle, which is adding. If it's conforming to like me running along the side of the stock, like, oh, it should bounce here. It should, you know, hold 350 and bounce up. And it should like, I want to recycle around like 375. So like sometimes I'll wait for it to pop. And if it does, and if it pops to 380, 385, I'm not recycling that shit. Right. But if I'm confident in this, in this trade, you know, a lot of times, depending on the confidence level, I'll already have the order there. If the order is not there, though, that means that I'm skeptical of how right I am. And so I will wait. And if it pops higher than I want, I'm not recycling. That's kind of the thought process that I go through. Do I consider a stock overextended when it is too far away from the VWAP? That is VWAP extension is something that I take into consideration. When I say when normally when you hear the talk overextended, I think about daily chart. That's that's the number one thing I think about is daily chart overextension. Now, VWAP extension is something I also pay attention to. Would VXRT still be considered a low hanging fruit short tomorrow? Yeah. So normally it's day two, like day two is the best day for a low hanging fruit trade. It can happen on days, you know, three, four and five, but day two is always the best day. But yeah, if it pops the point, there's still probably baggles, baggles in it. But the thing is, is the point of the reason why day two is the best for low hanging fruit is because all these guys are under water and they're looking to get out the next day, right? They're looking to get out the next day. So so like a lot of people have already gotten out. So if this pops, there's probably going to be like less sellers necessarily to force it back down and it could just pop and have like no range, especially if it's low, low, low volume. So yes, like a day two, like the thing is if this pops all the way, like, you know what I mean? If this popped like a solid to 250, 60, I'd short that, right? But yeah, day two is the best. All right, guys, I will see you guys tomorrow.