 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, Tosh, 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. Alrighty, June 2nd, 2020. We are officially in the summer. It's hot, hot, hot. I am down here in Texas sweating like a gypsy with a mortgage. Are we shorting ZM? That's a great question. That is a great question. I actually haven't had the opportunity to look at the earnings. So we're actually going to go into ZM today. We're going to go into Tesla. We're going to go into Beyond Meat and we're going to go into VTIQ and a little bit of ZS and then probably some work as well. So pretty much all the tickers you see on my screen right here, yeah, that could be a very, very, very real possibility, Mario. I actually think a reason why spy is up is because we're not continuing to see a massive outbreak in COVID, even in the protests, right? Because we're not out there staying six foot away from each other, okay? Not everybody's wearing a mask. Not everybody's wearing it. And just to be frank with you, the masks don't do shit, okay? It keeps the sickness in, right? But it doesn't prevent it from coming to you. So like somebody sneezes inside their mask, like what are they going to do, right? What are they going to do? Wipe it, touches their hand, touches you, done, infected, you're fucked. Zombie apocalypse coming. All right. So let's just on a very basic scale explain what an opening range breakout is, okay? An opening range breakout for me is defined by a daily resistance, okay? Let's say for example, this is like Tesla, which was 870, like this level was 870. Oh boy, that's hard to draw with my touchpad. So that's a zero for all of you wondering. There we go. All right. So this is an opening range breakout, all right? We get the push in the morning, rejection, retracement, ideally a second test, and then the break, okay? What are we doing? I'm not doing anything, okay? I'm just sitting here. Then we get the pull and then we get the real move, okay? Then we get the real move from there, all right? Because what happens, all right? What happens? What do we establish? What do we establish? What? Range. Can't draw. Can't write with this fucking touchpad. My son writes better than this shit. Oh my God, that's hard. Okay. Wow, that was difficult. All right. So we establish a range, ideally, and what we talked about is it happens before 10 a.m., okay? The break happens before 10 a.m. Sometimes before that, sometimes before that, the break of the range occurs before 10 a.m. Let me show you a different example here. A lot of people confuse this, all right? A lot of people, yeah, exactly. It's like, dude, I've seen construction workers write better than this shit. That was fucking terrible. That was horrible. All right, here we go. We'll use the text box next time around, okay? Again, here we go. 870. Ha, look how much better that looks. Now, let's take a look at what a first bounce looks like. A range is broken, okay? No, no, range is not broken. Range is not broken. There's no fucking range. It's just a break of resistance. It's just a break of resistance. It broke above resistance, and so what do you think it's going to do when it comes back to resistance? Prior resistance should become support, right? So when it breaks, well, okay, what is it going to do? Bounce. Is it the first bounce? Wee, there we go. Novel fucking concept, right? Novel concept, but here's the thing we're learning, okay? Here's the thing we're learning here. Does it matter what the fucking setup is? Does it truly matter what the setup is? Or does it matter just to pay attention to the lines? What matters more? The setup or the line? Because without a setup, I can still trade a line, right? I don't need to know a fucking setup to trade a line. I just trade the fucking line. But if I'm over here trying to memorize all these patterns, and I'm like, okay, that's a loop-de-loop mixed around with a squirrely queue. Put the squirrely queue and the loop-de-loop together, and you get nothing. When it's not at a fucking technical level to enter, you get jack shit. Nothing. You get nothing. Without a line, there's no fucking trade. There's no trade. Sure, you can justify in other areas what you should be doing. But if there's no line, there's no trade. No line, no trade. No line, no trade. No line, no trade. No line, no trade. Fucking write a t-shirt. Here is the difference. I'm going to show you guys chart examples of this. I'm going to show chart examples. That way, I'm not just drawn with crayons here. First test is support, then you get the bounce. This is the bounce you're selling into. Just like the first bounce strategy. Just like that strategy. Bounce, sell into this push. Sell into the push, into the second push. First push, first bounce, and then sell into that. That's it. That is it. First push. You sell into the push. Sorry, second push. First push off of the bounce, if we're being technical. This is a big difference. Knowing the setup, though, knowing the setup does not help me enter. It helps me hold. Knowing the setup helps me hold and adjust my targets accordingly. That is all the setup does for you because past history will repeat it past history. If that's not fucking oxymoron, I don't know what is. That was dumb. If history repeats itself in the market as it most of the time does, then you'll be able to understand where the setup could possibly go. Not how to enter, not how to get in it, not how to get profit out of it, but where it could eventually go is knowing the difference between an opening range breakout and a first bounce. A first bounce does not continue very much. A first bounce is not an all-day type of play. Opening range breakouts, like true opening range breakouts, are all-day trenders. All-day trenders. I'm going to show you where I messed up on Tesla today playing an opening range breakout. That never really came. Never really was there. All right. Here we go. In tracking opening range breakouts and how I'm tracking for myself, when I feel there an opening range breakout, I felt Tesla was an opening range breakout. I tracked it. It turned into a loss because in truth and reality, it was more of a first bounce than anything. I justified in my mind that it was an opening range breakout. In hindsight, it was a first bounce and I missed selling into the push. I missed selling into the second push. Instead, I was holding for an all-day type of play. I was like, fuck yeah, Tesla's going to 950. Let's fucking do it. I was like, lit, as Sam would say. Sam's around. I was lit, bro. Anyway, that is a big, clear difference between the two. Let's just categorize these. This is a first bounce. This is a first bounce. It's just a break of resistance that turns into support. We play the bounce. This is an ORB or an opening range breakout. Best ORBs are on 52-week breakout on earnings beats. Yes. Couldn't agree more. Couldn't agree more. I do like that setup. However, BYND had a really good opening range breakout on day one. Tesla had a really good one yesterday, not at 52-week highs. For me, if it's not at 52-week highs, I just love that it will have, if it has a high short float percentage, because then shorts are just going to start tripping all over themselves and it's going to create an easier squeeze and it just starts to grind, like giving no relief back to VWAP. No fucking relief. Just all day grind. How do you exit at 50% just keeping track of the option or do you set that once you're in the option? I set it once I get in and I may risk 50%, I may risk 60%, I may risk 70% loss. It just depends on chart and how volatile the option is. I was watching one of your videos the other day and you were paper trading options. Yep. Not recently. Not anymore, obviously. I tried that in the beginning just to get used to it, but I very quickly moved away from that and then just started using one contract and then slowly scaled up from there. It's all the same. Just got to understand the leverage. Anybody that goes to a new strategy and doesn't paper trade it first is an idiot. I'm just going to tell you up front. Somebody that has an algo that they're about to release in the market, do you think they're not going to fucking paper trade it first? They are definitely going to fucking back test that shit and paper trade it hundreds and hundreds and hundreds of times before they release it live into real money. So I highly recommend people paper trade in any situation.