 All right guys, well, we'll be getting started in less than two minutes, just like to kind of do a quick little intro here at Cybertrain University. This is the May cyber expo, we've got three great speakers, including myself at one. We've got Norman Hallett and Tom Busby coming up, Norman's going to be coming up first. This is something that we do every month. We do a cyber expo, we get some of the greatest masterminds of trading to kind of give you the feedback and everything is more or less totally different as in the education goes because you're going to have somebody's going to talk about stock trading, which will be me, you have Norman's going to talk a little about discipline, you have friend Tom Busby there, he's going to talk a little bit, a lot about regarding about futures and options. So, but you're going to kind of get to understand that when it comes to trading, you all need to know a little bit about everything because as much as you want to go out there and you want to learn how to trade the market, I know some people have a favor and like, oh, you know, like it doesn't fit in my schedule or I like this because I spent all this money to learn this and I don't want to make that one work, you know, I got to make this one work or I can just, you know, I just want to hear, or I'm just a professional freebie taker and say, hey, let me take all these free lessons from everybody and they'll tell me their secrets and let me go out there and try to do it on my own and, you know, we all know how that ends up. So listen, there's a lot out there that you guys have to understand that when it comes to trading, I know everybody wants to trade, doesn't mean you should, OK, and that is the issue when it comes to trading. Everybody goes out there, they try to trade, they get themselves in trouble and don't understand that there's a psychology part of it. There's a discipline part of it. There's also a strategy behind it, you know, but you'll notice that a lot of us trade roughly about 70 percent of the markets. They all trade about the same, OK. The only one makes 30 percent different. It's just a different market, you know. But but I was just on I was just on a, you know, on event with timing research with Norman Hall of actually on Monday. And, you know, the conversation did come up, you know, regarding about discipline and psychology. And Norm is going to talk a little bit about that where, you know, everybody doesn't know how to lose money. You know, I have an old saying and it seems like it's getting more popular by the day, but losing money is actually a very good thing. And the reason why it's a good thing, because we know why you lost, you're not going to do it again. It's like a divorce, you know, you know, we marry for love first, you know. But then we didn't realize like, wow, this is great. And next thing we find out that I can spend next 50 years with this person after going two, three years in a marriage. And, you know, divorce is a very, very expensive, you know. So if you knew that from the beginning, you might have probably took it a little bit more seriously before you actually, you made it. And listen, I love marriage. I've been married for over 20 years. I've got three wonderful sons. I'm very fortunate to marry a great woman. But for some of us, we know that, you know, we get married for the wrong reasons. And trading is exactly the same. You go out there and you try to trade and you're looking at something because, oh, you know, I want to jump into Uber or because I heard it's public, I just used yesterday. Oh, what's going on with Amazon or Facebook? You know, there's a whole world out there. There are things that you're qualified to train as things that you're not qualified to trade, and that's where the discipline does come with it. Now, I don't want to take too much time, but it is 11 o'clock and I want to get right into it. And I want to introduce our first speaker. Now, let me tell you a little bit about Norman, OK? I don't know if you know this guy, but he's been doing this educating for almost four decades. He's 40 years. He told me seven years old, 70 years old. I'm like, you know, I mean, that's 70 years old. You're like 50. He's like, no, I'm not old. I'm like, I don't know what the hell you're doing yourself. But were you getting that magic juice, the fountain of youth? You got to pass it on to me because I mean, I got my hair, but I'm just starting to go gray. But he's been he's been around for a long, long time. I've done so many events with him. He's, you know, not only is he entertaining, he's very educational and he cares. And that's why we like to have Norman to come out come out here. And he's one of the pioneers that started this before most people ever would ever touch this industry in general. But but he does have a very good niche where if you're a futures trader, a forex trader, an option stock trader, you can kind of apply everything he's doing because a lot of it is discipline and the psychology part of it is so difficult to succeed when it comes to trading. But, you know, like I said, he's if you ever get the opportunity to meet him in person, he's the nicest guy. He cares about everything. He always wants to work, you know, help people out. But it also in not only that, but he also makes an investment in his in his in his preaching. I mean, he'll go out there and he'll and here's a guy I know that he'll even spend money and take education for other people. Because remember, great traders never stop learning, you know, and we'll go out there if it's taking a Tony Robbins class, wherever it is. The whole point about it is that we love what we do and great education never stops. So without without further ado, which Norman always loves that word. He always abused me about it. But without that, I want to pass it over to him. He's going to talk for about an hour and, you know, just sit back and enjoy ladies and gentlemen and, you know, stage all yours. Norman, go ahead, go knock them dead. Thank you, Fausto, for the terrific introduction. I hope I can live up to it. I want to thank you for having me here. Let's also thank everybody for coming and being part of the presentation. I think you're really going to like what's going to happen in this next hour as well as the next couple of few hours. My presentation is going to be on six effective ways to play stops. That'll be the beginning of the presentation, where I will show you a number of different ways to play stops. There are no perfect ways to play stops. I mean, if you think about it, play stops is just a way to get out of something that's not working out or in any case, of course, preserving a profit. But in generally, it's a defensive posture. So sometimes it seems that there aren't very good outcomes when you play stops, you get knocked out and then it goes without you and so on. But there are necessary evil in the in the trading world because you need to prevent yourself from taking a large loss. That's the most debilitating thing when it comes to the mental and emotional issues of trading. And of course, as Fasta mentioned, my my my focus has always been on the mental and emotional issues of mental and emotional issues of trading. If you think about it, 91 percent, 92 percent of traders don't make money. They lose or they stay the same. Most of them are losing. Only six, seven, eight percent are making money. And when I go to large venues and speak and so on and over the years, over the decades, I've also noticed that it's probably 91 percent of traders who don't give any mind to the mental and emotional aspects of trading. So I put the two together. I think if you start paying attention to the mental and emotional aspects and having a trading plan that respects your attention to mental and emotional aspects, then you're going to do a lot better and actually making a living from this in many cases. So my focus, as I mentioned, has always been on the mental and emotional issues for decades. And then what happened was that I realized I was helping traders to be disciplined to trading plans that were just lousy. They didn't have any risk management posture and no real control to the trading plan, poor execution methodologies and so on. And so I decided I would choose to make simple trading plans. I've always been into simple trading plans. I'm a guy that likes to make as many trades as I can. I believe that that when you get a trigger the way you want it, you want to take advantage of as many of those as you can. I mean, in a 70, 30 world or 65, 35 world or whatever it is, wins to losses, you're much better off, I believe, in making as many trades as you can and getting through to the next trade, getting, taking the next opportunity. Of course, not curtailing a profit when it's running for you. I'm not talking about that. I'm just saying that if something is not working out, I'd rather exit and go to the next trade, as well as operating a simple trading plan, one that doesn't have so many screens that I don't make it a trade every two years on it. So I'm, that's my thing, mental and emotional control and making the trading plan simple. And at the end of this presentation, I'm going to give you a simple trading plan that you can work with. I think you're going to find a very, very, work very well for you. And then I'm going to invite you to be a founder of this particular simple trading plan that I call Loaded Gun. I want you to, I'm going to offer you to be a founder at a ridiculously low price that you may want to be involved in as we even move further into this trading plan to tighten it, tighten it, tighten it. Even in its skeletal form that I'll be showing it to you, you're going to see some very impressive results, but I'm always looking to be even better and better. And so that's what it's going to be all about today. So let's get going. There are six effective ways to play stops. What you're looking at here is me on the left. And that's my brother, that's my twin brother, my late twin brother, Bob on the right and my older brother, Dan in the middle. He's a year and a half, I'm sorry, he's 13 months older. And just to give you a little background on me, I'm smiling now just like on that picture on the left. I was born to a parents that just my father was in World War II and he got home and they had kids. And here we are, we lived in the living room of my grand, my father's parents' apartment for two years. The three of us and my parents living in my grandparents' living room. They said my mother lost her sense of humor during that period of time and you could probably understand why. But I got a very close family. There's another brother that came eight years after me and my twin brother, so the four of us are terrific buddies. Of course, I mentioned my twin brother Bob passed away which I still think about every day. He was the good twin. So you're being taught by the other guy today. But then when I was 31, I finally got married, I stopped, I was in the nightclub business and the restaurant business in the 70s. I went ahead in 1979, I joined an auction firm and started selling Makata Metals Corporation options. This is before exchange traded options on the physical metal, on physical gold and silver. Makata still is the largest warehouser of gold and silver in the world and I think the large, independently held corporation in the world, the gigantic. And we used to sell options on their metals before exchange traded options. Anyway, years later I ran that firm until 1988. I was a regional vice president for them and had 60 brokers under me and so our job was to do as well by the clients as we can in the world of gold and silver. But in 1981, a couple of years after I started with that firm, I met my wife and of course I was trading during that period of time. I helped the brokers out and then I'd go back in the upstairs and that's not trading. It's where I got my first experience trading but I was all over the place. My wife happens to be a subconscious trainer and the discipline trader, she's the one that supplies all the content, helps the traders with me on the mental and emotional issues, helps you to put into your head the things that she should be thinking about when you're trading and your own self-concept as a trader. But it was her that turned my trading around and that's why I wanted to bring it to the world and started the whole thing 20 years ago the discipline trader. But again, as I mentioned, the discipline trader had an issue with helping people stick to religiously the lousy trading plans. So a couple of years ago I decided to have a new focus along with my old focus and that's simple trading plans. And again, we're gonna show you one at the end but Tisha turned my life around and hopefully you have somebody in your life like we've been married not 38 years. And we do other things. Every trader has to have an outlet. You can't let trading control your life. You have to, trading should be part of your life not only controlling your life. What you're looking at are, we raise butterflies which we raise monarch butterflies and what you're looking at is a bunch of caterpillars, monarch caterpillars that after they make a chrysalis 10 days later, they turn into these butterflies of which we dry out in these little cages we have. And anytime you come to my house about one o'clock in the afternoon, we'd be glad to have you help us release these butterflies. They can jump right on your hand and then they go. So, you gotta relax as a trader because the trading is intense and it takes a lot of focus. It may seem like all you're doing is buying and then selling and rooting for it in between. But as you're adjusting stocks and doing things along the way things are, you know, they, they, they, it's stressful. Come on, we all know that. That's why we're here. I guess to also to help eliminate some of that stress. So let's get into the six techniques that I wanna cover. And then I wanna kind of show you an application in the simple trading plan. The Bollinger, but I'm gonna show you more than six and I'm gonna go through them because, you'll see why. The Bollinger Bands is getting to be more and more popular. I just learned about this a couple of years ago. The future features of the Bollinger Bands trading plan or a stop, a stopping methodology is riding, it rides the favored side of the middle band. In the Bollinger Bands, you've got the two extreme bands Bollinger Bands metal, it's a volatility measure. And as the markets get more volatile, the bands expand. I'm gonna show you that in a second. And then there's a mid band, the average of the two bands rides in the middle of the two, up and lower bands. And it's that middle band is the break point. You ride the band, you ride the price until it crosses the other side of that mid band. The problem with the Bollinger Bands is as with many stopping methodologies, it's a little tough in ranges. There's only, ranges can be tough to place stops in and this is not as effective as it could be. Here's a chart for the, this is a chart of WTR, which is Aquamarica. It's a water stock that I, the methodologies that I teach you, whether it's simple trading plans, the stopping procedures, they all work on any market, whether it's stocks or futures or forex and they work on any timeframe in all these cases. So here you have the WTR stock moving around. It doesn't really matter the price. And we're just looking at the stock itself and the movement in price. Each bar, of course, I'm assuming here that you're familiar with the candlesticks and red meaning that the, that we closed on the low of the candle and if it's red, it closed below the open. If it's green, it closed above the open. But this blue line is the outer, is the upper Bollinger Band and this is the lower Bollinger Band in red. And this white line is the midline of the Bollinger Band. So, as you can see the drop here happened, you had a consolidating market here. So the bands were not far from each other. Once this thing dropped, the Bollinger Bands gave you room on both sides of the midline, of course. And as the market tends to tighten up again, the Bollinger Bands will come together. So generally you're looking for channels like this when you're trading via Bollinger Band and you're waiting for a breakout and a widening of the band. So this would be an area where I'm sure a lot of people got caught. This is probably a report that came out or something. This is not, this is normal for that kind of, this is a look that I'm seeing here. It's not really normal for it to, without some tremendous news where it closes here and then opens down here. But assuming you're looking for a spot to get into a trade, let's say the market gap down and you wanna get short here. Okay, you're getting short in placing your stop. You're going to be placing your short here and you're placing your stop on the other side of this midline. So in other words, wherever the Bollinger Band, wherever this midline is, so you're here, so you'll be placing your stop up here because all of this, of course, didn't exist when you shorted the market here. You'd be placing your stop here. And as the market came down, you'd be moving your stop with each band above, in this case, whatever bar you're looking at, you'd be moving your stop. When you got to here, your stop would be on the other side of this bar. Well, as the market moves sideways, the Bollinger Bands are coming together. And so, of course, the midline is getting nearer to your pricing. And at this point, right here, this small red dot here, from here to here, at this small red dot, you'd be having your stop. You'd be stopped out of this short trade. And you can see, here's another long trade. If you got in for whatever reason here and rowed this up, you would be breaking the band here. We're breaking the midline here and therefore, you'd be out of your long trade at this point here. So it's a simple way of having a stop, but it respects to some degree the volatility of the market, but it can whip you around a bit. When you see action like this sideways, it's always good to think about tightening up your stop because if it breaks in the wrong direction, and this Bollinger Band actually did that for you by coming all the way down here by that time. So that's what this Bollinger Band is about. I would say that as far as distance from the midline, give it a few ticks. One thing I will state right now is that if you're dealing with where to place your stop in this particular case, how far above or below, I mean, how far above the band in this case, a couple of ticks, 10 ticks, that's up to you. I like to give it a little bit of room, five, six, seven, eight ticks increments, a tick increments. I don't like to make it one tick because it is too easy to get knocked out. Now, neither one, I've seen successful traders do the one tick thing and that's fine because really you'll get stopped out more but if I'm widening my stop when I get stopped out, I'm gonna lose more money. So in the very long scheme of things, it tends to even itself out. It's about your own ability to stay positive and it's your own ability to keep what I call a positive expectation. If you find yourself getting knocked out a lot or if you take bigger losses than the smaller losses and that makes you feel horrible and somehow it's ruining your canther in the market, then you wanna tighten yourself. You may wanna think of not taking so big, taking more losses but smaller losses. You've gotta figure out what you can handle and what you can't, what keeps you positive. You gotta stay positive when you are trading. So let's continue. The second, this is the Fibonacci level which is one of my least favorite, although it's used by a lot of, especially those that are math oriented and I'm math oriented and I have, my degrees are in math and somehow though, I find that Fibonacci wants to be exact but seldom lands on the Fibonacci levels and therefore supports that makes sense in the long term. I don't use it but a lot of people do, so I'm showing it to you. Fib can act as a support or resistance level during a trend. Stop loss methods, this particular for stop loss, this particular one also doesn't work in ranges very well. I will show you one that will and that's mostly the pattern types but let's take a look and these lines, I'm sorry these are a little hard to see, I'm using a different presentation vehicle, I'm on a different computer today but don't worry too much about it other than knowing that these shadows of lines here are Fibonacci retracement points and you probably have used them before, the ones that are popular are 0.38, 0.62 and the 50% line, in recent, you've got a 73, I don't use them in 23 but what happens is you see this movement up here, this move from down here to up here, the length of this particular up move and then all of a sudden you have a corrective action. You say to yourself well how far is this correction action gonna go? So what you do is you take your tool and you start at the bottom of the run and you go to the top of the run, you let go of your Fibonacci tool and it plots these lines for you and you're looking for the market to stop at one of these lines and then look for a trigger for continuation in the right direction. In this particular case, if you look at this level right here which I believe is the 30, looks like the 38.38 level and these are, you can't see it but there are wicks that come and hit that line. They don't always, but I showed you one that did, sometimes they'll drop a little bit below or a little bit above but the idea is that you need to look at this level as a level that you're going to have some support in on the way down. It certainly didn't give us support at this upper level here but it did give, it looks like after this steady area here, market drop came up, came back down and now it tested it again here and survived the test here. The fact that you have two bottoms here, you're gonna be whispering double bottom to yourself and you'll probably take a trade here. When you take that long trade here then you're going to put your stop a few ticks below this Fibonacci level, wherever that may be. If you have a wick that came below that level here, I would adjust that to a few ticks below that wick level as long as it's not too far different than the Fibonacci level. So, and as the market moves higher you're going to move your stop up to in whatever way that you want and I suggest two bars, not one bar. A lot of traders like to put it below one bar and as the market expands, you put it below one bar and then with this tail, you would have been knocked out of this trade here as you would have had it below this bar and you still would have been knocked out with two bars in this area someplace here. So, you want to trail your stop but your initial stop will go below here. Now that's the Fibonacci, this is a subtly, but I don't want to confuse you if you're not used to Fibonacci. You can study it and deal with it but again, it's another support level. You're going to defend your stop on the opposite side. Okay, moving averages. Somebody did comment here that moving averages with the way they like to use their stops. And it can give you a lot, the thing about it is it can give you a lot of waiting for a break of the moving average. You can give up a lot. In other words, and that's true of a lot of stops as I mentioned. The market will back up and if you've got a deep stop you're going to give back a lot of your profit. So, which is why I give you this nuance. This is my first nuance. It's a nuance in all of this. I've made four simple trading plans. I'm trying to make one every few months. This is again, the latest one is a loaded gun which is the best one so far. And but I want to say that you want to start with two positions. You want to initiate your position with at least multiple positions which is the minimum of which would be two. Okay, because in any trigger, whenever you get in on a trade, generally you're getting in on a trigger that really means that the market is about, as a reason to go up, it's decidedly gone up because of some indication. Either volume or whatever you use. That fact usually makes the next bar or two in your favor. I say take some profit in those bars to put a little in your pocket and then manage your remaining positions even if it's just one position in a two position approach. Okay, so I give you that because I don't want to leave without mentioning that. I can't tell you how much you'll improve your trading results by trading multiple positions and peeling off the first position on the initial move, on the initial reaction to that trigger, okay? So in moving averages, you want to watch the moving average slope to avoid a false change of direction. I'll show you what that means in a second. Mostly when I give you the simple trading plan, that's something we have to watch because that simple trading plan uses a moving average. So using a moving average to set your stop, it's dynamic, it moves as each bar goes, you're moving your stop because it's moving average. And you gotta give it some room because moving average really is just an average. What I like to use exponential moving averages is because exponential moving averages gives a little bit more weight to the more current bars. So when you're using moving averages and you're using it to place stops, I suggest you may want to try exponential moving averages for stop placement. Okay, here's a, this is overstock. It's a stock I follow because it's really in the Bitcoin world. They use the underlying technology that they're, believe it or not, and it's kind of moves, it did for a while, doesn't really anymore use it with Bitcoin. But here is, let's say, this is three moving averages. This is the 200-day moving average. This is the 50-day moving average. And this is the 20-day moving average. So just different moving averages that I always have on my charts and I just clip this one off. Let's take the 50-day moving average. Let's say we're working where we're, well, if you're using it as a stop, you want a moving average that hugs it fairly closely. Now the 20-day moving average may not be enough for you. I find it good. This is a daily chart. So I think the 20-day moving average makes sense. If you have more risk tolerance and you want to use a 50-day moving average for your stop, you can do that. But the idea is that if you use this closely moving average at 20, then you're staying with the moving average. And if it crosses on this side, the opposite side of the moving average, you were looking at a downtrend. So here we are above the moving average. You would have been stopped out with a close stop. If you kept your stop considerably away from the moving average, 10 ticks or whatever, you may not have been stopped out here. So you've got to find the right medium for yourself. Again, matching your own personality. But you can see how the market, when it's going strong, will honor that moving average. Here's where you would have been stopped out and not involved in what's happening here. Here's another short trade here. Here's a long trade using the yellow moving average where you would have got, this is a nice trigger right here. I'm gonna talk more about this trigger later with a very small body or doji followed by a dramatic move in the next candle. That's a big time signal, one of my favorite signals. And so you would have gotten in here. You would have put your stop underneath this moving average and kept it under the moving average as this trade matured. And gotten stopped out here. So you would have gotten in here and you would have gotten stopped out here. So you would have had from here to about here. Not a huge trade for all this time that you spend. But I will say again, that if you follow my nuance here and take two positions here, not one or multiple positions, three, four, five, whatever it is, whatever your count size can stand and liquidate one of your positions out of two or one out of three on this first thrust up. Get out of one here. Okay. Well, you're gonna wind up singing and if you do this, you're gonna wind up singing that many times, not all the time, but you know, 25% of the time, you're going to spend a lot of time managing the second position and get out at the same price that you took this other one at. So one of the trading plans I'm working on right now is just a matter of taking advantage of these thrusts which come often. And then moving on to the next situation with the thrust. But don't go doing that until I've tested it and so on. I'm just telling you that the idea of using multiple positions and peeling it off, I think is an idea you need to think about adopting. Okay. Now doubles your risk from that standpoint, but if you're doing it on a trigger, you know, here's another trigger type formation, small body at the top of almost looks like a shooting stars type thing, followed by this candle leads to another trigger. So this is a really good trigger, not to worry too much about it. Now, when you put your stop in, you know, you're going to want to, if you're using a trigger like this, you want to put it on the bottom of the trigger formation. I'll show you more about that later. Okay. So that's what the moving average stops are all about. Here's the fourth technique, price formation and price patterns. I'm going to move a little faster now because I've got a lot to say here. It really goes by the book, beware of stop-loss, you know, people look at flags and head and shoulders. Traders are constantly picking off, you know, they call them stop-loss hunters. I don't know if they actually exist or not, but it certainly seems like they're out there doing it. I know that there was some trading plans by some very negative people that are trying to take advantage of that, knowing people are going to put their stops on the other side and a very strong move based on other indications and they just pick people off. In any event, I'm not sure that's even, but the idea is that you got to give all stops a little bit of room. Let's take a look at some penance and flags. And this is not the perfect chart probably to do it, but I didn't want to spend a whole lot of time on it other than to say, you know that we have flags when you see a, you know, a flag like this, where you have a consolidation of some sort with a line moving higher and a flat top, more of a flat formation on the top. When you see a break in that pattern, you go with it and you put your stop at the opposite side of the breakout line or break down line in this case. So you'd be putting your stop up here and as the market matured, you'd be following it one or two bars. Again, I'd recommend two not one. And so that's all I'll say about that. Here's more of a channel right here or a pennant where you see it started to go sideways, you join the bottoms. Now, there's a, you know, whether you use the wicks, ends of the wicks to join your lines or you use the bodies, I try to use bodies a lot. I use them both, I had to change them if you really want to know the truth. I think that there's, you know, I think there's some intelligence to both. The idea is that I think once you decide to join one for a certain approach, stick with it. Don't go moving it around and moving your stop just because it broke the body and not the wick line. Make up your mind. It's like whether you should take a hit in blackjack or not, you either always do it or you never do it. If you start mixing it around, you're gonna hurt yourself. So here's a band that was formed, the channel of flag that was formed or a pennant, I guess. And it looks like we had a bit of a false breakout here. And if you had to just stop too close, you may have been stopped out with a small line, but you had another breakout here and another stop out. So this didn't really work very well, but you had some nice close stops maybe. And if you didn't have a close stop and you had to stop closer down here because this is a small channel, you could probably put your stop just above midway. You would have been in this trade all the way until we reached, this looks like a head and shoulders. I've given you the arrows, shoulder, head and shoulder here and so, and you draw your neckline through the bottom of the beginning of the first shoulder and the end of the second shoulder, which was at the bottom of this where I drew it. And if it breaks that, you're going to initiate a new trade. Well, if you initiate this short trade here, you're gonna have your stop above the neckline. So it's whatever training formation you're looking at, you're putting in your stop at the other side of whatever breakout line that you used. Okay, enough about that. And here's a, well, I guess it's not enough about that. I got another chart here, the soy, the soy tends to, I find soy tends to work well with flags and pennants. I'm not showing you any breakouts here, but I'm just showing you how in this particular case, I use the wicks to draw the line. And here I use these two wicks and then I, because it seemed to be coming down the market and see these two wicks were formed, this one here and this one here. So I drew the line, maybe looking for some sort of a thing that never really reached. So as we came down and spent time, I decided to make another line. Here's where he starts creating a fan, which is something that I tend to do that traders with experience will tend to do. And that kind of gives you another target up here. If you do go long here, you can have another, you have a target to maybe take a partial profit and what may be a resistance up here. So some of these lines could be useful in other ways. I'm just kind of showing you that. All right, trend lines and support resistance. Technique number five. Very popular, probably the most popular. So it's a self fulfilling prophecy. I don't know, but I tend to think that it can be. So again, use a little room to put in your stops. Again, drawing trend lines is subjective, suitable for ranges, this particular, and you'll see why it's easy to see. And support flips into resistance. That's what support resistance flips. I mean, here's the S&P market. It's a recent contract. You can see the fall that we had in December and then this movement recently. And you can see that once these two, now of course this part of the chart didn't exist when this top happened and this top happened. So I drew the line. So happens that it really gave me a nice indicator here. This is an obvious trade to take, of course, because you've got a, I usually wait for closes before I initiate trades. I always wait for close. So here's something that was a shooting star against a resistance area. I mean, that's a short trade if I ever saw one. So at the end of this day, the close here, the open and the next day with confirmation, you're shorting this market. You'd be here, you'd have this market all the way down, then you'd be putting your stop above this, above the resistance area. So if it breaks resistance and moves high, you'd be out. But quickly, once this bar happened, again, that formation, I really liked the small head, like almost a doji in this case, a shooting star followed, indecision followed by a major decision. And look where it leads, led all the way to this down here. Now, what happened is, once this happened, again, this didn't exist. We got a bottom here. I connected these two bottles. So I got two really nice support and resistance lines that look, look at this, worked out really well over here, gave us some action over here. So these, you know, as you extend them out, they still have meaning because there's a lot of people with defended positions here for the very long term and defended positions here. They'll defend them even later. What I mean by defending is, I'll talk about that some other time. But, so here we had a pulp below, but it closed within. So, you know, you're still short. But if you were looking to get short, you wouldn't be yet here. This would get you short if you had no trade on. And then you'd be putting your stop up here. If you had put your stop up here and did what I suggested, waiting for a major move on the downside to take out one position, you probably took a little bit of a profit here, maybe waited till it got to this resistance on the way down here. Maybe it took out one position here, a second position on a three position phase here and then waiting for what I call lewd and lascivious for the rest of it. So it came down and you did very well on this and you're either trailing it with one position or two. Same thing on the way up, we had a hesitation here. So, you know, support resistance, pretty obvious, but I want to get to one that isn't so obvious. This is another one in copper where we're kind of jumping up in time. So I want to, again, this is a trend line connecting bottoms. And there's another way to move your stop. If you were in on this particular, let's say you're in on here on this movement, you drew a trend line, market came off that you drew this trend line because you've got in on this formation here on this jump that took out this high, you're long here. Now you're going to put your stop below this trend line that you drew connecting these two bottoms and you're moving your stop, you know, as it comes up along the trend line. One other way to move the stop, once you've got the initial stop in here is to look for these swing bottoms. When you see another swing bottom, then you would be moving your stop from here to here. Another one, this didn't look like, this started to flatten out here. So it would have been out over here anyway, more than likely when the trend line broke. So I like to continue, if I'm using a trend line stop, I like to continue with the trend line because really these bottoms are only going to hold usually if they honor the trend line anyway. So, all right, average true range. I want to state it and then I want you to play with it after this is all over and you hear all the speakers and so on. You're using an average true range. Somebody showed me this couple of years ago, I just think it's genius. Average true range really respects momentum and volatility. So you set it to 14, which is the default setting for average true range. And you want to have a new calculation and I'll show you that calculation with each high or low as the move expands. Okay, let me show you what this means. Here it is, I'm going to have to state it to you. So you write it down. Again, it's very simple. I don't do anything too complicated. But here's a chart, just look at the chart real quickly. You can see that maybe you've done nothing up to this point but at this yellow arrow, this could have been a trade. I mean, you're watching this level right around here where I'm drawing the arrows, holding held here, held here, held here. Now you've got a double bottom, you see it's holding here. This is a nice place to take a trade. So, I mean, you couldn't join a support and resistance line here, taking the trade and put the stop under here somewhere. But here's how to do it with the average true range and I like it because it respects the volatility of the market. Here's the formula. You take the close of the entry bar. Here's your entry bar. You take the close of the entry bar, which in this case was 147 and 1530 seconds. I probably shouldn't use bonds because we're in 30 seconds. The math is a little tough, but this bar closed at 147 and 1530 seconds. Well, the average true range during that bar is right here, which is 0.3650. If you convert that to 30 seconds, you're looking at 1230 seconds. So it's 1230 seconds is what the average true range is here, 0.3650. So you double that. So now we're talking 0.730, okay, 0.73. You double the average true range and you subtract it from the close of that bar. So the close of that bar was 147, 1530 seconds. We're subtracting twice 0.365, which is 1230 seconds, so it's 2430 seconds. So 147 and 1530 seconds minus 2430 seconds is 146 and 2330 seconds, which is right here. Really a nice place to put the stop. Happens to be right below this wick, but it's a nice place to put the stop and it honors the volatility of the market. So when I say move to stop, when you get additional hot, here's a meaningful high. Nothing's no reason to change your stop here and then boom, we have another stop here. So let's do it again, let's move our stop. In this particular case, the closing price here is 148 and 1330 seconds. 148 and 1330 seconds. We look at the average true range during that period of time and it's 0.44, which is roughly 1330 seconds. So twice 1330 seconds is 2630 seconds. So again, you double the average true range, subtract it from the close of the action bar. So in this particular case, we've got an action bar for, so 148, 1330 seconds minus 2630 seconds is 147 and 1630 seconds, which is right here. So you can see how that's nice. Now, what's interesting is, it's almost the same distance from the close of the bar and here it's the same distance, but we have a higher volatility. You'd think that it would be further away, but remember, we're measuring it from the close of the bar which happens to be way up here. There's a big candle. That's why this line hugs it a little bit more, even though it's a higher volatility. So it takes a lot of things it can tap. Here's another into account. Here's another bar that I felt was meaningful. Well, it took out these highs. So you'd be recalculating here and you'd be setting your stop here after that recalculation would be stopped out in here. So that's kind of a nice trade. But again, if you took my advice and the nuance and the multiple positions you got into here, you took a profit somewhere in this bar here as it expanded. When I take my profit, I like to see it expand an equal distance to my entry bar because I like to get in on expanding bars if you're saying, well, what do you mean by expanding bars? Somewhere when I see it's about the size of this bar, I'm looking to take profit. I'm taking it and then moving on. So I'd probably take my profit somewhere in here and then you're managing the second position. Try this average true range bar. I think you're really gonna like it. Really gonna like it. Okay, I promised you, well, I wanna show you just the last slide. Under the last swing low, we talked about that for other stopping techniques, a time stop, if something's not happening, if I get five bars in a row that are going sideways, I'm looking to draw a band around the top, a line of support and resistance around that range of sideways movement. And I'm looking for a breakout one way or the other to keep me in or keep me out. But I'm looking to get out because it's not happening. The further you move from the action bar, the less that action bar has an effect. So money stop, I don't know if we talked about a 300, I mentioned if I use $100 or $10,000 as an account size, small account of $10,000, you don't wanna take any more than $300 risk on any trade. So is it smart to just set your stop at $300? A lot of people say no, I say maybe. There are some places where, and I'll show you a couple of those in a second, especially after jump triggers, what I call jump triggers, which is all I try to get in on. I don't have a problem with doing that for small accounts. It allows you to get into trades, it allows you to keep your risk at a point where you can handle it. And most of the time, some triggers will expand and you'll be able to actually take one of the trades out if you use my nuance of two or more positions, okay? And then two bars back. I mentioned as the market's going higher, put it at the low in the case of an upward move, couple of ticks below two bars back, okay? So here's the simple trading plan. This is, now we're gonna get really exciting because I just wanna spend about five minutes on this and then get you an offer. And in five minutes, I'm gonna be able to explain this simple trading plan. Okay, here it is. Oh, forget that. First let me explain it. The first line here has no meaning. I didn't erase that as you're making the slide for the other slide. Simple trading plan fits on one sheet of paper. Okay, it fits on one sheet of paper. Simple. It has one primary analysis technique and then a loading gun that I'm gonna give you right now. The loading gun trading plan uses a eight bar moving average, okay? It has a repeatable entrance trigger. I'm gonna show you that formation in a second. A trigger to enter on. It's got a defined strategy, okay? And it contains a complete contained trading strategy and it's customizable. I won't get into the last part so much here except for that's part of what the nuances are. I will say that if you go to the discipline, if you go to, I'm sorry, simpletradingplans.com, you'll see the three trading plans that we offer right now in a package for different kinds of markets. What I'm gonna show you today is a fourth one that I've developed over the last few months that I think could be better than the others. I think it is, maybe it's because it's the most recent one but I really, really like it and I think you're gonna like it in about five minutes from now. Because when you, in fact, after this, when you go home, when all of these, when the speakers are over and you start looking at this simple trading plan on charts, you're gonna want to sign up and be a founder of this because it's very inexpensive and I want you to be part of this because the release comes in June of this year. I mean, next month, June, is the launch of this particular simple trading plan, Loaded Gun, but I want you in before so that you can play with it and work with it and give me some testimonials that I can share with other people. So I want you to be successful with this and so that it can help in my own market. It's selfish. But you're gonna play one third of what everybody's gonna pay less than that. So let me show you what the trading plan is. Okay, here it is, here are your rules, Loaded Gun. First of all, the analysis that we're using is the analysis that we're applying is the exponential moving average set to eight, not nine, a lot of places have nine, 10, seven, eight, eight, eight, eight, okay? The trigger is a two candle setup. I've kind of mentioned it, a doji followed by an extended candle that closes above or below that moving average, okay? So the two candle setup, the doji followed by the extension that crosses the EMA, okay? Here are some clear examples of what I mean by those particular extensions, the two candle movement. So you have a doji, this is almost a doji. A doji is where it's totally equal. Again, I'm assuming really that you know about candle sticks and that the green bar means that the close is above the open, red means that the close is below the open, but open here, closed here and these, the wick, the stick below and above the horizontal line is where the trades occurred outside of the open and closing range. So here you've got, this means indecision. Here we opened at a certain place. We didn't range very much even during the day and we closed about where we open. They can't decide what to do with this market. Well, the next bababoon, they have made a decision and a strong decision. This trigger I find could be the best trigger around that I've found. And so I like to take advantage of this trigger. Okay, that's a buy trigger. Here is a similar version of the trigger. It's a little bit bigger range. I don't like this a whole lot, but the fact that it's got a very long tail on one side. If this is on the bottom of a run, the market's coming down, you've got a bottom of a run, you've got, this is almost a hammer. Strictly, this wick on the top wouldn't be there for a hammer. Thor would never accept this as a hammer. So I can't, but the idea is that it's a very small body and it shows indecision followed by a movement, a dramatic movement higher. Now I'd like this movement, I'd like this bar to be more dramatic. I would definitely like it to be more dramatic, but I can't, I don't, I can't have it any more dramatic than this because that's the way life is. So let me take that away. So, but the fact that we are coming off a long candle makes this more meaningful, the pulling away from the candle. It's kind of a formation that the market may be reversing. If this formation crosses the eight person, if this, the eight bar formation, then I'm in. Here's a cell candle, same kind of thing only on the cell side, small indecision followed by a dramatic decision. What you got to watch in a trigger like this is that this doesn't create too much of a risk because if you're taking a short trade based on this trigger, you're putting your stop above the formation. Okay, in this particular case, you're putting your stop below the formation, below the formation. So you've got to measure that because markets can reverse and take you out too and you don't want this stop to be below your tolerance level. Okay. All right, so here's an example of a setup crossing the eight day moving average. Here's your eight day, eight bar moving average. You've got a trigger here, small body extension followed by your extension of the move. But here's again, here's the perfect version of it. Doji movement here. When I see that, I move my stop from here to up here because now I got a new formation, a trigger formation. If it breaks this trigger formation, I'm out. So I used a repeated, that same repeat formation to move my stop. In addition, again, I'm taking multiple positions on the first extension, whether it be here or here, I'm taking out one position out of two. Let's say I do the minimum of two positions. I'm taking out here and now I'm managing the final position. Okay, I'm managing the final position and the exit strategy tells me the rules say if I get two closes over this line, two close on the opposite side of the line, that second close, I'm out. So I don't have that happening here, but I do get a chance to move my stop from here down to here because I see the formation again. All right, so the loaded gun exit rule again is when two bars cross on the opposite side of the EMA. So you wait for the trigger. If the trigger, which is the doji and the dramatic bar, cross an EMA of eight, then you're in the trade and then you put your stop in at the top of the formation and then you ride the EMA as long as it'll take you until two bars cross on the other side of it. Okay, let's take a look what that means. Here's a perfect entrance on, this is a S&P. Okay, here's a beautiful, this is the daily chart of the S&P. I mean, perfect entrance, small head on this big movement. So now you're in here with two positions. You're putting your stop down here. Market starts to move higher, moves higher and you're taking out your first position right around here about equally distance of here, probably taking it out here. Now I got one position I'm managing. No, I didn't cross the line, but maybe it did. I get, I zoom in and I'm really strict about this. I zoom in and yeah, it looks like it did cross, but I need two crosses, no, we're back over. So now I'm, two crosses in a row, I should say. So here's another one, here's one cross below. Here is another cross that was actually below. So you're out of the trade here, even though if you kept it on, there's a nuance that would keep you in that I've explained to the founders. But here is, you would have missed this, but that's fine. We had a nice big trade. Here's an interesting, I don't like this signal for two reasons, even though it would have worked out. One is that the risk is very, very big here because it's a big candle and this is not enough in decision for me. You'll see this plenty of times, so you can wait for what you want. Look at this, here's one right here that didn't turn out, small body, even though it's not as small as I like, big candle, stop up here, riding it down, nowhere to take out that one position. One close above, two close above, you stop that at both positions right here, so you're taking the loss from here to here. So that didn't work out, but you've got a scheme to limit your loss, okay? To keep it within your own range. Let's keep going. Here's one that is a soybean. Love the soybean, you'll notice that certain stocks, certain, Japanese yen, I just had a really nice trade because some of the currencies, Japanese yen been following this. Look at this, repeating the pattern many times over. I mean, it's amazing. You gotta watch it, but sometimes these patterns can lead to exhaustion when you see this. So I'm very careful when I see sideways movement after our trigger. But the first trigger usually doesn't, hey, I got four here, but again, follow the rules. Trigger, sell two, nothing, do nothing, do nothing. You're looking for closes, two closes above here. You've got your extension, you're getting out of one of your positions here. You're holding onto the second position or for the last three positions, if you have five or whatever it is, you still don't have a closed boom. You may, if you had five positions and it took out two here, maybe you take out another one or two here. You're keeping it, it's keeping going, it's keep going. Here's your, you got scared here two days, but it didn't, here's a close above, close below, close above, close below. You're still in it. You're still in it this entire time. Unbelievable, tremendous. So this is the loaded gun. And I'm saying to you that when you get rid of me today and get rid of the other speakers, but not before you listen to them, check these outs on your chart and you're going to see that this is the beginning of something big. And I've developed some nuances that makes this even better, okay? Here's a gold trade that I can't really expand with the format I'm using right now, but you can see, here's a small trigger here that got you in all the way down. And it happens, I did this because you can see the trigger in many different time frames. This is a screen I trade off of. Here's my, you can see I had a nice profit in this particular trade. And I got in over here, here's where I got in. This looked like a, this was a shooting star-ish looking thing, even though it's not at the top of a run. And this is an expansion, but I've already, this is a dramatic, the moving average is moving down nicely. I got in here and this was the profit that I had at this point. And this is on a 15 minute ticker, okay? So you can see, here's a four hour ticker and you can see the formation. It's a very, very powerful formation, but here's the entrance formation. Here's where you're getting out of your first position. Here's where you're managing it. He got scared as hell, but you're looking for that second close and you never got it, still in it. So take some patience, and when I take this profit, I move my other stop to break even immediately. Didn't mention that, I should have. Anyway, I just wanted, I need to make you an offer here because the loaded gun simple trading plan is something you really need to have and I'm gonna almost give it away to you here. I'm doing this in three classes and you'll get access to all of the launch stuff when it's launched officially, but I'm doing three private classes, 10 traders per class. Loaded gun trading plan explained is the first meeting. That's gonna be on Monday at seven o'clock, the last week of this month in May. The second class is Tuesday, Monday, Tuesday, Thursday. Monday, I'm gonna explain in great detail over a full hour, hour and 15 minutes, the loaded gun trading plan in total explanation. I gave you some of it today, most of it, but I need to slow down and really emphasize certain things. I'm gonna give you a new on sheet. There are not, I'm also gonna give you the simple trading plan on one sheet of paper after that first meeting. Now after that first meeting, if you're not impressed and you don't think the money that I've taken from you is not worth it, I'm gonna give you your money back after the first meeting if you don't see it from there. I've had nobody's ever asked for any of the money here on any of the simple trading plans. So you won't be doing it, but that's my offer out there. The second meeting on Tuesday, the last Tuesday of the month at 7 p.m., all of these are recorded, okay? The nuanced sheet, where I explained all of them to really even, and the list is growing as I just got a new nuance from one of the founders who's working with us and having fun with the system, said, hey, you know, I've noticed that I did this, and I'm making it a new one. So I've looked back now, it's about to be a new nuance. So you're helping me on this too. And then the Q and A at the end. So I explained the loaded gun, the nuances, and then Q and A in the end. And then we have follow-up meetings a couple of weeks after, a few weeks after. I wanna, you'll always be the founders. You'll always have a special place, okay? And it's 10 people, and it's on a platform where you can see my face, I can see your face, we can talk about it. You don't have to see your face. We can, we have audio back and forth. We can really get into it, because you need to understand the plan. It's very simple, but I need to emphasize certain things about it. It's gonna be released to the public somewhere between $9.97 and $14.97 for you, for the founders, $297. It's next to nothing. Listen, I'm not belittling $297, but what people pay for trading plans and things that are complicated and don't work. I'm doing this because I want the testimonials and I want those people who recognize, it may be you'll need a little experience recognizing it, but once you start looking at what you trade, you're going to say to yourself, whoa, this thing, this thing can work. It's what, you know, let me get into it. Let me, so do it now, because it's, I mean, take action now. I'll give you the link. And then again, if it doesn't look like it, you know, I'll give you your money back. But again, here are the exact dates, Monday, Tuesday, Thursday. The last Monday, Tuesday, Thursday, they're all at seven o'clock. They're all being recorded. So if you can't make it, if you're in, you know, if you're in Beijing, you can see the recordings of these things. And you'll have access not only to the recordings, but all the other launch stuff after it's launched and you won't pay anything extra. You'll be just like you paid the big money. Okay, for the loaded gun founders, it's 297. That's the link. simpletradingplans.com forward slash LG, LG for loaded gun. Okay, simpletradingplans.com forward slash LG. I, please take advantage of it. I mean, simple is good. And I've been around decades and the more complicated you make it, the more you're gonna hit your head against the wall. Simple is good. But the plan of saving, keeping what you've earned in the trade, keeping your stops moving to defend is really what you should be concentrating on. Use a trigger that worked and I've showed you one here, but that's not it. You can, you know, because you can shoot yourself in the foot too with a loaded gun. I wanna show you how to defend so that you can keep the profit that you make. Okay, that's it for me, Fausto. I really, as always, I always appreciate you having me. And it's all you, baby. Thanks and thank you everybody for coming.