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We are recording folks, so this is the first big cap webinar of 2020 and of all time really in MIC, so it is Tuesday, February 25th, 2020. We're going to talk about the fallacies of big cap trading. The stuff that people think keeps them from trading big caps. So let's jump right into it. Number one, this can be worded two ways really. The first is I'm a small cap trader and I'm still losing. So learning to trade big caps wouldn't do me any good. If I can't trade small caps, I can't trade big caps. Or another way of saying that is I'm a small cap trader and I'm still losing. Maybe I should go trade big caps, both of which are so, oh, it's just the worst. It's the worst way of thinking. It is the absolute worst way of thinking because, and I know Sam can attest to this because I use the same exact process that MIC teaches every single trader. I use the same process in trading big caps as I did in small caps. The difference is I don't wake up at 4 a.m. anymore to get the locates. I don't have to do any fucking fundamental research. Like I... Bro, Sam wakes up at like 11 a.m. market time, comes into the little group, and he goes, what's up guys? Just shorted some lift. I'm up to there already. How are you guys? In my robe. Yeah, it was a robe, yeah. He's like, now I'm gonna go get some jersey mikes. Dude, I haven't gotten in a while. Dude, that's what it is. So, the fallacy here is that small cap trading, if you fail in small cap trading, you should go trade big caps. No, no, that's not how you should think. It's not how you should think. The process of trading small caps is the same as trading big caps. They're just bigger ranges. You deal with a bigger price range, so you have to... Dude, you can't... A small cap, it will... You're short and small. Let me say, for example, this is the example here. So, we were to draw it out. You can draw? Oh, sick. Like, this is the setup. That's mega slow. Whoa. Dude, I would have shorted right there, yep. I would have shorted that top. Here's the point with this, is that, let's say in small caps, pre-market high is a really mental level to stop out if you're short. In longs love to buy that, a lot of chat rooms will alert that. They're like, pre-market, break out, let's get it. And so, in small caps, it breaks by three cents. What do you do? Me? No, not too much. It breaks by 10 cents. You're like, okay, I'll stop out. But if it breaks by 10 cents in a large cap, that is the... I mean, I've watched... I've seen Sam go, I'm gonna stop out at 42 if it breaks. It goes to 42.50 stups, and he's like, no, it shouldn't have stopped out. I'm still in. I'm like, what? But it's because you have to withstand a larger price range. You have to be able to handle a larger price range. So small cap trading doesn't really just transpose right into big cap trading. There's some things you have to change, and the main things you have to change have to deal with the range of the stock, the ability, and where it can go. No, you do not need a bigger account. ATR is a good metric to be aware of. Yes, yes, I agree, Brian. I watch ATR on stocks. That's usually how I pick my strike prices when I play options, is I will look at one ATR away from where we're... Let's say we're trading at 40, and the ATR is two bucks. So I'm probably gonna pick a strike price. It's like 42. And so if there's interest in that level, in that price level, then maybe I go with that strike price. But it's always best to try to stay as close to any money as you can. I do use sometimes RSI, but I don't like... It's only if I'm in the position, and then I'm trying to either cover or whatever the case is, or sometimes entering, and then I'm trying to see whether... Just what it says, if it's overbought, oversold, if I'm looking to cover, and I see that it's oversold, and I'm like, shit, it probably is a good time to cover some, at least. Well, that's what I love. That's what I love. Same for entries. Let me just dictate. I know this would be something that people get to see here, and I'm gonna show you guys something a little different. So here is something I absolutely love. Let's say this is your chart, right? And right here... First balance right there? Yeah, right. And then this is your RSI right here. So you've got RSI. It gets really overbought up here, and it comes back down. It comes to oversold here, and it starts to pop, and then we cycle back to overbought there, and we come down here. But then let's say we start to go into this consolidation range, like this, and we're not really doing anything, and we're the RSI's climbing like this. So if the RSI's climbing, then when it goes and pops a little bit, I'm not really concerned, because the RSI is almost overbought. With that little pop right there, it's gonna put it into overbought. So that means that there's gonna be more selling up here, and that means this balance is less likely to work, because there's just too much buying met with supply, and so then that's when you get it, and it ends up looking like that. That's the last little relief bounce. And so when shit starts to go into consolidation like this right here, and the RSI starts going overbought, dude, I'm like, yep, yep, dip's coming, dip's coming. And RSI does not work in small caps, because small caps are fucking psychological. They're all psychological. Big caps, RSI works. You gotta know how to use it, but it works. It's an additional confirmation to your trade. It works. I use it every day of my life. It has kept me out of trouble so many times, and given me additional. RSI's really good. Given me additional confidence that it's gonna work out. All right, guys, have a good evening. All right, guys. See you later, buddy. See you, Joe. Thank you so much for watching our video. If you want to see more of our videos, please subscribe to our YouTube channel by clicking the button here. We do our best to post a new video every single day. If you have any questions about MIC or any general trading questions, please text Tosh using the number here. Also, stay up to date by watching some of our most recent videos right over here.