 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 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. What's up everyone? I just wanted to make a weekly video for you guys. I have a cool kind of topic or not cool but just a different topic this time around. I wanted to talk about what I've been kind of calling opportunity cost and what I mean by that is you know in trading it's like a known thing that you know if you like in a lighter terms you know if you blow your load too early you end up missing the move that you wanted and suddenly I was struggling with this week you know the market has been providing such good opportunities lately and range and like I've just been luckily enough nailing a lot of them and trading well and then last week came around the end of last week and I was just early all the time because I think I got into this mindset of like I couldn't lose and even as I was trading a little sloppy like even with big size like I just was kind of getting out of everything and like things were paying out right because like even on a stock like this like this is um I know you know if you were even a little early at 11 you know you gave yourself the range you know you could have made you know dollar a share plus whatever but kind of what ended up happening to me last week was I just was so anxious at the open to nail everything because I saw so much so many people banking like all the time so I just like felt like I had to be a part of it so um something I'm gonna work on going into next week I actually said I'm taking like a solid month off even looking at like Twitter or any of that and I'm just gonna focus on MIC and focus on you guys and myself in the chat and posting my progress here because you know I think as traders especially when everyone's doing so well you know you start to get this idea of like I don't want to say jealousy but that's kind of what it is it's like you just see these people banking and like as much as you want to I've been doing this a long time and as much as you want to say like oh you know I'm doing well too and like you know good for that guy whatever it's hard sometimes just competitiveness and this feeling that you need to do better but again just because you see someone making five ten thousand dollars a day does not mean that you're there you know you can't compare your chapter one to their chapter 30 like you know bell always says so you know as you know going in the next week just really sticking to my my niche and staying in my lane so I talked about these trades and like what I mean by opportunity cost so so in the morning I have a rule you know like I usually like when I start tanks that open like SSR I'm not like you know if I'm going to scalp VWAP right here I'm using no more than my 30% size because my thesis is like it just didn't give you that move you know we want meat on the bone so we would have wanted this thing to push for you to you know use your 30% and then add as it confirms but what happened here was I just you know I attacked the VWAP which is fine you know a tank at the open I attacked VWAP I think it tanked you know 30 40 cents and I'm like okay that's a good tank so I'm gonna short VWAP right but 99% of the time I stop out on the break of intraday high so like right here so I was short with a 1090s average you know intraday high was like 11 so I would have taken like a less than 10 cent loss on on starter size right which would have been fine because then I would have been patient enough I would have been down nothing you know like barely you know over $100 and I would have been able to sit through this and wait for my for my entry right which was like usually on stocks like I know like I always wait for these stuff moves or these rejections off highs and give you that bounce to get in risking you know this line or whatever but what happened was I didn't stop out you know and I didn't put a hard stop in so then I said okay you know now it's at this line maybe I'll add and I added a little bit bigger which now because I was 30% here I was bigger here 50% maybe so by the time I kept going you know I had to take the loss as it broke kind of this this resistance right here so you know it just shows that like you know if you don't follow your same process every day you know like the odds are you're gonna lose and the one time you don't you get lucky it creates a bad habit right like this was a clear cut reason to stop out a reclaimed VWAP on a little bit of elevated volume you know broke intraday high and broke all these resistances right so you know this stopout even was it was okay but I was more than my 30% size on the front side of the mood move I didn't stop out at the levels I really should have so you know it's just frustrating to see and I want to give you another example of that so CAPR this is a stock that you know I I'm not mad about this trade necessarily but I want to get into exhaustion so so the way my thought in the morning was you know there's resistance at the 720s and then like you know 750 whole half dollar and then eight or my thoughts right I no way in hell like it just goes to show like no matter how long you do this like you never gonna know everything because no way in hell I wouldn't have bet any amount of money this was going to nine looking back I realized that it really was kind of like a volume trap where it traded so much volume the past few days so you know people still had to get out so squeezes could go further you know and the problem is my niche is between two and five dollars on stocks between two and five and anything over that I just always always always have to remember that there is range that you have to account for right so and you know look at how much money there is from nine to seven fifty is a dollar fifty so you know using even a thousand shares which is nothing that's fifteen hundred dollars right so you got to account for the range and play the range like what bow does right whereas like you know I'm trying to play you know this range still using you know three or four thousand shares like I'm you know I'm looking for this home run idea but you know I'm forgetting that you know these things like you know if you have 20 30 cent risk it can go 20 30 cents like nothing so what happened in the morning was you know I made a short of the push of 727 50 had like a 730s average added on the reject so now I'm still sitting in the 730s you know I covered into a lot into VWAP because I just felt it it wasn't breaking down went up you know I had my stop kind of above this level here right in there and I added as it looked like it made that lower high so I like I'm like okay this trade's gonna work this is gonna break down VWAP and I'm gonna kind of look to cover down the 650s but then I looked up it held and I so as I said that's weird like that's not normal then I saw this you know higher low and I'm like I'm getting contradicting signals so my thought is I'm usually just gonna get flat when that happens so as I was looking to get flat you know we just got this push and I stopped out on the break of this lower high so the problem is I just exhausted myself like I ended up like pretty much break even on the trade or maybe I was even a tiny bit green I this is the day I also lost an INO so I was like right on the day but like at this point I was like so flustered I was so flustered that that I just had kind of worked myself on this loss and I don't know maybe from taking the loss and I know I was mentally exhausted so I missed this whole move because I just had to get out of here you know I just felt like like stressed and like and in reality like I know like we probably got this top off 870 I probably would have tried that you know and and let me kind of show you guys you know you know as I spent all of Friday like pretty pretty annoyed I'm taking a bunch of I'm told I'm not doing Twitter I just need to use my pictures here like when I go back and look at my edge this is what I'm what I notice right look at this when the stock is under VWAP right the only time that I actually really like shorting front side is two scenarios or not even front side just like kind of shorting like into the strength is in two scenarios so either when the stock is broken under VWAP pre-market and it's giving you these levels to play off of you know so now you have VWAP as your risk you know that's why I like stopping out of VWAP because you know VWAP is usually coupled with the line close to it and that gives you that that edge you know look at this you know it was under VWAP got the short strength and cut in short as it was breaking down like look at that dollar range right you know that's that's my edge is like you know when a stock's broken down you know shorting into what was already caused resistance the only other time that I like to short into strength is and this is a this is a tricky one see these are all like shorting into strength but with predetermined lines you know like I'm like I'm just throwing starters out at the predetermined levels to get in you know I did that on on SIPA right predetermined 440 line so gave me that confidence to play it because obviously you know everyone's chasing to break this line and while it was rejecting you can get in another example of where edge is if you look at SIPA I mean look at this like if you avoided all of this nonsense right in here right like this guessing the top or whatever look at what it broke under VWAP it broke under VWAP on volume and you had from 380 to 340 that's 40 cents of clear backside trading and you're not guessing where to cover look at you have your levels there's support at 350 and then support down here so you know these levels everything's drawn out for you you know and just having that patience to wait another example is this right I know the other day you know when it broke under VWAP I took that that starter and was shorting just using VWAP as my guide right and look at how it worked you know I had from you know 1230s 1220s got to cover the low 12s and I ended up losing on this but I lost I think well because I was looking for the first red day I stopped out when it reclaimed like very well so so I'm noticing as time goes on it's like you know it's funny you hear people tell you this so constantly like my edge is just so much revolved around waiting for the VWAP break you know and I don't mind shorting frontside because I think I'm comfortable identifying when you know it's okay to but again if you're shorting frontside you have to have to stick to the 30% rule because it's not worth taking those mental exhaustion paper cuts yeah you know if you're small size and you're taking these small cuts it's okay you know but even then you know like what I did over the weekend is I printed out all of my my charts that I just showed you and then I printed out my trades that I've made the most money on right and it just shows like if you can just be patient and wait for your desired entry and like where you have the most edge you know the odds are in your favor and like that's when it's not afraid like it's not scary to use bigger size like I said going into next week I'm gonna focus on not exhausting myself early on and just sitting tight and waiting for that that desired entry and then so I'll let you know how that goes I'm gonna recap my trades next week so enjoy the rest of your day guys thank you so much for watching our video 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