 So bye everyone, today is Monday, today is YouTube Live Day, so a lot of topics to talk about today, but before we start, I want to talk about our meetup. So we are hosting our first meetup ever since COVID, right? This is gonna be on January 29 in California. All of the information is on myinvestingclub.com slash meetup, and I'll put it at the bottom of the video as well. This is 100% free meetup. You don't have to be an MIC member, you just gotta be interested in trading. It's gonna be set up at a park in California, so there's not gonna be many COVID restrictions. Obviously if you're feeling sick, don't show up. Anywhere in LA needs a proof of vaccination or negative COVID tests to be able to go anywhere. So reserve your spot at myinvestingclub.com slash meetup, sign up for it, it's 100% free. We might have some pizza, some soda, some games, and it's gonna be a really good time. So this is your chance to meet me, meet Bow, meet the MIC team. Broker's gonna be there. So yeah guys, myinvestingclub.com slash meetup, okay? So let's talk about trading, right? So we are coming into the end of the year. It's currently December 20th as I'm recording this video. And the market's been crazy guys, the market's been crazy. Overall markets have been tanking. Small cap stocks really haven't been moving. So I kinda wanna talk about market cycles in this video before we kinda get into the deeper topics. So what is a market cycle, right? What is a market cycle? Obviously the most simple ones are bull markets and bear markets. But for this example, I'm gonna be talking about small cap cycles, right? So a cycle in the stock market would be something like every single day a stock is gapping up and tanking. Or every single day there's a pre-market runner. Or every single day there's a zombie move. It's something that keeps repeating in let's say a two, three month period in the market. So this current market cycle that we have been in is slow, small cap action, okay? So what that means is stocks are really moving. Stocks are really trapping the shorts. Stocks are mostly trapping the longs, right? So that's the cycle that we are in right now. And I think as of today, that's slowly starting to change. Now what causes a market cycle to change? Or what happens, right? So let's start with the slow market first. A slow market happens when there's not that many runners, not that many opportunities, not that many gap ups, not much volume happening. So a slow market cycle ends when we get a big parabolic runner to bring back attention and bring back eyeballs into the small cap marketplace. So today, SOPA, in my opinion, was that stock that started to bring back attention to the small cap market? So what ends up happening is every single person in that slow market that was just shorting and holding, shorting and holding, shorting and holding, now that's not starting to work because the market cycle has changed, the market cycle has shifted. So with this brand new runner up, you know, 180% on the day and still squeezing, now you better believe that the market cycle has shifted. We are no longer in a slow market where you could just short everything and close your eyes. We have now, as of today in my opinion, have adjusted to a hotter market cycle because of the one big parabolic runner that we got today, which was SOPA, okay? So a slow market ends when a massive, massive, massive hot stock starts to trap and starts to go higher and that's exactly what we're getting with SOPA is currently trading at $9 as I'm recording this video. It may be at $5 or it may be at $15 tomorrow. I don't know, I don't care, all I care about is the hot market is back, okay? So that's what happens when a hot, that's what happens when a slow market goes hot. Now what happens for a hot market to go back slow? For a hot market to go back slow, you still get these runners, but instead of running, running, running, running, they're gapping up and fading. They're gapping up and fading. Now all of a sudden the shorts that were stuck have adjusted to being the longs that are stuck. So in a slow market cycle, the longs get stuck and the shorts and the profiting. In a hot market cycle, right? In a hot market cycle, wait, what the fuck did I say? So in a slow market cycle, in a slow market cycle, the longs are getting trapped and the shorts are profiting. In a hot market cycle, the shorts are being trapped and the longs are profiting, right? So that's what you need to pay attention to. Who is trapped, right? Who is trapped? When the market is hot like SOPA, the shorts are trapped, the longs are making money. When the market is slow and the longs are getting stuck, the shorts are making money. So in my opinion, guys, in my opinion, this SOPA has shifted the market cycle as of today. I think we had about a month or two and I think as of today, it has changed, right? So that's basically all you need to know about the market cycles. What you need to realize is what market cycle are we currently in? If you are in a slow market cycle, it is okay to be a little bit looser with your shorts and a little bit tighter with your longs. If you are in a hot market cycle, it is a lot easier to be loose with your longs and tighter with your shorts. So today, when I started to realize that there is a hotter stock moving and eyeballs are coming and volume is coming and everything is, attention is coming back, I eat my loss and I walk away because you know what, today I lost $4,000, right? I lost $4,000, but had I been stubborn, I would have lost $15,000, $20,000, guys. So now that I'm recognizing that the market cycle is shifting in favor of the longs, I wanna come on here and I wanna make this video so that you guys can understand what's going on in this market. All it takes is one hot stock, one hot stock to reignite the market. The last hot stock that reignited the market was DWAC. If you guys remember, DWAC went from 10 to $175, and for the preceding weeks ahead, there was stock, stock, stock, crazy stock action, crazy. Now, this SOPA moving in my opinion, guys, is gonna lead to so many new runners, new sympathy plays, new everything, that your job, your goal as a trader is to make sure you do not blow up on this stock to be able to attack tomorrow, the next day, and the next week, because I know a lot of people that are probably just shorting and shorting and shorting and shorting and hoping to make back their money, but today is not the day where you fight the stock. Walk away, even if it's a loss, so that you could come back tomorrow. On DWAC, I lost $70,000 on the day it went from, I think it was like 10 to 50, right? And I stopped that at 17, right? I shorted at 12, I stopped that at 17, I lost 70K. Had I held, I would have lost a million dollars. Today, I lost four grand. Had I held, had I been fighting this shit, I probably would have lost 70 grand today, right? So the point is guys, it's okay to lose. It's okay to lose money as long as it's controlled. My max loss is $20,000. I was not even close to my max loss for the day and that to me is a big win, right? That to me is a big win. So for example, guys, keep in mind what market cycle we are in. You better believe that tomorrow, if there is a pre-market runner, I'm gonna try to go long. I'm gonna try to go long because the attention and the eyeballs are back in the small cap market. You better believe I'm not gonna be shorting ship pre-market. You better believe I'm not gonna be shorting ship zombie times because what happened was in a slow market cycle, everyone broke the fucking rules. I would see people shorting zombie times all day long, not stop and in my head, I'm like, what the fuck are you guys doing? Because sure, it may work in a slow market cycle when nothing's really moving, but if you shorted zombie times today in a hot market cycle, you're fucking dead. You're fucking dead, okay? So what can you do to profit in a hot market cycle, right? Number one is go long pre-market to hot stock. Number two is go long fucking zombie times. Number three is stop fucking shorting the hot stock. So today what I did is on CANF, which was a hot stock that turned into a side stock, I made a little bit of money, but then I gave it all back on another stock, GRTX guys. So today I lost money, today I'm a loser, today I didn't really do well, but in the grand scheme of things, if my fucking loss on the day is four grand, five grand, I'm gonna be doing just fine because you better believe when these sympathy plays come, when these side plays come, I'm gonna size up and I'm gonna make fucking 70 grand in a day, right? So the point is guys, the point is size is very important in a market cycle. So if you are a long biased trader, you should not be using size in a slow market cycle. If you are a long biased trader, you should be using size in a hot market cycle because that's where these stocks are running guys. So the reason why I've been doing, I guess I would say I'm doing well in this, I guess one month stretch, is because I size down 90% of my fucking size guys. If I normally use 5,000 shares on a stock, I'm using 1,000 shares during this cycle because I want to be able to be safe. I am not getting trapped on any of this fucking garbage. And today on the day that I did get trapped, it was very manageable, it was very small and I don't give a shit, okay? What really helped, I was talking to a member, right? I was talking to a member the other day and he told me what really helped me is setting a max loss at the broker. And obviously we've said this a thousand times, but let me kind of dive in deeper. He said, when I set a max size at my broker, I was no longer scared. And I was like, what do you mean you were no longer scared? He's like, I knew from that day forward what the maximum amount of money I would lose on any given day would be and that took away my fear of trading. So think about that for one second. Imagine in trading, the fear is you don't know how much money you're gonna fucking lose. If this stock goes wrong or if the stock tanks or has news or whatever the hell it is, you don't know how much you're gonna lose. Maybe you're gonna lose 1,000, maybe you're gonna lose 5,000, maybe you're gonna lose 50,000. But when you set a max loss at the broker level, you know that on your worst possible fucking day ever, it's gonna be that max loss. And by doing that, that eliminates the fear of trading because you now know your losses are capped at a certain degree. And I think that explanation is absolutely incredible guys, right? So for example, I know that my max loss at the broker level is $20,000. I know that on my worst fucking possible day going forward, my loss is gonna be $20,000 on my worst fucking day. By doing that, I am no longer fearful. I am no longer scared. I no longer care because I know I can make that money back and I know I won't lose more than that, right? The fear is shit, man. If I'm gonna lose, if a crazy stock comes, am I gonna lose 100 grand? Am I gonna lose a million? What the fuck is gonna happen? But now that fear is capped and I am no longer afraid. Does that make sense guys? Does that make sense? Sorry, just turned around looking at these stocks. So understand guys, understand what type of market cycle we are in. Understand that the market cycle shifts every few months. After SOPA, I guarantee we're gonna probably have about a week or two weeks of hot market cycle and then it's gonna shift back into cold market cycle. And whatever, what ends up happening is people get attached to the past market cycle that we were in and they start doing shit that didn't work. What's working in September and October is not working in November and December. So why in November and December are you trying to do the same things in September and October? And that's why you guys need a community. That's why you guys need people around you because the shit that people are teaching a year ago, six months ago, two months ago is already obsolete. What they were teaching two months ago is obsolete. And that's why we like to have up to date videos. That's how we like to have current videos of current market action because this is the shit that's working right fucking now. And the market is always adapting. So the strategies and the content must always be adapting or else you're gonna be left in the dust. So does that make sense guys? Does that make sense? So the market cycles usually happen, a hot market cycle usually happens when a big stock like DWAC or AMC or fucking SOPA goes and takes the attention. And usually a slow market cycle happens when there's not really much volume happening when stocks are gap and crapping. And in this current market cycle if you are shorting zombie times you will fucking lose. If you are shorting the hot chick you will fucking lose. If you are shorting easy to borrow you will fucking lose. So in this market cycle size down be careful and fucking wait because once three or four days passes after this SOPA and people are still chasing random stocks that should not be chasing that's where we come in that's where we size up and that's where we attack these stocks are up on no news pumping up whatever the fucking may be. So does that make sense guys? Does that make sense? So that's the market cycles. Currently in my opinion as of today December 20th I would say that we are now entering a hot market cycle for small cap stocks because we have a massive, massive, massive runner that traps so many people, okay? So does that make sense? And keep in mind guys I've been trading for almost eight years now, right? In eight years I've seen every fucking market cycle that you could imagine and I'm still learning and I'm still improving but that's things that you guys have to remember because if you've been losing money for the past month is it because you're still sizing up? Is it because you're doing the shit that worked last month? So understand guys that it is the market cycle is okay and it happens and it's okay to fucking lose money but as long as your losses are capped and under control it doesn't really matter. I'm not gonna lose sleep at night because I lost $4,000. That is a quarter of my max loss on the day. I don't care but you better believe if I lost a hundred grand on the day I would fucking lose sleep. So because my losses were controlled because my losses were capped because I was able to drop my ego and say you know what, the market's changing I'm gonna fucking eat my loss and I'm gonna fucking walk away. That's it. I'm walking away a winner today and that's all I care about and by doing this over and over and over again that's how you become a consistently profitable trader. It is very easy to make money in the markets guys. The hard part is keeping it in your pocket. What happens is you make money and people start fucking gambling it away. I know how precious money is. I don't wanna gamble it away. I wanna have my seat belt. I wanna have my safety belt. I wanna have my parachute. I wanna have my guard rails and that is a max size and max loss and remember if you have a max loss on the day your losses will always be capped so there should no longer be fear of trading because you know on your worst possible fucking day ever that you're gonna lose your max loss only, right? Does that make sense guys? Okay so one more thing guys one more thing before we get into the Q and A is Christmas is coming up and a lot of people have been asking us about some sort of holiday promotion and to be honest guys I don't really wanna bring on any new annual members at this point. We've kind of adjusted MIC to be more about quality over quantity. So we only want serious people. For Black Friday we ran a promotion on the annual membership. I don't really wanna run any promotions on the annual membership right now. We're not looking to take on any monthly members. We're not looking to take on any annual members right now. The best that we could do is maybe bring on some lifetime members. So if you are currently a MIC member or an inquiring member about MIC you could DM Tosh and MIC or you could text him at 213-458-5997 or email him Tosh, T-O-S-H at myinvestingclub.com and we will work on a special package for lifetime membership. We're not really currently doing anything for annuals. I mean you could ask him and he could maybe come to me with a special case scenario but we are focused on quality over quantity right now. Bal and I put our 100% all into this and I don't want any lazy people anymore because I'm giving the same energy to a lazy person that I'm giving to a hardworking person. So I would rather focus on the hardworking people and I make fucking three, four million dollars a year from trading. Making a little bit from MIC is not gonna change my life, right? So I wanna focus more on trading. I wanna focus more on helping the hardworking people. So if you're curious about joining Lifetime, message Tosh, email Tosh and we'll work on it by case by case basis. So that's what we're gonna do for the holiday. No fancy promotions, no fancy annuals, no fancy monthly. Right now we just wanna bring on new Lifetime members and maybe we'll bring on some more annual members with a sale next year but not anytime soon. So now do you guys have any questions for me? I could open it up to a brief Q&A and we'll take it from there guys. I really hope this SOPA keeps ramping because the more it ramps, the more opportunity there is gonna be tomorrow and you better believe that I'm not touching SOPA tomorrow. I'm touching the sympathy plays that are moving tomorrow, okay? Why am I not touching the main stock? Cause the main fucking stock. I'm waiting for the sympathy plays, the sympathy plumps, the stocks that have no reason to be up. That's the ones I'm fucking shorting tomorrow. Hey Alex, I find that you often top tick your shorts. What is your entry signal based on the lines? Yeah, just draw your support and resistance lines. Put your lines on the chart and when it gets to the lines, you short it. That's how technical analysis works. The people that are patient and attack the lines always top tick and the people that have FOMO are always having the terrible entries. What is my motivation for doing MIC? My motivation is no one helped me when I first started, right? It's, there's so many scams and so many frauds and so many con artists out there. So many that all Bao and I have to do is provide real, legitimate, helpful education and we will win, we will win because there's so many fucking scammers out there and that's the point. The point is 99% of these educational rooms are frauds. They are scammers, they are not real. So in an industry that is clouded by scammers, all we have to do is be real and we will win. So that is our goal. Our goal is to help people by being real. Have you partied with Steve? We'll do it, yes, me and Steve are good friends but that doesn't have anything to do with this. Any tips on how to mentally handle an L and able to reset the next day? So losing is part of the game, guys. And what you have to remember is trading is a game of confidence. So when you're on a hot streak, you're super confident. When you're on a losing streak, you've lost your confidence. So your first step after a losing day or a losing streak or whatever it is, just to come back and be green. I suggest sizing down. It does not mean to make your loss back in a day. Everyone wants to make their loss back in a day and they end up ballooning their losses. What you want to do after a losing day is drop your size, stick to your process and walk away green, even if it's a fucking dollar. Even if it's $1 that's green, then you've gotten your confidence back and you could slowly start to rebuild and that will domino into even more confidence. So if you're on a losing streak or losing focus on getting one green day in your belt and then you're gonna be like, you know what? That was pretty fucking easy. I could just keep doing this, right? Zombie rule mainly applies to stocks with volume. Yes. I mean, guys, whether you guys are chasing someone that has a screen share alert, a voice alert, or someone that's just vague, your mentor's vague, I mean, you're probably in the wrong community, you're probably not learning and if the guy keeps winning every single day and you have no idea how he keeps winning every single day, you're probably in the wrong community. I fucking lost money. A millionaire trader lost money today. Oh my God, the world must be ending. But this is how it works, guys. You win some, you lose some and we still focus and educate even on losing days and come here and talk to you why we lost. I lost today because I was getting too early on the easy to borrow names. I was getting too early on these stocks that the market action was shifting. I ate my loss and walked away. Had I not eaten my loss, I guarantee it would have been a max loss day. But now $4,000, I'm gonna make that back fucking tomorrow, I don't care, I don't care. You have to make it so that your losses are an amount that you don't fucking care about. So maybe for me it's $4,000, maybe for you it's $100. If you lose $100 a day, you're not gonna give a shit. So make that your max loss. Your max loss, guys, just to keep it very, very simple. Do not whip out a calculator, do not whip out a graphing calculator, do not whip out a protractor. It's a very simple equation. Listen, if you make $100 a day, your max daily loss is $100 a day. If you make $236 a day, your max loss is $236 a day. If you make $1 million a day, your loss is $1 million a day and hit me up and ask if you have a daughter because I would like to marry her. Anyway, point is, guys, that your max loss in the day should just be one day's worth of fucking work and that way you do not care, that way it doesn't fucking matter and you get to go on with your life and enjoy it, right? So I think I'm gonna wrap it up there, guys. What I wanna do is in the past, I did something where if you guys commented one lesson that you learned from this video, I would send the winner some MIC clothing for free. So leave a like on the video, comment one lesson that you learned from this video and I will pick someone by the end of the day to win some free MIC merchandise. So thank you guys for attending. I hope this video helped. I tried to keep it very clear, very normal, very educational and hey, I mean, the holidays are coming up. Instead of spending it on stupid shit like Gucci belt, why not spend it on investing in your education? Maybe one day becoming a millionaire. So thank you guys. I appreciate you guys and I will see you guys back in the room. Thanks.