 One of the most common questions I get asked is, you know, how do I start day trading? So what me and my mentor about it for our viewers on YouTube is create a free mentorship course that reveals our 12 secrets that every single brand new day trader should know before they get started. But please take note that there is limited seating every single week, so please reserve your spot at myinvestingclub.co, link is in the description. All right, enjoy the video guys. What's up everyone, it's Tom Diesel here. Hope you guys had a great weekend and also a great trading month, last month, August. This week gonna have a long weekend since it's closed on Monday, but today I just wanna make a quickly, I'm probably gonna keep it short and sweet regarding this. Today I'm gonna make a video on one of strategy that about use it a lot. And I've seen a lot of questions about this in weekend mentoring, also a lot of people sending me DMs. And before I even start, this is the setup that I'm not really good at, but I will do my best to explain in detail for everyone to kinda understand it. And so today's video's topic is gonna be recycling, okay? And recycling, this is one of the strategy that Bows basically using every day. And I'm probably gonna say it's not easy for new traders, okay? Even for myself as well, sometimes I try to do that, try to kind of get a good entry and then kind of recycle my shares around the core, right? But a lot of times I have my plan, but at the end, I couldn't follow it through. So it's not easy. The thesis or the idea behind the recycling is that when you get one good entry, you try to get a good entry, right? And you try to pay yourself along the way and without being too greedy and still holding that position from up there and then, you know, and styles kind of reverse and then stop you out and you might end up at a stop at break even or maybe stop out for a loss, you know, sometimes, right? So the idea behind the recycling is that you pay yourself along the way and then you add back the shares that you covered in order to kind of recycle the core of the shares. To me, it's more like, you know, when you're trying to kind of surf the waves, it's like, you know, I think I'm gonna just try to put it in a simplistic way as possible. Like imagine this is the wave that, you know, in the ocean, right? It's like ups and down, ups and down. And if you are a good surfer, right? Like Bao or like Alex who's been trading for over two decades now. And so they know exactly how the stock is gonna behave. And so that's easier for them to kind of recycle the shares because, you know, they've been surfing that wave so for so many times, right? But for a lot of us, especially for new traders, so who's like, you know, first time in the ocean, you don't even know how to swim yet and how can you expect to be surfing that, you know? And if you are still learning. And so that's why it's very hard to recycling. But if you try to kind of, you know, learn it and try to do that in the future, I mean, it will reduce like certain kind of emotions of the particular trade. It's like, I think I'm just gonna put it, you know, in whatever example here. Let's say you're gonna short, you know, somewhere around like 620 here, right? And okay, you have a stop at 6.5. And then when the stock tank, you try to cover some down here. And then you add back, you know, like I'm just put it in the perfect way, okay? Keep in mind that this is a, you know, poor example. It's like, you know, I'm just giving you guys the exact, I mean, it's more like the perfect scenario, how it's gonna be if you're recycling, right? Compares to that, if you're holding and not recycling and how it will turn out your P&L and also the emotions that you have to be involved with that. So let's just say that you short something at 6.2, okay? So you cover some down here. I'm just putting it, you know, blinding the example here. 5.3 and then you short back the bounds, 575, right? You add the shares. Let's say you short here a thousand shares. So you cover here 500. You add it back here of another, you know, the shares that you covered, right? So you back down here to around the core and then you cover down here again, something at view app, you add it back, you cover some here, add back, and you cover some here. I mean, if you do a simple math, you're gonna make more by doing so, okay? You're gonna make much more. And instead of try to short it here and then cover it down here, like, you know, 1,000 shares and 1,000 shares, right? And if you do the math, you know, you could have done that, recycling the shares like, you know, once, twice, three times, you made it four times already. So recycling is really powerful, but if you don't do it correctly, it's like, if you don't do it correctly, it's, you know, either it's gonna stop you out because you added the shares or like you cover too soon and then you added back the bounds. I mean, you know, there's a lot of scenarios behind that. So that's why I, that's why I try to explain it. And you know, as you imagine, as this stock is a wave in the oceans, you know, like ups and down and it's someone like, you know, Bao or Alex has been a good server for, you know, for decades now. It's easier for them to kind of read how kind of stocks gonna behave. Hey guys, my name is Toss Bradley and one of the head mentors of my Investing Club. If you have any questions about getting started in trading, getting started in the MIC, MIC in general, text me at 213-458-5997. This is not a robot, it is me directly on the other end of my business line and we'll get you in the club. We also have special promotions going on that I can get to you depending on your trading needs. Hit me up, back to the video. One of the things that we've been teaching in MIC is that we try to kind of do like from line to line. I think that's the easiest way how you can approach it since you're new and you still want to recycle. Just an example on how I would approach it on a recycling and again, you know, I'm really good at this kind of strategy and I know, you know, the kind of support and resistance and all that, but it's like, you know, recycling. It's really an art for myself. Sometimes you have to know exactly when you're gonna hit back, when you cover the shares and then you add back the bounce, right? I mean, you know, it's easier said than done, so. But in this case, I'm just, you know, before it's like for me, okay, if I want to recycle something, if I want to even begin with recycling instead of scalping, right, I need to know the meat of the move. I need to see the bigger picture before I even get in the trade, okay? So let's say I am interested in like, you know, trading DPW. The first thing I'm looking at is, okay, so the stock is, let's say, you know, around this time near the open, I'm looking at the chart and I'm gonna figure out my lines, right? So I'm gonna ask myself, okay, so the top is right now, like, let's say 2.4, okay? So before I even thinking about recycling, let me see how much meat on the bone this stock has, right? So 2.4 and let's say here, this is the kind of area, the support, 1.8, okay? And the best case scenario that I could get is like 2.1.6, but this is more like, you know, if it gets to that point, it's probably the trade is gonna be home run, so. So I have here, before I even, you know, starting, before I even thinking about trading this stock, I have from 2.4 to 1.8, right? So let's say 60 cents here, 60 cents. I'm gonna ask myself, okay, 60 cents is not enough for me to kind of recycle, okay? Since if I short it, you know, near that 2.4 and let's say I'm risking only 10 cents, right? My kind of risk and reward, risking 10 cents to be able to, you know, to my be able to make the 60 cents back. I mean, that's pretty good risk reward, right? Okay, so my plan is set. I think the stock has like at least 60 cents for me, you know, on the downside, you know, on, on, on, on upside. And, you know, on the downside here, if I have stopped out maybe 10 cents or 15 cents, that's pretty, you know, doable. I'm just gonna put out here example. Okay, so let's say this is the pre-market, hi? Okay, so I'm gonna put here a short sum. Let's say 1,000 shares, doesn't matter, okay? 1,000 shares, okay? If I have planned 2.3 thousand shares and if I cover 1.8, so what do I get? 50 cents, right? Yeah, 2.3, 1.8, 50 cents, 1,000 shares, 500 bucks. Yeah, I mean, it's pretty simple math. You're risking 10 cents here. You're risking 100 bucks to make 500 bucks, right? Easy, peasy. I mean, it's simple, simple math. Thank you so much for watching our video. If you wanna 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.