 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 guys? It's Tom Diesel here. I hope you guys had a great trading week this week. Today I'm going to go over to one of the topics. I've been getting so many DMs from the members asking about this and also I've seen a lot of questions in today's weekend mentoring session. And so I thought it could be a really good idea to go over them in detail so that you guys know exactly what I'm looking for or know exactly what to look for. So the topic for today is how you can scale into low hanging fruit. The low hanging fruit is the setup that basically that's what MIC teaches or I've done a video about that as well and that's how I kind of grew my account from really small amount to pretty much a considerable good amount of money based on that strategy only. So today we're going to go over some chart and I'm going to tell you exactly how I would scale into them and also the risk management part and also what if your line didn't hit. It's like we try to use the outer lines the most right so let's get into this. So one of the example here that I have, it was a few days back, it was like Wednesday. So what does low hanging fruit mean? What is the true low hanging fruit right that's a you know this questions a lot of new members asking and but if you guys here been here long enough you already know that. So the low hanging fruit is the continuation of a day to play right so we want to start to kind of gap up on whatever news or you know farmer or whatever who's pumping that and you know we see a huge move on day one right basically that's a hot chick on day one so you can see that move on a Wednesday pre-market here and right at the open you know shoots up and then basically the real idea behind this is we want the stock to become a hot chick on day one to be really extended right and then one stock is kind of crash as you can see here it dies off it kind of died from Wednesday and basically the you know the big thesis behind that is we want the longs to get trapped right so all those you know who are longing here and there here here they are all baggies right and as soon as stocks you know died they became like you know trap here and they would really want to sell any any pops into that the next mornings that's you know the thesis behind the low hanging fruit and so we want a continuation on the broken stock on the day one and we want for it to pop so that we can short the bounce right and once the stock bounce those baggies or those who are chasing longs here they they I mean they pretty much got stuck here right on day one and they want to see a chance for them to pop back and you know to basically kind of get out of that trade and so that's why we always prefer you know the good pop into the solid resistance or support based on that you know that are baggies that who tried along here like here and there they would probably to get out you know bell or like exit into so I'm gonna just gonna put an example here Chris right I mean the stock doesn't pop but the real thesis behind this is we want to draw a clear support and resistance from from the other day right from the day one so what I can see here is as you can see here this is the line you know this is the resistance sorry and you know toss is really acting up lately and I don't know why all the wicks you know late print but you can see here you know I try to use the whole and half dollar mark as well so in this case it's like the stock let's say this is the morning right the pre-market on Thursday that's what we want to kind of you know short into the pops so I would be looking at the first of all when the stock is at 1.8 that you know the first line when I'm looking at is like 2.5 and 3 right so you can draw it down here 2.5 and 3 I mean those are the whole and half dollar mark but you have you need to cope with them with the pivot so I can't tell you what are the pivots on this one as you can see the the pivots are like 231 so you know that's why I said I would probably scaling into this line only way to 2.5 okay probably the next pivot is 3 right so you know it matches my criteria and you know that's a whole and half dollar mark here so some resistance here as well and see some resistance you know 2.8 and you know 2.5 you know and so I want to use the pivot with you know the whole and half dollar mark and those are usually are very powerful and I try to kind of scale into them so the thesis or the plan behind this is really simple you see the pivot here 2.3 right so I'm gonna scale that from 2.3 all the way to like 3 maybe risk over that so let's say whatever like you have I know 2.3 or like 2.5 775 or 3 here let's say you have four bullets right and how I usually kind of trade this is based on this since I'm using trade 0 right and since I'm using trade 0 and locates are you know a little bit more expensive and usually the cheapest you can get is around like 2 cents or something like that so I really don't want to be paying for that kind of amount you know whatever the amount thousand shares or 4,000 shares and you know if you multiply that by 2 cents you know 4,000 shares that's 80 bucks right but I really don't want to locate kind of beforehand unless I'm using cobra like bow Alex or on everyone does that they can get really cheap so I can you know could locate some and just put my fantasy out there but in this case the locates are very expensive for me so I have to kind of you know be careful with that because there are so many hangers on the day right there could be four or five and and if you locating on every single one of them I mean it's kind of adds up and let's say you know four tickers you spending you know on average like 50 bucks it's already you already down 200 bucks right and for you know God knows if that one stock is gonna pop to that line but that's the best case scenario right that's in perfect words scenario and even if it did I mean let's say you have here four bullets right and 2.3 1,000 shares here another 1,000 another 1,000 but let's say if stock pops to 3 and it kind of fill your last bullet I mean you don't really want that to be happening I mean I've been there and I saw a lot of stock that once they pop they do pop a lot more and you I mean it's good to have a line there but but you can have you know you can put your fantasy out there but if the last bullet hit likely I mean you're gonna be really emotional after that and I can guarantee you that because I've been there and you know I was getting up and once the last bullet hit I was like big you know pretty much panicking because I'm in full size right when the stock is up and so how you can how can you you know be able to avoid that you know I've been getting a lot of questions about this is like Tom you know the low hanging fruit recently recently they don't even pop but once they do pop right I got in like you know like full size but once they pop only to one line you know I got in only my starter but you know I got very small win but once they they kind of do pop all the way back you know I'm down huge already you know I'm usually down my full size but I'm winning with my starter size basically I think that's everyone is struggling with and it's no easy way how to say it because I don't know where stock or where it's gonna pop right I mean the only thesis that I have is the probabilities that if it pops from 2.3 to 2.2 like 2.3 here the chances are it's gonna fail right that's all my probabilities but how can I be able to take advantage of that when they come like even what if they are just popped like one 2.5 right it's it doesn't even hit to my three line but how can I take advantage of that and and try to kind of use you know more size on those instead of just like one starter all right guys so I'll see you on next one take care have one 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 I might see 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