 Like I wanted to bring up. Oh, Shara Singh is still in AO. Anyways, the topic I wanted to bring up is everyone that's listening. I know some people left. Here, these are targets for AO if you're still in it. Actually, this looks really good. It's so weak, it's not even barely moving, which is good. And I'm not saying this gets to 16 at all. But I'm saying 16 would be a dream target. And quite frankly, any number with a 16 in front of it would be a good day here. So anyways, let's talk about the topic. Whether you're day trading or doing options, whichever one of here is day trading, I think. I think some of you though are here and you're not doing all the day trades, which is fine. You know, some of you don't want to do the market when we do them. It's expensive, I get it. Anyways, long story short, whenever you're doing any trades at all, whatever choice you make in the trade, you always need to let the trade play out. That's just like rule number one, I believe. Now, when I first started doing options and back and forth, back and forth, I was like, okay, well, actually not even, not even. Cause when I think back, when I first started, in my mind, I always was like, whatever I put on, that's it. But then more people signed up for the letter and more people signed up for the letter. And I felt that like not every trade was going immediately. And then I said to people, well, you can kill it with 50%, but to be honest with you, I really wasn't doing that. And it has become very evident to me that really the people shouldn't do that. But the fact is that like, I had a conversation with a person yesterday that made me realize that it's something that this is a classic, classic, classic problem for traders from since the beginning of time until now. And this guy has not done the class, he's on the newsletter, he just signed up. When you take a trade, you wanna make a lot of money and everybody does. Now, how are you gonna take a trade and make a lot of money? Well, even if the trade works, the only way that you're gonna make a lot of money is what? Well, there's two ways you can make a lot of money in a trade. What's the two ways you can make a lot of money in a trade? Somebody tell me. There's two ways you can make a lot of money in a trade. How? I'm not doing a section for myself. I'm trying to give some information here since we're sitting here, but it's actually only me and Shower Singer. Risk a lot or what else? Size risk a lot and what else? Carl got it, quick fall if you're in a short or rise if you're in a long. Well, not necessary, not quick. Big, big, big, big, big, big, big. Well, Brent's saying short stops, but that's the same idea of taking size. It's the same idea with the sizeness. You just size up. So it's a 10-cent stop. You still have to take size to make a lot. Anyways, the size of the move, size of your position size and size of the move in the stop. Like for example, again, no one here did this because I wasn't here and didn't call it. The option worked in Facebook Monday, but let's just, I mean, let's just, let's just for show, for shits and giggles here. If we had known at 9.30 or whatever time I called this trade, let me go back. What was Monday? We didn't know that stop was gonna go like that that day where that entry, we couldn't have gotten a better entry and this is what we tried. No one did besides us. We got the best entry of any trader out there alive on Monday, it's a great call, but we got out like we do normally. Let's say you shorted this at 173 and I'm just throwing numbers out there just to make it easy for myself to give a point. Say you shorted it at 173.50 and you put the stop at 175.50. I don't think those were the exact numbers. I don't even remember anymore. I have to go back and look. But anyways, just pretend that you did a $2 stop in this. Pretend you did a $2 stop in this and you took 100 shares, which you would have risked what, $200. $200, you would have risked. Now just work with me here, which is a low small amount of size. Hold on a minute, okay, this is fine. Say you did that and you could look into an hourglass and see on that on the day, I knew this was gonna drop for the option, but say you could look into the hourglass and look and see on the day this was gonna go, let's just choose the low of the day. Let's say 161. Say you knew it was gonna go to 161. 173.50 minus 161 is $12.50 times 100 shares. You could have made $1,250 by risking $200. So in that case, it was small size, big stop, the stop wasn't small, small size, but the move that the stock had was very, very big. Huge. Now let's say you were willing to risk $2,000 and you had 1,000 shares of it, you would have made what, $12,500? Risking two grand. That's a lot of money in a day trade. I'm talking about a day trade, not an option. A day trade, that's a crop load of money for a day trade and you would have had that profit by 10 o'clock, 10 a.m. within 30 minutes. Now you would have had to risk $2,000, which certainly is a lot to risk in a day trade. So the reality is that everyone wants to make a lot of money, but the only way you make a lot of money is if you have a big move or big size. So we're all clear on that. And Facebook is a good example because you could have made a lot of money doing that, holding it down with the big move, whether you took small size or big size, but even Mr. Smith, if he was sitting over here, if he had done that trade and took that out and got out of the low with a $200 risk, he would have been wishing, wishing after the trade, even though he would have been thrilled that he made $1,250, he would have been wishing that he had taken more. He would have been wishing so badly that he had and the next trade that I would be called, he would decide to take more because he would say, well, I've got to take more here because I can take more. I can risk more than $200 on my account. I want to take more. I want to make the big bucks. I could have made $12,500. And instead of being happy about the $1,250 that he made, he is like thinking about the other money that he didn't make. Are you going with me here with this thought process? Is everybody with me? So Mr. Smith takes the next trade and he risked $2,000. He has the $2,000 in his account to actually take the trade and he can take the size of it, whatever it is, pretend it was a small, small cheap stock, whatever like yesterday's, and he does it. Now remember, he booked $1,250 in the previous trade in the previous day. The next day, he decides to risk $2,000, wanting the big bucks, wanting the big money. Guess what? That trade doesn't work. That trade fails. Just like, by do it, stopped out. Then within one phenomenal, phenomenal, phenomenal trade and just one normal stop, which happens because not every trade works, no matter on the options letter of the day, trade's not every trade works. And then the second trade, and all of a sudden, now he's down $750 for the week. Pretend it's Tuesday. Monday was the one, Tuesday was the other one. And he loses. And now he is down $750. He has a small account. Pretend he has five grand in the profit account and he actually had increased that 5,000 to 6,250 and now all of a sudden, he's got 4,250 left in his account. Not only does he not have the profit from the previous day's great trade, now he's actually down in his actual cash to open the account since he started on Monday. Are you with me so far? Now, when you say, well, what's the win ratio? It's 50-50. Well, 50-50 isn't bad. 50-50 can still be profitable, but not if your size is off. And actually, if you have a high win ratio system, you're still gonna lose money if your sizing is off, if your sizing is not correct. Because inevitably this trade that you do something different in with size will be the one that loses. It's always the case. So then when you talk to Mr. Smith, he said, Mr. Smith, why did you do that? Because I wanna make the big money because that trade before works so well and I see your system works malice and I wanna make the big money. Yes, I understand that, but you can't take different risks with different trades. So it doesn't matter how good the system is, you can't do that. And it doesn't matter even if you can afford to do that because the fact is that even if you can afford to do it mentally, emotionally, physically and financially as well, it will chip away at you and most people. So it's not good to do. It is not good to take more risks than you're comfortable with. Now, somebody else, Mr. Bob Billy Joe, may be fine risking $2,000 in every trade and perfectly fine with that. Perfectly, perfectly fine with it whether they work or lose. But Mr. Smith was not clearly and then went off the rails but he made a big mistake and he shouldn't have done it. But he really wanted to make the big bucks. So then the next trade, guess what? He risked $200, he makes a normal trade and makes what, $200? His account still now is not back even to his original cash. Now he's got 44.50 in the account, my commissions, whatever. He started out with five, he did three trades, two worked, one lost and he still doesn't have the original cash. So do you see where I'm going with this? How traders think and how it is. So then they never go back to what, they never get to the point where they want to risk more or can risk more or do risk more because they're never comfortable with it because they just really can't and it's nothing about being able to afford it. You could have $500,000 in a retail account but the fact is if you're not okay with taking a $2,000 loss, you should risk $2,000. If you feel like you need to kill a trade that you just put on and now I am going to talk about the options. If you take a trade and an option trade and it doesn't go right a ways and you feel the need that you want to kill it because it's down 50 cents and you paid four bucks or maybe it's done a dollar and you paid four bucks and it's only worth three and you paid four and you risked two grand and you're down a buck in that and you like freaking out because it didn't go right a ways like Facebook then you risk too much. I don't care if you have $20 million in a retail account. You risk too much if you freak out then you can't let the trades play out to even go on to work. Now this isn't about taking a trade that's up and missing the exit. This is about just taking the trade, putting it on. It didn't even go yet. It didn't even work. It's down and it hasn't gone yet. It has two things that it can do. Either one it's going to work or two it's going to lose but either way getting back to what I was saying before about putting stop losses on trades. I just don't think it's a good idea for people to do it but if people want to be conservative because they insist on taking big sides for the one however many Facebooks work because they want that big move, the $12,500 trade then the fact is that they have to be and if they want to cut the trades off that are starting out down then they're gonna, they're probably, I don't know what the results would be but my guess is that it's not going to be a good idea because the fact is that they'll get the big wins but then when many, many trades work they will be out of them and have suffered losses in trades that not only were not losses were wins. It's the same thing with day trading when some of people kill trades or don't put stops in. Now I've found that the people that don't use stops or have a problem with stops really don't end up doing well. Now, something like Baidu, this wasn't like woo, you know it just went like, and this is gonna go, you piece of crap. Look at this, I'm not doing this again but this is absolutely a piece of crap but the option's gonna work. So revenge trade the option but the day trade I'm not gonna do it again. Anyways, something like Baidu, that just, that didn't go shoo like that but sometimes that can happen and you get stopped out and it just goes shoo like that and it's like woo, thank God I got out of that and even if you get like a cushion out of wherever you wanted to get filled it's like if you didn't get out, it's like woo, you know, you could have lost another $3. Now that Baidu was not like that but the fact is like that there are times when those things happen and if you don't put a stop in at all, a real stop then you can get hurt and you don't even, this isn't even about taking big size this is just about the fact that you didn't put the stop in. I'm describing you before you fix your sizing, yes. But I think it's positive that you're doing trades on your own Brent. I think that's very positive. Like I didn't like this but you did it, you made money. I think that's positive. Actually, did you get out of this here now? I hope you are because it did break nine. You just got a gift here, $8.92. I hope you were out of this, Brent. But anyways, I'm giving you a kudos for doing trades on your own, even if I don't like them. But I'm saying you're wanting to do trade after trade after trade after trade, I think is problematic. And the reason you do is because maybe your size isn't what you want it to be but doing five trades isn't a good idea or three trades or two trades. Like if you did this trade and you made money, be happy. I think it's good that you're doing things around. I think that's fine, you're going with your own conviction and that's all healthy and positive. But I don't think it's a good idea to trade, trade, trade, trade, trade and very often, lately in the last month and a half you do a trade, you make money when you do another trade, another trade, another trade. And unless you do the one trade and it's three Rs and if the second trade fails, you're still up two Rs then every time you do a second trade and this is my philosophy too, if you do a second trade and the first trade works and you have your goal for the day or something, anything, good money, decent, whatever. Like if you take a risk with two grand and you make a thousand bucks, that's a thousand bucks. Like that's good. If you risk a thousand and you make $500 it's $500, you know. So I mean, I think that that's fine but if you risk and you take a trade and you take one trade and it works and if you risk a thousand dollars and you make a thousand dollars, if you take a second trade and you risk a thousand dollars and the trade, second trade doesn't work, guess what? You didn't make any money and you just gave back a thousand dollars. So that to me is why I say do it, stop. Boom, boom, boom. And if we're doing more than one it's probably because we stopped in the first one. Where did this go? By the way, 63. You're arguing then about that now. You have $24 on the Apple option. I think you mean Disney. Are you talking about Apple or Disney? I don't know what you're talking about. You, okay, you wanted to hold the trade and he wanted you to get out for 24 bucks. Well, how much was your risk? Exactly. How much did your risk in the Disney and what did you spend and I know you're up $24. Actually, you were up more probably into the open this morning because it's kept up. And my guess is you paid about three something. Okay, you paid four. So you paid, you spent $400 and you have $24. See, I wouldn't get out for that. I wouldn't get out for that. Besides, this looks good. It looks good. So why did Ben want you to get out? Oh, this market's so tricky. He's a trickier, trickery, dickery dog. He says green is green, philosophy, but you do have to give trades a chance to work. And if you want to look at it, that trade isn't even up 10%. That trade was up 5%, 5%. I think that's like, it's like, do you know what I'm saying? He wants to get out with a 5% profit and a good trade. I don't think that, I don't, I think that's too small. Anyways, getting back to the story, I'm trying to finish here with you with a story about size. Trying to thought. And then I gotta go because I need another cup of coffee because this day's getting late here. Here, you could, gosh, we do more of this here. Five by 90, 35 by 90, 35 by 90, you can take more. In fact, just put an order out. 1735, you can take more of this if you want and put the stuff at 1790. And that should hold. I'm quite frankly, this really shouldn't back up that much by that here either. Put an order out if you want to do it or hit it when it does it. Now, let me just double check this here. And I guess we could theoretically put it over 18 just to be safe. Wait till the lower of the stop till 35 here. Just hit, it just hit. Okay, let's do this. Let's put it at 1810. 1810, stop, pull it down and you could take it again or you could take more of the AEO. Now that's gonna turn out to make this day pretty good. This goes, just a little bit of everything here. Here you go, here's the numbers if you wanted to do another trade. Let me just write these in the room. You can still do this or you can do an ad. Target's the same. Okay, what was I saying? Anyways, the point is though that you can have it both ways. So this new guy on the options letter is talking about this and talking about this yesterday. He was freaking out because the trade was down 90 cents. 90 cents and an option that costs $4. You can have it both ways. You cannot risk a lot and then when it doesn't go right of ways you can't then kill the trade. Same thing with the day trades. If you take a trade of 931 or 935 or 936 and the trade doesn't go right of ways and you're down until 10 o'clock you can't just kill the trade. The stop is in and with the option the amount you risk is the amount you risk. You can't have it both ways. You can't risk a lot of money in a trade, okay? And then if it doesn't go right of ways you wanna kill it or be nervous about it if it's down right of ways. And there was one student in here I've emailed him a couple of times. He hasn't come back. He was notorious for not putting in stops and taking huge size. Like the one day I remember he put in the size he took. It was like twice the size that I took in the trade and I thought, what the hell is this guy doing? And he wasn't brand new but he was within six months. He just was trying to get a fast move in something taking a giant mango size and getting out. And that is absurd. You have to allow trades to work. Inevitably we will get the Facebooks and we will get some Facebooks that we get more than the Facebook day trade that Monday. But again, that was just like, just fell out of the sky on a Monday and it was still a good solid day actually. It was a lot easier of a day than today was and yesterday was nothing. So, you know, ultimately you have to be consistent with what you're doing with your size. It's great to say you wanna take a lot of size but if you get nervous, if you can't stomach it if you kill the trade wouldn't stand right away or you don't wanna put a stop in or whatever then you have like the answer is clear. Back it off, back off your size. It is nothing to do. Nothing to do with how much money you have whatsoever at all, nothing. You'll never get to the point where you can actually grow your account if you have a small one unless you're aware of that. So it's important. But even if you have a lot of money it's gonna create serious havoc in your mind if you really can't handle it. And this gentleman, I know can't handle it and I told him 55 times. I don't know if he's gonna listen to me. So we'll see. But it's clear to me it's like a disease with traders for that. They want it both ways. This just doesn't happen. It's not realistic. All right, what do you wanna do? No, unless something says that something is wrong but what would that, what would that be? So, I mean unless something says oh my God something's wrong and I can't even think of a trade like that to even say it. To be honest with you. So set the risk that you're okay with the risk. On any trade you take. Once in a blue moon we might kill a day trade that I say ah and we kill it. But really not with the options and it's just really the way that I've been calling them. Probably I'd say the last year but seriously definitely the last six months where they just full on flat on aren't working or they are full on working. So why not give it a chance? But it's sometimes they don't work the exact day that I call them and that's the point with him. Like he was freaking out yesterday because I called a trade and it was down slightly. It was literally within two hours. It's like okay, this is silliness. But it really stemmed from I called a really nice call in this and I think it was a lot easier to capture the option trade and move in this than the day trade because it just kept dropping if you let it on and just went you know with day trading you have to be much more nimble than option trades but day trading the money comes much, much, much faster. And the nice thing about day trading there's pros and cons to both but the nice thing about day trading is you know exactly you're never going to sleep at night at four o'clock when the market closes not knowing what's gonna happen the next day. Sometimes it works out in your favor as many of the trades that I've called have and then gap and then continue direction of the trade that I've called and that's what's been happening the last six weeks which has been really good for the letter. I you know my eyes been very good lately but with day trades you can sleep at night cause you know well I made $552 or I lost $552 you know like that's it. And so you know that's why you have to be okay with your risk. You never lose more than you pay for an option that's correct. Now you wanna make sure that you exercise it before the expiration date if you're up or you'll end up you'll end up if you like if you bought a call you'll end up buying it but that would only be if you're up otherwise if you were down it will go bust but there was a situation in here that happened recently this year was what happened with one of the traders and she was then forced to buy it and she had to come up with the money or had a margin call to come up with the money to buy it cause she didn't get out of it but it was up. That's not gonna happen if you're down though. So the only money you can ever lose in a day trade in an option trade is what you paid for it. In a day trade really you could lose as much as you could possibly lose because between 9.30 and four those trades are on and you must get out before four or then it turns into a swing trade in which case your margin is two to one and you have no idea where the stock's gonna open the next day and you may have a margin call just to stay in the position or they take you out of it the next day and you gotta get out before four and also something can move against you on the day in a direction against you and if you don't have a stop in it your losses could be unlimited. Now many, many places have risk management so they will exit you out of a trade but actually if you're at a retail place that really isn't the case even though they do have risk managers it's not the same. Like, God what should I even think? Like you come, here let's look at this, you come, that day that this happened here, 4.16, crap I'm not gonna be able to go back that far. Nope, I can't. I don't know when this happened and I don't know the time and I don't know the second but I know this happened on the day and this didn't happen in the gap move. I think this move happened at like two o'clock in the afternoon or 1.30 in the afternoon I don't remember, I can't go back. So if anybody can go back in this chart in the intraday chart in the one minute or 15 minutes send it to me on this QCOM on this day because this is a good example I'm just gonna go back here and look at this. Actually no, we have to take this whole off for you to see it. If you were short QCOM before that move and you were in a short position in say you were short as a day tree and you were short position in QCOM on that day the 16th the stock wasn't a downtrend and if you would have done anything that would have made sense you would have been shorted or you would have done nothing but saying I'm just making a pretend example if you were short QCOM on that day in the 16th the day that that news broke, whatever then if you didn't have a stop in you lost your whole account like say you walked away went to a meeting, came back and didn't have a stop in it was you were gone like you lost a million dollars like because the stock was literally like down in here and then it went up to 71 it was late in the day I don't have the chart to look at the time but this is an example where if you didn't have a stop and if you were shorted and some people might have been shorter because the fact is that the stock was trending down I definitely wouldn't have been long in here I wouldn't have shorted this on the day because of the setup here on the day of the gap but if you hadn't had a stop you would have lost your whole account absolutely and no one would have gotten you out of that in time to save you I don't even think the risk manager as a prop place would have they would have killed you with your trades eventually you would have just been out but I think that move happens so quickly so unexpectedly on news that it like nobody would have had time to get everybody out anyways like to kill all positions and then you would have been upside down and that is what happens to people and that is what happens to many people that blow through their accounts it happens so often that you don't even know how often it happens buying putts are costs for the actions letter so anything else I don't even deal with anything else so you'd have to talk to the broker about that but I'm not calling the streets anyways all right I don't know how everybody goes shower singers in this with me looks good did anybody do the second train? in fact this looks really good