 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, Tash, 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. And yes, that is me right here at my trade station. All right, like anything, you know, in life, this is universal. This just isn't specifically for trading or trading under PDT. Before you learn, you know, the basics of trading, the technicals, yada, yada, yada, you have to have the correct mindset. You know, and I put a little table here for incorrect mindset, correct mindset. Some of these are specific to being under PDT, but some are just, you know, trading in general, incorrect mindset. You know, other traders are privileged and are just lucky to have enough money to be over PDT. You know, I know I've had some of that kind of that bitterness like, man, look at these guys, they have huge accounts, yada, yada, yada, no, the correct mindset would be we are all in different financial social classes and it is all relative. You look at somebody who has, you know, a massive account, let's just say they have a $100,000 account obviously above PDT, you're like, man, if I just had that, yada, yada, yada, you know, and let's say you have three accounts and you know, four grand in each 12 grand, then on the other hand, you have someone that's trying to build up their first account and they're looking to you like, man, three accounts, 12 grand, I'm just trying to get, you know, three grand in my first account going, it is all relative. It's all relative. You know, another thought I know I've had and if I just had enough money to be over PDT, I would be profitable. All my problems are solved if I'm over PDT. That is 100% wrong. PDT is irrelevant to my success as a trader. My success and road to becoming a consistently profitable trader is 100% dependent on my actions. PDT is completely irrelevant on the process, the road to becoming a consistently profitable trader. You know, let's say I'm trading one day, right? And I have one trade on the day and then I get stopped out going to the front side and let's say I am, I take responsibility, you know, 99% of the responsibility I take almost fully accountable for that trade, but there's still, you know, that, let's say, man, I know what I did wrong. I, you know, I shouldn't have shorted front side when I have one trade here, yada, yada, yada. I got stopped out, but then I saw the perfect backside set up and, you know, I couldn't take it because I was under PDT. You know, had I been able to take it, you know, I would have been green on the day, but, you know, PDT, wrong. What really happened was, you know, you're supposed to wait for the backside having one trade on the day and being under PDT, you want to go for the high odd setups, but your dumbass got FOMO, decided to short front side and said and got stopped out. That had nothing to do with PDT, right? I know I've done that before. You know, another thought that might pop up, my account is too small. To get over PDT, I must use large size and go for home runs every trade. You know, I have a $5, $10,000 account, you know, I have to get over $25,000, I got to go all in every trade. I got to use, you know, 20% risk. That is completely wrong and that is how you will blow up. A consistent, controlled process is the key to account building. What do all the top traders in MIC talk about? Process, process, process. Those add up quick. In January, I made like $1,100, I believe. I was profitable, but I was using way too much risk, way too much size for my account. And I would have big winners, but I would also have big losers and my emotions would be, you know, heightened because I was using too much size, so therefore my trading was a little bit worse. So, you know, in February, I sized down after talking to Alex mid-February. I sized down and, you know, I was less emotional, so I was able to trade better. I cut my losses quicker, had smaller losses, obviously with smaller size, but I also didn't allow myself, you know, to hit my max daily loss and I was more consistent. And I made over $4,000 and I had sized down. So, consistent, repeatable process is the key to account building. Another, you know, this isn't just for under-PDT, this is just in trading general, but I must trade like the top traders in the room or on Twitter. That is wrong. Trading styles are drastically different based upon account size, risk profile, experience, et cetera. I must focus on the best process and strategies for my current situation slash circumstances. You know, you see somebody like Bao, who's obviously a millionaire trader, super profitable, but look how he trades, okay? How are you going to do that? You're going to channel trade. I don't know anybody else who trades like Bao, right? Like, look at Alex. He trades way different than Bao. He's also super profitable and then look at somebody like Tosh. Tosh only really trades front side. You know, if it's like a chat room pump or whatever, but he just waits for the death candle 90% of the time and hits back side. So, you have to understand for your current, you know, your current level, you don't need to be trading like the top guys in the room. You have to understand the process, learn the fundamentals and the basics so you have, you know, the core, the fundamentals, right? But if you're just starting out, you're just trying to build your account. You have an understanding and you start trying to channel trade like Bao, you're going to be all over the place. You're going to be like, what the fuck? How does he do that? Right? So, that's another important one. All right. Let's get a little more exclusive to PDT. Setting yourself up for success. So, choosing the right broker. If you are short biased, trade zero is virtually the only broker equipped with all the locates you need. This is on the short side. Venom is good, but unfortunately doesn't have enough locates. You can't, you won't have enough locates to trade the strategies we trade with the stocks we trade if you're short biased on Venom. If you're long biased, Venom is the best option under PDT. But you can also, I haven't personally used them, but I've actually heard good reviews about CMEG. They are offshore, but you know, I've checked them out and everything I saw was they've had really good reviews. There's no PDT rule if you want to long. So, if you want, check that out, but it doesn't have any locates for short. So, that's only on the long side. And with trade zero and Venom, you can scale in and out of positions. I believe Joe Kelly goes over this in his PDT video, so check that out. You can have multiple entries and multiple exits. Other brokers, you can only one-shot buy and sell. Trade zero and Venom, you can buy, buy, buy, sell, sell, sell, sell, right? All accounts. So, I'm just being honest. It will be extremely challenging to build an account with just three day trades a week. Parentheses, if you are in the developmental stages of trading, your focus should be learning the fundamentals slash domain knowledge of trading, not account building, right? So, if you have three day trades and you're still trying to learn how to trade and fundamentals, yada, yada, you don't need a bunch of trades, right? Your focus isn't on building your account. It's just getting a process and trading down. So, ideally, you want to split your funds into three accounts, four, if possible. Two will be difficult, but it is manageable. Obviously, the more trades, the more opportunity, the less stress you are about hitting each individual trade. But I have three accounts right now. I actually just made a fourth. Ideally, you split your funds into three accounts. Two will be a little tough, but one is just extremely hard to build an account with three day trades a week. I'm just being honest. Side note, they're my dogs. An individual cannot have more than one account at each broker. And trade zero is really the only broker for shorting the stocks we trade under PDT. So, if possible, have a family slash close friend, someone you trust, create an account for you to use. Obviously, you have to fund it. And if you have gains, that person will be taxed. So, let them know you will give them money for any tax they have to pay. Be careful if they're using government assistance. The government can see anything. So, yeah, don't be an idiot. Don't go on Craigslist searching for someone to make a trading account that I can fund. OK, don't don't be an idiot, you know, and my dogs won't show up. So the realistic drawbacks of trading under PDT. Adding to a winner. If you want to add to a winner after you have already taken profits, this counts as another day trade with backside setups. You can have a large or full size initial entry, initial entries. I'll go over strategies in a minute. But, you know, if you believe it is an A plus setup, it is up to you. If you want to realize gains, then add, which would be two trades or add sides without realizing gains, you know, that's still one trade. I know a lot of people recommend. If you are over PDT 100%, you want to realize gains before you add to a winner, right? Otherwise, it's technically not a winner yet. Like Joe Kelly, a low hot trader, they all recommend realizing your gains before you add size. That is definitely the safer way, but under PDT that counts as two trades. So if it is your A plus setup, you know, it is up to you whether you want to add size without realizing gains. That's kind of, it's kind of tricky, right? Because under PDT, you know, you run into this problem. Another problem I've run into personally, multiple max daily losses. You know, assuming you have multiple accounts and obviously you want, you should, everyone should have their max daily loss set. You're going to like set max daily loss to a little over two R per count, you know, three to four R, you know, is acceptable for an account over PDT, but with multiple accounts, you have the potential to lose six to eight R in one day, both max losses hit, you know, usually you don't have trades every day on each account. Like I have three accounts. Like usually I'll have trades in one or like one in each account. Like usually not all three. So one in like every two accounts, one in every two accounts, one in like two accounts. Sorry. But think about it. Like I've done it before where I've hit a max loss in one account. And then I went over to my other account and then hit a fucking max loss there. I've done that once. I was an idiot. But you know, you have multiple max losses. So if you set it at like three to four R each account and then you go and, you know, God forbid hit your max daily loss in two accounts, then it could be, you know, like eight R in one day. So you're going to have to set it lower. I do a little bit over two R per account. So if you're risking a hundred dollars, like put like two 10 for slippage. Obviously, there's less opportunity and room for error under PDT with limited trades per week. You will not be able to take advantage of every opportunity. If you lost this per week will further lessen the amount of opportunity you can take. That's why you want to focus on high probability setups. Also in decent market conditions, there's usually at least one play a day, which is more than enough opportunity. All right, let's get into some strategies. Strategies to avoid under PDT. I knew this is the short side. High risk to reward setups. Wait, what? I thought we were supposed to focus on high risk. They are not high odds setups and you cannot afford to waste trades on paper cuts on the way up. Okay. You can't afford to strike out a few times if you only have, you know, a few trades a week, right? So you're going to have to focus on high odd setups, not high risk to reward setups. So you want to avoid most, if not all, I avoid all of them front side short strategies. So first resistance short you're going to want to avoid, parabolic short you're going to want to avoid. The slow and late strategy that Aloha trader goes over is an exception to the rule, right? You can do that one under PDT. So the best strategies under PDT are high probability setups. Backside short strategies. Death candle, death candle, and more death candle. First red days, low hanging fruits, overextended trend breaks. You want to go after the high odd setups, right? And I'm going to go over a few strategies. Some PDT tips. Taking the easiest setup with multiple opportunities present. I've made the mistake before if you know seeing, you know, a really, really large gap or day one and then maybe like another day two play, which is kind of has a little bit of range. And I know I'm not going to make that much money on it. But I know I have, you know, I have a chance to make a lot of money on this, this day one huge gapper, right? Go after the easiest, more high probability trade. Okay, go after the easiest setup when there's multiple opportunities present. So little tip, if you make more than three day trades at trade zero and are labeled as a pattern day trader, you can request a reclassification on your account the first time. Anything else and you are screwed. So, you know, if you accidentally go over three day trades the first time you can fill out a little reclassification form and then they'll kind of give you, you know, a mulligan and let you trade again and you don't have to fund it over 25,000. So this is kind of a little thing to keep in mind. If you have a smaller account, your immediate goal isn't to build your account past 25,000. I know myself and a lot of people they're like, oh man, I have, you know, $8,000. I got to get over 25,000, yada, yada, that's so far away. But just look at it like this. So if you have one account, let's say you have 3K, ideally you want four so you can risk a little bit more. Trade zero minimums are 25,000 to open and you have to hold it above two grand. But let's say you have one account, 3K. Your goal is not to get to 25K. Your goal is to get to 6K to open a second account. You know, if you have two accounts, 6K, your goal is to get to 3 accounts, 9K, et cetera, et cetera. Just keep that idea on the back burner. Your goal isn't to make money, it's to trade well. The money will come. All right, so this is ticker COCP. Ran from 50 cents to highs of 250. First red day setup. All right. So I had my key levels mapped off from the previous day. There was some chop, but I mapped out my key levels. I used volume profile and I kind of just put this here. This was the VPOC. I believe Joe Kelly has a video on volume profile as well. You can kind of see where all the traders are positioned and where there's back holders. You can see this nice volume node here. And this red line is where the most volume was traded on the day. At that price level, 225, I'm going to take that off. So I know most of the back holders are positioned in this area right here. Also, it closed at 220. And first red day, my plan was a rejection of red to green. And then maybe add some below VWAP or a rejection of the psychological number $2. All right. So what did we have? You know, pre-market it pushed and as soon as we open, it tested red, green, and then look at this nice slam candle, right? On nice volume, $818,000 on a first red day, a gap down day. That's solid. Some nice range on it too. So immediately when I saw this, I got my red to green rejection. Nice slam candle. So I knew I wanted to add on this bounce. I added onto this bounce. I believe I added some in here, I believe I did. Or maybe I added some down here when $2 was rejecting. Another nice little tank below VWAP. Okay. So this is a 30-minute chart, mind you. So I got what I wanted, the red, green rejection. Nice slam candle. Then on the bounce, I scaled in appropriately. As we can see, scaled in right here. Some obvious weakness. Just try to push back up, boom, right back down. And then when we broke to clearly we're not, we don't want above 2. Nice whole number. I added some in here. And then my covers weren't the best. I was looking to swing some just because how overextended was on the daily. Thought maybe we could push a little bit lower. But yep. So I added in here, scaled the bounce. And then I covered, covering at the chart supports from the previous days, as well as just psychological half whole dollar numbers. I covered most into this. I was looking to swing some more, but it didn't really break down. So let me see my covers over here as well. And that's the first red day setup. This was a day one trade. Yes, you can play day one trades with PDT setups. My favorite setup, death candle, right? So it was a big gapper, VT, VT. It's a piece of shit. It's a known piece of shit. You can check the filings if you want to. But I knew that coming in. So we look, you know, just gets everyone out. Any early shorts just pushes them out. Chasers, boom, break free market highs and flushes back down. And then look at this weakness from 423 to 356 in a few minutes. You can look at multiple timeframes as well, just to really narrate the death candle. Look at a five minute look at that. A book I would suggest is volume price analysis by Ann Kohling. Check it out kind of goes in depth on volume in conjunction with price action in the candle. Look at this boom stuff. Look at this stuff bagged. They're all bagged and that's a beautiful candle. Look at that volume, 3,661,000 five minute candle. And then look at this weakness below VWAT, below this pre-market level, bagged everyone. There's not a lot of shorts in it because they just got squeezed. And now you can get in there, you know, risking you don't have to, it would be stupid to risk high day, right? You can risk, you know, four bucks, scale risk over four or five. Look at that. This would be a death candle or a simple short, right? Executions, look, I wasn't trying to, wasn't trying to hit the front side, right? You know, okay, I'm going to scale this area right here, cut it over pre-market highs because what, boom, stopped out. There goes a trade. Now I have less trades than I already do under PDT. Patient, patient backside. Boom. Look at that. And now you have your high odds set up. This is a three minute chart by the way. Dumps, bags, everyone, death and scale in the bounce. Covered, I shorted a bit more. Covered, covered over here. Death candle, PDT trade, day one trade, high odds trade, take it. All right. Do a DX, code X, one of the leaders in the coronavirus sector. And I didn't get involved with it at all on the front side. I wanted to wait for the first red day. Like the first wave, like I think it was a month ago when coronavirus first popped up. And we had some, some sector plays. I got completely fucking tossed around in that. That was my first time, you know, really trading a hot sector. And I learned a lot. And I think I, I think I had like five red days in a row. And then this week I had five green days in a row, all green, just from learning from last time. And, you know, I was getting just fucked up, trying to play the front side of that. Now I know just wait for the first red day when there's a hot sector play. And that's what I did. This is green, red. And I mean, the plan was simple. First red day short, get some in when it first goes red. And then usually what happens is they don't just like, you know, go red, just touch red and then just rip through. Sometimes they do. But, you know, a lot of times there will be like kind of like a like first bounce, like a first load of rejection. So I got some when it went red, got some on this bounce. And then when it went red again, I put full size on. And all I had was 200 shares, still keeping my risk management in check, right? I didn't want to go stupid size and then have it, you know, bounce a little more than expected, then I would have to stop out. 200 shares, that's all. I blew one of my covers. I had my cover at 1080. I had it at like 11, but I moved it. You know, I kind of fucked up there. But let's see if we can kind of... So red, green, green, red was about 16, 1596. So let's look at this. So 1596 was green, red, 50 shares, as soon as it went red. Anticipated that there was going to be a little bounce. Like usually it touches, you know, green, red, it might have a little rejection and then it'll flush again. So 50 shares at 1650. Then when it went back under 50 shares, 50 shares, and then I covered into the panic. First red day setup, or a low hanger on VVUS. All right, so we have overextension the first day. Let me show you down the daily again. And we're not looking to be the hero on day one. Unless we see, you know, a death candle and overextended trend break. Some backside plays. We map out our key levels from day one. This is quite a big range. So these are the only, you know, two levels that stood out to me, you know, level right there as well. But previous close and we open and then we push into support. Previous support becomes resistance, right? And we have all these back holders and everyone in this range who, you know, when price gets there, they're like, all right, here's my chance to get out because it opened up below the support, below where most the traders are positioned. And we push and they all sell and it comes back down. More supply, all this overhead supply and day two, usually less volume, right? So less demand and a lot of overhead supply. Equals a fail. So look, zoom in here. This is another kind of nuance of the setup that you have to keep in mind. I think Joe Kelly went over this, actually learned this from him, studying all the webinars, which you should all be studying. You don't want to put your orders, you know, even if there's a line right here, I mean, you can if you want, but you don't want to put your orders super close to the open, right? So if you were thinking, you know, start at red, green at 338, green, red at 338, and it's opening at 330, you might, you know, you don't want to put that there because the first few minutes can be so volatile, as you see, it can just blow through it, right? So you definitely want to wait a little bit of outer lines and you don't want to put, you know, you don't want to put your orders too close to the open either way. Just because this first few minutes can be so volatile, it can just, you know, just rip past either way. So you want to keep that in mind. And I actually, I didn't have a great, some great entries on this because again, I kind of got in a little too close to the open and you definitely don't want to chase these on day two. A lot of the times they hit SSR and then they'll rip up some a little bit more than expected. So you can scale this, I don't consider this front side, right? A day two broken down, scaling the pop. I don't really consider that front side, but if you want, you can wait for confirmation, right? Like you could have gotten in here, right? But here are my entries. You see, I kind of, I got in at, this is a three minute mind, you're 330. And then I did get in light size, so I was okay. I don't know what I was risking for this trade, but I'm sure I don't, I generally don't scale huge ranges. So I'm sure I was getting nervous when it was up there, right? Which there's really, there's no need to like, wait for the, wait for the real push. Like it was too close to the open, so I did chase a little bit, followed a little bit. But yeah, that's the setup, the day two setup. And you'll see the exact same one. I think it was the day after this on can. Same thing. If you try to short this day one, you're going to get destroyed. Look at this trend, this trend. And we open down here, the trend is broken. Everyone is trapped. So when we get a pop, you know, it almost touches support perfectly. What happens? Tank, tank, right? So day two setups are really money. But you also want to make sure that the trend is broken, right? You don't want it neutral. You want it to be bearish. You want the trend to be broken. Like, because then you can have something like GNPX. If it's not clear that it's, you know, the trend is broken, then you have to wait on day two for the trend to break. And then you can attack. So yeah, see, see, look, this is, this is, you know, if you can't tell if the trend is broken or not, then you have to wait until it is bearish. Because look, it opens up right here. It's still, it's still kind of in the middle of the range. So you're playing this day two play. Of course, this sounds a little bit hindsight because this usually, you know, it's kind of, sorry, very far. But you want to make sure the day two play, the trend is already broken, right? Like, look at these key support levels. It's well above those, right? And then this just, it just ripped everyone. So you want to make sure the trend is broken. It's not bullish, obviously. It's not neutral, but it's bearish. Wait for that tank and then you short the pop. 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.