 Good afternoon, everyone. This is Melissa with the stockswush.com and welcome. Welcome to the Stock Swoosh Trader Spotlight. Today I am spotlighting Edwin. Edwin actually is a brand new trader. He's never traded at all until he met up with me and he's been doing very, very well. So I have Edwin here today. He's going to go over staples. This is a really nice play that he did back in November and it was the day of the earnings here. So Edwin, tell me what you liked about this play here on November 20th of staples. Here's the daily chart. Good afternoon. Well, the reason why I liked it was because as we were looking at it, I rated it according to your rules, the gap rules that you taught me. And it rated high enough, even though it wasn't gaping, during the pre-market activity saw that there was some weakness in the stock. So that confirmed the fact that the stock was going to start going down. So that's what I liked. The weakness and the pre-market activity, it was showing weakness. Now what about this overall chart here of staples? You can see here, I mean, as Edwin was pointing out, the weakness. Here is the full-on picture of this going back since 2000 and end of 2000 and end of 2009, you can see how at one point, 2010, staples was all the way up here around 26. This hasn't been able to lift itself anywhere, anywhere over 20 for like the last two and a half years. And in fact, I'm looking back here, it looks like it was, what is the date on this? There's a gap back here a long, long time ago. This was May of 2011. High of this is 17. And look, I mean, for all intents and purposes, this has held very, very well. And staples is a nice chart here that's definitely lower. You know, Edwin is new to day trading. He's not swing trading this, but certainly Edwin could be in this for swing trade to a bigger target because it's working out very nicely and still showing a lot of weakness here against the market. So what was your target here on this, Edwin? And then we'll go over the trade that you did. Your dream target on this and the target, what was it? If I remember correctly, it was like 1480. Yeah, let's see where it went here. 1487, where was the 1480? Yeah, here was the 1480. It didn't totally, totally got there. I got one in seven cents and broke the whole number, which was, which was good. Now, Edwin, do you trade only in the morning? Do you trade the afternoon? When are you usually done by? I usually trade in the morning and I'm done early by like 11, 12 latest. I'm usually done. That's Eastern time. Do you live in a different time zone or? I live in California and Los Angeles. So I'm done every morning trading by latest nine. That's good. West coast time. Uh-huh. What time do you get up then? Your time? Civic. I get up at five in the morning. Wow. Standard time. So you're, are you in the room every day by eight? No, I get, I roll out of bed at five. So obviously I have to like brush my teeth. I don't remember what time I've seen you in the room, but I know you're there before nine. Yes. I'm showing you in the room by latest by five, uh, five 30. So that's good. Five 30 on there. Now let's go over this train here that you did. What was your entry price on this here? This was the day of the earnings on the 20th. Uh, the entry was, uh, 1544. Do you remember the time? It was around, I think it was like 930, 37, 30 around there, 36. Okay. Yeah. Here it is. Here's the 44. Here's the, this rallied up here held 1550. And then here was the entry here. So you could have done it here in this bar, this one here, or here's 936, 937. Yeah. Here was the sandwich. It did a sandwich here, which did the confirmation you could have hit it here, or you could have hit it back here. Do you remember where you put the stop? Uh, the stop. Actually, I don't remember. But if we look at this, um, Do you remember how you sized yourself? I did. Well, that will tell you then based on your risk, how did you size yourself for that one? Like how many shares did you take? I took 500 shares. Okay. Well, then it was probably a 55. It wouldn't have been past that. Cause you're doing a beginner risk, right? Correct. Yeah. So here's the 51. So you probably had it, you probably had it right over here. If you took 500 shares. So 44, you probably either had it at 51 or 55. It might have been less than a $50 risk actually. You probably had it right over here, over 50, 1550. Do you usually give things two pennies or three pennies if the spread is a penny? I give it the three pennies that you taught us. Okay. Okay. All right. So you had 500 shares of this. Okay. Good. And you always put the stop in, right? Correct. As soon as I go into any stock, I go short. The next thing I do is actually cool in my stock. Now, are you doing hotkeys or are you doing your mouse? Or how are you taking the positions? I'm using hotkeys to take my positions. Is that working? Good. It is. It's working good. You know, I took some getting used to it because I had never done that before. Like you said, I'm new to trading completely. But I found that it was easier instead of doing it with the mouse, trying to click here and there and changing everything. All the sizing, I figured it was a lot quicker just using the hotkey. Now you bring up a good point here about the sizing because you're brand brand new. Are you using the cheat sheets I gave you? Or are you good with numbers in your head? Like how are you doing with the sizing? In the beginning, I was using the cheat sheet because this was completely new to me. It was foreign. And now I'm actually getting better at it. So once in a while, if I really need to look at the cheat sheet, I'll look at it, but now I'm kind of doing it in my head. That's great. That's really, really good. So have you been getting filled when you press the button early like this? Are you having issues getting filled or are you getting filled and what ECNs are you usually using? Well, basically there's times where I haven't. And that's when I actually set up a more hotkeys to for more ECNs. But for the majority of the time, the majority part I do get filled when I want to get filled in. And you're using a limit order, right? With the cushion? Correct. It's three cents. Okay, good. Okay, good. Now let me ask you one thing. Because you're so, so new, are you fast on the button here to get in where you want to? Like, are you sometimes like, miss it? Like, if you know you want to see it and you see the setup, are you getting it as soon as you see the setup or sometimes you're hesitating or are you hitting it? That's okay. Sorry about that. That's all right. But I was saying, are you, are you hesitating? Are you taking it like right when you need to in the moment when you're saying it like right at the reversal time? Are you hesitating like a little bit and getting it late? No, I usually don't hesitate. My first couple of trades, I did hesitate a bit, but now as I'm seeing it happening, I just go in, I don't hesitate at all anymore. Okay, good. It has to do with just building some confidence. Like I said, this is foreign, it was foreign to me. So the more I started trading and the more I've been in the room with you, I noticed my confidence going up. So that's why when I see something and I like it, I go ahead and just press the button. I don't hesitate anymore. Okay, that's good. Wonderful. All right, so you did this here and then what happened? Where did you get out of it? At $14.98. If I remember correctly, yes, $14.98. Okay, that was right. So basically you were looking for $14.80. It came down here, broke $15. Broke $15 by seven cents. It's getting into the 10 o'clock reversal time. Yeah, that was the right thing to do because then it went one penny of the previous bar is high. It's $9.59. For all intents and purposes, this could have been done and you're so close to the target here. It doesn't make any sense to stay in it. It looks like it did go down here like $0.89 more or something, but that was a good exit. That was a really, really good exit actually. That was a perfect entry and a perfect exit. That was a really nice trade. So that was a solid amount of money there in basically half an hour, just trailed on down. Yeah, I'm saying this here. Yeah, I want to say this was actually one of my best days trading. That's great. It's motivating me to continue doing it. Yeah, I do have my job, but I actually want to do this full-time myself. So I'm just working my way there. Like I said, I am new to it. I know by no means I'm doing my other job right now, but you're doing the right thing. Yeah, you're doing the right thing. I mean, you can see if you add like one more zero to the share size, what it could be with the money. You know what I mean? And that's how you have to think of it every time you go back and say that keeps motivating you to, you know. And definitely I do do that. I like risk. I take risk all the time. And I see that it's like, I want to go ahead and just, you know, risk more than what I'm risking right now. Just because I know the outcome, how much more money I can be making in other words. Right. But I'm just taking it baby steps. Now let me tell you some, let me ask you something. So after this trade this day, did you take another trade or did you stop? Did you shut it down? Did you book the money? Pat yourself in the back and say, I did fabulous. That's it. Or were you like, oh my God, I have to take another one. I'm going to have to take another one. Or did you stop then? What did you do after this trade that day? Like were you 100% satisfied? Or did you feel like chomping at the bit? Like you had to do something else. Did you give some of this money that you made back? Or did you say up that was fantastic and stop? What did you do? Yeah, I was happy. Okay. I was happy. I actually stopped, but honestly, I actually wanted to continue trading, but this is something that you spoke to us about, you know, having your goals and making sure that you don't get greedy as well. So I figured I made a good amount of money for that day in like half an hour. And I said, I'm done for the day. Granted, I did have the urge to actually try and make some more money. But like I said, I just held myself back. It's be able to, it's good to be able to restrain yourself in other words and not trade. Cause then like you said, you can give the money back instantly. So, but yeah, I stopped after that trade. Yeah, that's good. I think because you've never traded in your life before you met me, I'm trying to teach you good habits, but like if you are a person that has ever like went to the casino or gambled or whatever, trading can kind of be like that. Sometimes we feel like you want to keep going back in, back in, back in, but the goal is to really keep what you make. And that was a really nice trade Edwin. So, so good job. I mean, I'm looking here now at this, this here's where you got out into this market. This is the five minute. It actually did rally back up and set up again, but it never broke the low. So really you got out like pennies from the low of the day. This thing never went back down. Then never got to the 80 cents, 1480 number. It did set up again, but she would have only made like 10 cents in this, not even, and then it would have trailed you out here and see here. The whole thing was done. So the total bulk of the move was really done by 10 o'clock in the morning where you got out, you know, right in here. So overall, you know, when you're getting up in the morning, like, do you find that you have something that you like? Like, are you all ready with your pick by like before nine 30? You're like, what time in your mind are you like, I know I want to trade this today or I know I don't like anything this day or like, by what time are you mentally prepared? Like, you know what you're going to do before the open. I like to say usually by nine, well, six o'clock Pacific standard time. So within that half an hour that I'm in the room, and I see what you're looking at. And then I rate on myself the gaps. I see something I like. And I know if I'm going to actually be taking it by like nine latest nine 15 because I don't want to be scrambling and trying to find what I'm doing by the open. Okay. So how long do you think that you're going to stay on track with your risk size? Like, are you doing like a three months, six months out? Like so you can show the consistency, like in your own mind before you start upping it, like how long do you need to be doing trades like this with this amount of risk and showing the results until you go to the next level to an intermediate. I actually want to do it now. Because I see the success. So that I wasn't going to do that until January. So starting the new year. Yeah, that's good. Yeah. Yeah. All right. That's a good plan. I think, I think first quarter earning season 2014 is a good, is a good time to, is a good goal to look for. Yeah. I would just stay on track here now because you're doing well. And, and you'll just keep absorbing information every time you do trades like this and, and you can go back and review them. Do you ever go back and fill out that tracking sheet of reviewing like where the low of the day was, where you got in? Do you ever go back and look and see how you could make improvements or things that you did or where ads were or anything like that? Actually, I do because something that I really don't do is the ads. Like I'm still new. So I do go back to try to figure out where I could have added more. But like I said, since I'm still new, I'm not doing the ads, but I do review them once in a while. I wouldn't say every single day, every single trade. But if I don't get around to that same day after the market closes, I do go back to eventually and take a look at it. Yeah, that's good. I mean, I'm just seeing this here now. I remember I did this here on the one minute low had to stop over the resistance, then did the ad here, but you could have done it here, which you did. And then you could have done an ad here. I'm seeing this here. Here was the ad here actually into the 945 reversal time, but then you would have had to lower the stop because if you had taken more here and kept the stop over here, then you would have been risking more than your stop loss. But actually you could have done the ad here at 33 and then put the stop here tight over 40, but you did the right thing just staying with the trade because you're ready positive. Cause by this point here, this backing up here, you're still positive because you were in it at 44. It backed up to 40. So really, since you took it, you were never down in the trade, which is actually the way I like to take trades too. Yeah. You know, to be at right of ways in them. But I think, go ahead. No, yeah. It's, it's motivating when you see right away, you're going green, but then there's times where, you know, I do struggle with it in the beginning when I see that it's starting to go against me and trying to hold it. The stock. I'm not talking specifically staples because obviously it didn't, but I did. I have found that pretty difficult. But like I said, now with the confidence that I have, I don't mind if it actually pennies for my stop-lots. I don't care. I just wait and I have my stop-lots for a reason. If I get stopped, I stopped out, but at least I know I did what I was supposed to do according to what you taught me. The rules. I'm following the rules in other words. So do you find when you're up like a little bit and it starts to back up, like, are you like just, do you want to take it off so badly? Or are you like trying to really just let it follow through its natural course? I see this guy here. This is, it was a weird little bar that happened here. You followed through this obviously, because this was a jerky thing. This was before it broke 15. Like when stuff like this happens before they break on off and go bigger again, are you getting concerned or you're more used to it now and watching the reversal times for the reversals or how are you handling it? Are you like, oh my gosh, I'm up. I have to take something off or. In the beginning, I was very nervous and I felt like I needed to take some of it up, but I believe since right from the beginning, I never did. Now I really, it doesn't really faze me. It doesn't bother me. The fact that it's starting to go back up, but I, the big thing I do look at is the reversal times. If it's starting to do, go again through on a reversal time, then maybe I will consider taking it off. Just follow the rules like you taught me. But now, like I said, since I didn't do it in the beginning, I just let it take its course. And yeah, inside I want to take some of it out so I can be green on the day, but I don't, I just leave it the whole stock in there. I mean the whole trade in there. I don't take any of it out. Okay, that's great. Very good. Excellent. Well, thank you so much Edwin. It was great having you today. You're doing very, very well. And I think it's exciting that you didn't know anything about the market at all. You're doing this. Got to say thing. You'd like you said, you definitely are a risk taker. Are you going to be doing this? Cause you did the class and open up in a live account immediately. I think you were on the demo for like a week. Yeah, actually it was. It was a week and then the following week, I actually started trading live. Yeah, good for you. Well, that's really exciting. I'm very, very happy for you. And I'm glad you're doing well. Have you, have you retaken the class since the first time? Or are you planning on doing that or? Actually, yeah, I did take it. I retook it on the following month. I believe it was a following month, but I took it right before I actually went live. Okay, good. Offer the course and then that Monday, since I retook the course, I actually went live. Oh, well then that was good. Yeah. That helps to reinforce the information. What do you think is the most thing that gives you conviction? Is it the gap analysis? Or is it when you see the entries like hit so quickly in the morning, like what really makes you feel like you can take the risk like the gap analysis or when you see the setups live? Honestly, for me, it's the gap analysis that makes, that gives me the conviction. And then once I just see the setup or it's just reinforcing it and it's confirmation, but basically, yeah, it's a gap analysis going through the rules, the points that you give us. And that's how I feel my conviction. And then obviously now that I've been on the room with you for a bit, I would like to assume, and I think that I can actually see some of the weakness myself already from the start college has been trading over the past couple of months. So, but to answer your question, yes, it's the gap analysis. Great. Wonderful. Terrific. Well, thank you so much, Edwin for being here today. This is Melissa with the stockswush.com with Edwin. He's in the trader spotlight here with Staples and maybe we'll hear some more trades from Edwin as he continues on his journey success into 2014. He wants to up his risk already. So we'll see if he can stick to his plan here until January. I'll stick to it. Thank you for having me. You're welcome, Edwin. Have a great day. Thanks, everybody.