 Thank you Fausto for the terrific Introduction, I hope I can live up to it. I want to thank you for having me here. Let's also thank everybody for coming and Being part of the presentation. I think you're really gonna like what's gonna happen in this next hour as well as the next couple of few hours My presentation is going to be on six effective ways place stops That'll be the beginning of the presentation where I will show you a number of different ways to Place stops There are no perfect ways to place stops I mean if you think about it place stops and just the way to get out of something that's not working out or in any case Of course preserving a profit, but in generally it's a it's a defensive posture. So Sometimes it seems that there aren't very good outcomes when you play stops You get knocked out and then it goes without you and so on but they're a necessary evil in the in the Trading world because you you need to prevent yourself from taking a large loss That's the most debilitating thing when it comes to the mental and emotional issues of trading and of course as fast I mentioned my my my focus has always been on the mental and emotional of issues mental and emotional issues of trading if you think about it 91% at 92% of traders Don't make money. They lose or they or they stay the same most of them are losing only six seven eight percent are making money and When I go to large venues and speak and so on and over the years Over the decades. I've also noticed it's probably 91% of traders who don't Give any mind to the mental and emotional aspects of trading. So I put the two together I think if you start paying attention to the mental and emotional aspects and having a trading plan that respects Your attention to mental and emotional aspects Then you're going to do a lot better and actually making a living from this in many cases. So My focus as I mentioned has always been on the mental and emotional issues that for decades and then what happened was that I Realized I was helping traders to be disciplined to trading plans that were just lousy. They didn't have any Risk management posture and no real control to the trading plan Poor execution methodologies and so on and so I decided I would choose To make simple trading plans. I've always been into simple trading plans I'm a guy that likes to make as many trades as I can I believe that that when you get a trigger the way you want it You want to take advantage of as many of those as you can I mean in a 70 30 world or 65 35 world or whatever it is wins to losses you're much better off I believe in Making as many trades as you can and getting through to the next trade getting taking the next opportunity, of course not Not the curtailing a profit when it's running for you. I'm not talking about that. I'm just saying that if something is not working out I'd rather exit and go to the next trade as well as Operating a simple trading plan one that doesn't have so many screens that I don't make it a trade every two years on it so I'm That's my thing mental and emotional control and and making the trading plan simple and then at the end of this Presentation I'm going to give you a simple trading plan that you can work with. I think you're going to find a very very Work very well for you, and then I'm going to invite you to a To be a founder of this particular simple trading plan that I call loaded gun I want you to I'm going to offer you to be a founder at a ridiculously low price that you may want to be involved in as we Even move further into this trading plan to tighten it tighten it tighten it even in its skeletal form that I'll be showing you to you You're going to see some so many very impressive results, but I'm always looking to be even better and better and so That's what this that's what it's going to be all about today. So let's get going six effective ways to place stops what you're looking at here is me on the left and That's my brother That's my twin brother my late twin brother Bob on the right and my older brother Dan in the middle He's a year and a half. I'm sorry. He's 13 months older and just to just to give you a little background on me I'm probably I'm smiling now just like on that picture on the left. I was born To parents that Just my father was in World War two and I got home and they had kids and here we are they we lived in the living room of my grant my father's parents Apartment for two years the three of us And my parents living in my my Grandparents living room they said my mother lost her sense of humor during that period of time and You could probably understand why but I got a very close family There's another brother that came eight years after me and my twin brother. So the four of us are terrific buddies, of course, I mentioned my My twin brother Bob passed away, which I still think about every day. He was the good twin So you're being taught by the other guy today, but then when I was 31 I finally got married I stopped I was in the nightclub business and the restaurant business in the 70s I went ahead in 1979 I joined an auction firm and started selling Makata metals corporation options on This is before exchange traded options on the physical metal on physical gold and silver Makata still is the largest warehouser of gold and silver in the world and I think the large independently held corporation in the world the gigantic and They we used to sell options on their metals before it makes change traded options anyway I'm years later. I ran that firm for you know until 1988 I was a regional vice president for them and had 60 brokers on demand. So, you know, our job was to do as Well by the clients as we can in the world of gold and silver But in 1981 a couple years after I started with that firm I met my wife and of course I was trading during that period of time I I helped the brokers out and then I'd go back and the upstairs and that's not trading It's where I got my first experience trading, but I was all over the place. My wife happens to be a a Subconscious trainer and in our in the discipline trader. She's the one that supplies all the content helps helps the traders With me on the mental and emotional issues helps you to put into your head the things that she should be Thinking about when you're trading and your own self concepts as a trader But it was her that turned my trading around and that's why I I wanted to bring it to the world and started the whole thing the 20 years ago the discipline trader, but again as I mentioned the discipline trader had a Had an issue with helping people stick to Religiously the lousy trading plans. So a couple of years ago. I decided about to to to Have a new focus along with my old focus and that's simple trading plans And again, we're gonna I'm gonna show you one at the end But Tisha turned my life around and hopefully you have somebody in your life like we've been married not 38 years So and we do other things every trader has to have an outlet You don't you know, you can't let trading control your life You have to trade it should be part of your lives not in control of your life What you're looking at are we raise butterflies which we raise monarch butterflies and what you're looking at is a bunch of caterpillars Monarch caterpillars that After they make a chrysalis 10 days later. They turn into these butterflies of which we dry out in these little cages We have and any time you come to my house about one o'clock in the afternoon We'd be glad to have you help us release these butterflies. They jump right on your hand and they go so You know, I you gotta relax as a trader because the trading is intense and And it takes a lot of focus it may say seem like all you're doing is buying and then selling and Routing for it in between but as you're adjusting stocks and doing things along the way things are You know, they they they It's stressful. Come on. We all know that that's why we're here. I guess to also to help Eliminate some of that stress So let's get into the The six techniques that I want to cover and and then I want to kind of show you an application in the simple trading plan The Bollinger, but I'm going to show you more than six and I'm going to go through them because You'll see why the Bollinger bands is is getting to be more and more popular. I just learned about this a couple of years ago the future features of the Bollinger band trading plan or stop a stopping methodology is Riding it rides the favored side of the middle band in the in the Bollinger band You've got the two extreme bands in Bollinger band metal It's a it's a volatility measure and as the markets get more volatile the bands Expand I'm going to show you that in a second and then there's a mid band The average of the two bands rides in the middle of the two in Up and lower bands and it's that middle band is the breakpoint You ride the band you ride the price until it crosses the other side of that mid band The problem with the Bollinger bands is as with many Stopping methodologies. It's it's a little tough in ranges. There's only You know ranges can be tough to play stops in and this is not as effective as it could be here's a Here's a chart for the This is a chart of WTR, which is aqua america. It's a water stock that I the methodologies that I teach you whether it's simple trading plans the The these stopping procedures They all work on any market Whether it's stocks or futures or forex and they work on any time frame in the in all these cases. So here you have the WTR stock moving around it doesn't really matter the price And we're just looking at the stock itself and the movement price each bar, of course I'm assuming here that you're familiar with the candlesticks and red meaning that the that the That we closed on the low of the candle and it's it's red it Closed below the open if it's green it closed above the open But this blue line is the outer is the upper Bollinger band and this is the lower Bollinger band in red and this white line is the midline of the Bollinger band So, you know as you can see the drop here happened you had a you had a Consolidating market here. So the bands were not far from each other. Once this thing dropped the Bollinger bands gave you room on both sides of of the midline of course and as the market tends to Tighten up again the Bollinger bands will come together. So Generally you're taking you're looking for channels like this when you're trading via Bollinger band And you're waiting for a breakout and a widening of the band. So this would be an area where I'm sure a lot of people got caught. This is probably report that came out or something This is not a this is normal for that kind of this is a look that I'm seeing here It's not really normal for it to without some tremendous news where it closes here and then opens down here But assuming you're you're looking for a spot to get into a trade Let's say the market got down and you want to get short here. Okay, you're getting short and in this particular in placing your stop You're going to be placing you're short here and you're placing your stop on the other side of this midline so in other words Wherever the Bollinger band wherever this midline is so you're here So you'll be placing your stop up here because all of this of course didn't exist when you when you shorted the market here You'd be placing your stop here and as the market came down. You'd be moving your stop with each band Above in this case Whatever Whatever bar you're looking at you'd be moving your stop when you got to here Your stop would be on the other side of this bar Well as as the market moves sideways the Bollinger bands are coming together and so of course the midline is is is getting nearer to your pricing and At this point up right here this small red dot here from here to here at this small red dot You'd be having your your stop. You'd be stopped out of this short trade I can see here's another long trade if you've got in for whatever reason here and grow this up You would you'd be breaking the band here But breaking the midline here and therefore You'd be out of your long trade At this point here So it's a simple way of having to stop it respects to some degree the volatility of the market But it can can whip you around a bit When you see action like this sideways, it's always good to think about tightening up your stop Because if it breaks in the wrong direction In this Bollinger band actually did that for you by coming all the way down here by that time So That's what this the Bollinger band is about I would say that as far as distance from the midline give it a few ticks One thing I will state right now is that if you if you're dealing with where to place your stop In this particular case how far above or below the I mean how far above the band in this case a couple of ticks Ten ticks that's up to you. I like to give it a little bit of room five six seven eight ticks increments Tick increments. I don't like to make it one tick because you can it's it is too easy to get knocked out now Neither one I've seen successful traders do the one tick thing and that's fine because Really you'll get stopped out more but If I'm widening my stop when I get stopped out, I'm gonna lose more money So in the very long scheme of things it tends to even itself out. It's about your own ability to stay positive and it's your own ability to To keep what I call a positive expectation if you find yourself getting knocked out a lot If you take bigger losses than the smaller losses and that makes you feel horrible and somehow it's ruining your your Canter in the market then then you want to tighten you see you may want to think of not taking so big taking More losses, but smaller losses. You've got to figure out what you can handle and what you can't what makes you what keeps you positive you've got to stay positive when you are When you are trading so let's continue the second fit, but this is the Fibonacci level which is one of my least favorite Although it's probably it's used by a lot of especially those that are math oriented and I'm math oriented I have my degrees are in math and somehow though I find that Vibonacci wants to be exact but seldom lands on the on the Fibonacci levels and therefore Supports that that makes sense in the long term. I don't use it But a lot of people do some showing it to you Fib can act as a supporter resistance level during a trend stop-loss methods This particular for a stop-loss trend it doesn't this particular one also doesn't work in ranges very well I will show you one that will and that's mostly the pattern types, but Let's take a look and these lines. I'm sorry. There's a little hard to see. I'm using a different presentation Vehicle I'm on a different computer today But but don't worry too much about it other than knowing that these shadows of lines here are Fibonacci retracement points and you probably have used them before the ones that are popular of point three eight point six two and the fifty percent line in recent You've got a seventy think it's seventy three. I don't use them in twenty three, but you see what happens is you see this This movement up here this move from down here to up here This the length of this a particular up move and then all of a sudden you have a corrective action You say to yourself well, how far is this correction action gonna go? So what you do is you you take your tool and you start at the bottom of them of the of the run You go to the top of the run You let go of your Fibonacci tool and it plots these lines for you and you're looking for the market to To stop at one of these lines and and and and and then look for a trigger to for continuation in the right direction in this particular case if you look at this this level right here, which I believe is the 30 looks like the thirty eight point three eight level and These are you can't see it, but there are wicks that come and hit that line They don't always but and then I showed you one that did sometimes they'll go they'll They'll drop a little bit below a little bit above But the idea is that you need to look at this level as a level that you're going to have some support in on The way down it certainly didn't give a support at this upper level here But it did give it looks like after this steady area here Market drop came up Came back down and now it tested it again here and And survived the test here the fact that you have two bottoms here You know you're gonna be whispering double bottom to yourself and You'll probably take a trade here when you take that long trade here Then you're going to put your stop a few ticks below This Fibonacci level wherever that may be if you have a wick that came below that level here I would I would adjust that to a few ticks below that wick level as long as it's not too far different than the Fibonacci level So and as the market moves higher You're going to move your stop up to in whatever way that you want and I suggest two bars Not one bar a lot of traders like to put it below one bar and as the market expands You put it below one bar and then with this tail you would have been knocked out of this trade here Because you would have had it below this bar And you still would have been knocked out with two bars In this area someplace here So you want to trail your stop at your initial stop will go below here. That's the Fibonacci. This is a This is a southerly But I don't want to confuse you if you're not used to Fibonacci You can study it and deal with it But it's again. It's another support level that you're going to put your you're going to defend your stop on the opposite side Okay, moving averages somebody did come in here that moving averages with the way they like to use their stops and it can give you a lot the thing about is it give you a lot of waiting for a break of the Moving average you give up a lot In other words, and that's true of a lot of stops as I mentioned the market will back up And if you've got a deep stop you're going to give back a lot of your profit so which is why I Give you this nuance. This is my my first nuance. It's a nuance in all of this. I've made four simple trading plans I'm trying to make one every few months. This is again the latest one is is a Loaded gun which is the best one so far and but I want to say that you want to start with two positions You want to initiate your position with at least multiple with multiple positions, which is the minimum of which would be two Okay, because in any trigger whenever you get in on a Trade Generally you're getting in on a trigger that really means that the market is about you know as a reason to go up It's decidedly gone up because of some indication and either volume or whatever you use the That fact usually makes the next bar or two in your favor I say take some profit in those bar to put a little in your pocket and then manage your remaining positions Even if it's just one position in a two-position approach Okay, so I give you that because I don't want to leave without mentioning that I can't tell you how much you'll improve your trading results by trading multiple positions and peeling off the first the first position on the on the initial move on the initial reaction to That trigger. Okay, so In moving averages, you want to watch the moving average slope to avoid a false change of direction I'll show you what that means in a second mostly when I when I give you the simple trading plan That's something we have to watch because that simple trading plan uses a moving average So using the moving average is such a stop It's dynamic it moves as the move as as each bar goes your you're moving your stop because it's moving average And you got to give it some room because moving average really is just an average what I like to use Exponential moving averages is because exponential moving averages gives a little bit more weight to the more current bars So when you're using moving averages and you're using it to or to place stops I suggest you you may want to try exponential moving averages for stop placement. Okay. Here's a this is overstock It's a stock I follow Because it's really in the Bitcoin world They're they use the underlying technology that they're Believe it or not and it's kind of moves it did for a while doesn't really any more use it with Bitcoin But here is let's say this is three moving averages. This is the 200 day moving average This is the 50 day moving average and this is the 20 day moving average. So, you know, just different moving averages That I always have on my charts and I just clip this one off Let's take the 50 day moving average. Let's say we're working where we're Well, if you're using it as a stop, you want to moving average it that hugs it fairly closely Now the 20 day moving average may not be enough for you. I find it good This is a daily chart. So, um, you know, I think the 20 day moving average makes sense If you have more risk tolerance, you want to move the 50 use a 50 day moving average for your stop You can do that. But the idea is that if you use this close in moving average to 20 Then you're you're staying with the moving average And if it crosses on this side the opposite side of the moving average, you were looking at a downtrend So here we are above the moving average. You would have been stopped out with a close stop here If you kept your stop Considerably away from the moving average You know 10 ticks or whatever you may not have been stopped out here So you've got to find the right medium for yourself again matching your own personality but you can see how um, you can see how The market when it's going strong will will will will honor that moving average Here's a here's where you would have been stopped out And uh, not involved in what's happening here. Here's another one where is another short trade here We've got here's a long trade using the yellow moving average where you would have got this is a nice trigger right here I'm going to talk more about this trigger later with a very small body or doji followed by a dramatic move In the next candle. That's a big time signal one of my favorite signals and um So you would have gotten in here You would have put your stop underneath this moving average and and kept it under the moving average as this trade matured And gotten stopped out here. So you would have you would have gotten in here And you would have gotten stopped out here So you would have had from here to about here not a huge trade for all this time that you spend but I will say again that if you follow my my nuance here and Take two positions here not one or multiple positions three four five whatever it is Whatever you can whatever your count size can stand and liquidate One of your positions out of two or one out of three on this first thrust up get out of one here Okay, well you're going to wind up singing and if you do this you're going to wind up seeing that many times not all the time But you know 25 percent of the time you're going to spend a lot of time managing the second Second position and get out at the same price that you took this other one at So one of the one of the trading plans i'm working on right now It's just a matter of taking advantage of these thrusts Which come often and then moving on to the next situation with the thrust But don't go doing that until i've tested it and so on I'm just telling you that that the idea of using multiple positions and peeling it off I think is an idea you need to think about adopting. Okay. Uh now doubles your risk from that standpoint But if you're doing it on a trigger, um, you know, here's another trigger type formation small body At the top of uh, almost looks like a shooting stars type thing followed by this candle leads to another trigger So this is a really good trigger Not to worry too much about it. Now when you put your stop in Uh, you you know, you're going to want to if you're using a trigger like this You want to put it on the bottom of the trigger formation? I'll show you more about that later Okay, so that's what the moving average stops are all about. Here's the fourth technique price formation and price patterns I'm going to move a little faster now. Um, because I've got a lot to say here It rarely goes by the book beware of stop loss hunter, you know People look at flags and form and and head and shoulders Traders are constantly picking off, you know, they call them stop loss hunters I I don't know if they actually exist or not, but it certainly seems like they're out there doing it Um, I know that there were some trading plans by some very negative people They're trying to take advantage of that knowing people are going to put their stops on the other side And a very strong move based on other indications and they just pick people off Uh in any event, I'm not sure that's even but but the idea is that um, you got to give all stops a little bit of room Let's take a look at some pennants and flags And this is not the perfect chart probably to do it But I didn't want to spend a whole lot of time on it other than to say you know that we have flags When you see a count, you know, um, a flat a flag like this we we have a, um, um Consolidation of some sort within with a um a line moving higher and a flat top More of a flat formation on the top when you see a break in that pattern you go with it and you put your stop At the opposing at the opposite side of the breakout line or break down line in this case So you'd be putting your stop up here Um, and as the market matured you'd be using you're following at one or two Bars again, I recommend two not one um, and so, uh That's all I'll say about that. Here's a here's an here's more of a Um a channel right here or a pennant Where you see you see it started to go sideways you join the bottoms now There's a kind, you know, whether you whether you use the wicks ends of the wicks to draw your lines You use the body Bodies I try to use bodies a lot. I use them both. I had to change them if you really want to know the truth I think that that there's um, you know, I think there's some intelligence to both the idea is that Um, I think once you decide on one for a certain approach stick with it Don't go moving it around and moving your stop just because it broke the body and not the wick line Make up your mind. It's like it's like Whether you should take a a hit in blackjack or not either always do it or you never do it If you start mixing it around you're gonna hurt yourself So here's a here's a band that was formed the channel a flag that was formed or a pennant I guess and and looks like we had a bit of a false breakout here And if you had to stop too close you may have been stopped out with a small line But you had another breakout here and another stop out So this didn't really work very well, but you had some nice close stops Maybe and if you had if you didn't have a close stop and you had you stop Closer down here because this is a small channel. You could probably put your stop Just above midway you would have been in this trade all the way until we reached This looks like a head and shoulders. I've given you the arrows shoulder head and shoulder here and so And you draw your neckline Here the bottom of the beginning of the first shoulder in the end of the second shoulder Which was at the bottom of this where I drew it and if it breaks that You're going to initiate a new trade. Well, if you initiate this short trade here You're going to have your stop above the neckline So it's whatever training formation you're looking at you're you're putting in your stop at the At the other side of of whatever breakout line that you used Okay, enough about that and here's a well, I guess it's not enough about that I got another chart of the soy that's soy tends to I find soy tends to work well with with flags and pennants Um, I'm not showing you any breakouts here, but I'm just showing you how in this particular case I I use the the wicks to to draw the line and here I use these two wicks and then I because it It seemed to be coming down the market and See these two wicks were formed this one here and this one here. So I drew the line Maybe looking for some sort of a thing. I never really reached so as we came down and spent time I decided to make another line here's where you start creating a fan Which is something that that I intend to do that straighters with experience will Tend to do and that that kind of gives you another target up here If you do go along here, you can have another you have a target to To maybe take a partial profit and and what may be a resistance Up here. So Some of these lines can be useful in other ways. I'm just kind of showing you that All right, the trend lines and support resistance technique number five Very popular probably the most popular. So it's a self-fulfilling prophecy. I don't know But I tend to think that it can be so again use a little room to To put in your stops Again, drawing trend lines is subjective It's suitable for ranges this particular and you'll see why it's easy to see and Support flips into resistance. That's what support resistance flips I mean, here's the here's the s&p market It's a recent contract you can see the you know the fall that we had in december and then this This movement recently And you can see that once these two now, of course this part of the chart didn't exist when This top happened and this top happened. So I drew the line So happens that it really gave me a nice indicator here Um, this is an obvious trade to take of course because you've got a I usually wait for closes before I initiate trades. I always wait for close So here's something that that was a shooting star Against a resistance area. I mean, that's a short trade if I ever saw one So at the end of this day the close here the open and the next day with confirmation You're shorting this market. You'd be here. You'd be you'd have this market all the way down Then you'd be putting your stop Above this Above the Resistance area. So if it breaks resistance and moves higher, you'd be out But quickly once this bar happened Again that formation. I really like the small head Like an almost a doji in this case the shooting stuff followed, you know indecision Followed by a major decision and look where it leads Let all the way to this down here now what happened is Once this happened again, this didn't exist We got a bottom here. I connected these two bottles. I got two really nice support and resistance lines that look look at this Worked out really well over here gave gave us some action over here So these you know as you extend them out They still have meaning because there's a lot of people at defended positions here for the very long term and Defended positions here and they'll defend them even later What I mean by defending is I'll talk about that some other time but Um, so here we had a here. We had a poke below but it closed within so you know You're still short and but if you were looking to get short You wouldn't be yet here. This would get you short if you had no trade on And then you'd be putting your stop up here if you had put your stop up here and and and did what I suggested waiting for A major move on the downside to take out one position You probably took a little bit of a profit here Maybe waited till it got to this resistant resistance on the way down here Maybe it took out one position here a second position on a three position Phase here and then waiting for what I call lute and lascivious for the rest of it So it came down and you did very you did very well on this and and you're either Trailing it with one position or two same thing on the way up. We have a hesitation here. So You know support resistance pretty obvious, but I want to get to one that that isn't so obvious This is another one in copper. We're we're we're kind of jumping up in time. So I want to Again, this is a trend line connecting bottoms And there's another way to move your stop if you were in on this particular Let's say you say you're in on here on this movement You drew a trend line Market came off that you drew this trend line because you've got in on this Formation here on this jump that took out this high you're long here Now you're going to put your stop below this trend line that you drew Connecting these two bottoms and you're moving your stop You know as it as it comes up along the trend line one other way to move the stop Once you've got the initial stop in here is to Is is to look for these swing bottoms when you see another swing bottom Then you would be moving stop from here to here another one this Didn't look like this started to flatten out here. So it would have you would have been out over here anyway more than likely When the trend line broke so I like to continue if i'm using a trend line stop I like to continue with the trend line because really these bottoms are only going to hold usually if they honor the trend line anyway So All right average true range I want to I want to state it and then I want you to play with it Oh after this is all over and you hear all the speakers and so on You're using an average true range Uh, somebody showed me this couple years ago. I just think it's genius. Um, average true range really respects momentum and volatility. So It's set to you set it to 14, which is a default setting for average true range and you want to have a new calculation and I'll show you that calculation each With each high or low as the move expands Okay, let me show you what what this means here It isn't this is a I'm going to have to state it to you. So you write it down. Again, it's very simple I don't do anything too complicated. So but here's a chart. Just look at the chart real quickly You can see that you know, maybe you've done nothing up to this point But at this yellow arrow, this could have been a trade I mean, you're watching this level right around here where I'm drawing the arrow is holding Held here held here held here. Now you've got a double bottom. You see it's holding here. This is a nice place to take a trade so um I mean, you couldn't join a support resistance line here taking the trade and put the stop under here somewhere But here's here's how to do it with the average to range and I like it because it respects the volatility of the market Here's the formula. You take the close of the entry bar. Here's your entry bar You take the close of the entry bar, which in this case was 147 and 15 30 seconds I probably shouldn't use bonds because we're in 30 seconds. The math is a little uh tough But for it's 140 this bar closed at 147 and 15 30 seconds Well, the average true range during that bar is right here, which is point three five three six five oh if you convert that to um, if you convert that to um 30 seconds you're looking at 12 30 seconds. So it's 12 12 30 seconds is Is the is is what the average true range is here point three six five oh So you double that so now we're talking point seven three. Oh, okay point seven three you double the average true range And and you subtract it from the from the close of that bar So the close of that bar was 147 15 30 seconds. We're subtracting twice Point three six five which is 12 30 seconds. It's 24 30 seconds. So 147 and 15 30 seconds minus 24 30 seconds Is 146 and 23 30 seconds, which is right here Really a nice place to put the stop happens to be right below this wick but um It's a nice place to put the stop it honors the volatility of the market So when I say move to stop when you get additional hot here's a meaningful high Nothing's no reason to change your stop here and then boom we have another stop here. So let's do it again Let's move our stop in this particular case The closing price here is 148 and 13 30 seconds 148 and 13 30 seconds We look at the the average true range during that period of time and it's point four four Which is uh, roughly 13 20 seconds 13 30 seconds Uh, so twice 13 30 seconds is 26 30 seconds So again, you double the average true range subtract it from the close of the action bar So in this particular case, we got an action bar for four on so 148 13 30 seconds minus 26 30 seconds is 147 and 16 30 seconds, which is right here So you can see how that's nice now What's interesting is it's almost the same distance from the close of the bar and here it's the same distance But we have a higher volatility. You think that it would be further away But remember we're measuring it from the close of the bar, which happens to be way up here There's a big candle. That's why this line hugs it a little bit more Even though it's a higher volatility. So it takes a lot of things that can tap Here's another into account. Here's another a bar that I felt was meaningful Well, it took out these highs so you'd be recalculating here and you'd be setting your stop here after that recalculation You'd be stopped out in here So that's a kind of a nice trade But again, if you took my advice and the nuance and the multiple positions you got into here You took a profit somewhere in this bar here as it expanded I like to see when I take my pride I like to see it expand an equal distance to my entry bar because I like to get in on expanding bars If you're saying well, what do you mean by expanding bars Somewhere when I see it's about the size of this bar. I'm looking to take profit. I'm taking it and then moving on Um, so I probably take my profit somewhere in here and then you're you're managing the second position Try this average true range bar. I think you're really going to like it Really going to like it. Okay. I promised you. Well, I want to show you just the last slide Under the last swing low we talked about that for other stopping techniques a time stop If something's not happening If I get five bars in a row that that are going sideways I'm looking, you know, I'm I'm looking to draw a band around the top a line of support resistance around that That range of sideways movement And I'm looking for a breakout one way or the other to keep me in or keep getting me out But um, you know, I'm I'm I'm looking to get out because it's not happening The further you move from the action bar the less that action bar has an effect So, um money stop we talked. I don't know if we talked about 300 I mentioned if I use a hundred dollars or a thousand ten thousand dollars as an account size Small account of ten thousand dollars. You don't want to take any more than three hundred dollar risk on any trade So is it smart to just set your stop at three hundred dollars? A lot of people say no I say maybe there are some places where and I'll show you a couple of those in a second Um, especially after jump triggers what I call jump triggers, which is all I try to get in on um I don't have a problem with doing that for small accounts. It allows you to get into trades It allows you to keep your your your risk at a point where you can handle it And most of the time jump triggers will expand and you'll be able to actually take a one of the trade out trades Out if you use my nuance of two or more positions. Okay, um, and then two bars back I mentioned as the market's going higher Put it at the at the low in the case of an upward move A couple of ticks below two bars back. Okay, so here's the simple trading plan This is now we're going to get really exciting because I just want to spend about five minutes on this and then get you an offer And in five minutes, I'm going to be able to explain this simple trading plan. Okay, here it is Oh forget that first let me explain that the first line here has no meaning Um, I didn't erase that as a nick in the slide Uh for the other slide fits a simple trading plan fits in one on one sheet of paper Okay, it fits on one sheet of paper simple It has one primary analysis technique and then a loading gun that I'm going to give you right now the loading gun training plan Has uses a eight bar moving average. Okay, it has a repeatable entrance trigger I'm going to show you that formation in a second trigger to enter on it's got a defined strategy Okay And um, it it contains a complete contain Trading strategy and it's customizable. I won't get into the last part so much here except for that's part of what the nuances are I will say that um, if you go to the discipline if you go to i'm sorry simple trading plans dot com You'll see the three trading plans that we offer right now in a package for different kinds of markets What i'm when i'm going to show you today is a fourth one that i've developed over the last few months That I think is it could be better than the others I think it is uh, maybe it's because it's the most recent one, but um, I really really like it I think you're gonna like it in about five minutes from now um, because when you in fact after this when you go home when all of these When the speakers are over and you start looking at this simple trading plan on charge You're gonna want to sign up and be a Founder of this because it's very inexpensive and I want you to be part of this because the release comes In in june of this year. I mean next month june is the it was the launch of of this Uh, some particular simple trading plan loaded done But I want you in before so that you can you can play with it and work with it and give me some some Some testimonials that I can share with other people So I want you to be successful with this and so then I can help it could help in my own market selfish But you know, you don't play one third of what everybody less than that Everybody's going to pay less than that. So let me show you what let me show you what the trading plan is Okay, here it is. Here are your rules loaded done. First of all, you the analysis that we're using is the the analysis that we're applying is the Exponential moving average set to eight not nine a lot of places have nine 10 seven eight eight eight eight, okay The trigger is a two candle setup. I've kind of mentioned it a joji followed by an extended candle that closes above or below That moving average, okay So the two candle setup the doji followed by the extension that crosses the EMA, okay Here are here are some clear examples of what I mean by those particular extensions The two candle Movement so you have a doji. This is almost a doji. A doji is where it's totally equal again, I'm assuming really that you know about candle sticks and that The green bar means that the the the close is above the open red means that the close is below the open It opened here closed here and these the wick The the the stick below and above the horizontal line is where the trades occurred Outside of the open and closing range. So here you get this means indecision here. We opened at a certain place We didn't range very much Uh, they're even during the day and we closed about where we open they can't decide what to do with this market Well, the next va va boom they have made a decision and a strong decision this trigger I find could be the best trigger around that I've found And so I I like to take advantage of this trigger. Okay, that's a by trigger. Here is a similar version of the trigger It's a little bit bigger Range I don't like this a whole lot But the fact that it's got a very long tail on one side If this is on the bottom of a run the market's coming down You've got a bottom of a run. You've got this. This is almost a hammer Strictly this wick on the top wouldn't be there for a hammer Um Thor would never accept this as a hammer. So I can't but but the idea is that it's a very small body and um, and it shows indecision followed by a a A movement a dramatic movement higher now. I'd like this movement. I'd like this bar to be more Dramatic, I would definitely like it to be more dramatic, but I can't you know, I don't um I can't have it any more dramatic than uh than this because that's the way it's the way life is. So, um Let me take that away So but the fact that we we're coming off a long candle Makes this more meaningful the pulling away from the candle It's kind of a formation that the market may be reversing if this formation crosses the eighth person um, if this uh the eight bar Formation then I'm then I'm in Here's a cell candle same kind of thing only on the cell side A small indecision followed by a dramatic decision What you got to watch and a trigger like this is that this this doesn't create too much of a risk Because if you're taking a short trade based on this trigger, you're putting your stop above the formation Okay, in this particular case you're putting your stop below the formation below the formation So you've got to measure that Because markets can reverse and take you out too and you don't want this stop to be below your tolerance level. Okay All right, so here's an example of of a setup crossing the eight day moving average um, here's your eight day eight bar moving average. You've got a You've got a a trigger here small body extension followed by Followed by your um extension of the move, but here's here's again. Here's the perfect version of it doji Movement here when I see that I move my stop from here To appear because now I got a new formation a trigger formation if it breaks this trigger formation i'm out So I use a repeated that same repeat formation trend to move my stop in addition Again, I'm taking multiple positions on the first extension whether it be here or here I'm taking out one position out of two. Let's say I do the minimum of two positions I'm taking out here and I'm now I'm managing the final position okay, I'm managing the final position and um and The exit strategy tells me there are the rules say if I get two closes over This line two clothes on the opposite side of the line that second close. I'm out So I don't have a don't have that happening here But I do get a chance to move my stop from here Down to here because I see the the formation again All right, so the loaded gun exit rule again is when two bars cross on the opposite side of the EMA So you wait for the trigger if the trigger Which is the doji in the dramatic bar? Cross a EMA of nine eight Then you're in the trade And then you put your stop in at the top of the formation And then you ride the EMA as long as it'll take you until two bars cross on the other side of it Okay, let's take a look what that means Uh, here's here's a perfect entrance, uh on this is a s and p Okay, here's a beautiful. This is a daily chart of the s and p. I mean Perfect entrance small Small head On this big movement So you're now you're you're in here with two positions. You're putting your stop down here Market starts to move higher Moves higher And you're taking out your first position right around here about equally distance if you're probably taking it out here Now I got one position. I'm managing Uh, no, I didn't cross the line, but maybe it did I get I zoom in and I'm really strict about this I zoom in and yeah, it looks like it did cross, but I need two crosses. No, we're back over. So now I'm I don't I'm two crosses in a row. I should say so here's another one Here's one cross below here is another cross that was actually below So you're out of the trade here even though if you if you kept it on there's a nuance that would keep you in That I've explained to the to the founders But here is uh, you would have missed this but that's fine. We had a big a nice big trade. Here's an interesting I don't like this signal for two reasons even though it would have worked out one is that the risk Is very very big here because it's a big candle and this is not enough in decision for me You'll see this plenty of times So you can you can wait for what you want. Look at this Here's here's one right here that didn't turn out small body even though it's not as small as I like big candle stop up here Riding it down. No not a nowhere to take out that one position One close above two close above you stopped out of both positions right here So you're taking the loss from here to here. So that didn't work out But you've got a scheme to limit your loss. Okay to keep it within your own range. Let's keep going Here's one. There's a soybean love the soybean. You'll notice that certain stocks certain Japanese yen I just had a really nice trade because some of the currencies Japanese yen been Following this look at this repeating the pattern many times over I mean It's amazing Um, you got to watch it But sometimes these patterns can lead to exhaustion when you see this So I'm very careful when I see sideways movement after our trigger But the first trigger uh, usually it doesn't hey, I got four here, but again follow the rules trigger sell to Nothing do nothing do nothing you're looking for closes two closes above here You got your extension. You're getting out of one of your positions here You're holding on to the second position or for the last three positions if you have five or whatever it is You you still don't have a closed boom You made if you had five positions and it took out two here. Maybe you take another one or two here You're keeping it. It's keeping going. It's keep going. Here's you you got scared here two days, but it didn't Here's a close above close below close above close. Oh, you're still in it. You're still in it this entire time unbelievable Tremendous. So this is the loaded gun And i'm saying to you that when you get rid of when you get rid of me today And and the other speakers but not before you listen to them Check these outs on your chart and you're going to see that this is the beginning of something big and I've developed some nuances That makes this even better. Okay, here's a gold trade that I can't really expand with with the format I'm using right now, but you can see here's a small trigger here That got you in all the way down and it happens I I did this because you can see the trigger in many different time frames. This is this is a trade the screen I trade off of here's my you can see I had a nice profit in this particular trade and I got in over here Here's where I got in this This looked like a um, this was a shooting stars looking thing even though It's not at the top of a run and this is an expansion But I'm I've already seen this is a dramatic the moving average is moving down nicely I got in here and this was the profit that I had at this point And and I this is on a 15 minute ticker. Okay, so you can see here's a Four hour four hour ticker and you can see the formation. It's a very very powerful formation But here's the entrance formation is where you get out of your first position. Here's where you're managing it He got scared as hell, but you're looking for that second close and you never got it still in it So take some patience take I And when I take this profit I move my other stop to break even immediately didn't mention that I should have Anyway, I just wanted I need to make you an offer here because a loaded gun Simple trading plan is something you really need to have and I'm going to almost give it away to you here I'm doing this in three classes And you'll get access to all of the launch stuff when when it's launched officially But I'm doing three private classes 10 traders per class loaded gun trading plan explained is the first meeting That's going to be a monday at seven o'clock The last week of of this month in may the second class is tuesday monday tuesday thursday Monday i'm going to explain in great detail over a full hour hour and 15 minutes the loaded gun trading plan in In in total explanation. I gave you some of it today most of it But I need to slow down and really emphasize certain things. I'm going to give you a nuance sheet. They're not I want Also give you the simple trading plan on one sheet of paper after that first meeting now after that first meeting If you're not impressed and you don't think the money that I've I've taken from you It's not worth it. I'm going to give you your money back after the first meeting if you don't see it from there I've had nobody's ever asked for any for the money here on any of the simple trading plans So you won't be doing it, but that's my offer out there the second meeting on tuesday The last tuesday of the month at 7 p.m All of these are recorded okay the nuance sheet where I explain all the to really even um And the list is growing as I just got a new nuance from one of the founders who's working with us and having fun with the system Said hey, you know, I'm noticing I did this I'm making it a new one. So I've I've looked back now It's about to be a new nuance. So you're helping me on this too Um and then a q and a at the end So I explain the loaded gun the nuances and then q and a in the end and then we have follow-up meetings A couple of weeks after a few weeks after I want to I want to you'll always be the founders You'll always have a special place Okay, uh, and it's 10 people and it's on a platform where you can see my face I can see your face. We can talk about it. You don't have to see your face We can we have audio back and forth We can really get into it because you need to understand the plan It's very simple, but I need to you emphasize certain things about it It's going to be released to the public somewhere between 997 and 1497 for you for the founders $297 it's next to nothing. I listen. I'm not belittling $297 But what people pay for trading plans and things that are complicated and don't work I'm I I'm doing this because I want the testimonials and I want I want those people who recognize It may be you'll need a little experience Recognizing it, but once you start looking at what you trade you're going to say to yourself. Whoa, this thing This thing can work. It's what you know, let me get into it. Let me so Do it now because it's I mean take action now I'll give you the link and and then again if it doesn't look like it You know, I'll give you your money back. But again here are the exact dates Monday Tuesday Thursday The last last Monday Tuesday Thursday, they're all at seven o'clock. They're all being recorded. So if you can't make it if you're in You know, if you're in Beijing you can see the recordings of these things Not a fan you'll have access not only to the recordings, but all the other launch stuff after it's launched And you won't pay anything extra. You'll be just like you paid the big money. Okay for the loaded gun founders It's 297. That's the link simple trading plans.com forward slash lg lg for loaded gun. Okay simple trading plans.com forward slash lg I please take advantage of it. I mean Simple is good and I've been around decades and the more complicated you make it the more you're going to hit your head against the wall Simple is good. But the plan of Saving or keeping what you what you've earned in the trade keeping your stops moving to defend Is is really what you should be concentrating on use a trigger that worked and I've shown you one here But that's not it. You can you know, because you can shoot yourself in the foot too with a loaded gun I want to show you how to defend so that you can keep the profit that you make Okay, that's it for me Fausto. I really as always, um, I always appreciate you having me And it's all you baby. Thanks and thank you everybody for coming