 Okay, good morning traders and welcome to the Bookmap ProTrader webinar. Today is going to be with Frank Moretto of Spanglish Traders and Spanglish Trades and we have Frank every Friday at 1pm. He's a weekly streamer here at the Bookmap Discord and YouTube channel. So, you know, great to have Frank and he'll go through his trading activity in stocks and options and also some futures, I believe. So anyway, we'll go through the disclosure and let me just turn it right over to Frank. This will be in Spanish and a bit of English as well. You can ask your questions also in English. Just put it here into YouTube and we'll get to them. Also in Discord. General disclosure, all Bookmap Limited materials, information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Risk disclosure, trading futures, equities and digital currencies involve substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. With that said, Frank, yeah, take it away. Thank you, Bruce. Good to be here again. And like Bruce said, we're going to be in every Friday at 1pm in Spanish. So vamos a estar los viernes a la una de la tarde en español con Bookmap. Alright, so we're going to try to do this in English and Spanish, but I'm going to focus mainly on the Spanish side. If you do have any questions, I'm going to try to explain as I go. Let's get going. Alright, good deal. So primero quiero saludar a todos. Los que están unidas por ahí, I see a lot of people from Pennsylvania, Chile, Miami, and Spanish. My Spanish family from Bookmap, I see a lot of the names que siempre se conectan, la gente que se conecta siempre por ahí. Y bueno, hoy les voy a decir un poquito lo que vamos a conversar. We are going to talk a little bit about how I use Bookmap as a user. And I find these two very, very helpful when it comes to my trading. So I'm going to talk about how I use Bookmap. We're going to talk about how I use Bookmap. And I'm going to talk about specifically a trade that I took with Bookmap. I think that these practical examples always help us. Again, this is my process and it doesn't have to be yours. We're just going to talk. Let me put my camera so that they can see my face. I like that they can see my face. That's good. Very good. Let me know in the chat if you can see me well. There you go. I was saying in Spanish, I'm going to translate very quickly in English. I'm going to go over a specific trade that we took, like some of the criteria that I used to take this trade. And obviously we are going to explain my process and how I incorporate Bookmap into my trading as a user. Again, this is my process. It doesn't have to be yours, but I think it helps to see practical examples. So I chose a trade that we actually took with my group. Let me introduce myself for a little bit for those of you who don't know me, especially on the English side. My name is Frank. I'm a stock trader and educator in Spanish. So I have a Spanish community. You're going to see a lot of the people here in the chat are part of that community. And we are here together. And I trade with stocks and options. So I use, as part of my everyday trading, I do scalping with options as well. So that's what I'm going to cover today. And we are going to look at some of the criteria that I use again. So vamos a empezar por lo primero. ¿Cuáles son los elementos de Bookmap? Tenemos que tener en consideración. And again, I understand everybody here knows how to use Bookmap. Todos saben cómo usar Bookmap, ¿verdad? Pero yo voy a hablar de algunas cosas breves porque siempre hay gente nueva, que está viendo esto por primera vez. Yo creo que es una herramienta fantástica, incluso para las personas que están empezando en el mundo del trading porque le facilita muchísimo el trabajo y les voy a mostrar cómo. Ok, tenemos algunos elementos. I'm not going to cover, pero en detalles. Yo tengo un tutorial de Bookmap en español. I do have a Spanish tutorial for Bookmap as well. If you want to practice your Spanish, you can do so. Watching our tutorial on my channel, Spanish Traits. Pero esto es como yo uso Bookmap en mi trading. Vamos a hablar sobre eso. Y también les voy a comentar cómo establezco los niveles basados en lo que estoy viendo, la acumulación y distribución en Bookmap, como tomo mis entradas y mis salidas basados también en la acumulación, distribución y el order flow recibo y los datos que recibo de calidad de Bookmap. Como pueden ver, no hay mucho movimiento en la pantalla que están viendo porque esto es de ayer. This was yesterday. Yesterday we took this trade. It was a trade with Baba. As some of you know, Baba is a Chinese stock. I love to trade porque tiene, it has a predictable pattern. Baba es una acción que tiene un pattern that is kind of predictable. And I've been trading this pattern for quite a few days already, I will say even months. It's almost a year. We've been trading this pretty consistent and with great results. I chose this one for that reason. So let's look at some elements. Vamos a hablar de algunos elementos. Lo primero que tenemos aquí que tenemos que entender es que el mercado es un auction, donde los compradores y los vendedores están valiendo la redundancia comprando y vendiendo. Y si tienen alguna pregunta sobre lo que voy a estar hablando me pueden hacer en cualquier momento. Yo los ayudo súper bien. Los compradores y los vendedores están todo el tiempo interactuando entre ellos y basado en el precio que están dispuestos a pagar los compradores y el precio en el que están dispuestos a vender esos vendedores se crea la acción de precio y los movimientos de las acciones y de los futuros en el día a día. Entonces, nosotros en Bookmap podemos ver todo eso de manera visual. ¿Cómo se ve eso? Bueno, nosotros aquí tenemos el order book. El order book, básicamente el C.O.B., el score and order book. Y el C.O.B. básicamente nos deja saber cuántas órdenes hay acumuladas en cada nivel de precio como podemos ver aquí, estamos viendo un ejemplo en el C.O.B. Y esto es lo que yo veo para ver dónde están acumulados esos compradores y vendedores en los niveles de precio y basado en eso y el G-Map, que funciona como un mapa de calor, ok? Yo siempre le digo que es como un X-ray del mercado y a diferencia de lo que nosotros recibimos normalmente que son los gráficos de velas esto es real time data en este caso no lo estamos viendo a tiempo real porque estamos revisando un trade que de nuevo yo tomé ayer y cuál fue el criterio que usé, que esto creo que les va a hacer interesante but as I was saying we can see the orders but as well and as I like to call it and rationalize it book map is kind of like an X-ray of the market where I can see everything in the same screen, it's very simple and easy to use. It may look intimidating at first for a lot of new traders but when you get used to it there's so much information you have packed on the same screen again it's easier to look at than other traditional tools and this is very very good. So the heat map allows us to see where we have accumulation where there is either buyers or sellers waiting for the price to reach that level so that they can transact basically where the transaction is going to happen so in los niveles de book map and heat map and sanctions are going to happen or las transacciones van a en estos niveles donde esta mas rojo es igual que un mapa de calor donde hay mas, esta mas rojo hay mas interés en ese nivel de precio. Esto nos sirve como niveles de soporte y resistencia de supply and demand vamos a ver ahora específicamente estos volume dots los volume dots show you transactions that are happening usually in real time volume dots show you transactions that are happening in real time and how big the volume for those transactions is in different price levels this allows to see potentially where the price might be heading based on the accumulation and distribution so volume dots nos ayudan a ver todas las transacciones que pasan even in microseconds y podemos ver donde esta la acumulación y distribución. So ya con eso nada mas nosotros nos podemos hacer una idea bastante bastante accurate de a donde potencialmente puede estar yendo el mercado. So esta es mi sistema. Ya partirla aquí les voy a hablar del sistema de Frank. Ok, eso es sabor. So, tenemos el session volume profile el session volume profile basicamente es para esta sección o para este dia donde esta la mayor cantidad de volume de transacciones. Quiere decir cuando pasa una venta entre un comprador y un vendedor o una compra se registra como una unidad de volumen y eso es lo que vemos aquí estamos viendo donde el precio tiene mayor interés. Ok yo se los voy a racionalizar ahora un gráfico de velas para que ustedes entiendan un poco de donde viene, o sea como yo hago mi mi análisis como uso book, como lo integro a mis análisis. No, so vamos a ir ahora un momento y les voy a enseñar los análisis de velas voy a saludar a la gente que esta uniendo las familias, Sherry, Pelky, Daryl, Charlotte, José, Luis, Miguel y todos los que estan escuchando si tienen alguna pregunta guys let me know if you have any questions si tienen alguna pregunta, déjenme saber So, los entonces la otra cosa que tenemos aquí es el char volume profile y yo lo tengo en el delta esto tu lo puedes configurar muy facilmente aquí puedes usar pues cumulativo, delta enviar los colores en fin, puede hacer un montón de cosas pero bueno yo lo veo en delta simplemente para ver donde esta la mayor cantidad donde estan esos picos compradores y endeores y ya con eso ya tengo una idea mejor de nuevo de donde posiblemente puedo hacer mis entradas ahora antes de yo llegar a este proceso esto es mi proceso anterior y yo lo hago siempre basado en en mis estudios que esto yo normalmente lo hago antes de que abre el mercado aquí estamos viendo ya un poco en trading view déjame salir de aquí yo vamos a regresar el día de ayer porque justamente yo lo tengo ya mapeado bastante bien aquí para que ustedes puedan entender un poquito esta posición que nosotros tomamos esta posición en vava que como les dije la tomamos con opciones ya vamos a hablar un poquito sobre el criterio que uso déjame saber ahí en el chat see I have option traders aquí si tengo if I have option traders in the chat let me know how long you've been trading with options I'm very happy to explain my system like I said I'm going to go back to oops I moved something here I want to go back to trading view now and explain where my logic is and then I'm going to validate this information with bookmap so that you see this information actually comes from and how bookmap is such a big part of my trading so this information I've from the day before so this was this was everything we're going to see here is yesterday not looking at a live action we are looking at a yesterday trade that I took yesterday a real trade that I took with my group in my discord channel so this is this is like an actual trade that we took I was profitable trade and I'm going to talk about what you know how some of the levels were defined by bookmap including the entry and exit of this trade okay so going back I'm trying to translate in Spanish in English so I'm going to see with me okay hopefully I'll give you some time to do the two things but if you have any questions or if you don't understand let me know, I see that all those who are in the chat are Spanish speakers and that's good I see everyone in the chat is a Spanish speaker but do not be afraid to ask in English okay it's fine we're going to do this we're going to say happy family okay do not be afraid do not get intimidated by the foreign language it's all good got you okay alright so um the the first thing that I noticed yesterday and as I was doing my analysis coming into the day is that we had this gap down right here but we had the big drop okay so so again explain a little bit of what you're looking at right now on the trading view end of things you're looking at after-hour pre-market I marked it down so I easily recognize that action belongs to pre-market and after-hour I'm sorry after-hour and pre-market then the same right so we're looking at two days back right now we see that Baba had a gap down and it had a lot of movement around this area and this area served as a top but the price after coming all the way up from 84 level to the 88 level right so that served as a resistance level then the price gap down and the day before Baba had a lot of consolidation around this level so that's why I'm marking the levels and the price fell here if you're looking at this price where I ended up the price was just the pre-market support of the day before and I wanted to show you that in some price levels the purchase psychology or the seller in the case of the resistance is there and simply when the price reaches that level there's more interest of purchase so there's more buying interest around levels that served as a point of rebound in previous trades so as you can see this serve as a support level when the price got to that level it did rebound so what happens is and this is where it gets interesting I usually mark these levels where there's price interest this is based on book map but we are going to go back to book map right now so I just want you to understand market psychology how prices when they reach certain levels and they're unable to break through and they serve as a resistance level that we can keep into account moving forward because market psychology is going to make buyers or sellers in this case want to wait for that price to be there so that they can sell and you know that would allow the price to move down then to support levels where the price and it's a simple principle of trading but just in case I have somebody that's new that's kind of how that works for me looking at to mirando Spanish real quick to mirando ababa so my trade and I wrote it down just like this I usually once I map these levels because we had a gap up then after we had this gap down the price went down to this level 84 and then he did a gap up on news because of the previous day weaknesses I am waiting for this a morning trade because I have seen this pattern before because I know the stock there's a little bit of that I know collection and I'm waiting for that to be to do a push into a level where can come down and then I'm going to pipe that movement all the way down and benefit from that we'll get to the specific trade that I took but then this is what I'm looking at knowing the price action of the stock I'm looking at a potential short from a morning push which is essentially what happened as part of my analysis I wrote this I want to explain to you in Spanish right now I shared my analysis already seeing the price action and having defined some resistance levels and I'm going to map it I'm going to map it so we have a price resistance here and here twice that's exactly where the price did the rebound on the next day I'm looking at those levels not knowing obviously what the price action is going to be without knowing what the price action is without knowing that I'm looking at these levels as possible returns now we're going to book my real quick the first thing I'm going to do is establish these levels and then I write down some possible projections here for the stock so I write down projections for the stock in this case I was looking for a short in a break over the 87-80 this is what my members share so I trade with intraday options which are really highly volatile and have a specific criteria but they're high in returns and allow you to take advantage of market moves and make quite a little bit of money if you know what you're doing but they're risky, they're very risky so you always have to be careful with the size and all of that but I'm going to get to that later market prep I already made notes and I already know these levels they're in the top of my head right now I'm going to go to bookmap now and validate what I'm looking at we're going to go to bookmap because bookmap is real time data and I'm looking at what's really happening in the market this is all aggregated data history of price it's important but not as important as actual price movement so I usually look at real time data knowing what are some of those psychological levels it's important and then you can see those in bookmap as well that always helps going into the day I already have some levels as you can see at 87-80 level has been a support level that then turn into a resistance level so I'm looking at that as a possible first and then even for a move up to the 88 again not knowing what happened during the day so I'm writing all of this down I'm choosing a contract that I'm going to possibly trade of the level what are some of the price targets I want to do this short meaning that I want to make money when the stock goes down as the stock goes down I will make money with this put so I already have this ready coming into the day now let's go to bookmap and let's see how it looks like where I actually took the trade and where I left and how much money I made on this particular trade and I think this will serve as an example for you as well to do a system in place the most important thing for trading in general is preparation execution is fairly easy once you have it well prepared and then this is how bookmap helps me be very well prepared but not only that, execute at a level that wasn't possible for me before and I'll be honest this really had an impact on my profits because it takes a lot of the guesswork away the execution is important but the most important thing is the preparation and this is how bookmap helps me to take that initiative because in trading everything is preparation but bookmap helps me that preparation we did that I just showed you how to execute it with conviction let's look at the price action on that day let's take a look at what I was looking at coming into the day this is the beginning of the day I took this trade very early usually I take trades a little bit later on the day just to make sure the price especially in this type of markets where there's a lot of volatility obviously market confluence is really important and I look at that as well making sure that the spy or the indices futures there's nothing going on in the market that might cause a sudden price move but in this case it's pretty okay day for trading and coming to the day with those levels in mind what I showed you before what happens is I'm waiting for that push I'm not going to get in right away I know I'm looking short but after a gap of there is typically some sort of price push up high in this stock in particular so starting in the day I'm looking for a push and I'm looking for a level of resistance of the price from which I can start to operate what I start to see is that the buyers come pretty strong and then you can see that and the price moves up as you can see, here we had a level marked in bookmarks of liquidity this is historical how you see it this is progressing during the day then we'll see it as it progresses you see how this is changing these colors are going to change according to what is happening in the day so this, as you can see now at the moment I was looking at it this level was pretty marked here there is an accumulation and we saw that in the Core in order book at the moment so when it comes to that price I'm already looking for weakness here is what I have I know the price my projection is low for this price and I have defined my contract and I want the price to come down I'm looking for where the price can rebound this level, this level that we are seeing in the 88, we had it marked also when we look at the the graph we had it marked here these levels in $88 we had it marked from the day where the price again had all this support so all of this you're looking at bookmark right now and this is what you're looking at this actual trade is what you're looking at in bookmark right now we make that connection so what we are seeing in bookmark is exactly what I showed you earlier in the trading view let's be honest this is coming really strong into this persistence level where they are actual sellers waiting to get off there is obviously two potentials here that there is going to be absorption and the price is going to continue going higher we have this other area right here as a possible point of return as I call it a point of return so but I'm looking for weakness any signs of weakness and I'm going to execute my trade so I have these levels marked if because in this case I did get right here I'm going to explain my reasoning for this trade so in this case I had this area as a stop loss over this area obviously as a stop loss and then again as I was sharing before the previous the previous to pour as a target for that trade and this is what I shared with you before I had this these two areas as possible resistance and down here as a target for this trade the price is going to fall the price is going to fall we see that it is going to be quite strong here we have a volume that enters quickly because here in the order book we had a lot of volume over that area and we see it here in fact we can still see it in the chart volume profile there is still a lot of volume in that area and where it has been negotiated in this case we are looking at the data again yesterday it is not real data I am showing a trade that I took yesterday so what is my criteria? I want to see security in the pull back again I will field questions if you do have them in English or Spanish but I can answer questions if you have them in English or Spanish I just want you to know what my logic was and what my process was for this particular trade it is an action that I know quite well so I am waiting for the weakness because I know the weakness is there based on the price on the price movement from the day before so action comes there is a lot of strength all this liquidity that we had here is removed as you can see you can see very noticeably when the price comes here all these sellers accumulated in this area are leaving you do not have this liquidity here does not mean that there was that level that was removed from there the price there is where the weakness begins so here is where I start to see we have several volume dots showing again a lot of sales volume the price falling I am not going to take the trade right away because it could potentially push again to do a pull back at some level and start going up again to give it a higher level so I am going to wait calmly to see a definition of the price again both in the Veras Graphics as here in Bookmap that breaks the level that the sellers are really taking control so at that point I am going to take the trade I took this trade in the BWAP Break so this is the BWAP we can see it in the Graphics where BWAP Break I took that trade I had quite a downside I took it a little bit later I took the trade based on Bookmap but I took the trade either way because the weaknesses the weakness was very apparent at that time to me looking at the Graph obviously we are looking inside and it might look different to you but at the time it was very apparent and you see the actual weakness happening after the price get to this price resistance even though there was a strong move going into a price obvious weakness coming out of that price level that's what I usually look for in Entry I'm going to go back to the Veras Graphics because we have it a little more visible so I took the Entry right here the contract I already had as a preset already since the beginning of when I was doing my market analysis this is what I was looking at I was looking at that weakness around this price level 87-80 level and then I was going to take the trade I waited for the obvious weakness to be there and then I took the trade when I saw the third candle right here on the Biwa break as I broke Biwa that's an indication to me that my trade is there obviously I have to look at risk reward like you do, there's always the possibility of this trade turning back on you at its trading it happens all the time so you just have to take what you see and what you feel in the market at the time so I took the trade there and then now I'm going to talk about where I took the trade I'm going to go back to Spanish I took the trade on the break of Biwa I took this trade because of contracts basically I'm paying a premium a little high for volatility but a trade that I have a lot of conviction usually I like to pay less for the contracts the options are quite rich if they have strong movements and I'm going to put my first price target around 20% which is this level if you look here we're seeing this level which is 86-67 we're going to go to book map 86-67 is this area I took my trade and in this area I have this liquidity that is formed here you can see it here visually in book map that helps me a lot so on this level I'm going to take my first profit 80-86 75-86 80 level I'm going to take my first profit because we have one here from where the price re-bought in the pre-market and that serves as a level and we're seeing volume and orders in those levels at that moment and I'm going to look for a possibility that the price re-bought from here and continue its movement but here I'm going to take this in that trade with options it was more or less 20% I'm looking at taking that 20% if you trade with options intraday options are highly volatile trades in general you want to take profits when you have them you don't want to risk staying on the trade too long tend to go for the whole round 20% return in any investment in any case especially when you do a 10 minute trade 10 freaking minute trade it's a really really good return and I'm happy with that and as a trader we need to exercise that caution to understand what the risk reward is and how quick you can displace that revenue as a business man you don't ever want to displace revenue and as a trader you need to know the risk reward you need to understand that it's a business and that 20% return in any business is enough and especially in a business that we're doing in 10 minutes who wins 20% return in a business in 20 minutes you need to take care of the size of the position you don't want to take on too much size because again these are highly volatile trades in which in any point you can lose up to 50% of this contract and the price moving away from you very sudden and that happens in the market so you don't want to do that with options you always have to be careful with that that's the reason why a lot of the traders lose money with options because they don't understand the risk reward maybe they come from trading stocks where the volatility is different where the risk reward is different and then you have to take into consideration all of that. I would share my criteria I'm going to share my criteria about what I look at when I'm going to choose an intra-day contract to make scalping with options and then I'm going to share that but let's get to this trade so going back to trading real quick, I'm not sure because I know a lot of you are familiar with candlestick charts to make sure that you see the differences what you can see with bookmap and what you cannot see with candlestick charts and whatnot, it doesn't give you any indication as you can see some of the levels that I had thrown out those areas got respected by this trade it not always happens that way exactly a market is not perfect but you can project with a high degree of confidence when you do this took the trade around this level, again in bookmap we have this really accumulation we had a volume there was an interest there was an interest from the buying side on that level so I cannot see that here but in bookmap I can see that so I'm taking my first profit there I'm taking the bookmap position in that two candle I already made again because this is a high volatility high risk reward trade so as the price then consolidates in that area for a little bit and I'm looking at the one minute chart here you see that it tried to rebound but the weakness was evident and I'm looking at my next level at my next price level as you can see as I shared before was 86, 90 86, 50 then 86 86, 85 levels so which is this area right here that was kind of my target on this trade I exited the trade earlier why did I exited it earlier than I normally do okay I saw I saw the potential for this again it's a stock that gap up I am pressured obviously because you had a big gap up you're trading the other side of the trade this time I see that as we reach this level then we have this candle over candle move a little bit weak okay on the weaker side I get it so when I take my gain here and I'm making sure the profits and I see that if the agist movement continues I'm going to stay in a part of that position looking for agist movement when I see this candle over candle here I mean candle over candle although they are not candles I decide to take here the rest of the position and how much money this trade was specifically about $68 per contract 34% very happy with that again you can make a lot more but you don't want to get in the habit of chasing trades or waiting too long with options options are like kind of like handling dynamite or like a time bomb from the minute that you purchase a contract you are exposed to volatility you are exposed to market direction you are exposed to so many things you have to learn the right way to trade options so especially when you do intraday options are not like your traditional ones okay so again very very profitable trade price was respected if you look at what happened with the price because we had another trade which I didn't take off this double bottom right here that I wanted to but I had a meeting and I couldn't trade but this double bottom right here that was the 85-82 level let's look at it in book map there have been another potential trade here right you can see this double bottom here so as I take the exit of my trade when this push happened again in book map you see how the price got there I wanted to try to rebound I wanted to stay a little bit but I wanted to close this trade as well with the profits so I wanted to close this trade with with Aloy says I know now what Spanglish means nice language welcome to my world my friend and welcome to the channel as well yes this is really what Spanglish it actually is more complicated than that I'm just to translate me a little bit or not but thank you for that don't make me laugh, don't make me laugh don't make my day and greetings to the people who are there holding the English and the English without a barrier but well another trade that we had here that I would have possibly taken a trade that I could have taken off the double bottom is this one we had a price the weakness continues until it reaches this level when it reaches this level the price makes a rebound attempt but compare the size of the volume dots in the fall with the size of the volume dots here in the push apart from this where there were a lot of strong transactions it starts to create immediately this top here I don't see any liquidity and suddenly here in the book map you are seeing how that liquidity is in that area immediately so what is happening? they are making a roof there basically you can interpret it like that it's not rocket science so you get a little bit of accumulation here people waiting for the right time to maybe short the stock open a short position from that side or even just sell out of the short position this here I'm not waiting for price weakness on that level this is a trade that I didn't take this is another trade we already left the trade 34% but here I'm seeing again that a new roof is forming this roof is weak because it doesn't show me that there is a lot of strength but again I'm waiting for some weakness so when the price falls I'm waiting I'm seeing that I already have the strongest level the 85% but we still had this that we have to overcome it this level is the double button that we are talking about the double floor and when the price drops this level we have double bottom here of the weakness you see how this little price resistance here was created you can visually see that in book map you cannot see this on a candlestick chart because it happens real time we are going to see the changing colors for the heat map because it's real time data so waiting for weakness then around this level I'm going to see absorption meaning that this accumulation that was here this volume that was here waiting when it got absorbed by the price and then immediately you start seeing that candle over candle on the chart but then you start seeing how this start moving the upside as I break this level right here I have a long entry in my opinion tell me what you think as I break this level I do have a long entry conviction happens there is obviously some price resistance there but I do feel like if I look at the candlesticks that I showed you before Miramos el candlestick that I showed you before you are going to see this 86th level and then even down to the 85th level was a previous support for this price so we had a strong support from previous days so good to take a long entry over BWAP on that maybe a little bigger here so you can see BWAP cross the test of that BWAP then I take the long would have been a very nice little tray I broke this level went back to the level where I took the tray before broke through that level broke through that level again to the 88-20 level let's look at the chart let me see what the 88 level is let me show you real quick 88-20 you see it let's go back to the previous day that was the previous day support for the price and then you had the resistance on top 88-45 the previous resistance that ended up being where the price finally in the long entry again of that double top that double top ended up stopping so I would have taken another long that I didn't take because I had a meeting I couldn't do it I would have taken another long on the free test of BWAP with the price target on this top that would have been a very very profitable nice tray to take criteria to choose contract options and then I'll take some questions my criteria for choosing intraday option contracts is very easy rocket science I am a very simple minded trader not fancy but it works for me and that's what I do it that's why I do it so I mentioned earlier I want to share a few criteria when choosing these time bombs as I call them these intraday highly volatile option contracts so I want to talk specifically about that because the criteria is going to be different from choosing maybe an option contract for LEAP for swing trading very different very very different so I'm giving you right now a chance that is for these time bombs giving this these highly volatile traders that are highly highly profitable but also very risky so do that first thing that I assume in my mind, in my brain is there is maximum risk in that the way to control my exposition this trade is by reducing my size in a stock trade I will take a lot more these I don't want to get big bite because that big bite can take a lot of my profits can take a lot of my profitable trades it can erase my progress that's a very first thing I assume maximum risk in this criteria for my intraday contracts but again, intraday contracts have no different criteria that if we were to choose a contract for swing trade or a contract for LEAP options where I'm going to keep that option a little longer so this is only for what I know about these time bombs that I call intraday contracts that we have to understand that literally it's like handling nitro, glycerin, dynamite or a bomb, we have to understand that so assuming the risk is important to be able to get the benefit of the new 34% in 10 minutes I mean $68 for each contract in 10 minutes a trade of 10 minutes so the first thing we have to understand is that volatility is good but because everyone is going to have volatility these contracts are going to have a volatility that's higher you don't want that volatility to be too high it's going to really get hurt by volatility crash so you want decent volatility on these contracts but you don't want that volatility to be way up there same with the delta you want to manage the delta on these contracts I usually go a lot by volume and open interest why because I want to make sure that there's liquidity in the contracts ok, también miro this is manageable a delta that is manageable that is not a delta that is too high at the same time that is not too low because I want to win fast so it's going to have contracts with a volatility quite manageable a manageable delta and make sure that they have liquidity I see that in the contract in the option chain based on the volume and the open interest ok, yo quiero que sea un contrato líquido ok, porque yo no quiero que le spread spread meaning the difference between bid and the ask yo no quiero que ese spread sea demasiado alto porque yo necesito salirme de ese trade right away another thing to consider is liquidity when it's using the contracts because you don't want the spread to be far apart then that means that you cannot get out of that trade fairly quick and you need to be able to operate with hotkeys and to get in and out fairly quick so you want as much liquidity as possible in the contract by the time that you buy the contract so that's another thing that you always look at you got to choose a contract that's very close to the to the actual price of the stock meaning that the strike price that you're choosing usually try to stay within one or two whether that's up or down based on calls or puts I usually try to do that and stay slightly out of the money I don't want to stay way out of the money with these contracts I want to stay slightly out of the money meaning that I took this trade when the price was at $87.50 example $87.20 in this case on the BWAP break as you can see here I am taking the $86.00 put in that that's $1.00 the strike price down from the actual price of the stock I don't want to do $80.00 or $85.00 well $85.00 would have been okay I guess in this case but you know I don't want to choose contracts that are like way out of the money why because I want to benefit from the contract possibly in the money by the time the day ends of course again from the time that I open these trades I don't want to stay on them too long I want to leave right away I want to take my profits at 20%, 30% in many cases like yesterday we had a trade for 100% and something percent and then we have had trades that are really really interesting we have gotten really really good trades with this system so obviously even on the expiration date now let's talk about that in this particular case normally you want to give yourself enough time on the expiration date but to ensure liquidity on a fast approaching expiration date you have to choose expiration date that's 7 days to 15 days which is not what you would normally do if you're choosing a longer period trade with options but in this case you do that contract to fast to move fast to be high liquidity fast moving contract you would normally do avoid these type of situations in other operations but in this one, in these trades you have to repeat that in Spanish you don't want the expiration date to be too far in this case this is something that you would normally do if you're looking for a longer trade and you want to get rid of this trade quickly, you want to look for operations that are between 7 and 15 days of the expiration date because you need the price to move fast so that you can get out fast and the idea of this trade is you're going to know with these trades right away you're going to win or you're going to lose based on your previous analysis and everything I shared I'm sharing my analysis from scratch from the levels, from what I did in the primary and how I expect this trade to move fast you run with losses or losses but you run the trade the way you thought and between 7 and 15 days in the expiration date and always buy contracts that are not out of the money but not much out of the money because you only need to benefit from the exchange as the price is getting closer to that strike price but you don't want to be too out of the money that you can mistreat the trade if you go the other way so that's the main criteria there's a few more you never, never want to hold these trades never, you don't want to hold these trades I want to repeat that again to make sure that all beautiful people do not lose a lot of money in the markets by just following what I said never this is the most important rule in these types of contracts we never want to hold the price we don't hold these contracts until the next day the next day this contract is worth nothing imagine that you are given a time bomb that has 30 minutes or 10 minutes or 15 minutes before it explodes the only job is that that bomb doesn't explode on your face in this case that's kind of how you have to look at it you have a time bomb in your hands and you are never in any case want to hold this because next day this contract is going to lose possibly and in most cases all of its value almost all of its value so you do not want to hold holding for intraday options you execute collect your money you take your profits like a good trader that you are and then you move away from it and obviously I didn't go into details with ensuring that market confluence and making sure that the market is going in a way that benefits your trade we don't want to take an intraday option trade on the spy or any other ticker 5 minutes before Jerome Powell is scheduled to speak of course we really don't want to do that other things are going to come into play like the actual market move you tend to navigate a boat into a rough sea when the tide is low you are going to sink a boat no matter how good you are going to repeat it in Spanish doing these trades at a time when there is a market catalytic for example Jerome Powell is going to speak or do something like that we have to make sure of the market confluence that means that we have to make sure that what we are doing here is sailing a boat when the sea is quite choppy when the sea is very shallow because the boat is going to sink the boat is going to break the boat is going to fall the word is going to fall the word is going to fall but regardless of whether you know how to handle it so you always ask one of the things you have to to look for these contracts to make sure that you are not trading around a catalytic an announcement an announcement to the traders and then I mentioned that before but I want to mention it again you want to control the profits I am sorry the size of the position again the way that you can take higher risk in options like a lot higher in risk by controlling your position size like all the affordable traders that I know including myself if you look at position size as a way to minimize risk in this type of positions and you can take a really highly volatile crazy really like most risky thing you can know of as long as you control your position size meaning amount of money that you put into that trade versus what actual amount of money that you have in your account then you will be okay in most cases because you will have obviously a plan and even if you take a big loss it's not going to be in terms of money of capital meaning that capital being your tool for work it's like the hammer if you're a carpenter you need that capital to operate in the markets you don't want to give it away that's not the purpose of looking at the capital like your tool to work anything that you use for work with as your computer or if you're a carpenter you got to use a hammer and nails so do you have to look at capital what allows you to do what you do is your capital if you want to make quick profits you want to make $68 per contract in 10 minutes again, per contract as a 34% return no it depends on position and how much money you have in your account but you don't want to buy 100 contracts you don't want to buy a lot of those unless you have a lot of money in your account in this case if it makes sense for it to work for you but again, controlling the size it's really really important control the size it's very important to control the risk laptop that you use in your work you have to understand that those money are soldiers and those soldiers have to work for you those are my 5 cents because I had to translate in Spanish and in English I had to do this twice, essentially I didn't have a lot of time left because I wanted to actually look at the life markets today with you guys but there's only about 5 minutes left on on our on our day I was kind of like looking forward to actually kind of go over some of these things life so that you can see how this actually works life in the market but I don't think we're going to have a lot of time so what I'm going to do instead and now you're going to get to see a life this is how it looks like if the first time you're seeing book map this is life but what I'm going to do with the little time we have is answer questions I'm going to answer questions instead I'm sorry it was my intention to have some time so we can live trade but again every Friday at 1pm if you want to practice your Spanish you can come to our live stream we do it every Friday at 1pm we got kind of like the graveyard shift so we have a lot of time to talk typically don't move a lot during that time but I'm pretty exciting today because I got a lot of movement going on but honestly if you want to watch this again on Friday at 1pm we have this space in Spanish book map has made this space for us and I want to thank the book map team and Bruce and everybody they're all amazing and they gave us live streams so we can take a benefit of like eating the market's life and then looking at these tools and how I use them and what not and I usually host that every Friday at 1pm Eastern time so Friday at 1pm we have this live stream book map team let me see if I have a question I'm going to check it out I love the messages here there are a lot of people who are joining who participated thank you very much I have like 2 minutes let me see if I can answer at least one question what kind of interpretation can we give to the blue stains that are formed through the dots the reason you're seeing those blue stains is because when you look at the market in microseconds you're going to see where you enter an order in the bid or in the ask and you open it a little bit more to see it in microseconds and also with what is called microstructure microstructure is something that book map is very well known for and you can see that microstructure you can see that those blue lines simply means that in those moments look here with these orders how that red line was made that's going to look like a trail but look at what it is it's at each price level where it was negotiated when you do it like this obviously because you're seeing it so far you can see the details and that's why it's like that aura that is created around that that's a really interesting question that I got here is how does it look like there's an aura like a blue aura around the price going up or down and I was explaining that when you zoom in because this is microstructure platform when you zoom in basically our transactions are happening at those levels but when you zoom out it kind of looks like that because it's like way out there you cannot see like the details but that's kind of why that is formed because at every price level the price goes up and down depending on how many orders we get on the bid and the ask so thank you very much thank you very much for giving me the opportunity to be here with you I want to invite you again on Friday evening and also for you to follow me on www.spanglishtrace.com on my website and if you want to learn with us about the options we have a course of options also on my website the market news in Spanish so we have a podcast in Spotify called Wall Street Colada like the little coffee you take every morning in five minutes we let you know what's going on with the markets and what's moving and all the latest news but that's in Spanish so if you want to practice your Spanish you can do that as well we have the podcast in Spanish five minutes every day where we show you the news the market news all of this done, thank you very much guys thank you Bruce and team for having me and I'll see you guys on Friday on Friday thank you so much Frank really great and excellent use of Spanglish I have practice I lived in Miami my whole life so I've had a lot of practice now really really great stuff and I'm sorry you didn't have too much time to go over anything live due to the translation however like you said you'll be there Friday every Friday 1pm awesome and people that speak English are always welcome last time we had one of the traders from Bookmap as well and they were there and they were asking questions so again we can do Spanglish in the Friday live stream as well not a problem thank you guys bye bye, thanks bye, thank you