 Good morning traders and welcome to the book map live or pro trader webinar series and continue today with Jay trader Joseph traders and We have him on every Wednesday As he goes through his equity trades and how he reads the order flow I he's gonna do something unique and special today for the pro trader webinar series and let's Hand it off to him in just a second here the introduction you guys know who Jay trader is He's been trading for quite a while since he was 18 years old with equities and covered warrants or options Trading quite a bit of size now. He's focusing on order flow scalping mainly the US equities and Options and then also He's the main trader in his small cap room We do have his contact information here. If you want to reach out to Joseph Jay trader You've got his website his Twitter YouTube email and some special offers here so Yeah, he does offer mentorship and education Risk disclosure and general disclosure all book map 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 Involves the central risk of loss and is not suitable for all investors Past performance is not necessarily indicative of future results. Okay, Joseph. So I think your screen is already up let me pop it out here and start presenting it and We are good to go All right. So first of all the morning traders So we're looking over here Powell speaking 10 o'clock, so we started seeing over here our first dump on ES from 396 to 3976 so 20 points now it's bouncing. We're having a first pullback into that level of liquidity So we're here to talk about Tesla We're shorting Tesla two days in a row and this morning my plan is is If we're gonna close below the technical area of 180 which we're touching right now next hour is gonna be 170 So what to do over here? Few of the traders this morning that we're looking to Trade before that the data so power speaking had found I believe some Shop in in yes in spy. That's the reason why when we have big news or you trade simply just after the news or You wait 15 30 minutes after the news I prefer to wait a little bit to see the trend of the market. That's the reason why this morning was saying let's wait on To trade yes, let's start trading Tesla let's start trading meta and others So we've been like loading the boat on Few scenarios, so this is for example what we've been doing over here in the room this morning So the team over here started shorting into this 186 Covering parcels Re-adding over here into the 184s Trimming parcels down So we're getting the all-moving. This is the photocopy of what we did yesterday We shorted the entire morning The main point for me is that a lot of traders and you can see over here the team the traders that took Some some good trace of day in the room like for example FRTX where they're shorter here in the 360s and then covering all the way down. This is a small cap Essentially traders often over trade Don't follow only a plus setups from their playbook, but they may start trading also these setups I would say as well They tend to give back often profits of a good green day trading often after 10 30 11 o'clock, so The majority of the times into the lunchtime you will see more algos playing it's really a fact that Institutional they simply go away They put out the algos for the lunchtime and then you will see more activity around 1 32 p.m So the two best time for me to trade and where I really like to focus are from 9 30 till 10 30 10 45 and then from 1 30 to o'clock till the close Those are the best most liquid and volatile times If you trade the big caps you have a lot of possibility to trade in the afternoon For example, let's speak in the week before we started having a lot of trends after 1 32 p.m If you trade instead more small caps, I would focus in pre-market trading. For example, we had this remark at SVRE FDRX SIDU we all trade is short almost from the from the top of these Using book map and after we'll review some of these If you trade also small caps, I would suggest to stay For the first 30 minutes out of the gate 9 30 to 10 o'clock For the A plus setups because if we have faders The majority of faders will happen the first 30 minutes So don't try too much to trade during the day often you will get chopped unless you have a very proven back test strategy So let's start with Tesla. I think this is the most interesting one of course, I will share also be here The wasli so you know exactly what we are going to cover This is the wasli on Tesla I said over here. We have two possible strategies around their puts 180 So on the break of the opening structure that we'll see soon. I was looking for 180 puts and In case of a bounce we are looking for calls This is the Chart that we shared in the market and you can see that this was the key level that I was waiting and on a confirmation of this breakdown target 180 think we got that 180 and Now on a close of today below 180. I will be looking for main target 170. This is the the ideal Setup that we took this morning. This is the team. So the traders were shorting this day The reason to short is a continuation of the main trend that we saw on the daily and hourly chart Again as you can see over here We have a continuation forming lower highs and lower lows We are also below the main point of control weekly Which is at 193 and 50 is a pretty good guide because it tells you that in this year the majority of all illustrated and now We're just like unwinding we are below the main pivot point Now we got before this was a pre-market to the first S1 so support one pivot and then went one into 180 One of the setups that Bruce knows even better than me because I think we've been talking about this so often Is that I'm looking for v patterns at the gate? so if I'm looking into a Short I will be looking for a push So reverse of the pattern and fail and this is exactly what we had so the point is always no and I Prepare in advance Your plan so that when you're going to trade it You know exactly where's your risk? Where's your stop? Where are your targets? So the first thing that I will tell you trade it is calculate your risk-reward ratio before getting to the trade This is the main key for a correct risk management plan. So risk-reward ratio If you are a day trader It really changes From a scalper it really changes to a swing day trader, so I'm looking for risk one at least a reward between three and four are Okay, this is the risk-reward ratio that I want to look for so I don't want to let's say risk 500 bucks to make 500 bucks The only way that I will be profitable is having a system 90 95 percent win rate. I want to instead of staying with Profit factor for risk-reward ratio of one to three or four or even more depends from the from the context Depends on the market scenario. It depends also from the the traded day This environment gave us this morning an entry exactly at this Zone over here, so we showed it into the zone and we showed it as soon so I will zoom in Focusing today on teaching you some aspect. Okay, not everything because we will need to stay over here days but some aspects of How I risk in trades and how I teach traders to risk so this morning we had you can see a first dip Forming a higher low forming another hard low forming another hard low so at this point and That's the reason why I generally don't like to trade a first couple of minutes out of the gate at this point we have Four consecutive three consecutive higher lows We form a peak over here and we still don't know that this is gonna be a peak so Gonna zoom out again to show you the structure If you look over here On our chart over here on the right We can see that the main trend is down, right? Yesterday I showed it here and we covered the last position over here Today we showed it here and We covered here with these rads over here. This is The trend today. Okay, so unwinding over here And look at this point we Breached so we had the breakout over here 186 If you follow the content that I share often I said the best shorts are When longs are trapped, right? I always say that so a major bull trap Shorts are trapped You go long Bulls are trapped you go short over here bulls all trapped So that's the best short scenario possible. Then you have to wait a timing and over here. I Look in for higher lows are highs to Reverse and start forming over here lower highs lower lows So exactly at this time over here We have a reversal a Break of this higher lows are high scenario structure And then over here starting forming a first backside of the move If you zoom out You will recognize that all of this And over here we can see a One-minute chart. Okay, all of this is what I like to call reversal deep pattern So that is your Major short now For who just came this is how the team Trader today, so On the backside over here team loaded Cover first partial cover another partial over here covers were around 25 and 25 percent Another 25 over here Re-adding to full-size average moving down covering a first 10 percent 10 percent 25 25 and now the team is still holding for a major outline How to trail something like this and where to put the stop? So as soon as Well, this is a structure of bookmark. Okay Now I need to calculate and show you About the risk war scenario today. We're talking about risk management. Okay, you have questions. You can ask me so How to trail something like this? I mean everybody me personally, okay, I Always want to find the big moves the big trades I mean, I love and I would love to short over here and hold completely full-size only I would love it. It's not possible What I did though was buying over here on this first curl in the 120s and holding for a second. That was good It's not very hard. He right over here with the tail. It's not very hard But it's not possible to always find a top short and cover the dip or to buy the dip and Always sell to the top. So we need to have certain levels where we're gonna look for targets to get out So remember our trade this morning came exactly at this point where I'm Pointing out over here exactly this point over here the 186 185 70s here Now you can see that the trend on the higher time frame so HDF Is forming lower highs lower lows Lower highs lower lows. So we have a descending trend. Okay, or bear is trapped before Taking the trade. I already have my levels Trace And I want to share something with you Joseph is it possible to maybe I mean your screen is super high res To maybe make it a Bit Like this. Yeah, also the bookmap screen. I think Yeah, I guess you can't The the symbols up above etc and seeing the price Is there a way it would be the overall resolution on the no not not not in book map there So, let me see Then it will reformat everything and it will be okay. All right, so Next time Okay So I will tell you here traders what are the numbers, but this peak over here is 186 and 50 and This low over here 184 60 So before taking the trade over here, I'm looking for my targets and for my risk Okay, what does it mean? I need to calculate if this trade is going to really be worth taking it, right? if Okay, and this is very important if I don't have as I said before a possible target Of three to four are Forget about taking the trade Okay, I would like to know how many traders before taking the trade or could be Futures could be stocks whatever, but I would like to know how many traders do did do this in advance because if you would do this Even if with a 50% or 40% win rate, you would be profitable. That's the main point It's not, you know looking for that holy grail Which I can tell you can find but it's not about finding the holy grail 90% win rate that You will be successful. You will be successful with more of 40 50 60% win rate strategy But that gives you at least your return every single time This was what I was saying over here today 924 on close below 180 Tesla target 170 So I already had in mind The trades also over here alerting and 931 short Tesla You see I short I alert over here the short 186 and 20 So let's go to check this 186 and 20 And I will point on book map So that you understand my risk-reward ratio, okay So I said let's look for this 186 20, which is exactly this point So this is exactly in 931 and 05 seconds 931 and 05 seconds here. This is 931 and 05 seconds over here 186 and 20 short risking 186 and 50 So I gave a risk of 30 to 40 cents And the target that I was calling by rules was 180 today So risking 40 cents for making five almost six points Of course, you can see how the trader before or the members They scale out Because it's in human nature not believing In what you're going to trade that it will eventually work until that target that you are pre-planned It's in the human nature to have doubts And it's also in the human nature To start looking at even if you don't look at the panel You will still look at the points that you're making and that you're scaling out Of course the perfect bot the perfect trading system would have shorter 186 and 20 Risking 186 and 40 or 60 40 cents and what I've took the trade until that 180 Having something like 20 are plus But this is not possible. We are humans So we will make errors we'll be having formal We'll be having driven sometimes by fear emotions And of course you won't have that risk or a ratio of 20 are You will have that risk or a ratio over here of seven eight nine are which is still good Is still gonna bring your profits It still may make you successful, but it's not gonna be as you would do without any motions So Getting back to our plan We need the risk or a ratio at least what I teach is to have always a risk or a ratio Before you take the trade Because in that way if you know that this is our risk This is our entry this zone over here There will be who enters 186 and 20 who enters 186 And as I said the level the entry is this That's the risk And that's a target that we had from the daily higher time frame So if you know this you can calculate over here 40 cents risk That your one are And then you will calculate the 180 And that 180 for 40 cents six points is going to be more than 20 are Now as I said you have to consider your skidding out. So you have to make an average to the end Of your average Aksit take profit position Let's say it's going to be maybe four points that will be four are Okay, sorry 10 are Now how bookmap can help you in this? Okay, and I want to bring an example over here Of a trader And this trader is personally Not about this as very sorry traders, but this is another chart that we'll we're sure after I'm going to bring an example of my wife And uh An error that she does Okay, which is not a really narrow because taking profit is never never But it's about Something that I prefer not to do it. So if I'm shorted as if we said this area 186 and 20s 186 risking 186 and 50. Okay, so we'll put over here So we are short 186 and 20 that was the alert risking 186 and 50, of course, you'll get fielded 60 maybe 70 And this is an example Of the the play a lot of traders And you can see over here. So we're going to make the the the trailing This is These are the covers So that 184 and 40 the first target that over here we had Was this point over here Okay So we're going to put over here in this way. So it is going to be easy to understand And this is really Guiding you in the entire process So this is the first cover of greater 25% And it's over here 25% first cover Okay, so now you can analyze The risk for war ratio. So when you get out the 25% Is because you have to have pre-plan is not because I see a heat map and I'm getting out That's wrong I mean I could get out over here over here over here over here instead the trader over here took the trade Get out the first partial at 184 and 40 So 186 and 20 184 and 40 Think is what 1.8. Okay 1.8. So that's at least 4 point 2 are in the first exit Okay, so this exit Being that we're risking risking 40 cents and we made 1.80 cents and the first target So the first target is 4.2 are if I'm sorry 4.5 are if I'm mistaken traders. Let me know second thing And after We review also This risk management So let's go back here second thing Now it's about not giving back profits because it's easy to analyze A perfect trade a trade that goes good lower highs or lows are short And everything works, right? So even in the word case scenario, even if you don't trade good You'll still be profitable because the trade is simply going The point is you have to protect yourself And that's what traders often don't think about They don't think about the trade can reverse the stock can reverse the future whatever you're looking for it can be unused Maybe you weren't attentive power speaks and you're still like full size short and you don't have the clue of what to do Well before taking the trade before knowing where is your first target And by the way, this first target is gonna was over here because it was already for our turn And because it was a big heat map and it was a pre-market support. Okay, so there you go And all this was Alerted while we're doing it But once we are over here, you have to know the rules So you have to know now, where is your 50% retracement? your short 186 20 You got the 184 and 40 So you go look for the 185 And 60 185 and 20s something like that. So in this area between 40 and 50 percent You're gonna move your trail Why? Because you still want the remaining position That's 75 percent Is gonna be at 2 r at least Okay So that all together at least you will have that 3 r Return Okay I prefer to Use this kind of rule and then of course with technical levels I will move up or down Like for example traders I see this big heat map I'll move my trailing From the 186 20 average Down to the 185 Okay over here the trader here The trader in this In tesla traded Using a correct risk reward ratio entry So what it means he was calculating the risk reward ratio, okay But also has to understand That a trade is always evolving Therefore he needs to then put the correct trailing. Okay, so over here Therefore needs to find Correct trailing management So it's not about only risk management It's also about trailing Or target or trailing risk management, okay trailing management Another thing and if you have question, please result Another thing over here that I would like to to go over is how to start looking traders for maximizing your profits Okay, so maximizing your trades How you can do that? You're going to cancel all this Okay, so you can see over here The covers a 25 25 25 over here Around here was a 20 25 25 and then with three ads Well, I suggest you to start using book map to find those levels Where you can re add and scale out If you start looking let me see over here This tool just one second. Sorry We start looking over here at book map We can see that we have lower highs or lows all along the way We're high or low or high lower low our high at this point Exactly this point We start forming higher low So when we form a higher low and then we have also a high break out We have a major pullback Where the pullback happened Into this VWAP zone So if you look at this point This is a 184 with a clear resistance It's a clear resistance And that's where the trader over here joined the trend Okay, so rejoin the trend scaled back in So what you can get from this One the trader is looking to maximize profits Just wasn't saying before a few minutes ago at this point At this point over here But of course has to understand this average from here Now we'll go down to this point over here So the new risk Is going to be maximum that 184 and 40 So this why you traders because when you are in profit You don't want to give back Uh nothing, right You want to hold Maximize your profits and not give you back any kind of rain All right. Yeah, make sense. Joseph. I have lots of questions on this. Um, so Uh, I see there's two entries uh up on the top there So one as it's going into it and one as it curls in it's going out of it And um So When the first entry is is created, uh, there's More risk on potentially Because it may just continue on upward So, uh, regardless, uh, you're just uh at that point, how do you know where your stop is? How do you determine your stop? Okay, that's that's a good question. There are many ways One way To stop loss is to have A dollar risk per trade For example I want to risk 200 bucks per trade so I'm putting my stop Above this 186 and 50. So using the seat map over here Okay My risk will be 200 bucks. So based on that risk We can use hotkeys that calculate the amount of size you're going to trade And this is very good Because you have to do nothing Uh, you just simply put over here You're a level that you want to enter You set your risk at 200 dollars Da Softer will calculate instantly how many shares you're going to trade short Okay, so this is the first rate So it gives you a correct idea of the risk management. You are Uh aware of that you're going to accept and you're going to Take into your trading More than 200 bucks. You're not going to risk. That's a very very cool feature The second, uh, I would say Way to do it Is having A dollar risk on the chart for example If traders right here are generally Looking to trade big caps Every single big cap or mid cap has a different price So you need to know for example A 100 dollar stock How many shares? If You're trading Something like tesla 200 dollar stock How many shares? If you're trading 200 dollar stocks, how many shares? And of course you can break it even 100 150 200 and so So having for example on something like tesla, maybe we're risking Uh one point To 1.5 dollars per trade Okay off the on the line stock So in this case, we know that We'll never risk more than one 1.5 dollars And this means That our return if we're looking for 3R And we're risking 1 dollar in that In case our return has to be between 3 and 4.5 Dollars per trade. So it will be the return Okay So this is a second Exam So there's another one joseph. Yeah, I mean, um, this this sounds all good, uh with the numbers Um But the setup and the high probability here, uh that you're looking for, um Uh comes first, no So we have over here two potential good exit 187 Because it's a high liquidity area But also we have the 186 and 50 Because we are shorting into that heat map Plus it's a technical area From pre-market support And also My strategy So knowing this I have a correct risk That is given from strategy Is given from a liquidity So we have a protection in our favor sellers And then also we have Um the strategy could be many If you have strategy traders You simply going to Uh risk a technical level for your trade Okay this is for uh Tesla You know here We can start looking for the technical area So we are looking for The previous day No This is the previous day low traders. So it's always an important area You can see that we are rejecting that area So once we reject We're risking just that Top above over here Of the technical area this point over here All right Okay, so uh, no, this this is excellent. Um Uh, I'm just wondering though about Specific instruments and how much volatility Uh is in a move That may take you take you out Of your stops there. So I know that the the trader here in this, um Maybe you can talk about it like they they were in half a position On the way up and then half a position on the way down Okay so here On uh on the trade short That the trader took This is a full-size position Because we have a very low risk And uh because over here we see that It's technical level It's a major bull trap formation That we can spot over here with book map And we have also once we join over here the trade the confirmation of having a target Which was calculated over here between 184 and 185 and 50 So we have a good risk level ratio. Okay the trade traders Is exactly In this area So in this area here. So this is the entry You want to put over here entry Over here. We have the risk 186 and 50 And over here first target 184 and 50 So the risk and the full-size position mostly Uh comes because we have a correct risk ratio So is the fact that we have uh at least three are off return That we are taking full-size So knowing that the strategy works more than 70 percent of the time on the setup more We have a lower risk risk in maximum 40 50 cents And we know that we're going to look for three are at least This is the reason why to load the boat so a question on if um If the trader Does everything right here And then they get stopped out just because of some market slop or volatility here um What do you usually recommend? Like uh because it you know this worked out. Let's say suppose they got stopped out. Let's say they didn't work. This you mean, right? Oh, no, they worked. It worked. It's just the stop was hit Mm-hmm. Uh, so how do you how do you overcome? Or deal with that emotion Okay, okay, okay This is a big question one We are not trading systems and we are not robot traders so It's very hard sometimes to be systematic and be without emotions being only technicals That's the best way you can trade so not making the the pnl and making stress influence your trading in any way in any form having said this If you take a trade and You get stopped out and eventually works You fuel some revenge trading You have to ask questions Okay And question will be Is the setup that I'm going is the trade that I'm going to take a setup you make playbook Am I revenge trading? Where is my uh entry? Sorry, what is my risk for war ratio? So three main questions to understand once if you're trading your system Second if you're chasing your system or not Third, what is the risk for ratio? Because maybe you can trade your system You could not even chase maybe take the correct answer. Let's say a correct entry like the second one over here that We had boosted 184 But maybe that doesn't have a very good risk for war ratio And what happens? Happens that you're going to take Uh an entry with maybe one hour risk in one hour possible target In that case is better to avoid the trade Unless you have a 95 90% win rate strategy Okay, so it's very very important To analyze all these aspects before a trading is uh, it's done so if if the trader gets stopped out of this Example or if you you got stopped out of this example As a as a veteran trader, uh, you would just say, okay, I'm just waiting for the next setup Exactly exactly For example, here we have a trade on meta. This is I think a correct setup uh The trade I'm sorry the trade got long. No, it's not a correct setup. Anyways, it's a good example Of the trade over here that you know took a wrong entry So going long instead of going short But recognize right away is ever And stopped out immediately How many times for example, we were wrong And we don't stop out because maybe we think it can be reverse We maybe can increase position take a better average And then the stock continues to go against us So this is another example here of a correct I would say attitude Of work that you must have when something is not working and you recognize you're wrong cut it immediately A trader the day was asking me that I think the trader was in a position on a m a m The position that he told me it took was based on a wrong strategy. It was not a setup that he trades And uh, he was asking me what to do I answer frankly and honest And I told him that whenever I'm in a trade that I may take and I recognize and Right away. I see that this trade was is not part of my strategy. I cut it immediately Because it's not part of my niche because I cannot have an edge over here and personally What I've seen from this seen that It really saved me a lot of times because if I continue to held Uh, a stock or a position future, whatever I trade That is based on a setup that I'm not trade. So not even a pattern just hoping And generally it doesn't work good in my favor. Okay. It can be one time luck and maybe the next time I blow up So I prefer to simply cut my position when I recognize this is wrong You know, we hear the trade is very very good. So Very good to to see risk management like this. Okay, this is for me really how correct trading would be So We've talked I think in the past about the um entry multiple entries And uh, and why? And and you spoke earlier about multiple exits and and why however There How do you you I know I know the risk reward is is the big part here. Um That that you're looking for um, but uh, as let's suppose it starts going in your direction And um, uh, you know, maybe you take your first your first target Now do you move your stop to break even at that point? Okay So it depends what I'm trading if I'm trading like an example over here on big caps And we're taking the position Here I will generally it's a rule of thumb, you know, like generally not always It really depends after even what the market is doing if I'm up good for the day Uh, if it's a a plus setup at the open if it's like mid morning So there are variables and rules for this But generally once the trade works One 1.5 are In my direction I move the stop break even or just a little bit in the money You know, you have to pay bars if it's a small cap. Uh, you have to pay Fees commissions whatever your time so a little bit of free war you want it Even if the trade will work then and reverse against you won't work and go against you So a rule of thumb one are 1.5 are Move the stop will break even at least this for me. Of course if a trader Is trading and getting out too many times because he gets like chopped from too many cuts Means that his one are is not Really well, I would say uh planned Because for example, you don't want to enter 50 times in about On something like tesla one dollar range in getting stopped out every single time for 30 40 cents Out because that will eventually lead to a big loss. So what you want to do is to measure also the correct point the correct point of risk the target And then looking for your our return Because always like that some of bruce of the the best trades that for example uh I see traders that i'm madner are taking something like this svre Or I can share another example. I think it's even more understandable Like let's say this, uh Let's see Like this over here Let me bring it up an example okay Like this over here. This was an example from yesterday and It's having precept or resolved for targets And this could be for long and short in this case. We have a long example so knowing your stop in this case The trader here was risking this relative low the 128 127 base buyer rules And then having of course um A risk rewards scenario. So always looking for at least there are for for the the average of the move and also Not really trading anymore the stock but putting right away preset orders out When he's just into the trade Because essentially this avoids that the trader scales out too often Okay And this is for example, uh a trade a trade that i'm seeing right now from from a trader So having those levels preset orders out Based on the strategy based on the levels that you see on the daily chart based on the heat maps They will confirm with the trade You simply avoid to One scale out too much too soon Second to lower your our return Third, I would say Sometimes we have even anxiety, you know to take right away profit. Instead if we would have Trailed it better held the trade Many times The stock would have paid much more Than what we did Okay, so this is obviously Uh one of the key points in the risk management Yeah, yeah, this this is what I was kind of driving at It's kind of complex That Once you start taking partial profits And moving your stop to break even You don't know necessarily what your edge is Potentially, uh because maybe If you just let it run Um You could have huge huge winners Uh and maybe maybe it comes back and you get stopped out every now and then for Either break even or small loss but but uh If you held it And didn't mess with it like you could have had major winners Exactly exactly Bruce. It's it's totally like that. I mean um Just look at trades that we plan That we have conviction to trade And then maybe we are in the trade we guess like, uh Scared afraid of something we get out Maybe with a break here and with the loss and then eventually the trade would work would work And We only say to ourselves if I had if I had if I had you know, like if I had follow my plan If I had follow my strategy many times this happens and that's the reason why The more systematic a trader will work The more profitable it will become so I simply really look for traders through more, um more than emotionally They should have always a very technical and uh cold approach to trading Yeah, I it's I think it's really really uh sound advice the questions I have though are um What I think it can be really helpful for others is to understand This kind of fiddling with the trade management Um, and how complex that makes things Because you may take uh, you know 1.5 Take profit partial profit Uh, and then it comes back and stops you out at break even and that may happen a bunch of times but if you have You know, this is where your edge you really have to wait and take your your your correct trade that offers an edge Uh, because uh, if it comes back and you get stopped out a few times, that's a full stop Uh, even though you may have had more winners like you you get stopped out a few few times you Overall, you're going to be at a loss And so How do you recommend coming overcoming that? I guess by study maybe one way is by studying your your edge and knowing your edge Or would it also be do you advocate maybe when you start to just take full in full out And don't worry about runners So You cannot trade without any kind of data That means over here, uh, putting a lot of effort in back testing So analyze first of all Two different type of data one is the data that comes from your trading from your execution from your trades And one of the data that comes from your strategy because the data that comes out from your strategy unless You have a trading system above the trades automatically will never be the same as the one that you trade first of all So you have to look in your data Of the trades you take Okay What is the main return that you have for that precise set strategy setup that you're trading There is going to be like a common denominator So you want to see for example trading tesla We know that they're uncertain pattern. We're gonna take for our return by average Okay, that is something that helps me build conviction in order to size up And when I have the risk under control, I know that I can load the boat The other way or I mean that way the other thing to do is instead collect all the data And this requires a lot of time, right? Unless you have python and you can program it collect all the data even with a Spreadsheet on excel And collect all the trades that the system the strategy gave So not that actually the one you took but the system gave And then you have to look the risk reward for every single trade That had happened You have to look also the average way in versus average loss You have to look at the drawdown that it gave on a I would say Account on a practical account And you have to look how to increase this profit factor so that you will be More a winner than a loser And amount of win that you will have If you do all this, I believe you're trading Whoever over here listens to us will improve that much because this is something that When I follow a trader I make them do from the starting To the end of the plan Without a doubt you cannot go anywhere. It's not like I'm trading Tesla. I'm taking that pattern And I don't know anything about it. You have to know everything is to become a specialist in what you do If you want to also become like, you know Very good or perfect trader Perfect trader. Nobody will be a perfect trader unless you're a computer But anyways, you'll be a good trader Okay. Yeah, thank you, Joseph. I just wanted to Uh Hear that uh and and the the back testing uh Two different types of back testing not only to determine you have an edge But then also the trading strategy has an edge within Uh, your setup Exactly exactly So I would like to go over Bruce over here trade In small caps right now. There was one of the main small caps off today um Is not a trade that I took But it's uh, it's something that I think is very important to make understand small cap traders How to to trade? So we're going to look one second to svre. So svre i'm gonna Uh, put this bigger one second As very was one of the main gappers this morning Uh, we have A small float in the stock We had a previous fader, but the news over here Okay, we can look at the news install say one system across the entire bus fleet of 1200 vehicles Over here traders, you can you know just like read more, but this was essentially the news Okay, so we're not commenting over here the validity of the news or anything else. We have disclaimer Of course, but you can You know get to your own, uh, we say opinion I want to share instead why having also the A book map next to you gives an edge. So this is a trader over here this morning That by rules had a stop into this 220 area. Okay, exactly this point over here, but why this Let's look at the book map over here. So we can see I'm gonna put over here This is the open all right over here what I'm pointing. This is 9 30 And you can see that we start being sideways between two dollars and to 16 So not really any range, right? When we have over here the They really go We can say to remove this liquidity. So we have buyers over here Removing the 214 Then again over here 217 And then you can see that they go to eat really to remove the liquidity of 220 So this point as we said before What happens over here? We have a sequence of higher lows In our eyes. So this is the bullish part of the move. Okay If you show something like this, remember, you're shorting a counter trend Because the trend is up at least the short term trend of this uh, this move over here This is in the four minutes, right? This four minutes is going up. So over here you're shorting counter trend Once you start seeing instead this first trend break And then you start seeing A sequence of lower highs lower lows you start having the backside of the move the second trade That the member took over here the trader took over here 2004 to 05 Is exactly this point that I'm Showing over here exactly this point So he's taking the backside of the move And now there are two main things To calculate or actually before taking the trade one What is going to be the target? And what is going to be the risk? So I'm going to use bookmark over here to point out those levels And we will zoom out like this. Okay So the risk was few cents five cents generally For what I teach Above this heat map and a peak over here. So this area 225. Okay, so we have a 225 um Stop loss We have a 208 average around to 208 Entry so we're risking 17 cents. Okay, so over here we're gonna put 17 cents Risk Now before taking the trade Okay You have to make this plan By knowing the strategy that you're taking You know exactly where is going to be your target The target by the strategy the main target is 170 and 160 So an average of 165 Okay, so entering at two let's say 208 210 to 165 is going to be 165 is going to be something like 45 cents Okay, so 45 cents target Okay, ideally this means the trader doesn't scale out anything For the 45 cents of them wide based on the target tp The trader over here scales out partial 190 partial at 178 So the assuming that over here are small covers between over here 20 and 30 percent the trader will Hold the main core It's very important over here to understand one the win rate of the setup to the average return for profit factor So the trader has to calculate this in advance. How can you calculate? It's not that morning The trader has to calculate this during the weekend during when he has time with his back testing Because if you're not calculating how much is going to be your profit factor and your win rate Then you cannot take this trade Okay, I can tell you that the trader knew over here what he was doing. So this was a correct entry By looking at book map You have three main things over here that help you To stay in the trade So to look for the major covers where we had 160 i'm pointing out over here and 170 The first thing is that we see these book map levels heat maps That are moving down So this level over here We can see that before we here was orange 12,000 shears Ideally and we know this for sure, but we can see that over here. Basically somebody over here cancels and moves down here 10,000 under shares So it moves again from here Down till here 10,000 shares So I don't know 100 percent. This is the same player or whatever But we have over here first This player Then is moving down then is moving down what it tells me over here guys Steer step down pattern. This is what I like to call a steer step down pattern It means that somebody is guiding down with the trend All right, so He wants to get feeling once you actually hear whatever the point is he's bringing down also to hear the tension of the tape to the downside The second thing is where we have the majority Of the liquidity placed. Okay, so when you are at this point The trader over here is taking the trade Where we have the majority of the liquidity Okay over here I start looking that the liquidity is always going down together with the trend You can see over here. It's always going down so we don't have any kind of I would say reversal over here Signal that tells me take out the position because we are reversing. We're still making our highs lower lows The majority of the liquidity once we're fading I start seeing over here into this 165 168 area You can see also over here Two main impacts over here 28,000 Again, probably is the same one that is moving over here 29,000 So we know this is a pretty good level. We're to cover partial and you can see the trader over here exactly at that point Okay on this third cover here takes out a big partial Off this and then we have this major dip. You can see again over here the structure, right Again a big cover. Sorry a big liquidity area 18,000 more than here 10,000 more than here another five over here seven Eight nine. So we have over here a block. Okay off liquidity like a wall of buyers or They are placed And the trader covers the majority of his position down here The third Is what I call the time When we have faders the best faders happen the first 30 minutes These patterns love to die in the first 30 minutes So three things as we said the liquidity over here moving down stair step down pattern Looking for major liquidity zones where to take profit because I know that could be a little bit of uh bounce absorption and bounce and third one is the time of the day Okay, so this is the process on how you can hold the majority of your core for Good risk-reward ratio trade Yeah, this this is beautiful joseph. I mean well explained very Articulate articulately explained And then using the heat map for your trade management here is beautiful Yeah, yeah, it's a correct process over here. Correct process Uh Any more question bruce No, I mean, uh, I don't see any questions in here in youtube. Let me check discord. Um, and uh But uh, just Have to reiterate like I mean like there's someone put a quite or Kind of had an aha moment in here. I think greg To use book map for the trade management in here Uh understanding the liquidity levels and then how to manage your trade Of regarding the context between the liquidity levels and and the other participants Uh, and the way that you set up your risk reward and your Well, your stop loss and your take profits Uh, and your risk reward ratios around this whole thing is is uh, really really nice It's is that one of the most important aspects in trading if you want to become a profitable inconsistent trader Okay, let's check over here what else is going on how tesla is going So right now we have tesla that is starting to form Over here Higher lows and our highs So you can see that the trend is simply changing And also we bounce from that 180 remember traders what I said are closed today Below 180 we have a potential Fayer to 170 it's not closing below 180. They're still holding And right now it's curling and slowly bouncing Um 11 o'clock 1115 i'm done for the day Think that uh, we covered the majority of the things Uh, if you have any questions you can reach out See no no questions. Um, I've, uh Pasted into the chat, uh, your contact information And your website so uh, if anyone's interested in Uh, the mentorship that uh, joseph, uh offers here. It looks like, uh You're really, uh Nicely mentored through the process here and this is something like I think a lot of traders really struggle with And it is really a core element here Right behind first having an edge and knowing you have an edge and then the trade management In fact, god, I don't know joseph. You you might even probably think that the trade management is, uh Equally or maybe even more important you can trade anything if you use proper trade management basically Yeah, I believe that Applying the correct risk management is even more important that Sometimes that entry timing so that your entry, you know a lot of traders focus on the entry The entry is the most important thing. Well Is important it's important, but not the most important thing the most important thing for me the risk management because we can have a A better entry, but we know how to manage it And we know when to cut it when to take profit and we can maximize our profit factors or our return If we have the correct entry perfect every single time, but you don't have any kind of risk management It's going to be hard for you to be successful because that maybe one time you're losing or two times out of 10 or whatever Is going to simply kill your p&l and your I would say your balance Yeah, yeah, it's so important and it's really An aspect that's not covered In detail a lot. It was thank you very much for Going through it in detail in this webinar Also, that was a rather rather gutsy to show your wife's trade I hope I hope you you are fine for the rest of the day. I wish you well Um Just um, let me know no no no other uh, no other comments, uh, or uh questions here So, uh, thank you very much joseph and uh, let you let you have the uh, the last last word here Okay traders Not to repeat myself But trust me bet test your strategy Then before taking a trade Always calculate and advance your risk-reward ratio. So where you're going to apply your stop Where you're going to take your partial out or where is your like? um target profit or profit target And the our return per this trade before taking a trade. Okay, so before not when you're in Everything has to be planned in advance And then the third thing Today I shared a couple of examples of correct trades Okay, uh these trades were So one was a stop couple one war wins Uh, the point for me is that every single day when you have losses or wins you review what you did because there's always to improve I take losses. I have losses. I share them in the room and I teach how to avoid him how to be a better trader than me and uh This is very very important. Okay, so the humble always looked improve all to evolve and thank you very much for following See you next week. Thank you