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It's Tom Diesel here. Today, I just want to do a quick video explaining how you can spot a deathline trap while you're trading. And so let's get on to it. I'm going to pull up the chart here. I have here the example for, I think this is a good example, the best I could think of, which is VVUS. As you can see, the daily chart here, this is pretty bid-in chart. And like really straight turd, you can put, yeah, this is turd, basically. And you can see the volume here when it spikes, you know, dies off right away. But it doesn't mean that, you know, you could short anywhere, right? So that's, you know, when shorting, you have to focus on timing. I mean, timing, it's probably timing and a good entry is probably the most crucial part or like the most important thing when you're shorting a stock. When a stock, yeah, you know, it is, you know, a pick, but it doesn't mean a pick, you know, can't fly. So you have to be really precise with your entries and so on. Because with good entries, you can work, you know, with size, and it reduces, you know, a lot of emotions from trading. So yeah, so on this particular setup, in the morning, the deadline to me in the morning was at two. And then, you know, as this was a pre-market and when it pops back here, put another support here. So that to me, you know, I'm just looking at the major support as the stock is going up. And this is another one as stocks, you know, opens and put a new high here. So, but the key point I'm trying to make here is that as the stock forms, like as the chart, you know, forms during the day, right? You can see here, it's this line, it's pretty clear when you have this support right here, you know, rips back, you know, rips up and then put another here support, another here, another here, you know, as it continued to fade down. This is to me, it's the last line, all like the major key support. And when I think it's, you know, it's far from view app. And when I think it's broke under the longs, you know, underwater, you know, to me, this is clear. Like if you long, you have to get out here, no matter what. It's like here is the, you know, turning point or like the panic kind of, you know, like, oops, you know, I have to get out here. The thesis is no longer valid for me, right? The major support is breaking. That's been one of the strategy that I might see preaching about daily, the death line set up. So I'm just going to quickly go over this on how to treat them and how to manage them if things get out of hand, right? Or like when the death line is not working. So the way that we teach here is that when you draw a death line like this 3.2 and you put a five minute, you know, candle stick and it closes below, it closes below this line on the five minute candle. That's the confirmation, right? And now what you're going to do is you want to short back into that part or back into that, you know, death line, which is, I think it's pretty good here. That's just a halfway of the death candle or like whatever you want to call it. So you want to short back into bounce. And the best thing here is that when stop broke this death line, right? Usually it has like, usually what it does is have a one good bounce back and then it continue to fade out. And that's pretty much it for the death line. And, you know, that's the best way or like that's the way that I like it for it to, you know, break through this line. You know, I'm going to scaling back from here all the way to this line and just risking a, you know, a little bit, you know, above that. But in this case, the stock, you know, broke through this line, put a support here, support like bounce just a little bit, you know, here and then cracks again. But it, instead of continuing to fade down, it reclaimed, right? It reclaimed this line. This is the high and reclaimed. And then this is pretty much another line reclaimed that to this one reclaimed that to and, you know, bounce all the way back to that. I mean, you could be patient. I mean, the thesis is still like the thesis is still valid, right? Like if you didn't short here, all right, you know, don't mind. You want to short back into that line. This one right here. Yeah, that's okay. You know, nothing wrong with that. Like the overall picture, the big picture is still valid. The stock is still under the deadline, which is 3.2. And you want to short back on that bounce. Yes. So you enter here, right? And stock dips and you're not covering anything yet because you think, all right, this is a good probability that stock is going to go down further. But instead, it didn't, right? Just based off from three and then rips through. So what your risk management here should be is that you short back into this line and you have to put a stop above that candle. That's how I would approach it. That's the only way I would do because it shouldn't break that high anymore. Or like, you know, you put a really tiny risk, maybe like 3.2. Or when you short back at 3.2, you want to put a stop, maybe like 10 cents or 15 cents above that because the stock shouldn't act that way. When it pops back to that deadline, it should have fell and then continue to fade down. But instead, it put a new base here and rips through that. So what I'm trying to say is, whenever you see a deadline set up like this, the stock should never base off the deadline. Like broke through that and base off. I mean, look at this. It's like this area, it's where it base like here 3.2 and right here, it's just based off from this line. I mean, this is the big red flag. You don't want for the deadline set up to break the deadline like this and then continue to hold. This is the big red flag for me, the big sign for me. I have to get out. I mean, you know, I gave it enough time to work already. And it just, you know, it's just not working. And you can draw a trend line here. You can see from this to this. That's the trend right there, right? I mean, it should have been like this. But, you know, instead it was like grinding high lows, low highs, like this. You know, that's that's, you know, a big red flag for me. It should have been like that and continue to fade down. So that's my thought on that. And you know how, how you can spot, you know, a trap. Like I always have a hard stop. So it really what it comes down to like risk management in the long term. And you have to, you have to kind of be disciplined on that. And that's, I think the only way how you can profitable in the long term having a plan and trade your plan. So yeah, guys. So this is how you can spot a, you know, a deathline trap. You can see here and you know, look at this trend. It's like so intact, right? Broke, you know, this, this resistance broke this too. I mean, that's a big red flag. That's where you shouldn't get in. And also this one has some, yeah, I'm not expert in, in, in, in fundies. But I saw this one has as three, like probably last year. So also the thesis is kind of light up for me. So since they want to close higher to raising, you know, next morning. Yeah. But again, I'm not expert on that. But that's just my, my, my, my, my, my thought on it. And when I look at those filing and say, all right, what it does here, like broke the 3.2 and the filing is kind of weird for me since I'm probably they're going to want to close it higher to dumb in the next morning. And which exactly what it did. You want to close this one above like stock trying to break down, but it couldn't like someone is holding it from here. Right. That's the big red flag right here. And you know, it should never broke this resistance. It should continue to fade down. This is the major point to me. This is more clear than a 3.2. All right, guys. So I hope you enjoyed the video and I'm just going to keep it, you know, really short today. And I hope this is, you know, helpful. Have a weekend, guys. And I'll see you back next time. Take care. Thank you so much for watching our video. If you want to see more of our videos, please subscribe to our YouTube channel by clicking the button here. We do our best to post a new video every single day. If you have any questions about MIC or any general training questions, please text Tosh using the number here. Also, stay up to date by watching some of our most recent videos right over here.