 Welcome to Access to Trader, the number one community for those who are committed to taking control of their trading in order to achieve success, profitability, and longevity. Thank you for joining us. Here's Dan Shapiro to help you find your edge, master your process, and own your future. Okay, had backwards, of course. Guys, let me just click on the channel and make sure everybody can hear me. See the screen. All that good stuff. Wonderful, wonderful, wonderful. All right, cool, cool, cool. All right. Before we begin, guys, again, I want to, you know, I want to thank everybody for their, you know, I love the, you know, I love to hear the progress reports, good, bad, or indifference, because it's telling me that you're working, that you're conscious of what you need to fix your your, your prodigy self of what the next level that you achieved. And now you're still telling me that you're focused and you're, you know, ready to tackle any, especially misfortunes that all of us have misfortunes. That's the whole nature of this business. We have all misfortunes every single day, screwing up a trade, covering a stock, selling it too early, watching, you know, go $9 without you, you know, all this stuff, you know, it's all work in progress. And I've always, I've always maintained for years and years and years. It's just, it's just going to be one big, you know, it's going to happen eventually. And you're never going to be perfect, but it's going to happen eventually type of scenario. And, you know, I got a lot of great emails over the weekend, some phenomenal, phenomenal progression reports. So good job there. If you're not there yet, it's again, it's not a big deal. It took me a really long time to get there with no, realistically, no guidance, no process, no backball, nothing. And, you know, eventually it clicks. And the fact that you are here, and I'm, you know, I'm kind of giving you the blueprint of, you know, what I think is going to happen based on the previous days research, it's a lot easier to digest and have your career flourish faster. And that's the only thing we ask of you just don't do anything outside of our process, because well, that's how you, you start falling into bad habits and you really start doing some bad things. So again, I have the blueprint. It's 24 years worth of trial and error. I still don't think I am, you know, I'm at the, you know, the peak of my game because again, I'm still messing up a lot. And you're just like every other human being is going to mess up a lot. But again, it is part of the business. And when you are risk adverse and you believe in profits versus risk, you're going to have a lot more trades that you're going to mismanage. But that's a good thing. That means the majority of your trades, you're making money, you're just not making, you know, you're not making as much as you want. But that's a good thing because everything compounds. So welcome to, welcome to, yeah, love. Yeah, I forgot what we talked about last week. I was about to say welcome to installment number four, okay, of the weekend workshop. Now I'm starting to get up in Asia. I forgot already what we talked about the first three. No, I remember I remember we talked about being focused, we talked about dealing with losses last week, we talked about the paralysis through analysis scenario that most traders have. And today's topic is something that again, we go through on our road to development. Today's topic is position sizing. Most people believe that position sizing has to do with your account size. And I completely disagree with that. I think position sizing is based on your experience level, your ability to read technical analysis, your ability to embrace risk, your ability to understand that, you know, the trading is all about losses that are mitigating. We're trying to mitigate that risk. And the most important part is today what we're going to do is, again, speak from the technical but also speak from the psychological area, excuse me. So let's begin. So I've always made this analogy. And I always believe that developing as a trader, no matter what topic you are talking about, but developing as a trader, I like to talk about it from kind of like the building of the home type of scenario. I've had some experience in real estate development, mostly as an investor, actually, all of it as an investor. But yeah, I've seen the process, how it works. You know, I built my own home, all that stuff. And you know, your foundation as a trader just like, you know, building a home, it starts from the foundation to the roof, right? Yeah, they don't put the roof first and then, you know, pour the foundation, you know, and they don't pour the concrete in the cinder blocks and all that stuff in the sheetrock and between the wiring after it, you know, you start with the foundation and then you frame it out, right? You frame it out and you do the insulation and all that stuff. And the next thing you know, you have a roof, right? You have roof, you have siding, you have stone, whatever the hell you decide to put on your home. And that's kind of how trading works as well with position sizing. And a lot of people, you know, a lot, most people start out with smaller accounts. If you're like me, I borrowed money to start trading. That's not the smartest thing to do. But you know, I did it. You know, I took a shot. I really didn't really think it out, think it through. But I did it. I borrowed money from a loan shark. You know, it wasn't the greatest decision in the world. But you know, the point is, you know, you sometimes in life, you got to take a shot, right? So I took a shot. I borrowed some money. But most people, most people, you know, don't have 100, 2, 3, 4, 500 grand a million, $2 million to start trading. It's just, it's just reality. Most people don't. If you start working at a hedge fund, you will. Yes, if you start working at a prop firm, like Gines, I know Gines is here today, you know, he'll tell you, you know, prop firms, especially when we were trading, Gines started trading a little bit after me. But when we started trading, you had millions and millions of dollars at your disposal, millions of dollars. You know, it doesn't make a difference. Especially intraday buying power, you had tens of millions of dollars at your disposal. The firm would frown upon that everybody would use it because again, everybody has different levels. But it was there for us. But majority of traders, they don't, right? Majority of traders have 5 grand, 10 grand, 30 grand, 40 grand, 20 grand, you know, in that capacity, 2 grand, 3 grand. And they believe that, no, they believe that their account size is the ultimate factor when determining the size of the position that they put on. I think that's complete nonsense. You can have a million dollar account. But if you're not mentally ready to trade, you know, 20 shares of Tesla, you're going to have the same result of somebody trading, you know, a $2,000 account. So I think the narrative of the bigger your account is the better, you know, the better trader you'll be is a myth. I do believe though, and I've said this for years and years and years, the bigger your account is will buy you more time to develop as a trader. So if somebody coming into this game has $100,000, they have a higher probability of making it because they have a bigger bank that's tapped trial and error. If somebody who's trading $2,000 account, it really doesn't. You know, a 1% move is $20. It's a big deal, right? It doesn't sound like a big deal, but 1% move is $20. So, you know, the more money you have in this business, the higher probability you'll succeed because again, you'll see more hands, you'll get more screen time and all that stuff. And eventually it will click. But from the point of position sizing, I have a very, very strong belief in how to do it. I've kind of talked about this for years and years and years in the webinar. It's nothing really new, but a lot of you guys have not heard it. And this is kind of how we, at least I project how you should do it. Everybody's a grown up. Everybody could do whatever they want. But this is how I would do it all over again, right? So I hear a lot of times like, for example, we'll be in a trade, right? We'll be in a trade. And, you know, the stock, let's just use Tesla as an example, right? The stock, you know, goes from 261 to like 260, 65, right? You know, sometimes, you know how we know, sometimes, you know, the stock just doesn't collapse, you know, in the first 30 seconds. You know, yesterday, yes, a Friday, Thursday, you know, it happens. Yeah, of course, stocks do collapse. But sometimes they'll just sit there for like a minute, right guys? Like sometimes they'll sit there for a minute. They're still building, you know, below or above the pivot. But sometimes they'll just sit there for like an extra minute. And the point is, you know, eventually we'll go. But I notice a lot of traders, you know, in the stock will be trading, you know, 61, 61, 60, 61, 78, 6080, 6040, 6080. And as soon as it gets to like 6108, right? The person's like, well, that's it, I'm out of the trade. And I think that's a very, very strong, it's a very, very strong evidence that you are positioned wrong. Okay, there's a difference between use, break even as a stop, if the stock is not building, right? That's a different story. So if the stock was sitting there, you know, if we wish, if the pivot was 261, and the stock is sitting there, 261, 30, 261, 40, 261, away, it's 261, 15, right? It's not below the pivot. It's above the pivot. But that's when you turn around and go, you know what, let me give you an extra 30 seconds. If it doesn't go, I'll use break even as my stop, or I'll use, you know, slip it, you know, down 20, 30 cents, which is again, which is nothing. But unfortunately, when the trade starts building against a building with that, you know, with the trade, and as soon as the trade goes, you know, 12, 15 cents above the level, the person starts to panic, right? And like, oh, that's it. That's it. It's going to go, it's going and you literally got stopped out. You really stopped yourself out 9 cents above your entry, right? Only to see literally 30 seconds later, which the majority of time the pivot was building below that area, the stock collapses, finally collapses down to $3, $4. And then you sit in there. Oh, I'm the worst. I'm the worst. You're not the worst. You are just positioned wrong, right? That's it. That's all it is. You are positioned wrong. So here's my question, right? Here's my question, especially for anybody for everybody in the room. I don't care what your account size is. If I told you, you're short one share of Tesla, and it goes down and it goes against you a dollar, is anybody in the room going to cover their position? Right? Is anybody in the room going to cover their position if you're short one share? Right? The answer is no. If the answer is yes, I can't help you, right? I can't help you, right? So if the answer is no, you're in the game, right? You're starting to lay your foundation. The next question is, and again, I don't care how big your account size is. If I told you you're short 10 shares of Tesla and it goes against you a dollar, would anybody freak out or would anybody cover the trade? The answer should still be no, correct? Right? Again, we're building our foundation. Now we get to some of the parts, right? Now we get to some of the parts that some people will say yes, and some people will continue to say no, right? So my next question is, if you're trading 100 shares of Tesla, okay, let's just start with 50 shares of Tesla. If you're trading with 50 shares of Tesla and the stock goes against you a dollar, would a lot of you guys panic and get out of the trade if it wasn't technically ready to get out of, right? I personally wouldn't. I would say probably about 99.5% of the people wouldn't. But there's that extra 0.5% that will. You know what that tells you is? That tells you is 50 shares at your stage of your career, at this stage of your development is too much, right? It's too much, okay? It's absolutely too much. So we're going to put you guys to the side for one second, okay? So now we'll get to those traders and say, yeah, Dan, I have no problems with my worst case scenario. If I lose a point on 100 shares, it's not a big deal, not a big deal whatsoever. Okay, my next question is, what about your worst case scenario if you're trading 200 shares? Yeah, sure, I could still do 200 shares, right? No problem, right? That means, again, you're building your confidence level based on your confidence in the trade, but you have your ability that it's not going to freak you out mentally. So then we move on. With 300 shares losing, well, no, no, no, no, I can't do a dollar. So there you go. There is your warning signal, right? There is your warning signal of comfortability. You know that you can be in 100 shares, you can be in 200 shares, but you cannot be in 300 shares. 300 shares will mentally at this juncture of your career freak you out, right? No, no, no, I can't lose. I can lose 300, right? I can't lose 300 on my Max Payne worst case scenario. Nobody says you have to lose 300. But if the worst case scenario you overstay your welcome and your Max Payne, the stock just starts going the other way, you lose a dollar. If 300 shares is too much, right? You already identified at your level of experience where the position size should be. So I don't care. It doesn't matter if you have a million dollar account, or if you have a $30,000 account. If you can't hold on to 200 shares up a point, that is your screaming lights shining right on you telling you you are position wrong, okay? So now we have to figure out what's a comfortable level that you're not going to get freaked out, that you can still get the biggest bang for your buck, still know your Max Payne, right? Still know your Max Payne and feel comfortable at the same time because if you're ever in a trade and you don't feel comfortable because I've been in trades and you guys know this. I've been in trades that I'm making money on and I go, I don't want to be in this trade, right? How many times have you guys heard me say that? When I was in that stock, MBB, we were up 13 points. I didn't want to be in the stock up 13 points. So imagine you're in an extra 100 shares of Tesla, you know, down 30 cents in the trade and you start freaking out, right? As traders, we need to be comfortable. We have to have comfortability. If we don't have comfortability, we don't have an edge. We know we're going to diminish our edge. We're going to completely diminish our process. And then we're going to put ourselves in the position that all we're doing is we're playing not to win instead of playing to win, right? Most traders, because they're brand new and they have no process, they're playing not to lose, right? They're putting on a trade. The first thing they say is, well, what's my stop? The reason why you're saying what's my stop instead of where's my potential is, you're positioned wrong. You don't trust your process, right? You don't trust your process. So when you position wrong, you don't trust your process. Well, what do you think is going to happen? Every tick against you, of course, you get out of the position. That's called position sizing. So no matter what your account is, right, there's people in here who have a seven figure account. And I think there's somebody here who actually has a $2,000 account, which is incredible. But yeah, there is. Okay. So I know, you know, a handful of people have seven figure accounts. And I know a handful of people who have $2,000 accounts, which is incredible. But okay, that's that's that's kind of their scenario. And the key is not putting on size that is reflecting your account size. The key is putting on size that's reflecting your number one, your setup, right? The measured potential of your setup. There's a big difference between, you know, trading as we all know, a macro setup that could be work, you know, that could work, for example, for 10, 15 points, right? Like for example, you know, like we got Tesla, right? We got Tesla on from Monday, right? We got Tesla on from Monday. We all know there's an additional from the from from Friday's pivot. We know there's another 1213 points in the trade, right? This is called a macro big, big potential trade. But if you are positioned wrong, right? If you are positioned wrong in the tree, you're going to mess it up, right? You're going to absolutely mess it up because what's going to happen is you're thinking you're thinking more emotionally than you're thinking technically. So if you're a trader and you normally put on a thousand shares of Tesla, right? Because you have a bigger account, 2000, 3000 shares, whatever it is, right? If you're a bigger account, but you can't take that one point swing against you, you're wrong. You're doing it wrong. You're built your position, your foundation is based on starting with the roof and ending it into the poor concrete. We got a completely reverse engineer that we have to put you in a situation that you are comfortable. So instead of putting on a thousand shares of Tesla, it's not an ego, you know, it's not an ego trade, right? It's not an ego trade. Nobody's judging you. Nobody knows your position size. It's not a bravado thing. Put yourself in a situation that, you know what? I'm in the trade. I'm comfortable with the setup. A point is not going to kill me, right? A point is not going to kill me. And oh, by the way, we have 13 points in this trade. So wouldn't you want to give yourself logically? Wouldn't you want to give yourself a fighting chance to be in the trade with measured potential for 13 points while risking a dollar, dollar and change? Just think about that logically, right? So if you're in a thousand shares, if you're a thousand share player, but you can't hold on to Tesla down a point, you're not a thousand share player. Your account site says you're a thousand share player, but mentally you're not at that case yet. You're not at that point that you could trade a thousand shares. Of course the old adage is we never have enough stock on the way up and we have too much stock on the way down, right? So of course we want to pivot at 255 on Monday and in a straight line the stock goes down $13 and in three minutes everybody's saying, all right, Dan, what do you want to do with the rest of the day? Yeah, that's a perfect world. That's when you want to have max exposure. Guess what? We don't live in a perfect world, right? We don't live in a perfect world. Tesla is going to take out 55, is going to go to 54, is going to go to 55, is going to go to 54, 5380, 56, right? It's a very high volatile average true range performer. So you're not going to get the perfect trade. And of course I always say this and I stand by this for new traders, brand new traders, you get a dollar out of the trade, right? You get a dollar, 50 cents, 80 cents, whatever case it is, takes a lot of you off, use break even as you stop. It's not your fault if you get stopped out. You know why it's not your fault? Because you're building an account. You're supposed to do that. But if you are an ex-well, if you are a trader that's trading 3, 5, 7, 8 years, right? And you do that, that means your position will. I do that all the time because if the stock reclaims a really big level, I rather use break even as my stop. Because so for Tesla, when it goes down $3, right? When it goes that second entry we had, when it went down $3, $3 is enough not to see, well, let's see what happens later. You want to use break even as you stop because you're already seen $3. But for traders who are doing this 3, 4, 5, 7, 8 years, and you're saying to yourself, well, I got 50 cents out of the trade, now I'm going to use break even as my stop, you're oversized, right? You're oversized because that's when you say to yourself, I want to give it as much leniency as possible, as much leach as possible, that if it does do the little jukey-pokey for the first 5, 15 minutes, and then eventually you get some massive option flow that comes in that direction, there's a chance that buyers will completely disappear and the stock might collapse. And that's kind of what we're up against from Monday. So if you are, if you say to yourself, I'm a thousand share player and you have a $300,000 account, $800,000 account, whatever it is, but you can't, you can't hold the stock, a dollar against you, you're not, okay? So your job, right? Your job is to figure out how much size can I put on that I could still get the biggest bang for my buck, but at the same time, right, at the same time, feel comfortable, right? Feel comfortable, know that Max Payne, if it plays out and I get hit on Max Payne, I'll still be okay, right? That's where you start reverse engineering the putting on the position size because remember guys, position sizing, it's not a right, okay? It's not a right. I don't care that you have a million-dollar account. If you can't hold on to a trade, a dollar against you don't, right? You only have a million-dollar account because that's great. You have the monetary value in your account, you're going to be around for a very long time, but the point is you're not a million-dollar account trader, you're not. So you have to figure out how much size can I put on, get the biggest bang for my buck, stay in the trade, and at the worst-case scenario, my absolute worst-case scenario, if the stock goes against me, I'm down a dollar, it's not a big deal, right? No, but I don't care how much stock you're taking. Nobody should ever have a bad day losing a dollar on a trade, okay? It trades, you know, whatever, it trade one against you, but especially trading beta, when they move in dollars, right? Two, three, four, five, six, seven, 12, 15 dollars to lose a dollar, that means your position wrong. So what you have to do, and obviously I'm not going to, you know, go through every single person that's with your account size, but your job, what your job today is after we log out, your job is to be real with yourself, right? Place yourself in the proverbial mirror, or maybe the mirror itself, and say to yourself, I know how much size I've been putting on, and that size could be 50 shares, that size could be 100 shares, that size could be 20,000 shares, right? And say to yourself, have I been really maximizing the moves? Right, that's the first question. Write that down, guys. Have I been really maximizing with the moves, with measure potential, with my current size, okay? If the answer is no, we'll give you a solution, right? If the answer is yes, well, what the hell are you doing here, right? Most of us will never figure it out perfectly. That's why we're all here. That's why we're talking about this. So I would say the majority of us, and I would say probably 99.9% unless the .1% really loves to hear my voice seven days a week, right? The majority of us always have, we're always a work in progress. So we're always going to be putting ourselves in a position better, better, let me make myself better. So the question is, the second question is, now that you've asked yourself, have I been screwing up a lot of trades with my current position size? And let's just say my position size is 100 shares, right? Your next question, your next solution should be this. Instead of 100 shares, right? Start out with 25 shares. I know, I know, you're not going to make any money, right? Because when the stock collapses, the first trade you put on, the stock collapses $4, you're going to say to yourself, oh my God, I could have made $400 and now I only made $100. But you're looking at it from a financial point of view. You're looking at it from the point of the stock went exactly how it should in a straight line without a tick against me, right? You're looking at the euphoria trade. You're looking at the word done in seven minutes, you know, once a week trade, right? You're not looking at the majority of trades you're going to put out your career. So if you're normally a 100 share player, right? Normally that is your thing. You have to ask yourself, have I been maximizing the 100 share lots, right? If the answer is no, go down to 25 shares, trade 25 shares for two, three days, right? You're obviously not going to be affected mentally if the stock goes against you. Yes, you're going to minimize the trade on the way down because you're trading 25 shares. But that's a temporary solution. It's like putting neo-spawn, right? Neo-spawn is just a temporary thing. Eventually your skin is going to regenerate and everything is going to be fine, right? So what you're doing, what you're doing is dropping down at the size to start building, start building your foundation again from the ground up instead of from the roof down. And that's what you're trying to do. It's a temporary answer to a longer term solution. So what you can be giving up for one, two, three days, it's finally going to give you that aha moment to say, okay, wait a minute. I was positioned wrong this whole time, right? I was positioned wrong this whole time. Yes, I got once in a while those trades that went four or five points right away. But you know what? I had nine trades that I screwed up. And you know why I screwed up? Guess what? Because I was oversized from my experience level. Not oversized from my account. You were oversized for your experience level and that's the answer. So what you should be doing starting Monday, right? And maybe, you know, it's going to be very, very tough. A lot of you guys to turn around and go, wow, there's $15 still left in Tesla. Maybe I should trade and start this on another trade. That's a personal choice. You follow what I'm saying? And I get it. You know, I get it. There's not a lot of trades that we're going to have on Monday that potentially have $15 worth of range. I get it. I get it, right? Believe me, I get it. It's the greed factor. It's an emotional factor. But you got to look at it from the long-term point of view. This is a long-term type of scenario. We're not trying to put you in a situation that you're trading for the trade. We're trying to put you in a situation that you're trading for your career. That's the goal, okay? It's trading your career. And if Tesla, God willing, works and we don't have any Tesla overnight, I was thinking about shorting it over the weekend and we didn't do it. Same thing with the cues. We didn't take anything overnight, which I'm definitely going to be regretting come Monday morning. I have a feeling we're going to collapse one day. But anyway, you want to put yourself in a situation that you are developing good habits right from the word go that you are not delaying or procrastinating on doing it. So whatever your scenario is from Monday, right? I don't care what trade size you take. Do yourself a favor. It's going to be an absolutely great gift. Do yourself a favor and start putting yourself in a position that right away you start trading good position size. It's so imperative in your career that you start right from the word go. What you did in the past is the past. I've said this all the time. The past of the past, we don't live there anymore. You screwed up 200 trades. You make good money on 20 trades. That means 180 trades you minimized, right? And you minimized it because of your lack of experience because your bravado, your ego told you you're trading too small. So starting tomorrow, guys, if you had this conversation and what I just said pretty much hits home and it should for a lot of new traders, start from tomorrow is the first day from the rest of your life, okay? Start out. And nobody says you have to trade 25 if you're a 100 share player. Nobody's trying to say you have to trade 25 shares for the rest of your life. Trade two, three weeks a week. Give yourself at least a week, right? After a week, ask yourself a question. Do I feel much more comfortable, right? Did I maximize more trades this week, right? Was I feeling a lot more confidence in the approach? Was I feeling a lot more confidence in the measured potential, the way I entered the trade? I didn't get shaken out because technically the stock was still below the previous five minutes high. Did I do everything right this week? Then now I could take the next step. And if the answer is yes, right? Then you don't go back from 25 shares to 100. Go 25 shares to 40 shares and then spend another week. Did I do everything right? Okay. Did I exit and enter properly and measure potential? Did I take cash flow? I understand. I didn't make the money that I wanted to, but I started building the building blocks. Another week goes by, right? Now you're at 50 shares. You're saying to yourself, let me go up to 75. So the moral of the story is you need a full month to kind of reverse engineer what you're doing just to get you in the position that you fully understand what you did wrong prior, right? To sizing down, right? Prior to sizing down. And once you realize that after a month, that's when you say to yourself, now I'm comfortable in my original tier size. I could feel good about it. Now here's the million dollar question. And this is the question I get asked a lot because this is how good our process is. Hey, Dan. And I say this, of course, in the most loving way because your bastards are spoiled, right? Hey, Dan, I've been making the same amount of money for the last three, four months. What do you think I should do? When do you think I should start sizing up? That's your answer. When you're bored, when you're so damn bored out of your mind that you're making the exactly the same amount of money for two, three, four months in a row, that is your first clue, guys, that you should start sizing up, okay? That's your first clue. When you're literally in the zone, like for example, if you're a trader, let's just use the easy number. If you're a trader and you're making 10 grand a month, right? One month goes by, you made 10. The next month goes by, you made 10,200. The next month goes by, you made 9,800. The following month you went by, you made 10,300. The following month went by, you made 9,900. Yeah, you've maximized your tier size, right? You've maximized it. There's nothing else you can do. Of course, you could get a good trade, but overall, with your consistency level and your comfort, you've already maximized your tier size. So now that's where your next step is. Dan, what do I do? I'm bored. That's a good problem to have it. I get that email all the time. When do you think I should start? Yeah, this is the time. You're bored. You've made the same money amount of money, three, four, five months in a row. This is where position sizing gets a little tricky, right? So now you have all this confidence, correct, guys? You've made money three, four months in a row. It's good money. Whatever your money is, 3,000, 30,000, 130,000, whatever it is, whatever money you made, you're making this money consistently. You're feeling good about yourself, right? You're feeling good about yourself. Food tastes better. The air smells fresher. You grew. I'll keep it PG, right? You grew a couple of inches, right? You're feeling good. Everything's good in the world. So now you're a little bit sipping on your Kool-Aid, right, guys? You're sipping on your Kool-Aid a little bit. And now I emailed Dan. He gave me the green light. I'm going in, baby. If I was trading 100 shares, time to step it up to 500 shares. You don't want to do that. You don't want to do that. Let me tell you why. Let me tell you a quick story, okay? When I was trading for years and years and years, I was swinging small cap stops. And I remember the first time I went from 1,000 shares to 5,000, like 3,000 shares from 3,000 shares to 5,000 shares. And I was at that 5,000 share level for a long time, right? For a long time. And I started making money and it was pretty good. And I felt myself. I woke up one morning, you know, guy, you got it. You're it. It's time to go bigger, baby. So what do you do? You're trading 5,000 share lots, right? That's $50 a penny, right, guys? Do the math. That's $50 a penny. You are all good with that, right? The stock went down 10 cents. It's only 500 bucks, right? Not a big deal. I've been doing this for a long time. $300 losses, $200 losses. What's the big deal? Let me tell you what's the big deal. Then you go to 10,000. That's when I made my card on the stake. I went to 10,000. And all of a sudden it's not 50 cents a penny. It's not $50 a penny. It's $100 a penny. And then you go down 3 cents in the trade. Like, wait a minute. How am I already down 300 bucks in the trade? You go down 5 cents. 5 cents? The trade has just started. 5 cents. And you're like, oh my god, I'm already at max pain. What the hell is going on here? And you freak out. And you sell it down 500 bucks, right? You sell it down 500 bucks. Obviously what happens 30 seconds later, 30 seconds later, the stock explodes, goes up 30 cents. You could have made 3 grand, but you just lost money because you know why? You were oversized because you were overconfident because you were trading at a previous tier to tier size that you were comfortable at that point. But you're sure yourself not comfortable at the new point because there's a big difference between $100 a penny and $50 a penny. And mentally, if you're like a weak mental midget like I was when it comes to finances, especially growing up, you're really going to appreciate the difference between $100 a penny and $100 a penny. And I freaked myself out. So guess what I did? I went back to 5,000, right? I went back to 5,000. That's like the old dirty, funky shirt that you have for 15 years. Your wife is saying, if I see that damn thing one more time, I swear I'm going to strangle you with it. Throw the damn thing out, right? But you're comfortable with it. It's like you're warm blanket. You feel good around it. So you go back to your blanket. You go back to your additional tier size. And now you've created a mental hurdle that you believe in your head that you will never be able to size up again. And that is wrong, right? That's absolutely the untrue. So when you are bored, right? When you're absolutely are bored in your ability to make the same amount of money and you're really ready to give yourself a raise, right? You don't go from 100 shares to 500 shares. You go from 100 shares to 200 shares, right? It's not that big of a deal. There's no difference between 100 shares and 200 shares mentally. It's just not, okay? There's absolutely no thing. Sit in that level for a month, right? You've already made $10,000, right? $10,000. You know what? Your goal now is to see if that extra 100 shares can make you $11,000 for the month. $12,000 for the month, right? It's an extra 100 shares throughout the month. The same trades you've been doing that it doesn't make a difference if you're short 100,000 shares or three shares. The stock is either going to go in your favor or it's not. We know that, right? The stock is not going to move because you're sizing up on it or you're sizing down. So when that happens, okay, your job now is to see, am I comfortable with the initial bump in trade size that I could commit to this new level? If the answer is yes, stay at 200 shares for a month, or at least two weeks. If you see absolutely no difference in 100 shares to 200 shares in your first two weeks and you're saying to yourself, well, you know what, I'm making a little bit more money so maybe instead of making $270 on the trade, now I'm making $420 on the trade, right? There's not really that big of a difference and you say to yourself, all right, you know what, let me go up another 100 shares. So you keep on going up 100 shares and obviously your account balance has to reflect your ability to size up, but that's how you do it, okay? You don't want to shock yourself into a state that as soon as you put on bigger size, you're reverting back to your original size because mentally you went up too far too fast, right? You don't want to go up too far too fast because again, this whole game, right? This whole game is mental. Everything is mental, okay? Don't think of it. Don't let it trick you for a second. This whole business is mental. We have to feel comfortable, you know, and mentally you know the difference between a stock going up 100 shares, you make 100 bucks, a stock going up 200 shares, you make 200 bucks, right? If that's freaking you out, you don't do it. You gradually do it. Maybe 125 shares, maybe 150 shares. Some people are just aggressive, right? People turn around, oh, hey, Dave, I've been trading 200 shares. I'm ready to go for 400. Try it, right? Try it. And if the answer is no, that you can't mentally do it, there's nothing wrong not going back down to 200. We don't want to do that. Go up to 250, right? Go up to 250. If 300 shares is a little too much, go up to 250. Just continue increasing, right? Continue to slowly increase size that you are comfortable at that next level. Once you go, you know, three, four months and you're just saying, you know what? I'm just going 100 shares at a time. I'm increasing. Nothing is bothering me mentally. I'm still trading the stock technically. I'm still taking money on the way up. I'm comfortable in the trade. I feel nothing mentally wrong if the stock map's paying goes against me. A dollar. I'm trading, you know, I'm trading larger size based on a macro setup or a micro setup, right? Scalp versus potential multi-day move. And you say to yourself, you know what? I'm okay. That's when you again start to increase size. It's very, very tough to increase size if you don't believe in yourself. If you don't believe in your process, you don't believe in technical analysis. You don't believe in what you're seeing. It could be working. You just don't believe in it. You can't be in this business doing anything, committing to any type of scenario if your heart is not a hundred percent and your mind is not a hundred percent committed to what you're putting on, to what you're seeing. So if you, you know, if you have it, if you do have that million-dollar account but you're screwing up a thousand, two thousand share trades, it's time to humbling yourself and get back to planning Earth, okay? Just because your account balance says a hundred, two hundred, three hundred, five hundred grand, but you're not mentally there, right? Get come down to Earth. It's nice here, right? It's nice here. People for the most part are friendly. The food here is pretty good. Come back to us. Come back to us. Start small. It's not a bravado thing. What you're trying to do, what you're training to do mentally is putting yourself in a position in all aspects of this business that no matter what happens, if your worst case scenario happens, your max pain happens, guess what? You can make it back to the next trade. Not 10 trades, not 12 trades. You can make it back to the next trade and that's when you know you're completely in control. You're putting yourself in a position. You're not going to mess up the trade technically because you're oversized. Excuse me, I dropped something, right? You're not going to oversize technically, right? You're not going to oversize technically because you're not ready there. And if you try that, right? If you, honestly, after we log off today and you turn around and you turn around and you'd be like, you know what? Dan is right. I've been, you know, I've been trading more. You know, I've been making money, whatever the case may be, break it even, lose a little bit of money, all depending on your experience level. But the point is, if I'm right, right? For what I've said in the first 40 minutes of this webinar, if I'm right and that is you, forget about the bravado, okay? Forget about the bravado. Think long-term. Whatever you decide to do on Monday, right? If you scale down and you start, you know, start rebuilding your mind, you start rebuilding your confidence that process is still the same, okay? That I guarantee that process will never, will never, will never be different. The process is the same, but now it's time to rebuild yourself. And what you could possibly do, and again, this is what we say all the time, what you could possibly do tomorrow, right? Literally tomorrow, okay? Can benefit you 20 years down the line. So don't think short-term, I'm gonna miss a trade, you know, I'm gonna miss a trade and I'm gonna, you know, now make 80% less on the trade. Don't look at it that way. Look at it as I'm re-wiring my brain, I'm getting confidence, and I'm gonna take that same trade 10 years from now with 10 times bigger size because I properly tiered and sized my way to there. So I was in the position that I earned, right? I earned this size. I just didn't give it to myself and hope for the best. Okay, guys? So it's super important that you do that. I did that, you know, I did that, you know, when I had to rebrand myself back in 2003, I started back small, and it worked, you know, things started working again, and taser and this thing came out. It was a very short time that I had to kind of scale down in size, but mentally I needed it. You know what I mean? Mentally I needed it, and, you know, yada, yada, yada from 2003, where 2023, here we are. You know, so if I never, you know, if I never went back into time and to kind of decompress my ego, right, deflate my ego, and I say to myself, this is the best thing for me at this time, I probably would not be as effective as I am today, and it's a very, very important part of what we do. Okay, guys? So that's my little spiel. Questions? Questions, comments, all that good stuff. Letter rip. No questions? Man, you guys are easy today. No questions? Yeah, I mean, sometimes, you know what I mean? Sometimes when you use topics, sometimes you don't even need, you know what I'm saying? Sometimes you don't even need to ask questions. Sometimes the question is already answered. You follow what I'm saying, guys? So I kind of understand why nobody is having questions right now, because realistically, one second, Sean, because realistically it just hit home, right? Think about it, guys. What I just said, it should have hit home. So it's one of those situations that it's not one of those, how do I do it? I just told you how to do it. You know what I'm saying? For this specific topic, right? For this specific topic, you know, for this specific topic, I kind of answer what you should be doing. You follow what I'm saying? So I totally understand that there are no questions, because it's a self-reflection type of scenario. Like there's certain topics that we talk about, order, entry, this, that, and the other thing. Yeah, there's a million ways to answer that question. But this is a self-reflecting type of question. And if you rewatch today's webinar, whether, you know, later today when Kyler puts it out, you'll see exactly why you didn't have any questions. You know what I'm saying? You'll see exactly why you just didn't have any questions. You know what I mean? Yeah, I mean, that's just the reality. It's just one of those topics. Yeah, it's just one of those topics. If you rewatch this workshop a little bit later today, right? A little bit later today or another point, you'll see why you don't have immediate questions. Let me just answer the other gentleman's question first. Let me just see what he says. Let me know Max Payne and share price. Well, it's not every, keep this in mind. Keep this in mind. Every trade is going to have a different Max Payne, right? Let me explain you why. Right? Say, for example, say, for example, we, what's the pivot on Monday for Tesla? 255.80, right? Let's just say 255.80 is the pivot, right? And let's say Tesla goes down to 255, you know, rallies back, right? So we already know that 255 is the second entry, right? What I do, what I do, right, what I do is I like to use the previous five minute high as my Max Payne, right? I like to use the previous five minute and sometimes the previous five minute high, it could be two and a half dollars away, right? Think about it. It could be two and a half dollars away. So you say to yourself, well, I don't want to risk two and a half dollars on X amount of shares, right? Exactly. You have to define where your Max Payne is first. Exactly. You have to define what is first. Sometimes my Max Payne will be 70 cents, right? Sometimes my Max Payne will be 70 cents. So you have to define what your Max Payne is first. Like, what I always do is I always see, I always know where the previous five minute high is. And sometimes I go, all right, I'll risk two bucks on Tesla. But you know what? I'll scale down in size, right? I'll scale down in size. I'm not going to be in the same size risk losing $2. It just doesn't make sense to me. I'd rather lose, I'd rather lose a dollar on bigger size than give it a little bit more rope on not doing it technically. It's going to be doing it technically. So I have to always know what my Max Payne is first. Okay. So that's a very, very important thing. If it's a scenario of, Sean, if it's a scenario, for example, if it's a scenario, for example, you know, you shorted second entry at 55 and it goes down to 54, right? And if it goes down to 54, you know, you always have to take some money off. You always hear me say, guys, take on the way down. Always take on the way down. And then you turn it around and say, you know what? I'm going to use breakeven as my stop, right? That's what we want to use breakeven as your stop. But if you don't want to use breakeven stop, you have to define, you have to pre-define what your previous five minute candle looks like. And if that previous candle is 70 cents away, $1.50 away, $2 away, then you already know what your Max Payne technically is. Now your question is how much size do I decrease so I could sit in there? If I choose so, if I sit into that Max Payne, how much size can I hold and still be comfortable in that trade? So, yeah, absolutely. You have to pre-define, absolutely. You have to pre-define what your Max Payne is first. Okay, that's the first crucial part of this. Next question comes from Tim. Vazo asks, how about adding to a winner? Look, look, here's my answer with adding to a winner. You hear this all the time. People on social media talk about it. You know, they like to add to their winners. You know why they like to add to their winners? The majority of traders who trade on social media is they don't buy into strength and they don't sell into weakness. I love buying into the strength and selling the weakness. What they do is the opposite. So, for example, if they want to short a shorter stock, they'll short it, right? They'll short it on a corner called blow off top, right? They'll short it on a blow off top and then they'll start adding as a stock, you know, they'll start adding size as a stock starts working in that direction. For me, it's different, right? Like I know how important 55-80 is, right? So, so let's just say the second entry is 255. I want to get as much as I can off that 255, because I know that there's $12 of measured potential room, right? I know it's $12, $13 of room. So, I know if the stock fails at that level, I don't want to be in that trade, right? I don't want to be adding on to a trade that already stalled out at that level, right? I definitely don't want to be, you know, how we all know how Tesla goes. It starts going down $1, starts going down $2. Why would you keep on adding to a position that's going already for you down $2, down $3? You should be covering, right? You should be covering. You should be scaling out instead of adding more size, because what you're doing is you're taking our edge, right? You're taking our edge of a very, very specific price point, and you're depleting it, right? You're depleting our edge by keep on adding more as the stock keeps on going down. Remember, there's no guaranteed, right? There's no guaranteed that the stock is going to reach measured potential, right? There's no guaranteed. What happens if you short the stock at 55, you short the stock at 54, you short the stock more at 53? 53 is the low of the day, and the stock goes to 55. You lost money. You follow what I'm saying? Like, you lost money on the trade. My worst case scenario is, well, I just covered 40% of my position, 50% of my position. All right, I made a couple of bucks. Worst case scenario, I used break even as my stock. But now you're hoping, right? Think about it. You're hoping that the stock reaches measure potential. I'm, you know, I'm hoping I don't get stopped out. Big difference, right? Think about it. You're hoping that you don't, you just didn't take a winning trade and turn it into a losing trade. I'm hoping I don't get stopped out break even. You see what I'm saying? It was a big difference. So I, I, I do not, I definitely do not add in. I definitely do not add. I 100% I do not add. Orvin asked how to engage size available, bid or offer to take size. Not to worry about it's huge slippage. Trying to figure out how I could answer that question. That's a tough question, Arvin, because it's depending what you're trading. Let's just say you're trading Apple, Amazon, Microsoft, Tesla, you can get away with that. You follow what I'm saying? You can get away with a stock giving you less slippage and you can still get aggressive. The problem is if you were taking size on the video, if I'm saying, if you're taking size on the video and installs out on you, you're going to have slippage. You're going to have major slippage. Because the way the video trades, you might get killed. You know what I mean? So it's very, very tough. Certain stocks is much easier to do. Certain stocks is not. Like I found myself trading the video a lot less recently than I used to. You know what I mean? So certain stocks you could, because the slippage could be 15, 20 cents, 30 cents. Some stocks you just can't, it's impossible. JJ asked, do you ever, do you always know your max pain before going in the trade? Yeah, I generally do. Because I already know what the previous five-minute high is. I'm always aware with the previous five-minute highs. Yeah, I always do. Absolutely. 99% either way. Moe asked, we have to define risks when the trade is invalidated or max pain. Well, you'd like to, yeah, that's kind of what JJ just asked. You kind of want to know your max pain first. Like I already know two things going into a trade. I already know that the stock had a previous five-minute high. That's my max pain. And I also know my measured potential, which is 242. So I already identified both the max pain and the max reward on this channel. So yeah, I definitely already know both sides. Absolutely. Let's see here. Let's see here. Let's see here. Kind of short before our pivots. No, yeah, you can't. Moe, that's the thing. That's the thing. Guys, under any circumstances, I don't care if you're religious, not religious, God could be telling you to go in earlier before the pivot. You never do. God could be telling you to go in with an AK-47 pointed at your cranium to go in before a second entry. You don't do it. You don't anticipate a trade. You don't quote, unquote, start. Well, what are you starting for before a pivot? There's no reason to ever start before a pivot and definitely never start before a second entry. So I would never, never, ever, ever, ever tell anybody to start before a pivot. You're leaving it up to God and you don't want to leave your trades up to God. Let's see. Let's see. Let's see here. Let's see. Moe asks a relevant question. You use linear regression source from the close. I don't know what it is. It's whatever the default is. Moe, here it is. Whatever the default is. It's all one in close. So whatever the hell that means, that's what I use. I've never touched the formula for all this, for any of these. So my Bollinger bands are 22 in the close. My linear regression line is all one to the close. I don't even know what the hell that means. You know what I'm saying? I have no idea what that means. But that's it. I've never changed the standard deviation or any of the formula in anything in the charts. Let's see here. Dino, Dave, follow up on that. Well, Tesla is not volatile. Nvidia is volatile. Tesla is actually the opposite of volatile. It's not volatile at all. It just has extraordinary range. But Tesla honors levels better than any stock on the planet. It's not volatile at all. Nvidia is volatile. Can you comment on a five-minute stop versus 60? Yeah, all it is is a five-minute stop. A five-minute stop is a shorter timeframe that is going to alleviate your risk. The only people I encourage to use a previous 60-minute high are traders that are very experienced, like Kane will use a 60-minute high. He'll use a 60-minute high because he wants every opportunity for the stock technically to work. So I would encourage to use the five-minute stop unless you're willing to put on a lot more risk and you really, really believe in the trade. Let your account size be reflected of your risk of the 60-minute chart. Because sometimes the 60-minute view will be $4 away. So you could be risking literally $1 or sometimes $0.60 and getting back into the trade or literally risking $4 to $5. So I wouldn't encourage the 60-minute chart unless you really, really understand what's going on. Nick just asks, regarding options, he's profitable but always feel more comfortable taking more off initially. However, I don't maximize the trade. Again, that's a time thing, man. That's a time thing. I always encourage everybody to take money, $0.50, $1.50, take off half. Pay yourself. Pay yourself for the research. Pay yourself for being patient, for being confident and all that stuff. Pay yourself. I think you'll start taking more off with bigger moves as time goes by. It's a time thing. Unfortunately, it sounds very generic, but time is one of those scenarios that is going to make everything easier. For example, on Tesla, I always encourage everybody to take some off down a dollar, but you know there's $12 in the trade. If everything goes well, you want to have at least 20% on if we do get a measure potential move to $243. So we have a $12 range, but maybe take 10, 15% off down a dollar take another, get down to maybe 3.25 size down $2, get down to half size down $4 and then keep a runner. You have 20% off, 20% left, take another 10% down 6, take another 5% off down 10 and the last five, it also correlates how big the range is for the setup. It also correlates how big the setup is as well. So that's that. Yeah, time equals everything. Time is everything in this business. It's just a scenario that time is different for everybody. The natural progression for everybody is going to be different. But yeah, when you have a trade that potentially has $15, you want to scale out slower than a trade that has $2 range. So if the stock has a $2 range, then yeah, I'm taking off half up a dollar right away. Why not? Right, I'm taking up a half a dollar and if the stock goes up another dollar, I'll take another 25% off just in case it keeps on going. But I'm okay with stopping out, break even the last 20%, 25%. Yeah, you could play around with that. Yeah, Scott, you could play around with that. You could always play around with that. It's more of a playing around thing. Again, the key element is the higher potential move, you want to start slower taking your profits. And we have a tighter move like AMD, for example, right? Like AMD, for example. AMD, if everything goes well, 109, let's say 109 second entry gets to 107.5, you know there's $1.50 in the trade. So if the stock goes down 50 cents, take off 25%. If the stock goes down a dollar, take down another 25%. If the stock goes down $1.50, take down another 25% and keep a runner. But if you want to take off the whole thing and to measure potential, you can, right? But there's a big difference between $1.50 potential on AMD versus 12, 13 points on Tesla. If I'm saying so, you're going to be much more aggressive taking profits off on AMD than you are on Tesla. All right, guys. So that's it, folks. I have to run to the gym because I have a bunch of stuff I have to take care of today. Guys, have a great, great weekend. Again, thank you very much for joining us. Again, this is one of those workshops that kind of, it speaks to your soul, right? It speaks to your soul. And the most important thing is you start preparing for it as soon as possible. All right, everybody, have a great, great weekend. And I will see you guys tomorrow. Take care, guys. Have a great, great day.