The Art of Position Sizing with Anish Sikri | US Investing Championship Top Contender

Summary

In this enlightening video, Anish Sikri dives into the intricate world of position sizing, sharing insights from his own experiences as a top contender in the US Investing Championship. Anish emphasizes the importance of managing risks, especially with small accounts, and highlights key guidelines and strategies rooted in Market Minervini's teachings. Throughout the presentation, he elaborates on the psychological aspects of trading, showcases real-world trade examples, and explains how to adapt to market conditions effectively. The video is a treasure trove for traders looking to refine their position sizing techniques and boost their trading performance.

Highlights

• Anish Sikri discusses the art of position sizing, emphasizing its complexity and necessity for successful trading. 📊
• He references Market Minervini's books as must-reads for understanding crucial chapters on in and out trading. 📚
• Anish details optimal position sizing, advising a maximum of 25% of your entire trading account per trade. 💡
• He stresses the importance of never exceeding 50% of the account on any single position. 🚫
• Real-world examples from Anish's trading experiences highlight practical risk management strategies. 📈

Key Takeaways

• Position sizing is crucial for managing risks, even for small accounts.
• Never risk more than 1.25 to 2.50% of your entire account on a single trade.
• Use Market Minervini's books as a fundamental resource for understanding position sizing.
• Always have a game plan for where to place stops and respect them.
• Scaling in and out of positions is essential based on market conditions and personal performance.

Overview

Position sizing is an often overlooked yet crucial aspect of trading that Anish Sikri meticulously unpacks in this video. He starts by acknowledging its perceived simplicity but quickly dives into its complexity when applied in real-world scenarios. Position sizing not only impacts trading performance significantly but also helps in risk management, which is vital for long-term success. He emphasizes the importance of referring to essential chapters in Mark Minervini’s books that provide a solid foundation for understanding position sizing and risk management.

Anish is candid about his trading journey, sharing both his successes and learning moments. He had initially followed the CAN SLIM model with a higher risk threshold but realized through extensive trading and analysis that reducing risk to 1.25-2.5% per trade was optimal. He stresses that even small accounts can achieve impressive results with meticulous risk management and strategic position sizing. Throughout the video, he shares insights on psychological resilience and how to handle FOMO (fear of missing out) effectively.

The presentation is rich with practical tips and real-world examples. Anish provides detailed guidance on scaling in and out of trades, adjusting according to market conditions and personal performance. By sharing his spreadsheets, he demonstrates how traders can make informed decisions to optimize their trading outcomes. Anish's engaging style keeps viewers hooked, offering them not just theoretical knowledge but practical tools and strategies to enhance their trading expertise.

The Art of Position Sizing with Anish Sikri | US Investing Championship Top Contender Transcription

• 00:00 - 00:30 [Music] hello guys hi hi everyone thank you for attending today's presentation um it's been a long time i've presented um i had the rest of the team has been presenting but they all requested i present this material so today i'm going to talk about the art of position sizing um this is a very complex um like it it seems easy but it is a very
• 00:30 - 01:00 complex in execution um and i'm not really a great artist so um so bear with my uh graphs um they're not as um artistic uh but but it'll get the point across um so it's more about the understanding how even a small account can make a difference um and and i have um extremely real world uh data baked into what i'm gonna show later in today's presentation
• 01:00 - 01:30 so uh welcome um and as i usually when i present uh for the group i'd like to always present presentation with the gilbert slides and there's dilbert on trading which is superbly super accurate and this was in 2015. if you guys can uh enjoy the joke so okay
• 01:30 - 02:00 um you know i've actually seen a lot of people becoming stock traders for the first time which is a good thing are the markets going up but that happens all the time which is good uh and please never max out your credit cards to be a day trader don't ever do that um and richard everyone can hear me right yep i believe so loud and clear all right so uh this is uh from the blog
• 02:00 - 02:30 of trader lion um richard's company oh he works for them um they had a great quote by gary vaynerchuk so um this is true for this presentation uh having your spreadsheet is what um you know you have to do the work um and this is a great quote um so i just took it off their website thank you richard for your website for that all right all right so this is disclaimer uh me richard ryan sanjay bob none of us are
• 02:30 - 03:00 financial you know advisors this whole presentation is for education purposes uh you cannot blame us for anything this is this is ibt meetup um so it's all legalese you agree to it yep entertainment educational purposes okay so today's topic um there are um two chapters um that i highly um it's mandatory to read uh you have to reread
• 03:00 - 03:30 understand them on because that is the core of this presentation is these two chapters and you can see where i'm about to lead is mark minorini's books because i have his logo there uh the two chapters in and out um you have to have both the books and these are the two chapters from um his book the books you can't just read one chap on one book and it's not it's it's actually um as he you know he's told me these books are in a volume format
• 03:30 - 04:00 so both these chapters um on the first book is chapter 12 and 13 and then section 8 on the second book they go hand in hand so you have to go in and out if you have to read 10 times read it study it everything is in these two chapters now i've synthesized the material as easy as i can to present um but it is the most game changing um performance but actually
• 04:00 - 04:30 i can attest to this what i did last year took me a year to achieve for the us ic i did that in about five months this year so um just by understanding the material in these chapters all right so let's talk about some position sizing guidelines so uh the first part is uh let me move the mouse here okay can you guys see the
• 04:30 - 05:00 mouse cursor on the screen yeah we can okay so this one took me a while to understand this uh it may seem simple but i originally started with uh with the can slim model i was doing um i always initially did my risk was about eight percent in the entire account so that would be my threshold limit so i was treating that for years and which is not that much because i would recover it really fast but looking back and
• 05:00 - 05:30 studying all my trades i was like wow that's way too much risk because once you get once once your account is big enough you cannot take that type of risk um because there is a risk of ruin on that so this the first point is very important is the entire account the maximum risk is between 1.25 to 2.50 now in this example i use a 10k account yeah you may think oh it's only 125
• 05:30 - 06:00 or 250 you know dollars maximum but believe it or not these numbers are very critical even if it's a small account a small amount that doesn't bother you that's fine but this small managing risk at this level can really do some amazing um results um and the second is the maximum eight to ten percent maximum stop per trade let's say there's a gap down uh something happens uh maximum eight percent that's with o'neill um
• 06:00 - 06:30 on average uh even the lim o'neill um and um mark all of us get out by like five um i moved from eight to five about like years ago um now i'm my average loss is even less than five percent uh i'm actually at two point eight percent but that's with experience um but um if you're new to trading um it should be your hard stop like and but this is based on your proper buy point you can't just
• 06:30 - 07:00 arbitrarily choose eight percent it has to be in sync with the proper breakout entry um but only in in essence it should be around five or six percent um because something's going wrong if you buy something you know and then um never take any position size larger than 50 so let's say you have a 10 000 account you reduce it um maximum position on two trades uh 5 000 each uh that's maximum no more than that i've done past that many times but
• 07:00 - 07:30 moving forward that's not the right approach um because what happens is your risk of ruin goes up especially if you're doing for example some chinese stocks last year we had that was it linked coffee link lk um now originally i made 30 of that stock got out within two weeks and then a few weeks a few months later another setup was coming i had a large position i was
• 07:30 - 08:00 about 75 percent of the account but it wasn't moving and i was like okay let's get out this is the competition time and a week later that stock collapsed so that was a wake-up um call then i was speaking to matt caruso about it like oh you gotta like watch out for some of these stocks especially tiny stocks when you're using uh size um so i made some mistakes i mean i'm a trader too i make mistakes um and then i learned the lesson on and that on my
• 08:00 - 08:30 self analysis never a position losing 50 because your risk of ruin can be greater especially if you're using margin then the risk is off the off the rails so uh and i'm going to explain about this and i have examples about the 50 but then we move into optimal position size so optimal position size maximum should be about 25 off your entire trading account so you can have four positions of optimal size of 25 each so in a 10k account it would
• 08:30 - 09:00 be 2.5 k per position so that's four trades and you can have four different stocks uh for example that actually is mathematically it's very optimal uh and that's pushing it now um let's say you're multiple stocks you want to buy i know this is a little bit more aggressive trading on swing size but over diversification goes against your portfolio performance so
• 09:00 - 09:30 for me i i do great when i do four to five positions i do phenomenal um i can concentrate i can focus on what's going on um and i can pick up winners and there are many times i have four stocks moving all at once um and that feels great and then if you know if let's say if four stocks are moving or two stocks are moving and two or not i unload uh the the two stocks and manage my risk even better um but now last year if you guys look at the performance of my trading competition
• 09:30 - 10:00 you can look at that april and may my performance dropped uh there's a slight performance drop the reason why i ended up having um 10 positions uh and they were mismanaged on size and i had to immediately like figure out the mistake was i there's so many stocks are moving i end up buying 10. the best stock was the not the size wasn't optimal um in that so that's when i learned immediately i learned the lesson all my trades have to be a maximum for positions
• 10:00 - 10:30 originally i've done four positions down to three positions down to two positions down to one very concentrated position uh provided everything is moving well now i don't recommend that anyone do that it's not it's not worth it um yeah the gains are good but your risk has to be really small but stick to the guidelines here this alone can transform your account the other two points are mental capital um having four positions can keep your head
• 10:30 - 11:00 cool or four or five or even eight positions if you uh want i'll explain how you get eight positions um but you gotta maintain your uh one you need to control your fomo if you're missing out look stocks go up get to the next trade so proper positioning if you mess if you're chasing a trade wrong position sizing can can be devastating and i have examples on that too and while placing stops and managing risk you have to respect your stops
• 11:00 - 11:30 always have a game plan where the stops are and they need to be in the right location okay so um and it has to be in the right location in respect to where you're buying them and then buying has to be done right if you because this is where you manage your risk to reward is is where you're buying and where you stop it's um and any questions so far i'm not saying anything just yet there's
• 11:30 - 12:00 a question about whether the slides will be emailed to be available um yeah yeah sure i'll get the slides out yeah no problem on that cool i think that's it so far okay all right um richard you want to add anything to this uh nothing other than just yeah stop losses are absolutely vital to make sure you're managing your risk properly i mean i think you summed it up
• 12:00 - 12:30 really really well all right let's go okay so there are some spreadsheets oh let me go back um i was on um so some of the position size spreadsheets expediency spreadsheets are actually in uh chris rona's website and i discovered this webpage and has stopped by watching richard's video on youtube um so it's a really good spreadsheet i use mark's platform uh private access to
• 12:30 - 13:00 put all my trades in it has data analytics in there i use all my data i've done enough trades that i know my numbers pretty much by heart now uh but if you need uh the spreadsheets you can take a look at this it's really good it's there if not you can use the formulas in mark's books everything is laid out in his books just got to put them in a spreadsheet and that's it but uh but i want to thank richard for having this interview it's a great interview and then the the resources are right there so that
• 13:00 - 13:30 was really good and okay all right so let's talk about this now let's say um i'm purposely using a small account um there is a reason if you're new to trading it's better to um have a small account um because sometimes i have a friend of mine he was starting off with a very large amount as getting into trading and he couldn't sleep at night i told him that's past your um you know comfort pillow factor
• 13:30 - 14:00 you have to sleep well at night and everyone's different but when it comes to a short-term trading and swing training getting your style right um it's highly recommended to do a smaller account um what you know it's it's never going to be a situation where um it's going to work things right off the bat yeah last year people got you know things moved you bought zoom you bought tesla things move but that doesn't absolutely didn't happen this january i was fully i to be honest i was aware of
• 14:00 - 14:30 that markets do turn to change um and you have to be flexible um and you could have a position size that is very uncomfortable for you and that creates more stress more nervous action and all kinds of other you know things that follow up will cause other problems so managing size is is critical um it's as critical as respecting your stops
• 14:30 - 15:00 um so let's say you have an account of 10k maximum four positions would be of 25 percent size of 2500. so this could be four different stocks you could have apple zoom tesla cliff resources like the steel stocks anything that's maximum now when you're starting off you can go with that approach but you you have to manage your risk your let's say you're buying uh 25 position size uh and your maximum risk would be 1.25
• 15:00 - 15:30 now that's but you got to know where your stop is uh but but i'll explain that on the next slide now let's say you reduce the half of the original size down to one eighth of the account so now you actually have eight positions you can create uh when you're testing out the market you can go out with that like let me try the first trade if if it moves you increase your size and i have a full spreadsheet on this um and if you want to go even more conservative you want to really feel the market you can go 116 off the
• 15:30 - 16:00 original of this block so you're splitting this trade into like you know more small trades now you may think 625 doesn't go a mile it does it actually does um because your maximum risk is really um you know you have to go inverse go from small to big not the other way if you're new to trading um you know if you're starting off let's say tomorrow for the first time um you should not
• 16:00 - 16:30 fork out 25 percent size on on on the fly so okay so as i was saying maximum risk of total equity um and your total account should be uh negative 1.25 up to 250 you can do um you know two percent 50 uh two point two five zero so that would be that would range between 125 dollars 250 dollars now if you use 25
• 16:30 - 17:00 size with the 5 stop it still equates to 125. so that's one trade with the five percent stop um you can actually hit your um risk to total equity right off the bat prior you have no cushion in your account now let's say you do it um at a one eighth of an account at one two five zero now ten percent stop i don't keep ten percent stop that's too wide but let's say with a five percent stop you would have a sixty two dollar exit
• 17:00 - 17:30 if you want to be really be more um like conservative and you want to explore let's say you want to have some feelers in the market you would do it at uh 1 by 16 of the account of this one block um now i'm not saying do 20 but but the five percent stop you would get at 31 to 25 you know that's your exit but you can do a lot of trades like that and not your account is still intact until you get some traction in your account
• 17:30 - 18:00 so any questions so far because i'm about to go into spreadsheets and um let me see richard there's some questions there yep there's some there's some good questions the first is from uh jackie how do you scale to 25 when your risk is one and a half percent per trade you scale it in yes i'm actually going to show that in a spreadsheet where that's how i scale it and that is coming up um wait till you wait wait till the spreadsheets show up um that's actually i'm going to show yep
• 18:00 - 18:30 progressive exposure is is going to show up um choppy mark is what position size do you test the market so in the choppy markets i would be testing um between 1 8 of that a block size to 1 16 if i'm getting and i have a full pretty realistic example of my own trades i'm about to show in the spreadsheets um where i'm testing the market with literally with 116 and still
• 18:30 - 19:00 you know um i will show some results on that so hang in there hang tight okay all right so we go to uh paul tudor jones code here my biggest losses always come after i've had a great period and i started to think that i know something we are going to come back to this code when i show the spreadsheets this is so super accurate i'm sure you guys have heard about this goat um he's a genius for this he's a true legend but this is very true to what i'm about to show what
• 19:00 - 19:30 this statement uh i have full examples on this statement okay before i go to especially let me talk about some examples of some charts here where i was doing position sizing because i know people like to see stock charts so let me show you some examples of the trades that i did uh they give you some clues on how i'm managing risk here so i did this uh i've i've traded cliff so many times
• 19:30 - 20:00 this year i've i've lost count i've traded a few times on on june 8th um it was coming down to its 50 day and this was an advanced trade i was looking at how the um reaction was here house the volume was low here and i was able to buy a position right there uh and two was five percent but entry was at the 50-day daily moving average balance with an exit of below the moving average from one to two was my stop uh below the 50.
• 20:00 - 20:30 so it had to move the minute i buy um and if the next day there was heavy volume when it didn't move i would have been out of it that's what that was my game plan because i'm keeping my losses really tight on this trade and this trade on intraday uh literally two days later um went to 21 80 and i actually sold it near the internet now yeah the rules of ibd says you can hold it but i don't do that anymore if
• 20:30 - 21:00 i'm having a gain i'm keeping those gains especially in the market where a lot of things are reversing uh i don't know what the bar the next day is going to be but if i have a 20 in two days i'm taking that as a win and you can see this was a this is actually a cheat area mark style of trading vcp style of trading uh because volume was low you could actually just buy it on the intraday uh even the move up prior to it because my average gain for this year is
• 21:00 - 21:30 between seven to ten percent so it's within it's past that range i'm going to my goal now is to uh to preserve the capital and preserve the gains look at the next string okay so this is coinbase um i didn't do coinbase well this year on this trades but i did got i did get this trade um um this is more like a play on bitcoin i was an ultra aggressive start with exact three percent stop breakup was right
• 21:30 - 22:00 around this pivot area at 2 30 52 and it got filled by the time i was putting the order in at a market order it got filled it got it had a bad feel which is good because there was a lot of volume coming in and i got it at 2 30 2 30. the volume was just just i could see the the spreads were widening the volume is coming in really fast um okay all right so now this draw this trade was sold the next day i didn't care if it goes up
• 22:00 - 22:30 because it's it's in within my range of um seven to ten percent of my average gains for this year because knowing your batting average is critical if you don't know your batting average it's it's your numbers are going to be all over the map okay um is it a question here did i buy clef using resting limit order um
• 22:30 - 23:00 i actually did a um i had a limit order placed in uh stop limit order placed in because i was with my time horizon i'm not looking at the screen all the day but i did have a limit order placed in okay so let's go to this this trade um this is a very interesting trade um hznp on 15th of april the breakout
• 23:00 - 23:30 area was around 94. um and i had a full 3 stop uh plan so if it didn't work i would be out what happened is this is the market nature it goes up breaks out you're buying it and then end of the day it comes down it actually just closed right below the 94 area so this is what i didn't like and i was like very iffy about this i was like already i'm already iffy now um because i had a feeling the next
• 23:30 - 24:00 day something's going to happen and exactly the next day gaps down and closes up really quick this was done in i would say the first 10 minutes of the day came down and went back up um and i was like all right it's closing strong super fast shakeout and i kept that trade because it was uh it was between 9 30 to 10 a.m i was able to keep that trade now what happened the following day it turned and i was like it's within my uh range of losses average losses are about
• 24:00 - 24:30 three percent so it's at negative 2.97 i was out this is how i was managing risk because it can go up and it does go up because it it actually does um where was it yeah it does go up but it didn't matter to me because i i was out but in fact eventually this stock did form a very good vcp pattern afterwards and it took off so
• 24:30 - 25:00 sometimes stocks do recover and repair um so it doesn't mean it's off your watch list um because it because a few months later the stock recovered and repaired and let me go all right is that okay um okay let's talk about rich any more questions there i'm not able to see yeah we've got some questions coming in so first of all um
• 25:00 - 25:30 did you buy a clf using a resting limit order on the 50 day did you already answer that one yeah yeah i answered that yeah okay let's see um one problem i frequently have is you buy a breakout and then the stock reverses causing you to get shaken out using your stop loss and then it recovers in the next hour it goes up um how do you handle this type of occurrence so so it depends now if i have profit in the account
• 25:30 - 26:00 i have cushion i would sell half sometimes i still have to trade um and then give it few more minutes to see how it moves if it's around my three percent uh range for me that's that's what i do um now if i sell half and it's just hanging in there um i'll give it a little bit room uh i'll still put in a stop loss order i always have that in because i just can't look at the screen and if it takes off then i just keep that stock um order right there where stop loss is and then see what it does
• 26:00 - 26:30 now if it doesn't really move on q the best thing is to just unlock profits or take the loss and move on um you know um reversals is the name of the game right now everything is just either it's reversal or it breaks out and then reverses you're having from both sides right now it's a very choppy market um and trade small um that way you can control um you know reverses don't happen it doesn't it's like a debt by
• 26:30 - 27:00 1000 knives if you don't manage a risk right now um and i'll come back to that i'll show you some spreadsheet examples on how that is about to happen exactly how the reversals are causing shakeouts um but i'm going to show you this one more trade i think richard you were talking about this upwork i think if i remember recall correctly on your twitter feed yeah i think so it had a pretty nasty reversal but then yeah looks like it found support right at the 50.
• 27:00 - 27:30 yeah so after support now this is a type of trade where i would consider this if you're trading uh when the pattern's all choppy so when a choppy pattern happens um there there will be shakeouts um and it's really not a smooth breakthrough 50 but let's say you traded this now this is going into earnings this is 10 days going into earnings but if you get this bounce i didn't trade this but i was watching this it was on my screen it does move up 22 days going straight into earnings usually if you have a
• 27:30 - 28:00 trade like that going into earnings but the pattern is choppy your probability drops as you get closer to earnings because because why was the pattern choppy you know um so either you can decide to sell half of it because if you have 22 profit going into earnings either you ride it all the way in or reduce the trade uh lock some profit um looking at my experience now i lock the profit now um because what happens is one this was a very um
• 28:00 - 28:30 choppy move because this whole pattern is choppy here but let's say you have this now based on your position size and your average gains if you have 22 percent you should definitely be locking it in i know o'neill says if things go if the pattern is right and it gaps up 20 you hold it for eight weeks that's when everything is good you know proper in the market proper patterns are there you can go that approach uh but i'm more now more swing trader more short-term trader um but that depends on the market i haven't
• 28:30 - 29:00 really seen a proper smooth move um for the past few months so if you have a small gain take the risk if you don't have this profit this trade should not be done going into earnings should not be taken um because this is what happens it has a huge gap down but if you bought it at the 50-day uh and with the gap down your 22 percent would actually come out pretty much uh you would be down pretty much your performance in your account will be pretty much flat on the trade maybe like
• 29:00 - 29:30 uh you'll be a few dollars or right on that breakeven point of your gains um either you sell it but if you sold half of it you would still be in the end left with 10 profit going and joining so this is how you manage some of these speculative trades because this was a speculative absolutely uh spec trade to me um i know it's got the numbers look it's got 200 but now just watch this straight if it forms another base on this side recovers you know that's when you trade because it had what 200
• 29:30 - 30:00 um on the eps so that's that's pretty good but that means i just need the stock to give me another base that's how i would trade some of these stocks and on managing risk but now let's go to the spreadsheet okay so i have a few examples here this is the bulk of this presentation is this spreadsheet uh all right so based on the book on the mark's book he has an example of a
• 30:00 - 30:30 batting average of 50. let's say your batting average is 50 um and your position size you're doing the 25 block trades now desired your desired goal is 100 return on a 10k account but your average gains for the year or 10 average losses is 5 so in this example this is theoretical example i'm going to get to the realistic examples as we move closer one second okay now in this case there's one gain one loss one gain one
• 30:30 - 31:00 loss you know i know this is not realistic but i'm showing the example it takes about exactly it takes 160 trades you know you can buy something today and sell something tomorrow uh or you buy you know 160 trades uh to make 100 return and this is using the same equation in mark's book now i've done 233 trades as of right now um and that's that's not day trading at all like i think i've done few day trades those are
• 31:00 - 31:30 just exits uh if i buy something today i would be selling it tomorrow that's would be how i did some of my trades of that much but now let's get more realistic okay now this is um on this um spreadsheet i'm showing an example if your losses are less than five percent
• 31:30 - 32:00 and your your desire average gain on trades is ten percent your desired return is hundred percent but your position size is still twenty five percent so from you to achieve the hundred percent goal it will take 114 trades because your losses are smaller but your gains are still bigger so it's almost three to one on this so you're making um yeah it's a three to one odds from three to nine but it's it's it's almost three to one odds here this is also not as you know no one's ever doing back to back like that
• 32:00 - 32:30 now we're now now there's i've added some realism into the spreadsheet as a trader would let's say your batting average is 45 and your position size is 25 desired return is 100 average gain is 10 average loss is 3 now this is what i'm showing right now is very accurate to what i've been doing uh because my batting average is around 45 mark is actually i think he's at like 50 or 47
• 32:30 - 33:00 uh 49 i'm i forgot exactly but he's pretty good um let's see if you're doing 25 block trades um of you know and right off the bat like your first trade second trade third trade fourth straight in a row you're having losses now this is obviously able to zoom in um sorry would you able to zoom in a little bit on people are saying it's a little bit hard to see okay is that better yeah i think that's that's much better
• 33:00 - 33:30 okay let me do this okay so i want you guys to imagine um so on this one i'm using 25 blocks per trade but this actually on four trades right off the hot i'm already down 300 so that's more than the uh 2.5 risk gain now what happens is on your fourth trade but your fifth trade for example it worked i had a 10 gain and it starts to recover the
• 33:30 - 34:00 account now then you have string of losses um of all you know i'm selling the trades at three percent right off the bat but my position size is 2500. so in this case it will take if i you know losses losses loss so you can see the account recovers back to flat break even um then i have some gains again this is also not as realistic because i don't show position scales uh how i scale into position on this spreadsheet it's because i'm keeping the size same at all
• 34:00 - 34:30 times but i showed the example here but i had losses on on the get go on this approach we have uh one two three four five six seven eight nine six seven losses in a row and then we had some gains one two three four five six seven eight nine like about ten games in a row now then some losses um and this is averaged in um i break it down like this it takes about 140 trades
• 34:30 - 35:00 on you know 139 140 141 trades to make 100 this is having 25 number of losing trades 77 number of winning trades 63 because this is with my batting average any question so far because now i'm about to show the realistic spreadsheets okay okay all right
• 35:00 - 35:30 i'm going to zoom in on this okay richard can you see this now yep okay all right so now i have the next three spreadsheets are very realistic on when it comes to trading and i'm using position size and scaling and descaling a trade um so let's say you're starting tomorrow clean slate uh with ten thousand dollars in a trading account margin account and i'm not touching margin we're just using the margin
• 35:30 - 36:00 account to go in and out the next day so you don't hit those weird sec rules um but starting off your account instead of going 2 500 you take half of that that will be 1250 is your position size on your first trade right off the bat there's a two percent loss it counts down then you do a second trade same thing you have losses it goes down same thing on the third trade loss comes down but remember the size
• 36:00 - 36:30 i'm maintaining that size here and then the four trade is even smaller because i have three losses in a row at three percent now because i need to manage my losses so on fourth trade it's still a loss and but at this point the account is the risk of the account is down to total account risk is 1.31 so 131 dollars approximately so something's really wrong off the start but markets you know giving opportunities and choppy period this is very realistic it happened to me
• 36:30 - 37:00 this year i had losses in a row and my size was getting smaller so the fifth trade is still a small account but i got a 10 gain right off the hop and just take the profit and move on like literally now on the second uh six trade what i did was i took the average of what the one two five zero and the slowest amount is 625 took the average in between amount and slightly pushing the throttle and see what happens and i got another good
• 37:00 - 37:30 trade so literally the account took six straights to recover like you know so you went down and you recovered but you're managing rest the entire time um okay um then then i increase the size on trade number seven to ten percent and this one and the account is higher now at uh ten point uh ten thousand hundred fifty dollars profit
• 37:30 - 38:00 now going on that approach i fully bump up my position to 25 on this one trade and immediately follows with the loss at uh three percent loss and the account is still back now i'm still profitable but i recovered my account manage risk i did another trade at 2500 position size and it's down uh three percent i'm down to break even right now following trade now i've reduced because i broke even so far increase should be
• 38:00 - 38:30 less i trade small loss another loss and these are all losses or three percent in this example but i'm descaling my position sizes on the trade i'm back again i'm down to uh nine eight six eight which is about one point three percent right right there following trade i come back at profit so now i've recovered i came back went back so this is what the entire market this year has been it's been like this you have to manage your risk so
• 38:30 - 39:00 i do scale down when losses are coming just scale down scale down skill down any questions so far i'm not seeing any any just yet okay all right so i'm still trading small but i'm getting some gains now i got 10 here at 600 positions i know it's like you know what is it uh how many how much time how many tesla shares is that one
• 39:00 - 39:30 share or two shares something like that at that time maybe not even one you can't even buy that now it's 700 something but regardless what it is it's a percentage of counts you have another uh 10 here now i'm slowly increasing my size to full throttle to 2500 now i'm really pushing it i'm human i'm seeing gains coming in i'm really gonna hit like 50 right now i'm going there i'm hitting the throttle again another and then i'm really going like really large on my wrist but the problem is i'm
• 39:30 - 40:00 that paul tudor jones what i said was sometimes you think you know what you're doing that's great but i'm hitting the throttle at full blast at full position size and probably using margin at this point uh 10k each on two positions of 10k each and i'm getting full throttle and i'm you know not recommending this to everyone because i'm breaking some of my own rules i'm showing that in the spreadsheet um so you know and then right there the biggest losses usually happen when you're at the biggest um and
• 40:00 - 40:30 um and then you have a i literally have a um three percent loss using a large size and look but the account is already up 38 yeah i was being aggressive because i had some gains coming in um then immediately after losers i'm still like you know a little beating up i'm still aggressive but i'm slightly less i'm fighting with myself but the account is still 45 i have a gain but then followed by large losses
• 40:30 - 41:00 but still three percent but the position size is out of range um and see made a mistake i need to get the hell out i need to follow my rules my ego is fighting with me you know so i have all these notes down what i'm doing wrong then i immediately scale down scale down i'm still losing still losing and i'm reducing the account and then you can see the string of losses just keep on coming full blast now can you how many how many of us have faced a situation like this i know i
• 41:00 - 41:30 have um and i'm sure i'm no i'm not the only one this is string of trait number 25 246 what is that almost 20 trades in a row but my account is still up 40 because i'm i'm scaling in now i'm showing in the failure as a you know sometimes we all make mistakes we get greedy i'm showing that in there and i'm also showing how immediately you rectify the situation and and and protect your gains
• 41:30 - 42:00 so let's say if you have four open trades even if you have four open trades uh you can do four trades in a row i can have four of these trades and i'm still losing and go think from that mindset you can have four trades um but i'm just cutting my losses at each time okay keep uh to keep your losses small at two percent three percent from real do you just set up stops at those percentages or do you always place them i always place i always know where i'm buying and
• 42:00 - 42:30 i always know where that two percent three percent stop is uh when i enter the trade my stops are also entered at the same time i know exactly all my trades have an exit plan how far between typical trades um so and for the most part of this year um my average uh trade holding time has been two days and average all trade holding time for losses has been two days my goal actually is keep the gains a little bit longer and the losses down to one day if possible
• 42:30 - 43:00 um that's how this choppy period i've been trading like that usually last year i was able to keep the gains for much longer time horizon uh because market was moving in much uh orderly fashion so in this example i'm going back and forth i have um so you can see all the string of losses and look at the size this is key i'm reducing my size and keeping the size smallest as minimum to get some traction until i get see i feel good here and it
• 43:00 - 43:30 comes down again go up down down down go back up come down but the size is still small because i'm not getting any traction um and then once i do get some traction i slowly raise the throttle and keep the size now on the average now let's say this is a swing market has entered but at least up to this point my account is almost at 50 profit and it's only been uh 52 trades don't look at these other trades so so this on this approach it would take about 100 trades to make 100 return
• 43:30 - 44:00 in this example i actually went to 160 trades that's 137 return but it's how you descale and scale on that that's that's the magic even a small account can make a difference uh now i'm gonna go even more realistic okay there's more data on this spreadsheet let me zoom in there's a lot of stuff here richard are you enjoying this bob richard yeah this is really cool
• 44:00 - 44:30 okay so this spreadsheet is now superbly accurate to my trades um i've actually put in some of my real trade numbers on some of these trades and what happened on the gains on the losses side i've actually baked in on this on the next two spreadsheets so let's say um on the first trade i'm already trading small i have a loss loss loss i'm be skilled and this is also
• 44:30 - 45:00 a loss of three percent accounts down just like in the previous example i'm down on this trade but on this rate i have 10 percent gain blocking profits slowly going up uh increased size i wrote some just took the average number i took six trades to break even then i move up to 2500 and so remember each of these could be one trade uh you can have four trades at once i could be buying and it could be all be losers and i'm exiting them on the spot and then
• 45:00 - 45:30 going into the next trades um now i bumped up to 2 500 loss loss immediately descaling down loss loss loss back to where i was at risk of 1.31 now there's a trader my account size is 625 is on this position but i got i get a 62.5 percent gain on this small trade it does happen now and then on this example it was my novac trade uh i actually had
• 45:30 - 46:00 a small position but i had a huge gain account recovered a few years ago i actually did trade tilray for the entire 1000 percent return but the position size was literally 116 of the account there was a shakeout i sold almost everything but that one tiny position literally made the entire account size and made it into like 200 percent return so and it was a this is when i was managing uh family accounts um so small position can give you these gains you
• 46:00 - 46:30 just you know you're trading on the setups so even if my account is small but in one shot i recovered the account in one shot repair this has happened to me many times but it's managing your risk reward relationship um that's the what i'm trying to show here uh see people may laugh at a 625 position but you won't be laughing at once your account is recovered so now let's move forward um can i jump in with a question real quick yep sure hey i haven't because i know
• 46:30 - 47:00 you're kind of going with the ten thousand dollar example the question i had uh i chatted him previously was um how do you account for the again you start off with a small account but like you know again you know as we're working and we're getting paychecks and all that we're putting money away each month so like each month like you know you start off maybe with like you know five or ten thousand but you know you're putting 100 or 200 or 500 a month in is do you kind of how do you kind of work that in to bump up your your training
• 47:00 - 47:30 okay in this example i'm not putting anything in okay absolutely nothing in that's something i learned from mark once your money's in you have to entire entire this year i've not put anything in what i started off with is what i'm trading off with the same thing happened at the last year at the competition i wish i couldn't add anything it would mess up the numbers so i was completely trading off you know i have my i told my family don't add anything in this account it's gonna mess up my performance uh so yeah no i'm not adding anything in right now that's the example
• 47:30 - 48:00 i'm showing you're not adding anything here and you're keeping your risk reward relationship and be scaling and and and increasing the throttle when the things are going well that's a small account can make a difference uh and let's let's see now what happens let's see what happens now uh the account is back to recovered here at this point but my throttle is now slowly going up and then you have uh i've gone really quick uh
• 48:00 - 48:30 really big on this trade um and actually right um um you know got a 20 gain on one trade like the cliff trade uh now you have another trade uh of this is also see the highlighted uh things which are highlighted are bigger gains than uh than the average or ten percent gains so keep that in mind in the present in the slides i have it marked up here so average gain is 10 so everything is calculated on 10 anything bigger is outlined here this would be 20 gain this would be 30 so
• 48:30 - 49:00 what happens is sometimes i do you do as a trader get into the trading in the zone mode you're getting hits after hits um and that does happen i'm hitting the throttle really aggressively right now and then right there the first sign comes biggest loss three percent now i'm not saying you all should do this but i'm giving you as as a trader sometimes i also get like carried away because i'm really like aggressive i'm getting my trades all right um and and i got like uh this year i got like
• 49:00 - 49:30 um planeteer no wax i had a few trades in back to back but then i also had a big string of losers in a row um then all of a sudden on this trade it's a 10 loss i'm actually showing this because this is a 10 loss you know you have a gap down on a trade in a large position now but i have a 61 profit i have to prevent i don't want to round trip my gains um so now immediately scale down
• 49:30 - 50:00 uh and i'm still being sloppy because i'm keeping the size at 25 percent and i'm and and i get hit um and then another trade i get hit as a human like i'm like okay things are really not working so now i really descale because after getting beaten up here a bit now look at that i have full string of losers all the way here and this is the time when the mark is really choppy and i'm doing some feeler trades now when this happens you should like start researching spend more time on
• 50:00 - 50:30 researching stocks read books meditate gain your mental capital because because you're having string of hits i can have four trades in a loser next week another losers next week another losers but the entire time i'm fighting and preserving my capital so my account is up 56 now it would have been better if i didn't make some of these sloppy mistakes so i would have been close to 60 but the goal is i'm preserving the capital um so this is where scenario is completely
• 50:30 - 51:00 fallen off the bandwagon then it slowly starts to recover and starts to increase and it counts back to like 60 percent and then i just didn't do all because it's it's i'm just rinsing repeating what i did and then in a nutshell this would take about 100 trades to get 100 uh return and if you go uh would be at like 152 i mean this is what how mark is doing he's managing his risk that's why he's up 232
• 51:00 - 51:30 on a million dollar account uh his d skills upscales um you know um but he's managing his risk reward ratio at the entire time um any questions what is trading in the zone mode uh that's something that i made up because i love that book about mark douglas running the zone there is a mode like sometimes i do get in that uh burst of trades i'm getting trade after trade uh i'm in a hot streak it's like you're getting aces on your you're playing let's say you're playing poker you're
• 51:30 - 52:00 getting all the best hands uh i'm aggressively flipping the coin at that time that's a short burst but but my size is going up really aggressively and then it does drop now last year was there we had those moments we had you know when um zoom was moving we had zoom we had uh microsoft was moving in the same time adobe was moving in the same you could have traced like that and if you have position size management you could have four of those type of trades in a row like right now let's say you had four of the steel stocks moving you would be in the zone on those i didn't get them this
• 52:00 - 52:30 time so i'm not in the zone at that time for those trades um there's another one another good one do you adjust position size based on other factors like the quality of the setup and market conditions or is it purely based on whether you're on a winning or losing streak um it depends uh the this is the art answer um i could trade off the patterns and if i'm losing i would be scaling down i
• 52:30 - 53:00 could i could actually turn off the spreadsheet now at this stage i can go either or um but if you're starting off i would um i would look at the patterns first obviously um because if you're buying a wrong straight it's not going to work it's it's a bad trade to begin with uh you know uh i hope that answers but i do in my spreadsheets all my my spreadsheet is is part of my trading now um you know mark has been telling me that for years and finally happened the
• 53:00 - 53:30 spreadsheet has made it into my trading um but the pivot points have to be accurate um that's spot on um based on based on like three or four years of data i kind of know my numbers on my batting average so now what i'm doing with my with the spreadsheet on keeping all my track on my trades is i'm trying to keep my losses even tighter because if it's not working it's not working yeah there's more trade more trades do happen um but that's the environment you're in
• 53:30 - 54:00 once it trades the environment's more smoother you'll have better uh longer longer term trades on the gains and it's it's and you know if you're coming off right off a bear market i'll i will be very uh i will keep the trades for a longer time period uh okay so um in this example um i do show the losses a little bit larger and then reducing size it's the same as the previous uh
• 54:00 - 54:30 spreadsheet i just now just cut and pasted though i didn't rinse and repeat but uh up to this point is all what i was putting in the data and there's a lot of real data percentage points are all baked in here so on this type it took about 100 trades to make 100 so and that's very realistically reasonable because you could be at 160 trades and about 60 trades later you know it's 150 percent return now i'm gonna go to another spreadsheet
• 54:30 - 55:00 on this example i really reduce the loss to 2.8 percent but the average gain is at seven percent so same thing i have the same gains the same exceptional trades uh which had those big moves but in this example all the gains are at normal gains or at seven percent but all the losses are less than three percent to a negative two point eight percent so by doing this and everything else is the same on this example it takes about
• 55:00 - 55:30 um 140 trades because obviously your losses are smaller but your gains are slightly smaller it takes the more time to to reach hundred percent but you could do it this way too but everything else over here is exactly the same i am scaling down when i'm wrong keeping the law the trades are really um the goal is to manage the size and your your exits are so lower half the sheet is it's just this is from the original slide it's
• 55:30 - 56:00 like one gain one loss one gain one loss so in this one is seven percent gain seven percent loss uh because i'm not putting all my trade data but up to this point it's there up to fifty percent on 52 trades it's it's very it's spot on accurate to what i was doing and i just repeat this you know repeat the entire spreadsheet if i'm losing scaling down cleaning scaling up um and that alone is small account can go and then you once your account's at 20 you repeat that again you you know
• 56:00 - 56:30 you keep repeating it faster you can repeat um so is there a number of losses in a row before you descale um so in this example i had uh losses from trade 29 to trade 46 all in a row and yeah minimum uh i'm actually i have to trade let's say if my counts are 10k i do need to place a trade so it would be position size would be locked at 625 but my uh but look how small the losses are in relationship to what the account
• 56:30 - 57:00 is um to the 2500 is the full block uh 25 percent of the account so at minimum i wouldn't be i would not be able to take below 625. that's a hard it's pointless after that so how many positions do i open per week so usually um let's say if i'm buying today on friday i had four positions i sold two uh today so maximum four uh i don't do well when i go past four like
• 57:00 - 57:30 performance-wise i could uh depending on what because my time horizons i can't i'm not even though i'm a full-time trader but i can't see the market all tired i'm running a medical practice at the same time so my morning time is 9 30 to 10 and then i do get a little bit of time from 3 30 to 4 to look at the markets and in between i have alerts coming in i can't see the screen but i can't look at the screen like all the time so um um so i'm my time horizon is a little tight uh but but i everything is planned um i
• 57:30 - 58:00 don't randomly buy things um if it's not moving i sell out um because if you don't you'll have a trade like upstart which failed you know or earnings gap down so i have to watch out for those [Music] when you adjust your standard position size up after your account going up by x or or are you locked for one year can you explain that question richard i don't understand that
• 58:00 - 58:30 uh let's see and and if you could just retype that um so i think if you if you make 50 of your money um do you would you rescale up your your initial position size so position sizes are um so in this example gold was 100 now 100 is reached um
• 58:30 - 59:00 i can decide if i want to play with the gains then the position size can be 25 percent off the size now that's a that depends on the market and this example for for explain for keeping everyone simple my goal was to show how to get 200 once you pass that yeah i i i do that i do that but i didn't but if you're starting off once you do guys at least attain the triple digits by keeping it uh simple
• 59:00 - 59:30 and then then practice you know um you would reset the account at like let's say the accounts at twenty thousand obviously my four trades would be at five thousand dollars each um so yeah it's but but it's all percentage uh size is no bearing um size plays a role psychologically once you everyone's different on this one uh i know one of my friends if i tell him a size that i can handle he won't be able to handle it um so that's that's that those are issues for
• 59:30 - 60:00 as you move up you'll pick up on those issues but but if you keep your rules the same it's still percentages how many simultaneous trades you manage to handle uh four uh i would i could buy four at once if they're all moving um but i do one at a time order a breakout on my watch list and bob had a question about um how much time before earnings you would still be willing to buy a position so if a stock has earnings in five days would you
• 60:00 - 60:30 still try a setup uh if the stock pattern is there and if it's working if i'm in profit but i need to be at 10 profit uh before going into earnings if i do not get a 10 profit i would sell out but you would still try the setup just you might sell yeah yeah i will try the setup but i won't do a date for earnings i'm not i'm not playing earnings uh that's a 5050 probability game at that point but i would trade the setup absolutely uh like that upst example i showed that was a perfect example i have you you
• 60:30 - 61:00 could trade that on technical level only uh and capture 22 gain or even 10 gain and then you know once you have some profit options open up you can either reduce a trade and see what it does in earnings or you go through earnings with a full profit because i need that cushion in that position going into earnings um if i um there was a trade i was trading last week was going into earnings but i had like two percent profit i'm like i'm out there's no point there's no point in playing this move um
• 61:00 - 61:30 so can you show an example how you set up a three percent stop sure um let me pull up the slides again okay okay this is for example her on horizon therapeutics uh the breakout was at round 94 on the chart and my uh stop was actually um you know three percent below the breakout in this case it was actually the low of
• 61:30 - 62:00 the previous day of the breakout so that's where the my exact it was exactly two percent uh 2.10 um and that's where my stop was it was even tighter uh because once it gapped up i was using the days low i even raised the stop up now but this is the original stop so on the next day it does gap down but in a few minutes it did recover so i give the you know at 9 30 it opens up like 10 minutes uh let it see and it did recover so i held it but
• 62:00 - 62:30 usually if it doesn't recover i will probably sell it in this case it did close up really fast so i held on to it um and there many times i would reduce half the trade and see how it would move forward but the stops do go and i do manage risk really tight uh my stops are hit um so and then the following day it just didn't work so i was out this is a real that's why i put this example in there um how i was playing this trade
• 62:30 - 63:00 um on this trade um my stop was on the previous days low this is a low cheat area this is a very advanced trade mark was talking about it i was looking at this um so my stop was really tight i think it was about like maybe two percent max um so and and this is a trade i couldn't even use uh uh the margin requirements so high so i can only do very like limited size uh i wasn't going margin in this trade at all
• 63:00 - 63:30 just following position sizes um okay does your uh okay a few questions does your position management rules change it's an ipo nope uh it does not change if it's an ipo in fact ipo i'm even more uh risk-averse because um the shakeouts volatility all that stuff happens um okay but i i mean i keep the i play the
• 63:30 - 64:00 setups um i'm in the case of the question half of the position was stopped and the second half reached the goal how did you count them two trades or a single one um i would just you know take the profit and count as a one full trade um i wouldn't count as a single uh two trades i would just the same entity you know playing that move uh when i scale up positions for twenty five 10 000 your stop loss is still the same percent no when i'm doing 10 000 i
• 64:00 - 64:30 don't recommend anyone doing that um in fact at that time my stop probably is one percent um if i'm going that aggressive and that's something mark is mark has a hard line he won't he won't he won't do that because if he's once you have size i would never recommend anyone do that because you can't get out then um but if you are playing it it would be less than one percent um so technically your absolute loss dollars on the highest position size is
• 64:30 - 65:00 much more than standard loss dollars but the point is when things are working you go aggressive profit makes significant and even when you take a large loss it's only on one trade yes when there is a large loss it usually is it ends up being on one trade um and i when in doubt i sell everything because um either i'm going too aggressive uh i'm not seeing things clearly um or i could be i could be dangerous to what i'm doing um especially when i was managing family
• 65:00 - 65:30 money on my journey to become a hedge fund manager uh dealing with family money they can't handle on i'll give you a perfect example um family cannot handle they'll they they say you know like if you're it's your client right they'll say oh we can handle ten percent lost on that position they can't they can't even handle five percent loss uh human psychology they're like oh my god this big number but in the big scheme of things there's a position but it's psychologically you know so uh when you're dealing with clients that's how it is um
• 65:30 - 66:00 so um my stops are always tight they're always placed in when i'm aggressive i'm keeping a very tight leech on rare occasions i've sold after market hood is a perfect example i had a 50 return on hood and i was like this is too fast it's very spec trade i sold it after market i didn't care what the next day went up even higher it's just i was in a situation either sell half or take the 50 profit i took the 50 profit
• 66:00 - 66:30 um any tips on growth position traders initial in your system so could you explain that question and more i could are you talking about how you start off when you're starting off you have position size should be on from day one in fact uh if you're starting fresh tomorrow have a small position don't do full 25 position until you have some traction because if you don't have traction in your account it's your money you're going to take a loss on the on the fly um why why have why you know why take
• 66:30 - 67:00 that abuse um so do a small trade get some traction know where the buy points are where the exits are um you could do a five percent exit you know you know three percent is you know it's very aggressive um mark mark is at five percent mark is at five percent because he's looking at the screen all day uh i i'm driving at from 10 o'clock i'm in the road so i have to keep my um there's no way i can see uh what's going on on the phone uh
• 67:00 - 67:30 i'm stuck in lots of traffic when i drive so there's no way i can look at screen um so um three percent is my personal goal uh but five is you'll be fine with five uh five or six you know just but your buy has to be correct uh any more questions richard do you see anything else not at the moment i don't think now did the spreadsheet help because this is a very complex material and it sounds very simple but but this is all
• 67:30 - 68:00 discipline based trading um because you have to manage risk especially when your size comes up and you're trading with size uh it's more than important because then execution is an issue but as i said a small account can become big um you know um what liquidity you aim in your buys i usually like stock with like 200 000 shares average trading volume um i know i've seen some trades that even
• 68:00 - 68:30 mark has done which are very slightly less liquid but if your account is small it shouldn't be an issue it's just i just concerned about the exits uh you know if you're if even if a share is trading i don't do anything below like seven dollars a share uh i don't like low quality stocks i know they tend to move sometimes but i don't touch them um i have um you know i like ten dollars and above minimum uh i do great when it's fifty dollars and above per share that's actually my
• 68:30 - 69:00 sweet spot zone higher the better uh what kind of broker orders you place i either do market orders or stop limit orders if i'm not able to see the screen and i do like it if my stop is ripped out and i didn't get the entire position those are really good trades that means um i didn't get i got a bad fill but that usually means i'm that trade is profitable um so market or stop limit orders uh or limit ours it depends but it's usually
• 69:00 - 69:30 stops doctors into market um um did you adjust your size for the quality of the stock um i adjust the size based on my performance so if i start and where my stops are uh so let's say a stock is is well and my stop exit like where i need to be out is at four percent i would be now my average is three percent i don't want to mess those numbers up so my trade on that trade if i'm giving it four percent room it would be smaller
• 69:30 - 70:00 than the required position sizes uh that i was talking about just because i'm giving it five percent room four percent room on the downside my size is going to be smaller so in the in in the end it doesn't mess up my numbers it doesn't it comes in a wash so it would be even smaller position size than what i was showing in order to keep my risk around three percent are you taking trays that have a pivot or technical stop less than two percent deep uh
• 70:00 - 70:30 i do trade on pivots um and and yeah if they're less than three percent deep uh let's say my exit is less than three percent i can go a little bit large on those trades uh but but then they're they have to move on on on like the next day or that day the minute i buy um what percentage of trades are held for more than 10 gain now for for this market i've been uh locking in those profits now last year i let them go until the stock chart you know or the
• 70:30 - 71:00 pattern changed its character i would let them ride in the past i would let the trade ride like but this year since the market market's really choppy i'm just i'm taking in the points how fast did you increase your precision size did you increase the percent after one or two wins um it's it's yeah um like on the spreadsheet um let me go take an example there this is the most realistic one okay
• 71:00 - 71:30 so on this spreadsheet um like you see like all of a sudden i was down i recovered i slowly go up yeah i'm increasing if i'm getting successive wins so let's say in this case was really small and i go up um because this can go down too like in this case it went up and came down um so it goes up then i am increasing its size and if the stocks are moving the markets move you know like the sector's moving i would be increasing
• 71:30 - 72:00 size based on that do your perm do you permit in the way up or do you buy the whole position at once um i used to permit on the way up uh let's say if i'm doing 25 percent buys um like 25 for that one trade let's just apple i'm buying 25 of apple in that trade um in the past i have done the first breakout will be 50 of that um and i absolutely if it goes up it would be another two percent i would add the 30 trade and and it goes up to 5
• 72:00 - 72:30 i would go up full position you know 25 but then it will be you know covered i've done that um last year i did that all throughout the year uh this year no um this year and i didn't do it um but last year i've done it so the same willimonio style of permitting mail but if there's a limit where i draw the limit um so in this review i'm closing trade attempt yes i am closing 10 gain based on my trading batting average for the year so i have all my data so there are
• 72:30 - 73:00 trades that i have done uh 60 return 50 return 20 return uh but on the average when i do all the batting averages and the numbers it's coming out optimal numbers coming from 10 and that's in mark's book actually because i am doing high lots of trades um so i it's like i'm moving merchandise i need to you know um last year i kept last year my every game was a little bit higher than this year uh just this stock
• 73:00 - 73:30 setups or uh we're going for longer moves do you buy intraday at the pivot point no matter what um volume sometimes doesn't show up i'm buying on the breakout uh while i would like to see it as if the day progresses um especially near the end of the day i want to see the volume but i do buy on the price breakout and provided the price holds um i've got answers
• 73:30 - 74:00 richard let me know if i'm missing some question sure uh i see a lot of breakouts voicing the same days yeah a lot of breakouts happening and reversing it's just it's it's this has been a short-term market there's a lot of selling and rotation happening at the same time uh related to volume confirmation does anyone know if a broker that can put a limit on market order conditionally yeah you can do some conditional orders i don't know what volume um i've done i
• 74:00 - 74:30 i've used to do conditional orders but i stopped it just it just gets too messy for me um the paper price and stock is trading i entered it 20 i don't know how to handle that you may have to look at interactive brokers for that type of trade um i know fidelity can do so much on their active trader pro tradestation can do but i don't really use tradestation as a broker that's weird things going on every time the margin accounts i don't like it um
• 74:30 - 75:00 you tightened your stop loss as you pushed your position yes my stops are extremely tight if i'm very very aggressive um i mean at that point when i'm at the most when i'm most aggressive my stop is absolutely um super tight um given the huge number of trades where do you fish for stocks yeah so i do look at market 250 straight off the bat uh then i go to mark's lists uh there's private
• 75:00 - 75:30 templates app full of market spent right now all right this is where i look at stocks okay so i do go here on go 250. i do check this list um this is uh for years this is all i used this is literally i lived on this list i didn't even i didn't even bother with anything else but they got a lot of new lists now um i do look at the minority trend templates i do
• 75:30 - 76:00 compare these little stocks i've actually started to look at rs blue line dot breakaway gap so did they pull back on these lists and then they have pretty much the newspaper list the i do like the 85 85 index uh ibd50 everybody watches it uh it's okay um 85.85 is pretty good a new america absolutely i do browse that uh you know ipos i do check and then i make you know play with the screeners
• 76:00 - 76:30 um but by default i always come back here to this this is like a habit i go through this list and these lists and i've started adding some of these new lists into the mix um i mean i mean richard you could can you collaborate to market smith i know we got some you got some slide presentations on that too right yeah i use marketsmith as well um i have a little bit of a different process where i like kind of download the data and then do my own kind of um scanning in excel but yeah i know the i mean i mean mike webster is the brain
• 76:30 - 77:00 behind the the marcus smith 250 and all the all these all these things and he's awesome so yeah he made uh i remember when i was beta testing this yeah he was involved in this so there are some things that road50 does but yeah there's there's a lot of things in here one of the good lists in the newspaper is sector leaders list that's actually i wish they would put that in here that's a really really really good list i love sector leaders um that's in the newspaper um now there's a question mark template
• 77:00 - 77:30 added one for month how do you use this one what kind of styles looked at so mark template is probably let's let's look at the stock here like four months template so using four months instead of five months you know it's now on a trade like this you will try to see a you know could this be a pivot right there does it like come down tightens up you know so he's using four months instead of five months on this i'm surprised actually first time seeing that too um i just click on it one month is more aggressive if you go on one month for example this
• 77:30 - 78:00 would be more um see these stocks are already a trend so these are very aggressive plays um if they give a set up like for this this is too low for me i won't even look at that um i think this was somewhere here just took off wait for a pattern to follow i'll go when my my thing is over please just go and how do you know uh mpa compression iv resources uh i don't use leaderboard or swing trader anymore i use it before i
• 78:00 - 78:30 i'm a marcus smith guy so don't really they're they're they have their pros accounts richard can you talk more about leaderboard or swing trader i have i haven't used those products um but if you don't have market smith and are looking for something similar just if you have the ibd digital subscription they've got their ibd stock screener which i think is like severely underused i don't i don't see anybody talking about it but it can do a lot of the screening capabilities that market smith can and and it's just completely
• 78:30 - 79:00 included with the ibd digital so definitely check that out if you don't have market smith hey niche yes um i've actually used leaderboard i've actually used leaderboard and swing trader if i've kind of you know take advantage when they offer it for free i i found swing trader really difficult because it's like essentially when you get an alert from swing trader to but like say buy a stock at a at a
• 79:00 - 79:30 particular price like you kind of have to get in there like right away and buy that stock or else you know like if you like the end of the afternoon or something you know if you yeah if you have worked on a day and you don't you don't have access to making trades um you'll end up missing a lot of trades um leaderboard and kind of there's some things i like on it but i don't think i don't think it's um it's a i don't think it's a necessity it's kind of um
• 79:30 - 80:00 you know a market smith light where they kind of mark up the trades for you the difference between market smith and um leaderboard is that leaderboard you know they mark up their charts like uh individually like so like a person actually marks up that chart that they're buying whereas whereas market smith all of these stuff or computer generator or algorithms um again like richard said um
• 80:00 - 80:30 i think if if yeah because market smith's pretty expensive so like if you're not going to you you know if you're not going to use market smith the stock screen is really excellent it just doesn't have as many of the rankings but it tracks like every stock uh like market smith and uh you know a market smith like you know you you have like 100 and something different items that you could choose from to to scan your stocks whereas a stock screener on on investors website
• 80:30 - 81:00 you may only have like 20 but those 20 are like all like the kent slim club can slim criteria you know the rs rating eps cop ratings and then other other volume and price things um so it's really it's a really good um you know obviously a much cheaper version to use than market smith and i think you you can get as much information out of out of it as as a market smith
• 81:00 - 81:30 okay that's good good to know uh there's a very interesting question by kanish singh here he says he noticed my position size and that's a very good observation i'm going to talk about that right now position size as percentage of total or fixed to starting equity i don't take into account close equity for deciding position size example when i scale back to 10 000 size it's still only about 60 of total equity um so all right so yes that is something i was
• 81:30 - 82:00 going to talk about good observation so in this example what i've been doing and and i purposely kept the trades account small is because let's say we're gonna you know uh get the account to like um 20k now this is where i'm really hitting the throttle um i am pushing um you know on a position here at 10k and using a margin here at 10k i know that's very max but
• 82:00 - 82:30 oh let's say i do one trade at a time close it buy it close it buy it right now i do change now in this case i'm still leaving the profit on uh tap now let's say if i was doing four positions here i am using the profit a little bit on this trade and then this trade because if it's uh you know i am i am pushing the throttle please just go swim swim
• 82:30 - 83:00 i didn't get that rich i think somebody was unmuted but i can't oh okay don't worry about it okay so i do sometimes um i don't want to use a profit um until they count 100 but at times when the when i'm getting a lot of trades i am using the profit but when you use your profit um there is that risk uh you know like in this case it does take a look look it went from 168 um 16 000. so 68
• 83:00 - 83:30 all the way down to 61 so that does happen when you start using your profit now um i do scale and scale back and forth but there is a limit that i do keep um this is only when it's very hot like i'm i'm hitting a winning streak but otherwise i do keep the size in check at all times because now at 20 000 uh i will probably reset myself and then start from different size numbers but it still
• 83:30 - 84:00 would be in percentage-wise would be you know 5000 or less and then we go from those steps uh rinse and repeat because this without discipline you'll be all over the map okay let's see how do you battle against risk-based position sizing could you explain that more uh how do you and how are you determined not to sell all at target goal when you have a big winner when i have a big
• 84:00 - 84:30 winner i can look uh options opened up as a stock trader now let's say for example on this straight out a small position but out of 62 uh like uh had a huge gain not in this game uh where is that on this game this trade now i'm not going to sit there yeah the stock can go 100 in which it did uh but at that point i just don't care i mean it's a huge gain it's it's on on on my spreadsheet that gain is is on the if you do a bell curve example it's
• 84:30 - 85:00 on the deeper end on the game side i'm just gonna take the profit uh because i'm gonna do frequent my my goal is to do to do my batting average to do this as much as i can um and keeping my risk very tight before i used to let trades uh run right um the way i was doing exactly the way willowmania was i would push the trades and let them ride but once i met mark and more of his influence i started to understand how these numbers work um and i could based on my personality i like
• 85:00 - 85:30 to things you know speed i need the speed here you know or i would say i have the need for speed um i don't use average to rate oh average range of a stock is high using relative stop loss and that stops you very quickly it doesn't make sense i don't use atr i haven't figured out how to use atr so i just look at the pivot and where my stop should be i go from there i do not use atr if it doesn't break out if it makes me loss i'm going to be out
• 85:30 - 86:00 richard any questions bob uh let's see there's one about atr if you use that um yeah i don't i don't use atr at all can you explain how you limit your total equity risk with your max average stop um my limit and total equity risk is based
• 86:00 - 86:30 on my uh batting average so um so based on my desired returns this is in mark's book the equations are there so let's say to to make a hundred percent return if your average gain is ten percent your average loss is three percent and your batting average is 45 so this that would mean i have 77 loser trades um and there could be but in reality you could have break even trades or you could have a lose a small trade uh now and a winning trade 63 that is if your sizes are the same in this example
• 86:30 - 87:00 i'm showing in real life example is my size fluctuates um and yet the loser trades are still 77 and winner trades are 63 and i still come out ahead because sometimes a small trade can give you a huge gain or um or you can have consistent of losers but your your size is small so i'm using a position uh size so if i do this example where everything is static it actually take this is the example in the book this is the static example you
• 87:00 - 87:30 know keep the position size there's a chart in the book too size is the same and your gain and your losses are fixed yeah we'll take on it will take 160 trades to reach this goal just on 50 50 probability you win one you lose one but that's not reality this is what reality assuming because i am changing the size of the position if i'm having losers because this is a cycle the psychological portion of the training you know if you have four if you have four trades on
• 87:30 - 88:00 if you go back to the simple one the 50 yeah that one if you have four trades on and your your potential loss is 125 with each trade then aren't you risking more than 2.5 of your portfolio so yeah so in this case let's see no because you have your gain at the same time so so these are you know you have one gain then one loss
• 88:00 - 88:30 now in this that's why i was going in this example i was i was trying to show you have losses in a row um and if if i'm starting off i'm not going to start off with that size that's what i'm i'm if i'm starting off fresh tomorrow i'm not going to go 25 i'm gonna start small till i have some traction in the account um because in this case example it's all set to one win one game one game at the same time now obviously if i have four losers so always it will come down
• 88:30 - 89:00 um but the marx example book actually has something just like this so but that's theoretical um i hope that makes sense i hope i explained it right so in this example um i do show that i start off with the large size i'm already down here so in this case i'm down past that limit because if i don't manage my size i'm down three hundred dollars here so
• 89:00 - 89:30 that's um three perce um you know it's more than one two point two five percent risk of the account um this is not this is this is what i don't want is this is this right here i don't want this i don't want this at all so i want to start small and build my way up i used to do this i used to do this and it doesn't work it never worked out for myself for my own mental state it was it just it was crap
• 89:30 - 90:00 um because i started off losing and then you know it could i could i've had a string of losers in a row and it's just in this example if you're having a lot of losers keeping the size saying it's more fluctu it's psychologically not for me like i need to scale and scale up so in this example it takes uh about 140 trades to break to go 100 but this is what i don't like is this right here
• 90:00 - 90:30 starting off large and losers right there okay when did you decide to exit out of the trade it all depends uh if my losses said i'm out uh if the profit's there then i decide to either sell half or let the trade ride or take the whole trade as a profit if it meets my uh average gain what am i in my you know um on my big
• 90:30 - 91:00 big list of trades my average gain because i have trades which are 25 30 10 but in the average it averages it out um to around 10. so if ryan says it is safe to say before you take the trade you know your size loss and gain you will close the trade yeah yeah i do know my size of the trade what i'm about to place absolutely um everything is planned when i head in before i hit the market order
• 91:00 - 91:30 is there any part of total equity portfolio investing other strategies like no no this is a strictly uh uh trading um account staggered stops i do use um if it's a really hot stock and everything there's momentum built in uh i did that last year with zoom i had a sagger stop uh initial stop was at three percent another stop was at five percent um just because
• 91:30 - 92:00 it was the the leading stock so that's based on situation i will do that but no more than five percent but i will have reduced position at that time if if it's going down mark uses it all the time i rarely go that approach um how would you recommend using margin and knowing when to hit the gas so um using margin um you have to uh i would start using margin
• 92:00 - 92:30 when you have profit baked into your account um not just small profit you've got to have decent profit and things have to be really going because especially in this trophy market start using margin it's going to chop your account up because it's and uh i would never recommend anyone going like full max position i've done it in the past i did it last year because i had to perform at the competition but i'm it's it's a crap shoot because uh one wrong move um the margin is it
• 92:30 - 93:00 uh magnifies your losses it's until you get the hang of it uh on just trading but now have a marching account because you can't if you do a cash account you can't get out the next day uh but you don't have to use margin right now i don't until you get you know until you start playing and understanding how this works um i don't recommend using margin but you got to do this in a margin account so you can get out the next day you know that's just the way or you're stuck with holding a position and your losses are going out of control on a cash account
• 93:00 - 93:30 i always do you start with a small position then yes i always start with a small position then increase my weight up always um i used to go full 25 but then this happens um this would happen and then did not like this because this went beyond my risk level once i understood what risk what i was doing wrong here this is not what i this is this is not what i want ever i
• 93:30 - 94:00 don't want to be in this situation in fact i learned this when i was managing other people's money um not to do this okay when you try to stop as you get aggressive are you shooting for better r r yeah um i'm hoping you know if i can get uh um you know mr reward yeah i can i would like five or three r yeah at the same time i keeping ten percent target let's say one percent loss of ten to one yeah um
• 94:00 - 94:30 i am i am looking at that reward yeah if the stock is blowing fine yeah absolutely do you lower your target that's it two percent stay two one i don't really lower my targets i wanna hit like i wanna i know what my average is so i'm trying to get around that ballpark range and the percentage-wise um but i do you look at r yeah for stock like docs like kind of like scaling for installing what kind of scaling will you have done all right let's look up docs
• 94:30 - 95:00 okay so this was on my watch list i was trying to buy it um actually it was starting by right there it didn't move uh so in this case it would run 65 35 um probably what's the range here you do this really quick let's see i'm pulling up my calculator
• 95:00 - 95:30 what's this 16. okay so on this trade if i was trading it my actual entry was uh on this 62 73 was what i was doing aggressive uh i knew
• 95:30 - 96:00 everybody was looking at this one so i was going at this pivot so on this pivot my entry would have been at 62 and the stop would have been at the days low at 58.93 that's how aggressive i would be playing this um yeah it worked but um the next day it turned so i was actually out on this day now that's how i would have traded it now there is no setup here i think this is the earnings so i wasn't going into earnings with this so now after earnings i'm going to probably like look at a pivot point here it tightens up or makes a flag i will trade
• 96:00 - 96:30 off that but my stop would be really tight i need see i don't want a wide stop uh if i do wide stop and the position is small i don't i don't like that it's just i wanted to see a tight setup uh do you generally address yep i do journal all my trades um i have actually journaled for since um [Music] last year last year i wasn't able to i wrote all down i derived my thoughts this year every trade has been uh journalized um every single trade
• 96:30 - 97:00 let's see please review and yeah [Music] richard any questions from your end uh i was just gonna ask you when you general trade what are some stuff that you uh keep track of like do you do you also write down like the volume run rate on the buy um anything like that or is it just your average price number shares all that stuff i write my thoughts actually i do take a screenshot um i have so many screenshots that i can't keep track of
• 97:00 - 97:30 um because i take the whole snapshot what i'm doing um if it's something unique that i'm doing um i would really print out the chart but i do write my thoughts what i'm like what i'm looking at and what's doing because it's it there's a reason i'm making that trade and so i usually go with that um because volume is always there when i'm buying a trade so it's it's i'm something's odd then i'll put that like i'll specifically write it is that how how do you journal
• 97:30 - 98:00 yeah i took a screenshot i've just a google doc i want to get more elaborate i've been looking to maybe like trade sync or something if i can do it automatically but probably doing it manually helps a bunch too i haven't i haven't used it fully uh because i'm using mark's platform because it calculates everything for me um so i use that but you can i can only write 150 characters on it so so so i have to be like brief on what i write
• 98:00 - 98:30 i i should look into trades and i have it i just don't use it um but uh let me i'll we'll talk in private i'll see how you're doing it maybe get some look at some pointers on that from you uh okay let's see please review nvidia i uh how would um i'll let richard why don't you review nvidia sure you've talked enough it's been great um so obviously you've got earnings coming up in two days so if you're trading this it's got to be
• 98:30 - 99:00 you've got to get cushioned before earnings if you're going to hold into it and this kind of situation that i was asking you earlier uh whether you would trade this an ish um but you've got a little bit of a pivot you had an upside reversal on this dairy here let me bring up my annotation tool uh but these highs that's a little bit of a pivot but obviously you've got this one here as well um yeah but i mean for me you've only got two days it's gonna be hard to make a ten percent uh get ten percent profit commission
• 99:00 - 99:30 before you just have to sell and and watch to see how it reacts to earnings yeah because in earnings it can come down or it can go up so you have you have two sides like you said it's a binary event so yeah it's binary event now there is a strategy um this is a very complex ibd you know you can do weekly options and execute the shares but i don't recommend that it's more mess and more headaches with that approach especially on liquid stock like this um
• 99:30 - 100:00 i just i'll just wait for a setup you know like this was after earnings um you had this setup right there this beautiful setup right there so you can get a setup after earnings and you can let it rip so i just i'm just going to wait for the setup a setup is forming your abs it's it's it's right there but i'm just going to wait for the earnings now you know the volume is totally drying up so it's a binary event uh yeah look how tight it was right here super tight
• 100:00 - 100:30 yeah yeah that was really good i i had a chart marked up there and traded it because i was buying a map so dumb i missed that trade amen has frustrated me so much oh my god i don't want to trade that truck it's a stock anymore oh my god this is like this is like chops okay for everyone this is chop fest this is what mark has been kicked off off this you would buy it and chop and picks up chop picks up breaks out chops picks up look it breaks out
• 100:30 - 101:00 and chop oh my god it's just but you know this will tighten up when everyone has given up on this will take off and everyone's given up on it and i always say binary even in three days i'm not even touching it so so there is that upper you know we go on weekly chart that's gonna break out you know yep there it is yeah yeah he's already picked it up so consolidation uh do you follow any individual stock to engage the market if you see start breakouts even if indexes are pressure
• 101:00 - 101:30 okay so i used to go the ibd approach uh look at the general market index and then the sectors and the stocks and i did good on that but now with a huge influence by mark i've actually flipped it uh i look at stocks now i do look at the market uh also if i'm trading the markets uh i do trade the qs and the spies i do really well if i'm shorting the queues and the spies at those times but otherwise i do trade them uh but i just look at if the stock is
• 101:30 - 102:00 setting up and rs is up everything is good it's if it's in its own cycle i will be trading it um now if there is but i look at my track record if i'm having a lot of losers in a row my size is small i need traction to increase size so i'm gauging that so if i'm having like four or five users i already know something's wrong with the market um so that's already telling me my stocks are telling me things are not moving right now so my own performance gives me a heads up it's a choppy period
• 102:00 - 102:30 something's weird is happening the trade you know because the number of because i'm treating them fast uh leaves sorority uses on its own he's really cool guy don't know trade material i have no idea what that is do you know what that is richard i i haven't heard it either but i assume it's pretty similar to trade sync and you can journal and track metrics uh when do i determine to go cash so right now i'm 50 in cash um i do grow
• 102:30 - 103:00 cash if i'm having um this type of situations happening um this is usually where i am going in where is that where's that slide should this i am usually in cash on this time so you see these are like feeler trades um when i'm doing very small trades it would be like one trade and the entire accounts in cash um so
• 103:00 - 103:30 this is when i'm in cash when i'm having lots of losers in a row i mean something is wrong i'd rather be in cash and take a fresh look at it i could even go smaller than this and have it really feel trade of what's going on so yeah this is when i go in cash when i have losers coming in do you follow any market trend system i assume you follow marines do you use any of the system my stuff is built uh i learned strictly from canslim william o'neill's i've been all their workshops uh and then you know mark's stuff has
• 103:30 - 104:00 evolved on top of it um i use everything in the canceling shop um you know that's the only thing i used i don't use anything else um what's the minimum rs consider trade rs um alright so we're looking at rs line uh are we looking at rs so which rs line are we looking at a relative strength um 80 and above 75 and above i start looking at stuff
• 104:00 - 104:30 um if it's on the rs line if it's turning a few factors it's not the deciding factor but obviously the best stocks would have the best rs that's just naturally what happens richard any more questions or you see anything if i miss something i i think you've covered most of the questions here okay well guys i hope uh everyone and oh and you guys go to ibm yep i've gone to ivy
• 104:30 - 105:00 market school that is actually pretty good um i don't use all the mechanics of market school um because they would talk about um so it's based on this on nasdaq so it's based on like when it's above the 21 day moving average with the throttle let's say if it taps there you reduce position size go back up there's a lot of mechanics involved in it um i don't think everybody uses it um i did the two i actually repeated that
• 105:00 - 105:30 twice um my main thing was that i took away from it and guys will get an edge on this one too is when the nasdaq is above the 21 day moving average that usually is a good sign um you know this is usually when things are moving really well um this is you know and they're absolutely going to sell under pressure if it's below the 2018 moving average that's one of the big uh in the end that's one of the big takeaways um now but your stocks could be doing different and you could be in a winning
• 105:30 - 106:00 trade like let's say for example taser in 2000 you know there were few other stocks last year markets down zoom is up let's look at zoom really quick uh from last year okay so um it was um when the market crashed february february okay so in february this is down but it's not as steep as the indexes were so this is what it was tightening up what was it no it's this year let me
• 106:00 - 106:30 look at last year it's a perfect example okay here we go mark is down you know world is falling are you all thinking what's going on my practice is shut down all kinds of hell is breaking loose but this stock is fighting the trend right there this stock is in its own cycle literally in its own cycle and i actually missed the street right there i was buying it right there missed it oh but i got this straight though but that's how you look at um
• 106:30 - 107:00 stock on their own cycle so i use i use stocks as my you know what i'm looking at uh yeah this recording will be available i will be releasing this um absolutely so after how many wins do you start increasing on decreasing position only after one trade oh okay so let me pull up this example here so there's no like it's not like a count but it's more like what i'm seeing um let's say in this example i initially i
• 107:00 - 107:30 had losers so they were already small then i started picking up traction then second trade was slightly bigger third trip was bigger and then immediately i went big then it came down so when it came down i still kept the size up seeing because i had gains from these trades um and then i had another loser now okay this game didn't work let me reduce size again and then size again size again so it's it's um i'm just keeping a keeping an eye out on the wrist because i'm also looking at where my account is so let's say i'm recovering
• 107:30 - 108:00 right now after recovery i'm actually going small so because it was up here on profit now it's recovered and i'm going small so you want to see this traction because you know you have multiple trades you're not just buying one stock let's say as i said you can have four to eight uh what was it on um like right here if you do half of this max position size you have uh two traits here so you know you can have like you know one two three four five six seven
• 108:00 - 108:30 eight you know you can start playing around with this and see if you get some traction then you can start increasing size um you know so that's i play around with this uh previous recordings i got few uh videos on their uh over the years a lot of stuff um has not been published uh it was at meetup it was live events i did a lot of live events so there's no recording of that for decades worth of stuff um i would say right now richard's
• 108:30 - 109:00 channel is the best place to go uh shout out to him he's in seattle now he moved there so uh congrats to uh richard uh but his channel's got amazing wealth of information you could you could spend you know richard how much how much how many hours of data is it on your channel you know uh i've never i don't know but i think i've made like 300 videos but i think the the podcasts are my favorite thing that i've done and i've done about 30 35 of those so
• 109:00 - 109:30 how many are each podcast is how long each hour hour 15. there you go that's a lot of days it's a lot there's probably years worth of education on that that one youtube page but because by the time you like even if it's uh even if it's an hour like if you stop and take notes it's going to take you two hours to watch the plot on his interviews right i mean yeah i mean on the airplane it took me two trips to finish one full video when i was flying to see family
• 109:30 - 110:00 that's my in-flight entertainment uh richard's videos uh okay so uh do i place trades a night before no i do not place any live trades in the system at night i do the research uh i do get 9 30 10 i have given that my ebay time every day i do get to see the market at those um the first 30 minutes uh rest of the time i do get to see me near the end of the day 3 30 to 4. but i have alerts uh placed in everything is placed in uh stops are placed in when i'm on the road uh when
• 110:00 - 110:30 i'm driving uh i place the orders in for the stops and that time i don't place the orders in pre-market because the algos can sometimes sniff it uh especially last year uh i saw it trade it was it was a i was using a managed account for the competition uh there was a size trade a position trade was there and algo snipped it but the bar never showed up on the charts i was like what's up with that so i place trades only when the market is active um not beforehand um and i don't um
• 110:30 - 111:00 yeah let's see let's see what else how do i decide when i go to cash under percent cash uh i think i that's that yeah if i'm having a losing streak uh quite a bit of losing streak i want to protect my gains uh i can decide to just go in cash even if the market's up i have to see what i'm doing wrong um so i don't lose my gains
• 111:00 - 111:30 i do not place orders right away at five minutes 10 minutes 15 minutes seven minutes uh i wait at least five minutes um it's after the first five minutes uh not right at the hot because a lot of algos a lot of things are readjusting at that first five minutes um definitely at um i i can place orders at 9 35 and onwards um now in rare cases the stock is gapping up there's a good entry uh if i'm exiting if i can get a good price uh something's gone wrong uh
• 111:30 - 112:00 sometimes i could sell a pre-market to prevent my losses to get bigger uh if i can get lucky with that yeah absolutely finally stock's gonna gap down i would do that but but i try not to do any aftermarket and the stock has to be very liquid in order for me to do that but it's not something i do at all um okay any other questions looks like it
• 112:00 - 112:30 was pretty wow this is actually a big event now we have a lot of people uh do you guys enjoy it and i know this is a complex material but i had to show the spreadsheet uh the training was that was that was the key um to scale in and scale up because i know i've been getting a lot of messages on twitter on a couple of dms about how do i scale up and scale down so i wanted to show you in real time example and i wanted to use a small account size to show it's possible
• 112:30 - 113:00 you know it's you can turn a small uh trade into your advantage uh so that's the point of it and then and if you let's say you buy today and sell tomorrow for example um you can't hit 100 trades easy you know uh even in two or three days you know and it's just it's it's just managing a risk reward relationship is at all times um you know at a certain size then there's liquidity stuff but that's your account has to be
• 113:00 - 113:30 at professional level at that point i would say if you're um at a really large size then you have to then there's difference you know what stock you're buying but for the example i wanted to just show an example that it is possible and it's you can do it with a small account um mark said if he was trading at the us ic at the 20k account he would be up thousands of percent right now because by using this risk war relationship since he's doing him when he's trading at a really large size he has to look at liquidity because he
• 113:30 - 114:00 does sometimes day trade uh trade i've seen him place an order um in 15 minutes he did a full um day trip position using 4x march and then sold it in 15 minutes but in those 15 minutes he made 300k i was like wow um like that blew my mind like he was able to trade that he was showing an example of how it liquidated trade is uh it was really amazing it was a live trade i think the whole a lot of mpa members they all saw it live it was
• 114:00 - 114:30 really fascinating i mean he's a he's a true market wizard uh and cool well guys uh richard bob thank you guys thank you everyone i'm gonna wrap it up here i'll have the video soon um any questions just you know you can publicly message on twitter or send me a message on the meetup page or you can also hit up um richard and then bob is also on twitter you can contact them and they
• 114:30 - 115:00 can forward the message to me or i'll see it too but and hopefully you know the next presentation will be by ryan fleming we have also um sanjay he's going to present also in november richard you want to present october yeah i can do that all right richard's going to present october so uh and then um keeping a look out for since i'm also on the board for the aai i'm probably gonna have some more uh growth traders uh coming up on their platform also because we're all kind of related uh and then uh
• 115:00 - 115:30 stay tuned or richard richard any surprises on your next video on your channel uh i'm i'm i'm currently talking with tomas claro who was second last year yeah so hopefully get an interview with him coming out soon looking forward to that oh i'm excited uh have you started that interview uh we've just chat chatted on the phone so far we have yet to nail down a date but um oh that's so cool oh yeah i'll i'll hit him up okay oh that's
• 115:30 - 116:00 gonna be exciting oh yeah that's exciting because i want to see some of his traits he's done some unique traits that i mean i'm trying to like wrap my brain around like what is he doing on those trades i want to see yeah i think i think he's a very quick time frame as well yeah he's very quick um my trading style is very similar to uh matt crusoe uh ours trading is very similar like it's unbelievably how seeing like how like we're like very similar in our trades like to be surprisingly honest
• 116:00 - 116:30 like that's actually pretty cool um i want to see uh oh tomas oh it's gonna be exciting i'll hit him up privately ask him what's he doing uh but thanks richard uh for that that's that's exciting uh everyone please uh stay tuned to his channel uh for that interview um and then uh i want to thank everyone thank you for attending taking time off your day hope your families everyone is good be safe out there and you know there'll be a lot of
• 116:30 - 117:00 opportunities in the market stay focused you know keep the discipline in check watch your stops study i highly recommend getting market smith for research just saves so much time uh if you do well even on a trade like this you can market smith can pay for itself you know that's one of my goals when i first started trading i never paid for market spent because even a small account paid for it um so and i'm not using any options uh strictly stock trading here um and then
• 117:00 - 117:30 it's you know i'll keep that in mind so good luck and be safe thank you guys [Music]