How to be a Consistent Trader by MM PRINT

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DISCLAIMER: The Professor is not a registered investment advisor or a broker-dealer and does not undertake to advise clients on which securities they should buy or sell for themselves. It must be understood that a very high degree of risk is involved in trading securities. The Professor assumes no responsibility or liability for trading and investment results. It should not be assumed that the methods, techniques or indicators presented in these products will be profitable nor that they will not result in losses. In addition, the indicators, strategies, rules and all other features of the products are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented are for educational purposes only. Accordingly, readers should not rely solely on the Information in making any trades or investment. Rather, they should use the Information only as a starting point for doing additional independent research in order to allow them to form their own opinions regarding trading and investments. Investors and traders must always consult with their licensed financial advisors and tax advisors to determine the suitability of any investment.

Table of Contents

INTRODUCTION 1.

WHAT LED ME TO BE SUCCESSFUL IN TRADING (A-B NOT A-Z)

MINDSET & EXPECTATIONS ARE YOUR BIGGEST OBSTACLES (EMOTIONS)

INVESTING VS TRADING THE MARKET

THE POTENTIAL OF WHAT TRADING CAN OFFER

FOMO (FEAR OF MISSING OUT) - HOW TO TRULY OVERCOME IT

BENEFITS OF SCALP TRADING VS SWING TRADING

THE 20 THOUGHTS YOUR MIND HAS, BEFORE, DURING, AND AFTER A TRADE

THE 40 MOST COMMON MISTAKES TRADERS ENCOUNTER

THE 30 STOCK TRADING QUOTES YOU NEED IN YOUR LIFE

BEGINNER LEVEL TRADER 1.

TIME OF DAY TO TRADE

SETTING UP YOUR CHARTING SOFTWARE

SETTING UP BROKERAGE ACCOUNT

HOW MUCH MONEY DO YOU NEED TO TRADE

PAPER TRADE VS. TRADING WITH ONE SHARE

BLUE CHIPS VS PENNY STOCKS

CASH ACCOUNT VS. MARGIN ACCOUNT

DANGERS OF OVERTRADING

LOOKING AT 1-3 STOCKS VS LOOKING AT +10

10.

FINDING YOUR TOP 3 STOCKS TO TRADE

11.

MARKET STAGES

12.

RISK MANAGEMENT

13.

MENTAL STOP LOSS VS. PHYSICAL STOP LOSS

14.

HALTED STOCKS

15.

FINDING STOCKS TO TRADE FOR THE DAY

16.

THE TECHNOLOGY YOU NEED TO TRADE

17.

STOCK MARKET HEAT MAP

18.

SCALP TRADING WITH HOTKEYS

19.

TRADING JOURNAL

20.

USING MARKET RESEARCH (NEWS, EARNINGS, FORECAST, IPO)

21.

TRADING BASED ON NEWS/EARNINGS VS. TRADING OFF CHARTS

Table of Contents

INTERMEDIATE LEVEL TRADER 1.

SUPPORT & RESISTANCE

3 LAYER VWAP

9-20-200 EMA

MACD

RSI

VOLUME

TIME & SALES

MULTIPLE TIME FRAMES

PREMARKET & POSTMARKET

PROFESSIONAL LEVEL TRADER 1.

TREND LINES

PRICE ACTION

FINDING THE BEST ENTRY & EXIT

SHORTING

UNDERSTANDING THE SPY

FUTURES MARKET

CANDLESTICK FORMATION . (HEIKIN-ASHI, KNOCK KNOCK BOOM, HOOK REVERSAL PATTERN, XYZ STAIRCASE PATTERN)

TRADING CHECKLIST

HOW TO BE A CONSISTENT TRADER

CRYPTO TRADING 1.

CRYPTO TRADING 101

GLOSSARY 1. KEY VOCABULARY

To understand the present and future, you must understand the past. -Professor

Imagine if you will, a reality in which you truly control your life. No limitations to anything, you can have anything you desire. What would you do for that reality? What if I told you that reality is possible, but it starts with you giving up all your worldly desires and time and focusing on everything I’ve written in this book. Are you up for that challenge? If not, don’t bother reading any further. But if you’re ready for that challenge, go forth and forget all you’ve known or heard about the market, be a clean slate, fill your mind with my strategy and become one with what I believe in because what I believe in is consistency. -Professor

WHAT LED ME TO BE SUCCESSFUL IN TRADING? When you focus all your energy on one thing, your chances of success have gone up tremendously. We must first understand that we only have a limited amount of time in our day and instead of focusing our time on multiple things, we should focus it on one thing and work hard to master it completely. Teaching economics for 9 years, I enjoyed teaching my students about the stock market. I did a project each year that was called the stock market project. Where students were setting up a paper trade account with $5,000 and they had to have at least $6,000 in 4 months. I taught them everything they needed to know about the market, such as looking at the supply and demand, earnings, expectations, sentiments, attitudes, economic indicators, and following the leader (volume). Every semester, students would make money and students wouldn’t make any money. The final part of the project was to write a 2-page essay explaining what led them to success and what led them to failure. The summary of those essays was simple, those that put in the work on the project passed, those who didn’t bother with it failed. The underlying success of my students who made money was that the stocks took over their lives. They would trade in their other classes as well and other teachers came complaining to me that my students wouldn’t put the phone away because they were actively managing their stocks. The major point that you should take away from that story is that for you to truly want success, it must consume your life. Nothing else should matter to you other than achieving a level of understanding in trading that makes you consistent. If you don’t make trading your only priority, then you’re doomed to failure.

My success in trading came when I discovered a mentor. He would go live on Instagram almost daily in the morning to trade the market and then again at night to go over questions and mindset. I would actively watch him and also request to go live with him. I made my first $1000 trading the stock Moderna while watching his live show in less than 5 minutes. That was the point that something changed in me. For me to make that money that fast was unbelievable. From that moment on, I made his content my life priority, I made stock charts my reason to breathe. I would be up late at night talking to my fellow traders on long zoom calls and learning and absorbing from the community of traders. As I absorbed more content and applied it to my trades, I began to see my level of success increase and I started creating my own content to simplify trading for my traders. I noticed that when I helped my fellow traders learn the content, I would begin to understand and pick up on specific candlestick patterns, see support and resistance lines in a way I didn’t see before. All this information just helped me become a better trader. My second mentor was Mark Palomba. He came on an Instagram live show with my first mentor, and the way Mark talked about his strategy had me intrigued. I messaged him immediately after the live show and set up a 1 on 1 session to help me understand his style of trading and at that moment, my understanding and style of trading took off. Mark’s strategy was simple, trade the same stock long and short daily. That strategy eliminated a lot of the uncertainty of the market. I was tired of waking up daily, looking at scanners to find stocks that could potentially break out and have high volume. I would have to create support and resistance lines on those tickers quickly, find the trend and try to figure out its past prices that would eventually dictate its present price moves. I was fed up with that style of trading and I embraced the style of trading where I focus on 3 tickers, master 1 ticker, and learn its historical price points and its market cycles to know how I can trade long and short on it. We tend to do too many things to accomplish one goal. Instead of focusing on mastering multiple skills, learn to master one skill. Put all your energy into it and I promise you if you have pure intentions and truly want the best, you will accomplish that goal.

I want you to find your purpose for trading, then go from point A to point B. Don’t go from point A to point Z. My point A to point B was the motorcycle, now I’m on to point C, which is to build my own trading school in Puerto Rico. Every cent that I receive from my 4 days, +20 hour virtual trading seminar, and my 1 on 1 trading mentorship I put into cryptocurrency, mainly Ethereum. I know the success and power that trading the market can offer and I want to provide that to the masses in my simplified style of teaching. Once I reach that goal, I want to become a philanthropist. I want to provide homeless people with food, clothing and find jobs. I’ve always had a passion for helping those with less and I’m blessed to be able to do that. Ask yourself, what is your purpose? If your purpose is more money, that isn’t the ultimate purpose. Find what is your true passion for doing what you want to do. Ask yourself, if money didn’t matter, what would you do? I get asked constantly, why do you go live 4x a week, why is your course free, why are you not charging for your book? The answer is simple, the secret to the universe is, to give back with pure intentions without wanting anything in return and you’ll get back one way or another unmeasurable blessing. To sum up, Trading has to take precedence over your family, 9-5, friends, and your hobbies. Once you master trading, you must have hobbies, make time for your family and friends. Eventually, you can stop working your 9-5 if it doesn’t bring you happiness. You have to stick to one strategy and through constant use and experience, you’ll see the fruits of the seeds you planted to grow into a tree.

MINDSET & EXPECTATIONS ARE YOUR BIGGEST OBSTACLES (EMOTIONS) The market doesn’t care about you, it does whatever it wants, whenever it wants. Your biggest enemy in the world of trading isn’t your lack of understanding of technical analysis, it’s your emotions. You’re attached to your money, which causes immense fear when you see a red candle and a negative P/L (Profit/Loss). Learning to be patient and having discipline are the key foundations of a successful trader, so much so that, during my virtual seminar, the first day and countless hours are spent only on having deep mindset conversations. A time will come when I create my own school, the seminar will be 7 days and most of those days will be spent on the beach and rainforest, having a deep conversation that goes into self-control, reasons behind trading, what vices do we have in our life that control our life. If you expect to make hundreds of thousands of dollars in the market each week or each month, you’re living in a false reality. The majority of YouTubers and influencers push this notion that it is possible to make hundreds of thousands a month in the market. Here is the hard truth, to make money in the market, it’s a slow process, you must first take the time to learn how to trade, then gain XP (experience points) which then allow you to make mistakes, learn from them and slowly start to make money. Once you master scalp trading, you can slowly increase your position size in your trades and reap the benefits of all the days where you didn’t see any money coming in. One issue that you will encounter daily is the fact that the market can produce an infinite amount of money for you to make. You might say that’s not an issue, but that is an issue when you have zero self-control and plan to take every single trade that comes your way, this is called over-trading. You want high-quality trade setups, not random trades that you jump in and out of. Think of it this way, look at a spider. The spider creates a web and sits and waits for insects to fall in the web and he goes and eats it. It then waits patiently for the next insect to get stuck on the web. You must be like the spider. You must create your perfect setup and wait for the trade to come to you, this is a concept we will discuss further in the book.

You will be able to solve almost all your mindset issues in trading by keeping a trading journal. You can download my free trading journal on my website, scan the QR code in the beginning of the book to access it. The reason why keeping a trading journal is mandatory, it helps you trust the process. You will see where the indicators are, how the trend is if you did what you had to do. It’s basically a checklist that helps you keep calm as the trade is occurring. Not every trade will go the way you planned it, so that’s where you will have written your entry, exit, and mental stop loss. The best way to stay in the trading game for life is to learn to cut your losses early. Once the stock breaks a strong support level/trend, you must get out of the trade, it doesn't matter if you’re in profit/loss, get out! You must remember, a stock falls faster down than it goes up. This is another mindset issue, human beings, in general, don’t like to lose and don’t like to admit defeat, so the stocks create an emotional wreck on a trader if they don’t have discipline. One way I’ve been able to gain discipline in my life is through intermittent fasting. Once you’re strong enough to control your hunger from sunrise to sunset, you can have selfcontrol over all your emotions. When I go on a fast, I don’t eat or drink for over 12-15 hours. Before the fast, I’ll have any kind of melon. The reason behind that is, melons are high in fiber and are filled with water, which will keep me full longer. Not only is controlling my hunger one aspect of discipline, but it also helps me control other parts of my life. I used to be an angry individual, almost everything used to trigger me when I was younger. During intermittent fasting, I had to control my anger. Over time, I learned to keep all my emotions in check. I’ve been fasting since I was 19 and I do it 2x a week and during the year, I fast for 30 days in a whole month. A key thing to remember is I don’t have any vices that control my life. I don’t drink alcohol, smoke, do drugs, or gamble. My only vice would be cookies and I only eat them once a month. I’ve learned that my self-control comes into play when I’m in a trade and my greed would want me to take a trade, even though the setup isn’t there. That’s where my self-control comes into play, I don’t take the trade because it might be overextended, not at the strongest level of support or it’s consolidating. You must always be like the spider, waiting for the setup to come to you. Learning to be patient can be learned in a few ways, one way would be through constant failures, studying why you failed at it, and learning to avoid that action. The next way would be to control your desires in your day-to-day life. If you smoke, drink, do drugs, eat unhealthily or do anything that you know hurts your health and you can go a few days or a few weeks without it, that will help you build up your self-control.

Trading will test you in ways you can’t imagine. Our attachment to our money, the majority of us have an employee mindset and a thirst for more money leads to our downfall. You must first know that the money you use to trade must be money that you can live without. It has to be money that doesn’t go towards debt or bills. The reasoning for that is because, if you need that money for important means, if you see a little red, you will panic sell. After all, you envision all the things you could have done with that money. Let’s talk about an employee mindset, that is when you’re at work you make x amount a day, you get a salary and if your boss offers you overtime, you rush to take it to make more than your salary. You can not bring that employee mindset into trading. You will have days where the setup isn’t there, you can’t take a single trade and that’s okay because then you will have days where you make more than you could ever in one month working your 9-5 job. That’s the power of trading the market. I’ve made more than I can ever make as a New York City teacher. I make $4000 a month after taxes, I’ve made that amount in less than 1 hour, you can watch the video of me live trading in my free course, scan the QR code in the beginning of the book to access it.. I want you to do the math on your monthly salary and then break it down to how much you make per day and calculate how many hours you worked that day to make that paycheck. I make roughly $200 a day teaching and if I can make more than that in a few seconds, that can help me eliminate my 9-5 and focus on trading and other things I enjoy. I love teaching, it’s the only thing that truly makes me happy, it’s my ultimate goal to create my own school and teach till the end. I never see myself retiring.

To sum up, you need to learn self-control, discipline to truly master trading. You need to become detached from your employee mindset and start trading like a spider.

INVESTING VS TRADING THE MARKET The reality you create today will make your future dreams seem insignificant. Every single cent I receive from my virtual seminars gets invested in Ethereum. I’m a big believer in cryptocurrency and I know where it will go in the future. As I write this book today, ETH is $2142, it’s all-time high was $4384. Looking at how institutions, hedge funds, and leaders of countries are aligning themselves with cryptocurrency, anyone that sees the future of finance can see where prices will go. Trading stocks is simple for me. Stocks move up and down throughout the day, you find their support, resistance, and trend. You then take entry above support and exit at resistance, it’s that simple. The same can be applied to trading cryptocurrency, but those markets are open 24/7, and that kind of mental stress I don’t want to be part of. When you trade the stock, you make sure you close the position when the trend is broken, do not keep the position open after 4:00 pm est. Anything can happen after hours and premarket the next day. No one can predict what will happen tomorrow, but one thing is for sure, you take profits or cut losses before the day ends and it will help save you from plenty of mental anguish.

To sum up, the upside to investing in cryptocurrency is greater than the stock market, so I chose to invest there. Trading stocks provide a nice cash flow, which I call printing stocks.

THE POTENTIAL OF WHAT TRADING CAN OFFER The version of what you will become starts with the actions you take today. Trading can free you from a desk, a time card, a boss, coworkers, customers, paperwork, meetings, commute, salary, hourly wage, time away from your spouse and children. All you need to do is spend time learning how to trade, which I offer through my free course, this book you downloaded for free, my free live shows on Instagram/youtube on Tuesdays and Fridays at 8 pm est and 9 pm est, and also my 4 days virtual trading seminar. All that is expected from you is to use all that content to your benefit, you need to put in the work to study the material, then in due time, start trading the market with a small number of shares, and then the true learning begins. You will then learn through what I call XP, experience points. You will place your support, resistance lines, learn the formations of the candles and see how it all plays out. If you take all of this seriously and make it your priority, your life will change in ways you can’t imagine. You can think of trading in two ways, a way to replace your paycheck as your main source of income or a second paycheck to add on to your monthly salary. It’s all how you want to view it and dedicate your time. Once you master trading, you truly only need less than 2 hours of time and then you’ll only need 45 minutes or less depending on the size of your trading account. Trading isn’t easy and won’t work for you unless you give your time to it, but the upside is immense. In the movie Rocky, Rocky trained for the majority of the movie, which was 2 hours long, but the actual fight he trained for was only a few minutes, that’s exactly how trading is.

To sum up, your level of success depends on how much time you will give to learning to trade and not trading itself.

FOMO ( FEAR OF MISSING OUT ) HOW TO TRULY OVERCOME IT Your peace of mind is worth more than any of your stock profits, keep that in mind. The mother of all sins that will ruin your stock profits is FOMO, the fear of missing out. Why is that an issue? It’s an issue because it puts you in a false reality about a trade that you think you missed out on, only if you were on the computer at that very moment. This will lead to depression, sadness, anger, and resentment. You take the trades you planned for, the trades you were set up for, the trades where you had the perfect entry, exit, and mental stop losses set up, that’s it! No one can predict what a particular trade will do, all you can do is work your hardest for the trade you set up. Once your trade has been accomplished, shut down the computer and continue with your day, do not keep looking at the trades that you could have taken. You need to find hobbies, once you master trading. Do not live your life in the charts, your mindset is more important than anything else. Once you download my free trading journal, you should have it printed out and laminated. This way, you see it constantly on your trading computer. Throughout time, as you build experience points (XP), you will begin to see specific candlestick movements that will lead to your success. Think of trading the same way as when you first started driving your car. In the beginning, you were so reliant on your GPS, and in due time, you didn’t need it anymore. You just knew how to get from your home to those familiar destinations. Trading is the same. As you trade, you will learn to become familiar with the trading charts and specifically your ticker that you master. You will know all the movements and you will eventually think trading is easy. To sum up, you will learn through experience points (XP) when to take the best trades and when to walk away. You can not take every trade you see, you have to wait like a spider for the perfect entry and exit.

Scan code to access trading journal:

BENEFITS OF SCALP TRADING VS SWING TRADING The volatility of the stock market each day is an opportunity for those who see it. Scalp trading offers you a paycheck every single day. Technically, it offers you a paycheck in a few minutes or a couple of hours. Swing trading offers you a paycheck a few weeks or a few months later. You decide what you want to master. Scalp or swing trading has its benefits and disadvantages, let’s go into them. You scalp trade for a few seconds to minutes, you have to be focused on the charts like a laser, it can be mentally exhausting, you have to be fast to react to the movements of the candles and be ready to buy and sell just as fast and it takes time to master because your emotions are your biggest enemy. Swing trading, you’re in the trade for days, weeks, and even months, you don’t have to focus on the charts, you place the trade and look at it whenever your feel like it to see its movements throughout time, it can be mentally exhausting waking up each day and if you’re in a big position and your swing keeps going down, it will cause your emotions to run wild. Your swing position is heavily influenced by news, earnings reports, and just about anything that even mentions your ticker. For me, I can’t wake up to see being down thousands of dollars. That stress is out of my control, what is in my control is understanding where the strong support and resistance levels are on my trade. I know where I should enter and exit and I can handle the volatility in that period. To sum up, you can learn what works for you. Everything you will learn about scalp trading, works with swing trading, just on a bigger time frame. It all depends on how much time you want to give to learning the charts. Do you want a steady paycheck given to you every few minutes or do you want to wait weeks or months to get paid, you decide.

THE 20 THOUGHTS YOUR MIND HAS, BEFORE, DURING, AND AFTER A TRADE Your reality is created by you, you decide how the candles make you feel, you hold the power. For my virtual seminar students, please print this page and have it for the first day of the seminar. We will discuss the thoughts your mind has, before, during, and after a trade more in-depth. When you sit down and start looking at charts, learning price action, figuring out which indicators you should use, and trying to see what time frames work best, your mind wreaks havoc on you. When you get overwhelming feelings when trading, what are those thoughts in your head? Here are those 20 thoughts your mind tells you, that make you lose in your trades.

You don’t know what you’re doing, just stop.

This stock will go up, just watch.

This stock can’t go any lower, don’t exit the trade.

Your first trade went so well, you figured it all out.

You can go bigger in position size, you figured it all out.

You’re in the profit, don’t wait for the resistance, just exit the trade.

The stock keeps going, I should have stayed in longer.

It won’t pull back, it keeps going, let me enter before it goes down.

It looks good on the 1-minute time frame, just enter, don’t look at the other time frames.

Everyone else is making money on this trade, I can as well.

If this goes up $X amount, I can have $XXX, XXX amount. Let me make that risky trade.

You’re so stupid, you exited too quickly and now the stock kept going. Stay in longer!!

The stock did well yesterday, it will do well again. Go heavier on the trade.

Give up, you keep losing, you don’t even know how to make support & resistance lines!

All I need is this one penny stock to go up to $1 and I’ll pay off all my debt.

If he can do it so well, so can I.

This strategy doesn’t work, let me try another one.

18 19

Too many things are happening in this chart, I don’t know what to focus more on.

The stock market is a scam, no one can make money in the market.

I think this stock is good to trade, everyone online is saying it’s good, so it has to be good.

These thoughts will riddle your mind daily and they won’t let you focus on the trade. Use my free trading journal, watch the videos in my free course, and if that isn’t helping you, take the 4-day virtual seminar. What you need first is the knowledge behind trading, then you need the guidance I offer you, and then you need XP (Experience Points) which through trials and tribulations you learn to be a better trader. To sum up, you need to learn to trade, then learn to control your emotions/mindset, and then learn through experience.

THE 40 MOST COMMON MISTAKES TRADERS ENCOUNTER Learn from your mistakes, if not, you will live a life of suffering. For my virtual seminar students, please print this page and have it for the first day of the seminar, we will discuss the 40 common mistakes more in-depth. Being the professor, I have thousands of traders who have messaged me with everything they’ve done right and wrong, more messages about the mistakes they’ve made, and asked me for guidance. Here is the list of all the things you might encounter before you ever trade. I want you to remember all that could go wrong and don’t let it happen to you. Learning from others’ mistakes will make you wise.

Thinking that the stock can’t go any lower after it breaks the support line.

Swing trading a scalp trade.

Buying a massive position without testing out a scalping strategy.

Not having a mentor to guide you, thinking you can figure it out alone.

Not trusting the trend of the stock on the 15-minute chart.

Not making trend lines.

Not understanding trend lines.

FOMO (Fear of Missing Out) Taking trades without planning thinking you’ll miss out.

Not making support and resistance lines on the Daily, 2 hours and 15 min chart.

Trading at 9:30 am est (Market is extremely volatile/ Computer Trading).

Trading from 12 pm est - 1 pm est, lunch hour, market slows down.

Dollar-cost averaging on a losing position (Buying a losing stock regularly)

Trading overextended candles (Stocks that have made massive moves to the upside)

Not having a trading plan/journal before trading

Not respecting your mental/physical stop loss.

Waiting for a winning trade to turn into a losing trade (Not taking profits)

Not doing analysis/due diligence of the ticker before trading.

Trading with a slow computer/internet.

Using Robinhood to trade.

Trading with a lack of sleep.

Trading while not in the right mindset (Angry, frustrated, annoyed)

Not knowing how to use charting software.

Not knowing how to deal with greed

Not knowing how to deal with the frustration of taking a loss

Not having confidence in yourself/ level of trading skills

Thinking you are better than the market

Thinking the market is black and white, with no grays.

28 29

Not adapting to the changes that occur throughout the trading day.

Giving up after a few losses.

Not understanding market cycles.

Not trusting the process of learning through trial and error.

Not using hotkeys to trade.

Not looking at the SPY when trading blue-chips.

Using margin to trade, when not learning to fully become consistent.

Thinking that anyone trading strategy has a 100% success rate.

Jumping from one strategy to the next and never mastering any trading strategy.

Trading based on random tickers called in trading group chats.

Trading penny stocks with entire account balance.

Trading to make unrealistic profits (Thousands/Tens of thousands with a small account).

Trading just because you’re bored/have free time.

To sum up, use the 40 common mistakes traders encounter and truly understand why they happen, don’t say “this won’t happen to me, I’m better than that”. Don’t become arrogant or think you’re better than anyone. Accept that anything can go wrong, but plan for the best outcome.

THE 30 STOCK TRADING QUOTES YOU NEED IN YOUR LIFE The 30 quotes you will be reading are a great wake-up call for your mindset. Go through each of them and truly understand how they play a role in your trading mindset.

01 02

You can be free. You can live and work anywhere in the world. You can be independent of routine and not answer to anybody. Alexander Elder

A peak performance trader is committed to being the best and doing whatever it takes to be the best. He feels responsible for whatever happens and thus can learn from his mistakes. These people typically have a working business plan for trading because they treat trading as a business. Van K. Tharp

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. Warren Buffett

I believe in analysis and not forecasting.

Nicolas Darvas

When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well… If you stick around when the market is severely against you, sooner or later they are going to carry you out. Randy McKay

The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short. Victor Sperandeo

What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower. William O’Neil

You don’t need to be a rocket scientist. Investing is not a game where the guy with 160 IQ beats the guy with 130 IQ. Warren Buffett

Focus, patience, wise discernment, non-attachment —the skills you acquire in meditation and the skills you need to thrive in trading are the same. Yvan Byeajee

That cotton trade was almost the deal breaker for me. It was at that point that I said, ‘Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain? Paul Tudor Jones

The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance. Ed Seykota

Money is just something you need in case you do not die tomorrow. Let this be a reminder for you not to obsess over profits and losses. In whatever you do, strive for enjoyment, focus, contentment, humility, openness… Paradoxically (and as an unintended consequence) your trading performance will improve significantly. Yvan Byeajee

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Confidence is not “I will profit on this trade.” Confidence is “I will be fine if I don’t profit from this trade. Yvan Byeajee 14. You don’t need to trade often. If you can catch one or two moves to the targets during the day with good size, you can make a good living and keep trading costs down. Unknown

Don’t blindly follow someone, follow the market and try to hear what it is telling you. Jaymin Shah

Losses are necessary, as long as they are associated with a technique to help you learn from them. David Sikhosana

Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you. Larry Hite

I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell. Tom Basso

It does not matter how slowly you go as long as you do not stop.

The goal of a successful trader is to make the best trades. Money is secondary. Alexander Elder

The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages. Jesse Livermore

Confucius

It’s not what we do once in a while that shapes our lives. It’s what we do consistently. Anthony Robbins

Learn to take losses. The most important thing in making money is not letting your losses get out of hand. Marty Schwartz

I have learned through the years that after a good run of profits in the markets, it's very important to take a few days off as a reward. The natural tendency is to keep pushing until the streak ends. But experience has taught me that a rest in the middle of the streak can often extend it. Marty Schwartz

In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten. Peter Lynch

26 27 28

It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently. Warren Buffett

You will never find fulfillment trading the markets if you don’t learn to appreciate and be satisfied with what you already have. Yvan Byeajee

Markets change their behavior faster than people can change their minds… That is why intraday trading is so difficult. Unknown

If you personalize losses, you can’t trade.

Bruce Kovner

I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have. Paul Tudor Jones

To sum up, you need to learn patience and know that the trading battle falls more on your level of discipline than actually the charts.

TAKE NOTES

TIME OF DAY TO TRADE You decide when you wake up to go back to sleep for 5 more minutes or make your days pay in 5 minutes. What would you rather choose? The market is open from 9:30 am - 4:00 pm easter standard time, but you can also trade starting at 4:00 am - 9:30 am which is called premarket. You can also trade from 4:00 pm to 8:00 pm, which is called after hours. I highly suggest you avoid trading premarket and after-hours because of the lack of volume to execute a trade and even if your trade is executed, it’s hard to get out of your position because of a lack of volume. You will see insane moves during premarket and after-hours trading on penny stocks and that temptation gets traders excited to enter and ride the wave, but being stuck in a position with no way out is nothing more than complete devastation. If you want to try out premarket and after-hours, go in and trade it with 1-5 shares, test it out and see for yourself. You will have 3 types of traders, the 1st type will learn from a mentor and books what to and not to do and avoid those mistakes. The 2nd type will make mistakes on their own and learn from them. The 3rd type will learn from a mentor, books, and make mistakes, but will keep doing whatever they please until their account is either in the negative or they’ve burned through savings and have nothing left to offer. Be the 1st type of trader and learn from my free course, free live shows on Instagram 4x a week, and this book on what to and not to do, your future self will thank you for it. The market is extremely volatile from 9:30 am to 9:45 am EST, this is because of all the orders being filled and will cause a trader to take massive profits or massive losses if they don’t know what they’re doing. It would be like going surfing during a tsunami and you’ve never surfed before or ridden a motorcycle in the streets of New York City when you just got your license. A new trader should only trade from 10:15 am to 11:45 am EST because that is the time the market stabilizes and you can see a trend. You want to learn how to crawl, walk and then run. Use that analogy when you’re starting trading. Always choose consistency over trying to make money fast and don’t risk losing vast amounts of your gains because you got greedy and impatient.

You want to avoid trading from 12:00 pm to 1:00 pm EST because that is lunchtime and the market slows down, you don’t want to be stuck in a trade and it doesn’t go anywhere. You want a trade where the stock is moving nicely in the desired direction. You should just stop trading after 11:45 am EST because if you didn’t see the setup that you were looking for in the time you were on your computer, you will hunt for trades and start over trading, which is extremely dangerous and we’ll talk more about it in further chapters.

To sum up, the perfect time to trade is 10:15 am - 11:45 am EST but if you see an opportunity at 9:50 am EST, where the candles are near or on the strongest level of support made on the daily chart or the hourly chart, you can take the trade with confidence.

SETTING UP YOUR CHARTING SOFTWARE If you don’t have the right tools for the job, you won’t get the job done right. You have many websites and apps that offer charting software. You can use Webull, Think or Swim, or even Etrade charts, but nothing is better than TradingView. TradingView has easy-to-understand charts, easy tools that cover everything you need to become a consistent trader. You can go into my free trading course and I break down exactly how to set up Trading View, which plan to get and how to get live market data, so you don’t have any lag in prices. Here is the link to sign up for TradingView and get $30 off. Sign up for the Pro+ Version and also get live market data for $4 a month. All of this is explained in my free trading course.

Scan QR code to access Tradingview:

To sum up, use Tradingview for your charting software and make sure you learn how to use it well, so you can understand how to chart without any issues.

Scan QR code to watch the video breaking it down:

SETTING UP BROKERAGE ACCOUNT Speed is your friend in trading, choose the right tools for the fastest execution. You will need the best brokerage account to trade the market. You have many options to choose from, the best one I’ve used is Webull. The reason why Webull works so well is that it has a fast buy and sell execution speed and is easy to understand. The app is perfect and I’ve made videos explaining how to use it. You should never use Robinhood to trade stocks, it has the slowest execution speed. Make sure if you have an investment account, it is separate from your trading account. You don’t want to look at your trading positions mixed with your investment positions. It will cloud your judgment every time you open up your account to trade. You can open up an Etrade or even Think or Swim brokerage account for investments if you like.

Scan QR code to set up your Webull Account:

To sum up, use Webull to trade the market, it’s fast and reliable.

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HOW MUCH MONEY DO YOU NEED TO TRADE? True wealth is built up over time, small gains add up in due time. When you start to trade, you need to understand that you are a beginner and student of trading. You shouldn’t even think about making money for the first few months. Your only focus should be to master support and resistance, indicators, price action, trend lines, and understanding candlestick formation. You need to put $1000 in your brokerage account, not one dollar more than that. That $1000 is your practice money, it’s your learning curve money. As you progress in your trading journey, you will make mistakes, and to help you not make expensive mistakes, you will only have a small account size to protect you from massive downsize. When you start a journey off into anything new, you will have to learn from your mistakes, which is a good thing. The $1000 will protect you in ways you can’t imagine. Instead of learning and making mistakes with an account that has tens of thousands and will hurt you to the point where you give up on trading. The $1000 is always to teach you to be disciplined. You will have numerous days where you’re upset you aren’t making any money and will want to take unnecessary trades that will hurt you, but you can’t because you only have $1000 in the account. You’re reading this book because you’ve concluded numerous tries to make money fast, and have figured out, you can’t make money fast in the market. So understand that and know that this learning process is long and is meant to help you understand how to trade before you can go on and make a good amount of money.

To sum up, fund your trading account with only $1000 and don’t even think about making any money in the market for the first few months. Everyone learns at a different pace, so it depends on how much time and energy you put into trading, you can learn it faster than most.

PAPER TRADE VS. TRADING WITH ONE SHARE Emotions play a bigger role in trading than any indicator or candlestick formation. Paper trading, demo trading, or virtual trading is when you trade the real market with fake money. It should mainly be used when you have to learn how to make support, resistance lines, learn indicators, understand the candlestick formation and understand your charting software. You can practice paper-trading for no more than 4 weeks and the reason for that is trading is all emotions. When you paper trade, your emotions are not in it and you take trades you wouldn’t take with real money. The majority of traders are successful in paper trading and when they start trading with real money, they take loss after loss and that’s due to the emotional connection we have with money. Once you understand support, resistance, indicators, candlestick formation, and TradingView well with paper trading, you can now move on to trading with 1 share. Make sure your account is a cash account and you have $1000 in it. You should also have your top 3 blue-chip stocks ready to go, which we will talk about further in another chapter. Once you trade with 1 share, you have emotions in your trade and if you still don’t feel any emotions as you buy and sell, then raise that to 5 shares and then 10 shares as needed for you to feel connected to the trade. How do you know you’re connected to the trade? You feel anxious, heart rate increases, fear, and excitement will be all rolled into one feeling. This is a normal feeling when it comes to trading, the same as before you skydive off a plane, going in front of your colleagues in a meeting, or having a job interview. How do you eventually overcome that fear? One way is through practicing and building up your confidence in your ability to trade. As you use my free trading journal and you notice your success rate, you build up the confidence and fear begins to go away. To sum up, paper-trade for a maximum of 4 weeks and then transition over to trading with 1 share. As you get better at trading, increase your position size by 1-5 shares only.

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BLUE CHIPS VS PENNY STOCKS Death and destruction come in many forms, in the stock world, its form is Penny Stocks. The temptation of a penny stock is understandable. You have a stock that is less than $5 and if you buy X amount of it and it goes to $10 you’re going to be rich or if the stock is $0.30 and you buy X amount of it and if it goes to $1, you’re going to be rich. This is a scenario that goes through almost every trader when they start their trading journey. Penny stocks are stocks that are worth less than $5, have massive spreads, where the price can move from $2 to $15 in a matter of minutes and back to $2 with the blink of an eye. Stocks move down faster than they move up and when a penny stock falls, it can fall over $1 in the blink of an eye. You also have the danger of a penny stock getting halted, which means if it moves up or down too fast, the market triggers circuit breakers, which freezes or halts the stock in place. You cannot buy or sell when this occurs and two events will take place, it will either fall drastically or rise exponentially once the halt stops. The halt can last for minutes, hours, and even overnight. That is another danger you need to keep in mind trading penny stocks. The consistency and the gentle movements of bluechip stocks will make you fall in love with trading, only if you truly understand how trading is a slow and steady money maker. A blue-chip is a stock that is a household name, has strong financials, is dependable, and offers an actual product. The name blue chip comes from poker, where the blue-chip has the highest value. You want to find a blue-chip stock that moves with the SPY (Ticker). The SPY is a basket of the top 500 companies and it shows the strength of the US economy. Think of the SPY as a crystal ball, whatever the SPY does, the blue-chip you picked that moves with the spy will do the same, but with a slight delay of 2-10 seconds. As a novice trader, find a blue-chip stock that has a spread of $1 or less. That means a stock that moves within a dollar throughout the trading day. As you become a better trader and your XP (experience points) grows, you can trade stocks that move $2-$20 in a day.

To sum up, learn to trade blue-chip stocks. Stick to stocks that are in the $5-$15 area. This will allow you to have a higher profit margin than trading stocks worth $100s-$1000s. Avoid penny stocks because of the instability they bring.

CASH ACCOUNT VS. MARGIN ACCOUNT You have many ways to end your account in the early stages of trading, the fastest way is a margin account.

When you sign up for your trading brokerage account, you will have to choose between a cash or margin account. A cash account uses only the money you have deposited from your bank to trade. A margin account lets you borrow the brokerage’s money to take trades that are much bigger than your actual account size. For example, in a cash account, if you have $1000, you can only trade that $1000, not more than that. In a margin account, if you have $1000, you can trade depending on if your brokerage accounts let you trade 2x, 3x, and even 4x a specific stock. So you can end up trading $4000 total when you only have $1000 in your account. That’s over $3000 that you don’t have. For many of you, you might see nothing but positives about using a margin account, you can double, triple and even quadruple your profits from using borrowed money in a margin account, but you’re only looking at one side. Yes, if the trades go well in your favor, you can make a lot of money a lot faster. What if the trade goes against you? You can lose double, triple, and even quadruple your money, which means you’ll end up owing money and that’s a place you don’t want to be in. Once you understand that trading is a slow and steady way of making money, then you’ll avoid a margin account. Once you master trading and become consistent, you can eventually change your cash account into a margin account, but in the early stages, don’t use a margin account. To change a cash account into a margin account is an easy process, it isn’t an irreversible action.

To sum up, start with a cash account and as you gain experience, you can slowly move to a margin account.

DANGERS OF OVERTRADING Learning to walk away when you’ve won, is the key to keeping your victory over the market. Overtrading is another one of those instances where you can lose all your money trading. As the word clearly states, you trade more than you should. The market offers infinite opportunities to make money, but finding the best opportunities is where the money is made. If you think sitting at the computer from market open to market close is how you’ll make a lot of money you’re dead wrong. What you need to be is the spider. You need to have your top 3 stocks, create the support and resistance lines, create the trend line and then wait for the moment where the stock falls on the strongest level of support and take the trade until it hits resistance. That is all you need to do when trading stocks. You can get right back in when the resistance becomes support, this will be covered further in the chapter on support and resistance. All you need to understand is, to look for 2 and a maximum of 3 trades for the day, between the hours of 10:00 am - 11:45 am EST and if you don’t see it during that time, walk away from the computer. If you get 2 excellent trades and you don’t see any setup there to take, shut down the computer and find something else to do. You don’t want to turn your 2 winning trades into 2 losing trades or worse, lose more money than you made. If you end up trying to make back the money you lost, that’s called revenge trading. You will trade bad setups just to make the money you lost and that usually results in losing more money. The solution to that is, always be the spider. If the setup isn’t there don’t take it and if things go bad on the trade, shut down the computer. You must live to trade another day, you must understand that when your mindset has gone into a negative state, you will not see clearly and you will take trades you think are good when in reality, they are the beginning of the end of your trading career.

To sum up, wait for the right setup, take two winning trades, and walk away, if you have 2 bad trades walk away. Learn to understand this phrase, live to trade another day.

LOOKING AT 1-3 STOCKS VS LOOKING AT +10 Your mind can only handle so much, you overwhelm it, you will get nothing done. You will see many traders with stock watchlists for hundreds of stocks and spend each day trying to see which ones are green to trade and this approach is a waste of time. What you must do is, find 3 stocks that are more than $5 and under $15. These 3 stocks must be in different sectors, but those sectors must not be correlated with one another. For example, don’t pick an airline, cruise, or restaurant stock. When the coronavirus started in 2020, those 3 sectors got hit the hardest at the same time. Make sure you do your due diligence when you pick your 3 stocks. You want to make sure those 3 stocks have over 2 million in daily volume, average volume greater or equal to the 2 million, the candles respect to support and resistance, the stocks follow the market stages (covered in a separate chapter), have a spread of $1 and follow predictable patterns. When you focus on all those data points, you will be amazed how your life will be much simpler by just looking at 3 stocks. Imagine doing all that for +10 stocks, you would miss all the opportunities that come to you and you will eventually end up chasing a stock. Chasing a stock means, you missed the initial entry and just took the trade because you saw a few green candles and by the time you enter, the stock pulls back and now you’re stuck in the trade and down more than you want to. Be the spider, wait patiently for the entry to come to you, and execute your trade. That is easily done if you’re only looking at 3 stocks and if you don’t see movement in all 3 stocks, it’s okay to take the day off from trading. You won’t always find an opportunity to trade and that’s okay.

To sum up, find 3 stocks, study and understand them. This will help you find opportunities faster than looking at over 10 and missing the opportunities or getting in too late.

FINDING YOUR TOP 3 STOCKS TO TRADE The less you have on your mind, the more your mind has to focus on what's best. This is where your focus will go once you’re starting to improve and learn to be a better trader. The criteria for finding your top 3 stocks are simple, they are more than $5 and less than $15. The daily volume is more than 2 million and the average volume is 2 million or more. It has a spread of a maximum of $1, all 3 stocks are in separate sectors, respects support and resistance lines, and has clear stage 1, 2, 3,4. The 52week range price is in the middle of the range.

Scan QR code to Access the Stock Market Heat Map:

Once your trading level has increased, you can trade stocks that have a spread from $1-$20. You will have a higher percentage of making more money, but you also have a higher percentage of losing money. You can also look for stocks that have volume in over 10-50 million shares. As you increase the numbers on the criteria, just try your best to trade stocks in your top 3 that are in stage 2 (uptrend). Stock stages are a topic that will be discussed further in the book. When you trade a stage 2 (uptrend) you will have the maximum return on your stock, because of the overall movement. To sum up, use the stock market heat map to find your top 3 stocks and use the criteria listed above to find them.

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MARKET STAGES Everything in our world follows a formula, so does the stock market. It’s called market stages. Understanding market stages will help you maximize your trades on a level that you would think you found a cheat code in the stock market. Look at the following chart and use it as a guide for your top 3 stocks to trade. Make sure you have the chart in a daily time frame.

Stage 1:

Stage 2:

this is the stage the stock goes sideways or consolidates. This is a period where the price bounces from support and resistance. This is a stage where if you can buy the stock at the low point of the support and ride it to the high point of resistance, you can trade the stock at a cheaper price, but the risk is much higher because it could pull back to support. This stage has high risk, so keep that in mind, if you plan on trading a stage 1. You just need to stay in the trade for a shorter amount of time and smaller position sizing.

this is the stage where the stock is on an uptrend. This is a period where the stock price moves up aggressively because the institutional traders are moving the stock in stage 2. This is the stage where you will see the highest profits in the fastest time possible. Stage 2 is the lowest in risk, you can stay in the stock longer and have a bigger position size. Be prepared to ride up big green candles that will most likely break past your resistance levels with ease.

Stage 3:

Stage 4:

this is the stage where the stock goes sideways or consolidates. This stage is similar to stage 1, but the difference is that this stock now when it finishes going sideways, will collapse into a stage 4 downtrend. This is a stage where you can trade it, but the risk is high. If you trade it, you just need to stay in the trade for a shorter amount of time and a smaller position size.

this is the stage where the stock goes on a downtrend. This stage is for shorting (Make money as the stock goes down). You should not be going long during a downtrend or stage 4 collapse. Technically you can still trade the stock going long, but your risk level is extremely high, you must take extremely fast trades, with extremely small position sizing. This is the stage where many traders lose most of their money because it takes discipline and an excellent charting analysis to see what stage you’re in and you shouldn’t trade a stage 4 going long.

To sum up, learn to find stage 2 (Uptrend) stocks and you will have reached a high level of success in your trading. You can still trade stage 1 and 3 stocks but stay away from stage 4 stocks completely unless you’re shorting them.

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RISK MANAGEMENT Life is a risk, you choose the amount of risk you take depending on your risk tolerance. The amount of money you plan on risking on trades will decide your future as a trader. Every trading book will give you the 1% rule, for example, if you trade with $1000 you should only risk $10 and that confuses a lot of people, but that’s the generic answer. Let me keep it simple for you, stick to the routine of trading that you learned in the chapter: Paper Trade vs. Trading with a Small lot. As you trade and get better, increase your share size, when you have a sense of fear and panic when you’re in a trade, size down on it. Once you’ve signed up for my virtual seminar, you will have all the information you need to trade, the only thing remaining is your XP (Experience Points). You will have instances where you can risk more of your account in trading setups that are low risk. For example, you can risk more if the stock is on stage 2 (uptrend). The exact amount or percentage to risk all depends on your risk tolerance. If you follow my strategy and slowly size up from 1 share to whatever number you end up with, it can be 50, 100, 1000 shares, it all depends on how comfortable you are with your position sizing. You can risk more on a stage 2 uptrend and riskless on stages 1 and 3. In stage 4, you should not be trading at all or shorting (Shorting means when the stock goes down you make money) the stock only. You will eventually get to a level where you’re comfortable with getting into a heavier position because you know it's on stage 2 (uptrend), it’s on a strong level of support. Once you get to that level of trading, you need to be disciplined enough to hit sell once it breaks support and that’s where true risk management comes into play. It’s easy to hit sell once the stock goes from support to resistance, but to be able to hit sell once you enter the position and it doesn’t hold on to support, will truly test your discipline and ego. This is what you need to remember, cut your losses early, let your winners run, and break-even if you have to. If you can remember those 3 points, you will be a successful trader.

To sum up, each setup that comes your way decides how many shares you will buy for your position. You go in heavier for stage 2 setups and smaller for stage 1 and 3 setups. Keep your eye on the trend of the stock in the 15 minute time frame.

MENTAL STOP LOSS VS. PHYSICAL STOP LOSS Understand that anything can go wrong in a trade, so plan for the worst-case scenario, always.

Before you take a trade, you have to know your entry, exit, and your stop loss. A stop loss is set up either physically or mentally, just in case the trade doesn’t go the way you want it to so you can cut your trade early so you’re not caught in a massive fall. You can use a mental stop loss, which can be set 1 cent below the strongest level of support or further down from support, depending on your risk tolerance. This way, if the stock breaks support, you can safely get out and lower your risk of losing a lot of money, which is the main reason a lot of traders lose in trading. For example, if your support line is $10.45, you can set your mental stop loss at $10.44 or lower depending on your risk tolerance. You can even set it up at $10.40 to let the stock have enough movement. You can also set up a physical stop loss. This is when you go on your brokerage account and set up the software to physically take you out of the trade because you set it up to do so. If you don’t have the discipline to get out of the trade yourself, this is what you can do. The issue with physical stop loss is that market makers will see your physical stop loss, take you out of the trade and have the stock go up. Think of it as, when you’re playing a game of Uno, your opponents can see all the cards you’re holding, they can use that information against you. That’s exactly what a physical stop-loss can do.

To sum up, always know your stop loss, physical or mental. You need to have your stop loss ready just in case the stock goes against you. Learn to be disciplined and use a mental stop loss instead of a physical. Blue-chip stocks don’t fall aggressively as penny stocks do, so you’re safer.

HALTED STOCKS To be stuck in a trade with no way in or out is the definition of a risky trade. When you’re trading a blue-chip stock, the chances of it being halted is extremely low. You should only worry about penny stocks being halted because of extreme volatility. When a stock gets halted, it is exactly what the word states, it is halted, frozen, stuck in a place where you can not buy it or sell it if you choose to. This occurs due to extreme price movements in the stock, it can be halted for minutes, hours, and sometimes days. This is another reason, on a list of many when trading penny stocks, so keep all this in mind.

Scan QR code to Access halted stocks:

To sum up, circuit breakers in the stock exchange trigger when the stock price moves fast up or down and you are stuck in a trade, when the trade resumes, it could have moved up a few dollars or gone down a few dollars. Use proper risk management if you decide to trade stocks that can be halted.

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FINDING STOCKS TO TRADE FOR THE DAY Going on the hunt to find tickers daily is another level of mental stress that affects your trades. The majority of traders look for new stocks to trade daily. They use stock scanners that are readily available on brokerages such as Webull and Think or swim. You can also find stock scanners on TradingView, StockTwits, and one screener that's widely used is called Finviz. My style of trading focuses more on finding your top 3 stocks and sticking to them. My issue with scanners is, by the time the stock makes a big percentage move and the scanner picks up on it, you usually miss the move. Now there are scanners that you can use to find gappers in pre-market and after-hours, yes, but those are mainly used for penny stocks.

Scan QR code to Access Finviz Scanner: The criteria you can set to use in Finviz to help you if you still decide to use a stock screener:

You can adjust the performance, price, average volume, and pattern in any way you want to suit the exact type of stock you’re looking for. Make sure you also click on charts at the bottom highlighted in blue, this will show you the chart patterns. Once you get the stocks you need, take them and go to tradingview and confirm that the stocks are on an uptrend, stage 2 is preferable to have a high percentage, low-risk trade. To sum up, use a stock scanner to find tickers, use finviz to find them, and follow specific criteria to find the stocks with the best percentage return.

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THE TECHNOLOGY YOU NEED TO TRADE Without the right trading setup, your chances of success decrease. The right tech matters. Before you even decide to start trading, have the right setup so you get the maximum benefit and success in trading. Think of it this way, a teacher needs the right supplies to be able to teach and a doctor needs the right equipment to be a doctor, the same rule applies to you. This is what you’ll need as a trader:

Laptop or Desktop.

1 ultra-widescreen

Fast internet When buying a computer, you can get a laptop or desktop, that’s a preference. You should buy an ultra-wide monitor. The reason it’s better than a regular monitor is that the ultra-wide is 2 screens in one and lets you put up extra charts, so you can find excellent setups early. You will also need fast and reliable wifi. Depends on where you are in the world, but find a provider that is rated as top tier when it comes to speed. You want a fast connection, because you’re trading the market and need the latest stock movement and you are executing fast trades, so your internet speed matters. If you want a setup that is even more productive to you having and catching better trades, do everything I stated above, but get 2 ultra-wide monitors. Now, this isn’t mandatory, but only if you want the perfect setup.

To sum up, the number of monitors you use is important. To be a spider, you must create the perfect web. To be a consistent trader, you must wait for the perfect setup and that is achieved when you focus on 3 tickers in the 1, 5, and 15 minute time frames.

STOCK MARKET HEAT MAP You have many ways to identify dangers in the market, figuring that out will lead to success. A stock market heat map shows you the sectors and the stocks within those sectors. It shows you which sector is doing well (Green) and what sector is doing bad (red). If a sector is red, it will bring down the stocks within that sector and the same rule is applied if the sector is green, it will move the stocks up within that sector. When the market opens at 9:30 am EST, the heat map doesn’t provide any consistent information. You can wait 30 minutes for the heat map to get consistent enough data to help you decide what stock, in what sector you should trade for the day. You want to have stocks in separate sectors, so you can trade them when the sector is green and avoid the sectors that are in the red.

Scan QR code to access the Stock Market Heat map:

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Market Red Day (Shorting the stock or stay away from trading on days like this)

Market Green Day (Perfect day to go long on stocks)

To sum up, use the stock market heat map to see if your sector is green or red for the day. The sector going green will help the stock within that sector go green.

SCALP TRADING WITH HOTKEYS When greed dictates your trades, hotkeys get you in & out fast, so you can control your greed.

Scalp trading requires lightning-fast speed, so using hotkeys is a must. Hotkeys are two buttons that are preset with the number of shares you want to buy and sell and the ticker you’re trading. This allows you to get in and out of a stock, without having to try to go through multiple steps, just to buy and sell a stock. Webull and think or swim brokerages have the hotkey feature.

Webull Hotkeys

To sum up, use hotkeys to trade, they will make your entry & exits on a trade work out more efficiently.

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TRADING JOURNAL To realize the mistakes we make and to learn from them is our true learning experience. Using a trading journal without a doubt will take your trades to another level. For you to truly be a consistent trader, you need to understand what’s causing you to not be consistent.

Scan QR code to access the Free Trading Journal:

The trading journal should be used to record your trades. You need to keep track of your successful trades so you can see what you did right, so you can keep doing that. You also need to keep track of your losing trades, so you can learn from what you did wrong and avoid doing them. The first part of the trading journal is where you enter your trades, the profit/loss will be automatically calculated. Doing this after you’re done trading will seem like an unnecessary part of your day but trust me it will help over time. You see things differently when you’re analyzing them. Think of a coach showing the players how they performed in a game after it was over. Going over what worked and didn’t work.

The second part of the trading journal helps you understand where the candles are relative to the indicators, which is a good way to help you plan out how you should take your trade. You can use this before you even trade. Have it printed out and laminated so you can use it as a checklist to see if you should even take the trade. The mindset and notes area can be changed to fit your criteria. Your mindset before your trade is important, you shouldn’t be trading if you haven’t slept well, didn’t eat, or you’re not even in the right emotions to see the trades. To sum up, use my free trading journal to enhance your trading. Recording your trades after it’s done is a great way to review them, and learn what is leading you to success.

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USING MARKET RESEARCH (NEWS, EARNINGS, FORECAST, IPO) By the time you read the news, it’s already too late to catch the pump. Using the news, earnings, and the forecast is fine to know and understand but they are irrelevant when it comes to my style of trading and trading purely based on technical analysis. Unless you have the Bloomberg terminal or morningstar direct. Both of those are used to access information related to the financial markets before the general population, which then gives you an edge in the markets. If you don’t have those two, then you rely on news sites, such as CNBC, Google News, and others.

Scan QR code to Access MarketWatch

Use marketwatch for any updated news that comes out. But I don’t use it to make my trades or even figure out my entry or exit. It’s good to know what’s happening in the overall market, but that should be the last thing you think about.

On the left side, you see the major indexes you want to keep your eye on, as well as the commodities market, mainly oil and gold. When you see that everything is green, you know the stocks will be bullish. If you see the left side red instead of green, you know it will be a day to either not trade or short the market.

The right side of MarketWatch has the updated news coming in constantly. You don’t have to go hunting for specific news coming in, this area will keep you in the loop of what’s happening. This is the only area of MarketWatch that you should focus on. When you’re trading a stock, keep your eye on when it's having its earnings. The stock could have exceptional or disastrous earnings, more than likely the stock will go down before earnings come out. Use that information to be ready to trade the volatility, but have a smaller position size during earnings. Always practice proper risk management. Understand the time to go heavy or go in light in a trade, earnings should be a light position trade. You can look for the E on the trading chart on TradingView or the number that is towards the right side of the price on Tradingview. You will find many sites that offer stock forecasts. These sites have analysts that look at the fundamentals of the company, such as its profits, losses, and the competitive edge of the product they offer. These sites will have analysts on the site that are professionals and their job is to look at all the fundamentals of a stock and give you their opinion about it. You can use that if you want to gain a better understanding of the stock, but if your trade is purely based on the charts, don’t pay attention to that noise regarding forecasts.

Scan QR code to Access a Company's Stock Forecast:

When it comes to trading IPO’s (Initial public offerings) you should stay away. An IPO is when a private company becomes public and people can buy the shares openly in the stock market. This is usually a time where the early investors cash out and the stock on average falls. Another high-risk factor of trading IPOs is that you don’t have a history of chart data to help you know where the strong levels of support and resistance are.

Scan QR code to Access the IPO Calendar:

To sum up, the news, earnings, forecast, and IPO’s provide more noise than clarity when it comes to trading. The charts should be your only focus.

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Stock Forecast Report

Earnings

IPO

TRADING BASED ON NEWS/EARNINGS VS. TRADING OFF CHARTS Trust what you see and not what you hear from others, news will lie to you, charts won’t. You will find traders that take their trades solely based on the news and then you have traders who trade solely based on the charts. You can find a balance between the two, but don’t ever let the news dictate your trades. For example, during covid-19, the news that came out about debt, lockdowns, businesses shutting down kept people in a constant state of fear. Traders who focused on the news were hesitant to make trades on airlines, cruise, and restaurant stocks mainly because of the fear factor. If you looked at the charts, you’d notice that airlines, cruise, and restaurant stocks after bottoming out, were doing well for great gains. The news will lie to you and you’ll end up getting delayed information that will give you information paralysis. You’ll second guess your trades because of the constant noise of the news. You’ll get conflicting information from different news sources, which tells you one thing and then you’ll read the information that tells you the opposite. The charts show you exactly what you need to know. You will know what’s happening if it’s on stage 2, it goes up, and if it’s on stage 4, you know the stock will go down. To sum up, the charts provide you with everything you need to trade. You can still read the news about your particular stock, but don’t let it dominate your decision-making in your trades.

TAKE NOTES

SUPPORT & RESISTANCE If you can master one skill to excel in trading, let it be support & resistance. The foundations of trading rely on where a stock tends to hold and where it tends to get rejected at a certain price level. These key levels are exactly where you will find the entry and exit of your stock. The level where a stock tends to hold is called support, this is where you want to plan your entry in the stock. The level where a stock tends to get rejected is called resistance, this is where you want to plan your exit. You have strong levels and weak levels of support and resistance. The strongest level of support and resistance is on the daily, 4 hours, and 2-hour time frame. This level has a higher probability that will hold on to support and a higher probability that it will reject at resistance. The weakest levels of support and resistance are in the minute time frames, such as the 1 minute, 5 minute, and 15-minute time frames. Support and resistance lines made on the minute time frames have a low probability that it will hold on at a key level and a low probability that it will get rejected. When you hear traders say, buy the dip! That isn’t a smart move, what you want to do is buy the dip strategically. That means when the stock is falling, wait for it to stop falling and hold on to support on the higher time frames, and start creating a cluster or going sideways. From there, you check the trend, candlestick formations, price action, and indicators to get confirmation to buy.

To sum up, support and resistance lines are the first thing you must do before you start your trading day. Do not ever trade without creating the strongest level of support and resistance lines on the daily chart and then the hourly chart.

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3 LAYER VWAP You decide when to buy and sell, you control the outcome of your trades. The VWAP indicator is a favorite indicator among the trading community. It is used by institutional traders and mutual funds and that is the main reason you should be using it as well. The institutional traders move the market and when they place their orders, they place them at the VWAP. Volume Weighted Average Price is what VWAP stands for and it is the average price of what the stock is trading for during the trading day. The VWAP restarts each day at new levels, so don’t assume just because a stock was above or below the VWAP a few minutes before closing that it will stay the same at market open the next day. It takes a few minutes to get a clear picture of where the stock stands relative to VWAP. When the stock is below the VWAP, the stock is bearish, which means you shouldn’t get in that position unless you’re shorting. Your chances of a high probability trade are much lower if you’re trading below VWAP. When the stock is above the VWAP, the stock is bullish, which means you should take a position in it if you’re going long. Your chances of a high probability trade are much higher if you’re trading above VWAP. VWAP is natural support and resistance. You can use them to guide your trade but that doesn’t mean you shouldn’t make support and resistance lines on your own, they’re just helping you understand if the stock is in bullish or bearish territory. When the stock goes down but holds above VWAP, you can take an entry above VWAP but once it breaks the support level on the VWAP, you must cut your losses immediately. If you ever decide to take a trade below the VWAP, just know that the VWAP will be your resistance level and it’s one of the strongest levels of resistance. You will see the biggest green candles around VWAP and those are the institutional traders, you want to ride the wave with them as much as possible.

You can use the VWAP in the 1, 5, and 15-minute time frames. VWAP isn’t good for trading on the bigger time frames such as the hourly or daily chart. VWAP doesn’t work when it comes to swing trading, use it just for scalp trading. Everything I spoke about above is the middle VWAP, there is also the 3 layer VWAP. This is when you have 3 lines that show another level of support and resistance. You have the upper VWAP, middle VWAP, and lower VWAP. The candles will tend to stay within the 3 layers of VWAP, it will fall at the lower VWAP, move to the middle VWAP, and then hit the upper VWAP. It isn’t always perfect like that, but it tends to stay within those levels.

To sum up, VWAP is natural support and resistance line, use it to guide your trade. Go long when the candle is above the VWAP and go short when the candles are below the VWAP.

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9-20-200 EMA Let your winners run and cut your losers short. Easier said than done. The Exponential Moving Average or known as EMA. This is an indicator that is natural support and resistance. The EMA is a lagging indicator, which means that the information that you see is behind the candles. You have many different EMA’s to choose from and each trader has their preference, no EMA is perfect, see what works for you. The three EMA’s that have shown me the greatest consistency in trading are 9, 20, and 200. The EMA’s are calculated by the average price for the 9 days, 20 days, or 200 days. Prices tend to stay relatively close to the 9 and 20 EMA’s. When the candles are further away from the EMA’s, they’re overextended and with a high probability come right back to the EMA’s. Think of the 9 ema as wood, 20 ema as concrete, and 200 ema as steel. The weakest level of support and resistance levels is the 9 ema, that’s why I call it wood, easy to break. A strong level of support and resistance is the 20 ema, that’s why I call it concrete, hard to break. The strongest level of support is the 200 ema, that’s why I call it steel, extremely hard to break. Always remember that the ema’s are lagging indicators, which means they’re going to be behind the movement of the candles, so don’t rely on them too much. When you’re setting up your ema’s on multiple time frames, don’t use them on the 1 minute time frame because the 1 minute time will give you false signals to buy and sell. You can use the ema’s on the 5-minute time frame, it is a strong buy and sell signal. The 15 minute time frame has the strongest buy and sell signal that you truly want to rely on when using the emas. When mentioning the buy and sell signal, you want to buy or go long when the candles are above all 3 ema’s and you want to sell or go short when the candles are below all 3 emas.

To sum up, rely more on the emas in the 5 and 15-minute time frame, buy or go long when the candles are above the ema’s, and sell or go short when the candles are below the emas.

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MACD Understand who is in control when you’re trading, let the momentum guide you. The Moving Average Convergence Divergence (MACD) is another lagging indicator. It is used to trend trade based on if buyers or sellers are in control. This is one indicator that has many components to it. You want to look at the MACD in the daily, 2 hours, and 15-minute time frame, but focus mainly on the 15-minute time frame when you’re trading. Here are all the components of MACD:

Buyer Line

Seller Line

0 point Histogram

Green/Light Green Bars

Red/Light Red Bars

Steps in Bars

The trend in Buyers and Seller lines

Gaps between buyer and seller lines

Length in edges of bars on 0 point histogram

Buyer and seller line above/below 0 point histogram

1. The buyer line is blue, when that line is above the orange line which is the seller line, that means the buyers are in control and you should go long.

The orange line is the seller line, when that is above the blue line, that means the sellers are in control and you should sell or go short.

The 0 point histogram is the most important part of the MACD. When the buyer and seller line is above the 0 point histogram, the candles will move up more aggressively and you will be able to stay in the trades for much longer. When the buyer and seller line is below the 0 point histogram, expect the candles to fall faster and more aggressively. The green bars on the 0 point histogram show the momentum is on the side of the buyers and it’s strong. The light green means that the momentum is about to shift to the sellers. The red bars show that the sellers are taking control and that you should not be in that trade unless you’re going short. When the red color turns into light red, that means the shift to green is coming. Keep in mind, that none of this is perfect, you have to also keep your eyes on candlestick formation, support, and resistance to get a clear picture of what's happening.

You want to keep your eyes on the steps within the bars on the 0 point histogram, the steps will look like stairs moving up, which means the momentum is shifting to the buyers when you notice the steps even out and then the steps start going down as if you’re walking down the stairs, prepare to exit the trade. This works for when you’re going long on a stock. When you’re shorting the stock, just do the inverse of going long with the steps on the 0 point histogram.

You will see that the buyers and sellers line creates a trend if it’s going up or down. You can draw a trend line exactly how you would create one on the candles or RSI.

You will notice the gaps between the buyer’s and seller’s lines. The gap will get wider meaning if the buyers are in control the price will move higher and will fall slower. When the sellers are in control and the gap gets wider, the price will fall faster and the price going up will move slower. As the gap starts to get smaller, be ready to see who's about to take control, the buyer line or the seller line. When that event takes place, you will see a big jump up if the buyers take over or a big fall if the sellers take control.

Looking at the bars on the 0 point histogram, you will see the length of them getting longer or shorter depending on what direction they’re going in. If the stock is going up, you’ll see the length of the bars slowly moving up, the wider it gets the more the momentum is to the upside. If you see the bars start to even out and the length gets smaller, that means the shift is coming over to the opposite side. This means you should prepare to exit the trade if the candles are close to a level of resistance.

The buyer’s and seller’s lines position on the 0 point histogram is one of the most important parts of the MACD. If the buyers are in control and the line crosses over the 0 point histogram, you’ll see the candles move up more aggressively and their fall will be gentle. When the sellers are in control and the sellers and buyers line goes below the 0 point histogram, you’ll see the stock fall faster and more aggressively and it will barely move up.

To sum up, the MACD is a lagging indicator, once you learn all of its intricacies, you’ll be able to use the MACD to be a more consistent trader. Focus mainly on where the buyer and seller line is relative to the 0 point histogram and you’ll be in a great trade.

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RSI To understand the best time to buy, always wait for the strongest level of support. The Relative Strength Index (RSI) is another lagging indicator that can make you understand the best and worst times to buy a stock. All you need to do with the RSI is see where it is relative to what I call support (oversold, 30), resistance (overbought, 70), and the area where you never want to buy, which I call the danger zone. You want to look at the RSI in the daily, 2 hours, and 15-minute time frame. When you’re trading, stay focused only on the 15 minute time frame. You can also draw trend lines on the RSI, this way you see if the stock is trending down or up, not only on the candles but on the RSI line.

To sum up, the RSI is a power indicator showing when to buy and sell. Always buy close to support and sell at resistance, the 15-minute time frame RSI should be your main focus when trading.

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VOLUME The battle between buyers and sellers is what keeps the market moving. Learn to understand who’s in control when you’re trading.

The volume indicator will be your best friend when it comes to trading. The green and red bars, the number of shares being bought and sold is what you need to focus on. Those big green candles are showing you a lot of buyers are coming into that stock and when you see those big red candles, it means a lot of sellers coming in. When you see those smaller candles, it tells you that there isn’t much volume in them. Your entire trading day depends on millions of shares being traded to move the stock up or down. You don’t want to trade a stock that has hundreds of thousands of shares being bought and sold because that stock will move slowly and won’t get you any real price action. You can have the volume indicator on in every single time frame. You should focus on 2 points of data when using the volume indicator:

The volume bars. They’re showing the number of buyers and sellers.

The volume number. It’s showing you the number of shares being bought and sold.

You will also look at the candlesticks to show you the volume in them is bullish, bearish, or indecisive.

To sum up, The volume indicator is a must when you’re trading. When you’re doing your due diligence, make sure you’re looking at the number of shares that have been coming in and how many green bars are shown if you’re going long.

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TIME & SALES What you see in front of your eyes, is the truth, no manipulation or fake news. Trust it. Time and sales show you all the buyers and sellers in the particular stock you’re trading. It’s an add-on to using the volume indicator. You mainly want to focus on the tens of thousands of shares coming in that will have a high impact on the stock. You’ll see big orders come in at VWAP and around strong levels of support and orders leave when the stock hits strong levels of resistance and goes below VWAP. The breakdown of time and sales:

Time and amount of shares that were bought or sold.

The price paid for the stock.

The number of shares bought or sold. (Green is bought, Red is sold)

The volume analysis isn't information you should focus on, don’t pay attention to it.

To sum up, time and sales is great to use when you’re trading. Have it on your main trading screen, under your hotkeys so you can keep track of where the big orders are coming in and leaving.

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MULTIPLE TIME FRAMES What you see in one-time frame, will look completely different in another. Don’t rely on one alone to decide your trades.

When you’re trading, you want to make sure you’re not just looking at one-time frame. You want to focus on the top-down analysis. You want to start your trading day by looking at the daily time frame, then the 2-hour time frame, then the 15 minute, 5 min and finally the 1 minute. Keep in the back of your mind the bullish or bearish candles and the overall trend on the daily and 2-hour time frame, but no need to have them on your trading screen once you’re actively trading. When you’re trading, you should only have the 1 minute, 5 minutes, and 15-minute time frame for your stock. You want to focus more on the 15-minute time frame trend, candles being bullish and bearish, EMA’s, MACD, RSI, and volume. Then look at the 5minute time frame, where you only have the VWAP, EMA’s, and volume. You want to keep your eye on the trend on the 5-minute time frame as well as the 15 minutes. When the trend on the 15 minutes and 5 minutes both are strong uptrends, you have nothing to fear when you’re in the trade, and the one-minute time frame has a few red candles. When you’re on the 1-minute time frame, only have VWAP and volume indicator active. The 1 minute time frame has a lot of noise that scares new traders with green and red candles that are going up and down and that doesn’t give an accurate representation of the over trend of the stock. Use the one minute to see the levels where the candles keep holding (Support) or keep hitting (resistance) and look at how the 5 and 15-minute time frames look to give you confirmation on the trade. Main screen: Stock 1 min & 5 min time frame, hotkeys & time & sales:

Second Screen: SPY 1 min, 5 min & 15-minute time frame

Third Screen: Top 3 tickers & 15-minute time frame for all 3.

To sum up, make sure to use the 1, 5, 15-minute time frames actively when you’re trading. Look at the daily and 2-hour time frame to get an overview of the trends, candlesticks being bullish or bearish, and creating your support/resistance.

PRE-MARKET & POST-MARKET Pre-market & post-market is the wild wild west, stay away or you’ll hurt your account. What happens in pre-market (4:00- 9:30 am est) and post-hours (4:00-8:00 pm est) will help determine how your trades will go for that morning. If the stock gets pumped (Gap up) heavily to the upside, it has a high chance of coming down at the market open because people are taking their profits and closing their positions. If the stock falls drastically (Gap down) during pre-market, there might be a high chance of it going back up when market opens because people will buy the dip and cause the price to go up. You will also see massive pumps happen in the post-market and that is usually due to news that comes out once the market closes at 4 pm est. You will want to get in on those trades but you shouldn’t because the chance of you getting the entry you want will most likely not get executed because you won’t be able to buy at market orders, only limit buys. Even if you were to get in those pre-market or post-market trades, it would be hard to get out of them because of the issue of liquidity (how fast you can buy and sell a stock without affecting the price too much). To sum up, you will see stocks that gap up or down drastically during pre-market and post-market, create support and resistance at those levels, and be ready to trade them when the market opens. Don’t trade stocks during pre-market and after-hours, you will either not be able to buy the stock or be able to sell it, not worth the risk.

TAKE NOTES

TREND LINES Understand the direction of the candles and your chances of success are limitless. Trend lines are just another form of support and resistance, you use them the same way. Support and resistance lines are horizontal and trend lines are slanted or oblique lines, they form the same purpose, the lines under the candles are support and the lines above the candles are resistance. You can make trend lines on the daily, hourly, 15, 5, and 1-minute time frames, but that would have too many lines. You can make the lines on the daily/hourly and see where the trend is going, either up, down, or sideways and then delete it and just keep the trend on the daily in the back of your mind. You ultimately want the trend line on the 15 minute time frame to show you the clearest trend. When you make trend lines, you want them to touch a minimum of 3 candles or wicks. The more they touch, the stronger the trend will be. You can make the trend line below the candles, which shows that it’s on an uptrend, or above the candles which shows that it’s on a downtrend. You will ride the trend up (going long) or down (going short) as long as the candles are above or below the trend line, once the candle breaks the trend line, exit the trade. The trend line breaking is your signal that the direction of the trend has shifted.

To sum up, create trend lines on the 15 minute time frame to guide your trades. The trend line needs to touch a minimum of 3 wicks or the body of the candles to get confirmation on the trend. Scan QR code to Watch the Video Breaking it Down:

PRICE ACTION To trade without indicators is the purest and most productive style of trading. Trading price action means not relying on any indicators, just using support/resistance, trend lines, and the movement of the candles. This style of trading is the one with the least amount of indecision. You’re not overwhelmed by trading price action because you’re not looking at the EMA’s, VWAP, MACD, and RSI. All you do with price action is see where the candles are relative to support/resistance, see the trend of the stock and you watch the volume coming in, and take your trade as the stock goes up. When the stock breaks the support line, you exit the trade to whatever price you had your stop loss. It’s that simple, but it takes time to get to this level of trader. Trading straight price action is perfectly fine, but there is nothing wrong with using indicators. As you become a better trader, you will use fewer indicators. The indicators are like training wheels, as you get better, you will remove them until you find the perfect set of indicators that work perfectly for you. To sum up, trading price action comes with time. You will eventually be able to trade with no indicators or the least amount of them. Trading with just support/resistance, trend lines, and the movement of candles is all you truly need.

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FINDING THE BEST ENTRY & EXIT Finding the exact entry you want is rare, learning to accept that is a step closer to consistency.

FINDING THE BEST ENTRY USING SUPPORT & RESISTANCE That entry you want should be as close to the daily support (buy signal) line as possible because that is where you have the strongest level where the candles will hold and bounce off. Your exit should be as close to the daily resistance line (sell signal) as possible because that is where you have the strongest level where the candles will get rejected. If the candles are not close to the daily support & resistance lines, use the support & resistance lines made on the hourly time frame to help guide your entry & exit. You can also use the 15 minute time frame to help you create support and resistance lines while you’re in the middle of a trade, but keep in mind that support & resistance lines made on the minutes time frame are weaker and have a higher chance of failing on you. Your stop loss is always below the key level of support, a few cents down, or whatever level you feel comfortable with.

FINDING THE BEST ENTRY USING VWAP

You want to find your entry above the VWAP. When it comes to time frames, you can use the 1, 5, and 15-minute time frames, the VWAP line is the same in all time frames. Your exit will be whenever the candles start going sideways or start to hit a resistance level (sell signal). Your stop loss is below VWAP.

FIND THE BEST ENTRY USING THE EMA’S

You want your entry to always be above all 3 EMA’s (9,20,200). Once the candle closes above the 20 ema and it’s a green bullish candle, you can take the entry. The 20 ema is a stronger level of support than the 9 ema, so use that as your entry. Do not use the EMA’s on the 1-minute time frame, use the 5 minute time frame to make your entry. You should always have the candles be above the 200 ema when taking a trade but focus more on the 20 ema on the 5 minutes and 15 minutes. You exit the trade when it hits a level of resistance you’ve created prior or the candles start going sideways.

FIND THE BEST ENTRY USING TREND LINES You want to wait for 3 candles to form in the 5 minute time frame to give you the trend going up or down. You’ll create the up trend line under the candles as it moves up and you will ride the 3rd or 4th candle up until the trend line is broken and then you will exit the trade. If the candles are on a downtrend and you’re shorting, you wait for 3 candles to form that are going down and you take your short on the 3rd or 4th candle.

To sum up, you have many ways to take your entry when you’re trading, always use support/resistance lines and trend lines to guide your trade, and then use the VWAP, EMA’s to execute your entry. The indicators are lagging, always keep that in mind.

SHORTING Candles fall faster than they go up, learn to maximize your profits going long and short. Shorting is the opposite of going long, you make money when the candles go down. Instead of buying the stock, you will be clicking on the sell button or short, depending on your brokerage. You are borrowing shares from the brokerage account to buy them back later from them. The biggest issue with shorting is that you won’t always find enough shares available to short. When you’re trading and shorting a stock, you won’t have to worry about fees unless you keep that short open overnight, then you’ll have to pay a fee on it. If the stock is HTB (Hard to Borrow), the fee on it will be much higher. All your planning and learning you’ve done to understand support/resistance, trend lines, VWAP, EMA’s, and MACD are now used in shorting but do the inverse of what you’ve learned. For example:

Short when the candle is at resistance and sell at support.

Short when the candle is below VWAP.

Short when the candle is below the 9,20 and 200 ema.

Short when the sellers are in control of the MACD and momentum has shifted to red.

Short when RSI line hits resistance (70) and exit at support (30) on RSI.

Short when the volume is red (Sellers are getting rid of shares)

Short when the candles are below the trend line and the trend is overall down. Use the SPY as your guide on shorting. Use the same principles mentioned above on the SPY and it’ll help your short trade have a higher percentage of success.

To sum up, learn to be consistent going long first and then short because you’ll have a better understanding of how everything works together, such as support/resistance, VWAP, EMA’s, MACD, RSI, and trend lines.

UNDERSTANDING THE SPY Having an edge on the market will help you get an idea of where your trade will go. The SPY is the S&P 500, which is an ETF (Exchange Trade Fund). It has the top 500 companies listed in it. Use the SPY as an indicator that will give you the overall health of the stock market. When the SPY goes up, the majority of the blue chips go up. When the SPY goes down, the majority of the blue chips go down. Use the SPY as a crystal ball, help it give you higher probability trades. When you start trading, do the same top-down analysis on the SPY that you would do to your stocks, which is:

Support & Resistance Lines

Trend Lines

Using the Daily, 2 hours, 15, 5, 1 Minute Time Frames

Using the MACD, RSI, EMA’s, VWAP You should have a second monitor, mainly ultra-wide to view the SPY as you actively trade your stock on your main monitor. When you find your stock to trade, you want to make sure it moves along with the SPY. You do this by seeing how your stock performed for a few days and looking at the spy and how it performed similarly. To sum up, using the SPY is mandatory in trading. It will help you know a few seconds before how your stock will move if it’s connected to the SPY. When the SPY trends up, your stock has a high probability of trending up as well. Keep your eye on the 15minute time frame when trading the SPY. Scan QR code to Watch the Video Breaking it Down:

FUTURES MARKET What happens during market close will help you predict what happens at market open. The future market, ticker: ES1! Is the same at the SPY, but it’s open 24/7. The main reason you should look at the SPY futures is to see how it will affect the market open. Any major news that comes out after 8 pm est or the weekend will be reflected on the SPY futures, such as a terrorist attack, war, contagious virus, or news from market influential individuals. You can use the movements on the SPY futures to see how the SPY will perform at 4 am est. If there is a big drop while the SPY is closed, it will reflect once the market is open. You will do the same technical analysis for the SPY futures as you would for your stock or SPY, such as:

Support & Resistance Lines

Trend Lines

Using the Daily, 2 hours, 15 Minute Time Frame

Using the MACD, RSI, EMA’s, VWAP Once the market is open, you won’t have to focus on the SPY futures anymore, you can go back to looking at the SPY. To sum up, the SPY futures are great to analyze the market when it’s closed. It can help you gauge how the market will be at 4 am est (Pre-market).

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CANDLESTICK FORMATION HEIKIN-ASHI Let the candles guide your trades, it’s your first true sign of where the stock will go. Understanding the candles and how the wicks and body shape play a part in showing you what will happen during your trade will make your trading consistent. Using HeikinAshi candles to trade will help with your trading, it clearly shows the trend of the stock and helps get rid of all the unnecessary noise of regular candles. When you use Heikin-Ashi candles you want to look at:

The color of the candle.

If the body of the candle is green and has a wick on the top it is bullish.

If the body of the candle is red and has a wick on the bottom, it is bearish.

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If the body of the candle has wicks on the top and bottom, it is weak.

When the body of the candle is bigger, there is strength in it.

When the body of the candle becomes smaller, there is weakness in it.

When you’re going to start your trading day, you want to use regular candles to do your top-down analysis, especially support and resistance lines. Heikin-Ashi candles don’t show candles that have gapped up or down and you want to make sure you create your lines at the right levels.

To sum up, using Heikin-Ashi candles are a must when you’re trading, it cleans up all the unnecessary noise the regular candles show you. It will show you the trend of the candles clearly and make trading consistent.

CANDLESTICK FORMATION KNOCK KNOCK BOOM The candles move in specific patterns and there are so many of them but what you truly need to look at is the knock, knock boom. Think of it this way, when you go to someone’s house, you knock gently on their door, you knock a little harder the second time and when they still don’t answer, you hit that door much harder. That’s exactly how the knock, knock, boom works. The candle will hit a level of resistance two times and on the third time, it breaks through with high probability. The top-down analysis works the same way with the knock, knock boom. The daily time frame candles are the strongest candle strength, then hourly. The strong levels are the 15 minute and 5minute time frame, the weakest level is the 1 minute time frame. You also have the reverse knock, knock boom. The candles do the same routine but inverted, instead of the candles hitting resistance, they hit support, which you can use to short.

To sum up, keep your eyes on key support and resistance levels and always remember to take profits at resistance. Reenter when the candles start going sideways at key levels and it’s holding on to support. Be prepared to ride the boom, but a safer entry will always be to wait for the retest of the resistance, which comes support when the candles hold above it.

CANDLESTICK FORMATION HOOK REVERSAL PATTERN (SIDESTEP GREEN CANDLE) The hook reversal pattern or sidestep green candle is a great way for you to understand when to enter a stock. The sidestep green candle will be the candle that holds above the support line and a few cents above the previous candle after it's done falling. The side step green candle will be a bullish green candle, with little to no bottom wick formed. The daily time frame candles are the strongest candle strength, then hourly. The top-down analysis works the same way with the hook reversal pattern. The daily time frame candles are the strongest candle strength, then hourly. The strong levels are the 15 minute and 5-minute time frame, the weakest level is the 1 minute time frame.

To sum up, reversal patterns are great to make money when the candles have fallen drastically. Make sure you take advantage of seeing where the candles hold and you’re ready to take action and ride the trend back up. Keep your eyes on the dead cat bounce as well, when the candles fall drastically, they usually bounce up and fall again, so always have a stop loss and take profits at key levels.

CANDLESTICK FORMATION XYZ STAIRCASE PATTERN The XYZ staircase pattern is a way for you to see the trend of the candles moving up, down or sideways. Just imagine that you’re walking up the stairs, which means that the candles are going up and you want to stay in that position and trade it long. When you’re walking on a straight path, not walking up or down the stairs, you want to get out of the trade because the candles are consolidating or going sideways and the risk is high on the trade going down on you. When you’re walking down the stairs, which means that the candles are going down, you want to stay out of that position, unless you’re going short on the trade.

To sum up, think of climbing the stairs when you’re going long and when you stop climbing the stairs, sell your position. Always wait to start climbing the stairs before you ever enter a position. XYZ is the staircase up pattern and ZYX is the staircase down pattern.

TRADING CHECKLIST What you plan before you take a trade will dictate how your entire trading day will go. You have two options when it comes to setting up your trading day, either do it the night before or wake up an hour before the market opens and start it. Use the trading journal as your guide. Here is your morning routine:

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Daily time frame market stage/trend. Make daily time frame support & resistance lines. (Regular Candles) Check MACD, RSI, & 9, 20, 200 EMA on the daily time frame. (Bullish/Bearish) 2-hour time frame trend. 2-hour time frame support & resistance lines if needed. (Regular Candles) Check MACD, RSI, & 9, 20, 200 EMA on the 2-hour time frame. (Bullish/Bearish) 15-minute time frame trend. (Make trend line) Check MACD, RSI, & 9, 20, 200 EMA on the 15-minute time frame. (Bullish/Bearish) Set up your screen to have 1, 5, & 15-minute time frames & Heikin Ashi candles on. Your entry at support, your exit at resistance and your stop-loss is below support. Do the same routine for the SPY ticker. Make sure you do this routine for your top 3 tickers. You want to pick the ticker that is closest to the support line on the daily timeframe and is trending up. This should all be done before 9:30 am est, so you have plenty of time to prepare. Keep your eye on the price action that happens during post-market and pre-market, adjust your support and resistance lines accordingly. To sum up, you need to be prepared to trade before the market opens, follow the checklist and never deviate from not following it. You have a lot of data points on your screen, make sure you understand the significance of all of them to have a successful trading day.

HOW TO BE A CONSISTENT TRADER What you do early on, will help you enhance your trading as time progresses. As you finish reading this book, keep in mind it was designed to not be read by itself, it was designed specifically to be read alongside the 4-day virtual seminar. You must understand that before you can make consistent cash flow, you need to understand what it takes to be consistent. Just like in real estate, you will deal with issues with tenants, leaks, and overall problems that come with owning your home, but in the long run, it's worth it because of the cash flow that comes in each month. You deal with the problems that come with trading, but instead of giving up on trading, you figure out the root problem you’re having. You won’t give up on real estate investing or your 9-5 job just because you’re having issues with your tenants or colleagues, would you? Here are ways to figure out the root of your trading issues, if you feel you’re still not consistent:

Did you take the 4-day virtual seminar and have a fully engaged learning experience? If not, go back and watch the recordings in the private seminar portal. True learning occurs when you ask questions and it answers any issue you might be having.

Did you watch my free trading course that gives you an overview of how to be a consistent trader? If not, go watch it, again and again until the concepts fully set in.

Start recording your trades and make sure you talk out loud about what you’re thinking and doing. For you to truly understand why you’re not consistent, you must record yourself using a screen recording and watch back your trades.

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You must journal your trades no matter how boring it might seem. Just like owning a business, you must keep track of your finances and also understand why you’re making or losing money. Writing down what led you to have a successful day will help you make those same trades to keep you on your path to consistency, also writing down what led you to have a losing day, will help you learn from those mistakes, so you don’t make them again. Scan QR code to Access Screen Record Site Loom:

Are you in a signals group chat? Group chats that give signals are the root cause of many traders' demise. You see new tickers being called by the minute as they show up on scanners and you try to trade in each one and you keep losing on the trades. You might hit a few good ones, but overall, you don’t find any consistency. You have traders in the group chats constantly showing you how much they’re making and that makes you feel less of a trader and more of a failure. You must distance yourself from signals group chats, you’re the only one you can rely on when it comes to knowing the ticker you’re trading and having a good understanding of that stock's support and resistance, trend, and overall chart patterns.

Are you following influencers that make you feel you’re having FOMO (Fear Of Missing Out)? You must understand that each person is on their journey to being a consistent trader. If you consume their content and it isn’t helping you learn how to trade or help you with your mindset, you should not consume that content. Constantly seeing influencers make insane amounts of money, isn’t going to help or motivate you, it will cause nothing but FOMO. You know for a fact that the market produces money for those that can learn to tap into it and have some of that wealth for themselves, so only rely on those that provide a learning environment.

You don’t put in enough time to learn your craft. Just like any job, you have to learn everything about it before you can perform. If you take trading as something you do for fun and don’t analyze your trades after you take them, you will not be consistent. You have to dedicate time and energy to trading until you can fully understand what you’re doing.

Do your friends and family put you down about trading stocks and crypto? Who you surround yourself with and listen to will dictate your mindset. You need to learn to trade quietly and away from the nonbelievers, the negative individuals, and those who think it’s all a scam. The market has been producing wealth for generations and it will continue to produce wealth with or without you. Work in silence, build up your skills in trading, and then show what you've achieved, but don’t say too much of what you’ve made because they hate you receive will be immense. People, in general, don’t want others doing better than them, so stay silent in everything you do.

All you can think about is the amount of money you can make trading options. Options are the fastest way to lose all your money if you don’t know what you’re doing. If you don’t learn consistency through trading shares, you will not make money with options. With options, you have many variables that affect how much you can make. You have a higher learning curve when it comes to options. Don’t let the percentage returns on options make you lose track of the fact that you need to learn consistency with trading shares and then you can trade options or even penny stocks if you want.

To sum up, make learning your number one priority. You have so much information to absorb and you’re in a rush to do it all now. Stay focused on what you know to be the truth and that is the market prints infinite amounts of money and opportunities. Understand that it takes time to be consistent. You want to make all this money now, but you haven’t even taken $1000 and turned it into $2000. You want to achieve a level of success that you feel you deserve. Take things slowly, the market rewards those that are patient.

TAKE NOTES

CRYPTO TRADING 101 What you plan before you take a trade will dictate how your entire trading day will go. Crypto is the future of currency, just as gold was the currency of our ancestors and fiat currency is in our present time. If you don’t believe in cryptocurrency as an investment, that’s fine because there is money to be made trading cryptocurrency. Crypto has coins that move hundreds to thousands of dollars, such as bitcoin and Ethereum. Everything you’ve learned in sections: Introduction, Beginner Level Trader, Intermediate Level Trader, and Professional Level Trader, all applies to cryptocurrency trading or investing, all you need to do is adjust a few things, which is explained below. Here is everything you need to focus on crypto trading/investing that is already mentioned in the book that is adjusted here:

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Trade crypto at any time, it’s open 24/7. Use tradingview to do the same charting. Use Coinbase Pro to trade, lower fees. Start with any amount, no PDT rule. Trade penny crypto that follows clear trends, not just pumps and dumps. Focus only on 3 main crypto coins that move well. (MATIC,ETH,FTM) Use support/resistance (Daily/2hour timeframe) Use MACD, RSI, Volume, Trend Lines. Use Bitcoin, just like you’d use the SPY. Bitcoin moves the market. Entry & exits are done the same way as stocks are. To sum up, cryptocurrency is another tool you can use to trade/invest to make money, even if you don’t believe in it. It follows the same technical analysis that stock trading/investing follows, just use the higher time frames to guide your trades.

KEY VOCABULARY 01 02 03 04 05 06 07

Bullish: Candles moving up.

08 09 10 11

Stage 2: Candles move in an uptrend.

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Bluechip: Company that is well established, stable.

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Margin Account: Borrowing money from the brokerage to trade.

Bearish: Candles moving down. Long: Making money when the price goes up. Short: Making money when the price goes down. Support: Price where candle holds at specific price point. Resistance: Price where candle touches price gets rejected. Stage 1: Candles move sideways.

Stage 3: Candles move sideways. Stage 4: Candles move in a downtrend. FOMO: Fear Of Missing Out.

Penny Stock: highly volatile stock that doesn’t follow patterns. Paper Trade: trading the real stock market with fake money. Cash Account: Using only your money to trade the market.

Overtrading: Taking more than 3 trades a day Risk Management: Amount of money you’re willing to risk on a trade and lose. Stop Loss: Price that you exit your trade if support is broken. Halted Stock: Stock stopped from trading for a specific time due to immense volatility.

KEY VOCABULARY 21 11

Heat Map: Shows what stocks are negative or positive for the trading day.

23 24 25

Earnings: How much a company makes during a specific time period.

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VWAP: Natural support & resistance line.

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Volume: Shares bought and sold.

34 35

34.Post-markert: 4:00pm - 8pm est market trading hours.

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Price Action: Trading with only support, resistance, trend lines and candle movements.

Heikin-Ashi: Candlesticks that show clear trends, with no gaps.

Hotkeys: Buy and sell buttons that help you get in and out of a trade instantly.

Forecast: What analysts think the stock will do in the future. IPO: When a private company sells shares of stock to the public for the first time.

EMA: Natural support & resistance line. MACD: Trend-following momentum indicator. RSI: Momentum indicator that tells you if a stock is at support (30) or resistance (70).

Time & Sales: Shows time, date and shares bought and sold. Time Frames: Looking at the candles on the weekly, daily, hourly or minutes chart. Pre-market: 4:00am - 9:30am est market trading hours.

35.Trend Lines: Oblique support and resistance lines.

Shorting: Making money when the candles go down. SPY: 500 top companies on the S&P 500 index. Futures: Market that is 24/7.

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