A gorgeous overview of the entire Real Life Trading Beginner Series: Video #5

What's going on? Folks and friends from around the entire world, I hope you are doing amazing. Isaac says hello from Miami. Michael says, hey, Jeremy. Hey, Michael. Chris says, what's up, folks? Hello. Ali's here. Tanya says, we gotta love that energetic welcome, Tony. I appreciate that, man. Phenomenal. My friends, we have had over 1100 people register for this webinar and that is really exciting news to me. So for all those who are here, thank you for being here live. If you're watching this recorded version, thank you for watching the recorded version. And just in general, I thank you all for being here and making memories and magic happen with me. And for me, our mission is to enrich lives. We do that by educating the world on how to profitably, safely and consistently trade the markets. This is what we've done so far. It might not feel like it, but we have already covered so much going from module one all the way to Module five. Beautiful. Really exciting. Gorgeous. And yeah, it's here and it's happening. Really good stuff. We're going to be doing a recap. We're going to be doing some Q and A. I'm going to walk you through a few things. So if you have questions, this is the class to ask those questions in. There are a lot of you here live right now. So for those who are here live, thank you. And for those who are watching this recording from wherever you are in the world and whatever time zone you're watching it in, thank you. Go ahead and throw in your cities. Where is everyone from? Just so I know, Cabri is starting it off, saying he's in New York City. Charles is Miami. Emilio is in Miami as well. Oh, there you go, Emilio. So you got a buddy, you and Charles. Scott's an Indy. Helen is from Sydney. We got. Mark is from Oklahoma. Shirley is from Okeechobee. Nice, Shirley. Nick is in Nashville, Tennessee. Welcome, Nick. I hope you know we're probably like hundreds of feet from each other. Hope we get to hang out one day. Mark says he's from Fort Worth, Texas. We got another Mark from Charleston. Man, this is good. Look at everyone all across the world. We got someone from Saskatchewan, Canada. I love it. Well, thank you for being here, folks. It's gonna be great. And here we go. Module one, we discussed what is a stock. We talked about publicly traded companies. We also discussed shares, equities, dividends, investing versus trading, and different types of trading, specifically swing trading and day trading. True or false, ladies and gentlemen? Trading and investing are two different things. All right, you are all correct. That is a true statement. Should you at some point, at least attempt to do all of them? I would argue yes, at least investing. Everyone here has to invest in something. That's how you make a lot of money. You need to invest. It's smart. All right, next we have some examples. We talked about Visa. We talked about McDonald's. We talked about Shopify. We discussed if you had bought some visa back in 2009, it grew over 1,000% in that 11 years. We discussed McDonald's growing over 200% and in that 10 years, not including dividends. And we also talked about Shopify growing 720% in three years, which means a $2,000 investment would be worth over $14,000. So if you had invested in all three, here's a little bit about what that would have looked like. Right? McDonald's 2000 became four. 2000 became 14,000. On Shopify and Visa, you had a whopping 2000 become 22,000. And that's just if you stopped, if you didn't invest any other dime or any other money or didn't reinvest dividends or anything like that, that's just kind of bare bones, basic math. It's amazing. It's really, really. I think it's really good. So here's a question that I have for each and every one of you. I got this question a lot through the program. Do you have any interest in seeing three stock picks that I love so that $6,000 could become. Who knows? Yeah. Getting some? Absolutely. All right, I can do that. I can walk through three stock picks. Now. I'm not going to give you ones that are super, super aggressive. I'm gonna give you ones that make a lot of sense to me, that visually make a lot of sense, that mathematically make a lot of sense, that fundamentally make sense. I know how both companies, all three companies make money. I'm very, very familiar with all that process. So we're going to do that. One other thing that a lot of you asked me during the presentations and in the emails in our YouTube channels. They just want to get a little bit more information on joining Real Life Trading. Remember, it is entirely free to access Real Life Trading education. Right. You're here, didn't pay a dime. You can get all kinds of great stuff at Real Life Trading. So here's what I would do. Use this link right here. Matt will post the link in the chat pane, but if you're watching this, you can go to your web browser and you can type in that chat pane. Or you can click on the link that's in the webpage or the workbooks or emails. But go ahead and create a free Real Life trading account. So you can go to reallifetrain.com and click this little button that says create account. So Matt has posted those links in the chat pane. And if you do that, what we're gonna do is we're gonna give you right now a free trade journal as so that you can use. And we're also gonna give you a swing, a free swing trading plan. So if you didn't take the time to write the down, write the one down that we talked about recently, you can get all that stuff now. It's already given to you. That's pretty handy. Dandy. So if you log in, this is what my dashboard looks like. So click two, all you have to do is come down there and click on that. And that's brought to you by Matt DeLonge, according to to my records. And also, Matt, thank you for helping me with the slides tonight. Matt built every slide that you see here tonight because Matt DeLonge, again, like I mentioned the other day, has 400 hours a day when most people only have 24. So thank you, Matt. This is what your dashboard will look like, my friends. So every one of you should have access to this dashboard. Mark says, I have a dashboard, but it's with a temporary password. That's okay, so long as you can log into your password. That's fine. You can reset and update your password anytime you want. So Cabria says link for the journal. Just go ahead. It is right here, Cabria. All you have to do is log into the website. That's it. Login. Get your free trade journal. It is right there, reallifetrain.com where you can click the link that is in the chat pane for those who are here live and get checkout. And again, as we've mentioned, yes, Real Life Trading, we do have some premium courses. You by no means need to go through the premium courses. You're welcome to if you want. There's some great premium courses out there. But this one is entirely free. This was entirely free. This one's entirely free. This one's entirely free. All of this is entirely free. You got some other. I mean, look at rl kids. So I got videos just for the young people, people in the world. RLT day trading plan. That's also free for anyone who wants a day trade. This is a premium product. This is premium product. So there's all kinds of really cool stuff. Check out the dashboard. This is something that not many companies have. It took a lot of time and a lot of resources to build. I'm really proud of it and I hope you all get access to checking that out. So those are your icons to click and download and make magic that way. All right, if anyone does want to join us at any point in time for any particular reason, I'm going to be sharing with you three stock picks in just a few seconds. But if you want to see me progress, see you progress, see us talk through some things, you're more than welcome to do that. Visit real life training.com at any point in time and click on live trading. Live trading is where you can get access to see me trade the markets in real time every single day. So if you want to do that, there are costs associated with that. But you're more than welcome to at any point in time pop into any of the programs. This one is. The one that most of you would likely be best suited for is the afternoon swing trading room. The afternoon swing trading room. I record it, I email it out every single day. We do stock picks very frequently. We had one stock pick that just yesterday on ticker symbol TNK had a perfect hammer candle and we already had a few traders make 3, 400 bucks in one day trading that one stock. 199 bucks a month. I record everything. This is the day trading room for those who want to day trade. If you are really excited about trading, you're gonna be doing one of these three things at some point. So I just want to make sure that you know and you're familiar on how this process works. This is the next step. At some point. Doesn't have to be right now, but just in the future if you like the way I teach on slide decks. Imagine me teaching with the markets open when you're able to press the buttons and extract cash flow from the market. Pretty cool stuff. So here's some companies that I love a lot right now. This can change. But these are three companies you asked for. You all said you wanted my stock picks, so here they go. They are typed in and this is it. GoDaddy, Salesforce and Wix. These are three companies that I'm a big fan of. Presently. All three of those companies have really nice reoccurring revenue. All three of those companies are somewhat software as a service based. All three of those companies are scalable and growable. All three of those companies have massive room to grow. All three of those companies are relatively new on the stock market and I know how all three of those companies make money and I use their products relatively frequently. The website that we use is built on Wix. GoDaddy is, has a lot of my domains and Salesforce, I mean Salesforce is a great product that eventually will buy out and use other CRMs and contact relationship managers. We have a contact relationship manager but it's not Salesforce specifically, but it might be owned by Salesforce. I don't even know. But these are three companies that I like a lot and they're really not massively, they're not massively overly priced in my opinion. GoDaddy's the cheapest, followed by Salesforce, followed by Wix I believe. Or it might be Wix might be number two now depending on the volatility of today. But I like all three of these companies. They are good companies, they are good growth companies. They do have very nice fundamentals and you guys all asked about it. So there they are. There's some three that you can do some research into. You can pop into them, consider them and if you wanted to, you could buy one share of Wix, one share of CRM and one share of GoDaddy every month for the next six years. And then six years from now you'll come back to me and go, hey man, thanks, that was really nice. Scott says supposedly Salesforce was bought by Google. I don't think so. It's possible. I did not read that anywhere to my knowledge they might have a stake in it of some magnitude, but I don't believe Salesforce is owned by Google, although that would be really, really cool. And if it is, it wouldn't massively shock me. But I did not know. I don't think that's massively accurate. So it's possible it could be something that's in the works and that would be really huge. Cabria says do any of them pay dividends? No, they do not. These are early newer growth companies. So these are not dividend paying companies. These are ones that have the ability and the propensity to grow 2, 3, 400% return in the next five years. Most dividend companies aren't going to be able to do that. Good questions. Any other questions while we're here? Again, you guys want three stock picks? Here they are. They're right in front of you. I'll pause here for a moment. Does anyone have any questions about rlt, Any of the benefits that go along with it with joining at some point in time if you want to do this? Donner says trade or Invest in them. Any of the three you can trade or invest. I personally think these three are great investments. Long term trading them is also very fun. So wix, I love trading some wicks Salesforce. I will absolutely be making hopefully some money on Salesforce next week because there's some really good chart patterns on it and godaddy is good for both. So they're both very tradable and very investable. Nice. Okay, any other questions, team, before we move on to the next slide or if you get 15 ones into the chat panel to move on to the next slide. Mark says that's exciting. I think so as well. There's the 15 ones and we're moving on charting software. As we also discussed charting softwares, this is the one that I really like using especially for traders who are on the newer side because. Because it has some great free trial softwares. It has really, really useful applications. I know the company, I know the owners personally, I know the developers personally. And they're gonna be launching some candlestick patterns that I initiated and kind of helped with relatively soon. I have a trader saying, don't you have to pay to use trendspider.com youm eventually have to pay to use trendspider.com but it's like $20 a month. It's not very pricey. Obviously, again, you don't have to use them. I'm just letting you know that this is some softwares that I use. All of these have a payment associated with them. So one of those things where at some point you're gonna have to pay money to do something. Someone once told me that. I thought that was very good advice. At some point you're gonna have to pay money to do something. So yeah, I do like these. And you know, one good trade can pay for an entire year of any of these three platforms. Emilio says, what kind of hotkeys do you use in your trading platforms, if any? I don't. Good question. Anything else? You guys good? All right, awesome. So we talked about charting software. We also talked about some evaluation steps. Right. If you're looking at a chart, you want to make sure you look at where you want to get in, why you want to get in. You want to draw your support resistance lines. You want to create an idea of where, when and why it's going to happen. You want to identify clearly the trends. Clearly. So that is kind of what I would like you all to do is just walk through a lot of practice. We also discussed candlesticks. Candlesticks. We discussed them. We got about 2% into my candlestick knowledge during this particular program. If you want 99% of Newsom candlestick knowledge, get into the intermediate program. For those of you who are here live, that's coming up in the next month and that will absolutely blow off your socks. If you are really excited you want to do it now, just go ahead and after this class is over, pop into the intermediate class and start watching those as well. But I'm going to get real down and dirty on candlesticks of all kinds. One thing that I did inadvertently that I wasn't massively happy with is the last intermediate program. I only focused on US Equities. This time I'm going to be doing everything Caesar says. How do you set the OCO order, Caesar? It's a great question. It depends on the broker and the actual functionality. If. What broker are you using, Caesar? Caesar says I'm using thinkorswim. All right, you can email me Cesar, if you would like to and I'll send you a video on how to set that up. And yeah, it's really easy. Or you can just Google it, YouTube it. There's countless videos on their website on how to do it. It's really, really easy to use. But if you want to email me, I can also send you a video as well. Yep. My email address, of course. Jeremy with2r'seallifetrading.com it's amazing how quickly we talked about candlesticks, but we did. We covered some information and we talked about the hammer. Who talked about the hammer? Candle. You've learned a lot about the hammer. We've discussed the sentiment. We talked about how the sentiment of the candle opens at a particular price and at some point during the day, trades all the way down, down, down, down, down, down, down, down, down. And then finds massive amounts of buying pressure. Buyers drive the stock all the way up and then it closes. And that has massive buying pressure that can oftentimes indicate a reversal or sometimes even if you want to just look at a really fast, aggressive trade, there's plenty of speed to be had on a good hammer candle entering here and maybe just playing a super fast pop. There's always ways that you can create your own structure for how you want to trade hammers. You can get in, you can get out, you can flip, you can zoom into different time frames. There's all kinds of things you can do if you want to. If you want to spend that kind of time, if you want to spend that kind of focus, you have the opportunity and the ability to do so, but not the obligation. So hammer, candle, big fan of that. Love it. So good in every way. And this is an example. This is the gif created by 400 hour per day. Matt Delong. Katiana says there was one on Spy today on the five minute chart. Oh. So what's really cool is the ladies in the group, and I'm not going to mention names, but Katiana and Ali, both of these ladies realized that not only do hammers work on daily charts, but they also work on shorter term timeframes as well. So Ali sent me some emails saying, hey man, I think this works really well in the 15 minute chart. And I said, absolutely. Hammers can work on any time frame and they're really, really fine. Especially if you can spot them in a good trend and you can snag yourself a good setup. You are absolutely correct. So there's the hammer. Look at that. Hammer forms. And this would be a daily chart. This GIF is created on a daily chart. So at that point you see the hammer, you see the stop loss and you get ready to rock. All right, Michael, Take care, man. You are amazing. Nate says question, Jeremy, what's the minimum price you recommend for a stock? Very valid question, Nate. Generally I, very frequently I don't trade anything under a dollar. If it's under one singular dollar, I. I just leave it alone. Good question, man. All right, beautiful. Well, let's keep going then. In module 2, we discussed buy and hold versus long term and how to trade aggressively on a particular few amount of companies. We talked about how to calculate risk size and share size and that was math that many of you have never seen until that particular class. We talked about how to protect capital and risk management and we discussed the R system. By the way, this is the point of the program where I like to bring this up just in case. Has anyone ever noticed the candlestick and the RL logo until just now? Pretty nifty, huh? Yeah. So that was the first time. There you go. I was adamant that the R had to be turned around. We care so much about the R system, my friends. It's literally built into the company. Right? The R system. That is a highlight of the logo. RL Real Life Trading. Nice little candle. Greg says. Kind of like the arrow in FedEx or the smile on Amazon. Nice. Yeah, man. Yes, sir. Yes, sir. What people refer to as a branding phenomenon. Just kidding. That's a joke. All right, let's see what else people had questions on. Luis says, do you find the market is behaving differently during the coronavirus situation. Absolutely yes, yes and yes. But it still works. It still works. So talking about calculating risk, at some point we always need to know how much we are calculating on any risk investment. When you invest or trade stocks, this is usually represented by a percentage of your portfolio. And that is what the R system is built on. It's a percentage of your portfolio that you determine divided by the different of the entry, the difference of the stop and the gives you the number of shares, no more than 2%. Most traders usually start with about 1% or less of their portfolio. Right. So risk formula equals predetermined risk amount divided by entry minus exit equals the amount to trade. I have a trader saying, do you make more money day trading or swing trading? It depends on the month. This month I'm making more money on day trading than swing trading. I generally find day trading to be more consistent and reliable. And when it comes to swing trading, there's generally three to four months out of the year where I do the best swing trades and the rest of the month is just kind of ho hum. But I day trade a lot. So it's kind of, you know, not specifically. Chris says, is there a risk formula for options? It's the exact same, Chris. Tom is the exact same. Right. So if you buy an option at $3.40 and your stop loss on the option is $2 and 40 cents, the difference between the option is a dollar. And if your risk is $200 per contract, $200 per trade, you would do two contracts. Chris said, that's easy. Yes, it is. Christopher says, usually how far above the hammer do you place your entry? Two or three pennies generally. Another trader is saying, do you use volume profile and view app at all? I do not use volume profile presently and I very rarely use vwap. Julio says you have an account for day trading and another one for swing trading, correct? That is correct, yep. Cabria says, do you use MACD and rsi? I do not actively use MACD and rsi, although I do know how and I have videos on both of those, but I don't actively use them now. All right, cool. Deal. We're doing it. We talked about this example. This example was a very nice light bulb for a lot of traders. Mark says, are the videos on YouTube? They are for RSI, MACD? Yes, sir. They are indeed. Remember, like I told you guys the other day, if you ever want to learn something, just type in what you want to learn followed by the term real life trading and you'll probably get A video. So this is a very, very powerful slide. Very powerful slide. Because you want to be like Mike in this situation. Don't be like Bob. Don't be like Bob. Bob risked too much. He got too cocky, put too much money on the line. And even though he had the exact same win loss percentage as Mike, he is losing money and Mike is winning. And they did nothing different than their risk. Pretty impressive. So here are some examples. We talked about some hammers. We did this exact example. We walked through this exact example a few different times. Bob has a $23,000 account. 1% of risk is $230. The entry of the hammer was 2219. The stop was 2132. That's an 87 cent difference. So you take 230 divided by 87 cents, get 264 shares. 264 shares times 2219 equals the investment. Ladies and gentlemen, this investment amount. Is this how much money you will lose if the trade does not work? If you have a stop in place? No. Right. That's simply the amount invested. The risk is right here. 230. Now, if you do not place a stop and the stock goes to zero, can you lose all of your money? Yeah. That's why stops are important. There are companies that have gone to zero before it can occur. You don't really want to be in a stock that just keeps going lower and lower and lower and lower and lower with no protection or no stop or nothing at all. You want to have some type of risk mitigation in place. And for the ladies, we also talked about Tina's account as well. So you have Tina and Bob. Tina played this hammer on Arna. Same exact situation. 1%, $23,000 account, $230 risk. She did the math. The difference between the entry and stop. Mr. Williams says you can lose more if it gaps under your stop. That is absolutely correct. Yep. You can lose more. But it's still going to be mitigated. Absolutely. Ira Fat says are fundamentals important? Fundamentals are important for long term investing. Absolutely. Our Fat says how to learn them. I know a company that teaches people how to trade and research fundamentals. Ali says if we set up a buy order the night before, at what point would you send the order? When I'm doing the analysis. And that night? That night the markets closed. I'm looking at the chart. I would set up the order as long as I have planned it 15 hours in advance. That's good. That's my rule. So when I'm looking At a chart. I have to go. Okay. I plan on looking at my companies, looking at my chart at this time of the day, this time of the night, and then that 15 hour clock begins. Then once I sit down, right. As long as 15 hours has passed between when I began to think about the trade and when the trade is taken, that is the requirement for that rule that we talked about in the last program. But I would personally be totally fine and happy that when you sit down, take your trade and you see the hammer, set the trade up, set the stop up, and you're good to go. Donner says, how do you find stocks to analyze? So, Donner, we have multiple different ways that we scan for stocks. One way is just simply a giant group of traders from all around the world who all look at stocks together and then we go analyze them every single day. That's one way. So I would simply say pop into the RLT community at some point. Donner, if you're excited about this and let's continue to scan for stocks together. That's one really great part about being around a bunch of really smart people is they all do the scans and we all look for things every single day. That's one way. There's millions of different ways, though, man. The opportunities are not the problem. You will run out of money way before you run out of opportunities. Our fat says, are you still doing the head shaving challenge on Laur? Yes, I will. All right, let's see. Darren says, when using a broker that doesn't support oco, should we be making three orders when we set our plan? No, I would get a different broker. Darren, second answer. Your question is if you do that, get triggered into the trade first and then once you get triggered into the trade, then set your stop loss as a second separate order and then set your target as a second another additional order. Christopher says, any tips for controlling emotions while trading? Man, that's a loaded question, my friend. That is a loaded question. I mean, that's. That's life, right? Chris, like, what are your tips for your controlling emotions ever? There's a lot of things that can help. It depends on what your skill set is. I personally just love working out, going to the gym, doing something physical and creating a plan in advance and making sure that I stick to it. Cabria, when you're referring to earnings and gaps over earnings, that was one of the rules we talked about in the previous class. Do not hold your swing trades over earnings, but to trade over earnings, you can use option strategies. And we're not gonna be talking about that in this particular program. Misty says she takes deep breath in and out for 20 minutes and listens to some music. That can absolutely work for sure. Julio says you can use a small R for a long time. Yes, yes, and yes, small Rs definitely help. But, Chris, man, a lot of practice really going to be key. Practice, practice, and practice. A lot of people say practice makes perfect, but that is an inaccurate statement. Practice makes permanent. So be able to ingrain this stuff in your brain if you really, really, really want to do it. Spend the time, be around people that want to do it with you. Be around people that want to make you great. Be around people that push you to become better and figure out how to continue to improve the entire time. All right, beautiful. So another example is Sharon's example. That was the hammer candle that we. That she did on ticker symbol ati. And Sharon played ati. And let's go look at what ATI did. That was one chart that did not show you guys what ATI did, because this is a really, really cool, really good example. So this was a trade that Sharon took on ati. And let's just talk about it for a moment. Okay? Minimize these two things. All right? So on ati, if we're just going back to the slide really quick, do you notice the bearish hammer right here? So you had the bearish hammer. You got the nice lower shadow broke below those candles. That's really nice. So if we go back to the trend spider software. Where is that? So we go back to the ati. So here's ati, and let's just walk through and talk through really quick what happened on this particular trade. Number one, here's her hammer candle. Very, very nice. Hammer candle, right? Hammer candle. Very similar to this hammer candle, just a different color. So, my friends, did Sharon get triggered into this position at $20.95? Yes or no? What do you all think? Yes or no? Did Sharon get triggered into that position? The answer is unequivocally no. Now, did Sharon get very close to getting triggered into the position? Yeah, she got close, but close is only good in hand grenades and horseshoes, as they say. I've never actually used that expression before in my life, but I figured that would be a good time. So the high of that candle was 2091. Someone earlier asked, where do I put my injury? So a few pennies above the high. So the next day, the high of the candle was $20.85. So she missed it by 10 pennies. Now, the interesting thing to consider, and we did talk about this, what happened to the stock when it broke below that hammer candle and closed below that hammer candle, AKA that day? What specifically happened? Now, that was far, far, far before the whole coronavirus thing. That was all the way back in January. So here's the thing. Notice this hammer got closed below, AKA it got taken out, AKA how do all the buyers that formed the lower shadow, how do they feel? They feel trapped, they feel scared, they feel worried, they feel upset. They're losing money. So what do they do? They start selling short. Which means you could do what? Sell with them. And if you start selling with them, could you have made money on the downside on that particular stock? Boys and girls, yes or no. And the answer is yes, absolutely. So that's the other thing I like about hammers is if I see a really good hammer, my thought process is like, oh, wow, cool. Really nice hammer candles here. Yeah. How about it takes out the low of that hammer, I'm gonna flip it and reverse it. And that's pretty much what happened on that particular trade. Paul says if your stop loss gets gapped over, how do you prevent losing your doe? Your stop loss will still be activated, Paul, regardless of where it is, because it's a market order. So you might lose more than one r, but you will still get filled at open. So it will happen. It'll happen in rare events. It'll happen much, much, much less. If you do not hold over earnings, if you hold over earnings, you absolutely run the risk of having a gap, a large gap down over your stop loss. But if it gaps over your stop, since it is a market sell order, right? Market sell. As soon as the market opens, you're gonna get filled and you're gonna sell your position. Parash says if you set up the night before, how can you control pre market or post market triggers? Don't allow it to trigger pre market or post market. That's really it. Right. You have to accept that application in your broker anyway. So you have to willingly say, all right, I submit this anytime before market open or market close. I would not personally suggest doing that. I would suggest just doing it. Regular trading hours of right now, Donner J Says, is a hammer candle by itself a trigger? It can be. It absolutely can be. Just again, depends on the location, depends on the trend, depends on a lot of other factors. Depends on how good the company is. Yep. Megan says, what does it mean to hold over earnings? Exactly. So, Megan, every company that's public, if a company is public they have to release their fundamentals. And every three months, public companies tell the world how much money they are making or losing. So when that happens, do you think the stock reacts sometimes violently that day? The answer is yes. So it can be violently up or it can be violently down. So realistically, every single, every three months, you're gonna have earnings on, on some companies. And this one, this stock probably had earnings right here, February 4, most likely from the look of it. So yeah, you're absolutely correct. But that's going to be something that is something you want to consider for sure. In your short term swing trading account, Cole says, have you ever played the same, have you ever played one sock both ways at the same time? Sounds counterproductive, but it could work. You can't do it in the same account, Cole. You have to do it in a different account. And the answer is, yes, I have. I've been long a stock on one account and then day trading it short in an entirely separate account. So the answer is, yeah, it can, but you can't do it in the same account. Has to be in a different account. Mitzv says, is that long white candle a hammer? It looks like it. Nope, it is not. So this candle is not a hammer candle. The body is too big and the lower shadow is too small. Tony says in this example, to go short with the inverted hammer, wouldn't it be risky to go short during a pullback? I mean, it works. Looking at it now. So the risk, Tony, it's risky to do anything in life, my friend. That's not the exact question. The question is, how much are you risking? And the answer is one risk unit. So if you know your risk, then the risk becomes less extreme. This candle was not an inverted hammer. It was just simply a hammer that was a legit hammer. It was a very nice hammer candle. So when this candle came in right here, this was a bullish candle. This had all kinds of properties and principles. This particular candle, it was a shaved bottom candle, which means it has no lower shadow. And it's an inside day candle, which means the pressure is building. So you have tons and tons of pressure building. So really, once this candle comes in right here, you most likely know that you should either not be bullish or you could go bearish. Again, Tony, you don't have to go bearish, but you could. So once these candles come in right around here, again, it's risky to do anything. But if you know your risk, or at least your risk is mitigated, then it has a strong decline. On how fearful you should be. Cabria says, if you have long term companies, do you still hold over earnings? Absolutely. Nate says, is it safe to say bullish hammers are better profit than bearish hammers? No, not necessarily. I actually love finding bearish hammers if I can. Because bearish candles if shaping up the right way. Right? You have short sellers who are getting into that position. So if you have enough short sellers getting into that position, then quite simply put, if it goes higher, those short sellers will be forced to buy to cover and they'll start losing money. So I like bearish hammers. They're good. They're useful. I also like bullish hammers. I don't really treat them any differently. It all depends on location. So this, this stock you can see has tons of hammers. This thing has hammers all over the place. Cabria says, do you ever trade based on tweets? No, I do not. All right, we're doing good. We're asking all the questions. Very nice. This is, this is nice. Okay, so then module three. Module three, we have bullish versus bearish. Talked about that. We talked about shorting, making money on stocks going down. We talked about four types of broker orders. We talked about calculating share size, the R system again, order entry again. So we discussed those things in module 3. Do you remember this example? We talked about buying and holding coals and getting a 0% return. Then we talked about trading Kohl's bullish, right? And if you traded it only bullish, you did very well, but only making a certain amount of money. Next we did bullish and bearish. So if you did both the ups and the downs, this was a big breakthrough for four or five different traders. You could have doubled your potential return, which was incredible. So going forward from there, we also discussed a few different things. We talked about the broker order types, right? Buy and sell. We talked about buy to open gets into a trade. Bullish. We talked about buy to close is exiting a short position. We talked about selling to open, getting into a bearish trade. We talked about selling to closes, exiting your long position. Any questions about that specifically? Oh, you guys are good. All right, cool. Let's keep doing it then. So we talked about market, we talked about limit, we talked about stop limit, and we talked about stop loss. Market. Market orders get you into the trade immediately. Limit orders allows you to choose the price at where you buy or sell. The downside is sometimes you never get filled. The upside is you always get the price that you want or better. So if you're buying something at a limit, you're going to buy it at that price or better. And if you're selling it, you're going to sell it at the price that you want or better. And then everything got really confusing for a short period of time when we talked about stop limit orders. Stop limit orders allows you to not only select the price at which you want to get into the trade, but it also gives you the way to activate the trade so that it only triggers at that price and gives you the price that you want or better. We talked about stop market orders, which again, you can get into a trade with a stop market order. The only challenge is you don't know what price you're going to get filled at. So if you have a stop market order, you could get filled at any price at all, above or below that particular price. But generally, generally I always use these for emergency breaks. That's how you can kind of think about stop market orders. They protect you. They make sure that you have some type of safety net in case something's going crazy. So as a review, we talked about limit buy versus stop limit. Ladies and gentlemen, is this a correct image of a limit buy? Yes or no? If you want to get into a stock on a pullback, is this a correct one? Charles says, do you use stop market orders all the time to get out of a trade? Yes, I do. Always. Julio says, stop limit orders, you have to enter two prices. That is correct. You have to enter two prices for stop limit orders. Yep. All right, so you are all absolutely correct, my friends. This is a proper chart and the proper image of a limit buy. And then this is your stop limit order. So in your stop limit, you're gonna be selecting both your stop and your limit price, as Julio so eloquently mentioned. Right. And then module four, we talked about, and we discussed some brokers that you can use. We talked about how you can paper trade for practice, we talked about setups and order entries, and we gave you some rules to follow for your very own trading plan. So here are some of your recommended brokers. TD Ameritrade, Charles Schwab, Interactive Brokers, Trade Station, Tasty Works, Robinhood. We bull and trade zero pretty much in that order. Mostly in that exact order. So let's go through an example because I still have some traders who are confused between the difference of stop market and stop limit. So let's just kind of draw an example on Kimberly Clark and let's just say we're going to go back in time over here and Talk through this particular trade setup, ladies and gentlemen. On this particular chart, do you see a hammer candle? Diego says, do you have something cater to international traders that's called interactive Brokers. Diego Interactive Brokers is a international broker relations marketer. All right, so that is your hammer candle right there on this particular trade. So this would be a stop limit. Let's say, for example, you want to get into the trade at $70. So $70 would be your stop and $70 would be your limit. It would be both prices. Would you have failed on that trade at $70? Yes or no? And the answer is yes. So now let me tell you the potential challenges of a stop market order. Let's go back over here and go to this chart right there. And let's just say hypothetically that you had a stop limit order at this green line. Might be a little hard to see. Let me get another chart. That one's gonna be a tab. It's it. But you're all correct on the stop limit. You all nailed the stop limit. But there are traders that still have a question on the stock market. So this is a perfect example right here. So let's say, for example, I did a stop market order at this green line. Okay? Stop market order right here at the green line. What price would you have gotten filled at? Would you get filled at here or would you get filled out here? And the answer is, you would have absolutely gotten filled with a stock market order, and you would have gotten filled at the higher price on the open of the next candle. You would have gotten filled right there because it is a stop market order. So. Right. The stop market order simply says, hey, as soon as the stock hits this price, I want to buy at market. Now, would that have been a bad thing? And I would say not specifically, because obviously you can see the stock went up. But what if you did a stop market order here and the trade gapped up all the way up to here at 26, and you got filled at 26, and then the stock just went down, down, down, down, down, down, down, down, down, all the way to your stop loss in one day. What if that happened? Then you'd be hosed pretty much. You're gonna lose a lot of money. You're go very upset. So that's why a stop market order, I don't like to use them because you can get filled at any price. So that's why I do a stop limit order. Donner says you don't set a price for the market order. No, because it's a Market order, you're just doing it at market. That's the thing. Anytime you have a market order, you're just getting in or getting out at market, there is no price that you can set. That's why a stop limit limits the price at where you want to get in. So both Christopher and Donner had that exact same question. Chris says, just like at a restaurant, when it says market price on the menu, right, you are 100% correct. You cannot dictate that price. That price is already determined for you. But a limit order allows you to select the price. So if you did a limit order right here, would you have gotten filled if your limit was this little line right there? And again, the answer is no, because it would have got over your limit and would have never filled your limit. Now, is there ever a time where you could have potentially gotten back into this trade even if it gapped over your limit? Is there another circumstance or maybe a candle that you might see that looks, I don't know, relatively interesting and kind of resembles a potential candle that maybe theoretically, possibly hypothetically, we've talked about relatively recently. And if you said yourself, oh man, even though I didn't get filled, my original entry, look at that. Looks a lot like a hammer candle. What's really cool Again, as you begin to practice the strategy, you're going to get better at it over time. There's so many rules, so many things that you can build. If I find a really good, really sexy hammer candle like this one right here, man, I just looking at this, I mean, this is a morning star reversal. You get a one white soldier candle, nice hammer. Already had a higher lows and higher highs. I would have really done well on that trade right there. Really done well in that trade. Would have snagged it. Boom, would have sold it right there. That would have been a great trade. I would have loaded in pretty heavy on that one. I have a trader asking, are we going to discuss trailing stops? No, we will not. Not in this particular class. All right, cool deal. Nicely done. We're getting it. I hope that helped. That is the explanation of stop market versus stop limit. Thank you for bringing it up. So again, this was the example on Kimberly Clark that we did yesterday where we drew the support resistance lines. We talked through it. We talked through drawing some lines in on Kimberly Clark. We zoomed in the Kimberly Clark. We found a hammer candle. We set up the hammer candle 11843 with a stop loss of 110 just to make sure. Let's see if I can get 100%, but I'm not gonna be able to because someone's gonna just as a joke, probably press the other button. Which order would we put into the broker if we wanted to get in? At the green line on Kimberly Clark? Nathan says, if you're confident on a trade, do you ever risk more than one r? I plead the fifth, Nathan. So here's a poll, and I'm not gonna get 100%. I'm not gonna get a hundred percent on this one. I was hoping I would, but we have some traders that still don't fully, fully get it. It's all right. Good thing we recorded it for you so you can watch as many times as you need to. Gonna stop the poll. Stop the poll. Going to share the results. So, hey, at least we got 90%. We got 90%. That's pretty good. 9% said limit and one person said stop market. We're improving. Improving is a good thing, my friends. We're getting smarter. I like it. Okay, so the next that will be a stop limit. That will be a stop market. And obviously had this resistance right here, right? That resistance level. You could do all kinds of things. The resistance. This is a screenshot of setting it up. Julio, do you remember this screenshot? Because you're asking, do you set two prices? Here are your two prices with your stop limit screenshot of how to do it. Any questions on this setup? Ladies and gentlemen, January says it seems like the majority of the time we want to use stop limit orders. That is absolutely 100% correct. With this particular strategy with hammers, you're going to be using stop limit. But I had to describe what the other one was. W rest has a question. The answer to that question is yes. Julio says, all right, I got it. Nice. That's exciting. Beautiful stuff, Julio. I love it. All right. Then we talked about this is the stop market order. This is your emergency brakes. This is how you get out of the position for a loss. But it's a mitigated loss. It is an amount of money that you predetermined that you're gonna lose and you're okay losing that amount. This is the stop loss, also known as a stop market sell. We Talked about the 2R target to our target is also a sell order, ladies and gentlemen. Boom. Quantity 118 order is a limit, my friends. If this stock gapped up to 140, at what price would it sell? I'll say it again. If this stock gapped up to 1,40, at which price would it sell? And the answer is 140 because it is a limit order. So 138, 66 or better. So if it gapped up to 140 after hours, you'd be able to sell it at 100 for zero. Limit. Is that your price or better? Scott says, I understand what gapped up means now. Thank you. You're welcome. Marlene says, okay. Marlene just smiled because she was like, wait a minute. So I can make even more money. Aaron says, stop limit. Was that only for a breakout? That is correct. It's for a breakout. Absolutely yes and yes. All right, team, we're chugging along. We are almost done with module 5, so some expectations from here. Keep in mind it's going to take a little bit of time to become an expert. I would love so much for every single one of you to just absolutely dominate this stuff and make hundreds of thousands of dollars every month. I hope you believe me when I say that nothing would make me happier, nothing would make me happier than every single one of you just to make obscene money. So much money that you slide down it and burn it for fun. But it will take time. You're going to have to study. It's worth studying. Ali says, lifestyle commitment. I'm not going back to bartending. Bang. There we go. Ali. That's her lifestyle commitment. It's easy cash. I know it. And it's gonna be hard for you not to do it, but it's achievable. I love your commitment. I love your focus. I've always loved your emails. I'm excited when we trade together. You are gonna be a wonderful, wonderful trader in the future and I'm really excited to see all the greatness that you put behold for the world. Mark says, I wish it would happen immediately, but I know it's a process. I know, man, and it sucks. It's terrible. I want it just to happen immediately as well. Chris says, jeremy, how much analyst upgrades and downgrades affect your decision? They affect my decision when I'm day trading, but other than that I don't really care. Diego says, but you can win millions in five minutes. I can. I can indeed. But it takes time and practice to do that. Takes time and practice. I've spent 11 years, I've worked harder at this than most people have worked in their entire lives at anything. The amount of energy, time, screen time charts, focus questions, blogs, articles, videos, it would absolutely blow your mind. Julio says, believe him. I'm new to real life trading and I did net two Rs this week. Nice. I love that Julio, well done, man. That's exciting. Now, what you got to remember, folks, is this is the opportunity that you can generate cash flow from this. Think about if. If you are able to look at enough charts over enough time and see the trades that you really, really like the most, and you're able to pull up a particular chart and you're able to say to yourself, there it is. That's it. That's the one I want to take. That's a great trade. Let me set it up. And you take two or three trades a month, and those two or three trades a month net you an additional $600 a month. Would that be amazing? Would that be cool? Would that be a great addition to your world? Just an extra 600 bucks a month. Now, of course, that's really nice for a lot of you, but for some of you, it's not enough. For some of you, it's. You need more, and that's okay. But it starts somewhere. You still got to know it can happen. I have traders who I work with on a daily basis who are worth tens of millions of dollars. Liquid. Tens of millions. Liquid. It takes time. It takes a mindset. It takes some energy. You're going to have to do something that you don't want to do, and you're going to have to pay for something you don't want to pay for. When I'm talking about paying, I mean you're going to take a trade that you wish you didn't take. You're going to learn a lesson that way. You're going to have to buy something you don't want. You're going to have to push yourself out of your comfort zone. Everyone always says it. Growth only comes from pain. That's it. That's the only way growth happens. So get ready for it. If you're not in pain, you're not going to grow. It's simply going to happen. You have to put yourself through some sort of physical, financial, mental, emotional, spiritual pain, frustration, agony. You're going to have to be scared. Like, if you go to sleep and you don't pray to whoever you're praying to about this stuff, you're not in enough pain. If you go to sleep and just lay down and everything is perfectly fine and everything is absolutely okay, and you don't have a stress in the world, you're not trying hard enough, and that's okay. Some people don't try hard enough. But you are all here on a Friday night for those who are here live. So first of all, give it up for yourselves on a Friday night, putting in work. I think that's phenomenal. Ladies and gentlemen, I want to say thank you for everything. I'll tell you a story that always motivates me, and then I will answer any questions that you have, and then we'll be finished. This is a story that is told by Eric Thomas a lot in his presentations, and I always appreciate the story. The story is of two people, gentleman and an older gentleman. And this younger gentleman wants to make a lot of money. He wants to be very successful. He wants to do great things for great people in the world. And the young man goes to the older man, the richer man, the wiser man, the more experienced man, and he says, hey, Guru, I want you to make me successful. I want you to help me become great. I want you to help me become rich. I want you to assist me in becoming wealthy. What do I need to do? I'm willing to do anything. The older gentleman, the guru, the wisdom, the experience. He says, all right, you want to make money? You want to be successful? The young guy says, yes, I want to be successful real bad. He goes, okay, meet me out here at the beach, 6am the young guy goes, got it. Not an issue. No problem. Shows up on the beach the very next day, 6am he's wearing a suit. He probably should have worn shorts. And the guru says, all right, come out with me into the water. He grabs the young guy's arm, his right arm, and he starts pulling him into the water. This guy's got on a full, nice Armani suit with gorgeous shoes. About to get it ruined. He's thinking about the wrong things. The guru is pulling him into the water. Farther and farther he goes. The water's at his waist. The young guy can feel his coldness gripping his body. The waves are starting to crash. He's starting to lose the sense of the ground. And now the water is up to his collarbone. They're both swimming in the ocean, 40, 50ft away from the shore. And the guru looks at the young man and goes, what are you thinking about right now? And the young man can barely gasp for breath as the waves and the ocean are starting to peek over his head. And right at that moment, the guru grabs the guy's head, takes his hair and puts him underwater, holds him underwater. The young guy starts freaking out. He starts throwing his hands up in the air. He starts thrashing. He's terrified. He's panicked. The guru is calm, collected. The young gentleman is truly about to drown. He's about to pass out in seconds before he passes, out seconds before the pain is too much and he gives up to his fears and his anxiety and his panic and his worries and his frustration. The young guy is pulled above the water by the guru. And the guru says to the young guy, what were you thinking about underwater? And the young guy's looking around, what was I thinking about? I need to breathe, man. You almost killed me. I almost died. I could have drowned. And the guru said, exactly. If you were underwater and you were thinking about success, then you'll be successful. The moment you start thinking about success, like you need to breathe, that is when you will start to achieve your success. You need to need it as much as you need to breathe. With every waking breath, you need to be thinking about it. With every waking moment, you need to be figuring out how you can get closer with every realization. And conscious, both sub and conscious. You need to be thinking how you can get out of your comfort zone, what things you can do to propel yourself, what things you can read, what questions you can ask, who you can hang out with, who you have to pay, who you have to hire, who you have to get you to work. I am that person. I want to push you to greatness. Ladies and gentlemen, regardless of how old you are, how much money you have, or how much money you don't have, you have the opportunity in front of your hands to do anything you want to do. It simply requires effort, discipline, consistency, and a plan. Type in one if you're fired up and you love it, because this is what real life training is all about. This is your moment, folks. You have the opportunity in your hand, on your keyboard, in front of you. Saturday and Sunday are approaching. If you're here live and if you're here watching this in a recording, the future is in front of you. The amount of things I'm going to be doing tomorrow and Sunday would astound most people. The things I'm going to do in the next 48 hours, most people will not accomplish this entire month. Most people want to accomplish in the entire year what I'm going to do before April 1st. And that's not because I'm better than anyone else. That's definitely not because I'm smarter than anyone else. I simply have to. It's a must for me. It's a requirement. That is how my life is designed. You only live once. Spend your time figuring out what you can do, how you can do it, create value for other people and live magnificently. Let your light shine across all the dark places of the world and go be amazing. Thank you so much for being here, folks. You are absolutely phenomenal. I hope to see you all at real life training in one class or another class in the trading program. Anywhere you want to go, I'm going to be there always and forever. Thank you. You rock good.