The PERFECT Trading Strategy from a $1M+ Order Flow Trader (LIVE Trading)

This Guy has taken $3,000 to over seven figures.

2019 was a scratch year for me. I just lost money because of all this bullshit. What happened with me when I started out, I never asked the question why? Like why are we respecting the indicators? I should have asked the question why? So that's where I shifted my focus to the buyers and sellers. That's what creates the market.

His name is Jay Otani, known as one of the most transparent traders in the industry.

What took me from say 3k to 7 figures now is not what will take me from 7 to 8 figures. I took my profits a bit too early. Still, I made like $20,000 on this. That is crazy. Like easiest trade of my career.

Today on Chart Fanatics he is breaking down his entire order flow strategy that allowed him to take $3,000 to over seven figures.

Tesla is a major contributor to my P and L. My seven figures. P&L, about 700k or 800k has come from this one stock alone. My edge is right here. My edge is lowering the risk because I size up. So if I size up, I want my risk to be controlled.

He's going to show it all step by step with trade examples and even live examples.

Now you guys can see my order window. I covered my position at 955 overall.

Making $50,000, approximately $49,000 on the NVDA trade.

But because I took a loss on Tesla as well, Overall I made $44,000 on this day.

I would say the con of this strategy is nothing, honestly, because everyone says that. Okay, the con of the strategy, it won't work in this market environment. This is going to work everywhere.

Hey guys, before we get into this incredible episode, I want to say a massive thank you for all of your support so far on both words of wisdom. And so Chart Fanatics we have grown immensely and are still the fastest growing channels in the trading industry. Now a way to get back to every single one of you. If you want profitable strategies completely for free, go to chartfanatics.com the links in the description. Put your email in and every single week we will send you a free PDF with a profitable strategy of the guests that we host as well as on the website. You can go straight there and you can go through the library of of strategies completely for free. Just input your email. On top of that we launched a Chart Fanatics free Discord community that has already over 10,000 members of traders across the world. We have our live traders from Chart Fanatics live in there. I'm documenting Every single one of my trades in there and we have exclusive discounts, massive giveaways and so much more just to give back to every single one of you. Let's not forget updates on every episode and things that we are bringing to this industry that's going to change it forever. But for now the links for that are in the description.

Let's get into this episode.

Welcome everyone back to Chart Fanatics, the.

Go to channel for all of the very best strategy and playbook and concept breakdowns with some of the very best traders in the world.

This is the world class trading education, absolutely for free.

And today we have a very special guest. I've just landed in Dubai, literally just landed, came straight to the studio, so apologies if I don't look my best but we have our guest with us who is I would say one of the best here in Dubai. Very few verified traders here. He took $3,000.

He started his trading journey in 2019.

Took $3,000 and has crossed a seven figure mark. Using this playbook and this concept we're going to break down today. It is the one and only Jay Ohtani AKA George Rates.

Thanks for having me on. Thanks for having me.

My absolute pleasure. Thank you.

Waiting for it for a while but yeah, thanks for having me on. And you just landed in Dubai this morning. So he just had a coffee.

So yeah, we can see we're going to try and stay alert for this one. Definitely. I'm very excited for it because one thing I forgot to mention is the way you describe this playbook and this strategy is almost the DNA of the market market and I think that is one intriguing. But two, I am very excited to learn about it. So where do you think we're best to begin?

So yeah, so when we look at the market we think about the market because when I started out, so I'm going to share my journey first and what happened with me and why I lost money for the first few months. So when we look at the market, when you start out like I started.

Out, you have to look at a.

Lot of people, just look at the indicators and stuff like indicators and then you look at like bull flags and bear flags. That's where you learn because when you search online how to trade the stock market, that's what you get. Indicators, bull flags, maybe Fibonacci levels and a lot of different like head and shoulders, knee and shoulders, whatever different kind of names for the patterns like whatever. Dragonfly Doji, that's my favorite name, Dragonfly Doji. But me being me, I Always want to know like what happens under this. Like what happens when you make a head and shoulder patterns. What happens like when you see a 50% retracement when you look at the Fibonacci? Or what happens when you see a bull flag and a lot of bull flags. I would say if you look at bull flags, 50% of them are going to work out and 50% won't. Or maybe 60% are going to work out or 40% won't, depending on the market conditions. But for the first few months I was too, based on indicators and I was losing money. And even if I look at my journal, for the first few months, it was basically my journal was I lost money because there was a strategy. I remember that strategy. So if I talk about that strategy, it was if there was like on the five minute shot, if the 9 and the 20 EMA are crossing each other, that's a reason to short it or maybe long it. It's a sign of reversal.

Yeah.

Have you seen that strategy ever? Like, have you?

I've seen like crossovers.

Yeah. Yeah. So that was my strategy. So my whole journal was for the first few, this is the 9EMA, this is the 20EMA. If they are crossing each other, go short. And then I kept on losing money. So I started with like three or $5,000. I had a full time job so I could fund the account.

But the good thing is that I.

Started with good risk management.

Yeah.

So basically when I was losing money, I was losing like $10. I was losing like $20. So I also had a full time job to sustain. And eventually, yes, I was able to make money.

But then this happened in 2019.

And 2019 was a scratch year for me. I just lost money because of all this bullshit. Not saying that it work, it works. But you need to first focus on like, I trade bull flags, I trade bear flags, I trade the indicators, I use indicators. But your strategy can't be based on indicators.

Yeah.

You need to focus on what happens with the market.

Again, let's keep it blue.

So the market is made up of like what is market? When people talk about stock market, like what is market? When you say stock market, it's just a marketplace for the buyers and sellers. That's what it is. Like buyers and they meet sellers. For example, you have your supermarket downstairs. It's the same thing. You are a buyer at the supermarket and they are selling something.

Yeah.

So it's the same thing. Buyers and sellers for the assets. For assets. Is the stock market or the Futures market or the forex market. In the forex market you trade currencies, buyers and sellers. In the stock market you trade stocks. In the futures market you trade futures of the indices or whatever, or the crude oil futures or whatever. But that's what creates the market. The buyers and sellers, they create the market. The indicators don't create the market. So that's why I was losing money, because buyers and sellers, they create the price action and the price action then creates the indicators. For example, if I focus on nine ema, what is nine EMA like on the one minute chart you're seeing these like say nine bars on the one minute chart. So it's going to take like there's a formula 1, 2, 3, 4, 5, 6, 7, 8, 9 here. So this is say the one minute chart or the one day chart, let's say one day chart because people like to focus on the higher time frames. One day chart, what is 9am it's going to be like the 9 exponential moving average of all these prior price action. And then you are trying to predict what's going to happen later. But if something happens in the market, the panic is high. Like recently. I don't know when this is going to go out, but the tariff news and the war news, the market won't be based on indicators like it's going to drop. And what happened with me when I started out, I never asked the question why? Why are we respecting the indicators? I should have asked the question why? Why are we respecting the indicators? So that's where I shifted my focus to the buyers and sellers. That's what creates the market. And I started focusing on the market depth and the level two which is basically more prominent. It's more useful when you're trading stocks and futures. But in Forex you don't have a reliable way to look at the volume. Yeah, So I tried Forex did not work out for me. There are a few Forex traders that are good. Not everyone, but there are a few good Forex traders. But it wasn't working out for me because my edges right here focusing on the volume by price and looking at the buyers and sellers.

So that is in the Forex market is not centralized. Right. So there's no like specific data that you can rely on versus in futures and stock markets or centralized. So all the orders are in, you're seeing all the orders that you're seeing all the orders.

It's centralized. And the stock market and the futures market is always like very regulated and everything. So you can actually See, real time volume and I have like two or three platforms because if I trade, one platform goes down, I have the other platform and the number of orders. For example, this is like $100 level and this is 99. It's going to be same on both the platforms. But if you look at Forex, it's going to be different with like different platforms because of the broker and everything. So there is no centralized way of looking at the volume in the Forex market in future. There is. In stock. There is.

And this is why you call it the DNA of the market, as you said. Like this is where you're actually seeing the buys and sellers and everything else on the left hand side, which most people are focused on, especially when they come into trading. But a lot of people end up staying around that and some people make it work. But for the most part I do think that having this understanding, even if you use say Fibonacci or Head and Shoulders, wherever it may be, even the indicators, is that this will then give you the confidence, the actual confidence of knowing what's happening, why it's happening.

Yeah.

Why is this formed, as you said? And is that why you call it the DNA?

Yes. Like we are made up of DNA, the market is made up of DNA. And that's why I call it the market DNA.

And one simple example I can take.

Because we talked about that just now, that this bull flag, for example, the market opened up at 9:30am, right. Say Tesla after elections. Tesla had a crazy rally from like 220 all the way to like 480 or something. Right? Crazy. It was making a bull flag at 220 as well. Pushed towards the upside. Maybe it was making a bull flag at 480 as well. But this has a way more chance of working out than this bull flag. Why? Because there are more buyers here. Yeah, I'm going to talk about more buyers and more sellers. Because there's a buyer for every seller and there's a seller for every buyer.

Yeah.

If you think about it like, because for like my brain is always, it keeps asking the question why? Like why does this happen? Because when I was focusing on it, I was just not getting the answer to the question why? So now at 220 there are like more buyers, aggressive buyers, that's what I like to call them. Because like there's no such thing as more buyers or more sellers. Because if you want to buy something, there will be a seller. Yeah, I'm going to talk about that as well. But say for example, the market opens up at 220. And Tesla moved from like say 220, the ATR of that stock, which is the average true range, that is how much a stock moves on an average on a daily basis based on the prior 14 days. Say it's $20. So it goes from 220 to 240. So for example, it starts at 220. It moves, it makes a bull flag, pushes towards the upside. This is like it goes from 220 to say 235. So this bull flag has a way more chance of working out than a bull flag that is say moving from 235 to 240 because it's very extended now. So the buyers are like, okay, we don't want to buy at 235. I'm going to wait for it to come back down to 220. So if you see a bull flag at 235, that is a way like that might work out 10% of the times, but if you see a bull flag at 220, that will work out 90% of the time.

So context and positioning matters a lot.

Where the buyers and sellers are, what is the market sentiment? So yes, bull flag, bear flag, indicators, Fibonacci, everything works like in a bu. Fibonacci levels, it's one of my favorites because I don't have to look at these levels to know that, okay, if market moves from 0 to 100, it might find some support at 50, which is the 50% Fibonacci retracement. So I don't need this fancy word to talk about that. Like it's pretty much okay, if something goes from 0 to 100, it might find some support at 50. So that is like pretty common sense. And the indicators. So even if you look at indicators, like I Talked about the 9 EMA and the 20 EMA, so say in 2024 we had a crazy bull market. Like 2023 was a 2022 was a bear market. 2023 was pretty much stagnant. 2024, we broke all time high. SPY itself, like SPY, average yearly return is like 10%, which is the S&P 500 for the new viewers. S&P 500, which is the top 500 companies in the US stock market. On an average, it moves like 10% in a year. That is a return if you just invest in SPY every single month, every single year or whatever. Right. That moved 30% in 2024, which was.

An exceptional year for the market, like.

30% in one year. So now I Saw a lot of traders. When I look at these videos online, which I was doing as a beginner.

Trader, I made this mistake that, okay.

The market is moving 30% in like one year. So, yes, your moving averages are going to hold. Like the nine ema. This is a nine ema. And the market is just riding because we had a 30% push towards the upside. People are buying at the 9 EMA, taking profits. Buying at 9 EMA, taking profits. Buying at 9 EMA, taking profits. It's going to work. 2024, it worked nicely. What happened in 2025? Trump happened. So Trump happened in 2025. So this 9 moving averages, maybe it's pulling back. You are buying right here. And then he's talking about tariffs. It's not going to hold.

Yeah.

And how are you going to know? By looking at the buyers and sellers. So, yes, the indicators work, but they won't give you a sustainable. Kind of like for me, I always wanted to day trade for a living.

Yeah.

So I can't day trade for a living if my strategy is based on, okay, one year the market is uptrending, the next year it's not trending. Or maybe Trump is coming. Something coming up is something. My biggest trade was during the tariff thing. Like this year I made like close to 6 figures. I can call it like 93k. It's close to 6 figures. I was up more than 100k plus, unrealized. But I realized it with $93,000. So Trump had a tweet or something like he posted on X that we are pausing the tariffs for 60 days or 90 days, something like that. That was a fake news. Apparently the real news came in after two days. But on that fake news, I made like $93,000. And that did not respect any of the indicators.

Yeah, they didn't respect the MACD or the Fibonacci. MACD is amazing. And this is what I remember. I started with like watching YouTube. If the green and the reds are crossing each other, it's green time to buy. So when I think about it, I'm like, okay, there is a guy like Warren Buffet, for example, like, he wants his guys to invest his billions of dollars. He's like, okay, if the MACD turns green, buy. Does he do that? So I keep asking the question, why? Like, why does this happen? So it's just about buyers and sellers. And when the Trump tweet kicks in, I made like my biggest trade was without any indicators. It was just looking at the buyers. I actually entered before the tweet came in because of like a technical setup. It was a bull flag. But then I saw that, okay, this has a lot more potential towards the upside. The tweet came in, it kind of helped me. So it was at the right place at the right time and I had my biggest trade of the year and biggest trade of my career. So that is how I look at the market. The market is made up of buyers and sellers and the buyers and sellers.

For example, when you just look at this example here. Yeah. In terms of like 2024 and, you know, a trader, let's say, in that year, following that sort of thesis of, of the EMA and then buying and it's working out and they're feeling great. How important do you feel it is to be able to adapt to market conditions, not get sort of married to one strategy that may have worked for a period of time? Is that why essentially, the market DNA looking at level two, looking at the buyers and sellers, is actually very, very positive, really for traders, regardless of your style, because that is universal, that will stay that, you know, being able to identify those buyers and sellers is not going to change regardless of the market conditions of volatility, what's going on, you will always have that understanding and it will always be useful information. Vers, as we said with that example in 2024, you know, that worked that year because of the conditions and just the way the market was moving. So therefore you had this strategy that worked for that year. But instantly coming into 2025 we saw a shift in the market and now that strategy that worked. Right. And you may, you know, there might be a trader out there who. That was their first profitable year. They felt really, really confident. They came into 2025 thinking this is going to be the breakthrough and continuation of that. And then now they're probably there, maybe disheartened, maybe blown out their account, because that's the usual case that happens to a lot of people. Is that why it's so important to just have that understanding? Especially if you're a stock or futures trader. Right. Have that understanding of Level 2, up.

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Now let's get back to the episode.

For example, I know a few examples. I know a lot of traders also will see that on social media. So the traders on social media won't ever blow up because then they are making money from social media as well.

Right.

So even if they blow up, they are getting money from social media. But the thing is, I have personally seen a lot of traders in 2024 they made like trading SPY, which is the S&P 500 ETF again. So SPY is the ETF of S&P 500 which is the index and ES which is the future features of this index, which is the most heavily traded future in the world I think. And then there are like other type of futures, crude oil and everything. But yeah, so basically ES is one of the main futures that people trade. NQ tracks QQQ, which is again the NASDAQ NASDAQ 100 ETF.

So this is QQQ right here.

So I know personally a lot of traders they were trading like they made like 80, 90k on one trade trading spy in 2024 buying the 9 EMA pullback and the market moved 30% and especially if you're trading options, we're going to talk about why I trade options and stocks and I want to get into futures and I'm going to talk about the reasoning why as well. But in 2024 they had like 80k 90k day. But now that thing is not working like the 9am a pullback Trump tweet. It drops like crazy. They keep expecting a pullback and they are losing 80, 90k instead of making 80 or 90k. So that is something we need to be concerned. And that's why I feel like if you just focus on buyers and sellers, that's what creates the market. And if you focus on this, you will be able to understand any market for that matter.

Yeah.

So I'm going to take a recent example. Do you game Risk?

Do I game?

Yeah, do your game.

I used to. I don't. I don't get as much time anymore.

I know it's a weird question to ask but yeah, a lot of traders are actually good gamers. Yeah.

Yeah.

And that's why I'm not a gamer. I wanted, I always want to get into gaming. I have like a PS5 and something but I just game it like once, once a month or something.

I want to get into good gaming.

Because a lot of good traders they.

Gaming a lot improve the speed and reactions.

Yeah, my speed is good. But just like gaming, I feel like a lot of good traders are doing it, so I should do it. I try to get into it. I spend so much money on gaming, but I just don't game. But recently we had the launch of Switch 2. Do you know Nintendo?

Yeah, the new one, right?

Yeah, Nintendo. Nintendo. It's not Nintendo Switch. Yeah, two. So it was released like two or three weeks ago. I don't know when this episode is going to go out, but yeah, two or three weeks ago it was released and everyone was expecting the scalpels. Like okay, say for example, you want to sell this. Everyone was expecting that. Okay, the supply won't be that much. That is a gaming market. Like I talked about the stock market and the futures market and the supermarket and the gaming market. It's the same thing which can be applied to the stock market. You have to just look at same concept, buyers and sellers.

This idea won't respect the 90 MF, that's for sure. But say for example, you're looking at Nintendo Switch 2. So in Dubai, in UAE, the price was like it started around 3,000 drums. That is the first day of the launch which is going to be around $800 divided by 3.67. Everyone was expecting that it's going to be low in stock and it started out with like $800. Whereas the MRP that was set by Nintendo was like $449 for the normal version and 499 for the one with the Mario Kart bundle. Yeah, I know, I'm not even a.

Gamer and I still know everything.

I was thinking of buying it, but I was like, okay, no, I don't game. I don't, I don't want to waste more money on gaming. So the first two days it was $800. The next day I saw like this week itself on Amazon and everywhere it dropped from 800 to 700, dropped to 600, dropped to 500, and now it's basically you can get it for like 2,000 drums, which is basically like 5, $600. So like this is say 1, 2, 3, 4, 5, say number of days, which is the time period. This is maybe the day started at 800, dropped to 700, stayed at 700, maybe for a day, dropped to 600, and now no one is buying it right here. Dropped to 500 again. Right. A lot of volatility when you look at Nintendo to Switch individually, which is what I trade, which is say, for example, the stock. Yeah. Now let's talk about futures.

So I want to get into futures.

Because I'm going to tell you the pros and cons of the stocks and futures. But when we talk about futures, say Es.

Es, as I mentioned, is S&P 500, right? Yep. So it kinds of averages out these kind of anomalies. I call these the anomaly stocks, the stocks in play. Like if you talk about Nintendo as a stock, Nintendo Switch too, it had a lot of volume and volatility for the first five or six days. Now if I look at the gaming market as a whole, PS5 and plus Switch 2, plus Xbox, whatever Nintendo is going to price, like if you look at the average price of that, it's going to maybe slightly increase slightly, but the average is going to be pretty much like this. Right. It's going to cause a bit of fluctuation in the average price. But this is way more volatile compared to the futures, which is the whole gaming market. That's what you're looking at. Like now if I take an example, because I'm going to take an example of Tesla, because my 80% of the profits have come from Tesla up until this day. So let's take an example of Tesla and this is ES. Similar. Tesla is the Switch 2 here.

Yeah.

And ES is the PS5. The whole gaming market as a whole, like the whole gaming market. So I'm gonna do this. So now Tesla is gonna be a lot more volatile compared to say es, just because it's more susceptible to different sort of news.

Of course.

Yeah. So I call these like, I don't call these a lot like everyone calls these like stocks in play. These are stocks with news, catalyst stocks with some sort of play. Like in November this year. Last year, 2024, we had the elections, Trump won and Tesla went from like. I know a lot of traders made bank on it. Yeah, I was not able to make. I had. November was a really good month for me. I think it was six figures month for me but I was not able to capitalize it nicely because of personal reasons or whatever. But yeah, 220, it went from 220 all the way to like 480, something like that. Don't quote me on that. Around two hundreds to 480.

Yeah.

That is like 100% increase in the stock price, if not 100. Like it was more than 80% increase in the stock price in the same duration. Like in 2024, ES went up, which is the whole S&P 500, the top 500 companies of the stock market that increased like 30% in the whole year. This happened in like two months.

Yeah, true.

So a lot more volatility in stocks compared to futures because futures is looking at the S&P 500 as a total the stock.

Yeah, it's like a basket, right. Versus this is individualized. So you see that volatility even more so. And then one other thing to mention, you know, across both is when something is in play or has a lot more transactions or volume, it will have more of an impact. So say for example, you know, let's say, let's go to the. The gaming example, right? Let's say if the switch made up 40% of the overall gaming market, that then coming down would then create more volatility here. But let's say if it's only. Let's say it's very balanced. Let's say we have three different console options there. So let's say it only controlled 33% of the overall gaming market. This happening will have less of an effect. Still have an effect, but less of an effect because it's more balanced out in terms of the overall volume and transactions, right?

Yes, exactly. So SNP5 like ES, as I mentioned, ES is the future of S&P 500 index. It's called S&P 500, which includes 500 companies in total. But it's 503 stocks, which is a weird thing because a few stocks have like multiple offerings. Like Google has Google G, double O, O, GL and then maybe Gogl, something like that. They have multiple offerings. So they have like three stocks have two offerings. That's why there are like 500 companies which are the mega cap companies, they don't move a lot except some sort of news. But in total there are like 503 stocks. So now this is going to move by maybe 1 or 2% or say 3% a day. Tesla can move like 5 or 8% a day right now. The other thing is that when we look at the strategy, which I'm going to get to a bit later, is that why do I stick with stocks and futures and not forex? Because it's going to be a counter intuitive sentence because stocks are a lot more inefficient than futures and Forex.

So this is a fact.

It's like, okay, if you look at Forex, Forex is going to move like maybe 1 to 2% every day you trade forex, right? 1 to 2% every day.

Exactly.

When you look at futures, they can move from like on a good day, if there is like a tariff news going on or something, 3 to 4% on a good day.

But usually if you look at an.

Average, as I mentioned, 10 years on a yearly basis, but 2024, it moved 30% in 2025 of the market and the tariff news dropped 20% and now you're practically near all time high. So that is good. That is more than what happened with the forex. I know with Forex, like because I keep track of AUD USD, because I used to live in Australia, during tariff I transferred a lot of money from USD to AUD because like the chart was like this, it dropped like 7%. Yeah, 7%. It happened like in four years. Like after four years if there's like a war going on or something and then we are going to see a lot of volatility here in the forex market. 7%, which is still not that high. But if you look at futures, 20% drop, 20% push towards the upside. If you look at stocks like for example Tesla and Google, also like Google had a bit of news or something like stocks are more susceptible to news and that's why they're inefficient. Like the efficient market won't move a lot. These are the efficient market. Like Forex is the most efficient market because it's controlled by the banks and all over the world because banks are making or losing money on the foreign exchange because of the forex market. So it's going to be very efficient. It's only going to move 1 or 2%. Imagine like forex moving 15% in one day. The banks are going to go bankrupt, the companies are going to like the Countries, the economy is going to be unstable. But no one gives a gives like okay, if Tesla moves like 20, 30%, that doesn't affect the overall global economy. Now futures as I mentioned, it's average, it's less efficient, less efficient than the forex market, but it's still very efficient because it's a basket of companies. So if one is moving the other one is going to compensate for it. So it's it basically moving like 20% in like a few months. And that too because Trump is in the office. But if Biden was in the office it was just.

But when you look at stocks like stocks get a lot of news man, like Tesla, Google, I remember Google had a news. We're going to look at a few examples as well that Google had a news one day, it dropped like 7 or 8% in one day. Google like a company like Google dropping 8% in one day. I can't imagine Forex moving like that. Except there is a exception kind of thing that, okay, there's a war going on or something that happens once in a few years, which is crazy. Like since 2020 there has been like.

Four kind of wars.

But like Tesla had moved from 220 to 480. That's not going to happen with forex or the efficient market. Stock market is the inefficient market. That's why you get these anomalies. I call them the anomalies. I love this word because I want to look for anomalies in the market. Like no one, like everyone is looking at these, but these are the anomalies because this is going to give me insanely high risk to reward.

Yes.

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Now let's get back to the episode.

Now, a lot of traders, when they start out, like I remember when I started out, they look at Forex, you know, like a lot of beginner traders, they will look at Forex because of the leverage. Yeah, when you look at forex, it's like 20 to 1 leverage. I don't know.

How much is it?

Way more. Okay, 500 to 1.

500 to 1. 500 to 1. That is insane. Right? But do you have any edge? That's what like, okay, you have the leverage. 501. Why do you have the leverage? Because it's very efficient. It's only moving 1 to 2% every day.

So.

But do you have any edge right there? There are a lot of good Forex traders because it's very easy to size up on it, but only very select forex traders. It's very difficult to make a living trading Forex because it only moves 1 to 2%. But you can size up exponentially because of all the volume in the forex industry compared to futures. Like futures. When you trade futures, I don't know you get like 10 to 1 margin or something like that or say 5 to margin or 20 to 1 margin. That's what I know about futures. Maximum you can go like 20 to 1. It depends from broker to broker or everything.

Yeah.

On when it comes to stock stocks it's basically 4 to 1 on most, most brokers. A few like us broker. Like what I use interactive brokers, they offer 4 to 1 and that also depends on the stock. Like if for example I was trading GME or AMC in 2021, it won't even be 4 to 1 because it's very inefficient.

Yeah.

So it's going to be lower than that. But if I'm trading stocks like Apple, Microsoft, they don't move a lot on a daily basis. So even in stocks the leverage is going to keep coming down as the stock becomes more inefficient. So if by inefficiency I means that if the stock is moving very big, like it's very volatile, the margin is going to come down because no one is giving you 500 to 1 margin. If they know that you are in risk of losing their money. Yeah, they want to make money so they know like this 500 to 1.

That's the other thing with Forex as well. Right. Because like with, with futures and, and stocks you put your money in a broker, that money is on the broker, those orders are going to the market. Or with Forex, depending on the broker you choose, your money might go into. Well it'll go into the broker but it won't go to the live markets.

Right.

They can be book you.

So it's called B book. A book, right, Yeah, I learned about it recently. I made a video as well about that. But yeah, that's great.

But that's, that's again probably another reason why they can offer such leverage.

Yeah.

And then the barrier to entry is significantly lower when it comes to Forex. But to your point though, Lance Brightstein. Yeah, I know he said the exact same thing. And yeah, this, this puts it out beautifully in terms of very visual as well. But said like there's no edge in forex. Yes, for the same reason I think a Lot of people didn't understand why, but for the same reason in terms of it's very efficient. And when people hear that, again, I don't think they understand why now they will, thanks to this demonstration. But. But it just goes to show that is extremely true. Anyone who's been trading, say EURUSD over the last few years, or even the last five years, literally in a range, in a large range, I look at.

AUD USD, same thing, it's moving between 1.5 and 1.6. Basically it reached like 1.58. That's why I transferred a lot of money from USD to AUD. So I actually made money on this. So you can call me a Forex trader, but I'm not. But yeah, so I used to live in Australia. That's why I have an Australian account as well. But yeah, I mean I transferred a lot of money from USC to aud. If I do it now, it's going to be like a few hundred thousands extra or whatever.

Right.

So it's like foreign exchange. Yes, I made money, but I'm not a forex trader. That happened like once in a blue moon. But now, for example. So this is 500 to 1 margin. Let's now take an example. I'm going to take examples here with 501 margin. Say if I look at the example.

AUD USD, what is the most volatile.

Forex pair according to you?

The mo, one of the most volatile Forex pairs would be like GBP and nzd.

Okay, Right.

Or even GBP aud.

Yes, they're more volatile.

So basically I think GBP is a lot more volatile. That's why compared to it, anything else.

Is going to be very volatile.

Yeah, but then I think I don't know what it is about the AUD, because if you do € AUD or € NZD, they're very volatile as well. I think there's just the PIP movement is much larger.

Okay.

In comparison to. To AUD USD or Euro USD.

So how much does it move on an average on a daily basis based on the percentage, say this is the percentage wise.

I would say in terms of PIP wise, it be like 100 to 150 pips a day. Percentage wise it would probably be on the more regular 1 to 2% moves.

Okay.

Versus Euro USD and AUD USD, for example, on a regular basis probably move 0.4, 0.5%. Right. So on, on slightly higher side, I would say 1%. I'm guessing here, but I know on average pip movement, € USD will do like 50 to 60 pips a day when we haven't got large volatility. GBP nzd. Yeah, GBP NZD on an average day. So again, with no volatility we'll do 100, 120, so almost double that.

Okay, that's nice. So say, say for example on the higher side, 2% a day. I don't know about like a lot about pips because I tried forex like once or twice, did not suit me a lot. So yeah, say 2% a day, it moves.

Right?

So basically as you mentioned, it's like trading in a range and you're getting like 500 to 1 margin right here because it's very efficient. Again, it's very efficient. But if you look at stocks like Tesla, like Tesla is still a mega cap stock. A lot of traders trade penny stocks. They have made millions from penny stocks, which is like another kind of inefficiency in the market. But yeah, if you look at Tesla say for example, Tesla and Google, Google one day Tesla had a news recently. I'm going to take a few examples as well. A bit later, Tesla moved from say same example, 250 to 480. It's very inefficient because no one like what's the value of Tesla at the moment? Like it's approximately a trillion dollars in market cap. But if you just look at Tesla at the moment as a car company, it's very overvalued. But people are investing in Tesla, looking at the future prospects, the robocaps and the robotaxis and everything, the AI, the robot, they are doing, I don't know like what's the name of that robot? But yeah, that's actually moving and dancing. Elon posted a tweet about that robot is dancing. So people are actually investing in the scope, the future scope of this company because just as an automotive manufacturer it's very overvalued. But now this moved from 200 to.

480 in one day.

It was moving like 7 to 8% aggressive. Like 7 to 8% in one day. Do you think you have an edge? So now when a Stock is moving 7 to 8% in one day, that means the price action is going to be really good. Yeah, it's trending. So do you think you have an edge here compared to this one? Like even with 500 to 1 margin? Because eventually you're going to put in like $100, $100. You're going to keep blowing up your account. Yeah, you have an edge better right here because it's more trending market, even with 4 to 1 margin, even if you start out, save it like $5,000 or say 500 or whatever, you have a better edge here because you have a strategy here. Yeah, there was a stock in play, there was a news catalyst on the stock. The volume was high. So I look at our wall as well. We are going to talk about the strategy on the next, next section of the video. But because of the news catalyst, the volume was high and it's a very trending market. It's a very trending stock. You have an edge right here. You don't have any edge right here because you're going to keep like buying maybe here. I don't know, like if you buy here, you get stopped out here, then it goes towards the upside, like whatever.

Right.

It's, it's very difficult to make money in forex, especially with 500 to 1 margin because you are one trade away from going up.

Yeah.

With stocks you don't get that, which is a good thing as well. There's something called PDT rule that if you want to day trade stocks, I day trade stocks but I use options as my asset which we are going to get to later. But that is the reason I stick with stocks. The main reason is the volatility and because you can also look at the volume and the stocks and the futures, but not forex. So that is a reason you have to look for inefficiencies in the market.

And also one more thing, I read.

A lot of books, I actually listened.

To a lot of books because on.

Audible market visits you know about these books. So when I read those books, listen to those books, a lot of, not everyone, they have a lot of good forex traders. That's why I said like there are a lot of good Forex traders but you need to be extra disciplined. It's like, okay, you can size up a lot but it's very difficult to make a living out of Forex which compared to stocks or futures stocks is very easy because you get these anomalies, futures, you need to be way more disciplined with futures to wait for some sort of news that's moving the market. And then Forex is very difficult in those market visits. Book work A lot of people, what I notice is like they trade stocks.

Yeah.

And they trade futures. Like futures is very like there's like pros and cons of trading stocks as well, which I'm going to get to a bit later because I run into liquidity issues sometimes you're going to look At a recording as well. Like when I trade options with stocks, it's still difficult but because I trade options, sometimes I am like the 40% of the volume at the market open. Like tie that the market open. Eventually it increases, but my fill is a bit more skewed because of of the volume in the options market.

It's kind of like the payoff. Right. So like the pros and cons is that as we come lower in this scale that we have drawn out and then beneath this could be like your small cap as you mentioned. But if you go into the small cap realm, you're looking at huge fluctuations in price which yes, you could say edge and volatility. But equally liquidity becomes a real issue once you're trading. Even not significant size. Right. It can still run into that issue as well as, you know, being trapped in trades essentially on that smaller cap side. So there's always like the pros and cons to be aware of. Even just as through the example that you've shared here as well.

Yeah. So as I mentioned, like for example, the leverage is going to keep on going down because broker never wants to lose money because of your trade. So the leverage will keep on going down as the market becomes more inefficient. But that's good because you have an edge in the stock market. You don't have it in the forex market. The broker is giving you 500 to 1 margin or they even have book B, like it's called B book. Right?

Yeah, people.

That's right.

Because they are betting against you losing money. Yeah. So they want to keep the money, they want to keep the commissions. It won't happen in the stock market. I know like with big brokers like IBK or whatever, interactive brokers, if I buy something and they have shares to sell from another kind of their own client, they're going to give it to me. But it's still going to be registered as a centralized volume. You will see that volume in the market because when I sometimes place an order, I have the recording of it, I can see the volume going up. So it's very centralized. I actually see it in real time. But with forex you can't see it. So the leverage, the high leverage, especially like anything you see that is very high leverage. That means it's too good to be true. If it's too good to be true.

It'S too good to be true.

So if it's 500 to 1 margin, I know like very good forex traders, they won't use this margin they will lose. Use maybe like 10 to 1 margin. Use the margin because it's not moving a lot, 1 to 2%. So you need the margin to make money. But don't use like 500 to 1 margin because you're going to keep blowing up your account unless you know what you're doing, which is again, very few selected forex traders. So let's now talk about my strategy, which is the market DNA strategy. I gave it this name because it's fun one to give name because everyone is giving name like ICSMC. But again like ICSMC, they all work. Everything works if you know what you're doing. Like I said, the bull flags work, the bear flags work, everything works. ICD works, SMC works if you know where the buyer and sellers are. Because ICT doesn't create the market, the buyers and sellers, that the buyers and sellers create the market and then the market creates these patterns, ict, SMC and the indicators and everything. So what creates the market is, as I mentioned earlier, buyers and sellers. Buyers and sellers, they create the market and then the market creates the price action that you see. Price action, just pa. And the price action kit creates the indicators that you see. So I talk about this a lot. When you start out, you start focusing on it, which is the wrong side. If you start focusing on it, everything.

Will fall into place.

So you need to start in a.

Way people start backwards, right? They start indicating and then they might, if they look, you go to price action and they go this way versus the other way.

Yeah, yeah. Now there's another thing I briefly touched on this topic. Like more buyers and more sellers. So I'm going to ask like one question to our viewers. Is that say if you have like 100 sellers here.

People say that there are like okay, more sellers and more buyers. More buyers. It moves the price action. I actually know what they mean, but it's just like my brain. I can't understand the fact that if there are like 100 buyers and 100 sellers. Yeah, it's like it's a weird, like you won't see that in the market ever. Like equal buyers and equal sellers. But if there are equal buyers and equal sellers, nothing is going to move.

I always think about that.

Why? Like because you need to keep asking the question why? When you journal as well, you need to ask the question why does this happen? Why do the indicators work? Why did the bull flag work at 250 and not now? It's not working at 480.

Why?

So if there are like equal Buyers and equal sellers. The market is not going to move. I don't think so.

It's still going to move.

It depends on how aggressive the buyers are and how aggressive the sellers are.

Are.

So for example, the buyers are more aggressive. Same. Let's take the example of Nintendo Switch 2 again, recently released. So if the buyers and sellers are equal, but there was a lot more seller for that. Because now what happened with Nintendo Switch 2 is like it came down from 800 to 700 to 600 to 500 or whatever.

Right.

So now it's at 500 because there was a lot of supply. But if the bias was still aggressive, more bias. Again, I understand what people mean, but it's just my brain. Because when they're like why? Like there's a bias for every seller. There's a seller for every buyer. So how can be there more buyers? Where are they going to buy? They're buying from sellers.

Right.

So I just think about that because in my university and school as well, I'm like always, why, like why does this happen? Like when you prove a theory to me, I'm like, why? I Was that one of those kids?

Yeah.

I'm just going to keep asking why? So there's a buyer for every seller. There's a seller for every buyer. Like okay, buyers are buying. Where are they buying from? So the thing about me, like when I understand, when I understood this, I now I understand where they were coming from, from. But for like beginner traders, they don't understand like more buyers or more sellers because it just contradicts the sentence. There's a buyer for every seller and there's a seller for every buyer. So it doesn't mean more buyers or more sellers. Yeah, it's like are the buyers aggressive? Because a lot of times I'm going to take real life example of there are going to be like more sellers but the stock is still going to go up.

Yeah.

For example, let's take an example of nvda. I traded this stock. We're going to take a look at the example as well. But that example is after the earnings. But recently I saw like NVDA is near 140s at the moment. 145, let's say, let's say like it's at 140 Nvidia, which is the biggest AI, I would say company. And they had a boom, like 100%, 200% towards the upside. 140. Now let's say there are like buyer sellers sitting at 145, which is like say 5,5 million shares. I actually have seen like recently, last week I saw like a 2.3 million shares order on the stock at one level, which was 145 level, I think. So let's take that example itself because this happened in, in like real time or whatever. So there was like a big seller at 2.3 million. This is real life example. I traded the stock towards the upside. This was last week, on Monday. Again, I don't know when this episode is going out, but there was like 2.3 million shares. And under anything above the price is.

Going to be a seller.

Obviously like anything under the price 135. Say for example, there are like buyers sitting here, 1 million shares. So these are the passive buyers and passive sellers.

But again, like how aggressive the buyers are.

Because to take the seller, yes, there are more sellers at the moment, but the stock still pushed towards the upside.

Why?

That contradicts the theory. Like more seller or more buyers. It works out like. I understand what other traders mean, but if you think about why, why is like, okay, the aggressive sellers, the buyers, sorry, the aggressive buyers, they pushed the price towards the upside. They broke this level, they consumed these sellers, these sellers got exhausted and we saw a push towards the upside. Right. So new buyers came into the picture. Again, that says like, okay, there are more buyers in the market because the new buyers came into the picture. I always want to know how aggressive the buyers are or the sellers are. Because just looking at more sellers and more buyers, because if I look at the market depth that I'm going to show you the platform, it will say 2.3 million shares seller and 1 million buyer. If you think about that, if you're explaining this to a beginner trader, they will be like, more sellers. Yeah, more sellers, less buyers. Why don't you show it? But they are like, okay, there are the other market orders that are able.

To see how we can identify aggressive buyers or sellers.

Yeah. So there are like I would say two participants in the market. Those people who are sitting and those people who are actually putting the orders in. So these are sitting in the market. What people are doing on the sidelines. Because this, everyone can see, you can't trade based on this. Like, there are more sellers than the buyers, but the stock still pushed towards the upside. What are these people who are waiting on the sidelines, they are doing, Doing. That's what moves the market. They don't move the market.

They want the, they want the shares.

Like, okay, 2.3 million. Okay, they want to sell the shares or Maybe short sell it or whatever. But the people who are sitting on the sidelines, are they more aggressive buyers or they are more aggressive sellers? That's what moves the market. If I'm seeing an order at a major level, I get this question a lot from, from my students and the discord community as well that why did you short it? Because why did you long it? Because there were like more sellers here. I'm like, okay, there are sellers at obvious level 145. I expect them to be here. But what is the annoy anomaly? Anomalies are like, okay, if there's the people who are sitting on the sidelines, are they more aggressive buyer or they are more aggressive sellers? That's what we want to know. We don't want to give like yes, we should care about the passive seller because before this day there was the same level. It had 1.3 million shares or something like that.

Yeah.

So we know like, okay, to take this order we will need a lot of bias. But that okay, even if that order gets consumed, gets exhausted, we will need new buyers to take it towards the upside. Otherwise you're going to see a fake out. So that's why, like why? If you ask the question why? Why did it break out versus why did it fake out? That's what you can get the answer by looking at the buyers and sellers, the market depth. You can't get that answer by looking at the indicators. A lot of like break and retest. I trade that strategy a lot, break and retest. But my brain of again asking the question why? We can take an example as well. A lot of times the break and retest is going to work. This is the break of a level. Say break of a level, retest of a level, work towards the upside, break off a level, retest. It's going to fail. It's going to fail. Like, okay, you take a loss right here which is completely okay. And it worked out. This is your risk, this is your reward, which is really good. It worked out. But again I just want to keep asking the question why? So there was an example on Tesla recently. We're going to take a look at that example.350 pullback. Once it pushed towards the upside, other time it got rejected. And I can see that on the table. Why did it reject? I trade this break and retest towards the upside. But then the next time it failed, I shorted this stock as well. So break and retest, bull flags, everything work. But if you just focus on the buyers and sellers, it gives you that extra Edge and extra sort of confirmation that is the first thing and the pros of buying and selling is that if you'll focus on this, your risk to reward. There's a very common saying in the market that. That hold your winners and cut your losers. Yeah, hold your winners and cut your losers.

Right.

My main issue recently has been holding my winners because I don't have any issue with cutting my losers. And my risk is very small in most cases compared to the reward that it's so small that I cut my reward very, very quickly. I'm going to show you like a few examples. I could have made like $100,000, $50,000. I made like $3,000.

Wow.

So, yeah, the reward part now is risk to reward. It's called risk to reward, but it's actually reward to risk. Because when people say risk to Reward, it's like two to one, but the reward is two times and your risk is one. So you're risking, say $1 to make $2. Say, for example. Yeah. Four to two, for example, says two to one. So you are focusing on increasing your reward right here. Yeah, but that is kind of a linear growth because if you focus on the. I don't know what is called denominator is this. I don't know what this is called, but if you focus on lowering that, this, this will go up exponentially. I'm going to take two scenarios. The first scenario is going to be you increase your reward by $1. That means it goes from 4 to $5 and the risk remains the same $2. In this case, your risk to reward is say 2.5. And the next scenario is going to be, say you keep the reward the Same, which is $4, you reduce the risk by $1. Same like I just added. This was 4 plus 1 right here and kept it the same. This is 4 and 2 minus 1. So in the first case, I added 1 to the reward. The restored word is 2.5. In the second case, I kept reward the same. I reduced the risk by $1.

It's $4.

Yeah.

Mathematics amazing, right? 2.5 versus 4. So it's more worth your time to focus on lowering your risk, which you can do with the help of market DNA strategy. Because then you can look at where the sellers are actually short it. Right. That seller, like I'm going to show an example just after this. Nvidia had a big seller right here. I shorted this, like, okay, it sold off. I sorted this right here. All the. If you just focus on price action and the Indicators, you might short it right here. Yeah, I shorted the stock right here. So my risk is this much, your risk is this much. And the reward is going to basically be like maybe right here, 141 or something like that. So my reward is higher. Right. But my risk is significantly lower. So that lowering of risk, that means you're focusing on the denominator. If you focus on lowering that, that the, the reward to risk ratio goes up exponentially. Because if you focus on lowering the denominator, the whole value goes up exponentially. So that's my strategy.

No, I love that. And I think risk to reward is such. One thing I've noticed from interviewing like verified traders is once they have their consistency down, risk management becomes a large part of their growth. You know, when it comes to scaling their, their trading journey and their capital and returns, which is fascinating because it's such a, as you say, it's a very simple formula and simple things that you can do and adjust, but it has such a exponential change to your trading. One thing I did want to ask and something that's kind of like a theme is how important do you think it is for traders, regardless of whether it's this or anything within what they're doing within their trading and trying to learn of asking questions as why this happens. Right. And not only asking the question, but then actually going out. Because I'm sure you did the same where you asked test, but then you went and found the answer.

Right.

And researched and took action to find the answer for that question. How important is that as a trader though to be able to ask good quality questions and not just, yeah, someone said this is a bull flag, this is how it works. And you just follow that. That's it. How important is it for you to ask, okay, why does this work? Why does this happen? Why does when this happen, this ends up happening on this other, you know, asset or pair, whatever it may be.

Yeah. So the question why it's very important when you look at the technicals, but also emotionally as well. Because when I look at my journal when I started out like in 20, 19 and 20, my journal, okay, yes, you can look at, okay, I'm looking at the 9 and the 50 EMA, 9 and the 20 EMA crossover. I'm shorting it.

But why is it happening?

That led me to this path of looking at the buyers and sellers. The other part of is like the mental side. For example, a lot of journals are going to be. I look at a lot of traders because I want everyone to Succeed in the market, which is statistics. Statistically not possible. Like maybe 5% of the people, I don't know what the statistic is. Like maybe I would guess 10% of the people make money, but 5% are actually making money. Because if the other five person are going to be better off having a job or something else because they're not, they're pretty much breaking even or maybe slightly green. And out of those 5%, that one or two person are going to make the big amount of money. Yeah. So I would say I am still in that five person. I want to get to that two or one person still early on in my journey. That's what I feel like. But the mental side is like, okay, okay. People are like, I held on to my winner. Oh, sorry. I held on to my loser. Holding on to winner is a good thing. I held on to my loser. That is the only journal.

Okay.

The journal will be like, okay, screenshot of a chart or Tradezilla. You mark your mistakes and the mistake, like I have, I have a mistake on Tradezilla. I held on to my loser. Held my loser. Which happened, which hasn't happened in a long time. Now I just cut my loser based on my strategy. I held my loser. Why did you hold on to your loser?

Loser.

You need to ask the question why? Like if you just mentioned that I held my loser, you're going to keep doing the same thing tomorrow as well. Like, you need to answer why? Like, okay, there was something going on in your mind. Maybe you sized up a lot that you did not accept the risk. For example, you sized up on this trade in your head. You were only willing to risk hundred dollars, but because you were down $200, you couldn't exit. And you, you were hoping that it's going to go back up. That is going to be a proper review. That means the next day you have an actionable step, step that you need to lower your position.

Sizing.

But if you just say, okay, I held onto my loser. I'm not going to do it tomorrow. Tomorrow again you're going to take the same size, face the same emotion, make the same mistake. So if you ask the question why, it becomes very easy. Keep asking why until you get to the root cause. Why did you size up? That might become personal. Like, okay, I need to buy a.

Ferrari tomorrow or something.

So this is like, you just need to keep asking why. Like, okay, I, I held on to my loser because I size up. Why did you size up? Do you want something to pay for? No, my life is good. Then why did you size up? Take it slowly, like, okay, if you want to size up, don't go from 100 to 200, go from 100 to 120 or 100 to 140, something like that. Slowly size up, don't go from 100 to 200 because then you're going to again face these emotions. So when you look at the emotional side, technical side, if you keep asking the question why, you're going to find your issue. And trading is very personal. The issues I had in my life or like, what is money for me, it's going to be different for each and every individual. So you need to ask your why and work on your why and then answer that definitely.

Let's take a break for a minute there, guys, because I want to tell you about our incredible sponsor, Trade Zella. Tradezella is the number one trading tool in the entire trading industry. TradeZella allows you to become a more profitable trader, allows you to make immense profit progress as a trader, no matter if you're a beginner or an advanced level trader, because it makes journaling easy. It makes journaling something that is fun and enjoyable and something that is interactive. So no matter if you're a crypto trader, no matter if you're a futures trader, no matter if you're a forex trader, no matter if you're a stock trader, all you have to do is select your broker, your platform of choice, and connect it to Tradezella and it will automatically sync your trades and pull all of that data onto the dashboard. Making journaling and finding your edge and adapting your edge so easy. In collaboration with Tradezella and Chart Fanatics specifically, we are actually getting the playbooks from the episodes that we're filming with these incredible verified traders and adding them as playbooks onto Tradezella. So you can actually go on there and see the rule sets already predefined to. So make sure you check that out as well. Now you can actually get 10 off your monthly subscription using CF10 on Tradezilla right now. But more importantly, I would say CF20 for 20 off your yearly subscription with Tradezella. The links for Tradezella are in the description below, so make sure you go check them out. UCF 20. Get 20 off your yearly subscription. Become a better trader today.

Now let's get get back to the episode.

Yeah.

So now the pros and cons.

Pros and cons.

So with the market DNA strategy, you can lower your risk exponentially. You're actually focusing on the market sentiment what moves the market? The bull flag, bear flags, everything works. So it, it's what moves the market. You're looking at the market sentiment. You can lower your risk exponentially and this can be traded in any sort of market because. Because buyers and sellers is what create the market. So if they stop, the market won't stop. So you have bigger things to worry about then if the market is not there. But if you're focusing on the, it's like it's very universal. Like if I look at the market, the buyers and sellers I can focus on, I can move to futures. That's my next step because I run into, as I mentioned, liquidity issues. That's my next step for this year as well. I need to get, learn more about futures and trade. Get into a bit more futures.

Yeah.

So it's very universal. There's, I would say the con of the strategy is nothing, honestly. Because everyone says that. Okay. The con of the strategy, it won't work in this market environment. This is going to work everywhere. Like the market DNA looking at the buyers and sellers is going to work in everywhere. But the con is only I can say that depending on the market conditions, you have to size up or size down.

Okay.

Yeah.

Because the thing is when I'm looking I know I don't do really well in a range bound market which I can know from the buyers and sellers. So I just have to size down here. So there's no con of the market, the market DNA because you're actually focusing on the buyers and sellers. Like I can't say for example if you're focusing on the nine EMA strategy. The con is that it's going to work in a trending market. It's not going to work in a range bound market. But I personally like to stay away from the range bound market and I can short it depending on the market DNA as well. So that is the pros and cons, cons wise.

This is also not necessarily like what's bad about this or anything. It's more so like what to be aware of.

Would you say that?

Because obviously you, when looking at buyers and sellers, would you say are there any time restraints or commitments you would need to have when, when looking at the market in that way?

Yeah.

That is a con that you need to work a lot. So I have screen recordings, I record my trading session every single day. I have the book map feeds as well that I can go back and look at the live trades and what have it happened in the market. And I also have my Execution screen recording. We're gonna go through maybe one or two screen recordings as well. I record my executions, my emotions. I can actually see my face face. So I look at my face like, am I too uneasy or something? So it's like, that's why, like, my.

Why is that?

I'm gonna keep looking at myself when I'm trading sometimes. Like, I took a really good trade, I exited early. Then I look at my emotion like I was scared, I was not willing to accept the risk or something. So I record my screen every day. And that's why a lot of people say that, okay, I don't know what to look for in level 2 and the market depth and everything. The first part is the knowledge, what to look for. Because when I started out, you don't know what to look for. You just need to look for. I have talked about this word multiple times. Anomalies. That's what you need to look for on the level two. We're going to take a few examples and once you know that it's all about then executing your trades and then your execution will come into play. When you look at yourself like, I like to record the screen. I have been recording my screen for the past, like three or four years. I have like external hard drives and everything. But then recently, a few months ago, I exited one of my Tesla trades very early. And then I was like, why am I doing it? Like, why am I like, I need to look at myself when I'm trading. And then I. I think I watched one of your podcast. That guy records his screen. And then if that guy is uneasy or feeling uneasy, I don't know, like, if it was your podcast or somewhere else. So I started recording myself.

Yeah.

So the screen recording is there. I have a small face of myself as well. So when I'm feeling like, okay, I'm just like, I like slouched over or something. I'm like, okay, I'm uneasy, so I need to take a backseat or something.

So it's.

You have to go through your screen recordings. Market DNA takes time to understand. Bull flag or whatever. You might take one or two days. It's going to work out. But with market DNA, you have to put constant efforts because the market keeps on changing and the DNA also keeps on changing.

You have to adapt.

Yeah, the buyers and sellers keep on changing how aggressive they are. Like if they're sitting on the sidelines during the Trump market, you see aggressive buying, aggressive selling. So you have to keep adjusting and learning from the market DNA. And when it comes to as I mentioned, I trade stocks, but I use options to trade stocks.

Yeah.

So options is kind of a leveraged product for stocks. It's also for futures, but it's similar sort of, I would say forex margin in the stock market. That's what I like. So the pro is that you get a lot of leverage with stocks. I'm going to take a few examples that the stocks, the options move like 200 to 400%. You're looking at 500 to 1 margin. But for example, you invested $200 on one option contract. That move moved from 200 to $800 in like 5 minutes or 10 minutes. So it's very nice. But sometimes you run into liquidity issues. Like last day itself on Friday, that was the last trading day I placed an order on Tesla. Same day expiry 0 day 3 expiry 400 contracts. And like when I placed my order the total volume on that option contract was like 1.4K. So I basically did like 30% of the volume. So as of now I haven't faced that issue. And that also happened because it was just the market open. Like if you wait for a while because when you look at the option, yeah, the volume starts with zero with options. Every day, Every day, every day with stocks as well, the volume is going to start with zero but eventually it picks up. But when I place my order, like I could see it, my order was a bit pending because the liquidity issues again. But if I place an order right at the market open, sometimes I face that issue like 400, 600 contracts or something. When you trade like Tesla, especially with spy, it's pretty easy. That's why you have to be selective with these, the tickers you are trading, you can't just trade a random ticker and expect options to have volatility based on the size I am taking. So you have to be selective based on watch contracts and eventually it's going to catch up. So I know that I'm going to reach a barrier that. Okay, when I say, for example I can't place like thousand contracts off the open, I'm going to get filled. But it's like I'm going to fight for the fill and most likely I'm going to lose money because of the not getting a good fill. So eventually I'm one like, okay, I want to incorporate Es into my trading as well because. Because what took me, I know this sentence nicely, I stand by it that what took me from say 3k to 7 figures now is not what will take me from 7 to 8 figures.

Interesting.

So I need to change some things because from if I'm trading the same size like thousand contracts on Tesla, like my goal is to invest $200,000 which I have done previously on options, which is a lot because then your risk is like 15, 20%. So I'm risking like 20, 40K on one trade. So that is my goal moving forward. So which is going to be okay with like 200,000 investment or 500,000 investment. But I can't imagine placing a million dollars worth of position on Tesla option contract right off the market open. So that's where futures will come into place as well. So at the moment I'm developing a strategy or I'm working on trading futures. I have opened an account and everything. So I'm going to start trading futures as well because this will take me like from a million to 2 million or whatever. It's going to be slow growth. But if I incorporate futures as well. And one more thing like swing trading as well, higher time fr, which is kind of against it what I do market DNA because I'm looking at quick buyers and sellers. Yeah, but swing trading is going to be another arsenal that. Because with swing trading, especially with options like you don't even have to look at for these like 200 to $800, sometimes you risk the whole amount, for example, that if you're risking, you're sizing for zero. Yeah, that's my goal for swing trading. You have to size for zero because then with day trading, when you say.

Swing trading, what's your time horizon? Horizon.

More than 24 hours.

More than 24 hours, yeah.

So that is swing. But my time horizon is going to be like a few days.

Okay.

Okay. So I'm going to trade the next week or the following week expiry contracts or the monthly expiry contracts as well. So there are like every, every third Friday it's going to be monthly expiry contracts on that option and every Friday it's going to be the same, the weekly expiry contracts. So that's what I can do. I can move to from like swing trading. But for swing trading my goal is that because. Because if I'm getting into swing trading, I don't want it to affect my day trading. So I'm going to size for zero. So I'm going to start out small and I know with swing trading you can get like 200, 300% return as well on like options. So even if you're sizing for zero, it's still two to three hour trade.

Got you.

Yeah.

So now we're going to go over.

Actual trade examples showing the market DNA playbook and concept that we have gone over so far on the whiteboard and we have multiple trade examples, live trades as well, live trade recordings. So super excited. We're going to dive straight in.

Yep. So the first example is going to be, I'm going to take recent examples except one which is still from February this year. I think January or February this year because that was based on newscast, one of the easiest trade of my career. But I'm going to take recent examples from May and June this year. And so this is from 28th of May, which is like maybe two or three weeks from now. We had earnings with Nvidia. That's why I'd like trading stocks because you have these earning seasons that you.

Know are going to.

Yeah.

Every three months.

Months.

So the stock is going to be play in play for like those like two, three days. So Nvidia, Tesla, Meta, Microsoft, Amazon. I have these bunch of like the basket of stocks that I trade and they have earnings like every three months. And Tesla is going to have some sort of news every single week because of Elon Musk. He's going to tweet something and Tesla.

Is going to go.

So this was Earnings play on NVDA. Nvidia reported earnings 28th of May after market close. So if you look at the chart, this was 28th of May the day before, before the stock gapped up. So now instead of marking, because a lot of people talk about the. When you have to look at the buyers and sellers. I don't like people say mark your levels on the higher time frames. Yes, you should mark your levels on the higher time frames. But how many. I know a lot of traders, they are going to keep marking like multiple levels. I know a lot of traders, they want to mark like 15 different levels on the higher time frames. Like, because even on higher time frames I can mark this level. I can like it makes sense.

Right?

Right.

Yeah.

This level. Yeah, I can mark like okay, this day was here. So I can mark this level. Then I can mark like this level. So I have marked like five levels already. And then I can mark like high of these days, this day as well. I can go on the weekly chart as well, mark a few more levels. Hourly chart, mark a few more levels. But I don't like saying levels, but levels of significance. That's what I like. I want to focus on where the major buying and selling happened.

Interesting. Yeah.

So this was a playbook opportunity for me after nvda because Nvidia, this was the earning. You guys, you can see the green here. So the next day it reported earnings after market close on 28th of May, on 29th, you can see the gap up. Yeah, it gapped up, but now it's a playbook setup for me because where it's gapping up to this major level. Why is it major? Because if you see before that this stock moved approximately 26.93% towards the upside. That is a significant level. We had a 26.93% push towards the upside. We got rejected from there aggressively and we push down. How much? 26.96. Sounds like a coincidence. 26.93 and 26.96. But yeah, it approximately moved 27% pushed towards the upside. Sellers stepped up there, moved 27% down.

Yeah.

So that is a significant level for me. I can mark the high of this day as well.

This day as well.

But these are not that significant. Yes, these are higher time frame levels still, but I can mark 50 at the levels. But before this day, before the market opened up, I just had this one level. I'm like, this is a level of significance for me, for the market.

And that's where it started.

Yeah. After 27% pushed towards the upside, the sellers stepped up here, pushed down aggressively. Again, it won't be a level like, because when I marked this is 143.44. So it's going to be more like a zone.

Yeah, of course.

143.3 to 143.5, something like that, depending.

On the stock as well.

So that is something I'm like, okay, my game plan is if we hold above it, I'm to going to look at a push towards the upside. If you hold under it, I'm going to look at the push towards the downside.

When you say hold, are you looking at specific time frame, close or like a daily or. Or just once we break above?

That's where the market DNA comes in. Because when I look at the market depth, the sellers kept on stepping up at 143.5. So I'm going to wait for these sellers to finish. And sometimes like that's why I took a trade at 145 breakout. Sometimes I feel like waiting for the candle to close is a bit too late.

Late, okay.

Because it, it messes up with your, your risk to reward. And that's why the market DNA, when you actually look at the buyers and sellers and instead of waiting for it to close above 145 or 145.5. You can actually look at the tape that, okay, took that order. You can look at the market depth. There are no big orders, so why not enter now? Why to wait for the candle to close? Because candle is again form formed by the buyers and sellers. So if you focus on the buyers and sellers, you will. You can get a good entry.

Yeah.

So this is a level of significance for me. That's what I like. This is very important level for me. Even if you look at the weekly chart and the monthly chart, it's going to be an important level. And again the sentiment, understand the market sentiment. It's not about bull flags or bear flags. Understanding the sentiment, 27% push up, 27% push down, which is insane for a stock like Nvidia. So I just had this one level and if it holds above it, I'm going to look at the push towards the downside. By hold, I mean hold on the dip and the market dip, not on the price action and a hold or maybe a rejection from it for a push towards a downside.

Downside.

So let's now take a look. NVDA reported earnings stock gapped up on 29 May technical breakdown which I've just broke down sentiment around 143.5 which is a level of significance for me because it's a very important level. So this is the screenshot before I place that trade. I only had this one major rejection zone. After 27 push up a person push up and 27% push down. So if we hold above this look for longs, if you hold under this look for short, what happened after past few years, this is very important to understand because what I feel like it's every stock has a personality, like every stock has a personality, like every forex pair is going to have a personality.

Yeah.

And especially you can see the personality on the tape as well. For example, on Tesla, 100 200,000 shares is a lot. On Nvidia, as I mentioned, 2 million shares. So every stock has a personality. How the buyers and sellers react with each other, how they interact with each other. It's like going to a different sorts of casino and seeing that the vibe at Las Vegas is going to be different than Vibe in Dubai. Why we have a new casino here coming here in uae. So it's going to be very different. Right. So this is a casino like we are gambling our money, buyers and sellers or whatever. But the vibe is going to be different at Every place. So nvda, I know the personality of this stock. Even if you go back, sometimes a stock like Tesla, it does a lot of gap and go. It's going to gap up and push towards the upside. With nvda, anything can happen. Like we can see after this, earnings right here. I remember this day. I made decent amount of money on this day. I don't remember exactly, but this was 2020 after the earnings. Similar sort of setup. Gapped up, pushed up, got rejected heavily. Yeah, from 150 it got rejected heavily and we could see the seller on the tape. This was without any news, Catalyst gapped up, sold off. We can see a lot of gap ups. They work out as well. Like a gap up right here, like right here. It worked out. But basically after earnings, anything can happen with this stock. It's like roll off a dice at the moment. 50, 50%.

Yeah.

With Tesla, I'm going to be more inclined towards the upside because of all the sentiments surrounding it. Usually it does good gap and go setups. With nvd. I know, I remember after earnings because I made money on this setup. I remember this time after earnings we had a gap up. Really good example. Like, look at this. This like red candle after the earnings, we gapped up, sold off aggressively, straight back down. And this was how you come in.

That's what you're saying in terms of personality. Like Nvidia has shown you time and time again its personality, its hand, what it likes to do on a more frequent basis. And therefore by understanding that you're already setting yourself up for a bit more confidence, bit more clarity of what you're looking for and hopefully not to be surprised. Obviously we, as you said, like with earnings, anything can happen, but by knowing the personality of that particular stock or pair or whatever it may be, it's going to allow you to just have a bit more confidence and be a bit more prepared for, you know, a particular situation. Because it's shown you that this is what happens time and time again.

Yeah, yeah, exactly. And this was 11 post down. So if you're trading options, 11%, say if you went for say 125 puts or 130 puts, this was easy, like 400, 500 person winner on the options. So they moved crazy. 11% push down on NVDA, it's crazy. So, yeah, and we also have seen Gap ups and Gap push towards the upside. But anything can happen with this stock. So it's like for me, heading into the market open, I'm 50, 50%, I have my level of significance. If I see strength on the tape around this level, I want to take it towards the upside. If I see weakness on the tape around here, I'm going to take it towards the downside because anything can happen 50, 50%. With Tesla I'm going to be more like 70, 30. If it gaps down I'm going to look for shorts. If it gaps up I'm going to take it towards the upside. 70, 30%, something like that. So that is just based on my experience and that's why I like trading the same bunch of names. The viewers can take screenshots like pltr. I might remove it at the moment it's in play. Had a crazy rally towards the upside. Yeah, Circle was a recent ipo. This freaking moved up.

Like I've heard about this.

Honestly I watched that Cathie Wood podcast with Diary of a CEO and it was consolidating right here. I was at the gym, I was like it's consolidating, it's a recent ipo, it might sell off. I wanted to add this stock to my long term portfolio. I was like okay, this is just a recent IPO and it pushed towards the upside like 127%. So this is like these are the stocks. They will be in my watch list for a while but eventually I'm going to just remove these. But Tesla Coin, NVDA Meta amd PLTR has been there for a while now. Apple, Google, Microsoft, Amazon, Netflix, Arm Mu. And then I have this AUD USD because my AUD USD love and yeah, so I can actually go back and say look at this NVDA's price action, the trend trends and compare that to AUD USD. The edge is right there. You can just look at the price action. Don't have to be like okay, you can look at the price action. So now let's go back and take a look at what happened with Nvidia. So I have my level of significance 143.5 zone. And if you reject from there I'm going to look for shorts and if you go towards the upside then I'm going to look for longs. And the personality is that after the earnings it can push up or it can sell off. So I have my plans for both the directions of course.

Yeah.

So now this is the 143.44 level which we marked on the higher time frame. We had a push towards the upside right here, got rejected. We can see that on the price action. It's a doji on the price Action. I think it's called a dragonfly or a hammer doji. I don't know the names of the doji. But we got rejected right here. I'm still not taking it short because usually when you see a gap up, it might go for those buyers again, of course, and then might sell off. So you have to understand the sentiment. Right, right here. So the first time at 143 I can see. So this is the bookmap software that I use. So it shows the actual orders sitting in a graphical representation which is very easy to see. You can even see that on the actual montage and the Level 2 box. But it's just easier to see where the big orders are sitting. Like 144 has 340k shares, something like that. So now there's like a big seller. Now again that big seller and big buyer. If there's a big buyer sitting at 141, it doesn't mean anything. It's about what are the other people who are waiting sitting on the sidelines. They're going to do.

Yeah.

So yeah, 103k shares at 143 we took that order 143.5 got rejected right from that zone. So we tried to push towards the upside. There was like 170,000 shares. You can see the number right here. Never filled that order got rejected. I'm like, okay. It still hasn't touched my criteria for taking it towards the upside. But I took a scalp on it from here till here towards the upside. But I had it in my plan that if it rejects from 143.5 I'm going to exit my position. I actually made like $9,000 on towards the upside. I'm going to show the recording and as well. And then I was able to capitalize on this downside move. So that was the first time. So look at this right here. 143.5 big seller. It's going down. So this is what is happening here on the one minute chart. So I'm looking at the candlestick. I'm also looking at what's happening on the tape. So it pushed down another big seller, 140k shares and 143. There are new sellers coming into the picture.

Yeah.

So that is the new sellers. New buyers, more sellers, more buyers. But that doesn't mean it has to go down. If the new buyers are aggressive enough to push it towards the upside, it can still go up. So especially for these reversal trades, you actually want to wait for these orders. To go through and wait for double triple confirmation. Like if you're going with the trend, you can be a bit more aggressive for reversals. You just have to wait it out.

How would you identify sort of aggressive buyers or sellers just based on the size of orders that you're seeing?

The size of the orders are the passive orders. And these dots are actually the orders that are getting filled. So these are the green dots are like people are hitting the ask price. These are getting filled near the ask price. The reds are getting filled near the bid price. So at the moment we saw some aggressive buying. But if you look at green and red, it's pretty much equal. Now I'm going to look at a few of the recordings. You can see clearly see a lot of green people are the aggressive buyers are coming into the picture. This is pretty much I would say 50, I would say like 60, 40% green. Right here we saw an aggressive buying. I was able to catch this push up. But after this consolidation, during this consolidation it's basically 60, 40%. Nothing standing out a lot.

Yeah.

So another big seller at 143. I'm like still. Okay, it can still go towards the upside. It's looking like a break and retest if you look at it. We had a push towards the upside break of this level. It's retesting this level for push towards the upside can happen.

Go back143. That bias broke that level after a few seconds. This was at.

17:42, which is like 9:42am this happened at 9:42.

It just broke that.

That order. We filled that order. Another big seller. 180, 190k shares between 143 and 143.05 new sellers keep on coming into the picture right here. So we had a sell off right here. We got rejected from 143 to 143.10. We got rejected and that's where I shorted it. So we broke that level. We took those sellers again right here. We took those sellers. Then we had another new seller right here. I placed my order right here.

Okay.

And my stop loss was a break above 143. And then I was able to catch this push towards the downside. Let's play the recording now. So this is my live trade recording because I record my sessions every day. You can see myself, you can see me right here at the bottom. But I don't know if it's going to be visible in the video. Yeah. So we had a push towards the upside. I am like in 592 contracts at the moment. Which is, I would say if you look at 145 calls, it has 11,000 shares. So which is not 11,000 contracts at the moment. It's not huge. So we had this push towards the upside. Now I'm gonna. When I saw that seller coming in, I'm covering my position. But when you look at the selling right here. So I saw the book map that okay, it's getting rejected from this 143. So I'm looking to trade 140 puts right here. 140 puts. This is my order window on the right hand side. On the left hand side is the actual, actual trade and the price transaction on the, the book map I keep on the left hand side. So yeah, you can see I'm glancing on the book map right here. I saw that big seller. I placed my order 100 contracts. I'm going to start with 100. And then when I saw that big seller, I'm like, okay, this is going to go down. I have like extra confidence like it's going to go down. Based on my experience, there's a 90%. It's not like still 100%. Anything can happen. Of course 90% is going to go down. So 300 contracts right here. And then I added to my position 500 contracts. And yes, so and then we, I took my profits. Yeah. So you can see like $21,000 on that downside trade. Overall I made $12,000 on the downside trade.

That's a fast trade as well, right?

Yeah.

So $9,000 towards the upside trade. Wow. But it was a fast trade. I was holding onto my winner for a bigger push towards the downside. That did not happen unfortunately. I was like, okay, it's going to pull back and continue downside. Some buying came in eventually. It actually sold off. If we go back and look at TradingView, it actually sold off. But I was expecting a bit more cleaner sell off. That did not happen. But I still made like $12,000 on the downside trade and my risk was very minimal because if we go back and look at the recording, my entry was 142.8 ish. My risk is right here. My reward is right here. So my risk to Reward is like 4 to 1. And I can imagine a lot of traders based on just purely price action they are going to enter right here. Yeah, I entered right here. So that makes all the difference because as I mentioned, if you focus on the lower component risk, on lowering risk to Reward is going to go up exponentially. Yeah.

Well, do you have like an average sort of risk you take per trade or average risk to reward you aim to target for a trade?

For me, it's dynamic risk. I'm a big fan of it. So I, I can go from risking $500 on a Monday to, to risking like $50,000 on a Friday. So I, my risk is very dynamic. If I see a setup like this, I took like 400 contracts. I believe 400 or 600 on Tesla. I took like 5, 600. If it's a good setup. If I'm just looking for an intraday scalp, I see something good on the tape, maybe 100 contracts. So my risk is very dynamic. If I like a setup like this earnings play, the upside play was like 600 contracts approximately. The downside was also approximately 5, 600 contracts. That is on the higher end or high higher end of my position sizing at the moment.

Okay.

But if it's not earnings without earnings, just like a normal price action day without any news catalyst, it's going to be on the lower side of that. So my risk is very dynamic. I have a playbook earnings and use catalyst. If everything settles level of significance and everything, I'm going to size up.

So based on like the volatility and the opportunity that's in front of you.

Yeah, so. Yeah. So let's take another example. This is, yeah, so this is how I entered. This is one scenario. My entry was 142.8. The stop was 143.5. Above that big seller profit target was 141. Whereas where is like where I took my Profit scenario to 142 is your entry. Your stop is 143.5 that you enter.

I think.

Yeah. 142 is your entry. My entry is at 142.8. So I saved like 80 cents on my entry because of the, the tape. And the risk to Reward in the first case is like 3.5. In the second case is only one because you're risking 1.5 dollars to make 1.5 dollars. And in my case I was risking 70 cents on the underlying asset. I'm trading options. But I, I risked like 70 cents on the underlying asset and I made 2.5 dollars. So the risk to reward is like approximately 3.53 or whatever. Like it's higher. 2.5 divided by 0.7. This is 1.5 divided by 1 point. So that is my example of my Nvidia trade. And there's another Trade from this year. ARM news catalyst. This is a screenshot from like Google. So let's take another example. This was ARM 22nd of Jan. This is 1. This was one of the easiest trade of my career I can say because the risk to reward was insanely high on this trade. So this is the Stargate project. This was a news on 22nd of Jan that the government will be investing $500 billion with ARM playing a key role as a technology partner. Right. So it was NVDA also saw a push towards the upside. It's like Microsoft, Nvidia, Google as well and ARM basically. So one of the easiest trades of my career. So if you look at ARM levels of significance again, so what we did. Let's go back and open arm on TradingView.

So this was this day. Like you can even look at this chart on the daily chart. It's standing out crazy. So if you look at this day, I only had one level. This was after the gap up. We had the Stargate news. It's gapping up. So it's again stocks in play and normally in the market something crazy is going on.

Is gapping up.

I was looking at the other stocks, Nvidia and everything as well. But when I realized that ARM is near my level of significance, I want to focus on it. Okay, so kind of similar setup. Yeah, so kind of similar setup. Right. We had a major level but on arm I'm taking, I'm trading it towards the upside because it's very positive news Catalyst. With NVDA we saw the personality is like gap up. Can, can sell off. With arm it's like a different case. Gaps down, sell off, gaps down. Like we had this crazy rally. This was kind of an exhaustion squeeze. I have a, a playbook on it. Gap up, push towards the. So usually ARM is a stock that is like it really moves. It's going to move maybe five times in a year.

Yeah.

But the day it moves, the price action is really good. So this is a level of significance because it's crazy. You can see the high of this day is like 164. The high of this day is 164.16. So I'm like, okay, I only have one level. I don't have like multiple levels because you can mark this was after the fact. But this was this day right here. Start target news. We are gapping up near 160. I'm like, okay, if it gets the news, if it has the news, it's going to have the volume. If it gets the Momentum, it can blow past like164.164 can be my good entry point. And I'm only looking at this stock to the upside. I'm not trading it towards the downside.

Yeah.

So let's see what happened here. So arm right here. Level of significance. Similar setup to NVDA. We are rejecting 164. We have rejected 164 twice before previously. So now I'm just looking at the stock a hold because of this positive news Catalyst, a gap and go setups for opposed towards the upside side. So this was like, look at this price action. Look at this price action. Like there was no reason to exit. And that is what I was telling you. I exited because I was not expecting it to do like this. Keep going like this. Was I. I only took like 100 contracts because this was January. This is more like $20,000 worth of position. The trade you saw on Nvidia was more like 70, 80k worth of position. And with options, you don't get margin. Like I don't get margin. I don't know about other brokers, but that is your own money that you're putting in. Right. So with aam, because it was January, I like to start out the year slow. I don't want to go red for and just try to play chasing and everything. Yeah, yeah. So just like build up the confidence and then, then you can size up. So yeah, we had 100 contracts at 2.$0 to 2 dollars. They went all the way down. Like I exited all my position at $8.50. They went to like $10. That means. So in simple terms, one contract was worth like $200. In the next 15 minutes they were worth thousand dollars approximately. So $2, like $200 to $1,000. That is a 500% return on your investment. You.

The upside. And I underperformed on this trade heavily because it was January. A bit more scared. I took my profits a bit too early still. I made like $20,000 on this. You can take a look at my entries, like 100 contracts right here. The last exit was around 8.49, 8.5. So $200 converted into $850 in a matter of say from 931 to 943, 944, something like that. That is crazy. Like easiest trade of my career.

For this trade.

I won't even look, look at the tape. I'm like, it's, it's just price action. Don't try to micromanage it. If it's breaking a level 164. Just take it. I'm pretty sure the tape was also really good. I was not. I don't have the bookmap. The feed of this day. Yeah I don't have the recording of this day but the tape I'm pretty sure was was really good on this as well. So just like crazy push towards the upside. Don't micromanage. This trade just went from like you can maybe exit your position if it makes a new five minutes low, something like that. Or I basically exit based on my entrepreneur. Yeah, yeah. You can trail your stop loss, you can trail your profit target and you can also look at the tape if there are new sellers coming into the picture like this on Nvidia. You can take your profits and. Yeah. So $2 to $10. This is a chart of the premiums from Tradezilla. So I invested $20,000. My potential profit on this trade which is the highest reward I could have made was like $80,000. $100,000 would have been the return. I put in my $20,000. I get $100,000. But I end up offering performed heavily. I only made 20k so I'm not comparing with any other person. I'm just looking at the potential profits I could have made had I only stuck to my exit criteria. Because a crazy trade like this, you don't have any reason to exit. Like I don't see any reason to exit except only. It's just your emotions. Yeah, it's like you standing in your own way. So yeah, I still made $20,000 but no reason to compare it with traders who are making a lot of money. It's only about me. Like when I look at my journal, I could have made $80,000 on this trade. But not trying to catch the bottom or top of the market. If I take my partial sizeable, if I make like even 50k out of that 80k, I'm happy with that. Making 80k is kind of unrealistic because scratching the bottom and top like no one told me it's going to reject from say whatever we wish. Yeah, we wish. So based on the exit criteria, I have an exit criteria. If it makes like a five minute candle on high volume, something like that. This is like simple price action. Right. If you look at the volume you see you saw a red candle on high volume. This can be the exit criteria and you make $100,000 with $20,000. So if you're in investment. So this was one of the easiest trades and Overall I made $23,000 on this trade. On that day I made 20k. I took a loss on Meta or something. 115% return but this could have been 400% return. So this is a screenshot of my actual trades, my trade on the stock. Now another example, Oracle from 12th of June 2025. So this happened like a week ago or something? Yeah, Oracle reported earnings again 11th of June 2025 after market stock gapped up on 12th of May. Similar kind of setup to Nvidia. Let's take a look at Oracle now. What happened?

So yeah you can see clearly what happened after the earnings we gapped up. I only have two levels. Yeah, so this was I think the all time high. Sometimes the all time highs of the stock of these stocks are like in 2000s because of the dot com bubble we had in 2000.

Yeah, yeah.

So that's why I always like to go back on the weekly chart and see so Oracle. Yeah, so the all time high was 198.31. I have one level of significance, 191.9 line right here. So after the earnings we are gapping up. We are gapping up near my level of significance. That is automatically my main stock for the day that I'm focusing on. But I exited way too early on this talk because of emotions again. So I'm going to show you. Oracle reported earnings on 11th of June. Stock gapped up on 12th of May post earnings number technical breakdown which I broke down like level of significance, same thing. You can see the theme here. ARM, NVDA, Oracle kind of similar setups, sentiment around 192. So yeah, what happened? Similar to what happened with NVDA. We can see that Oracle moved approximately 26% 192 and then from this level it dropped all the way back down to the same level. So like push up dump. So 192 is a significant level for me. So that's why I'm just not marking 50 levels on the higher time frames. I'm just marking one or two levels. I'm like okay, I want to see.

What happens these larger moves taking place.

The buyers and sellers, the market DNA. So yeah, 26% push up, back down all the way like smack back down to 192. Ah, sorry, what was that? 156. So now what happened right here? We had a push towards the upside, right. This is opposite to what happened with nvda. So I entered my position somewhere around here and I exited Y psychology or something because I know before this day I had a Red day. So again asking the question why? So I just don't want to share my wins on in this video because I'm not the best. Like I made like $3,000 on this trade and I couldn't have made like $50,000, something like that. But I exited because I would just. I sized up a lot on this stock. Even though this was a playbook setup, I could afford the loss. But sometimes your previous red day can affect your execution, of course. So if you don't ask the question why, I can simply say that I exited my winner too early. That's it. Call it a day. But then why did I exit too early? Because I was a bit too concerned, like, but I had a red day previously. So that's why I exited my winner too early.

The hesitation.

Yeah, that hesitation. So this is opposite to what happened with NVDA. We had a push towards the upside with NVDA. We got rejected from that 143.5 level.

Right here. We saw a new buyer here at 194. So we are pushing towards the upside. Then we have a new buyer at 194. So which is right here. So 192. This is the major level. 191.99. We talked about 192 zone on the daily chart. We found support right here. Pushed towards the upside. And when we are push, pushing towards the upside, we are seeing new buyers coming into the picture. New big buyers trying to support the price. So the price is going up and the new buyers are coming in.

Would that almost class as the aggressive buying as well? Is that still passive?

This is passive. The passive in addition to aggressive buying. Because if you see a lot of green compared to red. So I can say just looking at it, eyeballing it, 70% green, 30% red. So the aggressive buying is coming in along with that. The passive buyers are trying to support it. The new buyers are coming into the trade.

Try and push even further.

Yeah. So I think about it like the wall. Let's go back to Nvidia example. I'm going to give one kind of analogy. What have. What happens right here? 143. The buyers are trying to break a wall. You break the wall one time. They're trying really hard. Like they're trying really hard. For example, you're trying to break a wall. Break a wall. And then I tell you there's another wall after that first wall. You're going to exhaust yourself. Right?

Yeah.

Same thing happened right here. The buyers tried really hard. They tried really hard. But the new sellers kept on coming in. There were like 150k shares, 140k shares, 100,000 shares, 200,000 shares. So finally the bias got exhausted and we saw our sell off. So this happened with. Yeah, NVDA same, but Oracle was, was like a completely different story. We saw a hold and push new bias coming into the picture. So the wall is now underneath the bias, just supporting the wall. So even if I'm holding my position right here, I can trail my stop loss to 1 194.

Yeah.

Trail my profit target to 194 if I'm holding my position. So based on the tape, you can easily see if the buyer gives up. Yeah, you can manage your trade nicely. You can put your stoppers.

What software do you use?

This is Bookmap and this is like Trading View. I have a combination of three platforms. Dash Trader Pro, Trading View and Bookmap.

Gotcha. Yeah.

And yes, I made like 3500 on this trade. But if you look at the chart of the premiums, so yeah, my FOMO from it went from 1.7 to $7. I basically exited around $2 and the premiums went all, all the way to $7. So that means you put in $170 of your own money and it went to 700 or something like that. So yeah, really good trade. I micromanaged it. I exited way too early. I had FOMO on it, but I did not execute it again because that's against my rule. Because if I try chasing it right here, that kind of messes up excuse.

The risk to reward. Yeah.

If you miss out on it. Okay.

And if that worked out though, that would get you to do it another time. And another time.

Yeah. So bad habits. And then eventually you're going to lose your account because like for me, I have made these mistakes a few times. But chasing is not one of my out on a setup. I had my edge right here, looking at the buyers and sellers.

Yeah.

Here everyone can enter. Yes, they can make money. But my edge is right here. My edge is lowering the risk because I size up. So if I size up, I want my risk to be controlled. If I'm taking like 500 contracts at 1.7, I can't take 500 contracts at 3.5 because the risk is very, very high compared to the initial entry. Yeah.

So yeah, we can't end this video without this example, my 8020 stock. Because I'm a big fan of that 8020 principle. The Pareto principle.

Yes. Yeah.

So. So Tesla If I look at my stats, Tesla is a major contributor to my PNL. My seven figures. PNL like about 700k or 800k has come from this one stock alone itself.

Yeah.

So Tesla, we can see that tape gives you the answer. Like for example, a lot of time. What happens is that we have this break and retest, right. We had a bull flag right here. Not the break and retest. We had a bull flag right here on the daily chart. We, we had a bull, we had a flag push up, push towards the upside. This worked out. This bull flag worked out. Similar example, similar kind of thing. Bull pennant, people call it bull pennant. It's making a bull triangle. Bull flag, whatever. Same kind of thing. We had a push towards the upside. It's consolidating on low volume so we can look for a push towards the upside again. But why this worked out and why this failed. This was actually the last trading day I took it towards the upside. I was up approximately $30,000 under unrealized on this trade. I exited this trade for like minus $300.

Really?

Because that is the thing with options. I held that trade like it went from 9:30 to 9:33am I was up $30,000. I was aiming for like 7080 day trade. And then in the next two minutes they dropped all the way back to break even. So I just paid the commissions on that stock.

Wow.

I exited for break even, but I just paid the commission.

Is that what you were talking about earlier? About speed being so important?

Yeah, but I was expecting it to break, break above 335. That's how I sized up for. So my, my risk on this trade was approximately 10 to 20k. So 30k was not making the goal. Like that was not the goal. The goal was to make 70 to 80k. Gotcha. But I came back to break even. Trade management, I'm like okay, exit. Don't take the loss if you don't have to. Because I could see that it's, it's rejecting that level. It's not a pullback, it's rejecting. So exit.

So in reflection, this trade, yes, it worked out in terms of getting to the 30k. But that wasn't your target, that wasn't your trade idea. So it doesn't matter that. Yes, in, in three minutes it got to 30k.

Yeah.

Regardless of that dollar amount, that isn't the trade you planned for.

Yeah, that's exactly. But usually I take profits. But for this stock, I was expecting it. I get moved from 390 to 392. I was expecting like I'm gonna start taking my profits around 395. I'm not gonna hold for it to go towards like 380 or 400 or something like that. Not 380, like 340 or something. I'm gonna take my profits at 335 but just like $2 move on Tesla. I was up 30k because I was trading the same day expiry. It wasn't that big of a move. So I was waiting for like my 335 was the first profit target. It never hit my profit target. So I covered the position for pretty much break even.

And that volatility was it because it was the market open?

Yeah, it was a market open. So that's where I. We can see that at 290 right here. So the day it worked out. So now if you look at why this worked out and why this did not work out, like this one failed and this one worked out. We can look at the tape as well.

And no.

So this was 290 right here. We can see from the tape there was a big buyer right at the Open 290 trying to support another wall. Again. Yeah, the wall doesn't have to hold but it's like okay, it moved from 290 but you're just seeing like green right here. Small reds and big green. So okay, there are no new sellers in the market to take on this buyer.

Yeah.

Just trying to support the price. And if you look at the time and sales, these are the actual orders going in the market. There's like green. I have a filter right here that it's only going to show sizes above thousand minimum sizes.

Thousand.

So I want to see where the big money is flowing. More than thousand shares. A lot of green right here. So this is a perfect example. Like this 290 worked out because we are seeing new buyers coming in. Like the big buyer is holding. There are no new sellers coming into the picture, which was the Nvidia example.

Yeah.

So it's just like continuing the push towards the upside. I made like $16,000, like $21,000 on this day, on this stock NVDA.

So the first time.

The first time when it worked out the next day I was up 30k and realized but I lost it. But compared to that tape, like this tape, clean buying, no new sellers right here. Like a lot of green on the time and sales, everything is looking good. But the next time what happened? Completely different.

The complete opposite.

That's why I go back and look at the screen recordings. A lot of people don't do it. Like I don't know how to read the tape. But if you go back, it's pretty obvious, right. We tried to push towards the upside. 332 new sellers are coming into the picture. A lot of red. The big orders are hitting the bid price. You can see that the reds are bigger than, than the greens.

Yeah.

So right here the tape completely switched. That's why the tape changes like every few seconds. So we can see big reds right here, big red orders are hitting the market. That's why it failed. So I can. And that's why asking why, why did it work out the first time, why it failed the second time? The first time, look at the tape and the time and it's pretty obvious. Like it's not like rocket science right here, no new sellers coming into the picture or what. But you just have to go back and look at the recording. And once you look at the recording, go back and look at the screenshots and everything. I play the recording of it every day, every time and then you will have the confidence to actually execute. So we had like, we tried to push towards the upside. New sellers coming into the picture. I covered my position somewhere around here locking in my, my, my break even trade. But then I caught it towards a downside. Like basically we had like new sellers and we can see like a lot of red now what happened, a lot of traders will be like in this instance, the break and retest also failed because we had a push about 330. I'm going to open it on trading view. So if you go back, Tesla one minute chart.

This was just the last day.

Yeah. So 330 was a major psychological and the daily level on this chart. Right?

Yeah.

So we had a push towards the upside. The break in retest is going to be like, okay, enter right here. Right. But I can see that on the tape like we are not seeing a retest. It's a reversal. It's not a retail retest. Right. You can even see that it never retested it. So it's not even break and retest. It tried to retest. But if you're taking it long right here, I can imagine myself taking it long right here without the tape. So if I don't have that, I can imagine myself taking long right here. It's a valid setup. We had a push towards the upside. Green candles on high volume, red on low volume. Basic surprise action. You enter right here for a push towards the upside. But I can see that on the tape. Yes, the volume is low, but there is no green, green volume. There is no aggressive buyers in the market.

Yeah.

And the new sellers are also coming into the picture. So at the moment the aggressive selling is coming in and the new selling is also coming in. So that is the passive sellers along with the aggressive sellers, which is opposite to what happened previously.

And then the lack of aggressive buyers results in one thing.

And then I caught this. Towards the downside, towards the upside. I sized up a lot. I took like. Do I have a screenshot of it? Yeah. So we can see like 330retest kind of failed. It just went all the way for low of the day. I was up 30k on this stock. Like this is a screenshot from my trade seller. 30k right here. You can see like 30k. I covered the position for zero. So I took like some position out right here. Basically I paid the commissions for it and. Yeah, so right here and then downside, I basically made like five, six thousand dollars. Because the downside was not a playbook setup. For me. Like I mentioned, if it's a playbook setup I want to size up. But the downside, usually I like to trade gap and go setups on Tesla. But the downside, I only took like 100 contracts, something like that.

Downside more so because you were seeing. Yeah, what the.

I could see that on.

Yeah, you could see the volume. You could see the sellers were there. So for you was it just kind of. This is a no brainer for me to take something here.

Yeah.

But I'm going to reduce it down because it's not my playbook, not my, my A plus that I'm looking for.

So that is a dynamic sizing coming into the picture. The first trade was like 400 or 600 contracts, something like that, 400 contracts and then liquidity issues. So I'm going to show you this one last recording that right here. So this is what happened on this specific, specific trade. That's why I want to get more into futures as well because I'm just like coming back. This is me.

Yeah.

So this is approximately the market open. I have my order. So yeah, this is 335 calls. Yeah, 200 shares. The total volume is like 800 at the moment. So I'm like 25% of the volume. And then I place another like at this point like 400 shares. So right here I got filled 400 shares and the volume total is like 1.18 K. So I'm like basically doing 30% of the volume at the market open. So I can't imagine myself taking like thousand contracts or 2000 contracts right off the open, of course. So I haven't hit the limit yet. But that is something that I have to keep in mind. What took me to 3k, from 3k to a million won't take me to multi millions. So that is something that I'm working on.

I would love to hear it. And then definitely when you've worked that formula out, we'll come back and do another playbook.

Yeah, for sure, for sure. So yeah, this is the issue I'm facing at the moment. The liquidity of the market open on Spy. It's a bit more easy to size up. 600,000 contract. Spy has a lot of volume with Tesla. Like Tesla still has a lot of volume, but if I'm trading stocks like Meta or Microsoft, Microsoft also has a lot of volume. Like specifically Netflix and Meta, they have low options volume. So you can't size up a lot aggressively on those stocks. And then I keep a track of all my playbook setups so the viewers can take a screenshot and just go back and look at these Playbook setups. So I track my Playbook setups here manually. And I had Tradezilla as well. I have all my Playbook setups in there, of course. Yeah.

And that's one thing I was going to ask before we wrap up. Those trades we just looked at as an example of like this wasn't in the playbook. So we sized down. But how important are those trades still to your overall performance? Because those are like your little base hits that can then fuel that sizing up on the next trade.

Yeah, exactly that. Because on Monday I was like, just for example, last week on Monday I was up like 11K. On Tuesday I think I lost like 1000, 2000. On Wednesday I, I made like thousand, 3000, something like that. 3000. This, that was before FOMC. So Wednesday we had FOMC. So I sized down during FOMC again. So if I like lose 1k 2k, make 1k 2k and still like, okay, I'm not losing a lot of confidence because market is a way of like, it's not about the money you lose on that trade. Because if I size up on a stupid opportunity and if I lose money, it's not about, okay, I'm losing money on that trade, I'm losing the confidence. So that is going to carry forward for the next few days and the next few weeks. I have to think about the that as well. So sizing down and still getting like base hits or getting the reps in that is also important sometimes. But a lot of times when it's like market is very uncertain, it's best to just take a backseat. It's not like don't get the reps in. It's okay. You need to learn to sit on your hands as well.

Definitely. Well, thank you so much for breaking that down with us. And I hope that a lot of people out there are able to really start to incorporate, as you say, the market DNA like the buyers and sellers into their strategies. Whether they're using indicators or other concepts. That's absolutely fine, but it just really showcased how important it is to understand those buyers and sellers and just identify them. And then you can have a lot more confidence behind your trades. You can even be able to just manage your trades better. Which as we talked about is like one of the key things that will allow you to be more and more profitable long term is to reward.

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Now let's get back into the episode.

So it's 8th of October, 9am and I'm going to be watching Tesla today, the only stock I'm going to be focusing on for the day because this stock had buy the rumor and sell the news twice in a row, twice in the past four days. So on 2nd of October Tesla released the delivery numbers. Everyone expected Tesla to blow past the delivery numbers because of the incentives of the EV vehicles.

They went away last quarter.

So anyone who actually wanted to buy an EV vehicle and who actually want the vehicle on a discount because of the government incentives, they're going to buy it in the same quarter last quarter. That's why we saw a nice push towards the upside. So buy the rumor and as soon as the news came out it actually sold off. So that was a nice setup. Now yesterday, Tesla X account they actually teased that they are going to be.

Releasing something on 7th of October and.

Everyone expected that it's going to be a cheaper model three and cheaper model. Yeah, because of the incentives.

We don't have incentives anymore, the government rebate.

So now they are going to be releasing cheaper models and that's what it was. So buy the rumor and sell the news again. So now the good thing on the technicals if I show you guys on trading view is that it actually closed near the low of the days, which is what I like because sometimes when we close near the low of the days we might see some continuation push down.

So that means we had a bearish bar, which is okay, which was on.

High volume, which is also nice. So we can see red, red candles on high volume, green on low volume, red candle on high volume satisfies the.

Basics of price action.

And last week also we closed like a doji.

So especially if we make a new weekly low. So I mark all my weekly levels in yellow, so I'm going to mark it in yellow, which is 416.58, a bit too far away from the current price. But if you get under the yesterday's low near the yesterday's low with panic.

On the tape right here.

So I'm going to be watching the.

Bookmark map of the stock.

If we get panic on the tape, I'm going to be looking for my.

Shorts on this stock shots, not my.

Physical shorts but I'm going to be looking to short this stock.

Near the prior day is low for.

A breakdown under 430 towards 425, most likely 420.

Let's see, let's see if you're actually.

Seeing any panic selling or not.

So that's what I was saying.

If we open and if we close near the lows that means the bears.

The sellers who are in control towards the close of the day that actually.

Actually makes it a nice play. For example, on 2nd of October as.

Well we had a nice bearish bar.

The following day we actually had a continuation move. So this is what I call continuation move. We continue the sell off from the.

Prior day or we continue the buying.

From the prior day.

So same thing happened right here, 11th.

Of September, nice push towards the upside.

And then the next day we had.

A continuation move towards the upside especially.

Because on this day as well it actually closed near the high of the day.

So this was a really strong green candle.

Now it looks like a strong red.

Candle, not like a very strong red candle. On 2nd of October we had a huge candle. This is still a small candle but it closed near the low. So I'm going to be looking for some continuation move towards the downside. I'm going to be doing a live.

Voice session with you guys and you.

Guys can see in real time. This is going to be my execution screen. You guys will see all my orders right here. And I'm going to be focusing on this, the time and sales, the montage.

Of that Trader Pro. I actually have trading view windows as well right here.

But I won't put everything in this like small screen and I'm going to be focusing on bookmap as well.

So I might not be able to.

Show you guys a bookmap when I actually execute. I mean I'm going to try to but if I'm unable to do that in real time, I'm going to explain what I saw on the book map.

Once the trade closes or once I.

Take my partials when the market is a bit more relaxed then I'm going to do a review of why I enter based on the bookmap and if I see any signs to enter. But yeah, I think it's going to be Fun. I'm just going to pause this recording now. It's 9:05 so no need to waste the next 25 minutes. And I'm going to start the recording again around 9:29.

The market is about to open.

It's 9:29 approximately. We have just about a minute to go before the market opens up.

I have a few of the stocks on the sidelines. I'm watching nvda, Apple and amd.

But if I take a trade, trade on those like in on on the.

Other stocks I mentioned, I'm gonna break it down. Why did I take these trades and everything later? Because now we don't have any time. But yeah, good luck to me. I mean what trading is not about luck. I mean it's about luck. You need to be at the right place at the right time, but it's luck with skill.

That's what Ronaldo also said.

He says that luck without hard work is nothing. So you have to work really hard as well.

So. So yeah, for now Tesla is pushing towards the upside. So not a big fan of it. Yeah, I think it's going to be more about waiting and watching. 438 is a zone that I'm watching on Tesla. We can see that rejection yesterday as well. So that might be something interesting.

If Tesla, if I see that the tape of Tesla on Tesla is actually.

Weak I might start a small position. But I'm not definitely. I won't take like the big position sizing on my usual position sizing.

Tesla actually got hammered from 438 ish. Yeah, it got freaking hammered from 438 ish. Damn.

Took a position on Tesla. Looks really weak.

On the tape as well.

We are near the prior day close. If we break the yesterday's low, it can get ugly for this stock which is.

432.45 right around that level. Nice.

Yeah, we are near S3. Apple is also moving.

I'm gonna put Apple on the secondary. Okay. Apple is not doing anything much.

Tesla got a big buyer at 433 which we can see right here. I can see it on the book map as well. But there are a lot more sellers still in the market. Yeah, I think this S3 is going to be major.

The real time in sales looks really bearish. So yeah, Tesla was nice guys. And.

Apple also hit my alert but not doing much much.

I'm in. Tesla if we continue holding under S3.

Looks nice.

Yeah it. Yeah for now I think S4 is the next level. I just want this 5 minutes to close under S3.

Worst case scenario under the yesterday's low test case scenario closes under S3. But yeah, we had a few new buyers on the book map.

But yeah, the tape, I mean the real orders going through the market are just hitting the bid price. We are seeing a lot of red. A lot of red.

I don't know why I took 430 puts. They're already in the money. I think I should have taken 425 puts.

Yeah, the bits are getting hammered. 428 has a big buyer. I haven't taken partials but. But I think the reward is nice now. So if I, if we see any sort of pullback, I'm going to lock in 50%.

The thing is that this is similar to what happened on 3rd of October. I think 2nd of October was the news delivery numbers. 3rd of October we had a continuation sell off. This is just repeat of that. Rinse and repeat. Same Control C command C command V same.

Still holding my whole position.

If we see any sort of pullback, I'm gonna see that on the tape. Yeah, I covered 50%, guys. Yeah, in theory I should not have covered but the premiums have paid nicely and I was in decent size.

This might be one and done for me guys. This might be one and done for me.

If you catch a move like this. What else do you want? S4 is on Tesla next major level. 425.

Yeah, cycle level.

Damn, this paid. I was not expecting. I told you guys. Sometimes the market doesn't look that good but we just get good moves. Continuation play. This was just like rinse and repeat. This was the only stock on our watch. Same continuation play. 3rd of October. 2nd of October we had a sell off. 3rd of October continuation sell off. Same thing yesterday we had buy the rumor sell the new 7th of October, 8th of October again continuation sell off, same setup. So unless and until you journal, you won't know how to execute on these setups.

So I took 100, I'm out 70, now holding 30. We are near S4. I might actually risk 20 contracts if we get into the breakout zone under S4.

Yeah, for now I should have, honestly, I should have held my whole position. Should have, would have, could have. And people say that no one gets broke by taking profits, which I understand.

But as of now I don't see any reason to exit. So I just exited because I had big size and I exited because I was nicely up for the day. Those are not good reasons to exit because the market did not give me a reason to exit. That is something I'm working on that. If the market is not giving you a reason to exit, why do you want to exit? Are you exiting because of your P and L? Market doesn't give a shit. Market doesn't know how much you are up for the day. There are like billions of dollars flowing through the market.

I'm only in 20 contracts now, guys, we touched S4 as I mentioned, so. So if we break down and hold under S4, I'm gonna maybe look for my ads. But I am really happy with this trade.

My DAS is. Yeah, this is my Internet, not my computer. Yeah, it's okay now. Yeah, we are seeing some buying near S4. New buyers come, come in.

So, yeah, we can see right here. We had these big buyers right here. Near. On the book map, I'm seeing near 429. And even before that, when we tried, we had a push towards the upside. This was the big buyer I was talking about. 433 around.

And after that, even though we had a big buyer, but the tape, the real orders going through the market were like all hitting the bid price. I have a filter set on the book map. It only shows me orders above thousand shares. And that's what we saw. We were just hitting the bid price. If I go back, this is around 9:32, 7:55:32 my time. If you go back. So you guys can see right here, reds versus greens. We're just seeing red. 80% of the orders are like red on the pullbacks. Yes, we are seeing a bit of green, but not at any major level, but near 430. 429 right around here. 433. You guys can see 433 like smacking the bid, smacking the bid, smacking the bid. All the big orders, 4,000 thousand shares. Thousand more than thousand shares. Most of the orders are smacking the bid price.

So, yeah, that was a good trade.

Yeah, I think Good exit near S4. Nice move. Nice move. We might make a Doji at S4 now. Yeah, we might make a doji. So, yeah, I think I'm gonna cover the rest of the remaining 20 contracts as well.

Yeah, this was nice trade, guys. Nice trade.

There will be a bit of mix and match because I'm actually recording this video for the chat fanatics podcast as well. And I'm talking to the Discord members as well. So, yeah, this trade was recorded. I mean, I broke down everything before the market.

We only had this one stock, Tesla on the watch.

So yeah, this live trading video is going to go up with the chart fanatics episode. Guys, guys. I mean, Discord members. Yeah, I mean, that was nice. That was nice. Now the thing is, we could have bounced similarly from S3 as well. So yeah, I mean, I took my 50 contracts out a bit too early, but that's because it actually pushed towards the downside. So it's all. In retrospect, it's all subjective because we.

Could have seen the same bounce right.

Here and I would would have felt like, thank God I took 50 contracts out at the right time.

Yeah, it's back up. I think Tesla on the daily still looks like it's going to find support.

So this was just like maybe a.

Stop loss hunt, but the tape was really clean. We might reject from S3. I'm going to give it room to S3. What's the point of exiting now? So I'm going to see doji on the five minute chart as well. Yeah. So honestly, because I'm talking so much, I should have managed these 20 contracts slightly better. Better than the way I did.

I'm gonna give it room to S3 now because what's the point?

I mean, at the moment the risk to reward makes sense because if my stop loss is 432, if we drop back to 425 makes sense. Covering my whole position near 428 was nice. I did not do that. But now exiting at 431 might as well give it room to 432, which is the year yesterday's low.

Is this a good ad? I won't add because I don't like the doji on the five.

But yeah, I covered my whole position. Guys. Doesn't look good. It looks like a V reversal. So yeah, now I feel like thank God I took partials at the bottom.

But when it was actually pushing towards the upside, I was feeling like I'm the stupidest way trader in the world. So that's how trading plays with you. Every single minute of the market open. Not even minutes seconds of the market open. One second you're going to feel like you're the smartest guy in the room and the next second you're going to feel like you're the dumbest guy in the world. Because 10 seconds ago I was feeling like I'm the smartest guy in the world. Now it's actually rejecting from 432. So now I feel really dumb.

But yeah, now the best case scenario is that we actually hold under S4. I don't want to short it right here. That five minutes Doji is on relatively high volume right at the level we were watching 425. So yeah, it's not the smartest idea to short now.

Also 1512 minutes workday. I am up 24k for the day, guys. 24k within the first 12 minutes, which is insane. Happy with that.

Happy with that trade.

Let's see. This rejection was kind of expected, and that is the reason I was holding 20 contracts. But the thing is, we still are like, it's not the cleanest setup on the 5 minutes now 15 minutes candle is about to close in the next few seconds. So let's see.

But yeah, happy with this trade. Nicely executed. Nicely executed.

Another thing is that if you focus on the 1 minute chart, it looks like a nice short near S3, which makes sense. But 5 minutes is not looking too good. Can it push down to 425? Heck yeah, it can push down to 420. But do I have any edge here? I just have to stick to my edge and size up on my edge. I don't want to trade each and every setup. It's not Pokemon. I can't catch them all. I just want to catch my setups. And that opening flush was my setup. That's what I caught.

Yeah. My maximum, I think I took 10 contracts out at 10.65. My fill was approximately 7. AMD hit my alert. What the hell is that stock doing.

Huh? Do I want to give back my profits to AMD?

It's near R4. Price action is a lot cleaner today.

AMD premiums nice and cheap. Yeah, let's go all in.

Let's call in.

Advance. Money destroy. Yeah, that's the acronym for AMD in our group.

Yeah, it's above R4.217. I had my alert right under 217.

Let's see. @ the moment, it's too extended. If we get a bit of a pullback and if he actually holds strong, then yeah. Like on the 5 minutes chart, it has already moved from 212 to.

217. That is a $5.

Move. And if you guys remember, AMD is 80. ATR was like $5 a few days ago. Now it's like $10 because of that 25% gap up day.

Yeah. See, Tesla pushed towards the.

Upside. So on the one minute chart.

It was looking like a decent short. But on the five minutes, if.

You just focus on that Doji right.

At the level we were watching based on and the tape changing the direction.

That was actually, I think.

Yeah. Even on the book Map I.

Was not focusing on it. Every time we tried to.

Push.

Yeah. There was a clear sign on the book map near 400 that is going to be the low of the day. Or maybe a short term low. I don't know the low of the day. The market dynamic changes every second. But if you guys can see the book map near the low of the day we broke that 426. Big buyer, big.

Buyer. Big.

Buyer. And then this is what I call the ladder support. Big buyer, Big buyer, big buyer. At 430, 428, 427. And as soon as we broke that 425 level. 425 zone along with the level we had on the Daily and the S4 camera levels, we had new buyers. So that is technical analysis along with tape reading along with nice entries and exits. That's what makes you a consistent.

Trader.

Yeah. AMD freaking squeezed guys. AMD squeezed. Today is the day for amd. Anyone in it? AMD I'm not in it but yeah it might be a day for AMD to go. So if we get a pullback I want to pull back like it.

Would was a good trade but I.

Just don't want to chase.

It. Are you in or.

Like. I'm serious.

Yeah. From R3 you're in from R3.

You'Re in from R.

3. Damn.

213.7. That's.

Nice.

Damn. AMD is going.

This is the squeeze kind of tape I was expecting yesterday which we did not.

Get. And yesterday as I mentioned after.

A big red day the camera level.

Levels or like these levels were so.

Extended. Today we are actually in the breakout zone. So it might.

Squeeze.

Yeah I any sort of.

Pullback. I'm gonna try taking a position and I wanna.

Because AMD premiums get really jacked.

Up.

So if you enter at the.

Breakout there is two.

Reward. Doesn't make.

Sense. Like at the moment it's freaking extended. Freaking extended. Like I was talking about the extension like 3 minutes ago but now it's like crazy extended.

Yeah. AMD R6 is 222 point. I'm actually feel cold. I need to turn the aircon off. But AMD 222.53.

Tesla is trying to hold under S4 on the 5 minutes. S3 sorry on the 5 minutes.

So for the chart fanatics people I'm talking about R3 and R4 these are the camarilla pivots levels. So I actually made a video on my YouTube as well explaining everything like explain everything how I trade around These levels, you guys can watch that video as well. But these levels don't make sense.

Without any higher time frame setup. These are just like guides. So I talked about the.

Zones. If you're actually holding above R3.

This is the launch pad.

Zone. This is is the overdrive zone. I talked about everything in my YouTube video. So if you guys want to learn more about these levels, you guys can watch the YouTube video I posted on my channel.

So is this a pullback on AMD, guys? We had another big seller at 220. I don't want it to pull back from 220. That's the thing. I mean, a break and retest of 220 makes sense. But I think, yeah, I'm gonna not like size up on it. But yeah, I think it still looks good. And because I'm green, I can risk a bit of my profits. Damn, that was a good entry actually.

Yeah, it's in squeeze mode. We can see the speed of the tape as well. Yeah, that was a good entry.

Let's see if. I think I'm waiting a lot. I'm not being aggressive.

Which is okay. Sometimes you're aggressive, sometimes you're defensive.

225 calls moved from 2.6 to $3 in like 30 seconds.

That's the beauty of trading options. And the other beauty is that you get FOMO every single.

I had my order ready as well on amd. Just did not execute. I was like, it's gonna give us like a bit more pullback. I waited for the five minutes close. I was expecting like a bit of a pullback on the 5 to 2 19. It just pushed up. Yeah, that's like another 7, 8K. I was thinking I was planning to take 100 contracts on AMD.

Yeah, okay. Missed out out on it, which is okay. Life of a trader. You can't catch them all, like I said.

Because mentally I was.

Done. I'm like one and.

Done. I have mentioned this previously as well in the Discord group that sometimes you're trading to make money, sometimes you're trading not to lose money off the open. I was trading to make money because I was flat for the day. I was zero for the day. But now because I'm green, I want to preserve that. So I'm trading not to lose money. There's a big difference. You're getting defensive now, so that doesn't end well. That is not good for you taking another position.

Yeah, that was a good ad on amd. Perfect, Perfect. This is just another example. If you wait for the news to settle down and wait for the camera pivots to tighten up. Like yesterday the range between R3 and S3 was like $40 again for the, for the chart fanatics. You guys can watch my video on YouTube to understand what I'm talking about about. But.

So yeah, today the cam levels tightened up and we got the.

Breakout. I'm pretty sure like I can't.

Be mad at myself because I am pretty sure I would have entered AMD near 216 if I wasn't in.

Tesla. That's the.

Thing. Because I was in Tesla I missed out on amd. Otherwise I would have executed on it.

We all know I would have executed on it. We are watching Tesla and amd.

Yeah, it's near R6 now. Can it go for the.

Overdrive? Might even go for all time.

High. Let's see, let's see. I think I'm checked out for now. If like say my entry in a. In an imaginary world I entered around 215, 216 then yeah, I would have just held on to my trade until I see a reason to exit like the time Tesla trade.

But now it's freaking extended.

Af.

Yeah. AMD was also tight on cam. Yeah. So just have to wait. You just have to wait for camera levels to tighten up.

Tesla still holding under S3 so.

There is a chance that later in.

The day it might sell.

Off. But now the best bet is.

To actually wait because it's just like shitty choppy price action. Now the best bet is to.

Actually wait for.

Hold under S4. That is the low of the.

Day.

Yeah. AMD just went.

Man. Breakout zone, Overdrive zone to the moon.

Ah.

That'S the thing. Even. Even though I am up 24k for the day, I still feel like. Not like, but I still feel like I could have made more.

The day I made 93k I was like I could have made 200k.

These are the feelings you go through as a trader.

Amd overdrive on above R6. Overdrive zone. Damn.

Not even a single.

Pullback. Not even a single.

Pullback.

Pullback.

AMD was nice to me today. It was nice. It was not nice to you. It was nice to the market and that's why it was nice to you.

So we closed above R6.

But my heart, my, my brain, my trading experience won't just allow me to enter here, man. Look at the 5 minutes chart. Staircase to heaven. It has moved $13 for the day.

But yeah, whoever traded it, I'm pretty sure 225 calls I'm going to actually check. So if you entered AMD 225 calls near R4, say 216, 217.

So yeah, that was like 944. 944 premiums were like $2 to.

4.5. Double your.

Money. More than double. A nice entry. Even like not even 2.7. I'm talking about R4 breakout. So the premiums were like $2.

To $4.50. That is like 125% return. If my math is correct.

That was your.

Entry.

Yep.

I might personally call it for the day.

Guys. I think I might call it. The longer I sit here, the more I'm gonna get like FOMO on the stock. Now the thing is, yeah, it might go for all time high but need at least a five minutes pullback. We have three minutes to go on this five minutes candle. I just, I got a P really bad. So I'm gonna go P and come back. So yeah, wait for.

Me. Not you.

Guys. I want AMD to wait for me.

Yeah, I'm back.

Can it go for all time high? That's the question now.

Yeah, I'm gonna wait for this five minutes to close because might even go for 220 or maybe even 219. That is going to be a good entry. Ideally I wanted to hold above R6, but just like this $1 pullback is not enough after it moving like this, not enough for my trading. So I don't want to enter right here. So I'm going to wait for the next few minutes. So yeah, guys, you guys saw me live. I entered at 9:39, 4212 minutes of the market open. I made $24,000 I.

Think. Yeah.

6.9. The maximum was like 10.65.

Premiums. So a contract which is like $365 a.

Contract. Had I entered my whole position and exited my whole position at the the bottom making the most amount of.

Money. That this was like a 36k.

Trade. But you can't think like that because no one told you that this is going to be the low of the day. So that is one thing you need to make your peace.

With. You can't never, you can't ever.

Catch the top and bottom of the market. So I'm just gonna, yeah, I'm just gonna take a screenshot journal. I'm gonna call it for the.

Day. I think AMD is a bit.

Too extended so I won't be trading.

It. And so my, usually my process.

Is I'm gonna trade, I'm gonna wait it out the next five, ten minutes. I'm gonna go maybe grab a.

Tea and then I'm gonna take a few screenshots, mark my entries and.

Exits. Note that down in my notional journal and I'm going to call it for the day. So thank you for joining in. Hope this video was really helpful.

For a few of you guys to.

See how real time.

Trading. So Tesla, I'm going to break it down again very, very.

Quickly. So Tesla was a continuation play.

Downside. And this was similar setup to.

What happened a few days ago on 3rd of October. This was 2nd of October, buy the rumor, sell the news setup we sold.

Off. Next day we had a.

Continuation. This was again 7th of October.

And then 8th of October we had a continuation push down. The premiums moved approximately from seven to $10 apiece, which is approximately 10.5, which is approximately 50% return in a matter of five to seven minutes. So yeah, thank you for joining in. Hope you guys liked this session. The live recording, live recap, live trading and the emotions I went through because this is it like trading, you feel sometimes you feel like the smartest.

Guy in the world and then the.

Next minute you feel like you were really stupid. But if you just stick to your plan, that's the best you can.

Do because market is going to be erratic. If you're trying to make sense.

Of the market, think about.

This. You're trying to make sense of.

What humans are thinking at that.

Point. Humans or.

Algos. Algos are also coded by humans or whatever.

Right? So you're trying to make sense.

Of what bunch of humans are going to think and what they're going to do.

Next. So they can be more irrational.

Right? Buyers and sellers can be a lot more irrational than you can remain solvent in the market. But if you're just taking to your plan, that's the best you can.

Do. In this live recap of Apple trade, we will take a look at a really good setup based on the technicals. But how tape reading helped me take my partials at the perfect time and also adjust my stop loss based on the actual buyers and sellers instead of just trading around random levels. Even though I was up approximately $40,000 on this trade, unrealized at one point of time, but I still walked away with making $24,000. Which is going to be another lesson that how as a trader you need to adapt to moving markets as the dynamic between the buyers and sellers changes in every second. Now before we jump onto the actual trade recording and my live executions, I want to show you guys a daily chart, I'm going to use the replay feature just to show you guys how the chart was looking like before the day I took this trade. So we can see that on the daily chart. Since the iPhone17 event launch we had a crazy push towards the upside. So you have to look at the overall market context and what is the force driving the stock towards the upside. Since then we have been consolidating. We can see that we had red candle, these green candles on high volume followed by consolidation on low volume, which is is.

Good. Basics of technicals. This looks really good based on.

The volume analysis as well. But this is a level of significance on Apple around 257, 256 to 258.

Zone.

Why? Because we had this push towards the upside. Since then we have been consolidating right here. But this is the last draw for the sellers to hold this stock under this.

Level.

Why? Because after that we directly have all time high. We don't have any other technical levels. If we actually get above 258 we might see a break of all time high, high. And people who have been shorting this stock, they will have to get stopped out. So this is the last straw for the sellers and last straw for the buyers as well to take this stock towards the upside for the break of all time high. That is why it's very important to see where the stop losses are placed of a lot of traders and where the emotions are going to be really high. That's why this258 is going to be a level of significance. Yes, I can mark 15 different levels on the higher time frames on the daily chart. People say that mark your levels on the higher time frames. You can mark 15 different levels on the higher time frames. But only one or two of those levels are going to be really important. And these levels are called levels of significance. And now here's the live recording of this trade. This is 9:31am 44 seconds and we are finally getting a push above 250A6. As I showed you on the daily chart, we have quite a few.

High of the days near 256.

257. So if we get the momentum, this stock might as well go for all time highs. So I entered my position at the hold above the 256. I entered 200 contracts, overall 400 contracts, 202 orders, 257.5 calls. And we just had a quick push towards the upside. My stop loss based on the technicals on this trade is going to be this pre market high, which coincides with the yesterday's high as well. But now, based on the book map, you guys will see that we had a bit of uncertainty right.

Here. It closed like a red bar.

A doji on the one minute. Not the best thing in the world. But if you look at the tape now that is very important. Important that before I'm thinking of exiting this position, I have to look at the tape if the buyers or sellers are actually holding strong or they are actually holding weak. So right around 9:32am this is when we were trying to push towards the upside. This is the big green candle we just saw on the price action right here. This candle followed by we will.

Have a doji right.

Here. So we closed like a doji, but as soon as we close like a doji, we had another big buyer at 255.40. So this was a positive sign. Even though I was my stop loss on this trade was if it makes a new one minute low or if we get under the pre market high now, I might give IT room towards 255.4 as well. Because we know that we have a big buyer at 255.4, we might go grab this buyer and push towards the upside. I don't want it to happen, but even if it happens, I just have to be prepared. So based on the tape reading, I can prepare myself that we might see a pullback to 255.40. And if you are unable to hold above of this buyer, we take it, we go for this buyer. And if you are not able to reclaim back above this level, that has to be my maximum stop loss. That has to be the last draw. I have to exit right there. But ideally I don't even want it to go towards 255.40. But this is just a positive sign that at the breakout, the volume also increased. This is another component of the market DNA. We have good technicals. The volume is actually increasing. Rwall, which is the relative volume, started around 70%. On the second minute, it has increased from 70% all the way down to approximately, approximately 82, 80, 80%, 81%, 82% in the next two or three minutes. So at 9:32am The RWALL was 70%. At 934, RWALL is 82%. That means this move is actually backed up by volume. Volume is actually flowing into the stock now. And now after that, once we broke above this high of the day, my thing is that we just have to hold this position unless and until we see a sign of rejection. 258 is going to be an important daily level because after 258 we.

Directly have the all time.

Highs. So I'm going to see if we see some sort of uncertainty around 258. Here we are around 258. I'm going to think about locking.

In a bit of my.

Position. So maybe 50% of my position and the premiums I entered at 1.7. So based on options, like if you guys don't trade options, 1.7, 1.68 means I paid $168 a contract. So overall my investment on this trade is 1.7 multiplied by 4 400. It's going to be approximately $70,000 worth of position. And the same premiums are at $280 now. So that means I paid $168 for the premiums. I took my partial position 200 contracts out at 2.76. That means at 9:31am I entered a contract for $168 each. At 9:36am 57 seconds I exited those contracts for $276 each. That means I made approximately 101 $08 on an investment of $168 per contract, which is insane. And right around here, near 255.8 I'm going to lock in another 50 contracts because I saw a bit of uncertainty around 258.6. And we can even see see.

That on the book.

Map. So earlier on when I entered my position we had a big buyer.

Trying to support the price, which is.

Good. But now if I play this and if I move all the way near, near like high of the day, near 259, we will see what happens. So we are going trying to go for 259 which is the last draw. Then after that we directly have the all time highs. I covered 200 contracts. At the break of 250. I covered 50 more contracts somewhere around here. But you guys will see what happened. We had a big buyer right here. Now we have a big seller which is the opposite to what happened when we were pushing towards the upside. So we had a big seller 259. Then we have another big seller at 258.80 and then another new seller around 258.5. So this is what I call the ladder resistance. That means we already had approximately 43,000 shares sitting at 259. Now we have another big order of 56,000, 1800 approximately. Overall 58,000 before the break of 259. So think about this like the seller, the buyers are actually trying to break the wall. It's very difficult for them, especially with the stock being this extended. And as soon as they were trying to break the wall, they see that there's another big wall in front of the already big wall. And this wall that is in front of 259 is even bigger than the wall we have at 259. We have 56,000 shares here and 43,000 shares right here. So 56 is actually bigger than 259, which is what I call a volume anomaly. This should not happen. Ideally, 259, which is a good cycle level, it should have a bigger order. But now we are seeing a bigger order right under 259, which is a bit of a negative sign. But now that doesn't mean that we are just going to see a V reversal because we can see two scenarios now, maybe three scenarios as well. We might just see a straight push towards the upside. But in most cases, when we see something like this, that means a consolidation or a V reversal is coming. So you can either lock in your position, take your partials right here. That's what I did. But you can just prepare for what's about to happen. That is what tape reading gives you. Because it prepared me of the open when I took that entry that I might have to exit at 255.40 and maybe adjust my stop loss accordingly towards the top. It actually told me that, okay, take your partials because a short term pullback or maybe a V reversal is incoming. So that's where I locked in my partial. Now let's play this recording. And we can see that I added more to my position right around here. I added 200 more contracts, which is not a big size, which is approximately $1.40 a contract. These are like 260 calls. Now I invested approximately 28,000 because I knew that I'm up approximately 20 to 30k on the first trade. So I can risk a bit more to make more money. And I was not very confident with this trade. That's why I only added 200 contracts instead of 400 contracts because of this thing, what was happening, happening on the tape. So if I play this now, you guys will see that this is what I call the ladder resistance. So right around here, around 9, 41, 942, we had these big sellers right here. Now another big seller right Here you guys can see the red line. Another big seller around 255.25, 8.5, 0.55, approximately 0.50. Another big seller at 258.30. You guys will see, I can see the ladder. So this is what I call the ladder resistance. We had a big resistance at 2:500, 259. Another resistance. That means another seller. Another big seller. Another big seller. Now there will be a very negative sign right here for a push towards the upside. We have new sellers coming into the picture, but we will see one of these sellers step down in the next few seconds. It happened on the same candle. We are going to try to push towards the upside.

Another big seller. So this seller just stepped down. He had this order. He or she or whatever. I don't know. It's a bunch of, of sellers. You don't know that from the book map. But what happened, that order was at 258.30. That order stepped down. Same order, you guys can see right here, 6,000 shares. And if I go back slightly, we had approximately 6,000 shares. So the same order stepped down. That means this seller is eager.

To get out of the.

Position. Because for example, if you own something or even if you want to short sell it, you want to try to short sell it or sell that position at the, at the peak, you want the highs. Because if you sell it right here, you are getting a really good price. But these sellers are not very confident. So now they are trying to lower their price and they are not very confident that the price is going.

To continue towards the.

Upside. And when I saw that, I covered my partial position for a loss. I entered at 1.42, covered my position at 1.17. But the initial position, I had a really good entry. I'm going to give it room to 257 because we might still bounce from 257. We have a big buyer right here, approximately 18, 13,000 shares, whatever. So we might bounce from 257. So for the last position that I'm holding the 150 contracts from the open, I have a really good fill price on that position. For that position, I'm going to adjust my stop loss to 257 because we might still grab these buyers and push towards the upside. And when we actually drop down under 257, that's where I covered my position. At a full price of 1.88, I still made money on the remaining 150 contracts overall making $24,000. So on my first trade I made $30,000, approximately $29,000 was 980. On the second trade, that was the ad, I lost $5,300. So at one point of time, my first trade itself was approximately 40, $45,000.

Up.

Unrealized. But you guys just saw that how in real time I was able to adjust my stop loss, adjust my position sizing and adjust my profit target as well based on what was happening between the buyers and sellers and the dynamic between the buyers and sellers. Are the buyers stepping up, are the sellers stepping down? What are we seeing on the table? And this is what I call the market DNA strategy. You're looking at the technical analysis analysis which is what 99.99% of the traders do. But now you're also looking at the real time dynamic between the buyers and sellers and how it's kind of shifting every second of the market open and you're adjusting your stop loss, your profit target, your position sizing based on what is happening between the buyers and sellers. Also one more important thing is that I mentioned at 9:32am The RWALL was approximately 70% near the highs, it's 110%. That means the move is backed up by volume. So now you're looking at at technicals along with the tape reading along with volume analysis and trying to join everything to look for a high quality setup. And that is what I call the market DNA. In this live trade you will see me execute on a $50,000 trade with my real time emotions and executions. I actually did not speak during this trade as I just wanted to zone in. It was a playbook setup as per my game plan and I wanted to lock in and not think about speaking or recording myself. So to understand the trade better, I will first break down why I took this trade, why I sized up on it and then we will get onto the live trade because it's going to be fun to see how this trade actually raised my heart rate in real time. I'm going to use the replay feature just to show you guys how the daily chart was looking like the day before I took this trade. I took this trade on 9th of October. On 8th of October we can see that this stock has been making a new like new all time highs and we are pulling back, making a bull flag on the daily chart. So the technicals are good. But on 9th of October it had a bit of news and this stock was holding stronger than the market with the gap up. So now I'm going To select the bar and see what happened. So I'm going to select this bar. You guys can see at the market open we were gapping up and this stock was holding stronger than the market. So that is what I call relative strength, which is one of the criteria to satisfy a playbook setup as per my game plan. Let's now take a look at the intraday price action from that day and see what happens. So we can see that in the pre market we are holding strong right here and then we pull back.

And push towards the.

Upside. Right? But then again, I always talk about levels of levels of significance. You don't need to mark 15.

Different levels on the daily chart because.

Everyone tells you to mark your higher time frame levels. But I can actually mark like.

15 different levels on the higher time.

Frames. The only level on that day I had on my chart. I like my chart clean. The only level I had was the prior all time high which was 191.05. Remember this number, 191.05 because it's going to be important. So that was my game plan on the higher time frames that the stock is gapping up above all time high. I only have this one level. I want to see how this stock reacts around this level to look for my entries and I'm going to look for my entries off the open as well. If we just go towards the upside for a breakout. And you guys will see me.

Execute on this trade real.

Time. And I'm also going to show you guys a book map because for me, as I told you, the market DNA strategy is a combination of technicals, market context holding stronger than the market tape reading as well. So I'm going to show you guys what happened on the tape near the prior all time high. There was a clear signal to enter your.

Position. And here's the live executions of this.

Trade. And it's going to be fun to see my expressions. My expressions are real time that you guys can see on your screen. And it's going to be fun to see that how I actually bend forward when I take this position because I sized up on it. It was a playbook setup and.

I actually made good money. You guys will see everything in real.

Time. So this is 9:30am Nvidia had a slight push towards the downside. As I mentioned, this was the main stock I was focusing on of the open. I also had Tesla on the sidelines, but NVDA was the main stock. So that dip was getting bought back up. So it was looking like a Decent setup on the 1 minute minute chart. So I had my safety order ready. This sell position that you see, it's just a safety order that like whenever I enter a position of the market open, I have a safety order that if it rejects aggressively, I want to exit my position at the market order. So right here near the close of this candle around 9:30am, 45 seconds, I entered 500 contracts on this stock because which is a big size. It's approximately $100,000 worth of position. And if you trade options, that's pretty big size because you can actually make like 50, 80, 100% on the options. So my profit target on this.

Is easily five figure, like multi five.

Figure. So that's what I'm sizing for. And even the risk is can be five.

Figures. So we're going to talk about the risk a bit later when eventually we get onto the winning.

Trade. But you can see after a bit of uncertainty on the second minute, it was pulling back down. It was pushing back down. And that's where I covered my position. I'm going to give it a bit more room. I'm just going to wait for the next few seconds to see what happens. But if we drop back and if we go for 192 level, I'm going to exit my position. So when we drop back around 192.3, the tape was not looking that strong. And I just knew that it's.

Going to go for low of the.

Day. First I covered my position for practically break even. My fill price was 2.07, the small number on the right hand side of the screen. And my sell was also at 2.07. But because I entered 500 contracts, I actually paid like approximately 8, $900 in commissions. I'm talking about commission, just so you know that. Okay, for now I was read for the day. Even though this was a breakeven trade, I was still red on the.

P and L because of the.

Commissions. And you guys can see as expected, I just forwarded this recording by a few minutes. It went for low of the day. So my exit kind of made sense. And now I want to see what happens near low of the day. And remember that number I talked about, 191.05 was the prior all time high. Now before we discuss what happened near 191.05, I'm going to show you guys the bookmap of the stock and what and what I saw on the book map. So here's the bookmap of the stock And I have the 1 minute chart on the right so that you guys can reference what's happening on the technicals with the price action. So the time on the bookmap is 1734, which is 5:34 because I live in Dubai and it's going to be 9:34am so this candle that you are seeing at the moment, 1734. Is this candle 34, this one right here. So yeah, we are going for low of the day like I showed.

You guys on the live.

Record. And yeah, so I want to see if we are actually seeing some weakness around the tape because if we want to flush down, if we are going against the trend because this stock is holding stronger than the market. So if you want to sell off, I want to see panic on the tape. That's what I want to see in other cases like if it's just slowly going down, I'm not a big fan of it because if the stock wants to go in the opposite direction of the strength in the pre market opposite direction of the overall sentiment, we need to see panic on the tape and we will see what happened right here. So this is 1735, which is 9:35am EST. I'm just going to just x2 x3 just not to waste your time. Now we can see that we.

Are near a major.

Level. So this is the level that we marked. 191.05 was the prior all time high. We still have, we have this level marked right.

Here. This is the gray.

Line. And the low of this day was 191point. The low of this candle was 191.06. That means it touched that level approximately to the penny. 191.05 was the prior all time high. And the low of this candle is 191point. And we did not see any weakness on the tape. You can see right here the red dots were coming in. Red dots were coming in. But then that dip, we saw green on the time and sales which is going to get better for the buyers. I'm just going to play it and you guys will see that and kind of get a feeling in real time that it's. You're not seeing panic on the tape. If you want to break under the prior all time high, especially with the stock holding stronger than the market, I want to see panic on the tape. I don't want to see a lot of green. I want to see like 80% of the orders hitting the bid price which is signified by red and maybe 20% of the orders hitting the ask price, something like that.

So now this is 9:36am which is around this candle. So now when we were trying to break down under this 191, we had another big buyer right here. 191.25 12,000 shares, which is big but not very big. It's not alarming big, which.

Is. Okay.

Okay.

So we took, we went for that buyer. But you guys can see big red dots right here. That is very important to know that there were big red dots. Sellers came into the picture. There was selling happening at the bid price but it got absorbed by the buyers. So we are seeing action from the sellers but we are not seeing the reaction on the price action. There's something called action and reaction reaction. If there are like buyers in the market, I want to see the buyers react. I want to see the reaction of the buyers. At the moment we saw a bit of red. We saw like these big red dots but there was no reaction. We can see like on the price action as well. We saw sellers come into the picture, but it did not react. The price action did not react. We did not even break. 191. Even before 191the big orders are coming in. So what is happening? Someone is selling the shares before 191. We are seeing big red dots but those sellers are getting absorbed by the buyers. So the buyers are so strong that even after that much selling it's not. It's unable to break towards the downside. So there's action from the sellers but no reaction on the price action. And we will see that happen multiple times. So we are going to go for it again and we have to look at the time and sales as well. Yes, tape reading takes a bit more time but it just gives you a bit more insight what is happening in the other levels. Yes, anyone can focus on the prior all time high. But what is the context? What is happening? So we saw absorption of the sellers by the buyers. That was the first thing I, I saw on the tape. And then we had this big buyer. So already near all time high. Like the prior all time high. I'm like, okay, I don't want to short it. And this is not me explaining after the fact. You guys can see. This is what I posted in the Discord Group. We have a community. I posted that in real time, took a break even trade on NVDA for now that I showed you guys off the open nvda. Real weird now for now, held prior all time high and no panic on the tape. This is 5:33 which is 9:33am on 9th of October. This was in real time which is I was typing in the discord group. So it's not like I'm going after the fact. I'm actually noticing everything that is happening in real time. And if we hold under prior all time high might get some nice downside. And then this is a bit later what happens I'm going to show you. So let's play this recording.

We are going for that buyer again. A lot of red on the tape. We went for that buyer. A lot of selling sellers are trying to push it down but getting getting absorbed again. So we are unable to even after that much selling we are unable to break down under 191 which is a negative sign for the sellers. Eventually they're going to give up. If there's a lot of selling pressure and all of that is being absorbed by the buyers, the sellers are going to give up. And now this is where we see action and reaction. This is completely opposite. We are seeing big green dots and we are seeing the reaction. Previously we saw big red dots, no reaction. The price action did not even go down under 1 191. But now there was buyer. We can see like big green dots and the reaction. This is what I want to see towards the downside if I am thinking of taking it towards the downside. But this green candle we can see is right here. There was action from the buyers and you can even see that the volume slightly increased on the green candle action from the buyers and reaction on.

The price action which is.

Good. There were buyers and the buyers were able to push the price action towards the upside. That means there was was reaction. Earlier on there were sellers but no reaction. Now there are buyers and there is reaction. So when I saw that I was already like okay, I'm going to look for my trades towards the upside. Now I just want to wait for a pullback, see what happens. See the buying. Same thing happened right here. Big red dots, no reaction. Now we are seeing big green dots and we are seeing the reaction. So now I'm going to look for my entries. This is this candle. And now just the basic surprise action again. Even if you just don't focus on this, it gives you the insight, it gives you the confidence and that's why I said sized upon it. We can see green candles on high volume, red candles on low volume. This is a basic surprise action. So most likely this stock wants to go towards the upside and the green candles on high volume. We are seeing the reaction, it's actually pushing up. It's not like a doji green doji on high volume. It's actually like a green bar on high volume. So the buyers were there in the market and we saw the reaction of the buyers on the price action. So now right around here I took my starter position and now let's get back to the live recording and.

See how I executed on.

It. So right around here, as I saw on the tape and the book map, the stock was holding strong. But off the open, if you guys remember, I took 500 contracts. Now I just took like 50 contracts because I'm still inside like we are still inside the dailies range. So I don't want to size up. I'm starting a small position just to put some skin in the game. And then if we actually go above 192.5, that's where the seller stepped up on the third minute. If you guys can see on the one minute chart, I'm going to add to my position. So I'm just in 50 contracts. My risk is most likely like thousand dollars on this stock at the moment, which is way less than what I'm willing to put in on the stock if it actually pushes towards the upside is when I started focusing on Tesla because Tesla actually went for low of the day. I'm going to switch my charts shortly. I'm looking at the other screen, the other layout I have on my screen, but I'm going to move. I took Tesla short as well. I was only in like 50 contracts on Nvidia, so I'm not too further about that. But I entered my Tesla position. 425 puts for a breakdown towards 420, which was not like a playbook setup. But I know Tesla and how I know how to manage my risk. So on that Tesla trade I was risking somewhere around 4 to $5,000 on that stock. I'm going to switch my charts to Tesla shortly. Give me a few seconds. And actually before switching to Tesla I actually covered my Nvidia because Nvidia was trying to push down slightly. I still was was like it's looking really good. But because I just don't like entering two positions or managing two positions at the same time. Tesla was kind of a big size, 100 contracts. That was approximately $47,000 worth of position which is 50% of what I'm willing to put in on Nvidia, but it's still a decent size. I started focusing on Tesla and after a few minutes it was in the playbook setup. Anyways, I'm going to cover that.

Position for a small.

Loss. Now when Tesla was holding 429 I was like okay, this is not, not going to go. This is not even a playbook setup. And most likely on the five minutes it's going to close above 429 or maybe above 430 as.

Well. So I covered my Tesla position.

Just to focus back on nvda. If you focus on the order window above my face. I exited my Tesla trade at a full price of 4.23. So I lost approximately $5,000 which is 10% loss of my position, which is what I expected. But now back to Nvidia and this was really exciting. I'm going to switch back to Bookmap and show you guys why I took this trade, where I took it and why I sized up on it back to real time gem. I entered my position at 9:45. This is 9:44am so what gave me the confidence to enter this position big size again was what happened near the low of the day. We held the prior all time high to the penny and we had absorption of the sellers by the buyers. Then we had buying momentum action and reaction from the buyers and we saw the reaction on the price action. We are pushing towards the upside. It's satisfying the basics of price action. Green candles, high volume, red candles low volume and then green back high volume. And that's where I entered my position. 945. But why? There was another sign on the tape. I'm going to play this book map and you guys will see in the next few seconds is at.

X8. I'm going to lower it down to.

X4. Another big buyer at 192. This is what I call bid refill. So what does that mean? We had a refill of the buyers at 192. So because of what happened near low of the day, we had the bid refill right here which is 37,000 shares which is quite a big size for NVDA compared to what we saw earlier on.

12,000.

37,000. I'm like okay, I'm going to enter my stop loss is 192. If we go for 192 I'm still okay with it. We might go for this buyer. But if we actually hold under 192 with a lot of weakness on the time and sales, I'm going to exit my position. And you guys can see the tape completely switched here on the time and sales as well. I told you Guys that if we want to see some panic, I want to see 80% red, 20% green. Now we are seeing 80% green and 20% that is good for upside along with this big buyer along with the absorption of the sellers. Near low of the day. So everything is now joining together and I'm thinking of everything in real time. And that's what I mentioned right here as well. On the Discord 5 minute Doji close right near prior all time high. We'll see the 5 minutes chart. We close like a Doji right near the prior all time high. Again, a Doji by itself doesn't mean anything. But with the overall market context and tape reading, I'm joining everything, which is what I call the market market DNA. And we will see. It's 944 at the.

Moment. Let's increase it.

Again. That's where I entered my position. And my stop loss was right around 945. I entered my position. My stop loss was. If we come back under 192.

I'm still going to give it a.

Bit more room to see what happens. But if we actually close under 192, that is going to be my stop loss. Now let's switch back to the live executions because it's going to be fun to see how I actually bent forward to focus on what is happening on the day. This is where I entered my position at 192.5. Right above that with a stop loss 192. Worst case scenario. But based on my experience, it won't go there. But still, even if it goes there, I have accepted the risk. I entered 500 contracts. So my risk on this stock is approximately 7,000 to $8,000. My fill price was 2.14. Most likely I'm going to exit the premiums around 1.95 or $2. So yeah, 7 to $10,000 is my risk on this trade. But now you guys have to look at my expressions. That's the amazing thing. When I go back and watch myself, I'm like, okay, this is stressful. This is definitely not healthy. And we had a bit of a pullback right here, but it was still satisfying everything. There was no weakness on the tape. So I was 90% confident that it's going to go again. Nothing is 100% in the market. But because of everything joining together, the market DNA, I still like it. So it was just about holding this trade for a squeeze above 193, which is what we got at the moment. The only job you guys have to do is just focus on my expressions. I'm going to bend forward as well. Give me a few seconds. And right near 193, we had a bit of a pullback. So this kind of scared me. I'm like, okay, we are seeing strength on the tape, but we are seeing selling at 193 as.

Well. So I bent.

Forward. I'm like, okay, if it doesn't go, I want to exit my position. I'm still in the green. Even if I exit now, it's.

Going to be breakeven or most likely a green.

Trade. So I'm just looking to see if we are seeing any weakness on the tape. That's what I'm focusing on. That's. That's why I'm bent forward so that I can look at the numbers nicely. Also, it was a bit stressful situation to hold this trade the way I did. And that is the beauty of holding onto your winners. Even though, yes, there was a bit of uncertainty on the tape on the price action. But we can clearly see that the volume is kicking in. We can see the increase on the speed of the time in sales. And this is most likely just the start of the squeeze. This is what I call squeeze. Above R6, the R6 level that you see the green line on the chart, I call this the overdrive zone. I actually made a video about Cabanela pivots on my YouTube channel. You guys can watch that video. But above R6, I'm expecting a squeeze kind of price action. And that is what we saw. So at the moment, even if I exit the position now, I'm up approximately $25,000. But this might just be the start of the move. And that is the beauty of holding on to your winners. And when we closed above R6 like that one minute closed right around, around R6, I was like, still, it might push down. I had my order ready to exit the position. But once we broke above high of the day, you guys will like, look at my expressions. Just look at my expressions. Once we actually broke above high of the day, I got a bit relaxed and right here I bent back and I knew that I'm in the driver's seat now. So it's all about holding your position unless I see a reason to exit. And that reason to exit will come from the tape because near all time highs at the moment, it's at all time highs. So we don't have any technicals. And that is another benefit of tape reading, that it gives you good exits as well. Along with Good entries like we just saw near 194, I'm going to start locking in my position. So I held this winner the whole position for approximately 4, 5 minutes. Now. This is where I started taking my partials because 195 is a huge level and I was expecting a bit of a consolidation before 195. And that is where I wanted to lock in a bit of my position because I don't want to get stuck in a consolidation or potential reversal.

Before the break of.

195. And apparently it was just a one minute pullback we pushed towards the.

Upside. Still holding 300 contracts. Majority of my.

Position. And this is where before the break of 195, around 194.5, I'm going to start locking in because one more thing, that the ATR of this stock is $5 at the moment. It has almost approximately moved 3.$5 for the day. So it's getting towards that extension move and this crazy rally towards the upside. We have already made eight or nine green candles on the one minute chart. So this is where I don't want to be greedy and I want.

To start locking in my position.

Here. Right before 195 we got a doji on the one minute chart, which is not the best thing in the world. That too on high volume. That is why I covered 100 more contracts and the last remaining hundred.

Contracts. I was just like, okay, if.

It goes above 195, it's okay. Otherwise I'm going to exit back under R6 which is going to be approximately 193.4. Now you guys can see my order window. I covered my position at 955 over overall making $50,000, approximately $49,000 on the NVDA trade. But because I took a loss on Tesla as well, Overall, I made $44,000 on this day.

Perfect. Well, everyone at home, drop a.

Comment of your biggest takeaway from this.

Episode. I know there was so much to take.

Away. Links for Jay will be in the description.

Below. So make sure you go check those out right now. And well, this has been chart for.

Nags. Take care.