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we're gonna get launched into my markets one other things that I want to show you
I'm giving you a handout
or materials list here
this at least from my the material that you have here from me at giving you the
handouts have all three
a my previous trading seminar sold-out seminars
we're not gonna go through any that today this is more P to take home in use
when I can go through
paper and and so for this is free to take back and study
the only page that is a interest is page number one
okay and I wanted them if you would turn to that basic strategy for intraday
trading
as well as our basic strategy for swing trading an outline symbol a point format
some other criteria so the filter technical signals are used to identify
and entries and exits the types of stocks
that were interested in trading for gaps and breakouts okay so for example
intraday trading I want only stocks have at least a two point average trading
range a1 stocks in over thirty dollars a share the printer least 10 to 20 K
shares the volume per minute
number rather specific technical criteria that's designed to keep you out
of
low-performing are portrayed and getting the better high percentage gap and break
out what do we see here going on today's
market anybody know what that stock is
how many have you looked at it now I know the real traitors in the house
because you folks were hunched over CNBC at 6 a.m. right
how many fewer looking at CNBC that's where you get your gap list right
before the market opens as the CNBC ticker one of the things I want to look
for stocks that have at least one point gap priced at least 20-30 share
in CNBC on the scrolling ticker that's where I got you babe this morning
and several others that I always think it's a
ritual I've been doing for many years we just don t to these how many of you have
pre market charts
set up how many views the signaling a free market chart so you can see what's
going on
from eight o'clock in the morning show of hands okay about
2/3 Rd get we have to see what's going on in each morning's market
and again we're gonna do here is a lot of interactive
table activities and turn to the person next to you coming over if you have a
question
and I think they're gonna do a lot of helping you go from transformation from
where you're at now three can be much more consistent successful in both your
entries in your exits and your filter in scanning criterion what you're looking
for is a traitor
was a run a tight ship no cellphones no noise allowed
okay a run in the I wanna make sure that you folks learn I want everybody to get
as much as possible I'm geared for success on a self-made millionaire know
how this works I want you folks to be successful in what you doing
and you have my word that you learn step-by-step exactly what you need to be
able to learn these traits successfully
in dealing with thousands of traders around the world
what are the challenges that I see is that most of them are over trading
stocks that they should be looking at the first place
so that's why I direct your attention the page number one
by hand outlets only pager gonna have to look at as Canada chichi love notes for
stocks that if you have a question about a stop I want you to come up with
questions take and what about
the lol what about comical what about
yday hear about Google their I want you to only ask about stocks that have a
good percentage a good training out in the first place meaning
don't ask about stocks that are say fifteen dollars stocks with a half-point
trading range
if you're losing your trading that's a big p7 one of the things I learned from
my colleague Tony oz is a friend of mine
he's very good at Radian one other keys to Tony successes he does a lot of work
in scanning on the front end to make sure that he's only plain
finding the bouncy can win by getting the best type which are patterns in the
in front of in the first place so
that's one of the things that I want you to keep in mind is a framework
as we work throughout today's and tomorrow session is identify with to the
stocks should be trading in the first place
and which ones you should avoid right and so this is one that looks quite good
or bad
even I one out of 1000 good
e-bay we had a gap down from a close a 40-point for
I won't use this laser pointer too much
to the tired to see wat gap down from a close
previous session 44 to open up where what's the size of the gap how many
points
he said when other things that I want to help improve your skill set into
that distinguishes successful traders from those who are trying but never
achieve success is your timing capabilities
is a former corporate statistician Quality Engineer for Ford rockwell
McDonald by with another's
know our work with real time manufacturing production staten that
helps me a lot in my training skills you need to be very timely very quick in
your analysis
I don't use like %ah squiggly line indicators because I these being
stochastics Rs I Bollinger Bands the rest because they're too lagging
instead what you gonna learn about is how to use
our time and sales window which gives you a very detailed look exactly what's
going on
and that equity REIT and this is the
that's the story what's going on in the very right now okay
so as a traitor this would be one other stocks one up one or two possibly that
I'd be interested in trading
on a gap this morning DC Heather the beta starts printing at eight o'clock
right
who can tell me why is it important to see what the stocks doing from
80 9:30 why would you even care about the pre market data
wise and imported
yet y el that that's a good way say no who's in charge to the stock also what's
the magnitude of the gap what's the trend
how clean is that trend line in the cup pattern right I'm always looking for
caps
in gap down stocks for example and you can see we've got immediate support
anybody at the thirty eight-a I be looking for a short where
collette out don't be shy I wanna teach you how to be more successful in your
training so be as interactive as you can
adults learn best by doing so in Iraq feel free to call out we're not gonna
so how did you ever say that can or going to be very safe learning
environment
where would be a short here who would go short at 39
nobody that's good we wanted to lose previous support at 8:38
I would make it was $38.5 myself right why would I do that
one of the things that I want to teach you about and you learn may keep an eye
on the
on the time here's we're getting ready for the opening bell and I need my ***
somewhere posted
at one of the things we want to be able to identify is what I call a safety
margin just outside immediate support or resistance that you not shorting the
media drop because
that's for market makers are going to confer stops right there waiting for
traders to
short the immediate support and they're gonna parka you know
2000 reserve refresh order on the bid and stop you out as a bounce is 38 again
see someone other things you want to learn how to do
is that that safety buffer underneath previous support for short
how many people like buying gap down stocks
don't ever do that anymore get over it okay almost always and I'm thousands and
thousands of trades in many years
despite what you may hear from people that have late-night infomercials and
claim to rule market
we'll go there gap stock so the starter in institutional trade so what you're
looking for is the gap down continuation
most at the time seventy eighty percent of the time that I see gap down a short
and who lost the support 780 person the time I see gap up I'm gonna buy that
stock and a breakout continuation
yep
reckoning yeah it's important gaps are on and also that you learn from Steven
Japanese parlance we call a Windows I don't know how to say windows in
Japanese even though my western Japan I my five-year-old daughter is much more
fluent than I at this point but
the point is gaps are the favorite stocks because at the start and
institutional I'm
trade and so that's where most to the volatility is likely to occur
let's take a look and a few other stocks hear from our previous session
weekend we want to hit the ground running today folks and tomorrow as well
so again please no
sound Munir everybody please make sure your
PCs are muted your cell phone sir on vibrate or whatever I don't have a cell
phone I refuse
and one electronic leashes but for those of you who insist on hand let's make
sure everything is
have quite so we have good clean audio for everything we're gonna go step by
step to this what's one of the first things when I look at
sectors happen if you've read one of my articles an active trader mag on sector
based
intraday in swing trading anybody your hand should all have gone up hopefully
read that well
we look for yeah our my my my old timers have been there with your
you want to look for relative strength what does this tell you over here what
sa relax
retail sector next is hardware followed by
biotechs followed by Internet software and then our cues right
that tells me way what that tells me they're not going to be interested as
much in semis or oil today right because we've only got .1 percent net change
from the open in the previous day's trading session crack
so make sure that you identify in relative strength using your sectors
if you pull up sector charts again you want to learn how to drill down
whether the first things I want to be able to do is identify
went to the sector charts are strongest also looking at our cues as a
market internal we've got an interracial kids right the queues are opening up
inside the previous day's rain so we are less likely to be aggressive
in our training everybody follow me so far
very fast pace but say he can't I'm out what I mean by that be sure to ask
questions
I will only have succeeded in training you if you can right back to me in three
months with 10
you know thousand the testimonials like other ones I gotta hey can I was able to
make x-men
number dollars you can be added these bad trade them a better trader:
because what you talking so I wanted to be sure to ask questions and get a
detailed
thorough step-by-step understanding what you're looking for
so first thing you doing each morning this is a drill
at every day in the pre-market you looking at where your cues are opening
up because that's what a surrogate
for the Nats composite is going to open up this is our composite
it's likely to open your 2162 today right
that your crystal ball it's a jump on competition most retail traders
don't know that given Etzler hell works anyway
so you NY and by the way
even though you could overlay the charts what that has the net effective doing is
compressing the range which is bad you need to see the link to the range is so
I don't put two on one I just flip back and forth see the
exact relative opening yeah question
okay question was didn't know out what was going to open lower 10 things we're
looking at
is the cues and as composite so this is yesterday's mass composite
and I don't want to we get a floating wireless handheld to
for questions I wanna make sure that that those are captured maybe one on
each table
yeah so with Naz composite and again we've got about seven minutes till opens
on
a quick answer gonna more detail later but a the q7
circuit for the composite we look at the previous day's
sector as our best to dataset our best quality information
for where the market and which are sectors are most likely to exhibit
continued relative strength on today's market right that's not to say oil
not going to have a banner day but the fact that they weren't trading at much
yesterday me close to flat
tells us that odds are oils not going to be an exciting sector force today
instead we focus on retail now wanted a quick drill here
go through some of the best looking charts
this is a cheap stock ale and why but I like the volume the range from 11 to 14
the summer's the 3-point range on a fourteen dollar stock
that I pulled off the CNBC ticker this morning
by the way to nice break out yesterday right you can see BIDU
what happened to cause that
right on the counter 3 say ignore news 123
but we know that that is likely the result is something hitting the routers
why right
some good news that impacted by the we don't care we're about
should I go along an 84 recorder shorted law so the eighty-one
one of the first things that you want to do is a traitor is make sure that you'd
rock
immediate support resistance lines to capture
and in Kelso price would be the box range here you wanna capture this is the
area
most risk in this particular equity REIT so
we likely would not want to trade this the only exception I P is that the stock
approaches the 83.5% poked its head over that and then starts ago South I might
far of a short and 83.3% but barring that
unlikely event the main point at this is that in the pre-market
before well ahead of the market open you need to go through the most volatile
stocks
these are found at the top and bottom love your quote box:
I like arrows how many people like to gamble
good only only one hand we don't gamble where the house right you wanna set your
odds
going to Vegas is the suckers pyrite the best as a .5 percent
house disadvantage on the pass no pass line for craps and even then you can is
calculate how long it'll take you a bit longer to lose your money
utility that you wanna trade in fact the odds in your favor unity the oddsmaker
you trade sell
what I like about Harris who can tell me why the stock is
interesting to me as an intraday traitor
year wide range how many points range does that have
within half for us four point
right right with 68 for up to 72 for so about
four-point range right so four-point range on a seventy dollar stock it's
characterized
by nice long single moves one other thing thing look and if I could draw
circle I draw a circle around this
in a circle around this I need to tell the signal to add that as a feature but
what to look for in previous days charts is the link to the single run prior to
consolidations
because you only play those stocks that have the best odds for continue playing
how hard the stock move $68.5 up to 60 95 so moved a four-point
before it ran out of steam right so that's a good stock to trade because for
intraday trades were only looking to get from point 32.7
consistently how small the think the stops and don't answer those have you
know my stuff but for those who aren't familiar
with mine award winning techniques what's a
professionally and it's one of the most modest guys in the world or not but
a what's the I don't need to be a what's inside the stop you should use for
Internet rates
ten fifteen cents for most twenty cents max
if you trade in a a Google shld Research In Motion with a bit wider spread you
might have to push that up to 3/8 have a point I'm still in
analog time even though I'm in a digital world but I've been training I I still
like 387
34 sorry I want others those guys you dated back in the
the bubble and did well one other things when I'm keep it is
at 38 yr tighter for your expenses stocks no more than say 10% 15% 20% sent
on outside
for intraday rights because your art and getting at least half a point
or better are what you're looking at and do that you need to
manager risk carefully with us we're
kont here's Google really good chart
I'm going to pull up the tape here's an old Jedi mind trick if you wanna find
out when the exact
open is pull up here in teller when you're high volume
nah stocks and that will
scroll by that's not a stock we trade by the way we never trade
Intel but we use anti Microsoft to see when the exact opening bell
Microsoft without their
and that tells me when opening bells gonna go on right
never I've had seen BC I mean since 2000 2000 right never listen the talking
heads you don't wanna put yourself with
what opinion as I say whether selling this on the street no
on this is a breaking supporter resistance where the technicals was a
relative strength was the tape tell me about the strongest stock in the
strongest sectors
and go for an entry in those so that's what's going on the market got about
three minutes to go
before we do that
what's good about Google if you take a look at the stocks trading range
how many points ranging Google about 10 points range which is pretty good for
tonight any dollar stock
worse the trading support trading support would be read into despair Cup
at 290 35 on the upside
295 5 on outside is what I call the immediate her closest Rangers that's one
of the things he would identify for open range breakout
and gap trading is the media support resistance within the nearest half-point
for most volatile stocks where would you go short
where be like the short
right about to ninety three four or so would be the earliest that we would look
at
if we see all show you how this works if we see
is a key trading point to this me 1000 the things I could do to week on summer
the West certainly you have in terms of the data available
authors consolidation but you're not really sure what it means just air on
the side to be conservative and pusher entry trigger
and other half for four point away from their current trading range that's
uncertain
if however for example a team got a real nice claim
support line at 290 35 and it's very well the finding that starts to dip down
we see time in sales
escalate in its speed we see share size and volume buyers increased and
far off the shorter 293 3 and watch it drop right so
want differentiate where they've got and I want to just keep it simple aggressive
for conservative
technical signals an aggressive or conservative trading style to match
that training pattern that you see in the stock okay on the upside breakout
where would you go along
how many people would buy to ninety five and a half in Google one last time can
ask whoever has the sound in there
computer to turn it off Russell have time I security guard come in
turn it off for you okay to ninety five and a half know you would not
um you not buy that right because why market makers are specialists are likely
to sit on the bed there right that's a fast break out a really wanna have
some safety margin about that for a long play right so
it would likely be where 296 three at the earliest
red wanted to break over the next whole number up on an upside
run understand that it's a key strategy the successful intraday trading find
these white charts
and I'll show you how to scan for those I and once they hit
support or resistance make sure that you're selling your entry trigger just
outside of consolidation
or chopper likely to to fade back area that you can capture an upside move
and then at the first sign a reversal which may be one or two opposing candles
on one minute chart
the scale and a half the position and trailer stop close to the balance
occurred about forty seconds hereto
today's opening bell this'll be fun
and 9:30 I want everyone to go ding ding ding okay so you can do your
do your New York Stock Exchange yeah that's good I like that
thank you let me that's right
caring about 20 seconds what you're about to witness is nothing less than an
amazing step-by-step demonstration of how you need to trade the open watching
need to look for
are gonna do this both today and tomorrow every detail for step-by-step
about 45 minutes into a market runs out of steam at around 10:15 maybe 1030
right best open range gap in breakout trades occur between say 935 940
in 10 or so past 10 that half hours golden ding ding ding
with thinking y'all were on at your income on what can a trainer that your
five seconds way
in day trading at my idea of a long term traders
12 minutes right eighteen minutes tops
and answers most of my traits 70-80 percent made a correlation
a mostly I might raise our between seven and allowed seven in 10 minutes
and round trip because that's how long socks in a movie for rent at a gas in a
French breakout well let's see what's Moo
the first thing you do
I keep the tape open down here
you see where the composites on it so it's near there no 21 63 64
one of the first things you do is click on double click that percent change
column and see which the sector's
are taking an early lead what does this tell you about the market strength right
now
what are they selling right retail
what else are they selling internet
so what does that tell you to do bangor look at Target Walmart Costco
lows you need to much like memorizing the periodic table of the elements you
need to know
what stocks on what sectors and you can I've got
you know downloadable where you can go see links to do that you need to know
that she can
titles n or find them in your POBox immediately
right what are they buying if anything what's showing the only relative
strength on an upside
buy signal in this morning's market oil so we look at
Halliburton the low in ER
right you need to know those stocks right shouldn't be a stranger to
that the magnitude of tells me that retailers three times a strong on the
downside to this three times as much style pressure on retail stocks
as there is by pressure in our oils for more
intrested and retail and if we then
pull up some of our
retail Tartine CK 0 inti froo not to anything Nike
what you do is start hunting
you look at it like a fishing pond you looking at the top and bottom
your sector Kobach sorted by most green most read stocks
and your process for intraday trading is always a matter scanning continuously
to the top eight or ten most greener most read stocks
throughout the morning I'm doing that constantly unit I run a room and and
train people in
wife markets when i'm looking to entrance I'm always looking at
constantly scanning through this and I'm gonna call out some stocks here I wanted
a
follow along on your laptop so if you want or at least see what we're doing
here
and participate what was our cap stock
rain
no usually I will just type that and I'm faster at that then
hunting around okay so what TV telling
chop you not gonna do anything unless it loses thirty eight seven at the earliest
right
but yet there's idiots training right now right why would you trade inside in
isolation think a sine wave
okay that's here your lowest odds entry right is inside because
again it's a herd mentality other traders are going to short that stock as
heavily as they will
if it's taken on new today low gap continuation right other traders not
gonna buy the stock
unless it takes out at least a 39-3 39.5% to the upside
most people should not be trading inside that range so that's fine
we move on usually to you will not see
data prance in your listed market stocks intel
say eight or ten minutes into the day right on mine for yourself so
even though you may see for example mike is a -1.6
it is not doing anything right here right
so what we need to look at is focused on your
and again tell me if you see any other stocks you folks should be scanning
alongside with me here
tell me if you see any other stocks are doing something interesting
with this document pressed to a sedate rated staking out a new high
yes or no and why well as page number and not my regulars rate right now
because he has no
but page number one why would I not be interested in
American Eagle
that and it only has a one-point previous day's range i 25 and after
twenty six-and-a-half
my arms are gonna be astronomical after nomic the lower to get a half point win
and that kind of a stock rather than say a Google or the lower helping others
that have say or
the Harrah's Entertainment at a four-point range so most traders a
trading stocks they shouldn't be
considering in the first place I might on a whim short a las the 26 7 on a fade
but not likely because my trade potential
always think keeping like a a bookmaker running oddsmaker what's the
percentage chance are you making a successful trade on a break out a
breakdown
and if it does make a move through your entry trigger
how far is a likely to go before it starts out
hey now no one point stock you not gonna get one point you're not going to get a
half a point you might be lucky get a quarter-point
nafta keeping quarter-point stops that and it's a wash I mean that's a 50-50
chance taco training so you wanna trade that the first place
he says the runs 238 without us right that that's that a little joke now
not odds are its gonna start here right under 27 home number
one other things you learn about is having his whole and half members
support resistant illustrated
with live data points with our prime see how it's not breaking over 27 are we
surprised
course not right I told you will be tryna so one other thing to do is
first overall pick the right battles meaning those stocks that have nothing
here in training volatility
to be worth a train Research In Motion
and again I'm going to put you folks on the spot because I want to learn how to
trade in the way I do that
is to go step by step 2 live market charts angrily and again religious
forty-five minutes on their gonna
shift gears and do other activities but the open is critical for you to learn
how to trade
most traders remember are trading stocks addition be trained in the first place
because the odds aren't there and they don't know any better
right there's lotsa stocks you could be trading only a few that you should be
trading
and I want it it's my goal to transform your understanding to give you the
pattern recognition skills
seeking go from where you're at been indiscriminate kinda like when I was
younger and one out tonight club tonight go out with any woman to look nice
anything else I'm more mature I understand that honesty in values and
good character much more important than how someone looks it took me
twenty years to learn that hopefully you'll learn how to be more
discriminating I earlier at a good example so
and it's a valid 12 make sure that you're choosing your charts much more
carefully than you normally do
by may be a factor of 10 make sure that you as you identify in which stocks he
should be playing with in the first place
you much more careful about what happened char pattern serve interest
Research In Motion is that 10 K for intraday trading
yeah just barely 78 2797
not quite two points so when we do
think about for everything they're gonna talk about
black and white conservative or aggressive I would be more conservative
on trading this because it's an eighty dollar stock with only a
just under two point range thus the forty dollars stock with a three-point
range
I'd be more gung-ho more aggressive so as I explain the techniques to you I
want you to identify
where the ninety be aggressive a conservative and mentally think how many
shares would that mean for you
for new traders that might be 100 versus 300 or 200 versus 500 shares more
experienced traders I'm I P five-hundred versus a thousand shares
for 2k versus 5k if you have a player