How to Make Trading Easier & More Profitable NOW

Summary

In this lecture, Jared Wesley of Live Traders addresses the challenges of trading, emphasizing the importance of simplifying the process. He outlines a five-step strategy for successful trading in 2024, focusing on finding stocks with potential, developing a market bias, identifying relative strength or weakness, waiting for patterns, and managing trades effectively. Wesley stresses the need for proper risk management and urges traders to avoid overcomplicating their strategies. He shares real-life examples and warns against the pitfalls of ego and fear in trading, advocating for a disciplined approach to achieve financial freedom and flexibility.

Takeaways

• 📈 Trading in 2024 can be simplified by following a structured process.
• 🚫 Avoid overcomplicating trading; it's not as difficult as many make it out to be.
• 💡 Focus on money management and risk control to prevent significant losses.
• 🔍 Identify stocks with potential by finding voids on higher time frames (60-minute or daily charts).
• 📊 Develop a market bias based on pre-market conditions and monitor relative strength or weakness.
• 📈 Wait for confirmation of strength or weakness through patterns before taking a trade.
• 📉 Use stop losses to manage risk and protect your capital.
• 📝 Keep emotions out of trading decisions; let the chart dictate your actions.
• 🔄 Be prepared to adjust your market bias based on new information and price movements.
• 📌 Look for patterns such as engulfing bars, three-bar plays, and other technical setups.
• 🚨 Don't let ego drive your trading; prioritize making smart, calculated decisions over being right.

Q & A

What is the main topic of Jared Wesley's lecture?

The main topic of Jared Wesley's lecture is how to make trading easier in 2024.

What does Jared emphasize as the first key to successful trading?

Jared emphasizes money management as the first key to successful trading.

What is the significance of finding a stock with void on a higher time frame, according to Jared?

Finding a stock with void on a higher time frame is significant because it helps traders identify potential opportunities and avoid overextended stocks.

How does Jared suggest developing a market bias?

Jared suggests developing a market bias by observing the market's direction before the market opens, using tools like the Q's, SPY, or IW.

What does Jared mean by 'relative strength' and 'relative weakness' in trading?

Relative strength and relative weakness refer to how a stock performs compared to the overall market. A stock showing relative strength is outperforming the market, while one showing relative weakness is underperforming.

What is the importance of managing trades according to Jared?

Managing trades is crucial for maintaining control over risks and ensuring that traders don't make impulsive decisions that could lead to significant losses.

Why does Jared stress the importance of not overcomplicating trading?

Jared stresses this because many traders make their trading unnecessarily complex, leading to poor decisions and increased chances of losing money. Simplifying the process can lead to more effective and profitable trading.

What is the 'Holy Grail' in trading that Jared mentions, and why does he say it doesn't exist?

The 'Holy Grail' in trading refers to a perfect, fail-proof method or system for making money. Jared says it doesn't exist because trading is not about finding a magic solution but rather about applying sound principles and managing risks effectively.

What advice does Jared give to traders who are struggling with their trading strategies?

Jared advises struggling traders to simplify their trading approach, focus on money management, develop a market bias, look for relative strength or weakness, wait for patterns, and manage their trades without letting ego or emotions interfere.

How does Jared address the issue of personal emotions affecting trading decisions?

Jared advises traders to eliminate personal emotions from their trading decisions, emphasizing that the market and the charts don't have feelings. Traders should read the charts objectively and adjust their opinions based on new information.

Outlines

00:00

📈 Introduction to Trading in 2024

Jared Wesley from Live Traders begins a lecture on simplifying trading in 2024. He emphasizes the importance of following a process to make money and criticizes traders for overcomplicating their strategies. The lecture focuses on five key points to improve trading and Jared expresses his frustration with common mistakes made by traders.

05:01

🚫 The Dangers of Overconfidence

Jared discusses the pitfalls of overconfidence in trading, using a hypothetical trader's story to illustrate the consequences of not using stop losses and risking too much money. He stresses the importance of money management and the dangers of ego in trading, leading to significant losses.

10:01

🔍 Identifying Trading Opportunities

The lecture continues with Jared explaining how to find stocks with potential by looking for voids on higher time frames and developing a market bias. He advises traders to wait for stocks to show relative strength or weakness against the market and to manage trades effectively.

15:02

📊 Reading the Market and Adjusting Bias

Jared emphasizes the importance of adjusting trading bias based on new information and market movements. He uses examples of candlestick patterns to illustrate how traders' perceptions of market strength or weakness can change, and how this can affect trading decisions.

20:05

📉 Understanding Candlestick Patterns

The speaker delves into the significance of reversal candles and their potency, measured by the depth of penetration into the prior bar. He explains how tails on candlesticks can indicate changes in supply and demand, and how this affects trading decisions.

25:07

📈 Wide Range Bars and Market Dynamics

Jared discusses the implications of wide range bars, which can indicate that buying or selling is being ignited or exhausted. He explains the importance of context and how different scenarios, such as consolidation or pullback days, can impact trading strategies.

30:07

📊 Trading with Market Expectations

The lecture highlights the importance of understanding market expectations and using them to inform trading decisions. Jared uses specific examples from the market to demonstrate how to identify opportunities and manage risk effectively.

35:09

🤔 Simplifying Trading and Ego Management

Jared concludes the lecture by reiterating the importance of simplifying trading and managing one's ego. He stresses that successful trading involves following a basic outline, including money management, trade management, and recognizing patterns. He encourages traders to focus on the fundamentals and avoid unnecessary complexity.

Keywords

💡Trading

Trading in the context of the video refers to the act of buying and selling financial instruments such as stocks, with the goal of making a profit. It is the central activity discussed by Jared Wesley, who emphasizes the importance of simplifying trading strategies to increase effectiveness and profitability.

💡Money Management

Money management is a critical aspect of trading that involves controlling the amount of capital risked on any single trade. It is essential for preventing significant losses and ensuring the longevity of a trading career. Jared stresses the importance of risking small amounts of money per trade to avoid catastrophic losses.

💡Market Bias

Market bias refers to the trader's预判 or expectation of the direction in which the market or a particular stock is likely to move. It is developed based on pre-market analysis and can change throughout the trading day as new information becomes available.

💡Relative Strength/Weakness

Relative strength or weakness is a concept used to compare the performance of a stock against the overall market or a benchmark index. A stock showing relative strength is outperforming the market, while one showing relative weakness is underperforming.

💡Patterns

In trading, patterns refer to recurring price formations or trends that traders use to predict future price movements. These can be technical chart patterns like breakouts, reversals, or continuation patterns.

💡Stop Loss

A stop loss is an order placed with a broker to sell a security when it reaches a certain price. It is a risk management tool that helps limit potential losses on an investment.

💡Ego

In the context of trading, ego refers to the emotional and psychological aspects that can lead traders to make poor decisions, such as overconfidence or the desire to be right at all costs.

💡Flexibility

Flexibility in trading means being able to adapt to changing market conditions and adjust strategies accordingly. It is important for managing risk and capitalizing on new opportunities.

💡Gap

A gap in trading refers to a price range where no trading occurs. Gaps can be upward or downward and are often used by traders to identify potential support or resistance levels.

💡Volume

Volume in trading is a measure of the number of shares or contracts traded during a specific period. It is often used to confirm the strength of a price move, with high volume indicating strong interest in a particular security.

Highlights

Jared Wesley emphasizes the importance of simplifying trading in 2024.

He criticizes traders for overcomplicating their trading strategies.

Jared stresses the need for good money management to avoid significant losses.

He shares a personal anecdote about a trader who doubled their account but then lost it all due to poor risk management.

Jared explains the concept of finding a stock with 'void' on a higher time frame for trading success.

He discusses the importance of developing a market bias before trading.

Jared advises traders to wait for a stock to show relative strength or weakness against the market.

He emphasizes the significance of patterns in trading and how to manage trades effectively.

Jared shares a real-life example of a trader who lost money due to overconfidence and not using stop losses.

He explains how new information can change a trader's bias and perspective on a stock.

Jared discusses the potency of reversal candles and how they are measured by the depth of penetration into the prior bar.

He provides insights on how to interpret wide range and narrow range candles in trading.

Jared uses a basketball analogy to explain the importance of playing the odds in trading.

He outlines the five market stock events related to strength and weakness.

Jared stresses the importance of eliminating personal emotions from trading decisions.

He provides a detailed explanation of how to find a stock with a gap, develop a market bias, and wait for a pattern.

Jared shares a personal story of his early trading days and how he overcame being an 'idiot' trader.

He emphasizes the importance of having a plan B and being prepared for all possible scenarios in trading.

Jared concludes with a call to action for traders to take trading seriously and follow the five bullet points for success.

Transcripts

hey guys Jared Wesley here of live

Traders and it is that time of the week

it's lecture time and this week guys I'm

smashing some faces in you're like what

that's crazy yes I'm going hard on you

guys I'm going tough on you guys this

week's lecture topic guys is how to make

trading easier in 2024 all right lot of

great slides there's a five bullet point

slide on here that literally is your

process to making money in 2024 and I'm

going to be very tough on you guys in

this lecture because I am tired sick and

tired of watching you guys F things up

and make huge mistakes trading does not

have to be so difficult it's you that

are making it this difficult so today if

you listen to this advice you'll be able

to simplify your trading and be more

effective and hopefully make more money

as well that's the goal right Freedom

flexibility time well you need to be a

good Trader to have those things and

this lecture will hopefully help get you

to that place all right right how to

make trading easier in 2024 all right if

you like these videos please click the

like button smash Hammer that subscribe

button I'm Jared Wesley of live Traders

let's get to

[Music]

it this week's lecture topic is how to

make trading easier in

2024 right I think we're all looking for

that Holy Grail well not to bust your

bubble it does not exist however there

are definitely specific things that you

can do to make your trading easier and

I'm finding that people are over

complicating their trading um and if I

get a little bit tense um or uppity

during this lecture it's because of that

I may resort to yelling at you at some

point today probably not but it's

possible um because I'm watching what

people do and I'm disgusted by it uh I'm

watching some of the things people are

trying to do and they they just defy

logic I mean literally just throw logic

out the window and just throw at

the wall and be like yeah I hope it

works you know like trying to short the

strongest stock in the entire world so

you can escape 10 cents from it um those

types of things um but more than that so

today we're going to talk about what you

can actually do to affect change in your

trading and what you should be looking

for to make your trading easier it's

really not that difficult it's not

rocket science I promise you I'm not

lying when I say this it's not rocket

science Forest Gump can do it you can do

it all right so we're going to talk

about probably three or four simple

things that you can do to really

supercharge your trading but remember

just because they're the right things to

do I can't promise you'll actually go

out and do them because your ego your

mind whatever may keep you from doing

those things but hey some people like

having a boss some people like being

broke some people like being poor it's

like some badge of honor like misery

loves company good for you people I

can't help you but for the people that

have a genuine wanting and willingness

to move away from that and not have a

boss and have freedom and flexibility

and want to earn money so you can do the

things you actually really want to do

well then this lecture is for you okay

for everybody else you know just keep

winging it all right just keep hanging

around your poor friends and being just

like them all right now before we get to

that let's talk about how to be

poor when will the insanity

stop now this person didn't put a

specific number on this so I don't know

how much it is but it says I have lost a

lot of money what do I do um so a few

months ago I started Futures Trading

because I'm not interested in long-term

investing first of all you're an idiot

okay I am not interested in long-term

investing what are you a dumb dumb as a

brick of course you should be interested

in long-term investing it's how you're

going to retire someday okay but let's

push that aside I had X dollar we don't

know how many okay maybe 44 billion

after a few weeks I started making quite

good profits which allowed me to almost

double my deposit to 2 x now first of

all do you guys see any issues with that

sentence other than the grammar after a

few weeks I start after a few weeks a

few weeks a few weeks I started making

quite good profits and basically doubled

my

account you doubled your account in a

few weeks with very little to no

experience okay yeah sounds about right

that just defies logic and common sense

like I just said stupid is a stupid does

sir okay I became overconfidence shocker

okay you must have been really confident

when you were trading that much money a

few weeks into your trading career I

didn't put stop losses in and this is

what killed me yeah you're right it's

exactly what killed you you're correct

um but more than not putting stop losses

in risking way too much money if you

didn't put a stop loss in and you risked

$5 on a trade how bad could it really

really really be honestly think about

what I'm saying if you're risking five

$5 a trade and you lost a 100 R you lose

500 bucks it wouldn't be the end of the

world and you wouldn't be writing a post

I have lost a lot of money so even if

you don't take stop

losses risking small amounts of money is

still a great idea because the worst

you're going to lose is 50 100 200 bucks

not 50 100 200,000 I don't know what

this person lost but seriously doesn't

sound like it was good all right I can't

imagine telling telling anyone from my

family about this this was a

considerable amount of

money guys this is just stupid that's

all I can say some people think it's

rude or mean of me to be so tough on

these people I it's not I'm trying to

make a point to you guys this is real

this business is no joke and if you

don't respect it and you wake up one day

and decide that you're just better than

the market this is going to happen to

you and you're going to lose a lot of

money so while I tell everybody you know

this is important for trading that's

important number one thing is always

money management isn't it because if you

risk very very very very small amounts

of

money you can't lose a lot of money

right you just can't okay um exactly

Brian how do you get rich you know

risking $5 a trade I can't and that's

what these people think well I I can't

get rich doing that and and my buddy

Jimmy over there doubled his account in

a month and I have to do the same thing

and so and so made gazillion dollars in

crypto blah blah blah blah blah blah and

it's why you're not trading anymore and

it's why you've lost all that money

right now yeah you're probably wishing

you had that money back guess what if

you risked $5 a trade you'd still have

99% of

it you got 99 problems but a stop loss

ain't one all right all

right let's move along this stuff just

pisses me off when I see people just

being stupid it's called proper risk

control or money management get some

plain and simple go get some now we're g

to get to the Brass tax here on the next

slide okay we're going to get to the

Brass tax and this slide is basically

everything you need to know about

trading

okay it's not everything you need to

know it's most of what you need to know

about trading

okay these are the actual genuine keys

to successful trade no there's no sales

pitch in here no there's no hey buy my

course there's none of that these are

the actual keys to successful Trading

find a stock with void on a higher time

frame a 60-minute chart or a daily chart

you can scan dollar gainers dollar

losers or other preferred scans to find

it now obviously when I say find a stock

a well you need to know what what void

is Right obviously but find a stock with

void on a higher time frame okay

obviously there's more to it like it

can't be too extended right can't be 17

days in a up there's a little more to it

than that develop a market bias on the

q's Spire iwm in the pre-market before

the Market opens at 9:30 develop a

market bicycle do I think the Market's

going higher lower or neutral today then

from your scan is preferred misspelled

what is it two RS what was it yep it is

two RS there we go all right

so

from your scanned list above watch and

wait for a stock to show you relative

strength or relative weakness notice I

did not say a pattern yet I said W watch

and wait for a stock to show you

relative strength or relative weakness

against the market the market meaning

the cu's the Spy or the IW you're like

well how do I know which one I got an

email last night about that I'm like

well if it's a NASDAQ stock The Q's if

it's a New York Stock the spy and the IW

M you could use probably for all of them

cuz this one usually lags the other two

so NASDAQ stock Q's Nvidia Apple

Microsoft meta great IBM cocacola

whatever spy it's pretty simple this can

be done on any time frame I prefer 2 and

five minutes for morning scalping that's

what I prefer if I'm going to scalp the

first hour of the day I prefer watching

the stocks on Two And 5 minute charts to

gain the relative strength or relative

weakness concept you can do it on on a

three and a five I don't like the one

minute that much I still look at it I

still use it but I don't trade off of it

okay um very often occasionally I do all

right today we did on Roku but anyway

two and five minute then after this

after finding said stock then watch and

wait for a pattern on said stock three

bar play buy set up sell bra whatever

take the trade manage in between and

don't be an idiot that's it take the

trade manage in between and just don't

be an idiot that's it I've just summed

up the basic process of successful

trading now is there minutia to this

like what does a good three bar play

look like yes what does a good gapping

stock look like yes okay yes there's

more to this right when I say find a

stock with void I don't mean a stock

that had a 500% ATR day yesterday I

don't mean a stock that's down N9 days

in a row and you want to short it I

don't mean that but there's more Nuance

to that but this is the basic five

bullet points you need to know and you

guys are it up that's all I have

to say you're it up plain and

simple I told you I was going to get a

little uppity today I look at the

that you guys put out there and I twist

my head and I'm like the are you

thinking yes strong words some people

are offended by it sorry go to your safe

space find your binky and blank

all right this business does not have to

be so damn difficult why do you make it

such ask yourself go look in the mirror

walk away for a second go look in the

mirror why do you make it so hard why do

you make it so hard ask yourself that go

look in the mirror why do I make this

business so hard cuz you're an idiot I'm

not preaching at you I've been that

idiot I was that idiot for probably 18

months to the two years when I started

okay so is it hyp a little hypocritical

it is a

little but I'm trying to Rattle you and

Shake you because this is the crap you

guys do and really these five bullet

points are everything you need find void

find a market bias find something that's

stronger or weaker than the market then

take a pattern manage in between and

don't it

up that's it we can just close the book

now and go home sad there's like 12 15

more slides

left moment of silence for the

idiots it's a it's astonishing to me

honestly because this is all trading

really is everything else or anything

else that you do is just ego driven

anything else you do is just based on

your

ego or fear or fear you get out too soon

that's fear trying to short the stronger

stock in the market that's ego not

taking a stoploss it's a little bit of

both just stop doing those things okay

now let's get into some nuts and bolts

all right you're going to see this slide

at the end of the presentation I'll

remind you of it again and I'll probably

be mean again all right eliminate

personal emotion guys just read the damn

chart okay what were Traders thinking as

the Red Bar was forming and creating an

engulfing bar so what we have here we

don't know the previous information

we're just going to go with the seven

eight bars that we have in front of us

okay we have a consolidation here right

red bars green bars red bars green bar

and then we see a big red bar come in so

Traders were likely thinking when this

red bar was forming that this support

area is being broken right this support

area is being broken and the stock is

likely going lower does it mean it's

shortable I don't know I don't have

enough

information but that's the thought

process sellers are finally taking full

control we had a tug of war we had a

battle here sellers take over over here

on the right though has their thinking

changed when it turned into a bottoming

tail bar and if so why well yes right

obviously yes because what does this

represent this represents a test a

battle and the battle was won largely

mostly by the buyers right right because

this tail we talked about it a few weeks

a month ago this tail is actually green

right it was all red like this this bar

right here looked identical to this red

bar over here at one point in time they

looked identical but now they don't now

one has tail and that tail represents

buyers it's just green green green green

green green green green Green so the

stock tried to break under support and

go lower it was not able to consolidate

the effort low lower right it was not

able to consolidate the effort basically

it was just a peekaboo below and right

back up which was does what it outs the

buyers it does it outs The Bu it

basically if the buyers were trying to

be koi up here not showing their full

hand they showed it right here they said

yeah we're actually really strong

there's actually quite a few of us we

didn't want you to know that but there's

actually quite a few of us so new

information changes the picture which

changes our bias a possible break turns

into a confirmation of strength now why

am I bringing this up to you because

this happens all the time you look at a

stock and it looks like it's got great

strength and then new information

suggests it has weakness or the new

information confirms the

strength this is new information and

every time you get a new bar a new pivot

you get new information and you have to

adjust your opinion it might be the same

opinion based on the new information but

it might be a completely different

opinion it's like when someone says do

you ever fade a stock on the Gap list

well yes if I get new information that

suggest I should then we might fade a

stop ba the other day was an example it

was a big gap down that we look to go

long on potentially right so new

information might change your opinion

this is the same idea same concept what

were Traders thinking weakness has their

thinking changed when it turned in from

a red bar into a green engulfing bar we

saw this was it yesterday or Monday we

saw this on Dell granted Dell didn't

have all this craziness to the left but

Dell started off

weak and then it got completely engulfed

and then the next couple bars later put

in a little bit of a bottoming tail and

then Dell just went higher for the rest

of the day hint hint you're going to see

Dell later I'm pretty sure I put it in

here new information changes your bias

changes your opinion changes your

perspective stop with the personal

opinions just read the chart the emotion

that you're feeling has nothing to do

with the chart it has everything to do

with you the chart has no feelings it's

just a

chart but the chart inside of it has

people in it right everyone that's

trading this stock I don't care if it's

a pension fund I don't care if it's

Pablo Escobar back in

1993 everyone who's trading this stock

is represented in these green and red

candlesticks

but in and of itself there's no emotion

there you're placing your personal

emotion on it just let the chart speak

to you stop speaking to it don't yell at

it just be calm and listen and in this

case what looked to be weakness turned

into a confirmation of strength you go

long on this and you go long seven out

of eight days of the week sorry eight

out of seven days of the week okay so

candlesticks just keep it

simple a reversal candles potent poy is

measured by the depth or level of

penetration into the prior bar go back

go

back the depth and level of penetration

on this green bar is over

100% if this green bar was like 10%

20% there's actually no real level or

depth of penetration here you're still

believing and thinking the sellers might

be in control right if this bar right

here was that

big right give it a second if this bar

was that big you're still thinking it's

super

weak but when the bar is that

big it completely changes your

opinion because of what it accomplished

and what it accomplished was getting rid

of all of these sellers they're gone now

they've been overtaken okay so we go

back a reversal candle's potency is

measured by the depth or level of

penetration into the prior bar we just

saw it okay tails on a candle either

increase or decrease

Supply topping Tails increase Supply

bottoming Tails decrease

Supply okay we just saw that too the

slide before that okay this bottoming

tail is decreasing Supply demand is

increasing demand is increasing it's

eating up the supply when you think

about supply and demand there's 100

pairs of jeans for sale a whole slew of

people come into the store and all of a

sudden there's only 20 for sale now

because they bought the other 80 pairs

that's what this bar

is Supply is waning demand is increasing

that means higher prices if you owned a

store and demand was huge for a product

you'd raise the prices of course you

would that's just good

business so read the

chart okay don't put your personal

opinion to it your emotion just read the

chart okay yeah probably

Jordan anyway expanding range candles

wide range igniting bars tell us buying

or selling is being ignited or exhausted

context is important here what does this

mean a wide range bar that's four or

five bars up is likely being

exhausted right you have to think for

example Nvidia right now might be

getting close to exhaust question but if

that wide range bar is the first or

second bar it's likely igniting the

volume has an impact on this as well

narrowing range

candle

sorry sorry narrowing range candles tell

us that volatility is low and momentum

is decreasing but context is important

where they happen matters okay where

they happen matters all right so let's

take a look at some charts you've seen a

couple like two of these charts and the

other four or five you haven't seen all

right so the first two I think you've

seen before all right engulfing bar

picture of money we talked about it a

couple slides ago you have a nice three

bar play four bar play turns into a

breakout right then you get this sellers

try to creep in boom they come right

back up that means buyers say whoa hold

my beer this is wonderful because now

you know what your stop is it's

definitely under that bottoming tail and

now you have a confirmation of strength

buyers just proved to you that they were

really strong you knew they were strong

over here but then the sellers tested

them they went into the ring hit them in

the mouth and they said please hold my

beer please is that all you

got bottoming tail go higher same here

same concept right three bar play

actually stops out right little three

bar play one stops out but then you get

a green bar which you're like okay this

means higher prices and then it gets

complet completely engulfed by a red bar

the sellers going no no no no no hold my

beer so there was a battle that formed

right and the sellers clearly won they

were winning beforehand but they were

tested right here and they passed the

test great entry super great yes you may

have been stopped out on the first entry

if you didn't give it room I usually

give them room but if you didn't you

probably got stopped out on the first

three bar play you get back in and this

is

amazing take the easy money

take the easy

money on the flip side eliminate your

emotions 1 2 3 four five 6

78 nine bars up topping

tail that's not

bad right because you're at resistance

or peeka boot above you leave a huge

topping tail huge volume on the previous

bar but I'm not going to be the topping

tail I'm going to wait for it to trigger

I am not going going to be the first

person to short this Damen I'm not while

I have a strong inclination there's a

pullback

ahead I'm going to let it confirm and

the confirmation means waiting a little

bit and waiting means giving up a little

bit of profits I'm giving up a little

bit of money for a higher likelihood of

success you can get in at 122 on maybe

Dro down to a lower lower time frame

right but it's a little bit riskier

because you're the first person that's

willing to short the stock right you're

the first person willing to short the

stock I don't need to be first I just

need to make money that's it don't need

to be first put the ego away I'll let it

trigger pulls back down to the moving

average okay the waiting is the hardest

part rest in peace there pulls back to

114 kind of chops around and that's it

that's that's that's the meat and

potatoes 12 20 119 down to that 114 area

five bucks that's the meat and

potatoes

now do you guys remember this I hope so

wasn't that long ago was yesterday it

was

yesterday I really need you guys to pay

attention to this slide

okay this was the

cues two days ago on Monday super wide

range green bar on the 60 Green Bar

Green Bar Green Bar Green Bar Green Bar

Green Bar I think we can all agree that

it's not that often that the q's put in

a seven or eight move that's a big move

for the q's that's nearly a 2% day and

for the q's 2% is a lot so

guys what generally happens after an

extreme wide range bar on a stock

extreme note I said extreme I didn't say

wide range I said extreme wide range bar

what typically happens talk to me I need

answers from this

one what typically happens the next day

after an extreme wide range

bar only one person's willing to stti

their NE stick their neck out it's like

you guys dropped your pants in Alaska

it's all shriveling

up there's

usually one of two things happens

usually a consolidation day inside

consolidation day or a pullback right

that's most of the time right there's

usually some type

of time correction or pullback like I

said an inside day or a pullback okay

they can be challenging days to trade

okay but usually a lot of chop okay so

to me after I saw this day on Monday I

thought that's what I'm expecting on

Tuesday which was yesterday right and

what do you get this little area right

here at 18350 a little kind of one

minute

breakdown stop loss up here now hold on

hold

on just pull this

here I'll delete it in a

second let's make it super wide so you

can see

it there maybe yellow

maybe orange

okay this was the stock off the open on

the one

minute this was the market off the open

on the one minute green green Green

three bars in a row red green

red red green red green green Green

granted it's early 3 minutes into the

day is very difficult to discern actual

bi

in 3 minutes okay very difficult but the

early indication the early indication is

relative weakness on the

stock relative weakness on the

stock the previous day in the market

okay the previous day in the market was

a monster monster wide range Green Day I

am not to be

clear I'm not EXP ing another monster

Green Day so what there's there where

does that leave me there's safety

there's safety uring a stock today why

because the the likelihood of backto

back extreme wide- range green days are

small it could be a small green day but

that's probably not going to hurt my

relative weakness too

much but the odds of backtack wide range

monster days slim very slim I'm playing

the odds so if I look for a stock with

relative weakness on a day that I

believe will be

choppy I think my odds go

up and this stock clearly had relative

weakness stock gaps down Market gaps

down Market bullies stock goes sideways

Market bullies stock goes

sideways

18350 stop loss

18425

breakdown boom drops down like

18275 now is that a monster move nope

it's not a monster

move okay it's like one

R but it's the concept that I want you

after this stock dropped like a stone

the second the market pulled back I want

you to take a look at it pull this over

to here right

there right there the second that the

market

started to pull

in this stock started going

south and it kept going and it kept

going do you understand the concept I I

need yeses or NOS here do you

understand why this trade looks so good

it's not just a breakdown you have to

look at the previous day in the market

you have to look at what the current day

in the market is doing and you're

sitting here going damn I'm starting to

really check a lot of boxes

here we're probably not going to have

backtack $7 days in the cues that's

that's a that's rare and if that does

happen you chalk it up and go okay it

was a statistical anomaly that day that

was an outlier backto back $7 days in

the CU come on outlier I'll take the

loss if that happens right pulls back

shows relative weakness that's it

that's it this is not

complicated not complicated at all all

right let's try it

again guys remember this

one told you it'd be in here no brainer

trade two-minute turnaround bar where

the market bounced

so this was the day the market decided

to bounce now I used the Spy because

this is a New York Stock now the cues

are a little bit easier to read on this

day okay

okay but take a look 1 2 3 4 5 kind of

five or six down days nearing some

support five or six down dayss nearing

sport now was I expecting a $7 day no no

no but I was expecting a bounce I wasn't

expecting a $7 day but I wasn't

expecting lower either meaning I didn't

expect this to put in a monster move but

I did expect a bounce so you take a look

at Dell what do you have a stock that's

been moving higher chopping around and

it's just gapping just enough to get

over this prior pivot right around the

$78 Mark okay now I should have put the

two-minute spy in here I apologize I'm

sorry I forgot to do that but you can

see the daily of the spy in the daily of

Dell Dell's already showing relative

strength the market gapped up very

subtly Dell gapped up nicely my bias on

the market was long bias on Dell long

what happens Dell gaps up immediately

puts in a pretty good size for Dell a

wide range bar right this is a wide

range Red Bar on Dell and right after

the wide- range Red Bar Green Bar comes

in and engulfs it confirmation of

strength buyers said to the sellers

sorry we're just stronger than you

today little bit of a push higher slight

and then what another bar right here

that bottoming tail bar is another

confirmation of strength stock moves up

pulls back moves up pulls back and just

grinds higher all day pretty easy money

it started off strong and never really

put you in trouble you're in at 7810

stop 7740 you're going oh my gosh it's a

wide stop 70 cents but it did go to 7970

or something like that like a$1

60 it all starts with your your Market

bias the gap on the stock and then a

pattern oh like like that slide said oh

my

gosh no

brainer after that it's just the don't

be an idiots part right just don't be an

idiot you did everything right you

scanned for a gap you found one you

developed a market bias long great you

waited for relative strength or a

pattern and or a pattern you got it then

you take the trade manage in between

don't be an idiot take the trade manage

in between don't be an

idiot okay what about this exceptional

technical understanding stock has a very

small Gap up gets to $50 and then just

loses its just just tanks one 2 3

four five six bars down bounce pull back

bounce well look at the whole picture

what is the expectation start on the

higher well stock has a small Gap up

goes to 50 bucks just above resistance

right it's actually on the 60 a little

higher but on the 5 minute right at 50

and where is 50 the same exact spot the

stock failed

before it fails again comes all the way

down to the low what happened the last

one two 3 four five 6 7even eight times

it's tested 4850 bounce bounce bounce

bounce bounce some bounces are bigger

than others but it's bounced the last

five six times it's tested what's

probably going to happen it's probably

going to bounce volume Spike at the

bottom retest over here now I am not

telling you to necessarily buy this

trade I am looking at this and showing

you this slide so that you'll understand

the

expectation the expectation is bounced

it's extended super wide I mean look at

the size of These Bars compared to the

previous bars over here right look at

the size of those red bars compared to

these red bars these bars are like 5x

These Bars these are super wide range in

bars then you get a huge volume Spike

down low here and it's all happening

right at higher time frame 60-minute

support where the stock has bounced like

five times previously you're going to

get a bounce I would rather see you buy

this at 4860 even though it only went 15

cents or buy that okay now I am not

trying to say you would definitely take

this or not take this but there you

could certainly come up with some

reasons I'm trying to get you to read

multiple time frames take the 5 minute

take take the 60 match them then look

for an entry pattern look at what the

Market's doing put it all together it's

really not that difficult to do I think

most people can look at this pink line

on the 60 and go yeah there's a lot of

support there and then you can look at

this and go yeah there's a lot of

support there because of the 60

right guys find a stock with void on a

higher time

frame 60 Minute and daily for intraday

Traders scan your dollar gainers and

your dollar losers or other preferred

scans if you have a a trading platform

that has a different scan if you use

Trader viiew or finviz or whoever you

use obviously there's more to this

you're going to need to know what a good

Gap looks like like the Dell Gap was a

nice Gap going to develop a market bias

every single morning your goal is to be

as accurate as possible and remember

your initial bias might change 15

minutes into the day the market might

throw you a curveball and you may have

to be flexible which is why we always

put a long and a short list together

even if our bias is strong long I still

put a short list together if my bias is

strong short I'm still putting a long

list together prepare for all possible

scenarios have a plan B okay from your

scanned list above watch and

wait

for the stock to show you some relative

strength relative weakness against the

market this can be done on any time

frame right I just like the two and the

five after finding said stock watch and

wait for a

pattern take the trade manage in between

and don't be an effing

idiot roko

today one minute Roku

one minute

Q's Q's put in a wide range green bar

little one minute three bar play

peekaboo and started just chopping

around as they chopped what did Roku do

two four 6 eight eight or nine bars into

the day two four six eight or nine bars

in the day one is basing near the high

one is basing near the low one is basing

at the high and one is basing at the

low that's relative weakness

my market bias today was not strong long

my market bias was chop

choppy if my market bias was strong long

maybe I don't take Roku right if my

market bias is strong long maybe I don't

take Roku but that wasn't my market bias

today so I look at it 9065 970 92 stop

loss there's the call rokers weer than

the market there's the p&l whatever

also hold

on there's

Roku breaking a 15minute trend line at

$92 my only concern was this bottoming

tail right here right there and that was

at like 9040 or something like that

somewhere 9035 9040 something like that

okay that was my only real concern why

because all I needed to get to 90 once

we got to 90 we take some off and go to

break even I don't have to worry about

the $89 pivot for me because once I get

to my $90 area it's free money lock in a

th000 bucks go to even hope to make four

grand and there's your 15

minute I personally I look at this

as as easy trading the only thing that

could have really hurt me here was a

market breakout an unexpected breakout I

thought the market would be Cho Choy and

it was it was bullish choppy at the time

but then it got weak and then when the

market got weak Roku just tanked

right the only thing that's remember

there are five Market stock market

events all right when it comes to

strength and weakness there's extreme

strength normal average

strength sideways

chop normal average weakness and extreme

weakness those are the five things the

market can do the only one that really

concerned me today was extreme strength

in the cues and I thought that was a

long shot I did I thought it was a long

shot to get extreme strength in the cues

today so I'm willing to take this so it

goes back to

this why are you complicating your

trading so damn

much and what's the purpose like why why

do you need to be a hero all the time

why can't you just take an obvious trade

and just do the obvious

thing right it's like I use a basketball

analogy and maybe it's not a good

analogy but I think it's a great

analogy modern day basketball is all

about three-pointers oh three is more

than two you see these guys wide open on

a fast break and what do they do they

check up and spot check a three the

basket there's no one in front of you

everyone's at the other end of the Court

you just stole the goddamn basketball

instead of dunking the ball for a

guaranteed two you're going to take a

40% chance at a three 100% chance at two

or a 40% chance at three well I'm sorry

but in trading I'm taking the guaranteed

two if you want to take the 40% three go

for it but I'm taking the guaranteed

too that's the way I look at it I'm

playing the percentages I'm playing the

odds I'll take a little less money for a

higher

probability that's it that's

it you're taking the dopamine right

that's it you choose how you want to

trade that's how I choose to

trade maybe your style is different and

that's

okay but these five bullet points are

pretty much trading in a nutshell

obviously we have money management

obviously we have trade management

obviously we have pre-trade entries

bottoming tailes topping tailes volume

Spike support I get it but this is the

basic outline of good trading it's broad

I agree but it's the basic outline of

good trading void on a higher time frame

Market bias relative strength or

weakness why gives you flexibility you

don't have to be perfect with your

Market call if you take a stock that has

perfect correlation to the market 10 out

of 10 correlation the market moves the

stock moves well guess what if you're

wrong about the market you're wrong

about the stock too relative strength

relative weakness gives you flexibility

room for mistakes room for error I can

be a little wrong on my market call but

if the stock has genuine strength or

weakness I'm going to be

okay after finding that stock you watch

and wait for a pattern then you just

take it manage in between don't be an

idiot virtual mic

drop virtual mic drop get your head out

of your ass and do it right stop making

it so complicated okay your ego is only

going to get you into trouble in this

business there's just no place for it no

need for it I don't really have anything

more to say because if I do I'm going to

probably explode I'm just I'm watching

some of the things that people do and I

just it's like you can lead a horse to

water but at some point you got to step

in and drink it you know what I mean and

I'm not kidding about this this isn't

like haha trying to be funny or joking

what I just talked about is the

difference difference between you going

to work every day for someone else or

you working for yourself on your own

terms at your own time whenever wherever

you want it's not a joke so you choose

you want you like your job great no big

deal you don't then you got a problem on

your

hands this is the ultimate level of

freedom and flexibility very few things

in life gives you this level of freedom

and flexibility

and if you want that you're serious

about that then you'll heed those five

bullet points and you'll stop messing

around you'll just get serious about it

and just do what's required of you

consequence system accountability

partner will help you get there sooner

I'm Jared Wesley of live Traders we'll

get back at it again next

[Music]

week

w