full ride scholarship played professionally for a very small period of time and then that went away I got hurt um while I was in Croatia in my mid-20s and um then I struggled with life just trying to figure out what to do I partied I did a bunch of stupid stuff I got um I was hooked on opiates you know that was tough you know that took me all the way to homelessness for a little bit of time um you know rehab and and had to do a lot of work to get back on my feet everything that you think is going to work in small cap ends up working against you and there are very specific reason for that fundamentally supply and demand and the way that these companies get the money that they need to survive all that good stuff there's a lot of um fundamental things that are stacked against Longs I have found certain strategies that also actually take advantage of that I'm just looking for is this Prime to run or not those are the very basic requirements that it didn't recently run really big and they don't have a recent big gap down so what do you mean you mentioned a word Prime to run what are the things you look for that stock that you can see okay there's a potential that this stock is primed to run what I've been doing forever is what was the biggest mover yesterday right what is the most explosive stock what made it and then I go back and say well how what what happened there what was the Catalyst what sector was it uh what price range did it come from right so is it a $3 stock that went to 10 well tomorrow I'm not looking at $10 stocks tomorrow I'm looking at $3 stocks and it sounds it sounds kind of simple it's very very simple you got to be creative you you know you got and and you got to look think outside the box it's not just the patterns you know the patterns are very irrelevant at the end of the day people ask me what's your favorite pattern all the time it's like whatever is worked yesterday if I know how to play it you know and if I don't can I learn how to play that day trading stock seems really complicated because we've been hearing a lot of different technical strategies online especially when they involve the small cap stocks but today we have a very special guest a Trader who actually figured out his path to consistency and made Millions doing one simple thing buying the dips and reversals especially on small cap stocks meets Roland wolf a day trader who mastered the most simple trading style Buy Low and sell High unlike most of our previous guests who are Masters in Short Selling smoke caps Roland realized in the early stages of his career that he could actually develop an edge in going long in Smoke cap trading his secret is to study psychology behind Short Selling strategies and reversing the trading behaviors to succeed in buying small cap stocks he believes that there are many successful short sellers in the day trading industry however he also understands that the market is fundamentally driven by supply and demand he ultimately prefers to be long biased to avoid the risks associated with short selling in this humble Traders podcast today you're going to learn how Roland wolf simplifies his trading process and focus on high risk to reward opportunities his repeatable reversal loan strategies for small cap stocks how to time dead buying and reversal entries and identify the bullish sectors Roland's risk management principles to achieve profitability and how trading has changed his life from being homeless at one point to Achieve Financial Freedom if you are a beginner Trader watching this this episode will help you understand how to keep trading simple and find repeatable patterns on the charts remember to drop a like down below if you're ready to learn from Roland success [Music] today welcome to a podcast Rand I have to say you're probably our first guest who specifically long biased on small cap stocks so I think our audience will really think this interview is refreshing from all the short sellers we've been hearing about um yeah but before we start I just kind of want you to uh want to know what how do you describe your Edge in a market today so as you said long small cap is a touchy subject right there's a lot of pumping going on and there people pretty much think it's a scam right that's kind of like the general consensus for people who don't know about it is that Wolf of Wall Street and it's a scam right kind of penny stocks and that sort of idea single that but almost all the best Traders I know are in the realm of small cap um for for day trading and and finding their Edge it's usually there right they have Edge and probabilities and stuff like that I have found the opposite to also be true and um and I have found that you have to be you have to think outside the box too as well so in other words everything that you think is going to work in small cap ends up working against you and there are very specific reasons for that fundamentally supply and demand and um and the way that these companies get the money that they need to survive all that good stuff there's a lot of um fundamental things that are stacked against Longs right so I I have found certain strategies that also actually take advantage of that of that of the fact that they're doing that right the fact that they have to do regain compliance the fact that they have to um do very sketchy things at the end of the day right and so so if you kind of know what the scam is in other words if there's a way to make money from it for me as a Trader that's my job right if there's an inefficiency or there's some sort of way to also take advantage of that so it's kind of um yeah it's kind of the wild wild west but it's also they are the most volatile stocks every single day small cap you know from a from a percent gner perspective you know almost a decade now I've been watching a scan um that gives me everything that gaps on any volume right very small volume so I've been watching it's always a small cap stock almost always right unless we have a huge move in the overall markets because that's how everything works for a reason um so that's kind of uh it's kind of a weird journey to get there and a lot of it is based off of Short Selling you know and and um Tim Gran's guide back in the day is something where you know I was trading without process and when you're long without process it's a really dangerous place to be it's just um confusing because everything you think is going to work doesn't work and then you say it's a scam and you start blaming everyone but yourself for where you're buying it chasing highs pretty much right yeah which is what we all do when we start there it's just Chase through highs a day I don't know how um how a lot of the other stuff works but I know small cap in the morning when it goes through highs at day when you see it over and over and over going to get slammed and I know it's my friend shorting these things as well I know it I I know what they're doing you know um I happen to um have a lot of friends in the industry and it's helpful to understand all the different players right so I think a lot of new Traders get in the game and someone sold them on some pattern that's going to make them a billionaire you know great yeah and and that's it and that's really it and it's going to feed that instinct and and um and they're going to do it for years a lot of people you know by the time I end up speaking with them and showing them that there are other ways right and and I think a big part of all that to me is that there's so much great information out there right now and there's so much information out more than ever in terms of free learn how to trade stuff right um and everyone's kind of saying the same stuff though in terms of buying breakouts and don't buy it don't buy stocks under vwap don't catch a falling knife like there are kind of there are kind of a lot of sayings out there that I have found have totally worked against what actually works for me in small cap but I find that you can find some really really amazing risk-reward opportunities they're not going to be the highest probability opportunities and I think that's where people struggle you know if you're going to back test what goes on most of the stocks fade in small cap um there's a lot of dumping that goes on dilution you know for people who don't know what that is they're they're dumping shares brand new shares onto the company and and uh it's never a good thing right because that's excess Supply a stock won't go up and then the float gets bigger the amount of shares get bigger and it's harder to go up and the more they pump so really at the end of the day there're a bunch of pump and dumps that we're trading if you're trading sub $10 stocks okay you kind of just touch upon a lot of topics that we definitely want to discover and talk about in detail like for example you mentioned the SEC filing the dilution and great risk word with maybe subpart probability but we all want to touch upon those especially your strategies so before we dive into those details could you just kind of tell audience like big picture wise what your most memorable trade and what kind of what's the framework for that specific strategy on the long side for small caps because people need to know they can make money on the loan side as well no for sure um a lot of the trades that that a lot you know there's not really I'd say one memorable trade but a series of of setups and a series of memorable trades um I don't know I got I can get caught up uh in our space I think like a lot of people especially if you're just if you're coaching or you're trading or anything's public and where I have friends who make so much money that it's like and then I have to understand you know I've got four kids and everyone has their own risk tolerance and so for me I've been trying to kind of push you know I've had $60 $80,000 trades you know so so for example my biggest trade is a up and it's a bio so if let we're going to get into a trade one of my favorite trades for sure okay but does it embody what I would do today no it doesn't Okay um some of the some of the principles but it was a biotech and when I was new I did so much due diligence on biotechs like I really so like people are like do due diligence and I you know I'm like okay I'm trying to be a better Trader like everybody so I'm trying to figure out a process that's going to work for me in terms of okay well if I do figure out what's going on with these biotechs I'm trading maybe I'll have some Edge there maybe I can figure out you know and you start reading it and it's very fluffy obviously and you don't really know what you're reading yeah and but in this case I just fell in love with them they had a lupus drug they were like the only lupus drug and they had phase two and I I did a lot of research in other words right so it was a really a investment trade so a swing trade on a biotech um which was which is funny looking back because that's nothing I would really do today right you don't want to fall in love No in fact they did an offering and they dropped a $4 um going into their phase three results right um so I loaded some of the fours it got to the eights and then they had and then they had so I was up 100% on the position so that was part of the thesis for me is like okay if I dip buy it it should run into these results and if it's positive results then great you know I've been positioned amazing and if it's not then what's it going to do drop 50% or something like that right and I'll still be okay with my four or something average um and I was on my way to a boot camp to go work with a bunch of students and it halted up after hours I was in the airport just trying to sell it from my phone after hours cuz it was in the 20s right right and um and and so that's my biggest trade but that doesn't really you know that was earlier me so I've kind of evolved over the years from a lot of things I used to be way more price action oriented to now when once I understood what I'm really working with um in small cap to the long side it cut out so many of my other strategies that I used to trade um I trade from a very from a place of extreme safety I I'm a dip buyer okay um you know when we're starting to kind of get into the nuances of of how to trade long and small cap for me um it's pretty much the opposite of what any anyone's teaching hey Traders as you may have seen in the last couple of videos I've developed my very own proprietary scanner stocks. I wanted a scanner that's simple to use and web- based so I can take it anywhere when I travel and most importantly I wanted a scanner that's affordable for everyone no other premium scanners out there can check any of these boxes so that's why I decided to bootstrap my very own scanner stocks. I spent the last six months working with developers on stocks it's fast simple you can use it on any devices and I promise it won't break your bank account I'm very excited about the scanner I'm now using stocks every single day for day trading and swing trading you won't find other premium scanner offering this much Market data this fast speed and this easy to use interface for this a affordable pricing stocks IO is truly a scanner made by Traders for Traders now back to the video how did you discover trading in the first place and specifically going Longs you know like you it seems like you never really deviated and went to a short selling rout oh I did a little bit okay I did a little bit so um so going back I got into trading cuz I had a son right in um 20 the first one my first kid the first one the first one in 2014 and and that changed a lot of things for me right cuz now I'm like I got this kid um prior to that I played soccer and that was my dream is just to play soccer never wanted to be behind a computer never wanted to be behind a desk um full ride scholarship played professionally for a very small period of time and and then that went away I got hurt um while I was in Croatia in my mid 20s and um then I struggled with life just trying to figure out what to do you know if you love something all my eggs are in the basket and so it's like what am I going to do now and I partied I did a bunch of stupid stuff I got um I was hooked on opiates you know um if we're going to dive really into like just be and I think it is relevant because this is just before trading for me um kind of laid the backbone for a lot of stuff now and I think me as a Trader and risk tolerance and everything right but um but ended up Hooked on opiates uh you know for my ankle injury and the subsequent um treatment and stuff like that and that was tough you know that took me all the way to homelessness for a little bit of time um you know rehab and and had to do a lot of work to get back on my feet but uh a few years after that I had my son you know which we just talked about and and that focused me you know I was like okay we got to go back to school and then two years after that I had my daughter I had uh my first daughter was on her way and that was the Catalyst to trading for me okay I see the C was hey let's try to make a little bit of side money on top of your 9 to5 cuz that was we were paycheck to paycheck and um so that was the motivation right okay um it was a Lambo for sure um you just want to put food on the table for your kids exactly exactly and and um I joke about the lambo thing because it's fny I can't I joke I and I it is it's hilarious but I joke because we have like I've got four kids now so there's six of us and I have to be able to put six people in a car and there are no six seater Lambos you know so they have the what's it called the Urus six people don't fit in that I have to put my kids on top of it too and no no it's good but um but that was the motivation and I didn't even know there was a whole another realm you know I don't think anyone really does right when you get into trading you're just trying to bank make some make some money like d every everyone I talk to is just generally speaking try to trying to improve their life right so you didn't go into trading thinking that it was going to be a full-time career oh no no I thought it was a side it was going to be a side hustle for sure just to just to supplement something that I liked and um and that made sense to me right yeah uh really what happened was I took um a few hundred bucks and I put it into a Gold stock called bar gold at the time this was 2015 or 2014 after my son was born and it doubled over 8 months right so I'm like wow like that's the stock market I guess I can make money from my money and I didn't touch it that was the first real realization where I'm like cool and then um and then once my daughter was on the way I'm like how do I do this faster how can I make 80% on my money faster you know and that took me onto Google that took me to YouTube obviously um and then I ended up joining Tim Sykes you know that's that's my yeah oh I mean and you know I saw a video of him and and really it was it was uh Tim gratani I saw a video of Tim gratani that and he and it just resonated with me so much um the authenticity of what I saw you know because we all I mean let's face it we all watch this stuff you know and with a certain um bit of skepticism you know when you get into this thing and everyone's claiming so many things so why wouldn't you be skeptical and so many people get sued for so many dumb things so why wouldn't you be skeptical but I remember just seeing uh video of crani talking about his trading and and it resonated so much I'm like that guy's real and um I believe him and I want to learn from them you know what I mean so that's what I did um I like to joke cuz most of the people I work with are either they have a hard time pulling the trigger right okay they're afraid or the opposite they're gunslinging you know and we have to kind of reel them in like just crazy gamblers um for me I didn't even know what a chart was like I got etrade.com I put uh the little bit of money I had in there someone mentioned a ticker and CH and I bought it like on etrade.com I bought I bought some of it and then I sat there click and refresh cuz I didn't know what to do and the price was moving and I was up 30% that's my first trade after and and that was after um 10 minutes right okay so I made 30% 10 minutes and then I did the math in my head I'm like wow right like it was 80% on Barrett gold for a year sitting around approximately and this is like 10 minutes I made so much money right not so much money but so much percent right and then they went on a big Los streak like chasing alerts basically I think everyone has to kind of go through that I'm really guilty of that you know so I was chasing alerts really at the end of the day I joined um with the thought I think a lot of people have when they join any service um where there are alerts which is I can just kind of pad my account while I learn because I really did love trading you know but I didn't understand what it was going to take at all no one tells you off the bat ever you know I mean they do but you're like they they're like it's hard work it's going to take years and you're like yeah yeah but you don't believe it you don't and I'm like what do you mean I can just copy all these trades right here I'm good to go I'll learn maybe it'll take years but meanwhile I'm banking too so that's kind of the mentality right that I think a lot of people start with and then and then you realize how so not true it is and how not replicable strategies are when they're alerted and you're trying to chase and everyone's chasing things around um so really at the end of the day that's what I was doing I was not being a professional um I was on the west coast in Arizona so I would wake up 10 minutes before the market opened at 6:20 a.m. yeah it's the same time here same time here right so it'd be 6:20 a.m. and 10 minutes I'd have one eye open you know just kind of like chasing stuff and um and then I saw a video uh with a guy named Greg alex21 and I think you know Alex 21 he's a phenomenal Trader obviously and he talked about being a professional right be a professional and that resonated a lot I'm like that's like soccer right I can kind of get back to that mind frame what does be a professional mean it means I got to be up earlier be there longer discipline read stuff read stuff yes do the DDS do stuff right like do more than the person to the left and right of me and maybe not tomorrow and maybe not the next day or the next day but over the span of the next month and two months and 6 months I I will get exponentially better better than them at least through the initial learning curve and stuff right generally speaking it's not always that way especially with trading right it's not always linear but the initial stuff in terms of like learning the terminology and basic Candlestick stuff is that's pretty common knowledge right and I think for that that's where people if you can you can speed through that because you can't really Force the other parts of it the experience and stuff but but um so that was really kind of the turning point I started waking up earlier I watched trading tickers you know I invested in my education you know for the first time um I realized I have to figure out what other people are doing that actually works cuz I don't know what the hell I'm doing and it that was a big big turning point and the biggest realization was I need to be a short seller you need to be a short seller yes right I think every long has this Epiphany every long and small cab and trading probably in general like man if I would just like short selling you know once they learn what that is and oh all the best Traders they know are short Sellers and stuff like that yeah and and that's what it was for me I wanted to be basically like Tim grani and short stuff and Ducks was a contemporary at the time you know Steven Ducks he was on your podcast really great episode and um amazing traiter and and someone I've looked up to you know as a Trader kind of contemporary and stuff like that and so you tried Short Selling Y and what made you decide to Reign your focus to strictly just going long instead big loss oh big loss okay yeah yeah big $40,000 loss you got squeezed on a Chinese stock I see and and I'm moving homes and I got kids running around wasn't even supposed to be trading that day right and I like took a small size on the stock um short and I had been that month I was up $60 or $70,000 on the month shorting was very accurate right yeah and uh and then it just kind of like got away from me right it was like went 10 to 5 and then I was like use 10 and then it went to halted up to 15 and gapped up to 20 and I added some and you know the the on a little ride and I had there and you know what it was um so painful to me as it was happening the loss of control and ultimately at the end of the day I cut it um you know and I'm like watching my kids run around and I'm just sitting there like what the hell is going on with my life right I'm like I don't want to do that for now and I you know I really haven't gone back to it since then okay uh just to to be honest that's you know it's a it's a risk thing for me yeah and and I'm not ashamed to say uh you know stuff like that these days you know it's just kind of is what it is it's um scares me yeah I think short selding is I think high probability win rate but also really really high risk it takes one it only takes one to blow you up yeah exactly and and I don't like living like that personally I I know so I have plans to short sale again because I think it's I think it's you know it's an amazing tool with such great probabilities on certain trades and stuff like that and um but it'll just be an account I can lose and be okay with or something like that you know there are there are always ways to mitigate risk in other words and and take advantage of something okay unless there isn't the success actually came from understanding Short Selling so not even short selling right that's something that for me short selling is something that's best for more Capital really at the end of the day it's a little bit um in terms of taking advantage of them you know they're usually hopefully they're extended and you know the stock price is getting higher you got to pay borrows they're like you know a lot of the Brokers at least in um where I'm at they you need to have uh 30k in your account you know there are a lot of you know some hoops to jump through and stuff like that but um but what I saw is that I was able to match my long entries to Tim gratani Short entries yeah so like where I was buying he was shorting and I was losing and he was winning right a lot um just going back and looking through his trades looking through my trades and putting them together and and I was driving with my wife one day and I had an epiphany that that was happening and I look at uh my wife and I go I have been buying Tim grani shorts and she's like what she has no clue she's like okay I'm like it's never happening again I'm not going to do that again right okay in other words I got to where how I how do I sell here too but I can't short but not shorting that means I have to buy it lower so that so that sent me onto this this quest to see how low I can buy these stocks and then I didn't realize at that time also what I was doing was avoiding all the worst dangers in small cap not just from when they get extended and they go too far um and they're going to have really bad things happen to them but also the dilution we're talking about which always is happening at higher prices um So within that realm you know I didn't realize I was just going to be trying to buy these stocks low and sell them high as stupid as it sounds like that that's what it is like buying breakouts to me generally speaking you're buying high right generally and you're chasing it's it's a very psychologically um contentious spot on charts right psychologically for everyone and um probably with the lowest win rate too if you buy gos oh I yeah it's literally my least favorite number one least favorite long strategy or intraday breaks um there are some very few exceptions to me right um for small cap specifically I know a lot of people are like oh what do you mean like no breakouts but but to me it's um specifically in small cap there are reasons right they're dumping shares there if you had if I had 5 million shares to dump on a stock um and I've got it at a dollar cuz they give it to me at a dollar and it's now at $5 and high day is there and it spikes through high day in the morning 550 like you're dumping there cuz that's where the liquidity is if you know if you got a dump shares you have to have liquidity so so there are a lot of things that happen and um and then you see it get stuffed and and it's a it's and then you're like it's a Dam you know what I mean it is they're dumping shares you know and and it's only not a scam cuz they told you they're going to dump them and where you know this this is common public information yeah in all the filings so you essentially discovered de buying around what year is this into a career and how did you start kind of pulling all these different research and building a process for for this particular strategy um trial and error trial and error and then d debunking things that I was either taught or that I were found to be common knowledge one thing at a time it kind of felt like really at the end of the day for myself right um you know if I just literally listen to every saying out there there's no way I could have been successful buying stocks or could be I I don't think personally you everyone's saying the same things and doing the same things and then it doesn't really work um and specifically with small cap like I said with all the danger that lies above um but at the end of the day um I found certain scenarios through tracking trades you know at the end of the day what I realize is that I am it is a very much the long game I think everywhere but specifically in small is a moving Target it's such a moving Target the patterns they come and go the strategies they come and go Catalyst one Catalyst today you know uh biotech with Phase 2 News could send a stock going crazy today and tomorrow do nothing same cataly same stock and you're like how does this even equate to you know rhyme and reason and stuff like that and so for me it really comes down to kind of the life cycle of these small cap stocks right which is they need money they can't get money so they have to basically get like payday loans right it's like a the payday loan of of financing in the business World these are companies right they stocks that we're we're investors when we buy we're investors and um and that's what's kind of crazy to me is that uh basically during that time you know they're going to give shares to an Institutional Investor at half price and screw all the other investors you know so so to me once you realize that's the game that's what got me away from the DD thing like uh that I'm talking about so in other words the biotech with phas news I know that there are people who specialize in that and stuff like that um but for small caps purposes I assume everything's a pump okay and I look at all the long from the lens of a short seller like if I'm short where am I shorting it where would I cover and um and the way we've seen action the price action on the big volume stocks they grind them up to highs and they bring them back to lows and back to highs and stuff like that um trapping shorts trapping Longs and driving crazy amounts of volume so I don't know there's kind of a lot of conspiracy theories I have but they're not when you go to the websites of the people running these offerings in small cap it's billions and billions of dollars going through small cap so what is your process like for this do you just read up on the SEC file Lings and or do you look for like specific things in the file Lings yeah really specific just where they're dumping who where how many shares they have and it's just and I use dilution tracker these days um you know there are tons of sites where you can just kind of keep track but anything I can do to make it quicker you know the reason people don't get into the fundamentals is because it's boring and confusing and a lot of words really confusing a lot of words but there are sites you know like the one I use and they put it into small charts and make it kind of easy for you and stuff like that and okay it's really it's really quite boring and um but at the end of the day you have to know what's going on like you have to know what you're trading and the instrument you're trading and the more I learned the more I realize when we get back to that question that you have for you know Edge it has to it has to lie within that macro and when I'm judging my Edge I look back at my trades and I say well how low did am I buying these things right when I look at these charts it's actually a strategy my six-year-old you know basically devised for me one day uh well he's nine now but okay he was six he walked into my office or he was five and I'm like hey uh so dad if he buys it low and sells it high like that's how I make money cuz he wanted to know what I'm doing and um I'm like where'd you buy it where'd he point you know 5 years old he pointed right to the bottom of the chart like oh right there I'm like yeah totally and um but that's silly son you know you don't buy under vwap and you know and I don't do this and I don't do that and so it was your son who kind of inspired you to to kind of I joke about it at but at the time that he said that cuz I didn't take it seriously at all you know okay yeah I kind of shrugged him off like that's funny but he's right you know at the end of the day that's the game I didn't realize I was playing was to figure out how to buy it down there okay or at least as close to that as I can but but we just also just talked about all the potential dilution right that I know you mentioned that happening up there so is it the reasoning for you to start structuring your strategy to buying low is because there's less chances of dilution down there so so for me it's more so it's more so um my short seller friends again I'm looking for that because there are so many of them that pile into to these that do Pile in and they're and a lot of them get very aggressive and and I know that they're hitting the lower highs and lower highs and lower highs and at some point it's going to hit a bottom not all the time at some point there's going to be and I look at them from the lens of they're going to be all day faders anyways in my head but I also look at them from the lens of they're also often times able to go to vwap back to high a day and pre-market highs yeah the like the reclaim was short squeeze exactly and there's and there and there's a and there's a actual for me it ends up being a much better risk reward opportunity so the so the issue is when I'm buying strength or I'm buying breakouts and I'm chasing risk reward what is that and and you know how do I attain good risk reward and then and then actually execute that right CU people are like oh I have one to three but then you look back at your trades it's like no but your actual risk reward you're cutting at five and one you know at one to one or or Worse right so you're um not getting one to three or one to five in your trade in other words um so that's kind of uh I never it's kind of funny you know if you go back to years ago I didn't believe in price targets and stuff like that and I was really really price action oriented and now I've settled so much into the fact that I need PR price targets I need to know where I'm going to be selling um each trade systematically and and really the goal is to understand that for if you're trying to go long and small cap 80% of the time they're going to be all day faders if you have that that mind frame and then I like to look at it when I'm looking for entries from the lens of I'm short I want it to go down as far as it can and then when's that moment where that seed of Doubt would be planted and usually it'll be at some other level of support you know something very basic nothing nothing too crazy um and then I watch price action so I'm not just watching price action I just wait for it to get to levels that generally pre-market levels um if it's a multi-day runner we can go back to previous days levels and stuff like that and keep it really simple um and then I watch those levels right and then I look to get one to five one to six to vwap right and that'll be like price Target one and then price Target two will be high of day and price Target three will be premarket highs that's kind of how will frame the day trading on these gappers um that way it doesn't matter where it closes at the end of the day I can still make money when they do bounce um and I can get good risk reward opportunities and they're now granted they're not going to be as fast in what everyone wants which is like crazy action but I don't want that you know anymore at least it's to me I'd rather put myself out of the way where my friends are covering my short friends are like covering finally they've made money right and um and then I know it's going to be resorted on the backside then it's like are we going to squeeze or not I don't know you know people ask me how P like you're so patient I'm like not that patient I just sell I just sell into price targets you know what I mean and and that I call it buying patience if and then I do that you know and and and through sizing out that's been a huge tool but um but when all is said and done I'm looking to get really good risk reward opportunities and places where people don't even realize there are trades um but really the flow you know the order flow has shifted from a big picture perspective that's what I'm looking for so I'm not so much a scalper um I guess some people would consider it scalping you know but in my realm um when I'm sitting around 30 45 minutes in a position waiting for the bounce through vwap and selling some and then waiting it through high a day it's more positional to me so you're buying consolidation below vwap usually around you mention pre-market levels premarket lows like support yep oh I see and your stop will be below that yep yeah I'm looking for again predisposed levels whole dollar levels and stuff like that too um but that so that would be kind of bread and butter day trading to the long side right I'm looking for those reversals where bigger picture I can find good risk reward opportunities liquidity um and and the the stock at least for the time being has made its bigger picture turn so I'm not looking for just little bounces and that being said there are markets where it's just little bounces right and um and that's a big portion of the year I know that my friends are making money big portion of the Year pretty easily on the short side on the all day faders right and they're hitting the lower highs and it works right and I know that that 20% of the year is where I push it to the long side and really at the end of the day I think for anyone and when it comes down to the trading aspect of uh the thing that kind of separates a lot of the best traders that I know comes down to sizing it comes down to a lot of the intangible things that that are not the patterns in your strategies right um you know it's uh the experience and then the discretion involved when when the patterns arise to be able to size up and essentially be a really good Gambler you know um it's kind of funny if you look at like Traders for a cause or anytime a bunch of Traders get together and play poker you end up with a bunch of pretty good Traders at the end of those poker tournaments you know everyone else kind of gets like more or less and um so there's something to be said there about understanding risk and and when to press risk and when to not and and that to me is the biggest thing you know there are things I do on a daily basis um within that context of gappers right um but that's not that's not all year there are times I'm pressing it really hard there are times I'm not doing it at all so you're sizing more um those times where it's more I guess Market's hotter for small caps exactly for and for me the the only time I I really get Max conviction where I can push as much size as I as I can can tolerate okay is when we get good macro events you know that are driving a sector for example sector momentum you know that's been one of my bread and butter ideas uh War unfortunately when it happens things happen with stocks right and things happen in the markets and oil moves and things happen and Ai and our job is to take advantage of opportunity and and um so so you know at the end of the day when I know that there's a big driving Factor um like war and cost of oil is going up you know some of my best trades come from those scenarios and and swinging oil stocks and energy stocks that are normally just really terrible you know they're not Investments and yeah and um but when they run they but when they run they can be amazing right could you walk us through kind of what your pre-market routine is like to plan for these lawn trades every day whether there's Hot Market or slow Market what's your process like yeah process is um and that's kind of what I preach is like uh the patterns come and go so much so it really is the process of being able to track the patterns develop a Playbook um of scenarios and strategies that you know and then ultimately like I was saying as you know as a long you can't really fight uh fight the tit and but what's funny is it's the same with my short friends you know what I mean they're not killing it every single day most of them um most of them are still making you know a large portion of their profits from a small portion of their trades at the end of the day where they're pressing really really hard so really that really is becomes the art right if we're all looking at the same charts and and we understand the same strategies and stuff like that um for me pre-market process yeah it's I've been watching the beginnings of of stocks for a very very long time right so people usually get some news or someone tells them about it and they see it and it's something that's running and then you're impulsively obviously drawn to that um I scan for $50,000 volume in the morning and that's it $50,000 volume dollar volume so it's like it's very low okay and that's just to see everything that starts popping up news I want to see early and it just gives me a little bit of time to get through the rest of my process which is which is all designed around looking for danger right looking to see if this small cap stock is in the right part of its life cycle which I call it its life cycle which is um are they going to be pump is this going to be pumping um or just straight dumping because that's what they're doing they're either pumping or dumping or combination right generally speaking every time there's a PR it's being pumped that's how I that's how I Envision it but to find that out you just go to the daily chart right you go to the daily chart you look at the float um you look if they've split recently you do all those sorts of things and then from that point um Gap Downs right so I'm looking at um The Catalyst first off is there a catalyst is they not a catalyst um and it's funny because all of this stuff every part of proc process for me is uh fluid so there are things that there are times where I'm not looking at filings as much cuz it's keeping if if I find for example that I keep looking at filings and I'm missing trades because of it I may back off the filings a little bit like maybe even the really dilutive stocks they're actually running right now you know stuff like that that's also how you know that Market's hot yeah exactly I mean it's just such a it's it's such a changing thing but but in terms of pre-market it's always the same um what are What are the top percent gainers and then I want to see volume the Catalyst um percent gain and then from there daily chart right so big picture first right what's the big and that's how I kind of view everything what's the biggest picture and then we Whittle away at that so daily chart have there been recent Gap Downs right have there been bad news or offerings right and small cap if there's a recent gap down it's an offering and so that's a red flag because I know they're probably going to dump if they're putting out a PR now right post offering so then you avoid those kind of stocks exactly exactly at levels but but you know you have to that and so and we'll kind of get to that so gap down it'll just put plant the red flag that I need to go look at their fundamentals and see what happened during that red day um if it spiked recently on big volume that's a red flag because well it already just recently spiked on big volume they're probably going to be dumping by now so I look at it like that right and uh bag holders right all the bags and all that good St stuff okay so I look at it like that I'm just looking for is this Prime to run or not those are the very basic requirements that it didn't recently run really big and they don't have a recent big gap down so didn't run really big no recent big gap down so what do you mean you mentioned a word Prime to run like what what are the things you look for that a stock that you can see okay there's a potential that this stock is primed to run well lower float obviously you know so if there a small share count yeah they're going to be running it usually um but what's funny is we'll see them we'll see like low floats also trade in small ranges and consolidate and stuff so there's a lot of weird stuff that goes on as well hey Traders please allow me just 30 seconds of your time to tell you about the newest and the fastest scanner stocks. 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I a web-based scanner that can easily take anywhere on the go and it's compatible with all devices stocks iio is truly a scanner made by Traders for Traders now back to the video but low floats uh Catalyst really at the end of the day what I'm doing is what ran yesterday what worked yesterday and this is the game that I've been playing for so long that's kind of hard to teach people but you end up with the Playbook this way um what I've been doing forever is what was the biggest mover yesterday right what is the most explosive stock what made it and then I go back and say well how what what happened there what was the Catalyst what sector was it uh what price range did it come from right so is it a $3 stock that went to 10 well tomorrow I'm not looking at $10 stocks tomorrow I'm looking at $3 stocks and it sounds it sounds kind of simple it's very very simple a lot of the stuff I do to be able to find what may or may not run is I'm trying to figure out where volume is going to go next right because that's kind of how things work with us um when we have a big Runner that breeds another Runner you know cuz people get fomo um shorts finally get squeezed somewhere real big and everyone knows it and start people start piling into the Longs and um all the best short sellers I know take losses in bunches kind of you know it's like they they take a big outlier loss after winning for a long time and then maybe a loss and a loss right so so to me it kind of uh and I've confirmed that with a lot of short Sellers and I'm like that's so interesting because that I'm basically sitting around hitting singles and kind of like I that um the idea I told you about where I'm selling in a vwap selling in a high a day just kind of very basic trading ideas for me you know I don't adjust that until we see a runner so so there are things that adjust in that sense but really the question I'm asking um from a process perspective is what ran what sector did it come from what price range did it come from um and then I'll look at the chart and see what that looked like you know was it dilutive uh was it not you know what were the prices did they get to the dilution um how did how did it react at all the levels I just start playing like Blues Clues basically like really basically breaking down anything I can find to find a pattern okay right and um and that's what I think is kind of interesting about trading and really T people talk about patterns but it's the successful Traders I know it's patterns in their behavior and patterns of thought and patterns of action and what happens after they lose this many times or they you know they have certain you start to understand how you react to certain scenarios and then and then you realize it's not really so much the patterns cuz they're just coming in and out of play right and that to me the the hard part about the long side is there is that it's a blank chart and you have to be creative right at the end of the day there's creativity when when I'm shorting you're waiting for your level hopefully you're being patient and it gets to levels and you short it and it comes down right hopefully or goes up but but in other words the stocks hopefully come to you you know um the place come to you they get extended you're haunting you know you're watching them you have good risk reward hopefully you have all these ideas and and you have time to short it in other words and with the Longs it's not so much that you have a 10 15 candles pre-market and I'm trying to you know assess on what this thing's going to do and all everyone's doing is waiting for it to get through highay to buy it right so it's kind of an interesting Dynamic but that's what are you waiting for in terms of Entry wise um how do you plan for it intraday okay yeah so basically pre-market levels right so when when I get to the gappers I will go to the 1 minute the 5 minute the 15 minute and really find pre-market highs okay okay pre-market Highs are pretty much everything to me there in terms of of a Target I'm looking at it as a Target okay um areas where I know would have excited me when I started right so so areas High a day breaks um you know pushing into highs anything where it's breaking to new highs right I I notate that level as an area that I probably need to be selling into right so that's immediately the lens that I start taking and so so in other words as the chart's developing pre-market it gives me time um for it to hopefully die like I want it to pull you know I want short sellers to make money um and bring it down to some better levels for me to trade it at and those what are those levels well it'll be the next levels of support and resistance on the chart very very basic right okay so I'll do pre-market highs I'll have vwap in mind and then I'll watch um whatever the main levels of support and resistance are pre-market and that's why I hopefully there's some good pre-market or after hours action or a multi-day move it can give me more conviction right okay if it's just kind of spiking right into the open it can be tough just an extended stock gets extended right it can be extended really really fast pre-market so so for me that's all I do I keep it so simple every part of my process I try to keep it like that cuz trading is so difficult in and of itself and I'm just trying to I'm try trying to hold on for dear life to the patterns that are there you know when they're there and that's really what it comes down to when I have conviction and I'm trading best it's cuz I know I have my finger on the pulse when those reversals are happening and what catalyst is working you know maybe it's a sector that's going off and like AI for example you know when AI stocks were going crazy um any anything that put out a AI PR or during uh during 2020 anyone that put out vaccine you know news went Skyrocket and stuff like that so so there's a lot to that but but the trading is really basic I don't like to look at the stock until it gets to those levels you know everything you let them I just I let them everything and that's it and then I sit there and wait and the lower the better right so hopefully it's going to shake out one leg and it's going to shake out another leg and they're going to be resorted and it's going to bounce at vwap and then it's going to go through vwap right all those things and shorts are going to be happy and new shorts are going to step in shorting weakness and and um and at a certain point it stops selling off right at a certain point because stocks don't go straight down generally speaking Yeah that's the point I'm looking for on a daily basis when how that's how I trade gappers you know in terms of day one moves um which is bread and butter day trading to the Longs side basically I'm trying to buy low a day okay which um isn't the highest win rate for me I I lose a lot doing it straight up like it's not um there are some months were that are better than another months just like any strategy but the best part of it is it's just a very low risk it's a low maintenance um type of strategy for me that I that I know for the most part I'm selling in a VAP in high a day you know areas where people don't even realize there's a trade early you know because you pretty much all the poor Longs have capitulated and the good shorts are being paid right so so those are the areas I look for and people talk about trading psychology a lot right always talking about trading pschology and and for me I'm it's like I get it but if you're trading breakouts it's really tough to overcome the psychology of trading a breakout that everyone else has you know that shorts are here and Longs are here and and uh everyone's freaking out both ways right you have the if it starts to go up the shorts start to cover again and and then all the Longs and the noobs they get excited and the breakout bars get excited and then when it goes below the breakout level you know everyone's freaking out again so it's like it's um how how are you you know how is reading a book on psychology you're not going to overcome that necessarily you know I'm not saying there aren't good breakout buyers I know good really good breakout buyers just for me it's not my thing you know what I mean and and I think for and I think that's a big deal every every good Trader that I know found something that is their thing you know and they trade something that fits their personality and and more importantly they find their strategies themselves right it's not so much you know and and they take from here and they take from there that's what I did is as well like I took from grani short game and and and realized okay but I can reverse engineer this if I can sell up there you know I can um where do I buy it and that's what just literally sent me lower and lower and lower then the dilution and stuff like that and when volume started coming in in 2021 2020 we saw volume we've never seen before right I mean you remember back before that it was the much less volume way less Traders and um and the patterns have certainly shifted right away from being very in small cap it used to I think it used to just be a Heyday for the shorts because it would be like first red day they're dead and like you know everyone piled in first red day and it died and and now we've seen like crazy Chinese stocks pumping to Crazy Heights ENT like you know blowing up big entities and and um so it's interesting but but I like to keep it simple on the entries I we're getting away again from entries but but for me um on a daily basis that's what I'm doing okay I'm I'm using pre-market levels of support generally speaking I'm trying to find great risk reward off those ideas because if I'm short I'm covering into those areas so essentially you're trying to buy in areas where a lot of like the Chasers the no newb Lawns they are not buying but you're buying they may even be selling it to me you know like there may be capitulating there so so that to me is the idea it's a very um it's doing the opposite what I us do you ever use a tape do you read a tape oh okay I but but again I don't sit there watching tape okay to me only areas you're looking at that's it and then and and then even within that I I'm watching the tape I'm watching the time and sales for sure but there's not anything specific you know where where it's like um magic to me it's just another part of conviction or maybe not you know um specifically cuz I trade NASDAQ and I trade really liquid NASDAQ most of the time and so these areas we're talking there millions of shares you know a minute at that time in the morning and stuff like that or um throughout the day and when you're watching millions of when it stock does millions of orders with one minute you know and the tape gets hectic it's like you know um so for really so really I'm getting I I could call it a discretionary feel on the you know watching the tape like is it is there a lot of selling going through and it's holding that's kind of what I'm looking for right um but then I'll also keep that pretty basic right um really at the end of the day my goal is on that setup is to have the right perspective from a big picture right because sometimes things aren't squeezing like we talked about big portion of the year I just have to be be know that it's a single and I got to sell into vwap or uh or selling a high a day and keep keep that perspective of just singles they bounce they don't have to go through high a day for me to make money and have actual great risk reward scenarios you know on a daily basis on but and then the best part about those ideas is when the markets do get really fruitful I'm getting one to five to vwap right or 1 to 10 to vwap and then sometimes more to high a day and sometimes more to pre-market highs those are the times where I start pressing the pattern and then I have more size and then so really the magic not the magic but the biggest part of trading the gappers for me is the sizing out how do how do I size out of these things um the buying of patients right and um when do I get aggressive that and and I start playing basic math and so I have a thousand shares you know I'll cut it into fourth uh if we're in a terrible Market I got to sell it all on a vwap who cares right oh I see but the better the market gets I just try to prolong how far I'm taking these so a quarter I'm going to sell in a vwap and a quarter I'm going to sell in a high day and I'm going to try to save a quarter for through pre-market highs you know because I have that kind of perspective that we're in good markets and shorts are being squeezed we're in those outlier moments oh okay if that makes sense to long and take advantage of those losses in bunches for my friends essentially you know so very much what I'm trying to do is stay out of the way you know at the end of the day just let the trade work yeah just stay out of the way and stay within the natural flow of things they're going to bounce they're going to pull and if they're volatile enough there's plenty of meat on that bone when they bounce for me you know and and and I have found I have found that um um you know even just putting that out there for people to understand um how I how I do that can shift their mentality completely immediately to like wow I don't just have to chase through high a day and um and there are other ways to go about it you know and there are other ways to go about it and do you have a similar process for swing trading yeah yeah swing trading is is um swing trading small cap is dangerous right people like to talk about that but they've also been my most fruitful trades right and but they all come from that same vein of like I have to take advantage of the macro in other words if they're going to pump it how can I how can I take advantage of the pump that's it that's all we got to do but the big part for That Swing trading is macro driven for me it has to be you know and and fundamentals too I got to know where they're going they're going to be the so the main is main thing is an offering right that's like the main bad stuff that can happen with small cap is you're in a stock long everyone talks about it everyone's afraid that they're long this is why people don't like overnighting small cap too to the long side and they do an offering and it gaps down 50% right being there done that same it's how and you know what if you're it's un aoid it still happens to me from time to time unfortunately um but it but if you're putting yourself in the right positions for the most part you know it's kind of few and far between okay you can start to avoid it in other words by going through the filings and stuff like that um but then also by making sure that if I am swinging there's like there is war going on and there there is some sort of macro right bitco um Bitcoin back in the day when it went to like 70,000 when it went to 20,000 the first time you know I had Bitcoin stocks Penny Bitcoin stocks that 10x and 20x and 30X and grew as my small account tremendously so the power of sector momentum um for swing trades reverse splits is the is my number one that is where you know that is where I think every single small cap Runner going back that through history maybe was a split recently and then they pumped you know just what we spoke about um when stocks get under Buck for people who don't know I know you know and most if you've been trading any amount of time you'll you'll know this but they do a split because if it's a NASDAQ they have to stay over a dollar right they have to maintain uh compliance so so people see especially right now what's interesting there's over 500 600 stocks nasdaq's under a dollar every day okay so there have been five to six splits Four 3 four five reverse blits every day so within that context um they have to maintain compliance so when stocks get under a dollar NASDAQ says hey you need to get your stock price over a buck or you're gone right you're delisted and that's D sentence for these companies that's it they can't uh take advantage of of their investors anymore but uh I'm I'm just kidding I'm just kidding it's kind of true yeah but but but that's really what comes down they they can't get money you know from they're going to OTC land which is you know a death sentence so so really at the end of the day um they have to get their price over a dollar for 10 days and then nasdaq's like okay good job and they get to do the split where they take 10 shares and turn it into one share and and uh they multiply the stock price by 10 and you know so at 10 cent stocks now at a buck just like that bum okay and um just like that they they are over a dollar okay um but they usually get it to two three four $5 posts split and then they fade post split generally speaking from 5 6 7 to 4 3 2 1 they split they fade towards a bug and this is the only scenario I know in the markets where it might be legal to catch a PR it's like almost feels like insider trading because you you know that it is their goal to make sure they have to hold a buck right so when they start to fade towards a dollar you can you can be pretty sure that they're going to PR it they're going to do some sort of pump right I see and within that context to me is the most powerful swing trade in small caps you know it is where I used to I used to try to play it more so when they pumped because that was you know there's a lot of splits that don't do that don't put the pump out too and that's kind of the issue with the strategy yeah you know it's not just every single split and there's so many right now for for a day or something like that but at the end of the day at the end of the day you know it's just there aren't many scenarios in trading for me and when we're talking Edge this is like a big part of edge is being able to find for me creative macro scenarios where you can actually figure out the MMO of what the Company's trying to do because you can figure out what the Company's trying to do you can figure out a lot of things right when you know what their MO is like are they going to be running it or just dumping it and um or they going to PR it you know and then and then big deal is is if you watch I mean they they're still faders so if you notice you know even how I play gappers It's kind of designed on staying out of the way this is the same sort of thing where I my favorite trades are where I can swing based off of an idea like this and then wake up and not have to trade price action you know what I mean because and don't get me wrong I can trade the P Price action um but but there's something to be said for for not even having to do that sometimes see and and and most of my best trades have been like that where I didn't even look at Price action right it's I put myself in an advantageous position based off of experience and a macro event or a macro knowledge right and then and then I get lucky really at the end of I mean you know more often than not mm you know um I've been in splits where I thought they were going to PR and they did a offering po you know instead I'm like oh um that can you know so nothing there's nothing guaranteed obviously but but it is the best scenario for me in terms of it swing trading um and then and and then getting P like actual pumps you know I mean I I remember when I don't know about you but when I started trading I remember thinking man you know you have to sell the news how do you do like you can't that's not a thing though you know that's like for institutions or something like Insider knowledge right um what does sell the news even mean so how the hell am I supposed to have it right before the news is was kind of always the idea to me now I get biotex and world events or whatever stuff like that but for small cap it's a it's really powerful thing especially when you start to realize and you go back to all the big black swans over time the ones that went from two to 20 to 50 and did the crazy crazy stuff and pretty much every big spike in small cap were recent splits almost all of them okay almost all of them like idea is kind of after the stock splits you find like a support near $1 so that's your risk area I I always look at it like a dollar's floor okay you know just in my head to keep myself safe and because I'll buy it in the twos or in the threes sometimes but in my in my head I'm still like ultimately I have to cut I I'll find um so if it's twos threes I'm looking for basing on the chart and then I'll because I still have to have risk you know so I'm either sizing down and giving it all the way to one but more likely than not I'm finding a bass a basing action and then using that risk so it's like uh it's in control right it's in control and and it's just an idea that um comes in and out of play for me too right so and this is a great example because this is my favorite ever swing like ever ever swing strategy it was my favorite day trading strategy and then it became my favorite swinga I'm like well it's a great day trading strategy like why trade the price action if I if if I know within a a reason within a reasonable doubt you know whatever it is uh relative certainty that it is that they should pump like it's good for them to pump you know what I mean that they're going to do it because they need to keep their price over a buck right if I can have that I don't get too many opportunities in the market like that to have that kind of conviction in a setup you know yeah that brings me to my the next question how often do you take these swing trades specifically the the reverse split ones that's um these days weekly pretty much every couple weeks so I mean and this is a great point because so 2020 um when we had the big influx of Traders and then 2021 markets went back up to alltime highs remember they panicked and then they went alltime highs yeah yeah I don't know if you remember there were no penny stocks then do you remember this like 2021 there were like a dollar to dollar stocks there were no sub dollar stocks yeah that's true yeah yeah it was crazy and I'm like oh no like I you know there's no stocks in our dollar which I trade not just dollar St you no I'm not just sub dollar I trade um pretty much up to 10 is kind of my sweet spot so it is 10 and Below or um but they will only need to split a reverse split if they are going under a dollar totally so I was like well there goes that strategy and sure enough it did go away completely because they didn't know I needed to split for a while I see you know today markets are higher than they were then and we have 500 stocks under a dollar and four splits a day four splits a day four three four splits a day so I think it's not a conspiracy it's is what's happening um they the offerings and the powers that be in small cap are dumping and dumping and dumping these days you'll see stocks go down to 5 cents and three cents you know in my realm so it's a really um scenarios like that I love you know and and then and then in terms of you know for people listening and stuff like that you got to be creative you know you got and and you got to look at think outside the box it's not just the patterns you know the patterns are very irrelevant at the end of the day you know I mean when they people ask me what's your favorite pattern all the time it's like whatever is worked yesterday if I know how to play it you know and if I don't can I learn how to play that is there something um my whole one thing that's guided me in terms of adaptation because that's what you have to do to be long um and you have to be a Traer right you have to adapt yeah but for me specifically I'm always trying to figure out what's coming next and when the momentum's going to die you know when I need to pump the brakes or when I need to slam on you know press the gas pedal and um it's the I have a rule of two essentially where if I see something twice I don't really question it it becomes a pattern right if I see it twice I don't question it and and that's how every setup I've kind of made over time has come right that's how I actually stop myself from going on really big draw Downs now it's like if I lose twice on a setup I just want to see it work once first okay and then I'll go back to that setup you know so in other words if I if I'm swinging a reverse split today and and I get stopped out tomorrow and then again tomorrow and I get stopped out the next day I just want to see one work first okay before I start pressing that strategy hard it doesn't mean I can't trade it but you know it's a it's a way of adaptation and um and I realized really early on the long game is just it's wild because you have Pumpers everywhere your instincts are all telling you to chase you don't even know what chasing is risk rewards foreign to you and all these things that end up being really really important but um but also really simple you know if I don't you know there's nothing I'm doing in terms of data or or anything you know where it's like very very very complicated I see you know I and I think it's kind of funny because you think that's what you're looking for I think everyone kind of thinks you're looking for that answer that and it has to be complicated and then all the best Traders I know end up kind of dumbing down that the knowledge that they obain they have to actually end up filtering out a ton of it to actually then trade that knowledge successfully um in other words they end up keeping finding a a system that's actually simple and repeatable you know and and that's big to me yeah and and for me margin for error it's something um that I didn't care about but early on or think about but it's something that for me it's like I also want my trades to when they don't work to work okay so what do you mean by that okay so when if I'm selling in a vwap High a day and pre-market highs and I think it's going to get to pre-market highs and I sell some in the vwap and get stopped out it still worked you know I still sold some in a vwap um if I sell if I'm able to get some in high a day great if I'm able to get some in a pre-market highs great um if I'm wrong it's a small loss it's fine I've taken some off whatever happens I've mitigated risk at the end of the day if I'm buying like high day breaks or something like that I'm trying to avoid spots where you get big nasty candles and I'm long right those spots where you're long and it's just and you lose control of the trade immediately it can happen short through highs if you're shorting and you're not controlling um but same with what I do it's it's a big deal for me to be able to uh you know to control the trades in that sense so I understand when you go long sub vwap on a lot of these small cap stocks are kind of spiked and then they sold off and then you're longing through those support areas or where the shorts are covering how do you make sure when you go long you're not getting like Ruck pulled or that's yeah Ruck pulled or ended up you know in a in a in a down huge downtrend for a lot of these stocks like what are the three tips you give to a lot of newer traders who trying to learn how to dip buy stocks instead of buying breakouts totally no it's um yeah for me a big part comes to down to kind of what we've spoken about before the whole process behind it buying low first of all right if you're buying breakouts through high as a day that would be number one don't do that okay that's the number one spot where where my short seller friends are when it goes back below High a day and you're long they are piling in you know I have a lot of I have a lot of friends who like well you know there's the stuff through pre-market highs um and you'll get big big candles basically when stocks get extended that's when you get big candles okay and and just just dip buying weakness in and of itself you start to avoid that once you've had one leg down two legs down when I when what I mean by that is the Stock's pulled back um it's Consolidated it's pulled down again it's pulled down again right and we're stair stepping down and now it's higher loow for the first time or now it's double bottom for the first time you know start that is where those are the areas if you start watching there right now that being said I there's also the big metric for that for me in terms of the big great candles is can I buy this stock and walk away and come back tomorrow and be okay right if you ask yourself that question you know once you realize these stocks are going up and down so fast in one or two days where are you buying that like will you come back tomorrow and could you be down 30% tomorrow when you look at the chart right um if that's the case then you have to proceed with caution you know so I'll treat that differently because you may get some big fat red candles up there slippage so when we're talking avoiding red candles that's a the biggest part is where are you entering the stock right um don't chase right don't chase a liquid stocks that would be another one if you're randomly buying a liquid stocks well one seller can give you one of those big red candles okay yeah so there's stuff like that as well um but at the end of the day it's uh it's not chasing you know not chasing through highs making sure if you are you're controlling it I talk about it like I talk about you know kind of the feel the trade a lot which is important to me um when I'm dip buying you know I can still dip buy stocks that are up a lot like they've gone one to five and they've pulled back to four but you know but I know ENT day there's still a lot of downside there right so I so I imagine that like I'm uh on a Highwire between two buildings and I'm walking a tight RPP right and if I fall and I make a mistake I have to be perfect in in this trade in other words I have to execute because I might be holding a bag at the end of the day right field breakouts are the top at the end of the day is is kind of the issue I've always had with that so that's the M the main the main way is where you are entering you know that where I enter stocks on dip buys after they've shaken out two three four legs down some and it's not doesn't always work perfectly like that you know but when they do it's um there's not too much Panic left in other words right all the people who chased in the morning are finally capitulating that's the area everyone knows that area too cuz and I only know it from trading it you know you're you buy it and then if you're holding a bag for some reason that moment where you capitulate is always the moment it turns it's really funny like that but it's also says a lot about the group psychology you know and how the the market psychology there and those are the areas I really am looking for you know and everyone thinks it's dead and then it's hitting their scanner later in the day and I'm taking that's when I'm taking profits and they're getting excited to buy it again does that make sense I see I try to keep it under that lens it doesn't always work like that but that's the best trading for me looks like that and because of that it's not so much of an emotional thing you know it's um I I try my best to to have it be like that these days maybe I'm getting old you just uh you just trate your risk yeah no and that's I think that's what we realize in this game once we get into it is that we're playing that game of mitigating risk yeah and everything I'm doing is for that while also being able to put on the risk at the right time in in a major way and how can I do that if I don't have any confidence in what I'm doing so how can I be long with with a bunch of size if I'm worried about big huge red candles it's pretty tough so that's why I try to find scenarios where I don't really have to worry about big red candles and and that and that means that means I have to be early and I and and not necessarily just early but low you know I got to buy low and sell high it's so stupid do you um still use live stops for your entries yeah I will I will um I will if need be and then again um like I said the areas that I trade and I've always been of the mindset like I want to be stopped anyways and you know if market makers are getting my stops my stops are in the wrong place you know I see there were to um now granted if I'm dip buying in the morning and I'm actively doing my day trades and stuff like that I'll mostly be controlling it but I don't mind um you know if I'm live or I'm multitasking or you know get breakfast I'll throw stops on but I don't trade fully with stops now oh it's Case by case you know there there are time it's there are times where I don't want to put stops out there um like I said if I'm controlling him I still I'm in control of my trade so I I do you know I do understand the concept of you know of that but I've also been of the mindset like I wanted to be stopped so you know and uh so who really cares at the end of the day if they're doing that to me I need to adjust my stops or I need to adjust something else so I don't put too much into that you know unless unless I need to so in other words if I'm trading something that's really extended and I have to be really tactful with my executions and stuff like that um then I care more I guess you could say so do you kind of since reversals there's some that happen early in the morning there's some that happens late in the afternoon do you kind of trade throughout the entire day no I try not to okay I try I try uh you know the first hour of the day I'm looking for certain things and then and then I'm basically teaching you know I do and then I'm like working with students oneon-one that takes up everything until Power Hour you know um I do that till power hour so I start looking hour and a half into the day unless that I'm noticing like twice in a row like I was kind of mentioning a pattern developing of midday squeezes right so if I so in other words what I'm trying to do is be at the markets when it pays me to be at the markets you know the most when it really I'm trying to be efficient with my time as a Trader these days um cut out the BS find the biggest portions of the moves that I can find and then take advantage of those right and uh and then learn other stuff along the way and just try to see what else like I said if there's stuff that's running and and I don't know what it is then I can learn something new you know and that's been a big part of of um the last few years has been the the trading's been really good you know 2022 was really really really humbling we were talking about it um I was on a I was on an eight-month draw down after not having more than a 2mon in a row draw down for like 5 years straight um so it was um it sucked you know and it was and I four kids you know um so that was one of those interesting times that molded a lot of what I teach and a lot of my viewpoints now you know back in the day it was a gung-ho like uh yeah you know to you got to study a 100 hours a day and you should definitely quit your job and like all all that kind of stuff to do this full-time it's the dream and all that you know cuz I I truly felt that way at the time but I hadn't been humbled at all in terms of what can actually happen and then what happens when I I got to look at my wife every day and come home with no money again like from my job you know it's like was um and then I have to teach my students that's that's tough right when you're trying to set a good example and I'm like yep lost again today lost again today lost again today you know so I ended up in a big Funk that that molded so many viewpoints for me for the better you know and in terms of um reaching out to other Traders seeing what works for them being super open-minded and um and then and then trying to be really generous with my time because I found like I found that I reach everyone I reach out to everyone I teach I've been learning from yeah you know we were kind of talking about how cool it is the exchange in our communities um you know people get excited about it and there's Traders are everything right engineers and software people like you don't know who you know we you know we encounter in this space so it's really kind of cool um to see all that come together right now and um but yeah it's an interesting um maybe it's kind of natural I don't know if this happened for you but you kind of moments where you're like I got this like I you know and my way or the highway you know and and I would look at other people's strategies I would look at other people's ideas as like kind of stupid like that probably doesn't work you know what I mean like you have you get full of your own stuff and that taught me so much of the opposite that oh you know what yeah anything I can get again you know cuz cuz I was struggling biggest turnaround outside of the Market's turning from that funk um was hard work again because I wasn't putting in work instead I was uh fishing I was like running away from you know trading and my bad trading and and um and the F and so I was like fishing and kind of doing all these things and and then I realized well you should stop fishing you need to work on your trading buddy you know you need to figure out what's going on you need to reach out to people and and that's what I did and I I actually reached out to my students you know and I started doing this thing called Trader therapy on Fridays it was born for myself right I'm like listen everybody I have been sucking for so long and I don't know what the hell is going on with me you know what I mean um I got it was you know my 100 people I've been trading with in a Discord room for since Discord open you know like my closest trading people people some students and colleagues and all that good stuff right and I'm like I'm really sucking it's been 8 months um I don't know what to do and there was something very um freeing in that for me just in that it's kind of crazy kind of stupid but um that was October 2022 and and within that uh that meeting we came to the conclusion for me to just size all the way back down and just see if I can make any money again right just hit singles just be okay with that because when you start making size in this game and your friends are making millions and you're seeing crazy things go down and you're you get desensitized to money and like what it means and and I had a hard time making more than less than $1,000 a trade if it didn't hit, 1,200 bucks a trade for 15 you know it was underwhelming and it didn't seem worth it like you forget like that's so much money yeah it's so much like if we had that cashier it's a lot of it pays so many people would dream for that like you know they work all week for that I did that I worked all week for that you know you've worked all week for that it's like uh and um and so we'll get desensitized to that yeah so that was a good exercise for me of like okay let's bring it back down it's now I go there all the time what's what size down to me now it's like 100 it's like um something ridiculous because I it's not the money it's the performance it's the Free Yourself to me'll be 100 shares what do I do with 100 shares all right I got to sell 25 of them what's my job right now I got to sell quarter into V that's my plan well how am I going to do it with 100,000 Shar how am going to do this with 10,000 shares if I can't stick to the plan on my 100 shares and sell a quarter here right I need to make sure that when I have 10,000 shares I'm going to sell 25 200 shares yeah and and and so I can I can be less emotional about it and just let the math work over time so that's something that that I was able to make my math work again my risk reward work in other words I I was able to see look oh yeah the losses don't hurt as long as I can keep them nice and and my winter started to work out again and the market started to shift and um and then that December I had one of one of my biggest months ever it didn't it didn't get me all the way green but it did wipe out a big portion of that eight-month draw down so the one saving grades within that draw down was it was just paper cut after paper cut after paper cut as opposed to like big loss um Revenge trading it just I ke went to the same well every day and it didn't work and instead of changing I did the same thing every day right so yeah thing is like the name of the game for trading adaptation and then perspect I think perspective for people that that um we don't know what the markets are going to bring at any given time you know no one knows no one knows and and um another another portion is would definitely be to stay humble like really actually stay humble and and it doesn't mean that I you can't know that you're good at trading or your track record's great or whatever it may be in fact I'm armed with way more tools since that happened you know way more tools people used to ask me how to you know overcome the fear of pulling the trigger cuz this is what happened to me by the end of 2022 I had that my setups were coming back but I couldn't press press buttons and um and that was the case size down Press buttons you know and that's what I did and and by the end of like like I said mid December I was back up to full size and confidence like that so uh would you would you teach your kids how to trade your four kids oh man yeah definitely if they want to my sons already want to they're interested okay but they also just want to both my sons want to play baseball or soccer right now and um my daughters they don't care that much I mean one's only two but she she'll end up in my stream sometimes because she'll just pop up she's super cute I think it's the best like it's one of my favorite parts of being of doing what I do is you know it's kind of uh it's funny looking back you know get because they are the reason I started and and um and and so it reinforces every day you know just keep working hard at it even in the bad times right um my why is really important they're really really important they're everything right and um so so for example 20 there was a period there I'm like can I ever am I going to be profitable again that's that's a tough question when you've been doing something for a long time and you you're eggs are in the basket so um and the answer was well I had to be a professional again and I had to get back to work right uh and so for my kids yeah they're I'm going to teach them no matter what I think it's great to teach them you know you learn a lot about the world and you learn a lot about finance and the it's a great it's a really cool I think it's good to understand our world yeah at least you know and some good lessons about money good lessons about impulse control and discipline discipline for sure you know so yeah I'll let them okay any final messages you want to tell all watching this H yeah there's hope um yeah sometimes they just need a different perspective okay and and I you know especially the people cuz what else can you do for two three four years and just like not necessarily get feel better like your marker is what money in your account your p&l essentially right can you make money that's what we're trying to do and if you're not making money after 2 or 3 years doing the same thing that can be very discouraging I get that for sure but it is a theme it is a theme you know and and and that you can't you can't bypass experience right so just because you you have losing experience does not make it not exp it's still experience in other words right so you've actually done the part that you cannot force which is time right and and so for those people who are really struggling that's what I say like look at the bright side you've put the time in now it's a matter of you know what if you've been doing the same thing over and over again maybe you got to switch something you know I think 3 4 years in 2 years in if something's not working at all well it's not that everything's been in vain but you need to switch it up you need to find a new Mentor you need to find a new pattern you need to get a new computer I don't know right you need to figure something different you can't just go back to the well every day doing the same thing um that's crazy right that doesn't make sense but you know sometimes a little tweak and you're there and I've seen that happen for people where it's just like they're on the verge of quitting and then next thing I know they're they're on a run and they're changing their life you know and and that's what's really cool to see um it's also it can be anyone you know it's so diverse our community and I've now seen men women old young doesn't matter really who um Thrive you know I've got you know certain students right now who are in their 60s and like having amazing trades and just to see them like you know cuz we're pretty young it's a pretty young demographic and trading for the most part obviously and and um that being said you got to do something right if you're struggling you have to do something but often times if you've been in the game for years you may not be as far away as you think that's all I see you know so stick to it um but change you know change make make necessary changes to to push your trading forward I do it you know I'm doing that I try to be open um to learning from anyone I can you know students included like I said bring me itas all the time that improve my trading so I think it's important to to be open um have hope be obviously the discipline and hard work and stuff everyone says but but um don't beat yourself up too right if you're beating yourself up every day you're not going to this isn't for you you know you're not going to be able to do this and be happy because I if I did that I miss trades every day I screw up every day you know I let people see that that I'm super human yeah um not a super human I'm just very human right and um as long as you're wise there like you know and and the and the right reasons and if it's a Lambo it's a Lambo if it's your kids it's your kids who who cares what it is go get it right go get it and if you've been doing this for years figure out why it's not been working change something um I always say things just will hopefully align if you in the game long enough that's everything that I everyone I've seen there's sort of a snowball effect of your experience meets your knowledge meets the strategies that you've learned and been practicing over time meet a certain market and all of those can kind of combined to create a Snowball Effect where you're be able to push size finally and and realize sizing and how that works and all that good stuff and and then exponentially grow right and um you just have to stick around long enough to get to that point and for for some people it's a year for some people it's 5 years for some people it's more you know what can people find you onlineand they can find me on YouTube at Roland wolf just search Roland wolf um and your what's your Twitter handle that is Roland wolf 86 okay and then Instagram is Roland wolf trades and I have a thousand imposters on there oh okay oh my goodness yeah yeah we make sure people follow the right accounts yes exactly thank you so much Oland thanks for having me so after watching this episode do you also agree that day trading small caps can be made simple the key to Roland success is how he only focuses on the simple dip buying strategies and he doesn't get too aggressive if the overall Market is not in the favor on the long side his patience discipline and his priority for risk reward really help him find his own repeatable trading process if you learned something new today from the episode please comment down down below to share your thoughts with other inspiring Traders make sure to like the video down below and remember you can watch and learn from other successful Traders on the playlist over here