all right part two so so far I didn't link my tc2000 layout yet I'm gonna do that I'm gonna link it to like every single one of these videos um but for now it's not going to be there so it's not there don't worry it's just not there uh yeah so this is gonna be part two which is entry managing risk stop losses taking profits and I'll go over this risk calculator a little bit so basically you guys know the setup the setup is you know big move up stock goes sideways as it goes sideways the volume is dying out and then it's building these higher lows and it's holding the moving averages so yeah just looks good but on breakout day you're gonna see this you know once this opens you're looking at the five minute chart so I got the five minute chart here on the right we're looking at the first five minute candle here on breakout day now you'll see that this five minute chart doesn't really look that good it gets pretty thin if you were to be gate shedding this uh that wouldn't really work but that doesn't matter because we're not day trading it it has just enough volume typically I like to see a little bit more volume than this uh you can see it's kind of thin this is what a thin stock looks like versus let's say spy you can see another volume is really clean price movement's really clean but this one works it's a smaller cap 563 Mill market cap seven percent ADR so fast mover decent candidate here um the first five minutes so you're gonna see this breakout and this is what you see in the first five minutes right here on the right you'll see that the volume comes in right away so people always say like how do you know it's gonna have to be a big volume day well I can tell right away that the first five minute candle has huge volume relative to the other days so down here if you look at that it's like you know the volume is pretty low pretty low it comes in a little bit in the mornings on most stocks but on the morning of breakout day it's going to be huge like you can see this was looked like a pretty big volume candle right there compared to the rest but then this one just makes it look little so the volume was just huge on the first five minutes and after that so you wait five minutes right next five minute candle comes in so no matter if the first five minute candle closes green or red that's where you're gonna base your entry off so you have to wait for the first five minutes pretty much every single time you could do it on the one minute but your success rate's not going to be as good so I would just say wait for the five minute and what you want to see here is when the first five minute candle Highs are taken out this is when you're buying it so right here this candle comes through takes out the highs you buy it and your stop loss goes at the low of day so on this risk calculator what you'll see down here in the bottom right corner hopefully you can see that um it'll tell me right here stop loss low of day and it'll tell me the value whatever the low of day is it'll say how many shares to buy to risk one percent and then uh the dollar amount of that position so if you just right click on shares to buy one percent risk you get this little menu mine said a thousand dollars um so if I want to risk a thousand two thousand three thousand whatever I can just multiply that so it's like if they're telling me to buy 3 700 shares and I want to risk 2 000 then I'll buy two times thirty seven hundred shares not thirty seven thousand shares is that what I said I don't know anyways yeah so you would just put your risk here if you have a 100K account it's 1 000 if you have a 10K account it's a hundred pretty simple just put one percent of your account but that is the first value press OK and it'll update um and then you change the dollar amount you do the same thing so right here where it says a thousand uh you just change that to your your um one percent of your account and it'll tell you right there and then we have this ATR check so this little Green Dot what you don't want to see so this is like really really close the ADR on this is 7.7 percent you don't want to see it up more than 7.7 percent before you buy it so if it's up like right here if you're buying the top of this candle 8.6 percent chances are you're too late like you should be getting tighter uh tighter stops than that you don't want your stop to be further than the average daily range I mean it doesn't matter all that much not really you're just going to get less size either way you're going to risk one percent the best ones you'll be in like let's say you get in like this like the first five minute candle is only one two percent higher then you get in that'd be perfect that'd be more ideal although this one was you know near 80r I did take it um even if it's above 80r I'll take it sometimes but general rule just try to avoid that try to get in earlier if it's up you know a lot more like you're buying it way up here that's probably not a good idea but yeah so you buy here when the first five minute candle's taken out set your stop boss a little a day if it comes down and takes out your stop it is what it is you got swapped out but then if it goes back up and takes out the highs of the day you re-enter and then just leave it at that if it stops yet again don't try to trade it again it's just two tries that's it basically um so let's see now you know where to buy it oh the formula so if you don't have this risk calculator you need to figure out how many shares that you're buying so the formula for that is going to be how do I make this bigger 64. can you see that okay so the formula for this is going to be risk divided by entry minus stop all right so risk divided by entry minus stop your entry here is five minute high so let's say you're buying it at five dollars then you change this to five and your stop here is 4.62 4.62 and you have a 10 000 account so you're risking a hundred dollars now you go to your phone open up the calculator app hopefully we all have a calculator app on our phone or some sort of calculator nearby so you do five minus 4.62 equals 0.38 so now you do 100 divided by 0.38 and that tells you 263.15 so you're buying 263 shares right so that equals two six three pretty simple right I mean you're not going to want to calculate that while this candle is forming like you're going to be you're going to be kind of in shambles there especially if you have multiple breakouts to take when the Market's good that's why I have this risk calculator just tells me right there I open up my broker boom type that in and I set the stop loss with the um the buy order also so I can just click the check box that's why I like Weeble um Okay so that should make sense for entering and then managing your risk oh all right so if 263 shares what does that equal 263 shares at five dollars is five times two six three so that equals thirteen fifteen so you're putting in if you have a 10K account that's about 13 of your account you should not be swinging more than 30 of your account so if you get a really good entry and like your stop is really close to your entry and it says uh put in like you know over thirty percent of your account that's fine buy over 30 of your account totally fine but before the day ends cut it down to 30. because if this like ended ended up gapping down you'd be losing a lot more than one percent of your account so it's just not safe um yeah but that way you'll have about 10 percent of your account into this position and then as the days go you know day three this goes up like 30 or let's say from entry it goes up like 18 so times 1.18 1500 excuse me like 200 bucks risking 100 bucks basically pretty good right pretty pretty simple um all right now that we got that out of the way what is next stop losses went over that managing risk position sizing entry taking profits okay so for taking profits now this can be a little bit complex this is sometimes discretionary if you see where I have this red line so I had this red line before this ran into that and I did take all of my profits right there so you might be like what the [ __ ] why um great question where's day two let's look at day two you can see it did end up going above that but all right so if you zoom out on the chart and you look back and price was previously Above This level you're gonna have areas like this can you see all this yeah so this gives me two price targets price Target one would be the bottom of this because there's multiple touches here price is clearly struggling here um it kind of came down and touched this almost a little bit bounced back up and then here it just really struggled and you can see it there I wouldn't really recommend you try to find your price targets like that I mean I post pretty much all my trades on Twitter and then the Discord obviously literally everything in there if you want to you can but sometimes it might make you sell a little bit early so I would say if you can identify a price Target easily and you see an area like this you know where price is just really struggling there um and you see that multiple times so this one like price was struggling here quite a few times and then it struggled here again bounced off this like quite perfectly if you see something like that that's a pretty good indication that you know your take profit zone is good and then you'll see price struggle along your take profit zone so if we look here on the five minute you see it came up on day two went right towards it then came back down came up again went right back down went up for it again and this is where I actually took profits I was like [ __ ] it does not want to go when it came back down a little bit I took profits right here and then what does it stay day three day three it came up right to the same level so I was like okay that's solid but then it ended up pushing through there I was like oh wow what a surprise really didn't expect that um but then it came down so if you don't have a price Target like if you can't identify a price Target like that what you do is you wait three to five days in so typically that's the strongest you can see here one two three four five so day five would have been pretty shitty but let's say day three or four you wait until close or you wait a few minutes until closed or before close I mean and you sell a half or a third of your position so it depends on how much it's up if it's up a lot then just sell a third and you'll be good but if it's not up like a bunch like you're not up over like three to one I guess you could say just sell half of it um right before close so let's say day three so half right before close it's about a close Market's about to close and it's at 584. you bought it at like five it's up a decent amount you sell half there your stop loss then goes from Break Even or it goes from goes from um low of breakout day to break even so that way you just took some profits and now there's literally no way you're gonna lose in this position and then you're like okay where do I sell the rest so either it's going to come back and then take out your Breakeven stop so wherever you bought it at five dollars or it's gonna close under the 10 SMA and that's where you take full profits so today it closed under the 10 SMA right here you can see it closed under this purple line which is the 10 SMA on the daily chart that's when you sell the entire position if we go and we take a look at carvana carvana I had my price Target here if we follow that line you can see price struggled here came up tapped there and then we go back even further um I had a little trouble during what is that coven I think so and then even further back here it struggled here again so it was just like a really clear price target for me struggled here bounced along there a bunch of times bounced here A bunch of times came down bounce came down bounce and then you know a couple times there so I was like okay that's a pretty good price Target and it looks like it's already respecting that so it came up had good earnings gapped up to this level kind of went through there throughout the day and then just took a turn came down did this whatever set up again and then went right back to that level so I ended up selling that position that day let's go back to NN so carvana if you were to wait and use the three to five day rule you would have gotten [ __ ] you would have lost on that position and then if you waited until it was closed under the 10 to sell the rest you would have been down below low of day so you already would have got stopped out that way using this price Target system you are able to secure a lot of Trades that maybe shouldn't be secured or you can take profits at a good point it's good for options too for sure but yeah okay let's see what's next oh never risk more than one percent if you're risking more than one percent you are pretty stupid in the beginning you should risk like a quarter percent or half because you're going to lose more um you're probably going to be taking like some shitty setups uh you just you won't have a full understanding of everything so don't try to risk a lot of money because you don't even know what you're doing yet wait until you know what you're doing and then risk one percent if you get really good in really good market conditions you can risk two percent but do not jump ahead and try to risk more than one percent please keep it to like half a percent if you're first starting out quarter percent is preferred but I know some of you guys have a lot smaller accounts so yeah I guess that wraps it up for part two um part three is going to be training breakouts with options so I'll show you guys how I pick my strike prices expiration dates um price targets we'll go over that again and then how I manage my risk with options so now you guys know how to manage your risk with shares you know when to take profits and you know when to sell the whole position next one will be with options because options you don't get as many setups you're going to get more setups where you actually have to trade shares rather than options and also hopefully show you guys when to be trading options for swim to trade shares it's going to be a little challenging because that's something I look at on my broker uh either way though we'll cover expiration dates uh strike prices take profit zones all that good stuff but yeah all right I will see you guys in part three