Starting in today’s competitive world can be challenging, but if you’re willing to put in the hard work and dedication, making money in the stock market is not as difficult as many think. In fact, with these six quick and easy tips, you can start making a killing in no time!
Tip #1 — Hard Stops
You need hard stops in trading because when a black swan comes and you go, “okay, I’m going to use a mental stop.” Dude, so many times, it blows right through the level that you want to quit or stop out. It keeps going, and then you’re frozen, and then it just keeps compounding and compounding. We have hard stops because of these crazy, crazy moves where a stock goes from $2 to $40 in one day. Yes, you can cut yourself off mentally, and we can always do that. We have hard stops because of the anomalies, which is the one that blows through your mental stop and then puts you in a state of emergency.
Tip #2 — Don’t Fight The Trend
So, let’s take a look at CTIC.
What do you notice in this stock? It’s beaten down, and this is not what’s called a hot chick. There’s a lot of overhead. Look at how many people are underwater by the time this opens. This is called “overhead.” these are buyers underwater in their position. Anybody who brought from $2.40 to $3.82 is underwater.
We want to short a resistance point, and the more coupling factors you have, the stronger it is. On outer lines, I’m always putting them near the tops. It had a good chance of failing because it was a whole and half dollar number correlated with a VWAP-push-and-fail. So this was:
- a double resistance
- many long traders underwater
This one is ITRM.
Look at the way it was trading pre-market. There are not a lot of people underwater. I’m not talking about the daily chart; I’m talking specifically about intraday and pre-market. If this is up from, let’s say, $0.66, this does not look like what CTIC looks like.
Tip #3 — Zombie Hour
Draw a line every single day on your charts at 10:30 AM Eastern. After the first hour, this is when you need to wrap up your shorts. This is when we lose an edge as short-bias traders. You will see much better results as a short-bias trader trading the first hour of the day than the next 5.5 hours.
Let’s take a look.
This came back so strong because the volume was meeting the morning levels and expanding upon it. And this was the highest, at least intraday, the stock had ever been. All you had to do was pay attention to the volume. You see that it’s dead, and there’s no demand. Until you start getting little perks, you get some actual fluidity. You get some momentum, and then it moves higher and higher.
Here’s another, NNDM.
The trend is still intact, and it started to “zombie” at 10:30 AM EST.
Yesterday’s price action, you have two prevalent options when this is closing high. You have the option of:
- After-hours run-up
- Close, trade flat, and then you’ll get a gap up tomorrow
Tip #4 — Price Action Is King
Whether you’re a fundamental trader or a price action trader, price action will always tell you if you’re wrong or right. Many fundamental traders blew their entire life savings thinking, “oh my god, it’s the worst company in the world.” that doesn’t matter.
I’m not saying fundamentals don’t matter. Don’t get me wrong. That counts, and that offers an edge. What I’m saying is you can’t play your bias. You can’t say, “look, I know NNDM should be down based on fundamentals, I’m in short, and I should be right.” The market can be irrational way longer than your account can be solvent.
Price action and volume always will trump everything. If you ask our fundamental trader, they will tell you if price action tells you you’re wrong; guess what, you’re wrong.
As a short-biased trader, you have an hour window in the middle of the day.
Tip #5 – Don’t Repeat The Same Mistakes You Have Already Made
The famous last words, “it’ll be different this time.” No, it won’t.
The thing about trading is that it’s a probability game. I had trouble as a short in my first year and a half because I would be right 30 days in a row, and it didn’t matter. On that 31st day, I was stuck short. It goes higher, and I’m stopping out and losing the month of profits.
I can’t tell you how many times I did that, maybe a year straight.
If you can master these five things, you’re going to set yourself up for success:
- Use hard stops
- Don’t fight the trend
- Don’t short after zombie hour
- Respect price action
- Don’t repeat the same mistakes you have already made
Tip #6 — Practice Discipline In Trading And Life
Alex is a master of this, and he’s up over $2,000,000 in profits this year. Every day he gives MIC members his watchlist, including his complete trading plan. At a glance, members find out what’s running and where he is looking to buy and sell or short and cover before the market opens. Get access now
I’ve never seen anything like it—$2 million in a year trading the watchlist precisely as it is written, and he gives it directly to the members of MIC.
Is your mentor teaching you how to buy breakouts? Are the pumping or front running stocks giving you “alerts” and calling it “education”? I hate to say it, but that is a very agenda-purposed form of “teaching”—something you won’t find at MIC. They are after their gain first, and their success is all that matters to them. You are nothing but an interchangeable piece of the machine, and you will never be more than just another face in their long line of “students.” You deserve better!
Alex is the walking epitome of discipline and what you can become if you are disciplined. Join today and start being mentored by a real trader who practices what we teach.
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If anyone has any questions, they can text me today at 213-458-5997.
See you guys,
Tosh