[LIVE] Day Trading | Let's Learn About Risk Management...

[LIVE] Day Trading | Let's Learn About Risk Management...

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hey it's clay at claytrader.com this will be a live trade video where i try to capture some of my trades as they play out live market opens up here in about 25 minutes for those of you that are maybe new to these videos when i say live what i mean is that this is not a situation where i've already recorded everything and now i'm coming back and talking about it doing some sort of trade recap nothing like that i'm recording myself seeing the information for the very first time so if you want raw thoughts raw emotions you will get that here if but i also want to honor your time if you're looking for a nicely scripted video nicely edited video you will not find that here but if you just kind of want a nitty gritty dirty look into what it's like to be a day trader how day trading can play out then you're going to get that here currently have an order to go short 500 shares so if you're not from my screen i want to go short 500 shares at 12.85 on ticker symbol r-i-s-e i'd like more than 500 shares but 500 would at least allow me to get my feet wet on the trade so potentially a pre-market trade but again i say potentially because this is live so i don't know if this trade is ever going to get filled i don't know if the price will ever get up that high but if it does and i am interested in potentially trying to build a short position here so that's the current status of things i'll go ahead and pause and like i said if it looks like there's going to be a trade that comes about here on rice then i will get the video rolling all right changed my order to 1315 and got up as high as 1305 but didn't quite hit me so let's go up to 13 25 now there we go getting some good movement when again got up as high as 13 19 did not fill me wow look at that movement let's go to 1355. there we go okay in there at 13.55 for

my initial allotment wow went out that fast for 75 see how fast that all occurred so quick quick scalp but here we go with the movement it's almost like somebody well known on youtube all of a sudden started buying it and all the sheep started to follow them but i don't know if that's true but let's uh get up over 14 now well good nice little quick 75 and i don't know what was that like uh a three or four second trade if that so i'll take 75 bucks in four seconds well let's see if this thing wants to keep on getting bonkers now clay why don't you go long hey you know what i'm asking myself the same thing but the answer is because i didn't have hindsight in my in my favor and at that point i felt as though things were a little overextended anyways but i'm with you why didn't i go long i didn't go long because in trading when you have to look over to this part of the chart and you don't know what's coming next yeah that's hard right what's coming next it's easy when i can look here and say oh yeah okay i could have bought down here well of course you're going to ball down here because your eyeballs knows that it goes up there but what about now right real trading look to the right it's not quite as easy that way but i'm with you why didn't i just go long yeah you're right absolutely but there we go all right well caught a quick trade there 75 market sill uh officially opens in 20 minutes and uh for those of you that are beginners out here a couple things pre-market you can trade before uh the market opens officially at 9 30 a.m eastern time just like you can trade after the market officially closes at 4 pm that's known as you know after hours and then also i shorted meaning prices went down and i made money as crazy as that sounds yes believe it or not you can make money when prices go down that is known as going short shorting a stock and that's what happened here uh so that is how if you're confused how did you make money when the price went down by you know going short so we'll see if the price can get back up over that 14 mark but for now i'll go ahead and pause watching 1320 here for a short actually now wonder if this is a fake move to the upside now it might be a real move and looking like it is a real move so disregard that let's get ourselves up there to 14.45 if it wants to keep on moving but yeah clearly that seems to have been a legitimate move so never mind on that 13 20 mark not just a question of who doesn't want to get up over 14 because i'm not interested in trying to build a position unless this thing can get up over which all right let's see double check make sure i have in the right order so you have 1445 here's where i'd like my first entry point to be which does seem far off but that's the whole idea of the of the building or this particular strategy that i use every now and then so i would be surprised to get filled because i am so far away but you know that's that's a part of the the strategy itself but i'm gonna go ahead and pause for now and i'll keep you updated well the markets are officially open still watching rice but uh a confusing one uh just more so from the level two standpoint watching level twos things just seems kind of all over the place and uh i get confused often but as traders no shame and getting confused the the goal is to admit that you're confused and that way when you're confused you know to kind of just maybe take a step back and see what's actually going on with it so i'm not saying i'm not going to trade anymore i'm just saying i'm a little confused with it right now so let's like i said want to just sit back see how things play out here and let me check in on my trusty friend tesla here 675 looks like an interesting area it's really just a question of do i believe that this gap up is genuine strong or not all right well if this now i can get in at 6.75 i like that as an entry point i am just going to do 50 shares though just because it is very gentle at this point never mind up it goes looking around the market here what else is going on what's going on with roku here such such weak volume though gme if you do hear typing that's just me making alerts in the private community if you're not familiar with the claytrader.com i do offer a private

community so that's just where i'm currently typing alerts gonna keep an eye on tesla maybe this whole big move up in up there was false i'm also gonna get that 675 flush point one minute so yeah 675 still very curious about that we'll see if it can come in a play or not what's going on with li and uh rice yeah not really doing much at all kind of just chopping around well as i say that all of a sudden it's acting like it wants to come back to life again so right on cue so look at that very nice move upwards but see now i got now you have to worry about getting you know stuck in halts and stuff like that oh and tesla sitting right around 6.75 like i said i want to see it get down to actually 6.75 i want to make sure that it can try to clear out through this congestion area here so in at 6.75 we'll see if it wants to make a push down or not again i'm not gonna make a killing on this one if it goes in my favor but the good news is if it goes against me i'm not gonna lose a whole lot either if it does go up over uh 677 though i will need to be out so this thing is either gonna start to bleed to the downside here or i was wrong and it's gonna bounce so that's just what i'm waiting to see right now was i right or was i wrong and right now 675 definitely holding up quite a bit yeah the stubborn level is in all actuality being 674.75 so if that level can be broken then i i like the odds that this thing can get down to 674. so 674.75 seems to be the actual

annoying level so that's definitely the area where okay well there it was it's broken so can it now actually get down to 674. wow this thing is just so choppy and it's nothing new i know this even getting in so i'm just going to get out 28 loss i i need to just stay away from tesla this thing is too choppy as you saw acts like it's going to go then before you know it it's back up so i need to just step away from tesla for a little bit too and yeah probably from some frustration in my voice because tesla used to be i had to figure it out very very nicely but now i just can't quite 1425. that looks like an interesting potential area 1425 yeah let's see what it wants to do here so i don't want to take it on this candle though there we go i like that try to scalp here there we go and at 14 28 see if we can get some more movement oh wow that turned around quick wow well if that was all if that was going to be all the move it gave me then so be it all right so all out there for a loss on that one now i'm down 53 on the day oh and now it goes see i think i was still confused i just didn't want to admit to myself that i was still confused but right now just totally getting chopped up oh tesla whisper in my ear again look at that 274.75 or 6 74 75 well i'm just a confused trader today so on the bright side i'm confused but only down 53 so that's a little reassuring yeah tesla do you want to break down or don't you all right i'm going to go ahead and pause i am going to take it if it comes back down here i really like how it's chopper and you got to think that it know i want some confirmation though because even if i'm wrong it's not going to break the bank but just want to see it come down a little bit more here and i know i'm saying i shouldn't be taking these because they're so choppy and i tried to get in there and i missed it just kind of shows the challenge with these although rice what would be interesting here is a fake break of that area but as of right now that's not looking like it was a fake break at all huh well i will say this i'm glad i got out where i did because had i held had i gotten stubborn i'd be getting absolutely crushed right now so i will say this sure i'm confused but i at least i wasn't confused to the point of you know not just taking the loss and getting out where i did because like i said if not it would not be a pleasant experience right now and even on tesla look at this thing started to break down now that much just going back up the market is just difficult right now that's really all i can say uh if you feel as though the market has been slow and choppy uh you're not alone this is definitely how i'm feeling too on things 6.75 i do actually like that i mean at

least that's a dollar move right there that's just so choppy all right i'm gonna go ahead and pause all right this is a very nice setup here i'm gonna try that 70 okay getting in there at 674.87 i mean can this thing at least come down to 674. let's see now i knew it was going to be choppy going in so i can't sit and be like wow it's so choppy jeez why is it no no that's not a valid card i full well knew it would be choppy getting in but with the setup you know i i can't like i said i just can't play that card so i have my ranges defined and it's just a question of can this thing at least get down to 674 where i will take a small portion off the table for a small little profit but i'll still have the majority of the position but as far as the setup is i just can't think about taking a profit until at least 674 for this to make sense so that's why i say you know it it's just a question of can it actually get down to 674. and 674.50 wow is that level being stubborn now so that seems to be the level that will need to be broken if there is any sort of chance of this coming back down good i think i'll go ahead and make the prediction if 674.50 breaks then i think i'll at least get 674. i don't know if

it'll turn out to still be a winning trade but i think i'll at least be able to pull off some at 674. but it's all about 674.50 well so at this point we'll see if the price can even get down under 674.50 but this is just the choppy nature of a market right you get in a position you just gotta wait am i gonna be right or am i gonna be wrong i like the odds that i will be right hence me taking the trade but no guarantees well this is just what i mean the sideways chop the sideways chop all right there's 674 50 flash on the there we go it's broken let's see if my prediction can play out here no not looking so good broken again and nope i thought it would be i thought it would fly it it may move like 10 cents on the level twos and then just like that spiking back up so the question is do i wanna should i add if it comes back down to 674.50

that's the question now yeah i will add in i will add in another 25 shares at 674.50 if it comes back into play here so just watching waiting does this thing want to come back down okay gotta watch be quick on the trigger if need be again 674.50 is the level that i would like to see to try to get in at open that fast okay watching watching watching watching nope watching that bid still nothing at 674.50

but if you've ever heard like just choppy markets choppy stocks this is what what's okay i gotta talk or i gotta be focused this is what it's okay got some more at 674.50 can we finally get the move down to six there we go excellent good see if we can get down below 670 250. come on keep falling keep falling keep falling still have 25 shares left can we get down to 6.72 i think it might bounce there all right well there we go now back up to being green on the day 163 after waiting waiting waiting uh my best decision in that was to add now in hindsight the voices are saying clay why didn't you add more you but that's why in hindsight you're never gonna be right but um yeah so there's a choppy stock as i mentioned i like the odds i like the the probability that it would go in my favor it definitely took some patience i don't think i paused it all through that so you got to literally sit there and experience what a choppy stock feels like and why it really is important to have faith in a strategy you have confidence in a strategy um and like i said i had no excuse i could it was not valid for me to say oh wow why is this so choppy or i can't believe how choppy this is no i knew it was choppy going in that's why i made that comment earlier on and uh you know you can see the results of that worked out nicely and took myself from being red now granted it's not like i was in a massive hole so i'm not trying to say that it was impressive but that's also the goal right if you have to trade impressively to cover your losses your losses are way too big i'm gonna say that again and i've said this many times but if you find yourself needing to trade like a superhero in order to cover your losses you're you're not doing a good job in the risk management department because your losses are way way too big so just keep that in mind you know that you don't want to find yourself where you have to trade just like a madman and be flawless and perfect in order to get back those losses but i i'll look around a little bit more but this market is just it's rough it's choppy and um i realize it's choppy but um it just makes things a little bit more difficult it takes more time as you saw there we had to sit there you know for uh through several minutes of candles and you know like i said glad i did add to that but let's see what else i can find but yeah now i'm back up to being plus 163 dollars and in all actuality to keep things in full perspective i'll probably talk to myself we're 20 minutes in i'm not sure of any place in the world where you can make 100 well let's call it let's call it 150 with commissions i don't know what that is but i'm not sure many places in the world we can make 150 bucks in 20 minutes while working from home pressing buttons on a computer it's actually pretty crazy but um so let me actually rice see you want to see a confusing stock look at that acting like it's going to be all strong and then just a spl slow steady bleed all the way down i mean that that probably roasted some people i can see why they would be wanting to buy that breakout and then to just get trapped in that especially people were like oh let me buy the dip let me buy the dip let me buy the dip ouch and quick update on tesla look at that i mean what kind of like i mean it is tesla sure but still i i mean i'm glad i took profits out there down there i mean that was uh that was not a coincidence where bounce word did now bouncing in this amount in that amount of time yeah pretty crazy but um yeah i'm glad i got out where i did glad i waited because it obviously worked out but yeah just a little update on tesla all of a sudden down here and all of a sudden all the way back up there no idea if it'll happen but what i want to see step one get up over 680 25. so bounce off it did not break it and then what i would want to see happen relatively quickly is for the price to get back down to 678 to which i would short but step one is it's got to get above 680 25. i want to see breakout players get excited so can it break above 680 25 as of now it just continues to get rejected at that area but we'll see what happens i'll go ahead and pause for now okay it's once again narrowing that area there we go perfect up above it now let's see 678 come back into play that may be a crazy request but let's see if it happens if it does i am interested i will go ahead and pause for now well if it happened so i'd like to have it on video all right i'm gonna go ahead and pause and just a final quick update nope setup never came into play looked like it was a truly strong breakout so because it was a truly strong breakout therefore no setup that i was looking for so never mind i'm gonna go ahead and wrap things up but i want to do a very important lesson here and probably the best trait not probably it was the best trade i made was actually a losing trade and the trade was that one on rice where i went short wanted to see the price go down and then it started to go up and it went up and it went up a whole lot and had i held through that and had that loss gotten even a little bit bigger and very realistically could have gotten three four hundred dollars bigger i mean my day is totally different right now i'm still well in the red now i do understand well clay if you would have held then you would have been okay because it came down and you know what in this situation you're right but if your strategy if your thought process moving forward is i'm just gonna hold until it goes in my favor all it takes is one stock one stock to never go in your favor and your account is gone your account is severely limited you or you just can't trade right the up from the opportunity cost point of view because well your money's tied up while you wait so you're missing out on all these other opportunities hence an opportunity cost so the best thing i could have done today was just take that loss on rice get out of the trade that allowed me to go and trade tesla and as i talked 1325 that's just moving way too fast i'm thinking should i try shortening down here but again and should i just go small i feel like i'm just forcing a trade for the sake of the video i mean it's not a terrible setup but the markets have proven to be very challenging so i better just uh let that go so anyways like i said by just getting out by managing risk by taking the loss admitting you know what clay you're not right that allowed me to still have a green day it allowed me now is it a massive green day no but to be fair and it's not quite an hour in the day but let's just call it an hour to make the math easy even in one hour i'm still walking away with 150 in my pocket i'm not sure of many place in the world where you can make a hundred fifty dollars in one hour working at home pressing buttons online right so i don't say that's a break i just say that to build perspective but think about it today was a frustrating day today was kind of a not kind of it was a very choppy day i had a couple losing trades but all things considered i'm still walking away with 150 bucks in an hour think about that when you're trading if you have one of these days and you're walking away with quote unquote only some sort of amount think about it well how break that down to per you know time i mean if it breaks down to 25 bucks an hour 30 bucks an hour 50 bucks an hour 100 bucks an hour you know what that's not too bad is it i mean what else you're gonna do you're gonna go you can go do something else for an hour that's not gonna make you that much so keep things in perspective and don't let things get you know out of perspective but like i said the key thing that kept things and made things and made all this possible was me just admitting the fact that i was wrong because that would have been very very painful to sit through and even if i did have bad habits i don't know if i could have sat through that whole thing just because that loss would have gotten bigger and bigger and bigger and even though it rolled over this time sure there's going to be situations where it doesn't roll over case in point think about people going long i'll i'll buy the dip there i'm gonna buy the dip there i'm gonna buy the dip there i'll buy the dip there and right now it's dipping even further so think about how those people look i mean and to be fair maybe this thing does ultimately recover back upwards but what if it doesn't what happens if those people adopt the mindset of well just keep holding and holding and holding until it's right until it's right and if this thing keeps on going down well that's a whole lot of pain and their loss is getting bigger and bigger and bigger so the way to survive in the market the way to survive as a trader you got to control risk you got to admit when you're wrong just cut the loss live to fight another day and by living to fight another day i was actually able to still turn myself into having 150 in one hour less than one hour because i haven't traded for basically 150 dollars in 45 minutes which makes this all the more crazy right i mean go tell your friend yeah i made 150 bucks in 45 minutes wait what what are you doing like selling drugs or something how did you make that amount in 45 minutes so i mean keep that in mind build perspective but like i said you got to manage risk that is the importance of managing risk so yeah maybe today was exciting from wow that was a bunch of money but i mean a lot of learning lessons here and you know the biggest one hopefully that you're going to take away from this is manage that risk no no i was gonna say do i like that but it's it's tesla way too choppy i sat through the chop once and i need to move on with my day so thank you for watching and a big request from my part give me your feedback i know we're going up on basically 30 minutes now on this video do you enjoy these longer videos do you enjoy where i i try to factor in a lesson uh if not that's fine like i said just i'm i'm all i'm all heirs i want suggestions and i won't do this anymore that way i can keep these videos uh shorter so if you just want the trading then let me know but if you do enjoy the longer videos like this the videos where i'm you know talking and baking in a lesson so there's not any any sort of actual trading let me know and now i can do more of these if not that's fine too i'll just keep it to the live trading and also on that note if you do enjoy just the live trading videos in general because they truly are live they're not the easiest thing to make i have to think for myself i have to think about what i'm going to say to you i have to think about the alerts i make in the in the chat room i have to make those alerts i have to enter in my own trades so there's a lot going on it's not the easiest thing but it is doable but i just want to make sure that it's worth my time to continue to do it so if you do enjoy the live trade videos and you want me to keep making them two easy things you can do to communicate that to me hit the like button leave a simple comment again i'd like your feedback on what i just asked about but even if you just want to leave a thumbs up emoji saying hey yeah i like these videos they're a smiley face emoji hitting the like button and a simple emoji is all i need to know that okay yeah these videos are difficult but they're worth it and i will keep making them so get out there manage at risk understand the importance of managing risk and hey at the end of the day you can be walking away feeling that you didn't really succeed much but like i said in my case 150 bucks for 45 minutes i'll take it first off thanks so much for watching the entire video real quick before you go i want to invite you to a live webinar web class training workshop online event whatever you want to call it but it will be me live revealing to you what i discovered that has allowed me to transform myself from being an employee to being my own boss including how i had only one losing day out of 73 days in total i'm going to cover three keys that have helped me unlock profitable consistency within the markets the first key is super weird but in a productive type of way the second key is super awesome because it quite literally is wired into our dna as humans making it very easy to use but in a cruel way this becomes a pitfall for many traders i'll explain it all though including how to avoid the pitfall that it creates for some and yeah the third key when you hear it sounds way too good way too good to be true but it's not and i'll show you how it all works then at the end i open it up for a question and answer session that is again totally live even if you can't make the live session please still sign up as it will be recorded and you can go back and watch the replay that i will send you click the image on the screen or click the link down in the description box so you can get the date and time and claim your spot which i should note is limited due to the fact that this truly is a live event if you have any questions let me know if not i'll be seeing you soon

2021-05-09 20:46

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