Live Day Trading and Management of Large and Small Cap Stocks and with JTrader
all right good morning traders and welcome to the bookmap live trading webinar today with uh j trader stocks trader we do this every wednesday at 10 a.m how can you see what's happening and uh we are um he comes in he comes in a little bit later um so around 10 15 maybe maybe earlier last week he came in at 10. uh so uh we'll look for him soon in the meantime we'll go over the s p we'll jump right in let me just go through some disclosures here uh and then we'll take a look at that s p and then get dive into the stocks with j trader all right he will be trading live in here but it is in demo mode i'll put jay trader's contact information in here if you want to reach out to him he offers education and mentorship and let's go through the disclosures general disclosure and this is important all bookmap limited materials information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations live trading is in simulation demo paper trading mode and strictly for educational purposes live trading executed in simulation cannot accurately represent realistic trading performance all right risk disclosure trading futures equities and digital currencies involve substantial risk of loss and is not suitable for all investors an investor could potentially lose all or more than the initial investment risk capital is money that can be lost without jeopardizing one's financial security nor lifestyle only risk capital should be used for trading and only those with sufficient risk capital should consider trading past performance is not necessarily indicative of future results all right let's jump in let's take a look here uh we'll look at the s p i also want to just look at crypto saw something really interesting in there this morning uh wow what's going on in here well what do you think cpi data right at 8 30. look at we knew this was going to be a big event the markets are very skittish right now to any inflation data uh and you can see the dramatic move down uh into through uh four thousand uh liquidity here all the way down to uh let's see it's about 39.50 or so and then look at the bounce back up okay 4000 was an area where it it did uh test traded into that high liquidity started to pull back we found more buyers in here and look at this nice flip of the order book here basically you can kind of see it here more sellers on the offer here looks like they transact but the buyers come in and throw a lot of orders underneath here finding more buyers we trade up to high liquidity here at 40 25 or so okay so that's the dynamic that's going on right now and we have come all the way back up have not gotten above though where it dropped from here at 8 30. so that's kind of curious and interesting here see if we can get back up into this area here before the the news event uh and uh hunt some some stops in there because a lot of people are going to be short okay so we're going to be looking for that as a potential scenario in here and it's already in play here basically you can see the buyers coming in above 4 000 and then they are supporting it here underneath here now they pulled here you can see there's some here though just above coming into the market right now all right so let's uh let's let me jump over to crypto i want to show you this this was really interesting i thought this is a binance futures i thought it showed it pretty well uh binance features you know it's a little different uh than your spot uh crypto exchanges uh it's leveraged uh and you'll see uh look at this uh you know before the 8 30 event here these queuing algos staying in the queue kind of following hovering price from a distance uh and then look what happened here at 8 30. they're out
right they don't want to be in the market any longer there's risk they don't know what the numbers are going to be where did it trade right down to high liquidity here at 30 000 continued on high liquidity comes into the market down here we don't even get to it though all right this is around 28 800 or so and we can see a beautiful bounce here now curiously enough this already has tested back to where it dropped from here before the news right and it looks like it's going to go for it again here so we have some crypto traders interested in here and they pulled a lot of liquidity here at just around 32 000 a little bit above it and let's just zoom in here and see yeah you can see where they pulled it here uh and i'm looking for these traders to trade right back up to it okay so here here are some buyers already they're above this little range here now what we need to see is more buyers coming in here let's uh get a little more realistic here about this uh and look at a range and start to figure out like you know within the range what's that buying and selling look like here okay so we have kind of a upward trending slope here and we're looking to see if we get more buyers up here so we'd look for like pullbacks into some of these areas here it's pulling back to this area here 34 or 31 400 okay that is an area of importance here's why okay this swing and acceptance above it uh and let's see if we get more buyers come in here if we get some sellers below it i'd look for them to test down to our trend line here we have a beautiful kind of you know high volume node in here or you know bottom of the range in here so somewhere around 30 1 200 you know 31.50 or something like that 31 150. so uh that's where we'd be looking for these buyers to come in and so i don't see anything right now a little bit of selling coming in right now below our little line that we just put in at 400 and so let's see if they might might bring it back down to about this 200 level 1 150 to 200 looks like they're going to looks like they're kind of going for it we see these guys lining up already at 200 here as you can see okay so we're just about there at two hundred right now let's see if we get some buyers coming in here or sellers okay i mean if we're looking for sellers then we're looking for the bottom of this range here around this um 31 50 150 or so a little bit a little bit below it there they go okay so now they've tested it okay going through it all right so now we're looking for another scenario here and it is above this line here around our 140 150 level do we get buyers above it is this a false breakdown and then we're looking for a short squeeze or is are these sellers for real like we're gonna just see the uh continuation in here to the downside okay so we're hovering out our line here no insight at the moment here kind of tense here waiting for some sort of insight here okay let's see what that happened see the reaction to that liquidity at 100 right there sold off looking for more sellers then to see if they can try to reach back down to 900 or 800 here it looks like the reaction to this liquidity this more supply here was sellers okay so that scenario once we got down here and got a little more clarity we're looking forward to sell off okay it was this liquidity and reaction to it that helped us make that that clarity or give that clarity and make that decision so here we are down at this area here there was liquidity in here before around this 800 and we should see a little bit of a bounce in here good morning bruce good morning joseph how are you great uh great morning good morning everybody good morning book map traders all right so joseph if you can share your screen in here all right in the advanced webinar area okay let me know bruce if you can see my monitor with bookmap yes and let me pop that out and put that here all right so everyone should be able to see jtrader's desktop yeah there we go all right looks like you're good to go perfect thank you guys so uh before making a recap of the market i want to go over here uh a stock that is up trending right now we're talking about the stock with 60 million six million volume traded uh it's also a small cap because this is a uh microflora company we have about 3.44 million of floats so that's extremely low we have a very low also institutional ownership we're talking about a three percent and market cap is only 56 million uh in this case i'm uh observing over here the the price section that we can see on bookmap and you can see that the majority of the the traders over here were simply buying right so we had like a six dollar reclaim and i came extending to 675 so after daily breakout now i'm looking if we're gonna have a fake out so i'll close below that daily level uh the day level is a 6.50 so i'm looking exactly this price over here 648 650. let's see if we're going to close below you can see on the daily this is a stock that simply passed from around 60 bucks i'm talking 60 buck traders in the last month to three bucks all right now it's gapping in the last few days because a lot of traders what happened they're gonna think this is a discount so they're gonna try over here to buy and and hold because they think wow four was 16 now it's three dollars or five bucks and a half this morning so this is discount and let's buy something over here now i'm not sure over here because i don't have bars unfortunately this morning on this one but i i wanted to go over the the price section that we had i'm gonna okay i'm gonna use this uh this chart actually this over here the one minute all right so we can see traders the the volume over here is not that high so for a six dollar stock we're trading average of 250k per minute that's a small amount of volume so in a stock like this what i'm waiting for i'm waiting for a level and on that level i want to see a stuff it could be the reclaim of the previous eye or it can be a lower high stuff right so i'm looking for that and ideally i'm looking for the fader i'm looking at the 650 as i said before because it's this daily resistance so it's an important aspect in my trading looking for those daily levels let's look together at what other possible resistances we may have so one would be over here the ten dollar area one over here at the 712 and then this one over here at the 650. so let's put a a four-hour chart i think we can see definitely even better this is the price action right now so that's the support we're seeing here from the gap that's the sorry the resistance now we see another resist 712 and another one over here that it's just testing it right now this 650.
yeah the the ask is a little bit like stack but not that huge amount of size but we still have like between 665 and 680 uh some good amount of sellers we fill the support 630 we have a micro consolidation i think we're gonna see some good sellers over here on the tape so what i'm adding over here is times and sales we're gonna filter minimum size just put like for today one of the shears all right remember if we fail the 6 30 we're going to have a probably a wash there we are so it's breaking at 6 30. i'm selling something stopped over here they're reclaiming the 6 30 and you can see traders they put back some buyer here now when we have these fake breakdowns remember one thing if you have a fake breakdown like happening right now in an uptrend this is often a good area where long traders right so buyers will stop out shorts will start like to get in a position and if we reclaim it i will see over here some good amount of volume then on a trendline break and a curl i will look too long for the upside right now i don't have that liquidity that we had for example before so i'm simply waiting sideways sidelines they're testing again that's 6 30 breaking down you can see over here they're passing some liquidity boom again absorbed two times over here somebody is absorbing into the 620. so i said this morning we're going to look together at the manipulation how to read the volume how to read or the flow to understand how to trade stocks small caps and big caps and over here this is a perfect scenario for stock that is up trending micro float flow rotation that is basically showing traders over here i use amount of volume but i also use amount of manipulation so fake breakdown boom push it upside now 650 so we have the trendline break over here i want to see increase of momentum over here right so we have a first wave a second wave a third wave over here possibly formation of fourth one we need to see over here higher high and also volume increasing 655 so what i'm watching is this trend break again i'm not buying traders over here i would need to buy to a support ideally the v web is where i was watching for a buy or the j lines or simply shorting a big stuff as i said before or parabolic this morning i traded mainly tesla or a good short wheel review then tesla morning open short so nice pattern over here making more highs lower highs so we're waiting for this and this i want to see a consolidation over here for longing that dip we're starting to print green 655 now in order to have a break over here of 660 we need a massive volume so we need more buyers to come in there we are 660. so this can push to the highs over here so look at this 675. always careful because at these levels over here if we touch this pre-market our previous high we can have a stuff it's a fast wash yeah some liquid over here stack at 6 670 73 you can put this as our guide careful in case it stops they're still trying to hold it you can see liquidity coming so green careful now we close below if it comes away if we have a break over here of 660 another wash coming not long i'm not i still didn't take a position this morning on bwv the only trade was apple in tesla buyer 670 has been absorbed over here so somebody sold 20 000. so we have some big sellers up here probably the morning buyers over here they found out some good liquidity to dump into support 660 went away more sellers so next level 712. also we can put up trendline over here okay this is our uptrend line this is our break over here that's a stuff until we hold this trend line until the zone over here is green this is still for the upside still front side of the move already traded almost 9 million volume so remember the float was around 3 million so almost 3 times flow rotation this is a stock i traded in the previous days okay what i like traders over here is these sellers that we have 53 also we're here now 55 66 72 and they're trying to break this trend line uh they're refilling over here the 53 more if you break the 48 prepare for the wash this is the level that i'm watching exactly this so they're buying over here just on the trend line right that is the level that i'm watching no more support below 650 652 i was watching for uh also a volume divergence pattern but we don't have it over here i'm going to try and look at uh five-minute chart all right so we can have a first volume divergence over here this bar so you can see two higher highs right uh from the bar 1010 and the bar at 10 20.
so higher highs lower highs in the volume so when i have this pad i'm looking for a breakdown and then a secondary pop and then taking the short in this area so this is what i'm looking for volume divergence right over here so price is increasing so we have like a runner or a grinder and the volume is decreasing so means that we're going to become exhausted on that move now doesn't mean it's going to reverse all the way down but we have good chances for a big pullback so first trendline break go back to the one minute chart then i like to keep you know more than one chart together so i analyze what happens in the one in the five minutes you can see over here sellers right uh you don't need to put your trend lines it's just easier and uh personally what i prefer to do i like to put my transactions a trend in line sorry in bookmap look over here fantastic break right just very easy stuff very easy stuff then i will show you how we took the same thing on on tesla now when you see this remember we have a manipulation which is at three times the flow rotation uh we had both sides manipulated and for a lot of you that you are not familiar with manipulation what is basically so imagine that your plan is to is to trap traders you are a market maker yourself so what are you going to do if you want to trap long traders you know you're going to create an environment where you will make visible a breakout to everybody and you will make it believe that it's so simple to trade it so everybody over here is buying right breakout traders they're looking for this to push and it doesn't mean that eventually the stock doesn't go up because you can see eventually it goes the stock doesn't go up when we have a breakout the stock goes up when we have for example a dip that's the time that you want to enter this or over here like we said and we analyzed before two fake breakdowns and then over here we had what another breakdown at the same time we had also fake breakout so both sides we have manipulation here here here twice here and here now if you look at these patterns on many of the small cap trades uh small cap stock that we take we see the same kind of ventilation right so what i suggest is to screen share it to save it and to study it reclaim again the 550. uh too bad on this stock we don't have shorts at least personally i don't have uh bars so if you are curious to know each of these dips over here where basically we stall right uh you can simply put uh 20 ema on the on the one minute chart right you will see that so if yes will continue to move in this way we're gonna pull up soon tesla let's just give it like still 10 15 minutes now the best shorts or best longs that i take are based on two main factors one we need the chart pattern chart pattern it could be from a chart pattern let's say like a double bottom or a double top plus an important level this level could be a daily support or a daily resistance or a pivot right or in today important level and then i also need to see that liquidity um an example we can put up this an example just to explain one second uh you should be able to to view now my screen so when i'm looking for this is tesla right is my i would say the stock that i traded the most in 2021 2022 before what has been apple and netflix so when i see this right so when i see a first main first of all this is an absorption and then they start dumping over here the second time that the scenario will represent you can see that we don't reject immediately but we have a fake out this is my stuff so a fast push fake out right away rejection so that's the reason why i was saying before if you are a market maker you will look the ideal price where to trap traders so you're not gonna do it over here you're gonna do it at a certain limit all right so this is an extreme it's an extreme into the high of the day i don't remember now if this was also daily resistance uh and then right away we had the dump so i can just see over here even if we don't have the you know the dots in a big way that the first part of our chart over here for our move i would say that we have the majority of buyers look those blue right so we have the majority of bidders buyers so the majority of the met and then at a certain point our start seeing over here the majority of sellers especially sellers that on the breakdown they are dumping so in about over here five minutes because this happens in in five minutes this shift from over here to here right five ten minutes uh we have really the shift between a demand and supply once you know this your trading will improve so much you can recognize this good you'll make money let's go back to our setup over here on a bwb so now it's 10 37 almost 10 38 what i do i run my scanners during the day so uh doesn't matter which scanner whatever you want i still looking for movers i start looking for news i start looking in this case for stocks there are a gap in extending above 15 so i will go over here to my filters and i will change this to 15 i use 20 for the pre-market and where did it go all right so i'm gonna just put over here this so in the meantime that we're trading also i'm gonna put a volume over here i wanna see at least 300k right i want to see a little bit of liquidity so we have afi it's a 29 cent not really looking at that bwv is the one we're watching track um it's not that volatile we have just about 700k so we'll check this is nice stock so let's check one second uh track all right nothing this just looks like a buy out so i want to double check the news track down here so private to the here 981 surely okay so it won't really move definitely agreement to be acquired so acquisition let's leave it why bwb is up always read your news so blue water vast scenes oscar health top healthcare gainers innovo so let's see single seeking alpha what they're saying yeah no really news but i believe that is the point that we lost so much previously and now we're finding like on the daily uh some some debt buyers right let's go back to bwp and i mean this is really exciting because it's been holding over here this area all morning you can see this up trend line right now we can even put a second trend line this one is breaking out volume is increasing you can see over here breakout let's look at this for this sprite over here 683 mah bear yeah this way and now just let a glance what i'm starting to look over here or we're going to have this zone where i want to buy or this what i want to buy but at the same time i start looking for a possible re-wave pattern right so this is a pattern that i like to trade but that i won't be trading until i don't have a trendline break and a rejection over here i don't want to enter on the front side of the move unless i have this main stuff or a parabolic moving to the daily resistor right now 750. you can see over here it's time we get really to those top levels just look over here traders right each time we get to that top level 675 680 look the dump that we have uh why i believe that more than short sellers we have some holder over here maybe some big trader or some big i would say hand like i like to call it that is waiting it's time for those pushes to dump partial of his uh office position maybe there's even one more than one player because you know the volume is pretty big almost 11 million and it's not even 11 o'clock so i believe that each time we see over here some kind of good liquidity so somebody's buying at the same time we have the the seller and i wouldn't be surprised so let's try to be a little bit more attentive if we have also him or them depends if it's more than one spoofing a little bit so trying to over here hold the price up not to make it go down maybe even like collecting a little bit more in this fake breakdowns and then for pushing it back up so these are the things that in a second moment when you start like reading very good or the flow when you start seeing like who's in control supply demand the patterns you have to look for so not only are the flow but also or the flow together with the manipulation in order to understand how the price action moves and how the big hands will try to trap you okay still holding over here making still higher lows but lower highs so when i see that instantly i know that we have a contraction right so this leads to or a big push or a big dump again support over here around six forty six fifty start watching this main j lines over here are 6 20. they just don't want to make it like fail over here they just don't want to make it fail so support 640. careful traders breakdown coming possible wash again to the 630 v-lab over here uh look at the times and sales i start seeing a little bit more sellers 44.
okay that's 6 40. we have this important support 646-42 as i still not fading bounce again 655 green again they simply don't want to make it die so netflix is pretty sidelines pathways pretty sidelines and vdi sidelines so we have to wait i'm waiting traders for on the pickups right now uh once uh bwb is done we're gonna go over possibly tesla and apple just wanna explain you how this morning uh the way that i read bookmark was so clear for a trader for the trade all right so clear so that you know next time you can i don't say trade right away live but do your practice in demo start practicing first experiment see if you're able to do it recognize it and also one suggestion is record your screen record your times and sales bookmap over here you can shift parameters and i invite you if you need help to write me in the m on on discord i will help you uh also put up one or a five minutes hard or three minutes the one you're more comfortable try to record the screen and re-watch it now you don't need to re-watch seven hours and you know price action really doesn't move but look those moments where we have reversal bounces fades big orders big sellers buyers and so on right those are the moments that you have to focus what happened on the tape how was bookmap did i see a big seller it was a sold that we have a clear pattern all of this right and i guarantee you that it will really help you in becoming a better trader again 640 remember we are saying before support for rx 640 possible watch the v web there we are watch the 6 30. now look the sellers over here so we have some decent one there we are 620 there we are six now careful because often what they could do wash fast reclaim the web bin push the upside we're now they're starting to hold over here this is the sweep indicator so you can see instant rip to downside sweep indicator coming up now we are holding below viva but often remember we can have like a reversal fast over here so good play again don't have the bars on this but good play analyzing in this right okay another seller over here just below v web and i'm starting to watch now tesla so as i was saying before tesla is the main stock for me nice over here first breakdown of the v web yesterday i made an analogy on tesla and we were for example looking at where tesla what's the possible target on tesla okay so the market over here in these days is pretty bearish i think that uh if yes we'll continue to fail sorry spy will continue to fail below this 390. the main target based on my strategies it would be a 360. so therefore all the other stocks
that are uh following and now i was saving bitcoin they are following uh the the indexes they will probably unwind so i'm looking at tesla for example 750 and then authority of 700. so these are not really observed targets because i made for example analogy explaining this right the point is uh we have to wait we have to wait and see what ess is doing so uh this is not me but it's just like a way how to execute the trace so you can understand how to to short over here when we have the crack and this is pretty pretty good now let's see new gappers we have nothing for now so c e l h track rgls afi so i'm going to stick to tesla i think it's a little bit still early and i will explain why this is a one minute chart i mean we can even use a five minutes only to see a bigger picture so trend line break over here yeah next next target definitely 774 and then 750. so i'm not sure of it here why because we're still in range for the morning right so i need to see yes like starting to downtrend spy and q and everything and then of course we can take uh a good short also on uh on tesla we'll be looking at vida facebook rabbi apple this morning i was also looking at coin which is a learning miss coinbase remember had uh some very bad news rdbx also breakdown and this morning i was not really looking at rdbx so it was not really like my my first stock to trade uh it's one of those stocks that is really beaten down stock just look over here traders on the daily i mean if it will be interesting we may put up a bookmap but i mean look how it works with the levels right so we had this resistance at just six and this morning with the pop into the six over here and now it's pulling back more than one buck we're talking about small caps so let's go back to tesla these are nice sellers look at this tape i don't see really any buyer and this is when i like to start shorting tesla i would say some heavy players we're going to put up alts over here times and sales let's zoom out a little bit so we are below the trend line stock is fading my plan this morning was to look for a short and uh i just want to make you understand not really to show my my trade but i mean what's actually i can just show you one second right now uh so that that you can understand uh the price action so that is the morning trade pre-market and then over here shorten the gate right for for the fade the point is we had a very good read i had personally a very good read on tesla and the reason why is because i see this every single day i mean i watch tesla every single day uh if you start looking at the same stock if you start looking the same or say patterns trying to recognize right tell this lately uh this last last weeks is doing always the same pattern so what it does over here is uh what i call the pop-in feel right let's see if i can put one of these screens over here i don't want to blind you before i add even a black one i don't know why okay so in order to understand order flow we have to think about this so imagine that this is the uh the previous day close sometimes tesla will be here so gapping up sometime tesla will be over here right so when it opens take a reference for example the v web we can put the view up like this we can put the view up like this sometimes a stock when it opens will be above the v web so what i see is that we can fail pop and then over here i'm looking for a rejection so this is a pop-in fail and of course i have to look if the previous day close will hold a support and bounce back up or fade the second scenario so imagine again we are trading below in this case the the previous day close and uh this is the v web we are opening above again we can push this push often could be to the previous day close area and then we can start shorting over here higher and then we have to wait for the v breakdown because sometimes can reverse and push all to the upside now having said this start looking at tesla and i'm gonna put a five minute so that you can see yesterday closed sorry over here so there you can see yesterday close remember this morning we had data right around the 8 20. that's the reason why i started shorting 802. so yesterday uh we closed into this area
so around 790s 7987 and d7 right and this morning we had to open just into that previous day close all right so we had a push right away to that close and then started to fail and if you look traders over here if you look what happened on on the bookmap this is one of the saddle that i simply love we open above the viewers remember what i just told you it popped where to the previous day close it started to fail over here the view up and then here they are starting to bounce i mean once i see that this bounce cannot continue and reclaim the high of the morning so after the open that's your short and that is how it went down now you can tell me jay this is gonna fail like you know uh 100 points like usual but i can tell it was still a good fader we had even a second one right so it came a second time over here above the v web but it couldn't break the open level it rejected again and what happened after rejection of the heat map view app again uh perfect lower high of the v web that's a beautiful setup so i simply love really to see this setup over and over and over look what unwind over here so that was the juicy one for the morning over here you can start seeing you know more selling pressure and a certain point we get over here exhausted exhausted support we started having like buyers you know less magenta sellers over here again more buyers in control more buyers in control and then you know that eventually went green on the day now what i'm looking is for another fader if yes will continue to unwind tesla will be my first candidate to be here for uh sure that's some some wild action in uh tesla there yeah i mean tesla these days bruce and was simply amazing my friend was uh going up like uh at the open a couple of bucks like on the 26th and the 28th for of april and then dumping them happened like a couple of days ago and it's one of the most volatile stocks right now this is this is great for your directional trades i mean just fantastic take the directional trade get out you know uh yeah and then let them do the deep pullbacks uh and then get in again exactly exactly for me that's one of the most important principle i mean i don't you know that i don't really want to enter the breakdown like for example uh this morning on my uh trading i didn't look to enter over here because i know that over here first of all we have a support i've seen bookmark over here with liquidity uh now uh if i enter in the breakdown where i'm gonna put my stop my actually real stop was over here so that's really not a good risk reward ratio that's the reason for example that i take the shorts over here so the high because my my system tell me to go there and i stay away from this maybe i will take profit down here now i don't short now yet because we have this main support from the morning so my idea is to wait for the crack of 780 starting to see like some pullback and then looking if we can fail the midday afternoon that would be amazing of course ronnie has traders all right so always have a guy yes spy cues and enqueue micro support over here on tesla's 783 i just simply love this micro support this seems such a good distribution pattern over here and each time now they they made a a small consolidation i was looking before the like over here you see traders this is a small consolidation what i like to call him jim slim i was starting a trader in the remember my beer yeah in the 90s i i don't remember his name so pardon because if i don't call his name but i was watching this trade in the 90s early 2000s and he called this uh this pattern the zim slim right now you can tell well it's a pennant or a flag or whatever but anyway we have that uh very very tight narrow uh short consolidation i i just call it gym slime all right breakdown over here of a distribution pattern beautiful you can see over here sellers jumping in i want to see the speed a little bit increasing over here is that it's not increasing increasing in the speed right times and sales has increased because you want to see more like stop loss coming in rdbx in the meantime jaylin's bound simply sick but again i didn't have this morning rdbx in my playlist so i'm not really traded all right speed of tape is increasing look over here so we can have uh if we break this 781 which is my support and also we have 780 now then we can have 7.75 seems like the market started again too sorry found a direction uh my beard yeah check if we have over here on the one minute and also nvidia right now is starting to unwind so of course while i'm over here with you traders my beer is managing uh the trades and we're looking at nvidia facebook and uh tesla i really like this uh this continuous sell-off on tesla right now this support should crack maybe a small bounce but should crack over here so why because we have a steady amount of sellers joining over here steady amount of sellers look at this uh this drop right each small pop is sold off big magentas versus the the blue the blue ones this right now is starting to see a little bit more we say range for the day on uh on tesla but i would like to see eventually 750 in the next day so that could be brutal crazy volatility i mean it was at 12 over 1200 um you know yeah a couple months ago or something yeah bruce it was it was simple like crazy but i mean the worse is this buddy the worst is this just look at this stock and uh it has some crazy dumps during the day now if uh td over here is uh updating all right so look at look at this buddy 380 like uh six months ago eight months ago and we went to 170. uh yesterday was looking even a stock i believe was pitten i i i follow peyton a lot because uh look what he's doing right you know what's your position over here shorting what's your position by inputs so easy things right easy things not really hard right now market is basically giving me all like shorts and this is the level where we are right now okay so we are on that main support then we have the 754 and then we have this 700 over here 697 is 700. a quick question on facebook uh that's what you're looking at just before right uh yeah of course yeah um so uh i'm just wondering like uh how you started to look at the weakness in this stock because what was the earnings report in the earnings was just horrible is that what it was uh yeah and then you know it came up also the news that there is a lot of competition for the murderers you know like disney's doing one then we have apple doing one so even for that you know facebook is like putting ourselves in in in the metaverse right now that's like you know they're like uh uh main goal but there's a lot of competition and you know reading the news over and over they stated that that is one of the main main causes of all this field plus of course the returning the guidance and everything yeah because like you know you might have your intuition on what it's worth uh but fundamentally you you need the data to tell you like and and then there you covered it earnings and also competition yeah i would say bruce that is always you know uh in union between uh technical and fundamental analysis now how much has to be technical analysis which i include also or the flow inside versus the fundamental analysis well for a day trader so in my case day trader i invest long term but right now we're talking about day trading so according to me to i mean at least my experience how i i mentor the successful trade in the past i would say that order flow and technical analysis is like 85 90 percent equation and once i see um even this cross over here of the j lines to the downside on the daily and i then refer to a a shorter time frame right so i start referring to uh for example an hourly for our chart i mean then i start looking really for you know good patterns for for a short yeah yeah i mean it makes good sense like it you know when is the the emperor you know finally not wearing clothes um and uh you know facebook uh uh peloton um some of these other ones like you just kind of question like really like where are they you know are they really worth what they're trading uh exactly i mean just look at the majority of these coins that we're trading right now okay like even the bad news on coinbase today or just look at baba so alibaba how much really like lost in the last year something incredible and we're a trader who is not really only an investor but a trader who can manage short position and also options like buying puts so with a very small amount of capital you can have like excellent returns then as long as you have liquidity you're going to make money yeah yeah makes makes sense i mean it's nice to see some common sense kind of filter back into the bigger picture here yeah thank you for for telling me i have a little bit of common sense buddy well no you're you're spot on all the time uh very very uh uh uh stoic with uh with that so last night bruce i i was in a you know in a webinar podcast on youtube with trendspider they invited me know and they asked me i listened this they asked me jay uh how are news important in your trading and i stated this i stated like you know for me it's what's really more important the technical analysis in northern flow because it's true because it's true i mean i say what i believe in and what i see it is bringing me like good results you know yeah uh progress just look this uh this traders is uh an absorption look over here and uh this is a beautiful over here pattern uh so 780 i said before for me we're gonna have a breakdown and i still believe in that but okay somebody soaked over here so they exhausted the sellers for that moment now two minutes passed from that level we had a bounce over here 783 i still see like some sellers over here on the tape uh they they have 19k 20k on tesla which is not a huge amount of uh of liquidity if we break this 774. so let's watch over here for a possible breakdown and look at these uh these prints over here i mean we have a lot of sellers there's no doubt over here we have a lot of sellers we had even like no buyers on these peaks look how many times this is exhausted so until we are below the 784 over here i'm still like short bias on the stock seems like another distribution pattern for the morning so let's uh let's continue to follow here yeah i'm really curious if they're going to stay in the market there those those buyers on the bid yeah yeah yeah they seem to be legit over here yeah but i mean or they're like shorts from higher prices and they're just like covering over here or they still want to build you know maybe a bigger position they're i would say averaging or like maybe they have like position 600 they're into their position because we get we we say that tesla is one short seller killer you know a lot of funds over here traders they lost a ton of money shorting tesla so some hedge funds losing billions shorting tesla in the years right this doesn't mean that tesla can't be a good short for the next few weeks or the next few months right just you have to be careful because history tesla news comes two seconds can go up like 50 points all right so we're touching the 784 over here so we had over here the previous consolidation when i say consolidation is all this level right here right also at the previous level so we are below the 783 and 50. so i'm still not short i will take this position if i have the confirmation that over here we have a weakness i'm looking also at yes yeah that's a question about how you um look at the es in relationship uh to some of these stocks okay so uh we would need me and bruce over here to talk at least one good hour only for this because it's not that you know i tell you now es uh is the guide or enqueue is the guide or qs is the guide for the market for certain sectors and you know you have this and you will trade this and everything will be fine it's not like that really it's a question that needs i would say more investigation in and more explanation what i can show you for example we can put it up here and i have another monitors i have yes i have vixx i have the thick i have the eqs i have the nq i have the spy everything but you know i don't want to confuse you with too many things so what i suggest is just to keep even a normal chart unless you three futures with a one in five minutes like very very simple something like you know like this will you put all your levels of support and resistances into day or the previous day right days and then you simply look if we have or say a fail below the v web or a bounce above the v web if it's continuing to make lower highs so unwind or higher lows so an uptrend and then you start seeing like all the sector for example tech stocks is it like fading you start looking at md tesla or md i prefer to look at nvidia apple i prefer to look at facebook that is your guide now market is uh unpredictable so if a news comes out for example in nvidia uh or an earning or an upgrade or co stating something that could be i would say um individual relative strength so you will see for example facebook or nvidia with the news pushing in a different opposite direction versus yes okay means that the relative strength in that case is very high but if i tell you traders that 85 of the trades i took on tesla and apple in the last uh what is now may five months there were 80 85 percent always with es as guide and the win rate was very very high so i'm still like with id over here we can fail so we're going to look if we can have this unwind i'm still not in a position and what's the same time the facebook nvidia and that was great uh joseph i mean all those market internals you're looking at uh and um it is a big much bigger discussion and and um yeah one one of your strengths is certainly keeping things simple uh and uh so you know how to react you know what you're looking for you've got numbers behind it you've studied it you know you have an edge uh you make such a such a distinction uh it makes you a professional trader uh and uh i'm i'm wondering though like looking at sorry bruce if i interrupt you are just short over here 8240 uh tesla okay on my accounts actually mama bear shorted them for the reason that we have the trendline break that we were just watching yes making a leg down and then i see you know what i call my wrist level i love him i love him because uh my beard is not in with 5 000 shares so we have a clear risk now i believe the 780 will go and we're gonna have a drop boom there we are we're writing the money 8250 over here as uh entry and now i can put my stop right here sorry bruce but i needed to say this and explain traders no no house to look at this tape reading on tesla more important absolutely so looked at 20 000 i mean it was used right we bounced over here before but this didn't mean that we were bouncing all the way up we bounced into this area of consolidation i was wrong because i was saying 784 but you know it's not a precise level in this case we have a resistance 784 785 so we bounce into this series over here now we are trading that trending down after trendline break this is a support 774 and 50 so where for example mabier i know that she will scale out partial and she's smarter than you know uh i would say myself maybe of course you're smarter but over here what she's looking at she knows that our support is 774 and 50. but she are adjusting this with the fact that 775 we have a a decent amount of support
so we don't want to wait you know like the 775 crack to take a little bit of partial so we're going to stay probably like 50 cents above that and now being that we're short of 782 and 50 our risk is gonna be in the money so 780 so in the worst case scenario we're taking two bucks and a half but of course we wanted this trade maybe to go 20 bucks 30 bucks a day we never know this so it's very important for me that you traders started to understand not only oh it's a heat map it's a trendline break is whatever v wap stuff i'm shorting no that's i would say 30 of the equation everybody can take a good trade but i would say the majority traders cannot manage to have the best result with that trade and that is where you have to grow as a trader and i'm telling this because uh being that i meant from traders i know the main obstacles for traders and if you do this your r won't be sufficient to make a living in trading because you will cut too much fast too fast your wins and then when you have losses you will have like four hour flosses so you have really to improve these scales if you want to be a trader in this case you don't have to get scared because over here you see you know not anymore like sells we still have sellers even if the majority over here are in this case buyers because we have i believe like covers i don't start seeing over here higher lows are lows and a huge amount of buyers that i get scared and know that this will push up above 780. so right now what i'm doing 779 and 50s are trailing and look over here we're almost the main target and it's okay if one time you'll get stopped and the tray won't work it's okay if two times will happen this but eventually if you have a good strategy you will make your profits yeah well well put because you know bruce i saw like you know some some good trades from members or from traders over here even uh in in in the book map community that i mean they took some good entries and then let's say they took 10 points out of tesla when tesla went down 90 points so that day you take 10 points the day after you stopped like four four the day after you stopped out for four so your plus two commission and everything light whatever energy you're gonna go break even or a small red if you think like i don't say 90 but still a big part of this night maybe like 50. of course even if you have all your expensive losses you're gonna still be like plus 40. so that's how you're gonna make the money risk management traders risk management all right so again 779.50 we will trail partial then with the other stop is 781 so always in the money never let uh we say a winning trade turn into a losing trade never and you know traders why you do that the point is a lot of traders get like i would say too happy when they see unrealized profits until you don't close your trades that's not your money and you cannot fight it look over here we have a little sweep at the 780 because it had a big push if we close down below the 780 that would be another possible add to our position so over here we really have a fight and if you've been looking over here at the size you can see really that there's like a 50 50 buyers and 50 50 sellers all right so they're trying to keep it down so now we hear my beer is all out so she took our profit is what not a huge profit over here but still she did a decent trade and if we're going to have another setup we're going to retrade it you don't have to be stuck in your position like you know you're shorty you were for example up six bucks per share and now you see like you're only they took two bucks uh so you're gonna continue like risking more because you cannot you know accept the fact that you have not anymore those six bucks or possibly you'll be looking at p l the p l i only watch it when i close my monitors all right never watch it never do it while you're trading right now is stuffing you see right away fast rejection i start seeing more sellers over here look at times and sales a this thing over here seems like gonna crack i mean it's a beautiful stuff over here what does it mean over here that we had like sellers 782 and 50 is the last chance for fail otherwise we're gonna go back up to the 785 787 790 i'm telling this because i know where we have like the main catalyst up here so let's check this price action small liquidity area is 782 it went seems like they jumped over here on the bit or they spoofed we have a small one over here careful so somebody is refilling over here the 782 because they ate a decent amount of size and you know they're refilling so we have another seller jumping in that's good i mean that's good if you're looking for a more fader over here trendline below 780 and 50 we can have more and wide right now about 782 by buy is gonna push we have hidden cellar traders 782 on tesla he's clear like the sun crystal clear oh there we are so over here we have the breakdown of that 70 support there we are boom so that's why i said before it's important to put your trendline we just put like 10 seconds ago and then i can't right so that is now you want to see a confirmation of a close below 780. otherwise what happens over here that we're going to have another pennant and this could push still to the upside so you see breakdown 780 reclaim the 780 and now popping and understanding this gives you a clearer picture uh of how to trade something like tesla which is so volatile uh two days ago i had a tape reading lesson with uh with a trader and uh i went over the level two the times and sales and the bookma and he asked me honestly jay what uh do you prefer tape or or the flow and well i know how to read the tape pretty pretty good but i told them honestly and that the way that you can see structures on multiple assets at the same time on bookmap is something i would say far beyond what just tape reading can do because tape i could read it pretty good if i have one stock maximum maybe two but i'm a trader that i'm looking six seven eight stocks at the same time and if i don't look in that moment on that precise stock i don't know what happened in after 10-15 minutes with bookmap i just need to look over here and i know what happened and i could dig into and see how much size was traded it's not you know like normal times and sales or every single like you know broker that after what 30 seconds one minute if you don't filter it you don't see any more like the the size that was traded okay so that is what's interesting for me multiple products so multiple assets at the same time and right away at a quick glance i can understand the price section over here in the traders in the meantime another stuff brutal right so tesla doesn't have any kind of intention over here to push there's an app so you cannot fight the trend over here it's red everything's going down candles are red zone is red for now i'm going to stay with the with a short bias nice juicy heat map this level over here 7845 again a breakdown over here so there's a little bit of uh war that's fantastic joseph i i love hearing that you've kind of made the link or relationship between the time and sales skills that you've uh culminated over the years to directly seeing it historically in the chart uh in bookmap yeah yeah because bruce when i look at a stock and let's say i'm going to look at tesla if you take now normal level 2 in tesla you're going to see almost all the prints the same i mean i'm just watching right now between uh okay zero so means like it's below 100 shares to maximum 200 shares i'm not really gonna understand much even if i have you know like the full book that gives me all the depth when i see something like this and i love to keep it like just big i can understand so much because i will have my chart my chart will tell me over here we have a consolidation area of resistance i'm gonna see the heat map okay stuff boom i'm gonna short right away i know how to react with this all right so if i see on the tape and maybe i have to look at three four or five stocks together i'm gonna remember and spot all these things at the same time i must be a computer i cannot process all those things it's true that a person i read it processes 11 million partial of thoughts in a second 11 million partial thoughts and only 40 are i would say conscious all the other thoughts so more than 10 million are unconscious so how the heck i'm gonna look at five six tapes the same time understanding what to do if i'm not a computer that's where the ads over here comes thank you bruce so traders any questions over here um sorry if i was not watching the the chat but i was you know more absorbed here to explain the order flow uh let me see we have razer good morning razer what are you looking for yes break of that level how do you manage your stop on tesla above liquidity all right so again two good questions that would take so much but yes for me right now doesn't give me any signs of bounce on the daily and weekly chart so i'm so sure bias uh how do you manage your stop-loss on tesla above liquidity this is a good question it really depends from the scenario normally i would tell you above liquidity but then with all this market giving so many stuffs right they will often use that liquidity all right for fake house because often liquidity where you will find it you will find liquidity like over here at precise levels maybe this was a daily resistance so you put a stop over here and then you start like you know complaining with yourself while you stop the top if you were let's say uh short so i prefer or to stop it break even let's say i'm short comes back up i started break even or to give a little bit more wiggle room because i've seen this over and over and over all right now experiment uh i would say start it not the same on your synthetic razor then some days that fall skews okay to say just saw a buy order on yes get filled above the offer crazy first time seeing that on bookmap well you will see often you will see often are often could be dark pulls all right so you will see orders that are into the mids you'll see orders that uh for example uh when the broker opens you know like let's say the prices over here broker opens you will see like fields over here and you think how can i get a feel over there i want to show it over here because then eventually went over here you cannot you cannot right we cannot me and you cannot somebody can not us those are back orders from the system uh other question traders i think it's pretty pretty common over here pretty good uh in youtube here um we answered the es question