From 0 to Trader – Day 1

[00:00:01.13] - Speaker 1
All right, welcome everyone. This session is going to be very exciting. We have a special guest with us. Welcome back, Patrick. As always, welcome. And today we're going to introduce you to Nicola. So Nicola, welcome. You're going to be our guest for the next few hours, few days and we're very excited to start this program with you, which is really from zero to trader. But before we start that maybe Nick, if you want to introduce yourself for our community and let us know your experience and obviously your training experience and obviously what you do in life and how you, you are partnering with us today.

[00:00:42.17] - Speaker 2
Yes, thank you, Fabio. Thank you, Patrick, for having me in this live. And I am an entrepreneur, basically. I, I've been entrepreneur from 22 years old. Now I am 41, 42.

[00:01:00.05] - Speaker 3
And.

[00:01:02.27] - Speaker 2
Yes, entrepreneurship for me it was a good life with work, but so stressful. A lot of entrepreneurship risk not only with my money, but with other money. And I have to figure it out in too many businesses. And now at the age of 42, I sold three, two startups that I made in the past to a corporate. And now I'm in a new phase of my life. I'm still an entrepreneurish entrepreneur, but not like a CEO, into a startup where you have to work 24 hours a day, seven days a week, 360. And I think you know what I'm saying, Fabio. And now I want to discover the, the trading system and the trade in general because I, I, I approached the trade in the last 10 years, but only to buying or sell some, some big stocks where I love like Apple. Okay. Or like, I don't know, koima in, in Italy US stocks or Italy stock. And I, I buy, I, I bought and I sold three or four times and, and in the other period I managed softly some etf and this is my, my past, but now I have an amount, a little amount that I want to try to grow.

[00:02:55.07] - Speaker 2
But this is not my, my goal and we can, we can figure it out and we can talk about them in the next few minutes. And so I would like to discover all the mentor queue product and how can they fit in my personal skill and my personal goal. And this is, yeah.

[00:03:21.15] - Speaker 1
And I think, Nick, what's interesting is that you came to us at the beginning because obviously you just had sold your company and you wanted to learn how to manage money because one of the biggest problem that I think you had is that whenever you were investing, some of the investment were inefficient. So you want to actually, I mean like an entrepreneur, you want to manage your money like you manage your business. Right. So you want to make sure that at least you understand what's going on with your investment, understand where the risk is, and understand how you can actually make better decision. And I think at the beginning, when we started chatting a few years ago, you were more like into passive, into active. So obviously you didn't have the time to trade live. But obviously now that you are more free, you obviously develop the interest in trading. And also looking at what Patrick has been doing as well, I think really spark your attention. And obviously trading has a lot of opportunity, a lot of risk. But obviously we're here to help you in the next few days to show you what we have and show you how can the product fit to your trading style.

[00:04:29.01] - Speaker 1
And I don't know, Patrick, if you have any question for Nick.

[00:04:33.08] - Speaker 3
Yeah, so I was making some notice when you were speaking, so I think that is completely normal. You were speaking, you give me some keywords and I like the keywords. And I think we can, we can go directly into some things to figure out about your trading style. What do you really like? So you were speaking about entrepreneur risk. Can you clarify for me what do you mean with entrepreneurial? Because as a trader we have also risk, so we have risk on capital. And I think if as an entrepreneur you make also some investment, you make your investment with time and with money. And in the trading world we'll be doing the same. We invest time and we invest money. So what was your style as entrepreneur where you will say, okay, this is now my taking out, this is now my exit. So what was your money management rules there so that we can maybe look into this, how we can trans transfer where you were successful, you, you were successful as an entrepreneur at the end, as you were saying. So how we can transfer your, your success into trading? So I think this is a really cool story and maybe tell something about your success, about your risk and money rules as an entrepreneur.

[00:05:56.25] - Speaker 2
Okay, I'm glad to talk about this topic because I care about this topic. Entrepreneurship for me is like a religion. Okay. I think I'm born for entrepreneurship. I think about entrepreneurship from age 12 and I would like all my life to do an entrepreneur or to begin an entrepreneurship life. And this is a lot of differences from trade for myself and to manage risk for myself and to manage risk in entrepreneur business. Because there are not only my money in the game, but there are money of my, of my employee. I have totally respect for employee and the life of my employee. And I cannot gamble with Them, okay. And I have equity friends and equity business guy to report my risk management in entrepreneurship. And there are a lot of ingredients in entrepreneurship. I need a vision, okay? I made a new business only with a vision and with a mission. And then it came in the product or in the services and in price and blah blah, blah. And the other stuff, it's more complex and I risk everything in entrepreneurship. I made a lot of debt for became an entrepreneurship entrepreneur. Like I can tell you in total transparency like €400,000.

[00:08:01.23] - Speaker 2
When I was 25 and I have not a family behind me, I was alone, okay. And for, for me it was a super big jump in a black hole, okay. And I, I need, I, I'm. I learned how to came far from the black hole and to figure it out. And, and I think I can manage now with the time, with the age, with the family, with the experience. More risk than €400,000 at the age of 25. I managed risk in the last couple of year about 10, 15 million euro. Okay. In, in. In one of my company. And but what I learned in the past if is yes, I have to set my goal, but goal is not a number, okay? Goal is my admission. And now my goal in trade is I want to learn how it works trade how it works, a lot of strategies, how it works. I don't know the assets, okay? Because I don't have a time frame, a certain time frame that I was to to earn 1 million in a year, okay. Or 1,000 in a week or $1 a day, okay. I don't have this type of goal.

[00:09:41.03] - Speaker 2
I have an amount for to spend, okay? For making more errors in few times because more errors allows me to understand better and in a span period, a less period. It's like when you made the startup, you have to fail fast and for having a growth in a long period now I have to do the same thing. I have an amount, I have 20k that I that I want to spend at maximum for having the best learning in trading.

[00:10:27.18] - Speaker 3
Yeah, I like, I like what you were saying. And you give again some keywords and let's talk about this. So your first you were saying you were seeing entrepreneurship not as a gambling. And I think this is also one of the major key in trading. So trading is not gambling. We are professionals. But it can become very fast to gambling if you don't, don't have any plans, what you really want, where you want, coming to the market. So if you're not having any playbooks or setups, what you really like to see in the market, when you go into the market, when you go out of the market, so, and in short, so if you have not any rules, you play without rules, then you start to gambling. It's insane in the entrepreneurship. You can go to your government and can make 20 companies like this. It's very easy in Europe. But to manage the companies and all the stuff, what's behind, we have tax, we have all this crazy stuff. So that's not easy to manage. And this is the same when we came to trading. So we must have first and business plan. So what we really want with trading.

[00:11:37.23] - Speaker 3
So then we were speaking about report the risk management to your partners. Risk management is one of the key things you were saying about more errors to understand better and you have some money to invest. But I would say money is only, only the part of the game. And we should not speak about money. We should more speak about having only one good trade. So our goal should be making one good trade, making one good deal. Think about like a business. We want, we want make one good deal with our customer. So we buying something and then we selling this for a good amount, that we're making profits or we selling something what we can buying at the end, and we're making good profits. So we don't think about the money in nature. As entrepreneur, we're thinking only about how we can make good deals, how we can find a good customer. And it's the same with our setups. So we must define first, what is a really good setup, what do you really like? And I think mentor Q can help you with this. Very good. Because we have many, many tools. So we have tools for day trading, we have tools for swing trading, we have tools for long term, we have tools for forex, we have tools for bitcoins, for any, any style of interest.

[00:13:02.24] - Speaker 3
And don't forget you were saying about stocks and ETFs, of course we can do this also. And I think, Fabio, now I give you the ball maybe to show what tools we fund Mentor Q have. And then we going in every style of the trading and we're taking a little bit deep dive in any style. What is the pros, what are the contrast? And then it's like you're going into a shop, but at the end you must find something for you. What do you really like? And as you say, it's a trial and error. And then you find at the end your personal style. And this is the cool thing on trading. And I think, okay, Fabio, let's go. Yeah.

[00:13:46.28] - Speaker 2
And I Think Nick.

[00:13:47.20] - Speaker 1
Before we start, I really want to tell you why we study Mentor Q and why the things that we're doing I think are key to help traders become more effective. So I work for a large company selling data. I work for Bloomberg for about 11 years, biggest financial data company in the world. And I've really met the biggest investors. You know, I was covering companies like JP Morgan, Citibank, Citadel, a big hedge funds. Right. And one of the reason why a lot of retail investors are failing is because technology is evolving and a lot of investors are relying on emotions. Right. Obviously you trade is like gambling. You are really happy that you are making profit, but the moment you lose, you then become depressed and that can affect really your mindset. So we're going to talk about mindset during the session. But really the big investors are now starting to rely more and more on data. And data is really helping you make better decision. But not only make better decision, but also stay away from those trades that you would have taken if you just follow your emotions, right. And that is gonna increase your profitability.

[00:14:58.15] - Speaker 1
So I always like, like to maybe share a couple of slides and then we can go into the details. Let me share it right here. So if we go back.

[00:15:09.04] - Speaker 3
Yeah, but sorry, let me add something to this because, because I think there's, there's a. One good point. What we always bringing to the point and why, why we was funding Mentor Q, especially you. So if you have a lot of data, especially as a beginner of a trader, this could be extremely overwhelming and you have no idea what you should do with this and you're making wrong mistakes. But as I came to Mentor Q fab, you was telling me the big goal from Mentor Q is that you make what you're doing with the data with all the data, you make it simple as possible for the traders, correct?

[00:15:51.13] - Speaker 1
Yeah, that's correct. So basically we want to try and mimic the same approach that is used by big hedge funds. So you take really complex data sets that have a lot of value. And in this session we're going to talk about options. We're going to share why there is a lot of value behind the options data. But then the problem is that options data is expensive, is very big, is a large data set, if you don't have computer skills, can be very hard to understand what's going on. Right. So we take really complex information and then we simplify it. So we basically narrow it down for everyday trader to be able to understand. And then we create visualization and we're Going to share some of the models that we have so that everybody can really take the power of the option data or any other data sets that are out there and then really have an idea directly on your chart or directly on your screen of what are the things that you can do. And then obviously once you start learning how the model works, then you can really trust the system and you can really trust the insights.

[00:16:53.14] - Speaker 1
And obviously that's going to help you then make better decision in the long term, hopefully.

[00:16:58.22] - Speaker 3
And this is one good key point, Fabio and I think Nicola, this is also one good point and Fabio was saying about learning and then you can make progress. And if you be, be joining Mentor Q, I think the, the most important thing is that you become active in learning and learning and observing how the levels are working, how Mentor Q are working. And with every day maybe you spend only five minutes to go through some guidance, you become more and more understanding about how the market is working. In the beginning, maybe something could be very overwhelming. But I will promise you, if you start learning maybe only five minutes with only one single article, go to one single YouTube video each day, then it will be a mind blowing. After 10, 14 days it start to become, wow. It's like now I'm understanding how something could be working and this is, this is, this is really nice. And you see it in my eyes, my eyes making bling bling. So maybe it's the dollar sign, I don't know. But, but it's really like this. So if you understand more and more about how everything is working together, it's amazing.

[00:18:17.21] - Speaker 3
And we have all the guidance also for you and this is something that we should not forget.

[00:18:23.09] - Speaker 1
And I think going back to business, right when you started your company, you didn't have a product at the beginning, right? You have to learn how to build the product. You have to learn how to build a team. You have to learn how to sell to customers, right? But if you just went into the business and wanted just to sell and make quick money and get out, then your company would have failed. So of course trading, you know, you need to obviously that if you're, if you are committed to the, to the, to the, to learning and to training, then you need to invest obviously time in learning, developing your skill, find what's interesting to you and what makes you happy and then master that and we can provide them the tools to be able to, to basically use it and, and be successful.

[00:19:07.24] - Speaker 2
Yes, of course. Because I don't want to come into trading session with you or with me or with my own. Only with an improvisation. Okay. I don't want to improvise anything because if you improvise in entrepreneurship, you fail. Of course. 100. And I think it would be the same in trader in trading.

[00:19:32.26] - Speaker 1
Yeah. And also like going back to the example of the hedge funds, right. If we look at the large institutions, when they buy data, they will never buy data. That is trading signals. They will never do that. And the reason is very simple because the moment the trading signal either doesn't work or is not there anymore, their whole strategy is not working. So they are buying data that they can use to build trading signals. And is this. I think it's the same approach that you should use in trading where it's not. You don't want to follow what Patrick does. You want to learn how Patrick does it so that you can then approach it with your own strategy and then replicate it and obviously be successful. Because the moment Patrick maybe is no longer trading, then you are basically blind that you don't know what to do because your signal is not there any longer. So that's why like the institutions are like, we don't buy signals. We make our own signals. And it's the same principle that we try to share with the community and.

[00:20:33.00] - Speaker 3
I think to make it easy to understand for everyone. Think about for one minute about Michael Jordan, think about LeBron Jones, think about Lionel Messi, think about Cristiano Ronaldo. Every, every young kid won't be the disguise. So they won't be the same like this. They. They copy the moves and making everything. But at the end they developing his own skills to become as a big gold professional. And this is the same in trading. Think about you being kid 6 years. How long it takes to be. Be stay on the, on the soccer field or on the NBA game field. It needs maybe 10 years, 12 years, 15 years. And I think trading is like the same. If you want be become unprofessional, you must think about this. This time is to invest minimum 10 years and spend every day on the playing field, every, every day learning something, getting something out. It's not like after one year or I give up, I lose everything. If you have something like this, this is not part of the game. If you have no money to trade, there's always a solution. There are problems outside. You can paper trade, you can simulate, you can do everything, but you can always stay in the, in the game.

[00:21:51.22] - Speaker 3
There's no, no, no execution so that you can say there's no way. I cannot trade. You can trade every Single day. So, and this is something, when you came in, in the game as a beginner, do you want to really take this game? Because this is a game of highly professionals. If you won't be in a retail trader, you must become a professional athlete. Because at the end where you battle with and this is an unfair game. This is David versus Goliad. We battling with hedge funds, we battling with high institution. If we want to be smarter them, then we then we have to invest much, much more like they doing. And this is our brain, this is our willingness, this is our power. And if we can do this, then we can beat everyone. And this is some question where everyone should ask, and I will ask you, if you want this, if you want this, then we on the right path. If not, go and enjoy your life. Go as cashier, whatever you want or spend your money and I don't know, in flats or something like this. But then trading is not your game.

[00:23:04.27] - Speaker 3
So you have to really think about where are your enemies. So your amnes are the hedge funds are the big players. You're fighting with someone who's really big. Think like you're saying from a big bank and you're looking to the, I don't know, 50 floor and there are 50 from one floor to 50 floor. They are the best traders of the world. They against you. And you have, you are the only one who have to become smarter. And then the cool thing is now you start to building your strategies. Now you start to thinking like, okay, how I can become day by day, step by step, a little bit smarter. And at the end, I stay on the same stage or they won't hire me because I'm so good. So, yeah, that's it. That's a part of the game.

[00:23:53.27] - Speaker 2
Yeah. All right, I'm ready. I'm ready.

[00:23:58.16] - Speaker 1
Yeah.

[00:23:59.08] - Speaker 2
I want to learn totally the total rules of this game. Maybe I can understand that. It's not for me. I don't know. But I, I need to understand all the rules.

[00:24:13.29] - Speaker 1
Yeah, absolutely.

[00:24:16.28] - Speaker 3
And I think sometimes I'm staying also on the bridge and thinking, oh, man, I'm a idiot why I was doing this. And I was thinking, man, I will go back. I'm a good, I'm a good guy. I was doing this.

[00:24:27.01] - Speaker 2
This is the voice of your wife.

[00:24:37.02] - Speaker 3
All right, Fabio, let's go.

[00:24:39.05] - Speaker 1
Yeah. So Nick, before obviously you are, you are new kind of to kind of finance of it you've tried in the past. But maybe like I can give you a brief kind of summary of why we development or q What are the assets that we cover? And the reason why this is important, because then you can kind of really understand, okay, like, what type of investor do I want to be and what type of strategy do I want to be? Because there's different approaches. None of them is wrong, none of them is right. It really depends what, what the approach that fits for you. Right?

[00:25:10.28] - Speaker 2
Yeah.

[00:25:12.02] - Speaker 1
So if we start from the beginning, everybody knows the best investor of all time, Warren Buffett. Right. Fundamental analysis was really the key strategy that worked really well during the years of like the 90s, 2000s, until really 2007. Right. So if you were a very good stock picker, you could have found a stock that had really good fundamentals, underpriced, and you could have waited time and the stock would have gone up. Right. That completely finished in 2007 when we had the first 30 crisis. Right. And then we kind of moved into an area where liquidity became. Came up everywhere. So the Fed really injected a lot of liquidity. So then fundamental analysis in the next 10 years didn't really work as well. So a lot of traders started to rely on more like technical analysis, which is price and volume based. Right. So using technical analysis. And the reason is very simple. Technical analysis is simpler. You have less variables. And potentially any trader of any type can kind of like be successful because you can find signals, you can use indicator. And fundamental analysis is more complicated. You need to learn how to read balance sheet, you need to learn how to understand how company works.

[00:26:34.06] - Speaker 1
Right. But then we went to another period of time, which is Covid, right. And everything changed during COVID And that's when we started seeing like the increase in what we call liquidity analysis or market positioning, where options data became very, very relevant. And, and the reason is very simple. We saw for the first time in history the gamification of trading. So during the lockdown, everybody was at home. Everybody obviously lost their jobs. Everybody was trying to understand, okay, how can I now survive this pandemic that could last forever? Right. At that time, we didn't really know when it was going to be finished. So a lot of, with a lot of time and with a lot of interest, trading became very, very relevant. And everybody started really taking a peak out of it. And then we had obviously the GameStop saga or these like gamma squeezes, or these like, exponential return where, you know, young kids with like $1,000 in the bank account became millionaires. We had the crypto, we have the crypto boom. So basically a lot of focus shifted to more like looking at the option market. Also, we had trading platforms like Robinhood that suddenly became available to everyone.

[00:27:48.22] - Speaker 1
So you could open a trading account with a few thousand dollars and you could start trading options, right? So imagine if you are like a young kid that wants to make quick money very fast, option became very, very important because they have leverage, right? And as a result, and then, Nick, I'm gonna ask if you have any idea what options are and if you have heard of them, if you ever use them. But we always show this chart because it's very, very rare, relevant. In the last four years, the option volume have more than doubled or tripled the average 20 years that we see here. And why is that important? Because if you understand how the option market works, you also understand where the liquidity moves. And even if you are not an option trader, you're going to be able to benefit from these insights because that's going to move the price of your asset whether you're trading a stock, whether you're trading futures like Patrick, or whether you want to trade options. So a lot of our data is based on options and there's a reason for it. And then maybe, Nick, in the next few minutes or hours we can explain why.

[00:28:54.20] - Speaker 1
But let me know, like, have you ever traded options? Are you familiar with what they have a traded option?

[00:29:00.23] - Speaker 2
I read a lot of articles about options, but if you want to clarify me the differences or the principal characteristics about option.

[00:29:12.11] - Speaker 1
Yes, option is basically like. So when you want to invest in an asset, whether it's a commodity, a future, a stock or an etf, you have the option of either buying directly the assets, so you buy 100 Apple shares, or if you don't have enough cash, because for example, Apple shares are $250. And if you want to buy 100 of those, you need $25,000. And maybe you don't have that kind of cash, right? And then so you can use options. So options are really an insurance, if you want to call it where you are basically buying the right, but not the obligation to either buy or sell a certain number of shares of an asset, in this case Apple, at a specific price, which is called the strike price. So let's imagine that and we can go into our chart. Let me share my screen. So here we have the chart of Apple is 227. So in order to buy and get access to the exposure of 100 shares, you would need 22, $746. Right? But on the other hand, you could actually buy a call option, which call option is the right to purchase 100 shares of a company, in this case Apple, at the determined strike price.

[00:30:47.22] - Speaker 1
And you can use that option in two ways. One, to exercise the options. So if you want to hold own Apple shares at some point in time, you can exercise that and you have the right to purchase those shares at the strike price that you set when you bought the call option. Or you can bet on the price appreciation of the, of the, of the call option by looking at what the price of the underlying does. Right. So if the price of Apple goes from 227 to 250, let's say all the way up here, and you have an at the money call option, which really means that you're buying the current strike level. So 227. That means that your call option would have really appreciated in time as well. And obviously you are using leverage. So you don't actually have to put out those $23,000 to buy that call option. But when the price goes up, you can actually have a higher return because of the price appreciation of the stock. So essentially it's a way of getting exposure to an asset that you like without having to take out all the money that you need to be able to have the same exposure.

[00:31:55.29] - Speaker 3
Okay, let me, let me add something to this Fabio. And I think, I think if I was coming to the options world and before I was meant to queue, I was hanging around with some other ones and, and it was so complicated for me to, to get a, a really idea about the value from the options market and to understand okay why the options market can help me and maybe can you add the volume indicator? The, the normal volume indicator? I will explain this in really simple, simple mania. All right, so what you now see is, is the volume. But to understand where came. So I will ask you Fabio, let me make an question and answer where the volume is coming from. If you see now the volume on your shot on your Apple on your Apple chart, it came basically from, from the stock, correct?

[00:32:56.17] - Speaker 1
Yeah, correct.

[00:32:57.11] - Speaker 3
And we must understand. So this is only in data feed. So this is only some brokers will provide us the data. But, but if we getting an idea what moves the market move really. So this is maybe only a piece of cake. So what we see now on our trading view, the volumes is only a piece of cake. There are some other big fields. So there are some, some other fields. So this is the part where the institutionals place the trades where we have no access to with good reason because it's really complicated to extract the data to understand the Data and we have a third big part and that's the options market. And if you see now the peak on the Apple where we see now the volumes buying and selling, you must understand that maybe we double now the volume with the options market and then we can understand why is the options market so important? Because the options market can, I don't say they do, they can influence the stock. So if we see no news in the market but maybe we see some expert expiring in the options or someone is battling on long term with options beginning a big impact on, on the stock market and we see that the stock market goes to the upside or to the downside.

[00:34:25.12] - Speaker 3
And now we're getting back to the chart where we see the options trading volume. And in the moment where I was understanding this as a stock trader and ETF trader, this is not only the volume what I seeing on my trading view shot or on my, I don't know, whatever shot you're using. It's not only this feat, they are much more big, big other stuffs. And if we getting some other source where we're getting more information, more information from the market makers. This is very powerful and give me one good reason why you should not use this. I don't find this, I was only find find the reason because it was, I was not understanding why is this helpful? Okay, go ahead.

[00:35:17.20] - Speaker 1
What to that Patrick? Think about when you are sitting at the poker table, Nick. Right. You know what your hand does hand that you have but you don't know what's out there. And the out there is the market, right. So you're basically fighting with opponents and you might have a very strong hands but maybe somebody's going to bluff you at some point and you don't know, you don't know why and then you end up losing. And the option market is what I call a forward looking strategy, right. So we talked about fundamental analysis and we talked about technical analysis and all of these strategies are relying on past information. So from the analysis you are using balance sheets that maybe are three months old or maybe six months old and you are using that to formulate your idea, your theory. So you have your hand and you're using past data to make your bet. Technical analysis is the same. So we're using volume and we're using price but nobody knows the future. So we are looking at the past history and we're trying to forecast the levels and resistance, you know, supply and demand and that's very valuable.

[00:36:22.18] - Speaker 1
But then we're missing something, right? What is the Market thinking about the future, like where are the big money going and you know, where is the flows going? And that's why liquidity is very important. And what this chart shows you, and this is for example the one of our charts that we're going to explain in the next few, a few few hours of where the market thinks Nvidia is gonna go. So tomorrow, I think it's tomorrow, yes. We have the earnings release and basically by looking at this chart you see a very wide green bar there. So the market is really betting that the company is going to be at 150. Right. That's like the strike price where everybody is really positioning themselves by using options. Whether they are selling options at that strike, whether they're buying option at the strike, that's becoming a very important area. The market is really looking at that. And in your case, Nick, if you know something like this, whether you are a day trader or whether you are like a long term trader, you understand. Okay, my opponents now are showing me that they are bullish on Nvidia and they are bullish at the 150 strike price.

[00:37:34.25] - Speaker 1
Is it going to happen? Maybe yes, maybe no. But you have some piece of information that is very important for you to basically being able to formulate a decision. And then the other part is really that option market are the sentiment of the institutional world and the retail world. Because for many different reasons. Right. If you are in institutions, you would use options to, to hedge yourself or you would use options to potentially place bets on, you know, some of part of your capital that is not invested. If you are a retail trader, you are speculating. So you would make bets on obviously leverage. So you are basically making a bet to potentially have a greater return. But we need to look at where the big money is coming from. And that's what we're trying to show you right here.

[00:38:24.23] - Speaker 2
Okay, let me make some question. I want to know if I have understood this chart. The yellow line is the current price. 134 maybe.

[00:38:43.01] - Speaker 1
Yeah, let me open it up a little bit bigger.

[00:38:45.19] - Speaker 2
Okay.

[00:39:01.20] - Speaker 1
Okay.

[00:39:04.02] - Speaker 2
Okay. The horizontal line at the price. Strike price. 134. The horizontal.

[00:39:11.18] - Speaker 1
Yeah, that's the highway level. And we're going to explain what that means as well. Yes.

[00:39:17.19] - Speaker 2
Okay. And the current price where is.

[00:39:22.25] - Speaker 1
And this white line? Spot price.

[00:39:25.26] - Speaker 2
At the white line. Okay. Spot price. Okay. Okay. And you are saying to me that there are a lot of probability that the price growing to 150. This is the.

[00:39:43.22] - Speaker 1
Yeah. What this chart shows you is. And we're going to Explain where we go into the gamma levels is coming from the option market. We can extract a lot of information and options are based on Greeks, so they are mathematical probabilities and calculations. It's a very complex algorithms that you obviously don't need to learn and don't need to know. But as long as you understand the basics that that will help you understand how the option market works. So we're always going to talk about gamma and delta, which is really the probability of your option to become in the money by expiration. So that means that you're going to make money from your option strategy by expiration. And that's the goal of every investor. When you buy an option, when you buy a call option for example, you are expecting the price to move in a certain direction.

[00:40:36.17] - Speaker 2
Okay.

[00:40:36.26] - Speaker 1
And that's going to help you make money if that happens. Right. So you are betting, it's kind of like betting on the price movement.

[00:40:43.28] - Speaker 2
Okay.

[00:40:44.22] - Speaker 1
This chart, you see that there's a lot of market participants and there's 100 million in Jax, which is quite a high number that are betting that by expiration. And this is not showing you what the inspiration is because there's different expiration the option market. But basically that the 150 price in this case for Nvidia it's attracting a lot of interest. So it's like compared to all the other price. You see there's a very, very like massive spike right there.

[00:41:19.08] - Speaker 3
Okay now and now everyone knows that I'm simplify everything. So in translate in, in in a really easy understanding way. So not mathematical, not on the trading way. Don't take it wrong please. So think about you have a pin and your pin is now on 140 and all the bars are magnets. So what is the opportunity where the pin will be going? So if you have a really Strong magnet on 150 and below this you have also magnets. And if you're looking to the cell side, is there any, any strong magnet? It does look like this. Yes. Correct.

[00:42:07.06] - Speaker 1
Yep. Yeah.

[00:42:08.17] - Speaker 3
So how is the how in which way possible will the pin going? They were going in the way. Where are the strong magnets are?

[00:42:18.08] - Speaker 2
Yeah, of course.

[00:42:19.08] - Speaker 3
And this is, this is exactly the same principle what this graphic is showing you in a really simple way. You see now really strong magnets. The white line is the pin and we will now making it visible for you where you can possible getting any directions which one is much stronger and which one acts as a magnet. So when we speaking about the put support call resistance high Wall all about the gamma levels. We're speaking about magnets. And as stronger the magnet are there's too much more influence they have and and add the more investors looking to this levels. So now they're thinking oh, we are on on 140. That's now a really good opportunity to go to 150. And why is this? Because there are so many people who betting on this.

[00:43:16.19] - Speaker 2
Yeah. Okay.

[00:43:17.12] - Speaker 3
And I will follow this. So I will not betting on possible to going to 120 because they are not so good opportunities. They are not so strong magnets. But will this be happened? We don't know. We cannot predict the future. There can come any time some bad news in the market. Every, every economic. We are in the economic world world everything could be happened. And this is why when you're looking to the graphics and you get say oh man, this this looks so nice. And this is. This will be trading could be so easy. Don't forget we're living in an economic world. We have also to looking into the news. Something can happen with Nvidia anytime. Something can happen in the U. S. Economics. Something can happen worth the world. And then you see really quickly how the magnets are changing to the red side. Then we have strong magnets to the other side. And I think if you understand this like this and then adding this, what Fabi was saying about the mathematical behind about the trading theory, you will understand this really easy.

[00:44:37.19] - Speaker 2
Yeah. Okay.

[00:44:38.13] - Speaker 1
I think Nick, maybe it's worth also spending some time on why they become magnets. Right. Are you familiar without. You know that the stock market works when you buy and sell on who is on the other side of a transaction. Is that something that you are aware of or.

[00:44:55.10] - Speaker 2
Yeah.

[00:44:58.16] - Speaker 1
So let me, let me go back because I think this is quite important. Right. So we go back to the fact that obviously the option volume has increased. Right. There's a lot of more volume. And why is that important? Because more leverage is in the market. But if we go back to how the market works so understand okay, now we are at the casino table and we're sitting with our opponents, but we also have a dealer in front of us. So in our case, who is the dealer? We're talking always about the market maker. The market maker is the entity. And these are like funds, banks, hedge funds, quantitative companies that are providing liquidity to the market. So imagine without the dealer, you could not play cards. You would not be able to see your hand. You would not be able to entertain with the other people at the table. Right. So the market maker is really the entity that allows everything to be possible. And when we talk about options, the importance, importance of Market Maker is even greater because think about, if you, if you look at the stock like Apple, you could have hundreds of strike prices.

[00:46:11.11] - Speaker 1
So think about, you could have a call option at 215, 212, 210, so, and so goes on, and you could also have dozens of expirations. So you might want to buy a call option expiring in this December, but you could also buy a call option expiring this Friday. We have weekly options. So every week there's a new option contract available. So imagine how hard it would be for you holding a call option contract to be able to actually exchange that contract to another person. Yes, of course, anywhere around the world it would be impossible because there's thousands of companies listed in the US Hundreds of strike prices, dozen of expiration. So it would be like millions and millions of potential assets or contacts that are out there. So therefore from your broker account, we're in 2024, you can go in, type a buy button or a sell button and the transaction gets executed. And you don't know the mechanics behind it. But the idea behind is that in the middle we have our market maker and the market maker would either find a buyer or a seller. And, and if there's no buyer of a seller, they would execute the transaction by applying a spread.

[00:47:24.26] - Speaker 1
So they don't actually make money from taking the risk. So if you buy a call option, the market maker is short the call option. So if the price of the asset goes up, then they're losing money. Right, but they're not actually there to make money from direction, but they're, they're there to make money from transaction. So they, the bid, ask, spread. So you, you pay a price at the ask and you pay a price at the bid, they make the difference and that's their profit. So imagine like the question for you, so how is that possible? Right. Without having risk? Right, because they are taking on a lot of risk by selling you an option contract which gives them the obligation to deliver 100 shares or to purchase 100 shares. So every time they need to do an activity called delta hedging, and that's basically how they basically offset the risk. And I think we don't want to, maybe if you have questions we can go into, into details. But essentially the important part to understand is really that the market makers are always buying and selling underlying to be able to be delta neutral.

[00:48:30.17] - Speaker 1
So obviously not having the risk of the price moving up and down. And that's why these areas become reaction zones. Because whenever we get to that level, the market maker is like constantly buying and selling and hedging. And that's where we see the increase or decrease in liquidity. Okay, let me know if that is true.

[00:48:54.12] - Speaker 2
Yes, it's clear. It means that there is someone that. May trade the opposite that I trade only for balance. The, the market, it's like a balance sheet where there are active and passive. And if there is an active, it needs to be to. To. To do a passive for the equal weight.

[00:49:22.14] - Speaker 1
Yeah, there's like a force that nobody. So like sometimes it could happen that you see a very strong move in one of the stock and there's no news or there's nothing happening in the market, but suddenly you see a strong move and nobody really understands why. And sometimes, many times actually it's all derived from the option market because we're approaching relations. There's a lot of options that have gone from out of the money to in the money. And therefore there's a lot of movement of liquidity. And that's why. So whenever we see, you know, charts like this, these are very important areas that are hard to break and therefore we have liquidity that pushes the price to another important area right here. And that's when we can see those levels being like reaction zones.

[00:50:13.26] - Speaker 3
And then Fabio, I think let us add something also to this. Because why people. Why people often losing money? Because they adding trades in the way where there's speculation and noises. And if you're looking now to your shot, what you're providing us, what we see, we see in the middle between 290 and 300 there's no activity. So you'll be up in the ping pong position. So you can see basically, basically on the gamma profile where you have possible good entries and good exits. So you don't want to go in the middle of nowhere into the trade. So make the sense to go now in the area of 290in. In the. In the trade. Possible. Yes, if you be and scalpa if you're going for 1, 2 points. But to make a really good money, it makes sense to going in the area when we going truth put support and we're going straight to call resistance. Think about as an entrepreneur, what do you really want? You want good deals, correct? You want. You want taking out so much profit as possible, how much the market gives you. So we play as entrepreneurs always about the market.

[00:51:42.09] - Speaker 3
So there's always something. And when we going in the middle, when some people was already selling, taking some profits. And we going now in the market, so there are not so many good opportunities anymore. Of course we can be lucky and getting some nice move and can make money. Of course we can make money. But can we make the same money as the guy who's on the marketplace in the beginning when the move was starting, like put support and stay until the end to call resistance. And he make at the end the big money. And he's the smart guy. And we want also be the smart guys. And this is why we telling everyone, you, Fabio and me, look to the net checks, find out where are the good areas for your entry and exits that you can make good moves. You don't want get into the noisy areas.

[00:52:38.20] - Speaker 2
Yes. You are saying, Patrick, that you can enter. I take this example at 280 for looking to a put support at 270. But if I enter in 270, I. I have a lot of risk because I can broke down or rebalance, rebound or not.

[00:53:06.22] - Speaker 3
No, I think, yeah, you have risk. There's always risk if you're going into the market. But you can manage your risk much better. What we want, as our entrepreneur, we want a good risk reward. We are ready to say, okay, I'm losing thousand US dollars, but for my thousand US dollars, in the best case, I want back 3,000. Correct. Or much better.

[00:53:35.26] - Speaker 2
Yes, yes.

[00:53:36.20] - Speaker 3
But we don't want get in any area. Like for example, if we go to, I don't know, 290, 295. All right, we can make possible thousand.

[00:53:46.23] - Speaker 2
You are in the middle of nowhere. Okay.

[00:53:48.20] - Speaker 3
And we can possibly lose thousand west.

[00:53:50.21] - Speaker 1
Yes.

[00:53:51.12] - Speaker 3
So we're looking as traders always for a good risk reward. Maybe not thinking like in risk reward. Like maybe where we have good areas we're speaking about, is this now a good location? This is a good location to taking a long trade to the call resistance there. Or is this a good location to taking a short trade? I would say yes, because the risk reward is good. And then this is a good setup. So we were speaking about your rules and your entrepreneurs. You have always rules. You have rules for, for your employees. You have rules for your bank account. You have rules for everything there. And this is the same in trading. You have rules meet this setup where you are now your rules. And then is this a good location? Is the market now at the top of the top? Is this the market in the middle of the middle? Or is the market on the bottom of the bottom? And then if you, if this everything is meeting your interest then go ahead. And we want always a good risk reward. That's, that's why we in the game. So this is why don't go in the market where all the stupid noises are.

[00:55:03.26] - Speaker 2
Yes you. I remember me that when I was young and in the first year, in my first stop I. I take always the. The wrong decision because every single day I change my mind only for the noises of business. Okay. The, the. The. The wrong KPI. The day KPI. It's the wrong KPI to. To. To understand it to see. Okay. Because you have a. You. You need the strategy and you have to set your rules that you said before for a long strategy. Okay. And, and the, the noise of the day in business can or business up.

[00:55:49.02] - Speaker 3
Yeah.

[00:55:50.05] - Speaker 1
Yeah. And I think it's, it's going back to like obviously there are statistics that say the 90 of day traders lose money over time. And one of the main reasons is that if you don't follow a set of rules then you're just going to be trading with emotion and the moment you see a negative balance you're gonna get out, you're gonna go okay, I made the wrong decision. And then that's going to just like increase. So by looking at the, in this case the option. Why is the option data so important? Because it's telling you where the big institutions are positioned and that's where the big institution that those are the people that are moving large capital of money that could have an impact in the market and simplified in a chart. Those are lines that you see in your chart but they contain a lot of powerful information. So it's kind of like the output is very simple but the content behind is very powerful. And that's why we've been very successful because we've simplified it enough that you have just some lines on your chart but behind those lines you have the power of all the algorithms and the models that we built that can give you like a stronger signal and then maybe like Nick, I can share actually some example.

[00:57:08.14] - Speaker 1
Yeah. So like again and I don't know what strategy you will be using, what type of trader you will be but let's imagine that we are using technical analysis and we are obviously have our own indicators. We have our support and resistance coming from price obviously backward looking. So we're looking at the history and we're trying to predict what could happen in the future. So here you have a nice setup where you can draw your support level and you can have other indicators like the RSI at the bottom. Ideally this could actually be an interesting area for maybe going long. This asset, because you are the RSI is kind of like in this 30 area which can signal a buy signal. You have your support, you obviously have a strong rejection. There was a couple of rejection there, but then the price drops, right? So let's imagine that you actually believe that the market could drop and you are basically going short here. You did a great job. And the next thing is like, okay, where is your risk management? Where do you, where do you come out? Where do you take money? Where do you place stop, right?

[00:58:19.26] - Speaker 1
So if, what if you knew that there's a lot of big activity on the put side coming from the option market, right. You don't have this in your chart, but you can see it in our model right there. And what if you were able to plot that activity on the same chart, right, Very easily, like obviously the power of option data. Now you have lines on a chart that can simplify the areas where you should really pay attention to. So you can see that our put support, which is the biggest area right here, is now on the bottom of that candle. So now let's imagine that you're short on this trade. What do you do? Do you take the risk of the price going lower or are you happy with the, with what is happening? Right. And knowing that activity and the power of the data can allow you to understand, okay, maybe if I was short, in that case I could have either taken my profit or I could have moved my stop to make sure at least that I make this big move that I was really good at choosing. And as a result the price bounces back, goes all the way up and we see like a trend reversal.

[00:59:34.13] - Speaker 1
So again you could have used these lines, this data not only to get out of your successful trade, but also maybe to choose an opposite direction. So maybe the market is bounding and maybe the market is really was not in a bearish move. And now we have a reaction there and the market is now going up to the, to the next level, which is another very important one. And then the next step is, okay, so now we, let's say that we were able to catch this move. Where is our next target? Right? Where, where are we going next? And therefore you put the levels again and you have your expected move for the day. So by looking at options data again, forward looking analysis, you can expect that the move of the day could be from our one day max to our one day minimum. And then what if the price goes to the one, the max, right? Okay, now the move we did a great job. We were able to forecast the, the momentum here. We were able to get all the way here. But now what do you do? Like what would you do Nick, in this case.

[01:00:37.07] - Speaker 2
My. I, I go short.

[01:00:42.01] - Speaker 1
Okay, why would you go short?

[01:00:47.05] - Speaker 2
When I, when, when the price it's going to 907, I think it can be bounced back.

[01:01:00.04] - Speaker 1
Okay, but is that based on your emotion, Is that based on, on your feeling or is that based on maybe some statistical analysis?

[01:01:12.17] - Speaker 2
No, I think if there are a lot of coal in this point with the, the net jacks, I think there are a lot of cell and then the price go, go down? No.

[01:01:29.19] - Speaker 1
Okay, and what if I told you that we can have statistic behind and we can have a back testing that says that over 200 days 90% of the cases. So in 90 of the days the Nvidia stock price close below the one day max. Right. So you have 90% of chances. So if we go back exactly what you said, 90% of chances that the price would rebound based on statistical analysis. Of course it's not. We cannot predict the future, but we can look at the past data. So obviously in that case then there is obviously a higher probability that the price would kind of like retract back. And that's kind of like what happened. This move was too extended. A lot of seller came in and the price kind of rebounds back right there. So that was actually very good, good code that you had.

[01:02:25.07] - Speaker 2
Yeah. Okay, and what, what is the, the JAX level one?

[01:02:33.12] - Speaker 1
Yeah, that's a good question. So let's go back to.

[01:02:37.26] - Speaker 2
Because I understand that the put support of the core resistance and the hvl.

[01:02:43.10] - Speaker 3
Fabio, before we go to this, let us, let us stay on this graphic because I think they are much more to understand. Yeah, and you were saying something really good. So what is Mentor Q doing? Mentor Q is looking forward. What are the most indicators looking? They're looking backwards. So this is, this is the number one. So this Mentor tune indicator. So now we delivering based on data and we're looking forward what indicators are doing? They are most lagging indicators and looking backwards. So this is one of the biggest big major to understand. So you can now now say do you trust more in tool who's looking what was happened in the past or do you looking for a tool what is more looking into the future, what could possible happen? So and I think it's much more powerful to have a tool what possible looking into the future, what can happen? This is only my personal opinion, but I think it's a good opinion and to understand when. When we're speaking about the marketplace. So as an entrepreneur. So we want having good deals and we want good entries in the market and we want good access in the market.

[01:04:07.00] - Speaker 3
And think about so where was the good entry in the market? So we were starting when we were starting Fabio on this it's so where's the possible good entry? The good entry was where the one day expected move line and to put support are because we are on the bottom. So we have on this point a possible good risk reward for our position where we can going into the market where we was speaking first about this and now we. We was riding the wave. He was riding the party train to the top. And basically there is some point where we say we have making now our risk reward. We was going for 1 2, 4, 1, 2 5. Now it's time to taking profits. And every time when you be in the market and you see our levels no matter what names they are first you have to think about the, the, the persons who are in the market. Is this now for the persons who are in the market we are now on a big party train where they was riding a big wave to the upside, to the downside. Is this now the party may be over.

[01:05:24.15] - Speaker 3
Is this now a good point to get in the train and and maybe they going much, much higher because the momentum is so strong everyone wants something or is there now the point where people saying oh I was making so nice profit now it's a good idea to take in my profits. And as a short seller when people taking profits it's the best opportunity for you to going into the market. So and this is something what you should be always having in the mind. When we came also to the levels so we were seeing one day expected it move maximum. So what is this calling and we we having the backtest data. So in simply time means hey, now the market is done. So people taking all the profits. So we can. We can expect now that most of the people taking now profits they. They was making already a good profit. And you can. You can think about now do you want be on the train? Do you want and start okay, maybe the train will be going much higher today. And maybe you're on the wrong side or you're saying okay, I like this area because the people was making money.

[01:06:36.22] - Speaker 3
They covering now they're taking money. And for me I cannot short the market and can also make no profits because everything what came up must come down earlier or later. And this is always the same it's. It's in the life everything will go was on the top of the top in the business, in the. In the world. So think about Kodak when we was. When we was young. What was happened with Kodak? Everyone have a Kodak camera, everything what is up came. Or think about our Nokia smartphone when he was young. Everyone have a Nokia smartphone. Yeah. Everything was. Comes up came down and it's the same in the market. And we have to think about when is a good opportunity to go into the market. Risk reward when people getting out of the market because they taking no profits.

[01:07:34.20] - Speaker 2
Yes.

[01:07:35.21] - Speaker 3
And then we can speak about our levels. How our levels can help you to identify areas like this. And then you can can use also our net checks graphic to get.

[01:07:50.24] - Speaker 2
If I don't have the netjack information I'm blind into market.

[01:07:56.14] - Speaker 3
Yes.

[01:07:58.24] - Speaker 2
Really I'm. I'm gambling.

[01:08:02.05] - Speaker 1
I think it's. It's. Maybe I can share. So maybe I can share also some another point why this becomes important because if you understand. Okay, let's simplify it again from the beginning, right. Option volume are now much larger than the past. There's more liquidity that is moved by market makers, right? So the market maker is trading more so they're taking more risk and therefore they are offsetting that risk. So if we go back on the concept of delta hedging and then obviously Nick we can go into details. Right. If an investor is buying call, the market maker on the other side is shorter call, right. So it has a lot of risk. So in order to hedge they are buying the underlying. So they are going long the underlying based on the delta. That's why Delta and Gamma become very important if an investor is short a call. So if I sell a call the market maker is longer call. So in order to hedge they have to sell the underlying. If I buy a put then the market maker is shorter put so they have to sell the underlying. And again if I'm short the put then the market maker is longer put and I'm buying the underlying.

[01:09:21.14] - Speaker 1
So imagine like again going back to. We're going to talk about gamma squeeze, we're going to talk about put support and core resistance. But imagine if you are in a situation where a lot of investors are buying put option and the markets start dropping then the market maker starts selling really fast. And that's why when we go on the way down the markets moves are more. More of the time accentuated because you also have the pressure coming from the market maker or in the case, let's say in the case of Nvidia, if Nvidia was to break this area right here in the earnings, most likely a lot of investors are long calls at 150. So that means that if we go back to our slide, a lot of market makers are going to be short call. And if the price goes above that level, they're going to buy Nvidia to be able to stay delta hedge. So that what could happen in that case that the price of Nvidia might be able to skyrocket or move very fast. Not because investors are buying more shares, but because the market maker has to hedge this large exposure that you see in this chart right here.

[01:10:34.23] - Speaker 2
Okay. Okay.

[01:10:38.25] - Speaker 1
Yeah. Clear. Yeah.

[01:10:47.14] - Speaker 3
Will you will it simple. So the market maker is starting to blowing up. So he has to to hatch his own position to not blowing up. So so basically simple like this. And this is the best case and this is one of the goods for our retail traders. Because if some hedge fund is start to blowing up and have to cover, has to cover. So what has happened when they have to cover some short position or then they move the market as we're going higher, higher, higher, higher. And then we're speaking about the squeeze. So this was happened when we're getting the, the, the GameStop saga, when we get the AMC, when we get BlackBerry, when everything was starting like skyrocking. So then there is some other part who at the moment blowing extremely up and has to cover or have to hatch his position because they are so strong short. But now they have to hatch this position very strongly with the buying side.

[01:11:53.08] - Speaker 2
Yeah.

[01:11:53.20] - Speaker 3
To become at the end neutral. And this is the best part for us. But this is also one of the part where most of the time I would say 90 of the retail traders losing his money because now they thinking now we can going to the moon. Everyone is talking about we're going to the moon. And they were buying like crazy on 150. But it could be happened that some smart hedge fund, some smart institutional say no. Okay, let's go. So the price is already priced in. Now we're going down to 120 or 130 or some big institution that's taking profits. So it's a big difference if you taking profits or a big investor saying, okay, man, nice. We are end of the year, we are now on 150. We get and remember and everyone should be remember, we getting an Nvidia and stock split from 1 to 10. So what is this meaning? If we see 155,500 and everyone was Going crazy when Nvidia was was hitting thousand US dollars. Now we,500amazing. So we should not forget this. And there are also people who can taking profits. And then this will becoming worst case for us as a retail trader.

[01:13:22.10] - Speaker 3
So we. We have two options. So we can taking the losses stupid could be possible. Or we can also hedge our positions. But hatching position is more advanced. I will more to say okay, the risk is not worth anymore. Take it out quick and quick out in this case. And and this is something where we have also thinking about breakout trades. And when we are at the top they can be very successful. But there's always a risk behind. We want not gambling on some position position about this. If we gambling on something like this then we are professional gamblers. But I will. I will delay the word gambling because we are professionals. We are not gambling if we have a plan. If he's thinking about okay 150 I will go long on 150 but I'm getting out when we're on 145. So this is no more gambling because you have a plan.

[01:14:16.26] - Speaker 1
Yeah.

[01:14:17.11] - Speaker 3
So you taking you. You target your profit on 180 and say okay, I'm getting out when I'm losing five points. So you're making 30 points to losing five points. That's not gambling anymore.

[01:14:33.04] - Speaker 2
In this case you can buy both position 15055 and 145. And you.

[01:14:47.09] - Speaker 3
You.

[01:14:50.10] - Speaker 2
You close the position where the the price in the opposite opposite trend price that I mean if the price go to 160 you. You. You close the position where you bet on 145.

[01:15:12.00] - Speaker 3
And yeah yeah you can but this is based on your playbook. I give you some. Some. Some idea. I was doing some some earnings trades. So I like when big earnings coming out in the after the bell. And so I trading most of the time the NQ futures. So if. If we're getting an Nvidia earnings. So we were getting crazy move and a few seconds maybe 100, 200, 300, 400 points to the upside or to the downside same when big economic moves coming. I was thinking I I would be smart. So I was thinking like okay, having some long 200 points above where we are now and having some short 200 points where we are now and maybe some of the order get failed and I'm big in profit. It was working 60 of the time. Yeah. No, but the other 40 it can be the worst case ever. So you're getting a really big candle boom shooting to the upside. You get Filled, boom. Shooting to the downside. You get filled from on the other trade and boom. Going to the upside. Then you're taking in in few seconds two losses.

[01:16:29.01] - Speaker 2
Okay.

[01:16:29.19] - Speaker 3
Stupid losses.

[01:16:30.28] - Speaker 2
Okay.

[01:16:31.17] - Speaker 3
Because the market goes so strong volatility, we're going very fast to the one side, very fast to the other side and very fast again to the other side.

[01:16:41.09] - Speaker 1
Okay.

[01:16:41.26] - Speaker 3
So and at the end you're taking two stupid losses without everything. For me, when you see something like this, we have now the 151 there. We have a solution on mentor queue. And the solution is very simple. So we have, we can look into to forward in other months and weeks. Weeks. So we have the options matrix. Fabi will show you this. We have also the multi expiration for, for other dates. And we have also the swing trading levels where I can give you possible an idea where this could be going. And this is the second part where you have to be really careful of if you're trading breakouts.

[01:17:26.26] - Speaker 1
Okay.

[01:17:27.08] - Speaker 2
Okay. We are looking for another area in the future.

[01:17:30.21] - Speaker 1
Yeah. So yeah, I'll go into that. So essentially Nick, to break it down again. So think about when you buy options, you have expirations, right? So, so if we go back to our matrix, Stock options have weekly expirations. So every Friday there is an expiration indices futures, they have daily expiration. So imagine how more complex that is because you could actually buy option that expire today or tomorrow.

[01:18:05.11] - Speaker 2
Okay.

[01:18:05.28] - Speaker 1
So essentially what we want to understand is. And that's gonna also dictate your strategy because you could be a day trader and you're not going to care about what's going to happen in 30 days. But what if you don't have the time to stay in front of a screen every morning and you just want to place your bath for, for maybe a longer time window. So we are here in the matrix, we are basically translating all the different expirations for the next year or the next few years in this case that have relevant option activity. And then within this chart we are providing you the NetGex chart. So the same that we did before, but in the one before we were looking at the all options option chain. So every expiration on Nvidia here we're only looking at a specific expiration. So in this case we are looking at November 22nd. And we know that November 22nd we have 16 of our gamma exposure expiring on that day. And why is that important, Nick? Because going back to our delta hedging exposure activity. Yeah, we have a lot of gamma days expiring the market maker after the expiration doesn't need to hedge anymore.

[01:19:23.21] - Speaker 1
So they, they don't need to buy and sell the underlying. So they would basically close all the opening trades that they have that they had in place to hedge my exposure for this expiration. Right. So that's when for example, if there's a lot of gamma expiring in any date in the future, then that can become a very big technical move. And again there's no ex, there's no explanation for that. But you just need to understand, okay, okay, like options are expiring, market makers are offsetting their risk. We have a lot of gamma in this case. We can see it also here. So if we go further in the future January, we have 30% of Delta and gamma expiring or open interest in this case. But also when you look at this picture, you also want to see, okay, tomorrow is earnings overall, the market is positioned to the long side. But what about in the next expiration? So in the next week or two.

[01:20:23.13] - Speaker 2
So as of, and 16% is a big number or is a tiny number.

[01:20:29.06] - Speaker 1
It's a fairly big number, I would say. Yes. So obviously bigger number would be 40, 50%. That would be, be a very big number. But 16 for one expiration. Also like you saw that for example we had about 100 million in JAX for the whole expiration, we have about 40 million right here. So it's, it's quite, it's quite, it's quite important. And, and then here you see that we are on the same page. So for this expiration of Friday the market is also really looking at the 150. Right. And if we look at the next one which is the 29 also 150 is the level that everybody's looking for. But if we go then further down then going to December, then market is more towards the 135. Obviously it's the end of the year. And then if we go back to January, we have that 150 again right here.

[01:21:25.03] - Speaker 2
Okay.

[01:21:26.21] - Speaker 1
So that can kind of tell you not only the sentiment in the future because that 150 could just by looking at the, at the all expiration. And so this is spx, this could be also three months from now. Right. So that doesn't really tell you the real story behind it, but when you start going into the single expiration, you start seeing these numbers right here, then you can understand, okay, like there's a lot of bats that are actually coming this Friday. And the reason is obviously there's earnings on the 20 so a lot of people are trying to monetize and capitalize on the potential outcome.

[01:22:05.22] - Speaker 2
Yeah.

[01:22:10.09] - Speaker 1
Yeah.

[01:22:10.24] - Speaker 2
Okay. But maybe I say something stupid but the first expiration is 22. Okay. If you go down for a second I see 150. 150 in 2911 and one echo.

[01:22:37.13] - Speaker 1
Yes.

[01:22:37.28] - Speaker 2
135 in. In December. 20 December.

[01:22:42.17] - Speaker 1
Yeah. Okay.

[01:22:44.12] - Speaker 2
My feeling is it's a very very, very support 150. Probably a lot of. A lot of market maker. A lot of traders takes profit at 150 and then there are more probability than the price go. Go down. Maybe not in 135 because we have to to. To know the next earnings and the next news. I don't know. But now the position.

[01:23:21.07] - Speaker 3
It.

[01:23:22.03] - Speaker 2
It's clear I think about the market because there are 28.33% about Jacks expiring and you told me that it will.

[01:23:38.14] - Speaker 1
Be.

[01:23:40.20] - Speaker 2
A big number.

[01:23:42.11] - Speaker 1
Yeah, yeah. And also consider. Also try to understand Nick that December is also the end of the year. So always think in the head of like a fund manager where you are looking at calendar year and obviously the bonuses are paid based on the performance of the calendar year. So this kind of positioning on December is actually could be very significant because it could also be that this option had been open a while ago and now they are monetizing this because the. The price is maybe above this level. The. The spot price is right here. But this. There was a lot of bats, maybe even at the beginning of the year that for December the price of Nvidia would reach 135. And maybe now that the. The option are basically making money the market is really thinking man, maybe we could actually go to 150 by the end of the year. And that's for you see this big position still open right there. And then you see also like a very big bar right here at the 150 level.

[01:24:48.03] - Speaker 2
Okay.

[01:24:49.09] - Speaker 1
So yeah, so you always have to also look at who is the customer of a specific asset and what the impact could be like. When I say the customer I think about the S P500. The S P500 is, you know, how can you trade the S P500? You can buy option or sell option on SPX which is the index. You can buy the underlying ETF which is the spy or you can trade the future which is the. Yes, right. They all technically move in the same direction but they have three different option chains. And that's also very important because the customer of all these three assets is different when you look at SPY ETF most likely is going to be people like us that are putting their money into a 401k or into a pension fund. And they are really buying the ETF that follows the S P500 just because they want to follow the market. Right.

[01:25:49.23] - Speaker 3
Okay.

[01:25:50.05] - Speaker 1
Or it could also be asset managers that are buying the the S P500,500 and they just want to keep it there for a longer term period.

[01:25:57.29] - Speaker 2
Okay.

[01:25:58.19] - Speaker 1
Start seeing activity in the option market on the SPX or the es. That's when you want to pay attention. Because ES is where institution use to hedge. So like you hedge using futures, you hedge by using the underlying assets. So looking at those moves in the ES and SPX can also help you if you are having exposure on the underlying ETFs on the spy. And they all move in the same direction, but the option data is different for the three assets.

[01:26:29.26] - Speaker 2
Okay. Okay.

[01:26:39.14] - Speaker 3
All right.

[01:26:40.02] - Speaker 2
So I'm taking some notes.

[01:26:42.06] - Speaker 3
Perfect. And also Fabio was speaking about at the end of the year. So we have also to think about monthly, end of the month, end of the quarter and also about in index rebalancing. So if you're trading big, big players like Nvidia. What was happened with Nvidia? There was some news on Nvidia two weeks before Nvidia is turning the Dow Jones. What has happened if Nvidia is joining the Dow Jones? There's only one example. There's some ETF it calls the Diamond. So what's it technically doing? So they telling the ones who ex executing from the Dow Jones. So basically intel and they're buying shares from Nvidia. So rebalancing. So and also we have to think about when we're getting news like this, when some new ETF is coming or something like this. So that's for us a really good opportunities. So at the end as a retail. So what is our currency? Not money. Money is not our currency, Nicola. The only currency is volatility. So because what I was saying in the beginning we was refighting between the big institutionals, the big hedge funds and always when maybe some, some hedge funds fighting each other, then there, there's a big wave is going on.

[01:28:27.18] - Speaker 3
Then we're getting volatility because someone wants selling, someone buying. We're getting the volatility. Everything is nice. Or when some special events are happened, like what we have with the election, look what happens to the Bitcoin. Everything is flying to the moon. The market was going crazy. That's our events. So some, some big party Was battling on this because there was position himself before because they smart. And then that's the opportunities where we can make monies. But also remember Fabio, what was happened one week after the election. So we were staying in the range and then was coming and crush the party. This is also really important to understand who can influence the market at the moment. At the moment, I think we have two players to really big players who can influence the market. And the name of Donald Trump.

[01:29:34.14] - Speaker 2
And the other is Elon.

[01:29:36.28] - Speaker 3
No, Elon is the part of Donald Trump. So I call him Donald Trump with this. But the other one is. It's like Jerome Paul. It's the fat.

[01:29:46.14] - Speaker 1
Is the fat.

[01:29:47.04] - Speaker 2
Okay? Yes.

[01:29:48.07] - Speaker 3
So. And he was the. He was the. He was the one who brings the party down where we were starting from.

[01:29:55.27] - Speaker 1
Yeah, yeah.

[01:29:57.17] - Speaker 3
And that's our opportunities where we make our monies. It's not our opportunities when we stay in the noisy areas where we are nowhere. So. And that's so important to understand the cycle of the market. Let's go.

[01:30:16.19] - Speaker 1
If I can add to that, Patrick. So think about the world, right? Nick is interconnected, right? So something happens in Japan and suddenly we're gonna see an effect in the US Right? So how can you as a retail trader be able to process all those interconnected information? And the answer is very simple. Through the sentiment coming from the option market. Because when something happens, you will see option positioning changing very, very fast. And the reason is very simple. If you buy an option, you pay a premium. And if the option doesn't go into the money by expiration, you lose the money. The money's gone. So you are. You have like. You have like a time limit that you where you can use to exercise that option. So that's why, like, big funds are always like, rebalancing. They're always like, adjusting their call options, their put options. They're always like, you know, like. And basically, like, because you pay the premium and the premium is gone at the expiration. So if you buy shares of Apple, the price can go up and down, but you still own the shares, right? You still have an asset job, really, an insurance.

[01:31:28.16] - Speaker 1
So that premium is gone the moment that that expiration expires. And if, like the condition that you. You bought. So if you bought a call because you thought that the price would go up and the price doesn't go up, then your option does. Is not worth anything. So by looking at the shift in sentiment coming from the option market, then you can understand, even if you don't really know what's happening around the world or what's happening, you know, you haven't read the news or you haven't really been up being caught up in the events, you understand something is happening. Like somebody is buying a lot of protection on the S P 500. Why is that? Or somebody's buying.

[01:32:07.25] - Speaker 2
I have a stupid question, Fabio. Sorry. But if, if I am a retailer, okay, and I buy a call on Apple, I can sell the call before the expiration date or not?

[01:32:19.20] - Speaker 1
Yes, yes, you can sell it anytime.

[01:32:22.14] - Speaker 2
Anytime. Okay.

[01:32:23.11] - Speaker 3
Okay.

[01:32:24.11] - Speaker 1
But the problem with the call option, Nick, that, and we're going to talk about it tomorrow, is that when you buy a stock, you buy at this price and you know if the price goes up, you make money. If the price goes down with the option is a bit more complicated because you have different variables that affect the price of options. And those variables, the most important are the price of the underlying asset. So if Apple price goes up, then your call option will make money. The second variable that is very important is volatility. So let's imagine that you see this big move right here. And you buy a call option on Apple right here. Volatility behind this move is very strong. So you're buying a call option where there was a lot a big volatility. So you're paying a higher premium.

[01:33:18.00] - Speaker 2
Okay.

[01:33:18.19] - Speaker 1
Volatility has a big impact on the option price. Price kind of stays in a range. Then the volatility will decrease. And what happens to your option premium? The option premium is devalued even though your underlying price is still right here. So sometimes it could happen that you buy. And this is actually one of the biggest mistake of people that trade options that if you buy option when the implied volatility is very high, even if the price goes goes above your strike price, not necessarily you are making money. So sometimes. Why am I not making money on my option? Is really because of most likely volatility. And the third variable is time. So the more time passes for the expiration, the less chances you have that your option will make money. Yeah, so. So that's why when we go back to. And actually that's a good point. Let me actually open up this slide, right? Why does the core resistance become a reaction zone for a potential resistance? Why we call it a resistance? Because think about if you had bought a lot a call option on. In this case, we're looking at the NQ future.

[01:34:33.26] - Speaker 1
19, 000 is obviously an old level. But if you had bought a call option with a strike price of 19,000, right? And let's say that we were at this stage, we were 17,800. So let's say that the price moves from 17,800 to 19,000. Right. And you have a call option on that asset. What do you, what would you do, Nick, as an investor?

[01:35:05.24] - Speaker 2
I don't know.

[01:35:07.00] - Speaker 1
Would you keep the option, hoping that the price would go above 19, 000 or would you monetize the option?

[01:35:14.18] - Speaker 2
I monetize the option.

[01:35:16.01] - Speaker 1
Okay. And the reason is simple. Because that option can expire, right?

[01:35:20.06] - Speaker 2
Yeah.

[01:35:20.28] - Speaker 1
So the more time passes, the more your option price the values and the more less chances you have that you are going to make money from the option. So again, if we go back to our slide and let's go back here. So if you have a long call, right. On the other side, our market maker is shorter call. So in order to hedge as the price rise, they're buying the underlying. Right. So they've been buying the, the, the NQ in this case. And what happens if you then Nick, as an investor sell that call option? That means that the market maker doesn't need to hedge anymore. So they don't need to buy anymore. Because a lot of investors, what you do, so they are selling those options. So therefore what do they do? They sell, they close those long that they had. And therefore those areas right here where there's a lot of option exposure, a lot of gamma, they become reaction. Because as the market maker, then we go back to this slide. Actually, let me share this one. We go back to the slide right here where our core resistance become a strong level which is hard to breach just because of this, this market, you know, structure.

[01:36:51.08] - Speaker 2
Yes. Okay. Because they don't, they don't need to have a next move.

[01:37:01.10] - Speaker 1
Yeah. Because essentially what could happen is it could happen a few things. One is that investors like you think, I made my money, I don't want to have this option anymore because I may make, made maybe, maybe I made 20, maybe I made 30. Whatever the return is, I'm gonna close it because I have a time limit, you know, I have a time, a time bomb on that option. And therefore when I close the call option, the market makeup doesn't need to hedge because that call option is no longer there. So therefore before they were going long, now they are closing the long, so they are technically going short. And therefore they are selling a lot of liquidity there. And that's why the price kind of like drops right there. Yeah. Okay. Another would happen and let me see if I can find it here. I don't have in this slide another thing that could happen.

[01:38:05.03] - Speaker 3
But also Fabio.

[01:38:06.11] - Speaker 1
Yeah.

[01:38:06.26] - Speaker 3
I think when we're speaking about options and for a beginner trader there there are two points also really important. As options trader, you know exactly. Most of the time if you're not naked shorting, you know your risk. So basically you know exactly what you can lose. So that's the beauty on the options market. So if this doesn't work, you know exactly what what he was losing. So and also there's a big difference in options market if you be in European or if you be an American. So in the European so you have to take, if I remember, you have to take the expiration date and in America you can sell directly. So and that's also a part where we have to think about this is why we have daily expiration, we have weekly expiration, we have monthly expiration, we have different expirations. And and you should be also always be aware what expiration you you're looking for. It's the same like if you be in Day Trader on 0dte Trader if you be swing trading or if you be holding this for long. So in the graphic what you were showing, this was from summer this year, correct?

[01:39:24.24] - Speaker 3
Correct. Correct me if you're wrong. I think it was from summer this year.

[01:39:28.28] - Speaker 1
Yeah, yeah, yeah.

[01:39:30.22] - Speaker 3
So and, and think about where the market is now. So if you was having some, some option expiring in I don't know, two months, three months or four months. So when the market was recover it was making a huge of money with the options. So for, for this reason it's also really important to know if you're trading options, what options you're trading. You're trading zero dte. Then the today's gamma profile is really important for you. If you're trading maybe the weekly. So then I will say but this is only my experience. So then look day by day into the gamma profile. So how is the put support changing? How is the options magic changing? How is the one day max one day min changing? Is this more changing to the upside so bullish momentum or is this going to the downside bearish momentum and then follow this also the daily levels, how they developing time by time. We have now a really cool function on Mentor Q. So what is the function? If you go into your discord and you're looking for the gamma levels, you can now look back to the levels. So you can look back five days in a row to the level.

[01:40:47.06] - Speaker 3
So basically if you're using I don't know NQ or Apple or whatever is your. Your favorite. Fabio is showing this now. You can go back five days and. And what? Wait, can you go forward please? So what I'm technically meaning is so now let's take a look into the one day max. So the one day max is now at 23146 today or the day before. What was the day before? 230. 91. So it goes US$1 more to the upside. So we are on the bullish momentum because the one day max is going now up. And this is something where when if you're playing weekly options, you can look also daily into the options and move monitor how the levels are going. Is this more going more or everything to the upside or to the downside. And then we speak about this later. Connect this with the swing trading levels what we have for Mentor Q. But this is one key thing. This is why everyone should be monitored as how the levels are developing day by day by day.

[01:42:03.23] - Speaker 2
Yes. You know what I'm thinking about? About time. How many times I have every single day to to dedicate to trade. Because if I have. Yes, if I have an hour, but every single day I have to spend five minutes or 10 minutes to.

[01:42:27.21] - Speaker 3
To.

[01:42:27.29] - Speaker 2
Look up this data. Okay. But I have to do that for every trade I made on Monday. If I made in Monday. Okay. And think about if I have 10 trade. I have to repeat this type of looking for 10, 10 trade every single day. And it's a lot of time in in for me for my feeling I'm wasting time. Okay. For me because my concentration is not for this type of trade.

[01:43:03.03] - Speaker 3
Yeah, I understand. But let me give you some counter argument. Okay?

[01:43:06.29] - Speaker 2
Okay.

[01:43:08.26] - Speaker 3
When you have to do this and when you come back to mentor queue.

[01:43:13.23] - Speaker 2
Yeah.

[01:43:14.19] - Speaker 3
And you were looking into the data very closely when you will do this. If you feel pain, if you be in a draw zone, if your position is not working what you were thinking. But if your position is directly in the profit and printing money. So then you let it run. Maybe you you're looking maybe at the end of the day is there something big happen in the market? Is there a big, big shift? It's a big news. It's a big economic event is showing up tomorrow. Then you get prepared for the for the event. Like if for example would be tomorrow's cpi. I will very closely into the data. What will happen may be possible tomorrow where I have to be careful. But at the end, if you be in a profit position, you feel not pain. You have not to look Every day in the data. But if you want manage your position. You're thinking about as a stock trader. I want move now my stop loss a little bit higher. What could be now a possible stop loss target Where I was taking now some profits or should I working now with my take profit.

[01:44:27.27] - Speaker 3
Can I place my take profit a little bit higher? Because the sentiment is now mere to the upside. It's more bullish. Everything has changed now. This is something what you can do. But looking every day into this as a swing trader. If you feel the pain, let's go do it. Therefore mentor Q is really cool to help you to manage your position. So also you must also understand how mentor Q can help you Mentor Q I think personally mentored Q can help you to make better trading decisions. But if you be in the market you was making already a decision. But if you want correct your decision. Then you come back to mentor Q looking into the data what is changing and then you take action. Or if you look into your trade and you have now really good profits and you're thinking about taking partial profits and and you will save some profits. Then you came into mentor queue because you want now manage your trade again. You want to feel out now what could be a possible good area to taking partials. What I can expect tomorrow when I plan to taking some profits.

[01:45:45.15] - Speaker 3
This is not meaning in case of you that you have everyday time consuming like social media or TV or newspapers like oh man, I have to read everything today. I feel pressure. No, we are always be there. If you have the feeling you have to manage your. You need to manage your position. Now we are here. We're giving you on on a snipe all the tools that you need.

[01:46:11.08] - Speaker 1
Yeah.

[01:46:11.22] - Speaker 3
So. But. But if you're in a good feeling. If you be in a good position. Maybe there's no. No rush. There's no. No sentiment. But only thing what you have to do every time is maybe go to some tool like financial tools. It's complicated completely for fee. You get the headlines from the market. The head news and and going truth does this needs only five minutes. If you stay on stay on the traffic jam. If you be waiting for the cashier or something like this. Read quick the news so that you get an idea what's going on in the market. What's going on in the world. Because this can have some effect on your position. This is something what you should do every day. But mentor Q I will say Mentor Q is always there for you to help and to assist you to manage your position.

[01:47:05.29] - Speaker 2
Yes, Okay, I understand.

[01:47:09.00] - Speaker 3
Or what do you think, Fabio?

[01:47:11.02] - Speaker 1
No, I agree. It's. And then maybe like Nick, I can, I can share. Let me go right here. So I think we talked about a lot about gamma levels. Again, it really depends on the things that you are interested in. And we're going to try and discover that throughout the presentation. But we can provide you guidance or support, decision making support. If you trade any of these assets. And then for example, if you go into one of these, then you can also look at what type of trader you are. So if you are a swing trader, then you could use one of these models. If you're an option trader, you could use one of these models. So if you're a stock trader, you could use one of these ones. So really we can support whether you are a day trader, whether you are somebody that trades occasionally once a week, once a month, twice a month, and so on. But the important part is really that the whole information going back to the principle of why we build the company, there's a lot of data out there. So imagine that you're going on vacation and you come back and you want to like, get up to speed of what's happening in the market.

[01:48:31.02] - Speaker 1
Right. It might take you a long time to figure out, okay, what's the impact on the companies that I care about. But maybe you can come to mentor Q and you can immediately get an idea of like, like, oh, wow, everybody's like repositioning towards the downside, what's going on. And then you can kind of like go and read the news and go and read the research and understand why that is happening. But essentially the, the idea is really to give you like quick snapshot of like, where is the market thinking? What are the areas? What are the price levels and how can I now make my decision in less than five minutes a day?

[01:49:07.17] - Speaker 3
Yes.

[01:49:09.29] - Speaker 2
Yes, I understand. But okay, if, if we can talk.

[01:49:15.25] - Speaker 3
About maybe, but maybe we need some, some WhatsApp service so that you can take some alerts if, if something has happened. So you get directly in WhatsApp message. Maybe this will be a nice future for the, for the future. But we can discuss this maybe in the future. Get that all out if something has happened.

[01:49:35.28] - Speaker 1
Yeah. Come back from vacation.

[01:49:42.13] - Speaker 3
All right.

[01:49:44.22] - Speaker 1
Yeah. Like, do you have any questions? Nick, we talked a lot. I mean, we've. Yeah, we've already two hours. Do you have any things that maybe could be helpful to clarify or what's your feeling so far?

[01:49:59.23] - Speaker 2
My feeling is that you open my mind that I can take data for, give Me the glass, the glasses for watching something that I can understand before and with these glasses I can understand better. And this is my, my feeling now. Okay. I know there is a glasses and, and I can take it when I want. I don't understand at all all the, all the functionality of the market with the option but 60 I understand, I think maybe 70 but I have to, to study a little bit more. I. I see that we have and met and q have the academy and I think there are a lot of courses about option or about the market making makers or I don't know and I can see the courses of the video and for now I understand that the swing trading where I made a bet for a week. Okay. For now I think it's not for me and I explain why. Because I don't trust about market because I don't have the same routine day every single week. Because as an entrepreneur I have maybe I don't know, four hours to dedicated to trader on Monday and then next week is on Wednesday.

[01:51:51.09] - Speaker 2
And for seven days I cannot watch anything and I'm deep diving into my business and I cannot dedicate five minutes for the news or balance my investment. At the end of the day I have my mind full of our other stuff. Okay. But I have a lot of time once or two times a week because I take my time for that have four hour or three hour once a week or two, two weeks. And I need to control what I'm doing. Okay. I don't trust if I put in a system, an order and, or a bet or a trade and I see an exceed what, what's going on. Okay, I. I don't feel trust now.

[01:52:43.25] - Speaker 1
Okay, makes sense.

[01:52:47.25] - Speaker 3
I can give you some insight. So one good friend of mine who I know he's, he's also a hedge fund trader and, and we were speaking about our, our experience and we was changing our minds. We were saying hey man, if you can go back to the beginning with all your knowledge and you would be start from zero but with all your knowledge what you would be what you would be make better than what he was doing before. And we was both angry about something and this is really really interesting. He was saying don't, don't spend so much time on the market. Spend only the time in the market when there be events like when we have election, when we have Fed decisions, when we have earnings. So really only when the, the volatility comes in the market when we have opportunities. And the second thing where it was also boof is like if he Was making a really good trade. If he was making like for example, thousand US dollars profit what could be maybe a good big impact on your style or something like this. If you say man this was an amazing trade after this get out of the market for one full week minimum.

[01:54:11.15] - Speaker 3
Because otherwise you will lose your profit again because you're doing stupid decision because you feel comfortable. And then enjoy enjoy one week enjoy that you was doing really well. And then come back looking again for a really nice opportunity. And take own only the nice opportunity. Because most of the time what was happened with our our trading accounts. So we was making maybe a little. So where's my camera here? It was making like some good profits. A little bit lost a little bit profit. Good laws and a little bit profits. And then we having once a month or two a month we having a really good trade will push us to the next level. And then we was there. We was again taking losses profits, losses, profits. And then once, once a month there was already a big good trade boom will push us to the upside. And we were thinking about if we can relate all the noises where we was in the market where we was not not spending so much time with our family. Where we was not giving so much attention on our health because we can doing some other stuff.

[01:55:25.26] - Speaker 3
And what would be happened if we would be only show up when the good events were there. And if you look into our track records when it was making the big impacts on our on our trading accounts. And if you weren't only showing up there. So this was one of the big learnings where we was was angry if we would stay start again from from ground zero with all the knowledge you won't only show up if there's a big event and if he was making one good profit we will stay away minimum one full week from the market. No matter what is in the news. No matter. So because we we enjoying our life we relax because there's one thing what we should be always aware. There's always an opportunity in 10 years, in 20 years and 40 years in 50 years. The stock market will never die. So my grandfather was trading mainly on the stock market. My son will be later trading on on the stock market if I will be dying. The stock market is always there. There's always the opportunity. So and this is one of the good learning and I will I won't give you this this also if he was making a really good profit profit stay away from the market for this week and then come back next week and look for the good opportunities and Be only there.

[01:56:44.04] - Speaker 3
See this. So as an entrepreneur you have, you have a sure fix with your employees. So you have days with your employees. Good. Looking into the economic calendar maybe for the next month pick up when there's a cpi, when there's FOMC meeting, when there's some, I don't know, earnings or something like this. And then put this in your calendar and maybe that's the days or the days after the days where you should be coming to the market and you will get some moves.

[01:57:19.00] - Speaker 2
It's a super important advice because before talking with you guys, my plan it was exactly this. I don't realize that I need to say to choose the right moment when there, there are a big volatility or when there is a super big news. Okay, but now I have associated that. But in my plan before our talking is I want to dedicate four hour a week or three hour a week or six hour a week but at full power on my, my, my mind, full power or my body like, like a professional athlete. Okay. Because I have, I'm lucky enough to be able to choose the day when I, I can do a trade. Okay. I. I don't report to any type of manager. Okay. I'm by myself and I choose the right time.

[01:58:21.15] - Speaker 3
You have a manager?

[01:58:22.26] - Speaker 2
Yeah, my, my wife, yeah. My kids.

[01:58:28.02] - Speaker 3
And at the end your kids, man, they are really strong.

[01:58:30.26] - Speaker 2
Of course. I have three kids.

[01:58:32.14] - Speaker 3
You know, I give you one example. I was saying to my, to my son and I think two weeks ago man, I was like hey man, he was making today really good profit. And he was saying like this, oh papa, we can go shopping. Nice. So yeah, so basically he is a risk manager. If I would say Amen. Sorry we cannot go shopping anymore. I was taking so huge losses. So I think this month will be a bad month. You were crying. You were crying like a baby. So he's a, he's also a rich man. So yeah at the end we must always be. Be really careful. So if we come into the stock market we, we should be always be aware that we have to bring food on the table. So this is the number one. So don't spend money what you not have. So maybe if you be an adapt or if you have any issues in your private life with money. The trading is not, not the right part. I think go to Las Vegas and you have better opportunities. And yeah 100% because I was, I was meeting very, very talented traders and I was looking for some mentorship and advice.

[01:59:48.00] - Speaker 3
I was able to this. But what I was Realizing there was some people who was failing who was saying, who sent me a message Patrick, I give up. I cannot trade anymore. So and I was saying man, was this my fault or what was happened? Then I was realized when I was getting the message like this. This was always the people who were taking trading as his last chance because it was crazy in there. They have tax issues. They, they, they are bankrupty and they have only maybe the last 2,000 west dollars. And they think you know, paying I don't know thousand Western mentorship and trading with thousand and double the thousand like make 5,000 or something like this. But this doesn't work. Yeah. So for this reason. So if you have any issues, it's not. Not the right part. And, and I like what you were saying. So as entrepreneur, maybe you have money. And, and, and when we were speaking about the beginning. So we came now back to the beginning report risk management. What is your risk manager? Your family. Family always first. You were saying not 100%. If you have only thousand US dollars and you think you can make no time thousand.

[02:00:55.25] - Speaker 3
So this means 100% man. That's pure gambling. It's like flipping the coin go to the penny stocks. Maybe you're right, maybe you're wrong. So but if you're wrong, don't, don't cry like a baby. So yeah then it's like what I was saying. Go to Las Vegas could be much easier. So the chance that you, that you double your money is much higher than as in the stock market that you make on the same day 100 profit. So yeah this will be like, like. And then we were speaking about goal setting. You have also visions. So if you can come into this in the slot market. I'm 100 sure you have some vision. You know exactly what is your north light, what is your north star? You want you won't be maybe become professional. Maybe you will make some extra income from trading. Maybe you say okay, I like trading business because at the end what is the trading business? The trading business is giving us life. And I can say to you something. And this is what. This is something what I was learning when I, when I be. Since the moment I be in Dubai.

[02:02:06.01] - Speaker 3
So in Dubai we have many millionaires. I'm also millionaire, but off. But what is this meaning if we have capital? This only meaning we getting lifetime. So we have not to work anymore. We have enough money. Maybe we have now I will say 5, 10 years for good life where we can spend without any work, without any issues. We have 10 years to life so at the end we have lifetime. So what does this happen? So then you can go to Qatar. Qatar are the crazy billionaires. So they will, they will laugh about you 10 years lifetime as a billionaire you have the full life. You have never thinking about any money anymore about. And maybe then you go to Saudi Arabia where the king state are. So they were laughing about the Qatar is they saying. So we have, we have not seen any anymore about our, our kids. So the kids have nothing to work anymore. So they are really 100 secure. And this is one of our goals. So when we came to into trading we want having back our life, we want having back time. So not never thinking about in money.

[02:03:25.24] - Speaker 3
If you're thinking in money you're getting problems. So I'm coming into the trading world because I want, I want life, I want, I want time back. So if you're going into the nine to five what you're doing you change money to life. And, and you cannot die and you cannot living. But in trading we have the really nice opportunity. And this is why I was giving you the example and the advice before. You have maybe only show up only four times each month or three times each month. But in the three times in four months you can bring all the month from the, from the profits and you spent like 26 days. You have the best life ever in your life and have only show up four days, maybe two hours and you're making the full money. And why? And why? Because. Because some retail traders, to speak really harshly, they are stupid idiots in the, on, on the top of the top. Why they trading the noises. He was speaking about the noises. They're taking wins, they're taking losses. They're taking wins, they're taking losses. They up with the minds, they get depressed. I don't know.

[02:04:42.15] - Speaker 3
They're cheating everyone. They, they're jailing they idiots. But at the end they spend 26 days for maybe US$100 profit or US$100 loss or to be break even and losing lifetime. But they have also the same opportunities like us where they make this money. But they're showing up maybe only four times, three times, two times each month and that's it. And the other stupid idiots say they the gambling around the all other days because they're not understanding the principle of money is time, time is money.

[02:05:22.03] - Speaker 2
Yes, of course.

[02:05:23.16] - Speaker 1
Yeah. Going back to that nick, all you need is really a good setup for the time you trade. And one trade could actually mean all you need to do or maybe last. You know, like in the case Of Patrick, you're trading one minute, two minutes in and out. Maybe in your case might be an hour. But like one good setup could actually put you in a very good spot for the rest of the month. For the rest of. Yeah.

[02:05:48.26] - Speaker 2
Yes, of course. Now I spoiler my. My real goal in terms of money. Okay. It's not about money. In real is. I have a goal in Italy. I. I want to create a new school for. For kids for teaching entrepreneurship because Fabi, you know that. But there are no school that teaching entrepreneurship in, in Italy. No, not the degree, not the. The basic school. And I want to create it totally for free because there is no meritocracy to. To born in. In Italy, in Rome or in Sicily or or in Milan about your condition of family economic condition. And I want to give the possibility to all of the kids that wants to learn entrepreneurship only with his meritocracy. And I want to reach this couple of money at the time, tons of money over the millions of money for, for this project from my business in entrepreneurship and from trading because I have no pressure for my family because we are, we are. I've done this. I solved this before.

[02:07:18.21] - Speaker 1
Okay.

[02:07:19.20] - Speaker 2
I don't need money to, to eat. Okay.

[02:07:22.07] - Speaker 1
Yeah, makes sense. Do you have like a daily goal that you would like to materialize when with trading when you start. And obviously over time that that goal can increase or decrease based on the time that you want to put in. But like is there like a number that you have in your mind?

[02:07:43.23] - Speaker 2
Like I said, I have 20k for understand this market and I can lose every single penny of this 20k. But I have to understand my strategy for doing that in a professional way. And I don't want to set a limit that I reach 1,000 and okay. I want to set a limit on a number of trades because I, I don't want to feel bad or my mind think that can be a game. I want to, to trade maybe five trade a day or ten to trade a day or one trade a day. I don't know. I want to set a limit in a number of trades.

[02:08:41.17] - Speaker 1
Okay, makes sense. I think you're on mute.

[02:08:49.25] - Speaker 3
Oh yeah. Can I say something about this?

[02:08:52.23] - Speaker 2
Yeah.

[02:08:54.11] - Speaker 3
I don't like the gold. So and, and, and here's why. So because if you send set a limit to. To the goals maybe to limits of the trades you rob also your. Your opportunities. So maybe think about the market. You, you be now in the market and we are getting crazy sell off and it's not starting. But you. You say Only And I take only five trades so off. So there will be the point where you're breaking your rules and you should never breaking your rules. So maybe let's say about your goal should be taking one good trade based on your setup, what you really like to see.

[02:09:38.13] - Speaker 2
Okay.

[02:09:40.15] - Speaker 3
And then take again one good trade. And if you're not seeing any good trade, don't take it based on your rules. But if you see some really nice opportunity based on your rules, and this is one good trade, take it. So your goal should be like taking one good trade, review it. Taking one good trade, review it. And I like it. What you take. And after you review this, you're looking directly into this and see, okay, how I can become a better trader. What I was seeing how I can maybe I like my entries a little making a little bit better. And then next day or on the same day, you're doing again based on your rules, one good trade, but only based on your rules, what you really like to see. And then one good trade. And then you know exactly what doesn't work and what does not work. But maybe you have five or six one good trades on a one on one day because your up your. The day is perfect now for your setup. And you like really what you're seeing and you say, man, it's like a dream. It's like, holy.

[02:10:56.09] - Speaker 3
I take it. I take it. I take it. And then why you should limit yourself set maybe more the rules. Like, I'm taking one good trade based on my rules. I review this after. And if I see in the time where I'll be in the market and I see see one good trade opportunity, I take it. If I don't see something, I don't take it.

[02:11:20.24] - Speaker 2
Okay. Follow you. Sounds. Sounds good.

[02:11:25.23] - Speaker 3
Because you give you. Because you give you also a pressure and the pressure. What maybe new. Yes. Yes.

[02:11:32.13] - Speaker 2
Okay. Okay. Okay.

[02:11:34.11] - Speaker 3
Five trades. Oh, man. I'm being the market. I have to do something because I want making my five trades for today to learn something. Why. So if you don't see something.

[02:11:43.29] - Speaker 2
Yes, yes, you're right. Okay.

[02:11:45.24] - Speaker 3
One good trade. Boom.

[02:11:47.16] - Speaker 2
Okay, okay, you're right. I follow you. Okay.

[02:11:53.16] - Speaker 3
This is maybe what I would be.

[02:11:55.23] - Speaker 2
Yes, yes. It's more intelligent than my. My previous thought. Okay.

[02:12:02.26] - Speaker 3
This is same like a business guy. One good sales pitch and then again one good sales pitch.

[02:12:08.25] - Speaker 2
Yes.

[02:12:09.09] - Speaker 3
Maybe you get a no. You get to know. You get a no. So loss, loss, loss. But then you know exactly based on mathematically there will be the opportunity when you get it, when you get the deal. And then when you get this deal, you was learning from your losses because you get back to your mentor and speaking about your last trade, your last sales pitch, and you review this, and he gives you some ideas what he was doing wrong, what. What you can make maybe better. And then you become at the end, an expert. And after 100 times knocking on the door, boom. You need only maybe knocking on the door 20 times and then 10 times and then again, again, again.

[02:12:50.29] - Speaker 2
Yeah. Okay, Sounds good.

[02:12:54.18] - Speaker 3
All right.

[02:12:55.17] - Speaker 1
All right. So I think. Yes, I think that was clear, Mickey. So in the next session tomorrow, we're going to focus maybe on the asset that can allow you to trade the time that you have. We're going to look at some of the data that you can use for that time. We're going to look at different ways, different strategies that you can apply. We're going to talk about directional strategies. We're going to talk about maybe non directional strategies if you want to become a little bit more advanced. And then obviously, it's going to be on you to then choose which one is more fit for your goals and for your time. And then on the next section after that, we're going to then put everything into practice, so go live in the market and then start applying some of the things that you learn over these, like, three, four sessions that we have.

[02:13:49.24] - Speaker 2
Perfect. Okay.

[02:13:54.21] - Speaker 1
All right, awesome. Thank you. Thank you for your time. Thank you. Nick and I look forward to seeing you tomorrow.

[02:14:00.28] - Speaker 2
Thank you so much.

[02:14:02.16] - Speaker 3
Have a good one.

[02:14:03.09] - Speaker 2
Really appreciate your time. Thank you. Bye.