From 0 to Trader – Day 2

[00:00:02.17] - Speaker 1
Welcome back, guys. Welcome back. Patrick and Nick, good to see you again.

[00:00:08.00] - Speaker 2
Welcome, everyone.

[00:00:13.13] - Speaker 3
Hi. Hi, Fabio. Hi, Patrick. Thank you. So I'm ready today. I'm super ready.

[00:00:22.14] - Speaker 1
So yesterday was a great session. I think it was almost three hours or something. And again, Nick, we want to thank you for being part of this exercise where obviously we take someone like you that has kind of had experience with trading, but really not really active trading. And obviously now at this stage of your career, you want to really start to understand if you can actually be more active. And obviously, you have a successful career as an entrepreneur, and the money that obviously you generated from those ventures can. Can now be deployed for your kind of, well, management and trading as well. So yesterday, we learned a little bit about kind of, like your experience, a little bit about your goals for the futures. So just to recap for the people, for the audience that's gonna listen to this video, so basically, we showed you, like, what we can do and what mentor Q does, and we showed you, like, some example of strategies that can kind of help you and can kind of, like, help you be more active. But obviously, from what we understand from you from yesterday, you are not, like, able to be actively trading in the market every day.

[00:01:42.02] - Speaker 2
And.

[00:01:42.12] - Speaker 1
But you want to. You do want to dedicate a few days a week where you're going to spend a few hours in front of the screen. And obviously, you want to, like, understand the best options for you in that case. Is that correct, Mick?

[00:01:53.21] - Speaker 3
Yes, it's perfect. First of all, I want to thank you guys, because yesterday, for me, it was a super good session. I learned a lot of new things, and I want to thank you. Really, really thank you. And of course, for my career and for my time, I would like to deep dive into the intraday trading or directional operation, but I need to control them in all the time that I'm on the desk. And I can dedicate 4 hour or 5 hour or 6 hour in a day, but not every single day, maybe once or twice a week. And I won't try to learn this type of trading strategy. And Fabio, if you have any type of other suggestion or you. Patrick, of course, in. In option trading, I would like to hear your. Your advice, because. I think it. It's not my. Probably not my asset now to trade, but I would like to learn something more because maybe in a month or two months or a year, I want to change my strategy, and I would like to know something more now.

[00:03:27.15] - Speaker 1
Yeah, and I think that makes sense. It's always good to obviously keep an eye out for things that potentially could be of interest. Because if you have more time to learn in the future, option can really be like a very good tool for you. It's very flexible. We're going to show you. Like for example, with option, you can make money in every direction, depending on the strategy. You can also define your level of risk so you can know at the beginning how much you're going to lose, the maximum you can lose, and potentially how much you can make. So I think maybe, Patrick, what we do is, we do. My suggestion would be to start with obviously how you use the data for directional trade. And I'm going to pass it on to you for this. And then, and then maybe, Nick, we can show you some interesting models that we have for options trading that can help you even if you don't have a lot of time. So it really takes a few minutes. You can look at the data and then you can define your risk. And we're going to show you maybe some of the things that you can do.

[00:04:26.26] - Speaker 1
We have some backtesting results available as well. So I think that could be interesting. Let me know what you think.

[00:04:32.19] - Speaker 3
Yeah, perfect. Let's go.

[00:04:37.27] - Speaker 1
So, Patrick, I don't know if maybe I'll pass this on to you. And then we go into maybe like what we have and how to set up basically kind of like the setup and what kind of asset can be traded as well.

[00:04:54.21] - Speaker 2
All right, so I think before we go into shots, I think it's a little bit too early, but I want really to. To recap and to clarify how I'm doing this since 20 years. So I'm 20 years in the market, so. And also about my pitfall. So what was my big lessons? So I think it's really important if you be a new trader is if you're starting before you start with your trading and then you're looking into any shots, it's really important to understand what events we have. Look to the economic calendar, look to the earnings calendar. Is there something what can really push the market today? So as example, today we have some fat speakers, Fed speakers could be sometimes risky because they can speak about economy. Why, why I'm talking about this because think about. You see a really good trading opportunity and you push the button. And in the same moment, one minute later, there comes the fat speaker and all your setups are done. This is something what you're not want. So this is, this is where we, where we have to be aware of. And because I was missing this sometimes really hard because you have also family.

[00:06:17.16] - Speaker 2
I have family sometimes. We came into the market, we won't trade maybe for one hour. Really quick, quick in, quick out won't make our monies. But we are not, not really doing our morning preparation and we missed to see some events. And this is something what is really important. First to understand what events came. Also we have today Nvidia events. Nvidia earnings. So what is this meaning? So the market can be going a little bit crazy. It can be becoming a little bit volatility. And also it's really important to look into the newsletter from Mentor Q what we send out free to everyone. Fabio, I passed this really short to you because you know more about the newsletter and the content. Because today there was about the speech about the VIX expirations. Correct Meaning. So this is some, some. Some really nice information what we give you. And this cost only 5 minutes to read this. We have also the economic calendar there in the newsletter. And maybe Fabio, you can give some information about the structure and how to read the news that this is really important before you came to. Came to the market.

[00:07:33.24] - Speaker 2
It's. It's a morning preparation that you can start very well.

[00:07:39.05] - Speaker 1
Yeah. So the goal of the newsletter and this is free. You guys can sign up rejoin our mailing list is really to give you in less than five minutes a day, basically an understanding of the key themes in the market. So the first section would be the biggest themes like news, any news, event or any like event that could have an impact. And then obviously we have our own analysis. So today was VIX expiration. We show you what it is. We look at, you know, data. We look at SPX compared to the vix. This is very important understanding the level. We look at systematic funds. We also look at trade ideas and things that are coming and obviously key economic events and basically any events that we have. So newsletter very easy to read, takes less than three minutes a day and it's a good time, a good place to start the day. So very summarize things that you learn in the day. Very, very easy. So yeah, very, very, very simple. And yeah. And the goal is really to give you an idea. Okay. When you wake up, before you start, you already know what are the things that you want to look for and what are the potential risks that could arise for the day.

[00:08:50.14] - Speaker 1
So today, as Patrick mentioned, some big events, big earnings report. Yesterday we had target. Target is down, I think was down 17. Very important for the economy. Understanding the trends in those consumer company. So very, very important to understand.

[00:09:09.11] - Speaker 2
Yeah. And as I as I was thinking you, you. You're trading more like stocks, correct? You like stocks, you like ETFs. This is something where you feel good with. So I'm. I'm more an expert in, in futures. But that's not, not a problem because I'm also flexible like Mentor Q. And maybe Fabio, you can share your screen and can give Nicola an overview about our screeners option streamers. Because when we came into the market and we won't maybe only trade for a few minutes or a few few hours. So we need some trade ideas and how we can find trade ideas we have from Mentor Queue, our option screener. And there are a lot of opportunities we can now looking into with Mentor Queue and maybe can you go to the option screener on the mentor queue site? Fabio? Perfect. So first you have to sign up. You have then look into your mentor Queue dashboard and as you can see we have very well structured. So personally what I'm like it is the highest put open interest and maybe highest change in gags. So yeah, we can go, we can go first to open no matter what.

[00:10:32.10] - Speaker 2
Highest gag exchange. Perfect. So then of course we have Nvidia. Why we have Nvidia? Nothing crazy because we have earnings. And this is something what I would be now writing down because the screener is available so you and European. So it's in the morning. The screener is available for you but for the US People Eastern time. Fabio, when will this be typical updated by 7pm Eastern.

[00:11:01.10] - Speaker 1
So just after the market close.

[00:11:04.02] - Speaker 2
Perfect. So for this reason I would say let's pick for today to start five stocks or ETFs where we have really interesting Nvidia is number one. Okay, let's put this on our, our watch list. I make also some comments on my side so that we follow this later up. So we have Nvidia and then. Okay, let's scroll down. Is there something what could be also really taking our interest? Tesla. Tesla is also really good because it's going really crazy to the upside. Okay, let's take a look into Tesla and then I think let's check out also.

[00:11:47.13] - Speaker 1
Yeah, maybe, maybe Patrick, I can spend some time maybe like showing what these are just because maybe for Nick is the first time. So if we go back Nick to our discord, right. Yesterday we saw the. Our main chart, the net gamma exposure chart. So we try to explain obviously what this means. Right?

[00:12:09.09] - Speaker 3
Yeah.

[00:12:10.11] - Speaker 1
So the importance of this chart is not only what is the data from today. Right? Because here we see that is a similar picture from what we saw yesterday, we still have big 150 level. But it's very important to understand the change and to understand the change you can either go back in time and looking at if you can spot any areas that maybe have seen a reduction of negative Jacks or positive Jacks or you can also come into the matrix. So if we go into the matrix and we type Nvidia now also here you see that we have an increase in JAX of 178 million for all the exposure. So for the all option option chain. But 100 million of that was on Friday's expiration. So I think there was a lot of big bets that were placed yesterday on, on this, on the next expiration. So 100 million objects there. So again what does that tell you when you are like trading stocks is like okay, the sentiment in the market approaching the, the earnings is actually getting quite, quite bullish because we see an increase here. So by understanding that we can then go back to our screener and we have two types of screeners.

[00:13:35.06] - Speaker 1
One is the highest positive change in Jacks, meaning like companies that have seen an increase in cold Jacks or positive Jacks. But we also have the highest negative change in Jacks, meaning like companies have seen a decrease in positive Jacks and an increase in negative Jacks. So if we scroll down, as we can see we have our Nvidia here. So we see that 178 million right here we have our spy and SPX and then we have our Amazon. Our Google SoFi has been having like a really strong run over the last couple of weeks. So we see that obviously Palantir, if you guys follow the company is now like I think it's at $63. It was at 12 a year and a half ago. So really incredible performance. But we can do the same things on, on the downside. So if you are looking at more like a bearish kind of like ideas then obviously we have our Ford, our Alibaba, Nick, as we know.

[00:14:41.29] - Speaker 3
Yeah.

[00:14:43.12] - Speaker 1
Bank of America, intel and so on. So maybe like Patrick, I'll let you pick five, five of these.

[00:14:51.13] - Speaker 2
Yeah, but let us know. Stay on Tesla and because Tesla is really interesting and I think it's a really good example to learn how the levels are working because Tesla have a really good setup and everything is, everything is there. So do you want share or should I share?

[00:15:19.15] - Speaker 1
You can share, but again, yeah, that's fine.

[00:15:21.29] - Speaker 2
Okay, let's go. Here we go. Let me see if you can see this. Can you see my screen?

[00:15:43.26] - Speaker 3
Yeah.

[00:15:45.24] - Speaker 2
All right, so why I'm really liking Tesla. So first we were speaking about our levels yesterday we were speaking about call resistance. We were speaking about put support. We were speaking about about the gamma levels, how they are working as you remember when we were showing you the graphic. Also what we have on Mentor Q. Fabi will take a deep dive later about this. We have our five day swing trading levels and now we have a really good setup because I like for my trading style. We have now here the call resistance as you can see here. Yeah, we were speaking yesterday about what happens when we uncore resistance. And now we have also some risk trigger here from our swing trading models. See this as the moment essence, essence support and resistance line. We will go in few minutes deeper about what risk trigger meaning what upper band meaning and what lower band meaning only as information. So what we can do is now we can now connect the dots. We see call resistance and the risk trigger. We connect this together so that we make this area visible and also what we make visible based on yesterday.

[00:17:04.20] - Speaker 2
So let's connect this so and to find a really good opportunity for. For the daily ones based on our levels. So I will ask you now so how you would read this? What I was mapping out here? I was connecting the call resistance with the risk trigger and the risk trigger from here with the lowest candle here. So how you would read this? That's not my question to you.

[00:17:38.01] - Speaker 3
Yes, I try. When we go into the upper band. Okay. I think the market want to test the core resistance and the probability to an upper and I don't know, probability for an up. Yes, and the opposite.

[00:18:11.21] - Speaker 2
Okay, yeah, no worries. I will help you a little bit because English is not your. Your main language like my. It's the same. So we need, we need to help us second English speakers. So what I was meaning is like okay, we have now the risk trigger here. We have the call resistance here and we have the golden area. So I want to see first that Tesla will breaking this area with a strong volume, with a strong momentum and that the call resistance act as support so that that we squeeze the call resistance area so that we can maybe going higher or second one that when the market is open that we fail to break this area and we came down to the risk trigger where we are. And then we can maybe going into the golden area and testing this area again. So we have two options. We can say one good trade. Remember one good trade. We don't want to trade the middle. We want to wait only one good trade. So we want to see can we break out and then can we take out a breakout trade as I set up?

[00:19:24.01] - Speaker 2
Possible. But there's also some risk or is Tesla failing and we came to the downside. Personally I'm I would be more looking to the downside because I can manage my risk much better. So how we can manage our risk only as an example based on our mentor Q levels. So if I would now going into the market, I can place now my stop loss above the call resistance. So then I have a safety area and can maybe target with with partial profits the risk trigger and let other run maybe to the downside into the golden area and that's it. And I have a really good risk reward. The risk reward will well I think one to three or one to two and a half. So this will be good. This is, this is enough. This would be a really good move. So this is why I really like how Tesla is setting up today because we have the level. So I like to say to the people we have levels in play and this is something where we should should always looking into where we have levels in place. So this is why we have the levels.

[00:20:40.29] - Speaker 2
We want that, we want that the price is reaching some level and that we can see some reaction. And at the moment we are, we are on some level and on some zone that we can see some reaction. But maybe Fabio, you was making the presentation about the core resistance. Maybe given one minute overview. What is this meaning when we reaching call resistance? You're on mood.

[00:21:13.21] - Speaker 1
Let me just get a presentation one second. All right.

[00:21:28.13] - Speaker 2
All right.

[00:21:31.17] - Speaker 1
So what we have here Nick, is basically going back to our chart. The core resistance in our net gamma exposure chart is the level or the strike price with the highest green bar that you see there. And, and that is part of our primary levels. Right. And the reason why we call it a resistance is because if we scroll back and let me actually open up our documentation here. So if we look back at why is it the resistance. Let's go back to the point on what happens if a lot of people are buying call options. And on the other side you don't have a buyer or a seller and therefore there's a market maker in between. That is basically like taking a risk and providing you with, with, with a price so that you can execute your trade. But at the same time they're actually holding the risk in their portfolio. So think about the market maker is kind of like an investor. They have a portfolio, they have a book of business or a book of trade and that book kind of makes money or Loses money. So they need to hedge that book all the time.

[00:22:47.07] - Speaker 1
So if we are buying a call option, the market maker right here is short the call option. And in order to delta hedge they need to buy the underlying. So going back to our example of our core resistance, in this case right now going back, we're at, we are at 17, 881. This is a spot price. The core resistance is at 19, 000. So it's about, almost, almost 120, 130 points above the current level. So those calls right now, they are out of the money. Meaning that the chances of being in the money by expiration might be not as high because we're quite far away from this price. So the market maker doesn't have a lot of risk right now because the, the chances or the probability. And when we talk about option, Nick is always a probability game. So we're always is a mathematical formula. It's always probability of ending up in the money, probability of being exercised. And you will hear that word a lot. So the probability right now where we are with the, the price level right now, the probability of the price reaching this level might be not so high.

[00:24:03.08] - Speaker 1
Right? So the market maker does not have a lot of exposure there. So they don't need to because we.

[00:24:11.01] - Speaker 3
Are too far from the spot price.

[00:24:16.01] - Speaker 1
Give me one second.

[00:24:17.12] - Speaker 3
Yeah.

[00:24:33.19] - Speaker 1
Correct. And therefore basically, if a lot of people think that the price will go to this level, they might buy out of the money call option. The reason is very simple because the, the premium that you pay for those is much lower than if you were to buy like an, I don't know, 1800, 18, 200. Right. Where the price is right now. So if you think, and again, volatility is your currency. If you think that something is going to happen in the next few days, in the next few weeks and you think that the price will move very fast towards that level. Why would you want to pay a big premium when you can just buy an out of the money option and wait for the price to get there to make money. The downside of that is that the more time passes and if the price doesn't move, then that out of the money option might lose value very quickly. Because again, we are still far away from this price. Right? But then those become really interesting because if you have a very strong move and the option goes from out of the money to in the money or at the money, which is where our core resistance level is, then the market maker suddenly has a very, very big exposure on their book, on their portfolio because the probability of that option at that time when the price moves of expiring in the money are much higher.

[00:26:01.27] - Speaker 1
So they need to hedge more. And going back to our slide here, the more the price goes to that level, the more they have to buy, which is what you see right here of the underlying to be able to stay covered, so to be able to not risk. Right?

[00:26:19.10] - Speaker 3
Yeah.

[00:26:20.07] - Speaker 1
So then they start injecting liquidity, the price goes to that level. And then what happens when we get to our core resistance level? Right. Maybe like people think that the price can go much higher, but maybe a lot of people will think like, hey, I made my money, I'm going to get out, I'm going to close my call options and I made a great profit, I'm good, I don't want to risk it and I exercise my option, I sell it, I close it, and that's it. When you close that call option, the market maker does not need to keep the hedges in place anymore because the options are closed. So going back to our example, they were buying when the price was going up and now everybody's closing the options. So now they can kind of close those long, long trades that they have on the underlying with a short. So therefore they start selling. And that's why this level becomes a very important reaction zone because as the market closes the hedges, the price kind of drops. This scenario number one, scenario number two could be. And let's go back to the example of Nvidia.

[00:27:34.27] - Speaker 2
So let me, let me go to my shot before you explain what can happened. I think this, this would be now a really good example. So we are now hanging around on this area as I was saying. So we, we will see if the market will test us, if the market will fail the test, if the market will break out. But for you Nick, it's really important that you have an idea. If we breaking truth this so far we will explain what will happen when we're breaking call resistance, what we can target next and how mentor Q can help you to target our area. Because at the end, Nicola, you want also know as a trader where I can be possible taking profits, where would be a good idea to taking my profits. Correct?

[00:28:29.14] - Speaker 3
Yes, of course.

[00:28:30.27] - Speaker 2
So and for this reason we have a good solution for this. So we can now stream out a little bit and we can see if we're going higher. So this is our call resistance area. What we have as next areas, we have here our one day max Fabio will go into this a little bit later. What is one day max in detail. We have also enriched trigger level from our swing trading levels and we have here our call resistance UDT and gamma was udt.

[00:29:02.21] - Speaker 3
So can I make a. Can I ask a question?

[00:29:06.28] - Speaker 2
I didn't.

[00:29:07.29] - Speaker 3
I didn't understand. How can I judge the correct breakout of the core resistance the positive recap of the core resistance to achieve the next level and how can I judge? Maybe it's a false positive and he breaks the call resistance and now and then they. The. The next level is above.

[00:29:34.10] - Speaker 2
Yeah. So it's a really good, good question. So to answer this question in in a. In a good way, in a healthy way. So depend on your risk profile. So I'm I'm a trade. I can only speak for myself because I'm not a financial advisor to make it clear. So on my perspective of my trading style if I see that we're going with strong momentum, strong volume truth to call resistance and we see some follow truth. So then I will take the trade and will place my stop loss near the risk trigger level risk trigger 1115 as we see there will be my stop loss. If we're going to down. If. If we not holding this I will be out. So again so what I want to see I won't see that we're going with strong momentum, strong volume truth the call resistance area and we see some follow truth. And then I would trade the follow truth not the first candle when we're going through something. This could be a trap. So I don't want this. And also.

[00:30:49.05] - Speaker 3
Okay, you want to see that the the core resistance hold inside. Yes, I will I will see in more candle. Okay.

[00:30:59.17] - Speaker 2
Yes, I will see the follow truth. And on second we have also just to think about are we want to trade a breakout. As I said yesterday that's always a risk when we're taking some breakout because the call resistance is a really strong area. So did we want this or what what we what we want to see. There are also some people they want to see that we breaking truth to call resistance. And then we pull back to this area testing this area again. And then when we was testing the successful and and going back to the upside they will. They will take this. Let me. Let me draw this. So basically we have here now our candles. We have a strong strong momentum truth. This I would take this candle this candle and I won't take the follow truth. So this will be my follow truth candle. So I would going in here and replace my stop loss here. So this will be my number one. So and also I can't see what.

[00:32:08.21] - Speaker 3
What are you doing?

[00:32:11.10] - Speaker 2
Okay, then I give me one minute. Okay.

[00:32:22.16] - Speaker 3
Yeah.

[00:32:23.20] - Speaker 2
Now you can see.

[00:32:25.03] - Speaker 1
Yeah, yeah.

[00:32:26.23] - Speaker 2
This will be for me. If we see some candle like. Like what we see on the blue one. This would be a strong, strong bullish candle where we breaking the call resistance. This would be my sign. And then we're getting a follow truth. So technical. This will be my follow truth candle who I would like to trade and then see if we going straight to the upside to the next target. Boom. This would be my setup. And there are also other people who I really know that let's say doing this. Let me. Let me delete my. My drawings. Here we go. They like more to. To see and strong candle truth to call resistance. Maybe they see follow truth. But they won't wait that we come down again test this area. And then we he will trade this. So he. They will see first that we break this and then we came down and test this.

[00:33:29.03] - Speaker 3
Okay.

[00:33:30.16] - Speaker 2
So this would be someone what other people also doing. But as I was saying before and. And I'm lucky we was recording this. So the. The better option would be as I said based on the risk reward profile taking the short. And as you see, we are now live in the market. So here was our opportunity and it was a good play. So now we would be in the market here we have to follow truth candle. The same principle what we having on the upside. This is our first candle. We don't trade our first candle. It's trading only the follow truth. This candle, the other candle there would be our photo truth. I hope this makes sense.

[00:34:14.20] - Speaker 3
Yes, yes.

[00:34:16.03] - Speaker 2
And now we will. We will. We would make money simple and easy. So. But people giving me always shitload. Why I'm saying it's simple and easy. I say this because if you have the right tools on your hand, trading becomes simple and easy. The only one will make trading complicated is most of the time your brain and you. So. And why? Because you're looking to so many indicators. If you look into your shot, it's not clean. You're looking to so many other sources and not focus really on what matters. What matters for me is that we having our gamma levels. They are based on data we can trust the levels and then play around the levels. Design an own playbook. Like what I was saying to you. We want to see if we breaking truth this area then we taking the breakout or if we fail this area, we taking the short. This is now what happens. So. And this would be personally what I as a friendly advice, not financial Advice, trust the levels, trust the principle from mentor Q. And then you will. You will. You will have a better chance to make at the end of the year money as without.

[00:35:42.04] - Speaker 2
So that's my personal point of view, Fabio. I don't know how you see it. No.

[00:35:47.03] - Speaker 1
Yeah. I think the. The biggest thing, Nick, is like, Patrick, always say you need to find the winner trade. Like in this case, this one could have been a very interesting one where your risk is kind of limited, but your potential, like profit is kind of high. And you don't want to like, just trade because you have four hours and maybe like, you didn't trade for three hours because you didn't find. Find the right setup and you feel the pressure that, okay, I need to trade for the last hour. And then you end up choosing, like, wrong setups because you're pressured by time.

[00:36:21.04] - Speaker 3
Yes, yes.

[00:36:22.08] - Speaker 1
So I think the. The important part, I think the important key takeaway is that there will always be an opportunity. And the most successful people are the ones that maybe even like make trade boring, where they just have one trade a day. But that trade a day is actually the one that makes the difference, you know? Yeah, it's not your case, Patrick, but.

[00:36:47.17] - Speaker 2
Yeah, only one good trade. So. No, I have the same. I have the same thing in my mind. So for me, it's like one good trade. There's no matter if I. If I personally make 200 trades each day off, but I make 201 good trades. This is what matters. The other one make maybe only one or two one good trades. If they follow the rules and, and follow the playbook, follow the A plus setup. Everything is cool. Everything is fine. But as I say, so you should always looking for one good trade and then looking for the mental Q levels and find out what levels. And this is, this is really one big key. So. So take out the watch list, find some tickers, and then look what tickers are in play. What. Who are the gamma levels at the moment in the play? Because we don't want trade the commercial and the noises. We want only trade good trade ideas, good setups where we have a good risk reward profile. We don't want flip the coin. We don't want be the gambling mindset. It could be in this direction. It could be in this direction.

[00:37:58.24] - Speaker 2
So we want always having a really good risk reward.

[00:38:02.11] - Speaker 1
Yeah. And if you look at maybe if you want to draw that out. So I think that Trade is now $6 into from where it started. And I think your risk would have been around $3, maybe yes. Yeah. So right now Nick, basically you are risking $3 and now you're making 6. But potentially you still have maybe a room to go to the downside for another maybe how much is that to the next level, Patrick? I think it's another four to five dollars.

[00:38:37.29] - Speaker 2
Yes, correct. But there's also no. No shame. So. Because it could be also possible as you see the. The forming from. From the setup. So we can now be on a support and resistance area. So maybe you see this clearly on your eyes. So there's. There's also some support and resistance where we are now. So if you see that this. This trade will be against you. There's no shame to taking partial profits or taking profits because you have already an and risk reward from 1 to 2 and you and the money. Because there's something what people most misunderstanding in trading. And this is why they are failing on my. On my mind. So here, here's the key. So people saying very often don't trade the P L trade the market. I'm not 100 angry with this. Why? Because only losers will say this. Don't trade. Don't trade the PNL trade the market.

[00:39:42.01] - Speaker 3
It's.

[00:39:43.03] - Speaker 2
And now I tell you. So if you be now making in this trade only as example thousand US dollars profit. And now you see that Tesla is pulling back. Correct. Now you maybe have only from your thousand profit unrealized. Only let's say I don't know, US$600 unrealized profit. As a businessman from thousand to 600. We was losing already money. Correct. Because we losing now US$400 profit. Correct?

[00:40:28.12] - Speaker 3
Yeah.

[00:40:29.20] - Speaker 2
This would be the same like if we. If we're doing a drawdown. And here comes. Here comes the part where people making the mistake. So they, they, they. They come covering maybe when the trade is. Let's say they see it's. It's only US$300 in profit left because we cover and. And Tesla make what Tesla is doing. They're going crazy in the other side. So say against you. But you you are able to taking 300 profit. What the people saying? Yeah, I was making 300 US dollar on Tesla. I am a genius. I'm good. I will say you're idiot. Why because she was losing US$700. On your high you was able to make thousand US dollars but you were saying I don't like the thousand US dollars. I will hold this a little bit longer. And at the end you pay in 700 US dollar drawdown you get only 300. So this is why it's really important to understand have also some. Some clear target in the mind. So for me, my clear targets are always okay, 500,000 thousand 500, 2000. If I have a round number, what I'm doing, I'm taking my profits or I'm taking partial profits.

[00:41:48.19] - Speaker 2
Maybe I'm taking 80% of out of my profits or I'm taking out everything. Why? Because I can in. I can go into the market again. The market is always be there. But I was already losing my profits. So. And this is one of the. The key Principe what people should be understand. And as a new trader, this is, this is so important to understand. If you're losing unrealized profits, this is also some drawdown. This is the same if you will be losing 3500 with your stop loss. Or I'm right, Fabio, but I'm.

[00:42:26.27] - Speaker 1
I'm not.

[00:42:27.13] - Speaker 2
What do you think, Fabio?

[00:42:28.21] - Speaker 1
No, I think that's totally fair. Totally. Right. Because yeah, I mean, we talked about profit management. You know, risk management obviously is the most important. So not lose money. But then also managing your profit is very important because let's imagine that you have a good trade like this one where you're making a thousand dollars. Those 700 can offset your next trade if you are in a drawdown. So that. That like missed in profit could actually have helped you like maybe be in a positive situation. So I think yes, you're totally right. Butter.

[00:43:04.06] - Speaker 2
Yes.

[00:43:05.10] - Speaker 3
Don't be greedy.

[00:43:08.18] - Speaker 2
No, I. I think, I think yeah, don't be greedy. Yes. But what, what I'm doing is I hate this. So when people saying trade the market, not your P L. That's totally nonsense. So if I would be now in the trade in Tesla, I would not looking anymore in into the Tesla chart what's going on. I would only look to my P L Because if I see the rising on my P L 1000,100, 1200 and then my P L is dropping to thousands, then I become nervous and then I'm taking my profits because I don't want this. Because this is for me real money. Because at the end why I become so successful in trading is if I see that in my P L something goes completely wrong when I be in profit or something goes too fast. I losing too fast on my profits. I'm going out. And this is, this is one of the key why I'm be successful. I don't let the trade against me. I don't let rob my. My profits. And this is the same. So if you be in a losing Position. What? What. What. What do people saying when you be in a losing position, Cut your loses fast.

[00:44:24.20] - Speaker 2
That they don't against you. But the same is also if you be in a good profit. And you see that you're losing profit. Cut your loser this fast. Because if you're losing profit, you're losing also money. And you can ask your wife. Hey, do you want shopping with thousand US dollars or five hundred US dollars? If you can can do whatever you want. Of course I will say thousand US dollars. So it's the same in the market. So and this is something where we should be always aware and as I say and how you can be prepared. Nick. Nick.

[00:45:09.06] - Speaker 3
That.

[00:45:09.17] - Speaker 2
That you don't make any. So that you don't go again into the trade after you was taking some profits. So what what you what you should do after every trade. You should go in truth to trade. You should journal the trade and should first looking into it. What you was doing well and what you was not doing well. So if you. If you would not joining me this trade. Maybe I would make a screenshot. I would say okay, perfect. So call resistance and combination with swing trading level. If we have also some nice forming. This could be a really nice setup for. For later. I was trading this very well. I was managed my. My P and L. Well, everything is good. And you journal this the same would be if this trade will be not working. So then we. When then we should find out what was wrong what not and why. I tell you after every trade you should journal directly because this helps you for over trading for losing your profits or making more losses. Because what happens with most of most of the time with the traders. Maybe they're taking now now the profit from Tesla and they feel very good.

[00:46:24.02] - Speaker 2
And one minute later they will go again in a position from Tesla. Maybe they have one shot again. But now the market comes up. Now they are in a losing position. Now they're losing and then bombs they taking the losses. Says they get aggresive because they're losing profit. What's they doing after this? I see the market claims now down. I was right. I go again short. And then Tesla goes up again, robs again your profit. Then ah. Two times it goes up. I was short. Let's let's go. I'm going long. Let's go. And what was happened after this?

[00:46:57.05] - Speaker 3
Boom.

[00:46:58.01] - Speaker 2
Tesla goes extremely down. Exactly how you. Oh, I know this. I know this. And now you'll be in the drawdown. And because of Tesla was going down, you get FOMO and you're taking the short and you want not missing the party. And what is Tesla doing? Bye bye. We're going to the upside and at the end you're losing US$2,000.

[00:47:19.00] - Speaker 3
Yeah.

[00:47:19.29] - Speaker 2
So that's the normal day from. From I would say 80 of the traders. But how you can protect this on a neutral way. If you was making one trade, stop trading journal and think about what you was doing great, what I was doing wrong and how you can become better after this is done. Most of the time it takes, I don't know, two minutes, three minutes to journal. Really really well, then you come back to the market and then you're looking for for a new opportunity and that's it. One good trade. And don't doing the stupid thing. But most of the time people doing.

[00:48:00.02] - Speaker 3
Review every single trade. Take your time to reviewing yours every single trade.

[00:48:05.14] - Speaker 2
Yeah, because what they doing, they're making I don't know, 20 trades. And then after the 20 trades they review all 20 trades. But I think it's much better to review every single trade after he was taking a trade, review it because this stops for over trading. This helps you to not rewind to take any revenge trades. This is so powerful. And this helps you to not taking any stupid losses.

[00:48:34.28] - Speaker 3
I'm taking notes.

[00:48:37.15] - Speaker 2
That's good. And also we would not going in the market anymore. Why we don't want trade commercial and noises because we're now in the middle. There's no opportunity anymore for us to go into the market. Of course it can go now down, it can go up. But we can also flipping a coin and then let's see what happens. So we want only the good trades. We want only our A plus trades. We want that the levels are in play. And also we was making already money. And I can tell you what helps me as a trader to. To realize how much money I make. Let's think about maybe you make 100 US dollar on this trade to have only a small number. 100 US dollars, maybe that's 100 Euro. Let's make one to one in Italy, where you from? So how long have people working as a cashier for €100?

[00:49:45.11] - Speaker 3
There is no, no way to earn $100 for a cashier.

[00:49:52.08] - Speaker 2
Yes. No. How much hours they have to work?

[00:49:56.16] - Speaker 3
I think they say $10 per hour, 15 per hour.

[00:50:03.18] - Speaker 2
All right. So they have to work a full day. Yeah.

[00:50:07.04] - Speaker 3
Yes. Eight hour. It's a hundred euro.

[00:50:11.28] - Speaker 1
Yeah. So seven hours. So full day for €100? I guess. Yes. Yeah.

[00:50:17.03] - Speaker 2
For cashier. And we was doing this and maybe less than 15 minutes. So. And this helps me always to recognize how. How good I was. Because people. People becoming very often greedy. They think oh man, I was making only US$200, US$300 today, man. It's man, you can be proud of you as what I was saying in the first yesterday, we change money for time. We working for time. Other one have working for this a full day. And don't forget they have maybe always travel with train one hour again one hour. So they're losing the full day. But we come back, we are here only 15 minutes and making the same amount what the other one doing the whole day.

[00:51:13.05] - Speaker 3
Yeah.

[00:51:13.20] - Speaker 2
And if I know this, then I become really picky if I would be go again in the market or if I should do a trade or if I see only a really good opportunity where I say okay, let's go, let's do it again. Because anytime when I remember on. On the part how much money other people have to work for this what I was doing now then I become very calm with this.

[00:51:44.02] - Speaker 1
Does that make sense Nick, to you?

[00:51:46.02] - Speaker 3
Yes, of course. Remember how money, how. How is the real value of the money in my context? Of course.

[00:51:58.26] - Speaker 1
So think about.

[00:52:00.11] - Speaker 3
It's the rules of. Of life in general, but especially in trading.

[00:52:12.05] - Speaker 2
The same will be also if you're making thousand US dollars in one hour and maybe, I don't know, we're trading one hour into and we're making thousand US dollars, then I'm. Then I'm thinking also okay, I was not in the university. I was not making any, you know, not. Not good experience by the way. I was never working in my life. So I'm only a trader and doing what I really like. So I love to work with mentor Q. This is not work. This is, this is patient. I like it, I love it. There's no work. But I was not really working for money like this. Yeah. So if I was making thousand US dollars for example, in one hour. I think also about this. Okay, which guy could be possible make thousand US dollars in one hour? Maybe the. The bank manager or someone like this. Yeah. Or a pilot can make a pilot, thousand US dollars in one hour.

[00:53:11.08] - Speaker 1
Lawyer. Lawyer.

[00:53:12.24] - Speaker 2
Lawyer. Okay, a lawyer, good example. Lawyer is a perfect example. Then I think also a man crazy. How long have the lawyer to study, to work and everything like this to making thousand US dollars? Who maybe 20 years that he can have a salary for thousand US dollars. So. And then my question is always for the people who was thinking like they can make thousand US dollars in trading I think about allow a lawyer can make thousand, thousand US dollars in an hour. But, but you crazy guy, as a trader, think about how long he have to work for this.

[00:53:55.13] - Speaker 3
Yeah.

[00:53:56.09] - Speaker 2
How, how long he was studied to, to get this salary. And do you think the lawyer get every, every hour, thousand US dollars? No, only when he meet clients or something like this. He have also do paperwork and other stuff. So it's, it's the same like. But, but this is the cool thing in, in trading we, we can do as much we want. But the question is, did we have some system that we have an A set up in our bookmap and also can we have a system like what we augmented Q offer us where helps us to identify some key areas in the market where we can trade and maybe Fabio. Now I will pass this back to you.

[00:54:37.12] - Speaker 1
Yeah, absolutely. I think it's what you just said, Patrick, is very important because a lot of the, also the failed traders, they want to come and do trading and want to earn money straight away. Right? So they want, I want to make money, I wanna, I don't want to read, I don't wanna watch videos. That's another I think mistake because again, think about, you're learning a profession. So it's like going back to university, right? Trading is a profession that you can use for the rest of your life. And basically if you don't want to spend the time in learning, then obviously you're going to potentially fail because you're not going to understand how to handle situation where the next trade like this, how do you handle the emotion, how do you handle, how do you use the levels, how do you use the data, how do you behave? So I think investing time in the resources. And again, we have a lot of resources on the web website, we have a lot of videos. I think it's very key because again, if trading becomes your profession, you want to make sure that you have the right tools, the right knowledge, the right things.

[00:55:44.06] - Speaker 1
Like a footballer. Right. You know, if you want to be Cristiano Ronaldo, you need to have a team that works with you. And we're always going to speak about the team. And the team can become the levels, the team can become the data that you have in your child, but the team is also the knowledge that you have that can help you like react to situations. So I think it's very important.

[00:56:04.22] - Speaker 3
Yes.

[00:56:05.07] - Speaker 2
Yeah. And also, as I say, to remind always yourself first, when you be in profit, how much money you earn in trading compared to someone else, like US$100 could be the cashier, you can work one, one day for this to value the money, value the profits. What you make if it's only maybe small profits and you say oh man, I was making only 100 west dollars. The other guys, they're making thousand off. So you, you was now changing money versus time. You, you, you, you're making no money like what other people have to work one day for. So respect this. So this is the first key. Respect the money, respect the profit. Second, we were speaking about Cristiano Ronaldo. But, but Nicola, you're from Italy and I think in Italy we have a really crazy story. And, and not so many people knowing this. So Kobe Bryant was rising in, in Italy.

[00:57:04.10] - Speaker 3
Yeah.

[00:57:04.22] - Speaker 2
Near your hometown. Yeah. So it was near your hometown. Yeah.

[00:57:09.16] - Speaker 3
Yes.

[00:57:11.04] - Speaker 2
Yeah. Really crazy. I love the story. I was really shocked when I was heard about this. So. But what is Kobe Bryant doing? So he was, he was giving up his full childhood, his full huge. For what? To playing basketball. To be on the court, to be the best at he want. So basically giving up the childhood and then he become professional. So he has to give up something. He have to, to go out every single day. And at the end that from his childhood to become Kobe Bryant what he is. It was taking minimum 10 years. The lawyer that he made,000 US dollars. Minimum 10 years learning. And, and if you're asking me a question how fast you can make really good money and trading how fast it could be get until I can quit my job. Think about the profit professionals. I would say 10 years minimum so that you can, that you can say safe. Okay, goodbye. So. Yeah, so. And, and that's, that's, that, that's this. That's the same. And, and don't don't fall fall in any dreams. Don't fall in any traps where people are showing his Lambuchinos or, or the woman.

[00:58:38.20] - Speaker 2
So. And don't, don't, don't fall into fake gurus. There's a crazy story. There's a woman outside. I will not name it in the recording. I will not do it. But if he was Google the name you were seeing they came from some other world. So pornography. He's a pornography coach. Yeah. Really crazy. So. And then this pornography coach will tell you how to trade. Come on.

[00:59:08.05] - Speaker 3
She reinvented her life.

[00:59:13.14] - Speaker 2
So I will not going deeper in this. Otherwise it will be completely mess. Follow only. Follow only two traders who have a valid track record where they can approve that they. They are many years in the market. So they're trading real capital, not proper money. Or something like this and then learn only from these guys. Don't follow in the chop on YouTube or something like this. And I hate this. If I see the. The young boys like what are the young boys? So the 21s, 25 guys same. I. I should not be say something stupid but. But. But they are only maybe six years in the market and maybe they are only one year or two year really successful.

[01:00:04.13] - Speaker 1
Yes.

[01:00:04.27] - Speaker 2
Do you want really get into the bank where you have maybe 100k and there came some 26 year old old young boy and tell you how you should be invest your money. If you go to the bank 100% not you will be maybe speak to the senior who have some experience. And we should be always thinking about Trading is a dream world. But at the end trading is also a professional world. We're beating with the hedge funds, with the institutions and we should should treat this as professionals also we should not treat this like a dream world.

[01:00:44.12] - Speaker 3
Yes.

[01:00:46.22] - Speaker 1
Same thing.

[01:00:47.07] - Speaker 3
I agree.

[01:00:49.07] - Speaker 1
Now I leave it up to you. What do you think so far? Do you have any doubts, any questions?

[01:00:56.13] - Speaker 3
No. And I have time. I'm 40 and I have 10 years to to learn and to understand this work. I have no pressure. I have no rush. I don't want to rush. I don't pressure. I am.

[01:01:14.27] - Speaker 2
That's good. That's good. And also I think there are also some opportunities where we should be also aware. So what people often missing. So when we came to GameStop Fabio what was the reason why? Why, why why GameStop becomes so big and become a cinema?

[01:01:36.18] - Speaker 1
Yeah.

[01:01:37.01] - Speaker 2
Because everyone is joining the fun crazy gamestop and what we. What we're seeing today and. And I. I was not thinking about that. I will see this anytime. We have bitcoin. We. We are now on 94. 4 points. 94, 000 points. So there's a highly possibility it could be and that bitcoin can reach 100k. So this could be the magical for bitcoin. 100.

[01:02:10.17] - Speaker 3
Yeah.

[01:02:11.13] - Speaker 2
Many people thinking about bitcoin can be 100k. What we have also we having gold new all time highs all all time long. Boom, boom, boom. They're pushing gold like crazy. We have Nvidia. Everyone is speaking about Nvidia. And if we have some opportunity where people push push something where people speaking about and where people like going completely crazy. We find also opportunity in this. We will find a really nice opportunity in bitcoin. Not now, not going now in bitcoin. Maybe we're getting a really nice opportunity when we hit the 100k. Maybe we're getting a great sell off. Or we pushing like 110, 120. We're going crazy. It will never stop gold. Amazing how gold is working. But. But Nvidia today earnings. Maybe we see a nice sell off today. Because if we now going to to Nvidia. But I will not be a bear or I will not financial advice of course. But if we look into Nvidia, there's also something what I really like. Oh, what I was doing. Give me one second. Chart is loading. So let's go to a higher time frame. To the four hour time frame. And this is why I'm like by the way Mentor Q so well.

[01:03:35.08] - Speaker 2
And it's so helpful. All right. So first of all, let's take out the blind spots. So first of all we have here our mentor queue normal daily levels. We have the one day max, the one day mil. We have here the call resistance. But sometimes you have a really nice opportunity when you see how the levels are forming. So. And why is this so interesting on Nvidia today? I will tell you so sometimes, but only sometimes you're getting nice opportunities. You have your one day min. What we have below one day min. We have the high wall 0dte. Then we get the put support. And what we have below the put support, the high wall. So Fabio will be talking about this levels later. But if we breaking truth to one day min then we flipping into day or to the next day expiration from positive to negative gamma. Then we came to the put support. Fabi will speak about this also later. And then we came to the major high wall area. So where we flipping on the. On the. On the. On the time frames from. From. From negative, from from positive to negative.

[01:05:00.18] - Speaker 2
And then we getting a nice opportunity. Look how much space we have. Boom. This is something what I really like. This is something what we should fold. Here comes now our opportunity in the market. Boom. This is something what I wouldn't really like. But this is how you can play with the Mentor Q levels to see how the levels are forming. Not only what are the levels are, you must also understand what the how the levels are forming. We have 1d min. Below this we have the high wall 0dte level. Then the put support comes and we get again high wall area. So this means if we break into this. Wow. We're getting extremely, extremely price action. And then we can fill this area what I was mapping out here. And last but not least, this is not everything what Mentor Q can offer you. So then we have also our swing trading levels. Probably you will also speaking about this today very soon. So we have here our swing trading doubles. But then we have the same picture like here. So if we breaking through the lower band here, then we can also fill the gap here.

[01:06:19.20] - Speaker 2
And now, Fabio, why is this so critical to have the swing trading levels on the chart? Because we haven't success rate from our lower band. Probably will explain this later how. How we stay in the range from the lower band if we close above this. Correct, Fabio?

[01:06:44.28] - Speaker 1
Yeah, absolutely.

[01:06:46.18] - Speaker 2
So this can give us an idea if we can statistically breaking truth this if we fill the gap here like what. What I was really like to to get. Or is this maybe better to. To take the revenge trade so to taking here the trade and take the long here. So. But this is something what Fabio will be cover with you now, Nick, because this is really interesting. Nvidia is today extremely interesting because we have the levels there. We have also the swing trading levels there. And now the swing trading levels can help us to understand understand what trading strategy can be possible now successful.

[01:07:36.21] - Speaker 1
Yeah, that's. That's great partic. And that's a very good example. So, Nick, I think I'm gonna spend a few minutes just to explain again what this chart means and what the level that Patrick described also represent. And then we're gonna go into kind of like the swing levels. So what Patrick showed you is two main levels. The put support, which you see is this line in green, which is at the 100 level. But we also have the put support 0dte. So the put support 0dte is the put support for the next expiration. So if you remember at the beginning of the session, we talked about a lot of gamma went into this Friday's expiration. So that level is very, very important because there's a lot of options expiring on Friday. So the put support is really simply the. The highest bars. If we go back to our chart, let's actually go back to our multi expiry and we. We type in our NetJax multi expiry and we type in Nvidia. And the chart that we want to look is the first chart here on the left. This would be our put support zero DTE. The level that Patrick was showing you 135, which is the.

[01:08:55.04] - Speaker 1
The green line right here. And then also we have our highball level 0 DTE. So this would be the highball level just for this expiration, which is the 137. So there's like an interesting area There. And why is it interesting? Well, let's go back to what this represents. So the HIVAL level. And let me open up maybe another chart to show you better. It's really the area that defines the change in Gamma regime from positive to negative gamma. And then we're going to explain what it is. So if you see here the yellow line for from the time we go from green bars to red bars, this is kind of like a shift in gamma region. So below this level it means that the market is, is selling more option than buying. And above this level it means that the market is buying more option than selling. So if we go back to our presentation, why is that important? And even if you don't really understand option, Nick, it's very important because that can help you understand. Is it going to be a volatile day? So the moment you show up in the market, is it going to be volatile?

[01:10:09.20] - Speaker 1
Am I going to expect very big price swings or am I going to expect the market to kind of like stay in a range? And that's going to dictate the type of strategy that you want to do. Because maybe if you we are in a positive gum environment, maybe you want to trade with options, maybe you want to like collect premium. If you are in a negative gum environment, maybe you want to trade directionally because you can make very quick move very fast because the volatility is high. And the reason is very simple. When we are in long gamma. So when the market is buying more option than selling, the market makers on the other side have an exposure. And to hedge that exposure, they are buying when the price goes down and they sell when the price go up. So by doing that, that kind of stabilizes the market because the price go up, they sell, the price goes down, they buy. And that kind of like creates kind of like those range movement. On the other hand, as Patrick mentioned, let's imagine that we are in a negative environment. The market makers are selling when the price goes down and they buy when the price go up.

[01:11:13.07] - Speaker 1
So imagine the pro, the market is already going down and then you have the market maker that is accentuating the move as well. So that's why we see a lot of volatility. And this doesn't mean that, that the price will go down, meaning drop. It could also move from down to up, like we saw like a couple of days ago. So that's important for you because it would dictate your risk management. It would dictate when you want to take profit. It would dictate a lot of a Lot of things. A lot of like important things. Let me know if you have questions.

[01:11:48.16] - Speaker 3
Yeah, it's not totally clear for me this situation for understand whether I have to, to try and to test what, what you are.

[01:11:59.11] - Speaker 1
Yeah.

[01:12:00.03] - Speaker 3
Teaching to me because it's a lot of things in theory. Okay. But I have to realize in number what are you are saying now.

[01:12:13.09] - Speaker 1
Yep. Yeah. So it means basically like, and if we look, if we go back to the chart here, it means that this area right here, like what Patrick said, if we are breaking down this area after today. Right.

[01:12:29.24] - Speaker 3
Yeah.

[01:12:30.05] - Speaker 1
We are going in a negative gamma environment. Right. And we also don't have a lot of put activity right now. So maybe what's gonna happen as of tomorrow. We go back to our chart right here we have our Nvidia chart. There's not a lot of like put activity below this point. So overall the market is really very bullish on Nvidia in this case. Yeah, but what can happen if for example the earnings report are not positive? Right. So yeah, then we don't have a lot of protection right here. So a lot of like those calls will be closed potentially because they are going to be far out of the money and, and potentially a lot of investors are going to try and protect themselves for a potential downside. So then you're gonna see a lot of these red bar appearing as of maybe like the end of day tomorrow or the day after. And that's gonna have an impact on the price.

[01:13:24.05] - Speaker 3
So that's.

[01:13:24.22] - Speaker 1
Today is going to be a very, very interesting scenario. But on the other, on the other hand, what happens if we actually have really good results? Right. We, we talked about this yesterday. What if we break about this 150 level, right. We are $7 away from, from this. Like you have a very strong core resistance here. If the results are positive and there's a lot of momentum, we could potentially see a massive squeeze to the upside because. Because of the core resistance. So yeah, today very, very interesting.

[01:14:00.21] - Speaker 3
But.

[01:14:01.02] - Speaker 1
But then Nick, this brings us to then looking at other indications. So you are always trying to see. It's kind of like making a nice meal where you want to have ingredients and you want to add the ingredients to always make the meal better. So we look at like kind of like the daily setup, right. So we looked at our net gamma exposure for the day. But what if we want to look at. Okay, what is the market thinking five days from now, a month from now? Like are they still bullish? Bullish on Nvidia? Are they still like thinking that the price could rise. Right? So we have our string model and let me see if I have a slide here. So if we open up our string model, so we type in swing and we have a five days and 20 days. So the goal is to forecast the volatility or the areas where the price of Nvidia would be in five days from now or 20 days from now, and also the direction. So we, we want to try to tell you, okay, based on the option data and based on the algorithms that we develop, the price of Nvidia should be in this range over the next five days.

[01:15:07.22] - Speaker 1
And it should also be in a bullish or bearish kind of like trend. So if we open up our swing model five days and we type Nvidia, the first thing you notice is you have some green lines right there. So green band and then you have a white band. So the, the model is divided into three levels. And let me see if I can bring up. One second. Let me bring up my presentation. All right, so, so we have, so here you saw on the Nvidia case that we are, we have a lower band right there, but we could also have an upper band, which is a red line here. So obviously, very simple, green, bullish bias, red bearish bias. And then what you do have is every day you will have two levels, one upper band or one lower band. So one or the other, they will never be in the same day. And the upper band is really the, the level to the upside where the price of Nvidia should fall within the next five days. So in theory, the model should predict that the price will stay within that upper band and the risk trigger to the downside, okay, the lower band is the lower price, the lower level, where the price in the next five days or next 20 days should stay.

[01:16:49.15] - Speaker 1
And it also carries a bullish bias. And then on the other side, you have the risk trigger. And why do we call it the risk trigger? Because it's an upper band. So it's an upper level. So you always have two bands, the up band and the low band. But also we're trying to forecast the direction. So if we are very good at forecasting, forecasting that Nvidia or any company is in a bullish bias, that means that the price would potentially go up. And it could also be that the price would break this restrict level. And that could also bring an increased volatility if the trend persists. So that's why we use a risk trigger not as a directional, but more as a profit management or risk management.

[01:17:36.29] - Speaker 3
Okay. Where the price it go will go in risk trigger there there are more volatility, more volatility.

[01:17:46.25] - Speaker 1
And I would always use the upper band or lower band as my decision making tool. I would use the risk trigger as our profit target or stop loss target, for example, for.

[01:18:01.22] - Speaker 3
Right. Okay, okay.

[01:18:03.12] - Speaker 1
Okay. Then what do we give you in the model? In the model you also have the backtesting results, right? So in this case, this is the model from yesterday, which is valid from today for the next five days. Our lower band, again, remember that 135 put support IVO level. This is our lower band, right. 136.59. So if we go below this level, then maybe Nvidia is in trouble because the model is kind of in a bullish bias. But this is the lower, lower level. And then our risk trigger is that 157. So again, if we for example, breach that 150 level and we get to that 157, this could act as a resistance, but it could also become an inflection point because we saw that there's a strong core resistance level here and then we also have like some very big level. Right, right there. Okay, then why do you want to pay attention to this? Because of the backtesting results. Right. So here you see at the top, the upper band success rate. We never had an upper band. So we look at two months of data going back in time, there was never an upper band.

[01:19:26.14] - Speaker 1
There was always a lower band. So for the past two months, the bias for Nvidia has been bullish and you can see how the price went from 115 to almost 150. So the lower band was successful on 100 of those 38 days. That doesn't mean that you just buy and, and, and you just basically make money. Because in the case of here, if you look at here, if you just buy and the price drops, you're losing money, but the price is not really going below the lower band. So we're going to show you some example on how you can also make money using this data, using options. So, so the idea is really to give you a level of confidence where the price of the stock should be.

[01:20:15.17] - Speaker 3
Yes, okay, I understand.

[01:20:17.25] - Speaker 2
And let me, let me, let me make the bridge in an easy way between swing trading and day trading. Because you were saying you're more interesting in, in day trading. So when I was, remember yesterday. So, and let's come back to my Nvidia example. So we were saying we have there the lower band. So this is what I was saying. So attention on Nvidia we have now they are the lower band. So and for for day trader here comes a really cool and nice add on for you. Why Mentor Q is really helpful for you if you see a lower band or many lower bands on your chart below some area. So what is this meaning at the at first it's. It's only meaning support and resistance for us. So it's an area what is really important and based on data we have to check what the data is meaning. So then we can go now to the five day swing trading model and and look into this into our back testing results. So the lower band have a success rate from 100%. So and my question is now is there a big opportunity? So of course we have today earnings.

[01:21:49.26] - Speaker 2
Everything can happen in earnings. But if we have no earnings today, would there be a big opportunity that we going strong trade through the lower band with with an strong power? I will say based on our back testing results, no, but it everything can happen in trading Black swan event. Everything can show up, everything can happen but the opportunity or the favor is more in the direction that this could be possible not happened. And the short could be an interesting one. But maybe we have more to focus on a reservoir trade. So if we touching the lower band we should maybe going long and not thinking about to going short. So this is something really cool where Mentor Queue can help us as a day trader. And why is this really critical to have your swing trading levels on the shot and then work as a day trader with the swing trading models because you have the backtest results and they can give you a nice opportunity. If this is a really good opportunity for going long, is this a good opportunity for going short or not? Building trading ideas based on Mentor Q.

[01:23:06.29] - Speaker 1
Yeah, I know a good example is like look at what happened at the end of September, right? So obviously we were still in a bullish bias but the price kind of went down and really touched the during that day this lower band. So this was the candle for that day with the lower band from five days before. So here you touch the logos slightly below that level and then kind of closes above, right? So imagine how good of an opportunity this could have been. Not only if you want to keep the stock for that period but also for the day where you have a very strong candle that started negative where went all the way down below kind of like this area and then shoot all the way up right there. And then for the next couple of days the price went from 115 to 130. So like 1011 return over over three days. So really great, really great trade especially.

[01:24:04.01] - Speaker 2
For us day traders. This is exactly what I'm meaning for us if day traders if the swing trading models showing up intraday on our intraday charts. Holy. That's really amazing. This is why I was saying to you on the Tesla trade we have to risk trigger there. So we have to risk trigger and we have the call resistance. So there will be highly unlikely that we going through the risk trigger. So and we are also on the call resistance. So it could be a really nice opportunity for a short. And this is why I was saying I like more the short because first the risk reward is better and also we on call resistance and risk trigger. So and this is something how you can can work with the swing trading model and it can helps you. So we're not giving you trading signals from Mentor Q. But what we provide with you is data and we bring this down to a simple and easy way to understand. But you as a trader you have to use this and I hope this is now clear how you can use the swing trading model as a day trader and why you should use this.

[01:25:15.11] - Speaker 3
Okay. With the swing 5D I can see the trend and the level. Some of the bottom level and. And the upper level. Bottom level depends on the trend of course. And the the risk trigger mix the lower band mixed the. The. The dirty. It means. It means not something. If lower band is 136 and the the level show us from 0dte is the same. Okay. Okay. This is an area where. Okay, it's a testing area.

[01:26:21.11] - Speaker 1
Yeah. And I think you can explain this better. This is a confluence area. So you have confluence area.

[01:26:27.08] - Speaker 3
Yes.

[01:26:27.17] - Speaker 1
This is a multiple levels that are basically congesting in in the same area. Right. So again it's kind of like when you are trying to get confirmation from your trades. Now you have really important levels that are all in like a matter of like three dollars. This is like a three dollar range. So obviously very very big area kind of to break. You have the lower band, you have the ivor level, you have the put support. And always remember you know like when you think about zero dte, you also have to go back to when we were in our option screener and you can see like when we were before where there's a lot of like positive gamma that went there. Like a lot of like gamma that moved into that, into that expiration. So there's a lot of interest from the market in that particular exploration from Friday.

[01:27:21.08] - Speaker 2
So.

[01:27:22.09] - Speaker 1
So you want to monitor that because that's going to have a big effect on liquidity. Going back to this for example.

[01:27:30.26] - Speaker 2
Yes. And and I will share share with you my screen. Can you go to to my screen really quick? Fabio. There's also something what we should be also be aware so when we're speaking about the levels and this is why I I like this as a day trader to have my swing trading levels on on the shot. Because we have also to think about in which area the swing trading levels are placed. So we have here the lower band below in in the middle from high wall 0dte and put support 0dte. So this gives me more the opportunity so that this area where we where. Where we possible can can swift from from positive to negative is protecting shoot the lower bands. So it will be really hard to break through this area. Of course we have today earnings. Everything can happen but in a normal way. If I see something like this that we're in the middle from from high wall area. And the this could be a really nice reservoir trade based on the swing trading statistic. Because we was holding this 100 over 38 days. This is a really nice opportunity. And I will going back also really quick on my Tesla trading idea what I was sharing with you.

[01:29:02.12] - Speaker 2
So look at this. We were speaking about the golden areas and you can see this. So we was touching the golden area. So we was basically trading from risk trigger to risk trigger from golden area to golden area. And this is something what I really like. And and we're making good good money on this trade. So only as a only as idea and a small recap based on Tesla but on Nvidia it's always really interesting to understand where we are in which area we are and on how the levels are positioned. It's not only about the levels. You must understand and feel how the levels are positioning. So like one day max and below one day max is in high volume area or stay on call resistance area. Is there something matched together. Because then this area becomes much more interesting and much more powerful and we taking much more interest on this and and on this areas we can build also our trade ideas our one good trades. So for me if I would be going in Nvidia there's only one area where I will post personally going into Nvidia. And this is when Nvidia came possible down to the to the high wall area zero DTE area where we was before.

[01:30:33.28] - Speaker 2
Okay, I have the Tesla shot here. Let's switch back to Nvidia. No worries. So my my pot and Scale entry for a day trader would be if, if Nvidia came in in this area here. So let's map this out to make this visible. So in the area between here, this would be really interesting. And if I take out now my indicators so where's the middle line from the box? So the middle line would be here. So it would be for me interesting around the middle line to place maybe my resolver trade Possible we have an opportunity tomorrow when Nvidia earnings maybe are good. But the market is more thinking like okay, let's short Nvidia and then when the market is open we coming back. This could be a nice area where I'll be going into the trade. So this is how you can build also some trading strategies based on Mentor Q. So and this is something what you should do, you should use the levels not maybe to take some trades now. Because I have to trade as looking forward, looking for areas where you can maybe going in tomorrow, maybe the next day after tomorrow or maybe next week.

[01:31:57.28] - Speaker 2
Because maybe now this could be a really nice area. And maybe we don't come to this area, but maybe we come in this area in two weeks or maybe in three days. Then we have our trade idea because we was mapping this out before and now price came where we are. So we let. So this is why I was telling you a few minutes before I hate this when people saying we trading the market. We don't trade the p L not I not not not retrading the market. I let the market come to me. I'm not an idiot and doing what the market is doing. I let the market come to me. I waiting for my opportunities. Then market making what I want to do. So not the market making now the moves, the crazy moves. And if I'm watching this, I feel like FOMO and I have to do what the market wants for me, the market wants for me that I'm going now in the market, spend money in the market and everything like this. But I be cool. I let the market comes to me because I'm the king, I'm the boss.

[01:33:09.17] - Speaker 2
And let the market play what I want. If my play goes wrong, okay, perfect. But I, I have no, no, no FOMO to not going into the market because I want that the market comes in my favor what I want. And I give you one, one little example. Do you was in a casino in your life before Las Vegas? Okay, cool. Nice. So I hear we make it, we make it a really nice example. So if you're going maybe in a casino, do you See any windows?

[01:33:43.11] - Speaker 3
No.

[01:33:45.03] - Speaker 2
Okay. Do you see any clock?

[01:33:49.03] - Speaker 1
Is clock.

[01:33:52.29] - Speaker 3
Ah, clock, clock. No, no, no, of course not.

[01:33:55.24] - Speaker 2
No, of course not. And the temperature is really feels good. Yeah.

[01:34:00.22] - Speaker 3
Yes.

[01:34:02.19] - Speaker 2
No, it's perfect.

[01:34:04.14] - Speaker 3
It's perfect.

[01:34:05.16] - Speaker 2
And this, this is something what, what the casino wants. So they want that we lose the feeling of time. They want that we're losing the feeling of is this now night or is this day? They don't want that we now staying maybe six hours here. And also they want that we feel comfortable. We feel, we feel the temperature is good. And this is the same in the market. If you know watching Nvidia my shot for two hours I will promise you you will take a trade because you say oh now it looks good. I'm take it now. Why? Because the the market wants from us that we that we staying on the chart. We should always watch. And. And we get, we get Illinois. We're getting some hypnotics from. From the shards. Oh man. Now I get my opportunity. Nice. Take it. But if you define the rules, if you say okay, I want that the market came to this level and then I'm showing up. I set my all odds. So you have the opportunity on your charting software whatever you're using to setting alerts to get an information on your smartphone or on your desk when the price is reaching your area.

[01:35:18.19] - Speaker 2
What you're really interesting. And also you have mental cue the opportunities on trading view to set all that. So when. When this is touching. So at the end what I want telling you we don't play the casino game. The casino want that we don't know what has happened. So we can do like open the windows. We can having the Glocks. Everything is now shiny and fine, honey. And we can say okay, if it comes now to this area I be here. I will take my trade. And it's the same in the casinos. Think about if we now are going on daylight in the casino we feel more comfortable. But if we staying now 12 hours in the casino and we're thinking like oh, we're staying only for five minutes. So the time is going fast. We're making stupid mistakes because time is gone. We're going sleepy. We can hypnize everything, but now we can change the game. And this is the main difference between gambling and professional.

[01:36:18.15] - Speaker 3
Okay, then I can make my homework for tomorrow. I can. I had to to look at the screeners and choose three or four ticker. And after that I I have to private single for every single ticker. I have to look at the net jacks I have to look at that the swing 5 day and 20 day for for having an idea of the trend and and the price of the lower band or the the risk trigger. And after that I I choose my area. I have to choose my area of where. Where there is more opportunity.

[01:37:17.24] - Speaker 2
Yep.

[01:37:18.11] - Speaker 3
And if I I came tomorrow with my two ticket with two or three area we can test together if I have a good if I done it a good job or if I made a mistake. And after that we can try to to make an order or make a deal or try to to figure it out with with a strategy to make a deal.

[01:37:48.05] - Speaker 1
And before I think before we go and we're going to talk about it even today in the session later with Nvidia maybe like it's worth Nick if I show you some also back testing results so that you can be comfortable in what the data can provide. Because obviously if you don't understand how the option market work you're like why should I trust the data? So we are here very transparent to show you the importance of the backtesting and basically how you can find it, how you can play around with it. So first of all let's go back to our website. So here if you go back into your guide so within your account dashboard click in your guides and go humble products. And if you click on Swing trading model we have obviously the documentation on how the levels are calculated what levels are available, how to add the levels to training views to make tomorrow we can add them in the chart and we can go and look at the setup. But then we also have two back testing results and I'm going to show you a third one which is also very interesting.

[01:38:56.03] - Speaker 1
The first one was a back testing result that was done a couple of weeks ago. We have a video as well and the assumption was is always like we want to make it simple. So for somebody that comes in they they don't want like they want to really understand how to use it. So we look at the data from the weekend so the last data available from Friday and we trade at the open on Monday and we keep it either until the end of Friday or in this exercise was the day after earnings. So in this case was a back testing results done on a series of company was about 25 companies that were reporting earnings that week was Google Apple. Like a lot of those. And then we have different strategies. So one strategy is buying or selling the underlying so trading long or short. The second strategy would be using options. So if we look at and then obviously we can go through the. Through the details here we have our. Let's go back to our strategy. So the first strategy was that we trade so we take the levels from the Friday Friday was the 25th of October.

[01:40:09.03] - Speaker 1
We trade at the open of Monday. We go long if the bias of the. Of the swing model is is bullish and we go short if the bias of the swing model is bearish. Very simple. So long or short based on the bias at the open price. So we took the open price as a reference. We exit the day after the earnings. So in that week maybe one company reported on a Tuesday the other company reported on Wednesday. So we we exit at the, at the, at the open of the day after the earnings. The second strategy was closing at the end of the day after the earnings. So keeping the position all the way through the next day. And then also the there's other two strategy which, which is keeping the the position open until the Friday and and the next week. So the return here what we have for that week was strategy one return 2.8% with a win rate of 50%. Strategy two at a win rate of 54 2.14 return on your portfolio. Then we had our 1.9 return with a 41 win rate. And and the strategy four was actually an interesting one.

[01:41:27.25] - Speaker 1
7% return with a 66% win rate. Tomorrow maybe we're going to talk about how okay, this is interesting but you can see maybe the win rate is only 41%. So maybe like okay, like what else can I do with that? So the other option is to use the data and imply more like basic or semi advanced option strategies which is really selling options and selling spreads. So here what we see and we're going to go into more details tomorrow. What we do is if the bias is bearish from the swing model we sell a cold credit spreads and we're going to explain what this means tomorrow. If the bias bullish we sell a put credit spread. So it's another way of betting on the direction of the price price but pocketing the premium coming from the option. And and then basically if we look at in this case you can see that now our return is gone up 7.26 with a win rate of 87.5. And now we have for the second strategy which is holding the looking at the 20 day swing model we have a 2.86 return with a win rate of 75%.

[01:42:49.07] - Speaker 1
And this was during a very volatile week was probably the biggest earning week when Google and Apple reported. I want to show you another back testing result which we've done today for last week. So we're looking at the week of November 8th to November 15th. And we are taking 600 companies. So 600 companies. So it's a very, very big, large Companies, small companies, ETFs, you name it. We look at the bias coming from last the Friday. So Friday is 115 of November. And then we trade. Sorry, we trade at the open of. Sorry, Friday was the 8th of November and we trade at the open of the 11th and we closed at the close of the 15. So holding it for five days. First strategy, long, short. Second strategy is selling options. So going back to the results, we have a win rate of 49% if we just go long short and we assume that we make a $1,000 trade on every company. So we have 600 companies. So our total portfolio would be 600000 and our P L is about 1% 1.02. So $6,000 in a week annualize that return, it's probably around 50 something percent.

[01:44:19.29] - Speaker 1
But the, the interesting part is that by selling options we now have a win rate of 89.33%. So again, two different ways of trading. Maybe tomorrow we go into more details about both of them.

[01:44:38.14] - Speaker 3
Yes. Okay. There are, there is a lot of differences in win rate. Yeah, strong differences.

[01:44:50.04] - Speaker 1
Yeah, yeah, of course. And, and that's also like the beauty of options because like the difference. So when we look at buying or selling. So going long or short, think about the outcome when you start trading, right? So if we go back to our Nvidia chart, we have three possible outcome. And let me actually, so we have three possible outcome. We have the outcome that the price will go up. So like, like here and this is if we are in a long trade, you make money. We have the outcome that the price can go down and we're losing money. But we also have the outcome where the price can kind of stay in a range, right? So it doesn't really go anywhere. So in that example, you are potentially not making money. Maybe you are, or maybe you're losing money, but you're not, you're not making money. So you have one out of two scenario if you're long a company or shorter company of potentially making money. Again if the price moves. That's volatility. You can make really good returns. But with options you can actually make money even if the price stays in a range or even if the price kind of like goes even down.

[01:46:10.15] - Speaker 1
But you stay within a level that you, you, you place Your bets. So technically you could have maybe two out of three outcomes that are in your favor. And we're going to explain why tomorrow.

[01:46:23.11] - Speaker 3
Okay. I'm super curious.

[01:46:30.22] - Speaker 1
I don't know if you have anything to add. Patrick, any question for Nick?

[01:46:36.27] - Speaker 2
No, I think doing your job. So you get now some. Some nice ideas how you can find trade ideas. So be completely open. So we are tomorrow there. So work with mentor queue, do whatever you like. Take the screeners, find tradable ideas, look into the levels, go into the bot, look into the levels, play a little bit around and then find some nice areas, what you really like to trade. And when you come tomorrow, we speak about your areas. Maybe the market is not on the levels, but we can, we can speak about first about your stock picks. We can speak second about your levels, what you was mapping out. And. And so maybe we can trade some one good trade. It would be nice. But for now I think we we're staying here near two hours. In Germany, we have some rules. So don't eat a co. Eat a steak. So now it's time to think about what you was learning the last two days. Recap this for you today probably was to recap from yesterday. Your homework should be first. Okay. Find some area, find some setups, find some stocks. And also you should doing the recap from the last two days.

[01:47:53.19] - Speaker 2
What you was learning from the last two days. And now let's say we're making our break. We see us tomorrow.

[01:48:01.00] - Speaker 1
Yeah.

[01:48:01.12] - Speaker 2
And then let's see what you was learning and yeah. Let's go.

[01:48:07.17] - Speaker 1
Yeah, I'm ready.

[01:48:10.01] - Speaker 3
Tomorrow I. I show you that I. I can do my homework.

[01:48:14.23] - Speaker 2
I'm born ready. All right.

[01:48:18.11] - Speaker 1
Thank you. Thank you guys.