From 0 to Trader – Day 3

[00:00:02.10] - Speaker 1
Welcome back, Tim. Hi, Nick. Hi, Patrick.

[00:00:06.19] - Speaker 2
Hi, Fabio. Hi, Patrick. Welcome back.

[00:00:10.07] - Speaker 1
How was your evening, Nick?

[00:00:14.05] - Speaker 2
Tribal. Too much thought.

[00:00:18.29] - Speaker 1
We left you with some more to do. And yesterday, of course, we had very big event for the Nvidia earnings and I think we're gonna obviously comment about it. These are the levels from yesterday and this is the aftermarket. So we can see what we were describing in the session actually was a good area that made a lot of sense. We, we bounced off there and we went all the way up. But today, Nick, we're gonna go back to you and we would love to understand if you could summarize what you learned so far. And then we're gonna go into your analysis and then some see how if we can trade live today.

[00:01:00.09] - Speaker 2
Yes, I'm ready. I started to summarize what you teach me in these two days, in those two days. And I wrote nine golden rules. Mentor Q golden rules. 10 is missing. And I let you to write the 10. Okay. The first one is of course check the economic calendar every single day. Or, or maybe when you want to trade, you have at first check the economic calendar to identify eventually events that might to influence the market. Okay. Or the ticker that. That you want to trade or the asset that you want to trade. And. And this is the first rule. The second is. And that I made tomorrow this morning is to use the screeners in my Mentor Q profile, premium profile. Okay. Each morning when I want to operate to search the opportunities because there are too many information inside the screeners like the jacks or I watch the open interest and changes in open interest and identify where there are more volatility or more volume. And I used the call resistance and the put supports screeners for searching. The best sticker in my opinion to trade today. Okay. And I mixed that information to.

[00:02:46.25] - Speaker 2
To. To choose four ticker. And. And after that we speak about that. The third rule is, of course I. I said now search the opportunity on the screen. The fourth is choose the ticker. Okay. Choose the ticker after learn some information in the morning. In my morning. I'm in Italy now. And after that I analyzed the level on Mentor Cube on Discord and I used all the cubot command for searching some levels and to give me some information about the ticket that I chose before. Like I used the Swing 5D, I used the levels, I used the netjacks, I used the matrix, I used 5 or 6 command in QBOT only to search the area. And this is the key role. After you choose the ticker, you have to choose the area of your potential operation before the strategy, okay. And after that, when I choose the area, I, I put that in, in my training view and I can show you. I, I thought, I think about the strategy about this type of area. Not the same strategy, but different strategies in based on the era that I choose or that I, I see there could be a lot of potential.

[00:04:34.24] - Speaker 2
And when I, I do that, the 7 rule is to set my goal. What is a goal? A day goal, a daily goal for the trade. Now in my case today, it's like you said, Patrick before, choose Rich. Achieve one single good trade. Okay. Where I can learn something about after that. The, the, the. The next rule is follow the rules, okay. I spend a lot of time to take a strategy, to take and to get some information. And now I have to follow my rules, okay. Like a military guy. And nine is, remember the true value of money. Because we have to keeping this in mind always for helping as in management, risk and review every single trade each, each trade to understand what I, what I did well and, or what I did wrong. Okay. And those are my nine rules that I, I understand thanks to you and, and your lesson in, in these two days.

[00:06:11.18] - Speaker 3
That's amazing.

[00:06:12.21] - Speaker 2
And 10 is missing.

[00:06:14.07] - Speaker 3
10 is easy because everyone is missing number 10. And we speak about this every single day, Fabio. It's amazing how everyone is, is missing. This 10 is trust the levels.

[00:06:27.17] - Speaker 2
Trust level.

[00:06:28.08] - Speaker 3
Yes, Trust the process. Trust the levels. So trust your process first so that you grow as a trader day by day where you be in the market and then learn and understand the levels and, and trust the levels. So that's number 10.

[00:06:45.24] - Speaker 2
Perfect. What do you think, Fabio?

[00:06:47.22] - Speaker 1
And rinse and repeat. I think yes. Always follow the same steps. So never, never kind of follow the rules and keep to those rules and always apply the same rule for the next time. The next.

[00:07:03.02] - Speaker 3
Yes, that's correct.

[00:07:07.19] - Speaker 1
That was great, Nick. Like, well done. And you know, like, obviously, I know you worked all morning to look through all of this and I think you're ready. So we would love to see what you, what you were able to find with the things obviously you explained and then your step process on today.

[00:07:27.29] - Speaker 2
Okay. If you, if you want, I can show my desk. Okay. I can share.

[00:07:41.28] - Speaker 1
Yep.

[00:07:49.25] - Speaker 2
Not Streamyard. This. Okay. You can see.

[00:07:57.04] - Speaker 1
Yep.

[00:07:58.19] - Speaker 2
Okay. First of all, I came here to, to look at the screener. I came into higher change in Jackson. Maybe I can zoom in. Okay. And, and in negative jacks. And I did that I order by market cap because yes, I know the, the big amount is the first Nicola. Okay but I I would like to trade some ticker that I I know before or some that me feels good like the tech the tech business in general because I'm a businessman in tech in tech market and I saw that Nvidia have a highest a good amount of negative gamma and AMD because why I choose AMD because in in my past I took a stock and I invest in a stock in AMD and I I know the the fundamental pretty well okay And I would like it and I choose this too for the high is negative volatility get exchange after that I went to put support and co resistance creamer to do the same thing and I ordered by market cap and I noticed that now I don't know what is now but the the market cap is 171 billion and the distance from the put support is nearly and I choose that to analyze and I choose another one booking booking holdings because I know booking.

[00:10:05.04] - Speaker 2
Yeah okay I do this I did the same to co resistance and I choose Adobe and Disney in particular Disney because I I I check the high change jacks the highest change X and it's almost here here that it means maybe low volatility or or positive gamma.

[00:10:42.22] - Speaker 1
Okay.

[00:10:46.03] - Speaker 2
So I have 1, 2, 3, 4, 5 and 6 ticker I explode that with the with mentor queue with the the command in discord I explode the netjacks I explode the swing 5d I explore the swing 20d I explode a lot of command and I put all the level and all my consideration here. Of course you can interrupt me for for asking me some question but.

[00:11:24.15] - Speaker 1
For.

[00:11:24.24] - Speaker 2
Example this is Nvidia okay. This is Nvidia I I choose the the white car because it feels me comfortable than the the black and I said this with the area of potential opportunity and that area of potential opportunity because here there are a lot of levels and of course I have to trust the levels that it means here could be potential opportunity important opportunity and that in pre market the price is upper is 149 that it means we are very very very close to core resistance the relative okay and maybe we can try to think to a strategy I'm the the same thing.

[00:12:43.13] - Speaker 1
Yes Very very very easy way to see also like the pre market price if you look at the bottom right of the chart where you have the RTH next on the left. Left a little bit left. Yeah There you can click on extended. Okay and then you can also see the pre market prices as well. Okay so you can monitor.

[00:13:10.10] - Speaker 2
Yeah thank you. I don't something new every single minute.

[00:13:18.29] - Speaker 1
That's why we're here for.

[00:13:21.04] - Speaker 2
Yeah. And I took only two levels from the swing 5D, the risk trigger 1114 and the risk even 1120. And I canceled the other because I want to see the trend of the upper bound or the risk trigger in a spam frame of five days and not every single day because there are two noise in graphs, in my opinion. And I do that in all the tickers. And those are. Okay, those are the area one and two, because I was here, I came back to rth and those are the area to do something. Adobe the same thing, those two area. And Disney, this is a pretty cool area because there is also a lower band and the market test this type of level three times before. This is interesting. And Disney, Because there is a cool area here. This area. Okay. And so the last one is now my reader know what they do, but this is the area that I would like to try some strategy or to think some strategy. And we are close to that. Okay, this. This is what I done this morning. Now I. I want to ask you if I made some mistakes or to complete my thought, because of course I forgive something.

[00:15:35.02] - Speaker 2
And. And you would like to try a strategy to think in a strategy.

[00:15:44.29] - Speaker 3
Okay, Fabio, go ahead. And then I will go.

[00:15:48.27] - Speaker 1
I mean, I think what you did is really impressive. What you've done there. You already basically kind of like use the approach that Patrick always use, which is really defining your roadmap. So you started obviously you started from analyzing some of the models, so the net gamma exposure, the swing model. And obviously then you were able to apply the levels on the chart and then define your trading plan. So I think. Yeah, I think that makes a lot of sense. And I think you did a great job, Nick.

[00:16:25.22] - Speaker 2
Thank you.

[00:16:29.15] - Speaker 1
What do you think, Patrick?

[00:16:33.03] - Speaker 3
So what I see first is that you have delayed data on your. On your watch list. So you have there the ndx. Do you see this in your watch list? The ndx.

[00:16:45.11] - Speaker 2
Yes.

[00:16:46.24] - Speaker 3
Okay, take it out, take it out.

[00:16:49.06] - Speaker 2
Okay.

[00:16:50.14] - Speaker 3
And then go into your. And the X. A simple way you can put in the symbols. Oh, it's on the left side corner on the top.

[00:17:02.10] - Speaker 2
And the X. Where. Okay, at the top.

[00:17:06.05] - Speaker 3
Okay, yeah, there. And then type also ndx. But go in the. Go in the sector indices. Oh, in the indices.

[00:17:17.28] - Speaker 2
Sector indices. Okay.

[00:17:20.21] - Speaker 3
All sources. Oh, ah. Because you have your interactive broker connected. Okay, so. Oh, I understand. Okay. Yeah. Then type in. I will, I will, I will type in the QQQ because it's much Easier to understand type in the qqq.

[00:17:38.07] - Speaker 2
Okay.

[00:17:40.05] - Speaker 3
Oh, then we have to go to all. Okay. Choose the qqq.

[00:17:45.29] - Speaker 2
The first one.

[00:17:47.03] - Speaker 3
Yes.

[00:17:48.09] - Speaker 2
Okay.

[00:17:49.18] - Speaker 3
And then you can add this to your watch list.

[00:17:52.14] - Speaker 2
Yes.

[00:17:54.24] - Speaker 3
Why I would say the QQQ is easier to understand. So I'm a, I'm a lazy, I'm a lazy trader. So for me it's easy to understand. So we have round numbers 590s, 503. So for me it's much easier as like 5,900, 5,950, 20,000, 120,000. My, my brain goes completely crazy when I have big numbers. So on the small numbers for me it's much easier to understand what's going on with the market. And if you don't want trade indices and you want trade stocks, I would say the ETFs should be your leader so that you get feeling what's going on in the market. And also I will also adding the Magnificent seven always to your watch list. So the Magnificent seven are the top seven leaders from the market. Who are the Magnificent seven? He was picking one. This is Nvidia.

[00:18:51.29] - Speaker 2
But we have Apple, Meta, Apple, Microsoft, Google and company.

[00:18:57.19] - Speaker 3
Yeah, exactly. Because that's a debrief from the market. So if they performing very well then most of the time the market perform also very well. And also you can really see very fast if someone is going crazy from them. Like for example, maybe we see an big Spike on Nvidia today. 10 5% to the upside. Or we see a big down move from, from Tesla minus 10% or something like this. I don't know something can be really happened for this reason. I would really like to have the Magnificent seven on the watch list to set this up.

[00:19:37.18] - Speaker 2
Okay, perfect.

[00:19:38.09] - Speaker 3
You get it.

[00:19:39.06] - Speaker 2
So that I miss 1. 1, 2, 3, 4, 5, 6.

[00:19:43.05] - Speaker 3
And the 7 is meta, apple, Google.

[00:19:48.24] - Speaker 2
Amazon, Amazon, Amazon. Okay, Play section MIC seven. Okay. Okay.

[00:20:07.22] - Speaker 3
So then you have directly an. An idea when someone goes crazy from the big ones.

[00:20:13.24] - Speaker 2
So this is really important.

[00:20:16.01] - Speaker 3
And the next thing, what is also really important as a stock trade. I think you should be taking an advantage of this because we have at the moment two crisis in the world. So we have the Middle east conflict. What is really bad by the way. And also we have to find on Russian conflict was also really bad for this reason I would also add the U and. And gold on your shot. Okay, so this is XTE USD. Let's see, E USD. No, only xte. So ev. Italian.

[00:20:59.25] - Speaker 2
Okay.

[00:21:01.11] - Speaker 3
And then USD.

[00:21:03.23] - Speaker 2
USD.

[00:21:06.05] - Speaker 3
Okay. So probably do you have Any idea what's the ticker for Gold in interactive Brokers and gz maybe.

[00:21:15.18] - Speaker 1
I think the ticker should be the same.

[00:21:17.03] - Speaker 2
No.

[00:21:21.03] - Speaker 3
Make, make, show X A.

[00:21:24.08] - Speaker 1
You xau A for alpha.

[00:21:29.10] - Speaker 2
Yeah, the first one.

[00:21:34.23] - Speaker 1
Type in USD as well. Sour USD.

[00:21:39.26] - Speaker 2
USD.

[00:21:43.07] - Speaker 1
Okay. You can maybe. I mean, we could use the future, I guess. Patrick.

[00:21:53.20] - Speaker 3
Yeah. Okay. Gz.

[00:21:55.01] - Speaker 2
Gc.

[00:21:59.01] - Speaker 3
Gz. Yeah.

[00:22:01.08] - Speaker 2
Okay. This. Yeah. Zc1.

[00:22:05.01] - Speaker 3
Yeah, you can use gc1. It's. It's okay.

[00:22:07.01] - Speaker 2
Okay.

[00:22:08.14] - Speaker 3
And then also cl.

[00:22:15.20] - Speaker 2
Yes.cl1.

[00:22:19.22] - Speaker 3
Yeah, you can use this.

[00:22:20.20] - Speaker 2
Okay.

[00:22:22.16] - Speaker 3
All right.

[00:22:24.09] - Speaker 2
Okay. Because one is the next expiration date.

[00:22:27.22] - Speaker 3
Yes, Correct.

[00:22:28.17] - Speaker 2
Okay.

[00:22:28.28] - Speaker 3
And then you can delay the SPX from your watch list.

[00:22:32.21] - Speaker 2
I can delete.

[00:22:34.02] - Speaker 3
Yes.

[00:22:34.26] - Speaker 2
Okay.

[00:22:35.17] - Speaker 3
And add also the wix. Oh, I hope you have the wix.

[00:22:40.04] - Speaker 2
Okay. Yeah.

[00:22:47.09] - Speaker 3
Oh, no, no, not. No, no, they are different. Should we use the vixie? Fabio, the etf? Yeah, the WIXIE is the best one.

[00:22:57.06] - Speaker 2
Yeah.

[00:22:57.15] - Speaker 3
If you not have the WIX as the first one. Yeah, the wix. Yes.

[00:23:06.27] - Speaker 2
Okay.

[00:23:09.09] - Speaker 3
Okay. Put this on the top.

[00:23:11.16] - Speaker 2
Okay.

[00:23:12.27] - Speaker 3
On the top. So then let's. Let's talk about this before the market is open, by the way, already. But I will explain you your watch list. So now you can see the vix. So the ETF the week, see. So you can see how the volatility is going into the market. You can monitor this. I will explain this later a little bit. Then you have to spy the ETF from the S P500. You have the QQQ. You can see how the market is performing. And also you can monitor if there's now a big increase in gold or in. And crude and crude oil. We have at the moment a 1.88% up. So we are now on a round number on 70. So we should. We should take a look of this if this is going crazy. If you see there is an up move like, like two and a half percent, three percent, three and a half percent. Then you can 100. Sure. Something is in the news, there is something happen. And then monitor your position very close.

[00:24:11.29] - Speaker 2
Okay.

[00:24:13.29] - Speaker 3
Yeah. And then the Magnificent seven, how they perform. Yeah. And this is something what I would be at. So have also a really good watch list on your. On your site so that you can always have any idea what's going on in the market. So this is something what I would.

[00:24:29.04] - Speaker 1
Add and I think just to give you an update. So Nvidia broke the core resistance. We are just over the 150 level right now.

[00:24:40.27] - Speaker 2
Yes.

[00:24:43.26] - Speaker 3
And Fabio, maybe you can explain this based from the options perspective. Why Is this very critical to monitor the volatility?

[00:24:54.08] - Speaker 1
And basically the wix, the VIX is so nick. Basically the VIX is based on SPX options and is called the fear index. So if the VIX goes very high, there's a lot of like fear in the market. So when you see the VIX skyrocketing, that's kind of like bad for the market. So normally you see the market dropping when the VIX goes down means volatility is very low. So that's also good for the market. So typically people really watch the VIX very closely. I think the, the areas that you want to monitor is the 15 areas. And below 15 is when you start having kind of low volatility. Above kind of like 18 to 20 is when you start having kind of mild volatility. So like, for example, I don't know, bad earnings for a company could bring the VIX up to like 18 to 20. But when you start seeing a lot of volatility, like 25 and above is when you really start having crisis, like the Middle east crisis or the elections or all of that stuff. Why is that important is because everybody uses the VIX to kind of understand also like the volatility in the option market.

[00:26:17.11] - Speaker 1
So knowing what the VIX volatility is is very important. And typically people talk about two types of volatility, which is historical volatility, obviously from the past. Implied volatility is from the future. So looking at option market, but then you have the market volatility, which is the vix. So if the VIX goes up, it's normal that the volatility of your asset will potentially also go up. So it's very important that you have in mind the volatility of the asset that you trade, but also the volatility of the market. Because if you have a low volatility stock, but the market volatility is gonna go, go up a lot, then obviously the stock is going to be affected as well.

[00:26:57.13] - Speaker 2
Okay, 100. Yeah.

[00:27:03.15] - Speaker 1
Yeah. And we can go into more details later. Maybe if we talk about option, I can share what are the best practices when looking at volatility as well?

[00:27:16.26] - Speaker 3
Yes, 100 and yes. And then I think he was setting up this very well. So if you're looking now to your chart, and I think this is the candle week there when we was touching the core Resistance Fabul, the 150 area.

[00:27:35.27] - Speaker 1
Yeah, I think it went all the way up to 152 and then now it's dropping down below.

[00:27:41.14] - Speaker 3
Yes. And then, then, then we were speaking about this Yesterday about the 150 area in the live call and also with you nick, that on Nvidia the 150 areas are really big impact area and you was doing very well. So you was listening to us. You was mapping out the call resistance the one day max. You was also knowing the 150 area is a good area. So if we not would talk if, if we at the moment not talking and speaking about what the market is doing. You was having exactly your opportunity where you was looking for. You was mapping out this as a. As a resistance area, as a level where you want possible shorter market. And this, this, this was by the way your opportunity. And everyone who knows me, when I be most of the time in presentation or in a talk, I'm trading in the background. And I was also shorting the market. Basically now the NQ goes also down. So in the background I was trading so. But yeah, so and I think Nick, you can be really proud of you. So thank you. But I was telling everyone it's so easy.

[00:28:57.26] - Speaker 3
I can go to McDonald's and can teach any person person in McDonald's how to trade. But now, now the point comes into. So he was understanding the concept of mentor Q. You was understanding about the levels about how you should be mapping this out. That's perfect. In this case he was doing a really nice job. And, and why I was telling this I can tell I can teach everyone in McDonald's how to trade because it's really simple and easy. And and you be also in business guy and entrepreneur. And we have in our business world some golden rule. Basically if you came from. From the marketing. So the, the simple rule is if you can teach some strategy your grandma in five minutes and your old grandma can understand this, then this is a really good strategy. The same as if you can sell and product in five minutes to a grandma and she understand the value and she like it. And this is a really nice product. And I like this how you was explaining this. This, this gives me the confirmation that you was understanding this. But now the big part comes in the game and there, there makes the big big.

[00:30:14.27] - Speaker 3
I think the big difference between someone was consistently and the future profitable and someone was consistently a. So because we have to speak about also patience. Patience. Is this now a really good opportunity to go now in the market when you was now missing the trade. Do you want go now in the market?

[00:30:41.25] - Speaker 2
No, no.

[00:30:42.25] - Speaker 3
Because this is nothing what you was mapping out patience. Now you have to wait until it comes back to your Levels where you really like, patience, discipline, don't take the trade if you miss something. No worries, tomorrow is the next opportunity. So this makes a big difference. If you be patient, if you be disciplined, and if you follow your plan. And this is something what I cannot teach to someone on McDonald's because everyone is different in his mind.

[00:31:15.28] - Speaker 2
Yes, it's true. I think I need like you a clear situation. And for me the clear situation to having the area, okay, to design the area for me this morning it was a good exercise because I have the vision in a snap where I can come in, okay. In the white label. I have not, I have not to think about. I can do other things.

[00:31:56.17] - Speaker 3
Yes.

[00:31:57.06] - Speaker 2
I have not to stress my mind, okay. Because I really don't know what I could do in this area. Okay. I don't know.

[00:32:08.07] - Speaker 3
And I can give you some example. Maybe let me show only for 1 minute My, my stream and then I can tell you something about trust the process, trust the levels. Rule number 10, what we was telling because as you know, I was trading in the background, but this is not, not a part. So we're not doing live trading today. So let me know if you can see my screen.

[00:32:34.02] - Speaker 2
Yeah.

[00:32:35.05] - Speaker 3
All right. So what we was having, so the gray one is the NQ gamma levels and the golden one are the SPX levels. What I was converting with my ratio. So how, look at this, how he was touching this area here. So this was my area of interest. And then boom, we came all the way down to the high wall area here. Boom. And this is amazing. So here I was taking my first profits. I was taking partial profits here. And then I let the other area run until it was here. So it was a really nice great move to the downside. And this is what I mean. So trust the levels, trust the process. So this was a really nice opportunity from us. How we can go into the market, how we can short. It was also seeing that Nvidia so the market is in correlation. So Nvidia was coming down. And also we're getting a little tiny sell off from Nvidia. It's not a big one, it's a correction, profit taking. No worries, everything is fine. But we can take advantage of this and then trade from level to level. Something what you was mapping out and this is something so important.

[00:33:47.20] - Speaker 3
No matter if you're trading futures, no matter if you're trading options, no matter if you're trading stocks, or no matter if you trade ETFs or forex, trust the levels, trust the process. And you will Become successful. You're on mute. Fabio.

[00:34:12.02] - Speaker 1
If we go back to your screen, I think the errors that you mapped out, even though you didn't yet take the trade, was actually perfect because you had the area for a potential breakout. You also had the area for a pullback like we saw right now. So that's exactly like a very, very good setup.

[00:34:35.01] - Speaker 2
I have a question speaking about this candle. Okay. I enlarge. How can I judge the power of this, This candle? Because it's reach nearly 152, 53 maybe. Okay. And it breaks a lot the core resistance at 150. Okay. How can I judge this type of movement?

[00:35:13.23] - Speaker 3
Bobby, you won't go ahead or should I go?

[00:35:18.19] - Speaker 1
You can go.

[00:35:20.07] - Speaker 3
Okay. So you have first to understand if the market is open, we have a crazy volatility because all the orders come into the market. Sell, sell, buy orders, everything came now into the market. So the first, I will say the first 15 minutes. But basically the first five minutes would be some area where I will be not trading because it's, it's too crazy. The moves are too crazy.

[00:35:50.24] - Speaker 2
Okay.

[00:35:51.13] - Speaker 3
You can be on a good area. So, so from, from, from 100 times, 10 times you. You catch the wave and it makes a really nice move. But most of the time you will lose. If you're trading the first five minutes, especially as a beginner, as an expert, or if you be longer in the game. You are people who are really successful. They have big respect for them. Don't understand me wrong. But the first five minutes I would be always avoid. And this the candle what you were seeing first, you're on the five minute time frame. This is something what he was also telling on the first day. I think maybe you remember. So what we want to see if we breaking some area. So the five minute candle was going through call resistance and it was going near one day max. But what was happened, it was not seeing any follow truth, Correct?

[00:36:45.06] - Speaker 2
Yeah.

[00:36:46.08] - Speaker 3
And on the, on the, on the five minute candle, if we. If the candle was forming red and then we see a next red candle. So then we was possible able to see follow truth. Correct?

[00:36:59.18] - Speaker 2
Yeah.

[00:37:00.10] - Speaker 3
And this is our entry. So now you see that we get an. That we get the green candle, that we get a little tiny reservoir. But at the moment we don't take out the. The red candle. So I would wait until we're taking out the red candle and see what happens on the call resistance and in the area where we have the one day max. So for me, Nvidia will be for me as A day trader and no trading stock at the moment because it makes no sense. I can flipping a coin. What. What could be happen if people liking to taking the revenge trade. Of course do it. Maybe you really successful with this. But this would be not my strategy because we was mapping out something. We was having our trading idea. This was would be happened and I don't know we would be going in I think on 149. Maybe something like this. Yeah, Fabio, 149.

[00:38:03.04] - Speaker 1
We are 147 right now.

[00:38:05.21] - Speaker 3
When we would be enter. I think 148. Let's say one 148.50 we would go in and we. We would basically go to 144.50. So that, that's, that's good enough. So this would be good money. This would be what he was telling yesterday. This would be maybe the cashier one day salary. And this was already cost us maybe in. When we be in the market less than 10 minutes.

[00:38:37.20] - Speaker 1
I mean if you look at the. This, you know, this is also the one minute candle. So Nick, if you trade the first three minutes, look at the crazy volatility at the open. Right. So you have. You went from 148 to 150. Almost 153. So like almost five dollar in a matter of five minutes. And then you had a big. So this is all due to the execution that gets done at the open. So all the orders are getting filled and that's causing a lot of like volatility. And then you see like a massive drop back and that, that movement I think was about here 1:40 for let's say 149 all the way down here would have been a nice 3% move. So 4.$5.

[00:39:28.15] - Speaker 3
Yeah.

[00:39:31.21] - Speaker 2
And the correct time frame. There is no correct time frame.

[00:39:38.05] - Speaker 3
That's the correct time frame. Yeah. No, yes, of course I'm using. I was trading very often the one minute time frame, the five minute time frame. But now I like to trade on thousand ticks on the tick chart. Because this means we can have. Yeah, but not everyone can use this. A thousand ticks means there are a thousand transactions. So thousand transaction as it needs thousand transactions to make a candle. I like.

[00:40:16.17] - Speaker 2
Okay.

[00:40:17.16] - Speaker 3
So this helps me a little bit better to see how the market is going. Yeah. And then also I'm. I'm also really like to. If you go into the candles. Fabio, can you go to the candles and then go to the haikini Ashi. So I like this a little Bit more because it's for me easier to read. So I see only a little tiny pullback on the, on the first there. So that's nothing big. And I see that the trend that the downtrend is not stopping. Now I see we was touching GEX3. I see now the trend for the upside is valid because I see less reds and I see no correction. And this is something what I really like with the tick shot, so thousand transactions and also with the candle. So this is something what I personally really like because this helps me very well to see how the market is going, how the market is forming. I can understand much better the trend. But this is really, really, really I will say more advanced. Everyone have his own favor. But this is something what I'm doing and this helps me very well.

[00:41:40.18] - Speaker 1
And basically the difference really Nick, is that the I can ashi is a different calculation of the candles. It's a different mathematical formula. And the goal is to avoid doing those areas right here where you have, see where you have these like red and green. So if you are on this candle right here, you might think that this could be a reversal. But with the II you having a different calculation. It's kind of like smoothie. So you still in a downtrend until you get like a chance. So it's more clean.

[00:42:18.17] - Speaker 2
Yeah.

[00:42:18.28] - Speaker 3
And then with the combination with thousand trades it's much, it's much easier to read for me. But yeah, as I said, I'm a lazy guy. I'm a lazy trader. I make everything for me as simple as possible. The one minute should also be nice. So by the way. Yeah, but everyone like whatever they need. So I will say for a beginner the five minute time frame is a good one because this gives you much more comfortable. And if you can now switch to the 5 minute maybe Fabio, then you see the difference between the 1 minute and the 5 minute. It's much clearer and easier to read for the beginning.

[00:43:04.11] - Speaker 2
Yeah.

[00:43:05.24] - Speaker 3
And I think it's. It's in the beginning. If you be starting with trading, you should focus on what we were saying. Always having one good trade journal, one good trade journal repeat. And for this reason on the five minute time frame you can much easier learn how you can execute your trades and how you can go out of your trades. Because the one minute timeframe there is really fast. When I was switching for many, many years ago from the five minute to the one minute, I think it took me three months until I was managing very well the one minute time frame because it was so going so crazy. It was going so fast.

[00:43:51.04] - Speaker 1
Yeah, but so you see the difference, Nick, Right now it still seems like in a bullish candle, but if you go back to the one minute, it might look that now we are reversing. So yeah, it's kind of like could be a reversal, it could be a force reversal. And then with the five minute, it's kind of a little bit less noisy. So you can avoid the intraday noise, let's say.

[00:44:17.10] - Speaker 3
Yeah, Yeah, I'm angry.

[00:44:26.09] - Speaker 2
Yes. Okay.

[00:44:29.05] - Speaker 1
And maybe I don't know the other companies that you had, Nick. Maybe. Let's see.

[00:44:34.11] - Speaker 2
Okay, let's see. I. I didn't understand why I have different candle. Your screen is different. I don't know why.

[00:44:55.29] - Speaker 3
Our screen is different or I think the first things is it could be that we have different licenses. So. Sure, it's based on the license and. Yeah, but at the end you have the same data feed.

[00:45:15.08] - Speaker 2
Yes, of course. Okay, let me check the other. Okay, This is interesting. Okay, we going into this area high volume and we are almost at the core resistance level. And now. Theoretically we have to test this area with the. In my mind, I think I could open a position for a reversal candle. If we go into the core resistant level. Yes. This is my thought.

[00:46:25.26] - Speaker 3
If you define your. Your one good trade. So there's no right, there's no wrong. So for me, I will not giving you any advice because if I would do this or if I not will do this, the only advice what I can give you, if you can tell me your trading plan, if you can say, okay, I like to see something like this. And when I see this and I will do like this, and I can. I know exactly what is my target and I know exactly what is my risk. And we define a good trade based on what you're seeing and you take it, then let's go. Then I will be completely fine with this. But if you say now, oh, let's see if this is not working or not, then no, I would say not.

[00:47:15.20] - Speaker 2
Yes. Okay, I go without rules. I'm thinking about, I'm thinking about that the, The candle is not growing now. Okay. In five minutes. And I don't know if there is the, the some of the. The push for time touching the core resistance. But if I have to choose, I. My thought is I would like to set two type of trade. One in upper and one in reversal trade. I'm thinking about my risk could be to enter in 1:40, 10:40 and shorting with the stop loss at 144 142. And this is one position. And the other position is to test the limit. I can enter now.

[00:48:43.25] - Speaker 3
And before you enter only one golden, golden wool first.

[00:48:49.22] - Speaker 2
Yeah.

[00:48:50.04] - Speaker 3
Look to your spread. If you like the spread. Because if you're buying now, I would say if you're buying 100 shares. So you will, you will buy the spread.

[00:49:04.04] - Speaker 2
Okay. Re explain. I didn't understand this point.

[00:49:06.21] - Speaker 3
Okay. So at the moment you see the sell price and you see the buy price based on your broker and the spread is at the moment 1.78. So this means if you buying now 100 shares, you'll be immediately in the loss based on your spread. And if you like this, if you like the spread, if there's opportunity. So now you haven't spread from C.22 again. So you must think first. Okay. You have to bring where you are.

[00:49:37.09] - Speaker 2
Looking for the spread on the top.

[00:49:39.23] - Speaker 3
On the left side.

[00:49:42.29] - Speaker 2
Here.

[00:49:44.19] - Speaker 3
Don't touch this. Don't.

[00:49:45.20] - Speaker 2
No, no, I don't touch. Of course.

[00:49:47.18] - Speaker 3
So and there and then you see the 100 and above you see the number 2.7.

[00:49:52.11] - Speaker 2
Okay. 2.07. Okay.

[00:49:54.24] - Speaker 3
So this is your spread. So this is something what you will be cover. So you have to bring back first the losses before you be in profit. So if you buy now and spread like now the spread is on 120. Okay. Now it's a good spin maybe. So you have to bring that back this. So when you buy and when you sell you have to spread.

[00:50:18.10] - Speaker 2
Yes, of course.

[00:50:19.26] - Speaker 3
So if you haven't spread for I don't know, US$3. So you have to spread when you buy and you have the the spread when you sell. So you lost minimum six points. So this means that you be break even. You have to make a minimum six points.

[00:50:36.08] - Speaker 2
Okay. Okay.

[00:50:37.24] - Speaker 3
And if you make your stop loss too tiny, then the spread can can maybe kill you out.

[00:50:44.06] - Speaker 2
Okay. Okay. I sign.

[00:50:50.20] - Speaker 3
Maybe I, I as a beginner. So this is a thousand US dollar stock. It could be something good.

[00:50:57.14] - Speaker 1
No.

[00:50:58.11] - Speaker 3
Based on my, my experience, too much. It could be.

[00:51:04.02] - Speaker 2
I have now how much? 23000 cash. Now one other share is too much.

[00:51:13.06] - Speaker 3
I don't know. I, I don't like it as a beginner buy buys a thousand US dollar share.

[00:51:19.11] - Speaker 2
No, no, I have the limit in this account.

[00:51:23.13] - Speaker 1
20.

[00:51:24.05] - Speaker 2
23.

[00:51:25.11] - Speaker 3
Okay.

[00:51:26.02] - Speaker 1
Bucks.

[00:51:26.18] - Speaker 2
Okay. The spread. Okay. Okay. Remember the spread.

[00:51:32.29] - Speaker 1
And this is also like Nick. There's a lot of platform that have like commission free trading. But the commission free trading comes with a cost. When you look at beta spread because Like Patrick mentioned, you are paying in this case the ask price. And if you sell immediately, you sell at the bid price. So if you were for example to go in and out, you lose money money immediately by doing that.

[00:52:01.19] - Speaker 2
Okay.

[00:52:02.23] - Speaker 1
You also need to look at for example, if you always trade Nvidia always monitor the spread because the spread could increase during period of volatility because obviously maker is taking larger risks. So they want to obviously be paid for and they increase the spread so.

[00:52:20.05] - Speaker 3
That.

[00:52:22.08] - Speaker 1
If like things go go sideways, they can offset their losses. But by having a larger spread and obviously discouraging maybe more transaction because the spread is too high.

[00:52:34.15] - Speaker 2
Okay, but I have a question. If I set an order like I want to enter in one at the level of the corresist 1040 and I set the stop loss at 1044. Okay. And. And I of course I sell is a short trade. Okay. How much is the, the spread?

[00:53:03.17] - Speaker 1
I don't know. Patrick, if you want to answer that.

[00:53:07.17] - Speaker 3
Yes, I can go through this. So no worries. Let me go to your screen. So basically start from the beginning. So every time when you have, when you, when you go into the market based on your broker, you have to check if your broker gives you some transaction fee or some commission fee first. They are, I don't know if interactive brokers based on, on. On. On. On your subscription. If there will be something that say. Well, that you pay something. I don't know, I'm not trading with interactive brokers. So this is something what you have to check first. So let's say you have to pay I don't know, $0.10 per share as commission fee. So basically if you, if you buying 100 shares, you have to pay 100 times 10 cents. Boom. And also if you selling you have to pay it 10 cents 100 times. That's the commissions fees. And then we came also to the spread. Look at this. The spread is now 3.30. So basically if you're buying now 100 shares, you will buy 100 times US$3 20. And this will be your loss directly. So this means you would be now 4.68. Holy.

[00:54:33.21] - Speaker 3
So yeah, this will be mean 100, 100 times 4.68. This is crazy spreads you be. So you can bring this back if the, if the stock is moving. But now there comes the battle. So what has happened? If you will be going now long, but the market is not moving, they're hanging around or they will be not moving. Truth to call resistance. So then you get, then you get really because of the spread. Because you take the drawdown based on your spread first and then we cannot go and truth this or we hang around and the market will be falling and you will be take this, then you will pay again a spread. If you say, oh, I don't like this trade anymore, I will go out. But then you have to deal again with the spread because you must make again some money that you become break even. So, so first, first you would pay, I don't know, 450, 100 times. And now if you would be going out, you will pay also the spread. 330, 100 times. So this means you must make a minimum profit of 5, 6, 7.7.75 points in the market.

[00:55:50.17] - Speaker 3
If you're not doing this, then you're not break even.

[00:55:53.07] - Speaker 2
Yeah.

[00:55:55.07] - Speaker 3
If you hang around between these areas, then it's, it's a very bad, bad ask for you.

[00:56:03.19] - Speaker 2
Okay. Spread. Spread can kill the, the, the profit.

[00:56:08.10] - Speaker 3
Spread can kill, spread can kill your trade and, and, and can kill your account. Yeah.

[00:56:16.18] - Speaker 2
Okay.

[00:56:17.22] - Speaker 3
Because think about so you, you see now your unrealized P. US$100 profit. Yeah. You think, oh man, I was making US$100. Okay, get out. But you see there's a spread now from US$5. 35. And you will be go out. What will be happened? You will, you will be taking 400 US dollar loss.

[00:56:42.11] - Speaker 2
Yeah.

[00:56:43.29] - Speaker 3
Because of the spread.

[00:56:46.06] - Speaker 2
Yeah.

[00:56:47.24] - Speaker 3
So at the end you will not make any profits.

[00:56:50.22] - Speaker 1
Yeah.

[00:56:52.14] - Speaker 2
You lose money.

[00:56:53.23] - Speaker 3
You will lose money. And then you have, then you have to think about, okay, in worst case, let's say, okay, you pay 5, 5 points bread to the upside. 5 points, 5 points to the downside. So 10 points. So this means a huge money with, with 100 shares. So do you be able to bring back first the 10 points if, if you would be going all along? I would say it's a little bit risky because you have to call resistance there. And I don't know if we can break into the sink about. We were speaking about the risk reward. The spread is some part of the risk reward. Make the sense to, to, to trade this stock with the spread. I would say no. Then it makes much more sense maybe to trade Nvidia, maybe to trade Tesla.

[00:57:44.24] - Speaker 2
There is less spread. Yeah.

[00:57:47.17] - Speaker 3
No, 0.02.

[00:57:49.27] - Speaker 2
Oh yes. Okay. So it's a totally different.

[00:57:52.29] - Speaker 3
Okay, it's a big difference.

[00:57:56.07] - Speaker 1
Yes.

[00:57:57.13] - Speaker 3
So and yeah, this is 0.04.

[00:58:02.09] - Speaker 2
Okay.

[00:58:03.11] - Speaker 3
Yeah. So you can bring back this spread easily.

[00:58:06.24] - Speaker 2
But on service I can cancel this trade because I, I need a super trade from 20 almost 20 points. 15 maybe because the spread goes around the 3 and 4 and 5.

[00:58:26.05] - Speaker 3
But. But I. I would be always avoid shares like where you have a big spread. I don't know. Personally, I will avoid this.

[00:58:40.12] - Speaker 2
0.05. Okay. Okay. This is a Disney and touch the. The area.

[00:58:54.10] - Speaker 3
Yes.

[00:58:55.04] - Speaker 2
And then.

[00:58:59.11] - Speaker 3
And now. Now give me. Let's. Let's give. Give you some other teaching.

[00:59:04.27] - Speaker 2
Yeah.

[00:59:05.21] - Speaker 3
Why we was missing the trade. So no worries. So the market is always be there as he was telling about, but it was not setting any alerts on your. On your shot.

[00:59:18.05] - Speaker 2
Correct.

[00:59:18.22] - Speaker 3
So. So it's. It's really important that you set your alert. So go to the gray area and your mouse there. Yeah. And click on the plus, for example. And then you can set an alert. Add Al at the price.

[00:59:36.13] - Speaker 2
Okay. Yes. Maybe I can reset this alert.

[00:59:42.08] - Speaker 3
So boom. And when we came to this. This line. So then you get an alert also there. Boom. Set the alert.

[00:59:49.19] - Speaker 2
I set an out of here. Okay.

[00:59:52.11] - Speaker 3
And now we can relax and we can talk. So if we came to some area like this, okay. We get the notification. We can do the same for Nvidia. We can do the same for the other stocks. If we came to this area where we have really interesting in. Boom. We will be there.

[01:00:10.09] - Speaker 2
Okay.

[01:00:10.22] - Speaker 3
We get the notification and we can check what has happened.

[01:00:17.01] - Speaker 2
Oh, wow. We touched all the. All the upper area.

[01:00:28.19] - Speaker 3
Yeah.

[01:00:31.01] - Speaker 2
Cool.

[01:00:31.14] - Speaker 3
And. And let me share really quick again. So I will only demonstrate about trusting the level. So rule number 10, I think rule number 10 must rule number one, because I cannot stress this enough. Fabio, can you show my screen? Okay. Let's see how nice this was working the trade. So as we were saying, I'm trading the nq. Yeah. So we was touching the call resistance on nq. We going down to the high volt Z Dte. Then we go to the top from the SPX level. Call resistance gamma wall.

[01:01:12.24] - Speaker 2
Whoosh.

[01:01:13.20] - Speaker 3
We came down and stopped again on the high wall level. And now we hang around on this area. But is this fantastic how the levels are working, Nick? It's amazing. And we can plan our trades based on. On the level. So there's no reason that we're going in the middle of nowhere blonde. And plan the trades based on your levels and trust the levels. All right. Yeah.

[01:01:39.11] - Speaker 1
Do you want to share like your thought process and when you got in and maybe even looking at the candle that you used in this case? Because obviously you look at the level, but how do you actually pull the trigger in defining when to get in and get out?

[01:01:55.23] - Speaker 3
Okay. So I was watching we. We must have always and second confirmation. What is the second confirmation? So I. I speak only as a futures trader. Yeah. In the moment. So if you're trading the futures, if you're trading the NQ, you need always and second confirmation. What could be the second confirmation today? My second confirmation is 100 Nvidia because Nvidia have the most interest at the moment in the market. You Fabio was giving me the information and we were sharing also this here in. In the. In the stream, the Nvidia. So what was happened with Nvidia? Nvidia was going to the one day max and then it's breaking through the call resistance. So we came down correct.

[01:02:42.07] - Speaker 1
Yeah.

[01:02:43.03] - Speaker 3
And what was happened with the futures? So we was. We was hitting also the call resistance zero dte. Also the one day max based on the spx and then we're getting also the down move. So we have now two confirmations be hitting critical levels on the nq. Be hitting critical levels on the Nvidia and everything came stone correct.

[01:03:09.20] - Speaker 2
Yeah.

[01:03:10.07] - Speaker 3
So what is this meaning? Boom. It's an. It's a short. It's for me it's in short signal so that we can go short. So and I was, I was tricking this and what I was targeting, I was targeting first the call resistance UDD because this is the next level and we was holding there. I was taking partial profits. And then the next area where we have again levels was the high volt 0dte high wall areas where you can see there. And boom. I was targeting this for my taking the less out of the market. Boom. It was working nice. So this is my tough process. So trading level from level but with confirmation if you're trading maybe in stock have also the, the QQQ or spy side by side on your side so that you can see how the. The market is reacting. Then also make your shot really clean. So as you can see, my shot is really clean. Fabio, or do you see something crazy fancy on my shot? I would say no, it's. It's really easy to read.

[01:04:17.28] - Speaker 1
Yeah, I think, I think, I mean when I. And I think one thing that is very important, Nick, that when I met Patrick, what fascinated me is how easy you would make charts and trading and the way does it is exactly like what you've done yesterday. Right. So designing your areas, designing your kind of like levels, that's very important because a lot of traders, they want to have as much things as possible in the chart. 10 moving averages, RSI like indicators and all of Those they give you like different. Different indication. Right. So one might tell you it's a bullish trade. And one might tell you, oh no, we are in an oversold, overbought condition. Maybe I should go short. And then you are basically conflicting with different types of signals. But what you have in this chart is really simple. Okay. Core resistance, very important level. You have the confluence of what happened with Nvidia. Very good. Very good indication and very good simplification of what's happening right there.

[01:05:25.09] - Speaker 3
Yeah. And second, so what makes it much easier also is to have the tick shots. Yeah. So the thousand transactions and also the candles. So based on the candle, you were saying, there's the mathematically different calculation. It makes for me much easier to understand what's going on. And as you can see here in the down move, you see only red candles here. There's only a little tiny blue candle here. But there was no reason for me to maybe getting out of the trade. I was not seeing any red candle shoved away here. Boom. How simple is that?

[01:06:03.15] - Speaker 2
Yes. Simplification is the mother of everything in business too.

[01:06:13.00] - Speaker 1
Yeah. And so, Patrick, in that case, I don't know if you were drawing on the chart. So you took it all the way down and then you use the next level to kind of like dictate your profit targets, right?

[01:06:27.17] - Speaker 3
Yes. So now we have also some really interesting area. So we are now on the high wall areas. So can we get a reservoir here? We can try it.

[01:06:37.06] - Speaker 1
So the.

[01:06:37.25] - Speaker 3
The risk is. Is a good one. So we have a nice risk reward. So I will.

[01:06:44.09] - Speaker 1
I don't think what you are drawing, Patrick. I don't know.

[01:06:47.13] - Speaker 3
I'm not drawing something. I was only saying. So I was going now long. I will test this. I will test now my trade. I'm long. So my fill price is 26.99.75. I'm at the moment up US$100. So. But I like this because why I'm like this, I can maybe wrong. That's okay. But I have less risk because I can have now the mentor Q levels here and say, okay, I will place my stop loss in the middle of the high wall levels. So we have the high wall levels from SPX and from the nq and maybe I place my stop loss in the middle from then. So and but as a profit target, I can profit target targeting now the call resistance above. Or I can profit targeting the one day max. Remember what is my main setup, Fabio? Trading from high wall to one day max or one day min. This is always my A plus setup. And now I getting the opportunities. I will try it now. US$180 in profit. 200. But we are in the call. I will taking now the 125 profit. Boom. I. I was taking this US$125 profit. That's okay.

[01:08:12.20] - Speaker 3
Remember what we were saying yesterday? US$125 profit. What is this meaning? It's meaning one day salary for a cashier. Correct?

[01:08:23.26] - Speaker 2
Yes, correct.

[01:08:25.14] - Speaker 3
So respect this. So I have also respected time with you, Nick. I have also respected time with Fabio. So I was now in the call with you and making US$125. So how simple is that? So.

[01:08:42.23] - Speaker 2
Yeah.

[01:08:44.21] - Speaker 3
And I was right. Look at this. So the market came slow down. Yeah.

[01:08:51.12] - Speaker 1
I think we're going back to the concept of profit management, right?

[01:08:55.24] - Speaker 3
Yes. So we was talking about this in the live trading session. Everyone will listen to this. Go to the live trading from the election day. I was live trading. I was. I was showing you fast in, fast out. So making consistently little profits. Maybe 100, 300, 400, 500 US dollars. Hold your losses small boom. If the trade doesn't work, get out. And then you will make at the end of the day, thousand, US$2,000. And that's fine. Think about who makes US$2,000 for a day as an income. No one. On my. On my friends. Okay. I'm a poor man on my friends. Yeah. So my friends. So if I would compare with my friends, I'd be poor, but I will compare to an average person. I would be rich.

[01:09:51.25] - Speaker 2
Yeah.

[01:09:53.20] - Speaker 3
So. But yeah, so it is like it is. Trading can be really simple. But it's, it's. It's really if. If you make it simple. So if, if I'm looking to your shot, I can gelling to you what the is wrong with you. Why you put in the si. Give me one reason why the SI is now what is helpful for you if. Because everyone is speaking about the si. So okay, Fabio, maybe, maybe you remember there's only one SI was really effective. Do you. Do you remember on this? It's on our YouTube channel. And what is no, go to our YouTube, Fabio. It's on our YouTube. You don't remember on this?

[01:10:45.06] - Speaker 1
We are on YouTube every day, Patrick.

[01:10:46.29] - Speaker 3
So it was in the beginning I was telling everyone about the as I print seat. But what we using based on the asi Princip. The wix, you remember?

[01:11:00.14] - Speaker 1
Oh yeah, yeah.

[01:11:04.05] - Speaker 3
This is in our mentor queue. Go to the videos or search for wix. How to prepare your trading plan by Looking to the wix. Boom, there is it. So we using the WIX based on the ASI principle, okay. The wigs and, and we map out also the lines from, from the ASI and everything like this. So, so I was calling this the weeks as I. So this is the only thing where, when, when you were doing this I would say okay, makes sense. But now looking to the SI on your shot, man, it makes no sense. But yeah, but I'm not here to give any financial advice, so. So for me it's more important that maybe you use the RSI on your charts and, and find out if this is working for you. For me it doesn't working, but it could be possible that the SI is be golden for you that this is helpful for you. So I'm not here to say you should not do this, you should not do this, you should make this so you should ever doing whatever is good for you.

[01:12:13.03] - Speaker 1
Yeah.

[01:12:13.27] - Speaker 3
So if you like as I do it.

[01:12:18.04] - Speaker 2
For sure. It's another stuff that I have to think to watch. And there is a lot of noise. Less is better. Yeah. And Fabio, yesterday you told me about a backtest in a particular strategy, trading strategy at the end of our call yesterday. And you told you that we can deep dive today.

[01:12:56.26] - Speaker 1
Yeah, absolutely. So, so basically like what we went through until today, Nick, is a way of trading directionally, right? So it's very good because you are, you're using the volatility to potentially like look at those big moves and potentially pocket in going in and out. And you can be in the trade for 10 seconds, 20 seconds or you could be in the trade for minutes or hours. So you, you really, it can really be tailored towards, towards your risk management and your profile. You can set wider stop losses. So Patrick, for example might have a very tight stop loss because the size is using is very high. Some other futures trader, instead of trading the nq, they might trade the mnq which is a fraction of the exposure. So they can take maybe larger drawdowns or larger like levels because they're risking less capital. So really depends on obviously your strategy. And obviously that really depends on you. So what you've done is really strong the areas. But there are other ways of trading the same using those areas. Like for example, one way is to trade in the stock. One way is to trade the options and the option.

[01:14:21.05] - Speaker 1
You can trade it into ways one directional. So in this case, for example, if you were at that core resistance level, you could have traded a put option if you thought that the market was to go down because you are using less capital and you could have potentially have higher leverage. And if you have a strong move like that one, you would have probably made like a very, very good return, much higher than the stock return because you are using less capital and you have the leverage. This is one way. But with that again you are bringing your risk to you. And I think what's important is I'm going to share some slides as well.

[01:15:02.20] - Speaker 3
Before you share Fabio, before you share, let us open for. Nicola. Sorry for interruption but. But I think it's very important before we going now to your slides. Nicola, look at this. What an amazing job he was doing on Adobe. You see it? Yeah, he was mapping this out correctly. He was mapping out correctly also the reversal. So the only thing what he was not doing was setting the alerts. So this is one learning setting the alerts. But it was working perfect as you can see. And also looking now to your watch list. So I want also that you get focus now on your watch list. So what you can see is you have now on the magnificent seven Google 5% down, Nvidia 2% down, Meta 1.7 so and also Amazon 1.6 everything is red, there's no green.

[01:16:00.26] - Speaker 2
Yeah.

[01:16:01.07] - Speaker 3
So basically on this you can say oh the market is at the moment crazy bearish. So and then you see that Google is 5% down. So for me this will be now and trigger I would say. Okay, let's, let's take a look. Why is Google 5% down? What's happened? Is there some news out what can be affect maybe my, my trading position because I'm trading technical stocks. So this was something what will be all on me and also really, really important is that you see the WIX is now up in green. So the VIX is always counter trending. If the mix goes up most of the time the market goes down and if the VIX goes down the market goes up. Yeah, most of the time. Not always most of the time. This is something where you can also looking into it to get an idea if it is now a good idea to take a breakout trade on the top when everything is now bearish and maybe there's only the the now where you can see with 2% profits. Maybe this is now a good idea to taking now long. Is there some news on long?

[01:17:12.28] - Speaker 3
I don't know. We have to check this but the market is at the moment in completely bearish sentiment.

[01:17:18.28] - Speaker 2
Yeah.

[01:17:20.02] - Speaker 3
So maybe it's not a good idea to taking a breakout trade or. No, it would be a good idea if we see a crazy resolver from the Magnificent seven, if, say, going back to green, then you will see a crazy upside move. So this is also what is really, really important to watch. But now. Okay, Fabio, go to the slides because I think this was. And good.

[01:17:48.01] - Speaker 1
Just one second, let me. One second.

[01:17:53.07] - Speaker 2
All.

[01:17:57.07] - Speaker 3
Right.

[01:18:00.15] - Speaker 2
Okay.

[01:18:00.27] - Speaker 1
So going back to. And I'm gonna also share my trading platform very soon, right? So basically, Nick, you did share my slides. All right? So you did a great job of defining your areas. And the, the short in this case was a very, very good strategy. So obviously you have this as your level. And the way you can go short, going back to your point, is you can do it with the underlying. But the problem is that Nvidia quotes right now at $142 was a 149. So if you are, if you want to make seven dollar, let's say seven dollar profit. So if you trade 100 shares, you would have made 700, but your exposure would have been 14,000 or $14,900. Right? So if you have enough capital, then yes, you can, you can trade that and you can trade the stock. But a lot of people, they don't want to use that much capital, so they are going to use leverage. And in order to use leverage, you can do it by trading stocks. Your broker allows you to get leverage account, but you can also use options. So in this case, if your view was correct and you were bearish on Nvidia at this 150 level, you could have traded in this case a put option.

[01:19:32.29] - Speaker 1
And then you, we will go into the details of like, how do you define the strike and how do you define the payout and so on. But basically because you're betting that the price will go, go down. So if the price goes down, your put option will appreciate and you would make the return. Right. The other option that you can do is you could actually sell calls. So if you don't believe that the price will go above a certain level, you could actually sell a call option or sell a call spread. And in that case, when you're selling, you are taking obviously the risk that if the price goes up, then obviously you have to an obligation to purchase or sell a certain amount of shares based on if you are selling a call or selling a put, but you are pocketing a premium. So if you buy a call option, you pay a premium. If you sell a call option, you pocket a premium. And, and when the move goes, then this premium decays because the option is now really going from maybe like Close to at the money, to very far out of the money.

[01:20:43.07] - Speaker 1
And therefore you could actually close your trade, close your spread. And basically your, your profit would be the difference in the premium that you received minus the difference in the premium that you would pay when you closed, you close the spread. So these are kind of like different ways of trading in the same direction. So one is directional trade with stocks, one is directional trade with option, and one is really spread trading, which is really a lot of what a lot of our users do because they love the levels, they know they work. And then instead of taking the risk of going short, in this case Nvidia, they would maybe spread to get the exposure, the same sort of exposure, but risking less capital.

[01:21:29.07] - Speaker 2
And Fabio in practice, where I can buy an option.

[01:21:33.29] - Speaker 1
Yeah. So let me open my, my platform. So I'm using the Tinker Stream platform. And you can do the same thing with interactive brokers with four options. In this case in interactive brokers, you would need to download the their trading app, which is called Trader Workstation.

[01:21:52.29] - Speaker 2
Okay.

[01:21:53.23] - Speaker 1
You won't be able to do it with the TradingView integration, but you would be able to do it if you were to obviously download the application. But let's go in the example of Nvidia. So we open Nvidia and now the price is 140. Right. So here we go under trade and this is how the option chain looks. So is a very big matrix of data and you have different expirations. So the one that we were looking at Yesterday is the November 22, which is the Friday. So as you can see, options expire. Okay, I'm still at the spx, that's why. So let's type Nvidia right here. So you see that in this case we have our 22nd, 29th. So they have weekly expiration. Right. If you look at the spx, the SPX has daily expiration. So here we can, we could actually trade option every day. So we have an option expiring today, we have an option expiring tomorrow and so on. The same goes with some ETFs. So if you trade the spy or the QQQ, they also have daily expirations. And then you could use those if you want to do like more like advanced strategies and SP on.

[01:23:13.11] - Speaker 1
But let's, let's, let's go back to Nvidia. All right, so Nvidia, we open up the November 22nd and actually let me make it bigger. And you see here I have the calls on the left hand side and I have the puts on the right side you could have a different layout. But this, this is the typical one that we typically use, which is really stuck. The different options on left for the call, right for the put. So obviously, call, if you think the price will go up, you can look at the call. And here, right here is where we have our at the money strike. So the price right now is 141. So the at the money strike is this one, 141, 142. On the, on the right hand side you have the, the call call option. On the left hand side on, sorry, on the left hand side you have the call option. On the right hand side you have the put option. So if you were to bet that the price of Nvidia were to go down, the more you go up, the more the price of the put will be. Because those puts right here are already making money.

[01:24:26.05] - Speaker 1
They're already in the money because the price of Nvidia, which is 142, is already below the 150 or 153 too. So by, if you were to, for example, buy this put option, this is a very in the money option. This is another money option. And these ones are the out of the money options. So as you can see, the premium changes based on how far you are from potentially making money with the option. So above 142, 143, you are already in the money. You are making money money because the price right now is way below the strike on the call side. If you go below this, you are in the money because if you, for example, were to buy a 132 call option and the price is 141at expiration, you have the rights, but not the obligation to potentially buy Nvidia shares of $132. So the reason why you see this price being so high is because this, this would be an arbitrage. So you could buy this option if you had an option contract of 132 expiring tomorrow, you could actually go and buy those shares at $132 and sell them in the market at 142 and you would make a profit.

[01:25:41.01] - Speaker 1
And that's why the option pricing is very efficient, because there's no free money in the market. So you would pay a bigger premium if you were to buy a deep in the money option like this one, you would pay a lower premium if you were to buy a deep out of the money option. So in this case, for example, 155 would cost you $0.10 times 100 shares. That would be $10 per contract. This is an option that expires tomorrow. So the reason why it's so cheap is because the likelihood based on the price right now and the volatility and all the other great bricks that you see right here you have delta and then obviously you have a lot of other. You have implied volatility and then you have obviously gamma and theta. But you only have one day to, to actually be able for the price to get to 155. Right? So if this, if the price tomorrow doesn't get to 155 and above, these options are worth zero, they expire value.

[01:26:45.15] - Speaker 2
Okay?

[01:26:46.28] - Speaker 1
And the reason is very simple because again, going back to what a call option does, it gives you the right, but not the obligation to buy 100 shares of Nvidia at $155. But right now the price is $142. So why would you exercise your option where you can just buy shares cheaper at 142? So that's why the option price is very, very, very low. And also the other variable that you want to look for is delta. And delta becomes very important when we talk about delta hedging and market makers activity. And also zero DT option. Because right now the delta of this option is almost 0.0.02. So there are 2% chances based on the option modeling and the option prices that this option tomorrow at the expiration will fall in the money. So that the price of Nvidia Tomorrow will be 160. So if you now go and buy this option or sell this option, the market maker will have a very, very low need to hedge because this option is almost worthless. But what happens if right now Nvidia releases a new price product and suddenly or releases a new partnership or there's a, I don't know, hiring a new chief advisor or anything like that?

[01:28:14.17] - Speaker 1
Could this distort the market? And the price goes from 142 to 155. Right, right here you see that the delta of these options right here. So here you have 47 of this. 40, 40, 47 chances that tomorrow the Nvidia price will be 143. Okay, and, and obviously imagine if now the price goes to 155, those 143 option will become deep in the money. So the delta will be almost close to 100 or to 1 in this case. So therefore the same will happen to your one. I think we were looking at 160. The delta is now 0 or 1%. This will probably go to, I don't know, $0.30 or 30% or 40% or 50%. So imagine the increase in exposure that market makers will have if those options start becoming worth it. Because now they need to hedge that exposure. And that's why understanding the change in Delta, the change in Greeks, is also very important. But going back to your point, basically, when you buy or you, when you buy a call option or a put option, you pay a premium. So if I for example, were to right now buy. Sorry, if I click here right now, this option is the 142 option.

[01:29:46.08] - Speaker 1
Put option is quoting 220. 222. Right. So if I were to buy this put option, I'm just gonna put the size to one. My cost would be around $220.

[01:30:04.18] - Speaker 2
$220.

[01:30:07.19] - Speaker 1
Yeah. So you multiply, Okay, you multiply this price right here. Sorry if it's quite slow. All right, so you multiply this two one. Two, $2 times one.

[01:30:31.09] - Speaker 2
Yes, yes.

[01:30:32.02] - Speaker 1
Okay, so if I click here, this platform gives you a very, very good overview of your breakeven price, of your maximum profit and of your maximum loss.

[01:30:46.23] - Speaker 2
Okay?

[01:30:47.17] - Speaker 1
Right. So the ma. When you buy an option, your maximum lost is a maximum loss is the premium that you pay for the option. So in this case, in my case, right now is 200.

[01:30:59.10] - Speaker 2
Okay?

[01:31:00.20] - Speaker 1
So if I buy this one, I will lose 200. The worst comes the worst. The option is worthless. I lose the 250 and that's the risk of my trade. The maximum profit in my case, in the case of a put option is capped. And this is 13, 999 because is the strike price that we have minus the cost of the option times 100. Because think about, Nvidia can only go to zero. It cannot go below zero. So if the company goes bankrupt, I make money from my put option because I have the right, but not the obligation to sell 100 shares at $141, case 142. But I'm paying also a premium for that. I'm paying $2 per share, so my break even would be $140. So if the price of Nvidia goes be closes below $140 tomorrow, then I, I start making money until 104.39.99. I don't make money because I, I have to pay a premium and the stock is still by still at 142. On the other side, if I was to sell a put in this case, because I maybe I think that the price of Nvidia is not going to fall below this 142, and it's just gonna go up.

[01:32:34.06] - Speaker 1
I will receive, in this case, $218. But my potential risk, if we go back to the other side. And now we. We go and. We put it to 1. In this case, you see, this is now reversed. So my. Sorry. I have 10 contracts.

[01:33:11.19] - Speaker 2
Yeah.

[01:33:12.04] - Speaker 1
So if I sell this, in this case, this, this put, and let's go to one contract only. All right? Now, my maximum. So when you sell option, in this case, to put or call, your maximum profit is the premium that you receive. So let's imagine that Unicola want to buy this put option, and me, Fabio, want to sell it to you. You pay me a premium. This was $246. And you have. You have the option contract, but I have the risk that I need to sell to you 100 shares of Nvidia at $142. Right. So my risk is this, $14,000, because, again, I'm receiving a premium. So the strike price is 142 and 66. I'm receiving $246. And I basically lose money if the price of Nvidia falls below that 140. Because then you could sell shares to me at 142.

[01:34:26.23] - Speaker 2
Yeah.

[01:34:27.17] - Speaker 1
Price of the shares is maybe 130. I'm losing money. You are making money. And this is my potentially maximum exposure, because my maximum exposure is really the fact that the stock price of Nvidia can only go to zero. So that's $14,000 is my maximum exposure. When you sell a call, your maximum exposure is and is infinitive, although that's very unlikely. But the, you know, Nvidia price could go to the infinity sky, to the sky, to the moon, and therefore, you could actually have an unlimited risk. So, yeah, so it's the same principle. The other thing that you can do, and this is going into more of the complex strategies, is buying or selling a vertical spread or a credit or debit spread. And that means that you don't want to, like, first, you don't want to pay as much premium, and second, you don't want to risk as much. So again, let's go back to this other example. So if you now buy a $143 put, your cost is $200. If the price doesn't go down, you lose $200. Right. So that's your cost. If I buy a 143 call, I'm paying $229. And if the price price doesn't go up, then I lose those $239.

[01:35:59.21] - Speaker 1
But the other option could be, I believe that the stock will move in some way or in some levels. I can use a vertical spread. And the vertical spread simply means that I'm pocketing. So I'm making money from the direction, but I'm limiting my risk and also my cost. So in this case here we have two numbers, 142 and 143.

[01:36:23.16] - Speaker 2
Yeah.

[01:36:23.28] - Speaker 1
So in this case I'm buying, if I buy this, I'm buying the 142 strike and I'm selling the 143 strike. So the maximum I can make is $1, which is the difference between the strikes. So if I were to click on the $44 there, let me just put this to one again to make, make it quicker. Okay. So I would, in this case it's a debit. So I would pay 43 cents. So 40, $43. And I would potentially have the opportunity to make $61 or 100 minus the 39 that I pay. So this is not very good. Good risk reward.

[01:37:14.26] - Speaker 2
€1 per 100 is €100. Okay.

[01:37:19.23] - Speaker 1
Yeah. So the maximum I can make is the difference between the two strikes, which is 1, 1 $1 or $100. And I'm paying $0.39 for it or $39.

[01:37:31.27] - Speaker 2
Okay.

[01:37:32.24] - Speaker 1
So if the price of Nvidia doesn't close tomorrow above 143 or 142.61, I lose money. And this is your break even price, which is 143 minus the $39. The 39 cents per contract. Okay. On the other hand, I could sell this and let's say that I believe that the price of Nvidia will not go below 142. So I could sell this spread. And I click on the, on the buy button right there and I just pull that. To one and here you see, now it's a credit spread. So now I'm receiving for $40. And if I click here, my max profit is $40, which is the money that I paid. And my max loss is $60, which is $100 minus the $40. Let me know if that makes sense.

[01:38:54.14] - Speaker 2
Yes, but I really didn't understand.

[01:39:00.22] - Speaker 3
How.

[01:39:00.28] - Speaker 2
Can I make money. When the price finish below the 143, I lose money. And the opposite, I, I make money.

[01:39:16.00] - Speaker 1
Yeah, yeah. So the, the important part with option is that it's very important and we are gonna, we're gonna draw it here is that with options you can make money from either direction. So if the price Goes like this if the price goes up and if the price goes down. Right. If you're trading simply the underlying. So let's say that you are long or short Nvidia. So let's go back to, to our example and let's actually take out our gamma levels.

[01:39:50.26] - Speaker 3
Right?

[01:39:51.07] - Speaker 2
Yeah.

[01:39:52.11] - Speaker 1
So let's imagine that you were short Nvidia right here. Okay. The only way you can make money is if the stock price goes in this direction.

[01:40:06.08] - Speaker 2
Yeah.

[01:40:07.10] - Speaker 1
Okay. You lose money if, if the price goes in this direction. Of course. Yeah. And you lose money if the price goes kind of like this. If the price kind of like stays in a range, you are maybe not losing money, but you are also not making money. So the point of your short trade doesn't make sense because the price is not moving. So you might have made a little profit, but what you really wanted was this strong move. If we were to sell options, in this case, you could actually. So let's say that we believe the, the, the price of Nvidia was to go down. We could have sold a call spread. So we would make money if the price of Nvidia goes down. Right. Because we're, we're selling a coil spread right here. We are getting a premium. And the premium when the price moves that is not worth nothing because the option is very out of the money. But we have time. Remember option have expirations. So we can also make money if the price of Nvidia were to move like this, but not go above our, our strike price.

[01:41:21.06] - Speaker 2
Okay. Okay.

[01:41:23.15] - Speaker 1
And let's say that now let's, let's actually put this as our strike price. We could also make money if the price goes slightly above our strike price and kind of moves in that direction, but kind of closes below our strike price. So and, and the reason is very simple because of time. So the more time passes, the more the option that, that you have is, is decreasing value because you have less time for something to happen. So can the price of a of Nvidia be above 152 in one month from now? Almost certainly in a day from now. There's very, a very low likelihood because now we are at 143 and that likelihood of probability is priced in our option pricing. So if we go back to, to our, our option, you see it here. So for example, remember before where our one 142 put strike was at about 220.

[01:42:40.03] - Speaker 2
Yeah.

[01:42:41.02] - Speaker 1
Right now is a 137. So it's already lost almost a dollar in value.

[01:42:47.09] - Speaker 2
Okay.

[01:42:48.29] - Speaker 1
So if you if you sold that 220, in this case was a put, put spread or a put a put, you would have received $220. And you can now sell it back and close your 129, which is a 100 profit on. Yeah, 100 profit.

[01:43:12.11] - Speaker 2
They change very, very, very fast.

[01:43:15.17] - Speaker 1
Yes.

[01:43:19.07] - Speaker 2
Okay.

[01:43:21.19] - Speaker 3
That's why, that's why it calls fast market. When we have New York open, Then that's the reason why we was making money. So think about the market will be slow, so then we having no opportunities. And this has happened when we have. When we stay in the range. So when the market is not moving, moving when it goes sideways, when it goes one way still up, one way, solar down. Of course we can have iron condors. But at the end, as traders, there's no opportunity to make good money. So this is why we need that. The option chain goes really fast. So this means the dollar is rolling.

[01:44:02.29] - Speaker 2
Yes.

[01:44:04.21] - Speaker 1
If we look back, Nick, let's go back to our vertical. So our credit spread. Right, so we had our one. This was. Okay, so in this case, our. This was 39 cents, right? I think it was. Right. So now obviously this one is 37.39. So this one didn't go down as much because we're still kind of like, we're still kind of in the range. So in that case, it's the same principle. You add, you would have made a little bit of money. Obviously the exposure was much lower. Was $100. Your. Your value. So we still have. Yeah, this is still kind of like. Actually this one was 60. 60 cents. So it lost like 15 cents over. 60 cents is a pretty, pretty good one. So this one was $60 and now it's 45. So in a very short amount of time, the matter of five minutes, 10 minutes. And now it's 53. Right. So now like you see, I think the, the price have gone up. So yeah, so this one was. Okay, 39. Actually, maybe it was three. So the price went up. Okay. But the, the. The most important concept when you look at option Nick, is volatility.

[01:45:31.29] - Speaker 1
So we talked about the price of option. We talked about some of the Greeks. I think the most important part to understand is that option price is determined most, most importantly by three variables. There's more into the, into the calculation. But the most important ones are the price of the underlying. So the move of Nvidia. So the price, the stock price. And that is derived from delta, which is one of the very important Greeks that you have. Then you have volatility. So the change in implied volatility is very important. And then you have time, which is theta. So the, the three Greeks that you want to look for are those three, because they are very, very important. So when you are, whenever you, you trade like an asset, you always have to understand what is your volatility and how to read volatility. And if you trade the same asset, you know, if we are in a very volatile moment or if we're in a low volatile moment, and then based on volatility, you would need to define what strategy you want to imply. So do you want to be a buyer of an option? So increase your probability of success by buying when the option price is very low and being able to then capitalize from the change in market, changing volatility, increasing volatility.

[01:46:57.11] - Speaker 1
So the price of the option then becomes bigger? Or do you want, do you have a directional view of the assets? So do you think Nvidia will move to a direction very fast or very low, or will it be in a range? And then are you investing to pocket from the direction or to pocket from the change in volatility? So again, you could, if you want to trade the direction that you can buy a call option or buy a put option, depending on, you know, the way you want to trade. But if you don't want to bet on the direction you think the market is going to be in a sideways trend, then maybe you want to pocket from the change in volatility. Right? And then these are obviously the directional strategies we saw. Obviously going longer call or going short, shorter put, Bullcore spread, bullpool spread, those are the vertical spread that I, that I, I showed you. And then you have the neutral strategies. So a lot of our traders, they trade, trade iron, condors, butterflies, straddles. Those are more complicated. We're not gonna spend time today on those. But basically those allow you to make money, essentially, if there's no clear direction on the asset.

[01:48:17.24] - Speaker 1
So the goal of these strategies is that the price of the asset will stay within a range. So if we go, if we go back to our Nvidia, let me just pull it up. So those strategies would benefit from the price to stay within a range like this. And the reason is simple, because you have the change in volatility, so the more ranging you have, and the more the volatility will kind of decrease. So if you look at the Nvidia move, for example, let's go back to yesterday. So this move would see a very big increase in volatility. This move will see a very Big decrease in volatility. Right. So by betting on the change in volatility and the passage of time, you could actually pocket from that situation. So you can still make money if those two things happen, Right?

[01:49:20.27] - Speaker 3
Right.

[01:49:21.23] - Speaker 1
Change in volatility and passage of time. All right.

[01:49:28.00] - Speaker 2
Yeah.

[01:49:30.00] - Speaker 1
So obviously volatility, very important. And I think this is kind of like the basic. I think this, you have to stick it to rule number 11. So this is the golden rule of option trading, right? You want to buy options when the volatility is low and you want to sell option when the volatility is high. And, and the reason is very simple. If you buy when the volatility is low and even if the price doesn't move and even if time doesn't passes, but the volatility increases. Because let's imagine that the, the now there is an event in the market and Nvidia doesn't move and stays up, I don't know, 1% return, but the Vix goes from 15 to 25. Right now we have market volatility. The implied volatility of Nvidia will also go up and therefore the premium of the option will also go up even if nothing really is happening in the underlying price. So you bought an option and if you buy an option in, in this situation, you are paying a higher premium because the, the volatility is higher. And what happens if the volatility decreases and tomorrow fake news, nothing has happened, everything is good and the Vix goes back to 15.

[01:50:56.29] - Speaker 1
Then suddenly you have this volatility crash that will erode the premium of your option and the same thing happens on the other side. So you want to sell option when the volatility is high because if the volatility decreases, then you're gonna basically pocket from the fact that the volatility is lower and the premium will be lower and then you can close your option and make money.

[01:51:23.23] - Speaker 2
I think I have to study and even if I have to try a little bit.

[01:51:31.23] - Speaker 1
Going back to our backtesting, and that's where we can bring the swing model in.

[01:51:36.22] - Speaker 2
Yes, because it's really interesting, the back testing.

[01:51:40.27] - Speaker 1
So if we go back to our swing model, essentially we saw that you can sell spreads and you can limit your risk by having different strikes. So if you sell one strike, you buy the other one. The cool thing is really looking at the string model, right? So if we look at our string five days on Nvidia. So here, now you have two levels, right? So we saw, we saw basically the risk trigger and the lower band. So we have our lower band of 133.57. And here you have the success rate of the lower band, which is 100% on 38 days. So that means that in five days from now, if the model is correct, the price of Nvidia should be above 133.57. And if that happens, then, you know, nothing, nothing would happen. The model success. But how can you trade that when the price of Nvidia is at 144? Right. So we are quite far away from the 137, which we're gonna, to put it right here. Right? So this is, it's going to be our, our price right there. So this is our level, right? And then to the up, to the upper side, we have our 158.

[01:53:03.29] - Speaker 1
So if we draw our risk trigger right there, we now have our 158 right down. So, so directionally, how can you trade this? Right now it's very difficult because you're kind of far away from, from the lower band. So you don't want to go into this middle area because there could be a risk that the price goes down or the price could go up. So you don't have a long strategy, you don't have a short strategy because you're far from this. But how can you still potentially make money in, in this situation? So let's go back to our option price. All right, so let's imagine that this is a price that is five days in the future. So we're not going to use the 22nd of November. We're going to use the 29th, which is next Friday. It's seven days, but it's okay. And then we look at Nvidia. So we can do two things. One is we can simply look at, looking at the puts. So we have that, what was it? 137.

[01:54:11.06] - Speaker 2
Right.

[01:54:14.17] - Speaker 1
133. Okay, so 133 is our strike. So if we go here and we look at 133, you see that is 57 and $59. So if we sell a put option expiring next Friday on Nvidia at $133, we would pocket right now $56, but our risk is quite high because our risk would be 13,000, $13,000. So, All right, so if we look at our risk profile, so our maximum profit is $56 and our maximum loss is $13,000. Okay? So if Nvidia goes to zero, we can lose $13,000, but we're not going to lose the $13,000. But we could incur in a very, very big loss if the price of Nvidia were to, for example, drop below 133 to 128 and we start losing money here. So the other option that we can use is our vertical. And I'm just gonna use four strikes right here. So we have our $133 and 139. So if we were to sell the 133 put spread and we would sell the 133 strike and we would buy the 129. We are now receiving $26 instead of the $56. But we have a much lower risk. So we are receiving less.

[01:56:14.12] - Speaker 1
Perfect. But we only have $374 of risk. Right. So our maximum profit is 26. Our maximum risk is, is 374. If we divide this by the return, we have 6.9% potential return by next Friday. So if by next Friday the price of Nvidia is above 132.74, which is, is our break even price, we make $26.

[01:56:46.05] - Speaker 2
Yeah.

[01:56:46.26] - Speaker 1
And our risk is $374. And if the model is right, like, like it was right here. So if, if the model predicts the right side, we could make a 6.9% return in one week, which annualizes probably, probably, like, I don't know, a lot, A lot. So going back to kind of like the results. Why, why is this important? Because this could be another way for you to look at the areas and another way for you to use the data. So if we go back to our back testing results. So I'm gonna show you a couple of back testing. The first one is the last one that we did that we presented Yesterday. This encounters 600 companies. So as you can see, we have like a lot of companies, small companies, big companies. And obviously what we do is we take the swing level from 8 November, which is Friday, and we take the sentiment. So whenever we see a lower band, we have a bullish bias. Whenever we see an upper band, we have a band. Bearish, guys. So here you have the risk trigger, the type of level, lower band or upper band, the value of the level.

[01:58:07.10] - Speaker 1
And then we start taking the open price and the close price of Monday and Friday. Right? So two types of strategies. One, long, short. So you buy and sell. So you buy if the bias is bullish, you sell if the bias is bearish, you sell at the open, you buy, you close at the close. So you sell or buy at the open and you close at the close. So whatever, no risk management, nothing. We just, you know, keep the trade until the close. And then you have the returning percentage. And then here we assume that we are putting $1,000 for every trade we do because you want to keep an equal risk, right? So you want to have the same kind of like value. And, and then here is the return in dollar amount over that week. And this is the returning percentage. Right. So going back to the option strategy, in the other case we do a call spread or a put spread. So the call spread we do it if we are in a bearish bias. And that means that the, the up we, we will see an upper band right there. And we would use the level of the upper band as, as our sold call strike.

[01:59:20.09] - Speaker 1
And then we would use a higher level here to, to buy our, our second call. So the first call would be at around 42, $43 depending on the stock. And, and then we would go higher to, to receive a premium and limit our risk above that level. If we are on a bullish bias like in the example of Apple, we would then sell a put at the 220. 221. And we would buy a put at the lower strike. So if we go for example, okay, and then we look at where the price ends. So in the case of a bullish bias, we want the price to be higher than 220.93. If we are in a, in a bearish bias, we want the price to be lower than 42.26. So if we look at this one, the price was 37.69. So we, we would have made money both on the directional as well as the, the option strategy. Because our price at the end of the, at the expiration is below our strike price. Same with Apple, we want the close price of the Friday to be higher than our in this case strike price of the bottom value that we use for our strike.

[02:00:35.21] - Speaker 1
So 225. Right. So then here what we do have is, was would my put spread be successful or not? And we have success and then we have no success and so on. So the no success. Let's go through here. Right? So why wasn't this successful? So we had a bullish bias on this company called AIQ. Our lower band was 37.79. The price opened at 38.93 and the price closed at 37.73. So right below that 37.79. Directionally we would have lost 3%. Non directionally with option we would have not been successful, we would have probably lost not a lot because in this case we are very close to the strike price and we can do another example. So in this case for example, so on Avgo our was a bullish bias. Our level was 172. We open at 183. We close at 164. So we lost 10 on the direction and we would have lost probably the old premium on, on, on the, on the option strategy. Right. So now going back to the results, right, if we were simply going long or short, we would have won in 49 of the cases. So not, not almost 50, so not really anything there.

[02:02:09.16] - Speaker 1
We would have made 1% return. Our portfolio 600000 because we have 600 companies and we would have have made $6,000 over that week. If we were to do option strategies we would have had a win rate of 89.33%. And that is really counting all the successes that we have on those 600 and, and clearly just simply creating a formula right there. So that means that we could have taken some of these companies and we could have used our, our swing model to then go and do that spread strategy over five days or we could do it over 20 days as well. And the goal there is obviously trust the level, trust the fact that it could potentially be successful. And then obviously you then use the option strategy to then pocket the premium right there.

[02:03:10.20] - Speaker 2
So maybe we'll do 89 is an incredible performance.

[02:03:17.19] - Speaker 1
Yeah it's, it's not the performance, it's the success rate.

[02:03:20.04] - Speaker 2
Not the performance. Yeah, the success rates.

[02:03:23.00] - Speaker 1
But maybe we can do. So we can do maybe like, let's take maybe a company that you look for. Maybe we can look at Disney or maybe tell me the one that you wanna, you wanna look for and we can do an analysis there.

[02:03:34.14] - Speaker 2
Yes, am. Amd.

[02:03:36.23] - Speaker 1
Amd. Okay so the first thing that we do is let's go here on the query bot and let's go. The first chart we want to look for is our netjacks and we look at amd. So clearly there's a very big like selling pressure is a very strong put support at 135 and there's like some sort of like piling up of like positive Gamma above that 150. If we look at our net JAX multi expiration on AMD we kind of see there's like not a clear picture. So you don't really know what the market is thinking. There's a lot of protection right there. But let's say that we go into our string model. So in this case, as you can see, our swing model is bearish. So we see an upper band. Right. And if we look at the success here, so the upper band actually was only there on nine days out of the 17 days that we have right there. And successful on 100 of the days. And the lower band was only successful on 37. And they're all. The overall model has had a 70 success in 17 days. Right. So here you have.

[02:05:04.06] - Speaker 1
So 145 would be our upper band. All right, let's look at our 20 days. All right, now we have our upper band at 153.21. And our restrigger 129. 21. So 145 and 153. So if we go back to our options data, let's type md. So the first thing we want to look for is the five days. So tomorrow is obviously not the expiration. We'll look at the 29th of November. And we want to look for. I think it was 129.

[02:05:48.19] - Speaker 2
Right.

[02:05:54.14] - Speaker 1
145. Okay. So in this case, we look at the call side and we want to look for a call credit spread. So if we look at 145, 149 and we can increase that. So we can take more risk or take less risk. If you only want to take less risk, you could do 145, 147. Your risk is only 200. Or you could do 145, 148. But if you look at, in this case, 145, 149, your, your, your premium that you get is $30. And let's go, go back to our risk. So we would make in one week, 31 over $369 of potential loss.

[02:06:46.29] - Speaker 2
Yeah.

[02:06:47.26] - Speaker 1
Okay.

[02:06:48.27] - Speaker 2
If we go back statistics, we, we win in 89 of time.

[02:06:57.04] - Speaker 1
Now in this case, on, on this we have our success rate 70%. 70% on 17 days.

[02:07:08.26] - Speaker 3
Yeah.

[02:07:11.08] - Speaker 1
So again, you would make about 10% return if obviously the price of AMD stays below 1 145. In this case. Right. In, in, in one week. But we can also look at going further into the future. So we saw our 20 days model. Let's go back to this chart. So we saw our 20 days model. And this is 153. So if we go 20 days in the future, then we are looking at time 14, 13th of December. And then here we would go to our one. So 150, let's say 150155 in this case. So you are basically in this case pocketing 50, $52 with a $500 $55 your risk $445. And obviously what needs to happen is that AMD by December 13th needs to be below 150.

[02:08:36.02] - Speaker 2
Yeah, That's when I see you to do this. It seems it, it's simple, it's easy, but it is of course not.

[02:08:58.29] - Speaker 1
I think this one just to go back. If you want to start doing kind of those type of strategies, you always have to remember this one, this rule. So you sell option when the volatility is high and you buy option when the volatility is low. And going back to some of the things that we have, let's go back at the beginning. You mentioned that you use the screeners. So if we go back to the screeners, right here we have our volatility screener. So just scroll to the bottom and here you can get some really interesting ideas of stocks that have, you know, for example the highest implied volatility. And again you can filter by market cap. So you have some interesting companies maybe right there. And then you also have the lowest implied volatility. So if you are looking to potentially buy some stocks, then you want to look maybe some of these might be in your watch list of the Dow Jones very low volatility. Could be an interesting. You have here you have the S P right now with the. Has a low volatility compared to a lot of other companies. And then you also want to look at the IV rank.

[02:10:18.29] - Speaker 1
And we haven't touched too much on.

[02:10:20.17] - Speaker 2
This, but this is, I see tomorrow morning when I scroll the screener and I didn't understand the Ivoo rank. What does it mean?

[02:10:30.07] - Speaker 1
Yeah, very, very good. So we have it here. So the IV rank and here we're using a different platform but it's, it's a data that basically looks at the one year history of implied volatility.

[02:10:45.10] - Speaker 2
Okay.

[02:10:45.27] - Speaker 1
And we value in which, in which percent. So it will tell you on how many days the implied volatility of the asset has been, has been below the current level. So when you see right here, so when you see a very high IV rank it means that on, like in this case, on an IV rank of 36.78 means that only on 36% of the days over the past years the, the volatility has been lower. Right. So in this case, so you have most of the other days the volatility has been much higher. If you have an IV rank for example of 99, it means that the volatility right now is at the top of of the of the day. So you are at the at the highest volume in the imply volatility compared to the past history. So ah, okay. Okay, so if we go back to to to here another rule. So rule number 12, you want to sell options with maybe more aggressive strategies when the IV rank is above 70 and closer to 100 because that's when the asset is experiencing the most the highest implied volatility that has experienced over the past year.

[02:12:21.29] - Speaker 1
So in that case volatility is like a rubber band. So it can go up and down, but normally it tends to always go to the to the mean. So if you are selling so it wouldn't be a good idea to buy options that have a very high implied volatility. It would be a good probably strategy to sell option because the likelihood of volatility to be much higher for a very long time is lower than the fact that volatility will go down. And then whenever you have an IV rank between 50 and 70, it means that if you have an IV rank of 50, for example, it means that the implied volatility of your asset has been below your current level on 50% of the days. So, so you're not really, it's really kind of like in the middle, so you're not really have a clear increase in volatility and so on. And when the IV rank is below 50, that means that buying or like starting to considering buying options could be an interesting strategy because the implied volatility of the asset currently is much lower than the history of the past one year. So when we go back to our screeners, you also have our.

[02:13:40.17] - Speaker 1
High IV rank screener and our low IV rank screener. So if we go right here, You see the IV rank right there, you see for example, interesting mstr very very involved in the Bitcoin bitcoin strategies. And then you have a lot of different company. But if we go on our low IV rank there, Then you have some companies like for example our Avgo that we saw here is a 2.6% Siri 2.78 and so on. Let me know if that makes sense.

[02:14:34.08] - Speaker 2
Yes, it makes sense. We go through an amount, a big amount of data and we have to understand all the data for having the best information for us to make a choice or choose a strategy. And the only way to choose the right strategy for, for me I think if it had to try 2, 3, 4 type of strategy and I have to choose the the best for me, for my feeling because there are a lot of topic the time frame, the the in option, the fast move of the spread of this type of market. And I have to check a lot of data in real time and the graphics and I have to fit. I have to choose one studies that I I'm comfortable to fit.

[02:15:41.17] - Speaker 3
I come in a trading world. What welcome in the trading world.

[02:15:51.24] - Speaker 1
Yeah. So I think Nick as a takeaway the. So the interesting part is that you don't have to choose one or the other but you want to understand that obviously you have the power of the levels when you trade directionally so they can support. Support you in the. And if we go back to our chart. Let's go back to our chart right right here. Like the levels can be your kind of support and decision making tools. So they. You're not trading blind anymore. You have a supporting tool that can help you define your areas. So this was a very good example and that can support your. Whenever you go into the market you trade for four hours. That's. That can be your support. But then it could be that from time to time like I'll give you an example. Like a company drops 20% on earnings and it's a company that you like, right? Yeah maybe, yes maybe it's a very bad momentum but at the end of the day really maybe did anything change overnight and it's like really the price maybe is like a momentum reaction. So you could also start using some more like basic option strategy that can help you maybe like even making some income on the side for companies that you care so for.

[02:17:15.12] - Speaker 1
For companies that you like. So yeah.

[02:17:20.29] - Speaker 2
Yeah it's true.

[02:17:22.15] - Speaker 3
But Nicola every time when, when people talking to me and I feel overwhelmed like hey there's. It was going through so many things then most of the time I'm thinking okay this was really good value but for my little tiny mind that's too much. So I'm. I'm writing down what. What you was doing. So always after the call when I'm laying down in the bed in the night so I'm sitting on my smartphone and typing only in so what is in my mind at the moment what I was learning. And then I think about okay how I can simplify everything what what the guys are telling me based on my style. So based on Nicola style. So you have not to follow what we're telling. So find only the golden nuggets in the moment where you. Where you write down everything and then simplify everything if you have. If you tell me or I have to think about and there are so many that. That way I have man. In this moment where you're thinking like this, you start to overcomplicate over complicating simple stuff.

[02:18:38.11] - Speaker 2
Yeah.

[02:18:38.26] - Speaker 3
So. And this is one of the biggest key why I. I become successful because. And when I feel that it's so complicated, I give up because this is not. I was telling you, you can. You must sell this your grandma. And if they can buy this your strategy and they can copy your strategy, then this is a really good strategy. And in the moment where you have to. To say, well, I have to think I it's too much or I don't know, then maybe there is something what is maybe not not simple enough for you. And then start to simplify everything. So maybe you must not going like what Fabio was saying. Maybe you must not going like what I was saying, go the Nicola way, but on the easiest way as possible. In the moment where you think oh man, crazy. This is a little bit complicated or you have some little sickness in something. Don't do it. Go down. Bring this to the easiest and simplest way and then you become successful. But if you start like okay, now I have to be in mathematical. I have to to, I don't know, calculate everything because this is crazy.

[02:19:46.29] - Speaker 3
I like this. Amen. Stop. You will lose money.

[02:19:50.14] - Speaker 2
Yeah.

[02:19:50.26] - Speaker 3
You're not. You're not an. Some. Some crazy guy like. Like the others. So it's simplify everything. Simplify everything. This is why. But this is also why I'm here on Mental Q. So give. Give you guys any idea how you can simplify everything. And this is something how you can become successful in the moment where you start to. To simplify everything. But sorry, I have to mention my position. You have to simplify everything. I. I cannot stress this enough, Fabio. It's like. Like when. When you was talking about this. I'm not an options trader. You're also not. Not so much in futures trader. And other people are not future straight options. They are stock traders. But find in anything what we teaching any little tiny value. I'm looking also in the option chain sometimes because I like to see the time and sales from the options there. Therefore I have to need the option change. Otherwise I don't get the time and sense on the options. Correct. So this is how I simplify. I. I don't need how this the everything goes crazy on. On the option chain. For me, I was simplifying the option chain for my trading style.

[02:21:08.04] - Speaker 3
Look to the time and sales So I need only the time and sales. I need only if big orders came in truth, time and sense. That's it. That's what I'm needing. And maybe Nicola, you need for your trading strategy, your trading decision also only some. Some little tiny sink from what was Fabio telling or a little tiny thing? What I was telling you because when we were starting, he was doing a really nice job. You was. You will simplify everything. But don't go and. And make it now complicated.

[02:21:39.08] - Speaker 2
Yes.

[02:21:39.25] - Speaker 3
Find only golden nuggets. Never make anything complicated.

[02:21:44.21] - Speaker 2
Yeah. Stay away from entropia entropy. I don't know in English if there is the same word in Italian. But for closing our incredible three days of teaching and learning, I want to share you the last thing if I could. Five minutes maximum. I. I made three trades in the meantime.

[02:22:22.20] - Speaker 3
I said you must also trading. All right, let's go.

[02:22:33.07] - Speaker 2
I made three trade trusting levels. Okay. Because I. I'm watching, watching you, Fabio. And, and I don't want to think to the trade. And I only said at the beginning of your explanation three trade based on my strategy and my strategy for these three Asset md, Disney and Adobe. It was bearish when I. Yes, bearish. When we touched the core resistance and they set the stop limit above the color resistance and the take profit below the core resistance with the ratio 1 loss 3 velocity, 3 win. Okay. If I lose $30, I would like to. To win a hundred. Okay. This is the, the ratio that I. I want to give to my trades. And the first we it was I buy MD in 135. Yes, 135 here. When they touch the support. Okay. And it sells here. And I. I set the limit to the losses at year 134. And I take the profit and the system take the profit. Not me. And I win one trade. And I did the same with Adobe in and Disney, but in the opposite. I sell a position in here when price touched the core resistance and I set the.

[02:24:30.02] - Speaker 2
The stop loss right here and the take profit here. And I lose this and the same for Disney. I enter here. I. I set the, the stop loss here and take profit here. I lose two. Two. Yes, but I win one and I earn eight $400 for the day.

[02:25:13.09] - Speaker 3
Yeah, incomplete. So you also 84 hour 84 forward profit.

[02:25:19.06] - Speaker 2
Yeah, yeah, only because I follow your rules. I understand.

[02:25:25.15] - Speaker 3
No, you. No, no, no, no, no, no, no, no, no. You must give. You're taking some losses. Yeah, I can hear you. Can you hear me?

[02:25:41.24] - Speaker 1
Okay.

[02:25:42.10] - Speaker 2
Yeah. Now.

[02:25:42.26] - Speaker 1
Yes.

[02:25:46.13] - Speaker 3
No worries. You. You was following not My rules. And this is why I will promise you. You. You will. You will lose sometimes. And. And remember what I was saying, what we was doing. One good trade. Journal. And again, one good trade. But if I'm looking to your stats, it was in the trade. Out in the trade. Out in the trade, out in the trade. Or not only one good trade and journal to. To repeat what was going wrong. To understand what he was doing. And if you're doing this during the market and maybe we are not there, you were doing maybe at the end 20 trades. Yeah, maybe you will be profitable with US$84. But it could also possible that you're taking a huge drought on US$500. Why? Yeah, because it was on taking only one good trade. Respect the trade. Respect the money. Look into the trade. Make screenshots. Okay. What he was doing wr wrong, what you was learning. Then. All right, then the next fate. Because in the moment where you journal your. Your mind start to make a break from the. From that you're watching all the shots. Think about what he was telling about the casinos yesterday.

[02:26:58.08] - Speaker 3
What want the casinos that you stay on the table. That you stay on the machine. Because then you're getting no more feeling anymore. Because you get hipped and hypnotic. And this is the trap from the market, from the market makers. They wanted you doing this. They want exactly, Nicola, what you was doing. Going in, going in, going in, going in, going in. And maybe get all. Of some profits. But not always.

[02:27:29.11] - Speaker 2
Yes, you're right.

[02:27:30.29] - Speaker 3
And then boom, you're taking losses. And then the moment where you was taking some losses, you start to revenge trade. You say, okay, man, normally I take only 10 shares. Now I would take 50 shares.

[02:27:45.08] - Speaker 2
And yes.

[02:27:49.13] - Speaker 3
Yes, why? Because it was not taking only one good trade Journal repeat what he was doing well, what he was doing wrong. What you can learn. Think about the trade. Maybe this takes 5 minutes, 10 minutes. But this helps you to reflect what you was doing. And it helps you also to come back with a refresh mind. In this case, I will. I have to give you some shitloads. But he was making money. And at the end, if he was making money, he was doing a great job. But I can only say don't do this again because you will taking losses at the end.

[02:28:24.27] - Speaker 2
Yes, of course.

[02:28:26.13] - Speaker 3
And we were thinking about, right, what is the difference when I can go to McDonald's, I can go to McDonald's, can tell anyone trading strategies really simple and easy. They will be able to do the same what you was doing. But then we was talking in the beginning of this, of the, of the stream we were saying the big difference between consistently one will take in consistently probably profits or the one with taking consistently losses is the discipline. It's the patience and everything. And it was not consistent with one good trade journal. One good trade. He was not disciplined. You're losing your discipline, you're losing your patience because you was falling in a trap from the market. You were saying to yourself I have to do something now. And that now, now it comes the big part. I think the technical skills and everything is only 10. I think 90 is, is the emotion, is the. Is the mentality and everything. Otherwise you can easily taking trades and everything. Like easy. But. But I have also sometimes I can give you an example. I make three really good trades. Normally I respect the money not coming back, everything is good.

[02:29:49.09] - Speaker 3
But then I'm looking too long to the shards or my kids making so much noises. I feel stressed what I'm doing. I taking again a trade. I was not disciplined. I was a patience. And at the end I'm losing 20 of my profits because I was doing a trade.

[02:30:10.29] - Speaker 2
Yes, you're right. In fact, for. For me today is enough. I have three trades to understand and to review. Not one, three. It takes time.

[02:30:21.03] - Speaker 3
But. But he was making profits. So. Yeah, yes, but.

[02:30:25.21] - Speaker 2
But the real thing is until Tuesday I'm not able to do anything with trade view. With trade. I. I didn't understand anything of the market, my past. I only buy a stock and let's see, for six months or a year. Okay. And now after three days with Mentor Queue and with you guys, I am capable to make it.

[02:30:56.19] - Speaker 3
I'm capable. No, you. You are capable to pay your premium subscription. If you be a monthly subscriber, US$84 will cover your monthly subscription. Yes, of course they trading with us, you cover your premium.

[02:31:13.05] - Speaker 1
Yeah.

[02:31:13.15] - Speaker 3
And think about what I was telling everyone in the live stream. You have to think like not about the price. So think like. Okay, the cost from Mentor Q is like I don't know, US$89 the monthly subscription or 79. Whatever. Call the price. Whatever. Call it maybe 200, whatever. But are you able to bring back the 200 investment and can double this maybe with 400 profits or 600 profits, then the subscription is worth. So now you was making 86. And if you make at the end of the month maybe US$300 then the mentor Queue subscription is more than worth. If you invest in any shitty software on any shitty indicator and you're not able to make make risk reward from Three to one from your investment. Then, then delay this and then cancel this. That's bullshit. So. And this is something where you have to think about and Fabio, share my screen a little bit because it's really important and I cannot stress this enough because we know in the end, look at the screen. Trust the levels, trust the process. Be patience and follow your your own routes. Nicola, you see how the levels was working?

[02:32:30.26] - Speaker 3
They were working at the end. Perfect. This is now nq, but it works. Perfect.

[02:32:37.15] - Speaker 1
Yeah.

[02:32:40.21] - Speaker 3
And the market will be there also tomorrow.

[02:32:43.10] - Speaker 2
Yes.

[02:32:45.08] - Speaker 3
So, all right.

[02:32:46.21] - Speaker 1
Yeah. Thank you, Patrick, and congrats on. On your trade for today. Yeah. You can pay probably lifetime.

[02:32:57.21] - Speaker 2
Yes, of course.

[02:33:01.11] - Speaker 1
Yeah. Thank you, Nick. And again, we hope to see you again maybe some other videos in the future. And yeah, just let us know if these sessions have been helpful and then obviously keep us posted. Posted about your successes in the next time you trade. Yeah, we would love to hear it and maybe we'll get back to you.

[02:33:22.01] - Speaker 3
Of course. I sent for you one last words from me, my wife. Tell him, tell me everything, man. You have always the last word. I'm doing this here also. All right. So Nicola, you were saying something really interesting in the beginning. You want making some entrepreneur school in on your hometown or home place in Italy. And I, I think like when you, when you start trading, you have to think like also the upper side. So think about what would be now if you would be now now the entrepreneur coach and you was doing this, what he was doing with your trading. How the entrepreneur coach will maybe teach you now some lesson when you can bring this now to business. So what you was doing, how they can help you. And if you have some mental mentor always in your mind who can help you to assist you when you be in trouble, this helps you immediately and bring back maybe the trading business. And your business think about you was taking now, I don't know, maybe six, six trades. But not only one or only two. So what would this meaning may be? And your in your business where you came from when.

[02:34:50.23] - Speaker 3
When you oversizing something, when you put so much value in some. Some customer, there's a risk that maybe they cannot pay you. But you was lucky enough, you get a payment. But. But think always like. Like different where you. Where you feel be comfortable. Maybe you're a castle or maybe you're an entrepreneur. Maybe you. I don't know, whatever. But think always trading like the business where you'll be comfortable with.

[02:35:18.08] - Speaker 2
Yes.

[02:35:20.03] - Speaker 3
And then think about do you want, do you will do this? Do you would pitch I don't know. You have only one, one zoom call available one to one. But you pitch the six customers at the same time. So you can be really in trouble. If the 6 customer says, yeah, we will do this. So only for example. And then you say only to one customer. Okay, I will do this. But the other five, they're giving you trouble, they're giving you shipload. Say they damage your reputation. They're doing everything. It's the same with the trades. You was doing six trades. But the five trades, what you was doing really bad or you was taking some losses. They can damage you as a trader, as a reputation and your trader on your bank account. And the worst case, what we can lose in trading and this is something what I was learning is not the money off of the money. So we can lose money easily if we have the wrong wife, if we. I don't know if you fall in, in some frauds or something like we can easily, easily lose money in our life.

[02:36:27.02] - Speaker 3
Correct. It's no matter what in any place. But the worst case for us, what we lose is time. So think about you was you was making now the analyzing in the morning. You was picking all the stocks, you was doing a fantastic job. You was mapping everything out. This was costing time lifetime, correct?

[02:36:51.19] - Speaker 2
Yeah.

[02:36:52.04] - Speaker 3
And in this moment when you, when you're taking like six trades, boom, boom, boom, boom, boom. You must not value your lifetime what you was doing before.

[02:37:02.13] - Speaker 2
And I think entrepreneurship and traders have in common. The loneliness. You are alone at the same. When you are entrepreneurship and, and you have employees, you have partners, you have. But when you have to do business, you have totally alone. And trader is alone. Yeah. Two.

[02:37:32.09] - Speaker 3
Yeah.

[02:37:32.19] - Speaker 1
It's a Lombard. At the same time I think we have. Yeah. I think that's why we are trying to also not only give you access to data, but also build a very strong community where yes, you can kind of like help each other and support you in. In times that might not be easy because maybe one day you are encountering a very bad loss and your emotions are obviously very, very strong. And on the other day, maybe you have a very big win and you are very happy and you're very excited. So supporting each other in those time I think is very important.

[02:38:08.02] - Speaker 3
Yeah.

[02:38:08.14] - Speaker 2
And totally.

[02:38:10.07] - Speaker 3
And I think more so the community is good to have them. Community is very good. But. But there's also a risk in the community because one community can be really noisy and maybe you see one or two traders who making really nice profits and then you want to see okay, what's he doing? Maybe I can copy what they're doing. Then you're hopping from strategy to strategy and and not developing your individuality as a trader. So and then at the end you're taking also losses because you copy someone where you cannot copy and makes no sense because he's more experienced. This is. This is number one. But what is more effective and this is something. What I was doing is like find a trading buddy, find a trading partner and you must not live trade with someone. But Thomas was yesterday there he was in the call when we was in Nvidia earnings. I was trading with him I think one and a half years he was doing some. Some. Some group calls with other traders. But he was not alone and he was helping us. So we were saying okay we trading now two hours in the New York Open from 9:30 to 10 11:32 hours.

[02:39:22.02] - Speaker 3
And then we are in a zoom call with 10 persons and everyone when. When he sees something or he won't go in the trade. He will comment this. Hey I like this area now. And then what what do you think? Oh yeah, I. I like this also. So. But. But do you was seeing like this or someone else was was seeing that maybe you taking a long trade but he gives you in running. Hey maybe don't do this because you were seeing like there there is something happen in the news. It's. It's not a good idea. So you can have this with an other other body. This helps you and holds your accountability. But as you say trading is an alone game. And this is why we must be strong with our mind. But at the end we we up with our mind because we are alone. So our mind tell us the inner voice. Our mind gives us the pressure. So and how we how we can stop this is if we find some. Some. Some community what we have. We have a strong community on mentor Cube. But careful with the voices with the noises and also don't copy other traders.

[02:40:24.28] - Speaker 3
This is more like just for fun. This is trader talk. This is like speak to other traders who are like minded and everything. But it should never be in trading advice or copy someone else. But find a trading buddy maybe start a zoom call with all with an other people would trade the same. If you like to trading stocks find some other one who's trading also stocks. I was trading with someone who was trading all the day Tesla and I was trading the futures and Q this was helpful for me by the way because he was an expert in Tesla. I was an expert in nasdaq. He was helping us Each other. This was the time where Tesla was crazy with. With when Tesla goes crazy to the moon. And Tesla was moving also the nasdaq. And when he was seeing something. I know exactly this can move the nestech. But when I was seeing something the nest egg. I know this could be happen also for. For. For Tesla. So he was helping us. But at the end he was trading together. He was trading Tesla, I was trading nq. And this is the same what you can do find.

[02:41:28.10] - Speaker 3
Maybe I like my like minded was maybe on the same country where you are or was worldwide. And then see if you can trade together.

[02:41:38.12] - Speaker 2
It's a good advice. Yes, thank you.

[02:41:44.02] - Speaker 1
All right.

[02:41:44.14] - Speaker 3
And if you feel loneliness, then cry or. Or jailing. And then your neighbors come automatically to you and single what the crazy guy.

[02:41:56.00] - Speaker 2
I feel pretty comfortable alone.

[02:42:02.20] - Speaker 3
And also do you some favor if you're trading alone. Record this. So what we're doing now with. With the tool what we have. Maybe you. You have scream your share.

[02:42:20.05] - Speaker 2
Okay. Okay. Yes.

[02:42:21.18] - Speaker 3
And then have the camera on so that you can see your camera, your. Your. Your face. And then. Then look into this recordings how you was reacting when you were taking wins emotional. How you was when. When you was in the losing position. Do you say some square words to yourself? How was your inner talk? Because you don't remember this. But if you see.

[02:42:44.19] - Speaker 2
Yeah.

[02:42:45.16] - Speaker 3
You think like holy, I'm a freak. And then also see about when your eyes getting. Getting tired or sleepy. So. And after what minutes you need a break. So you can find in the recordings also some really good values when you. When it's possible to start to trade. When you should stop to trade. When you should go outside for. For a walk or something like this. They are little tiny Hanks.

[02:43:16.06] - Speaker 1
Yeah.

[02:43:18.04] - Speaker 3
And always have cola Red Bull. Everything on your side that you never feel.

[02:43:23.27] - Speaker 2
So I. I have only water, but no espresso.

[02:43:28.20] - Speaker 3
Come on.

[02:43:29.27] - Speaker 2
No espresso only work. I don't know. Maybe it's grass.

[02:43:37.10] - Speaker 1
Great.

[02:43:38.06] - Speaker 3
Great. Yeah. All right. Look at this. Everyone is different. So in the morning and I need espresso before I go sleep. I need espresso. So. Yeah.

[02:43:53.11] - Speaker 2
Before sleep. You need espresso before sleep?

[02:43:56.08] - Speaker 3
Yeah.

[02:43:57.11] - Speaker 2
No, no way.

[02:43:59.09] - Speaker 3
Yeah, I think espresso before I sleep anymore.

[02:44:02.29] - Speaker 2
Yeah, it's not healthy.

[02:44:06.29] - Speaker 3
Oh, I sleep like a beam.

[02:44:08.29] - Speaker 2
Okay.

[02:44:15.02] - Speaker 1
All right, guys.

[02:44:15.18] - Speaker 2
Thank you guys.

[02:44:17.07] - Speaker 1
Thank you, Patrick and have a great day and keep us posted and see you soon.

[02:44:22.01] - Speaker 3
Yeah. Great one.

[02:44:23.09] - Speaker 2
Bye Bye.