NEW: Live classes are posted - Click here to see the calendar!

Ep 29: Tweaking Your Trades in the Stock Market

March 19th, 2015

Listen to the Podcast

Welcome to the Rapid Recap I’m Sasha Evdakov. It is March 19th 2015 and today we'll talk about Tweaking Things. Tweaking Things internally just getting better and improving yourself and in fact talking about improving yourself, i did talk to a few people this last week I released a free chit-chat that I'm just trying out just to see how things go.

If they go great then fine if I need to stop it then we'll stop but I if you want to go to the website and go to mentoring and then free 20 minute chit chat you can fill it out. It’s just my way to contribute back, fill it out in great detail and I'll give you call based on the time slots that you check marked.

march-19-2015-tweaking-things.0003

The more that you can check the easier day it is going to be for me to reach you. Some of you mark just Friday eight to nine and sometimes that might be tough to hit if you only check mark one time. So the more that you click the more that you check it’s just going to be a lot easier for me to reach out to you and just get in touch and we’ll chat some stocks.

We’ll talk about your trading behavior, what's going on with some stocks that you're watching and if you just need some help great, if you want to reach out and grab the help by all means do so if you don't then you don't have to. I’m not forcing anybody it's just my way to help out the ones that are motivated and want to learn.

With that in mind to talk to a couple different people I talked to Susie, Ruben, Phil and few others. I can't think off the top of my head but did reach out and just chat with a few different people and I’ve notice that there are a couple different things people are going through and some issues that they're having.

Some people are hesitant to pull that trigger some people are unsure of when to get in. Some are unsure of when to get out, some are unsure of their confidence. There are a lot of things that I guess we can adjust and there are a lot of issues that we can focus on because as their individual issues there's a lot of different ways that you can approach correcting them.

Today i want to talk about tweaking things and just getting better at things and that's kind of the goal for this week's Rapid Recap and of course we'll talk about some stock. Some people wrote to me saying that they had some trouble with the overall market, just when people talk whether that's Obama whether that's other people in general whether that’s Yellen on the Reserve Board.

We get a lot of movement and that does happen, people typically waits for these announcements and then they make decisions based on these announcements because for them it's a huge influence for the big money managers this is very critical and important.

Now typically I find that these kinds of things usually last for one or two days and then after a few days whether that's a rally or a sell-off things usually level back out, meaning they go back to what they were or it starts pulling back in the way that it was. Whether that's going to the upside or going to the downside.

march-19-2015-tweaking-things.0037

Tesla for example, we had a massive spike the previous day when Yellen came out so how big was that spike, seven points so not extremely massive but seven points but then today the bar spread was around nine points or nine dollars on heavier volume.

Even though we spike the previous day after Yellen talked now I mean obviously if you look at the stock, the trend has been to the downside so it still continued to pull in that direction to the downside.

march-19-2015-tweaking-things.0046

We have the same thing happening in stocks like Caterpillar, I mean we've been short the stock for quite a while, create a lot of ABCD patterns and you can see here the lows and then breaking lower. So even though we had a nice little spike there again we did a little sell off here today just because people take profits.

Usually after a massive spike like that you want to take profits and that's what people do that's what the big boys, the money managers that's what they're doing is they're reducing the risk and that's why these stocks sell off.

march-19-2015-tweaking-things.0053

Today looking at Dow Jones, have 118 points sell off, that is because we had a massive run the previous day, 378 points spread, spread meaning from the lows to the highs. So little over 378-380 points spread.

We're hitting these highs right here and it's a good selling opportunity after a nice spike so this is what typically happens. Now me personally I don't like to trade the day of when these announcements come and the Fed typically has 8 meetings per year but sometimes a little more and you can look that up on their website but typically they have about 8 meetings per year and more if needed.

Before these announcements, before these job reports, before these unemployment numbers all these kind of things before Obama speaks you'll typically get some volatility and that is when you just sit and wait to see how stocks develop and the reason is you want to see what the big boys are doing.

You want to see how this impacts them because they're managing a lot of money and for them it's very important to know these numbers, to know these figures. It's also a way for them to justify their decisions of why they did what they did so there's a lot of bureaucratic things that go on also in the company's and regulations.

In that standpoint those days are going to be volatile so until that announcement comes out usually you don't want to trade instead you stick to your positions for a while and you stick to your stops. So if you've been in a position for let's say two weeks then whatever you see you have to kind of embrace it because it can really whipsaw you around kind of like earnings.

You need to have a clear mind up of where your stop is and if you've been in the longer position then usually it's fine, it's not a problem so like Tesla for example if you've been short and you've been short let's say the 220 is that 7-8 point run is not a big deal because you're riding the stocks for a while.

march-19-2015-tweaking-things.0070

Looking at WYNN here we had a consolidation pattern here broke, you're riding that stock for let's say two to three weeks for 30-point gain. So when the stock went up here for 15 points you're not worried and then again it continues to sell off.

You have to look at the long-term and the bigger picture and that's tough to do because as your balances are shifting back and forth it makes things a little bit more nerve-wracking and a lot of it is that emotional inner game that we have to go through so over time you'll get better and better and it's kind of like cooking.

I want to use the example of cooking because most people in their life cook or at least have cooked or tried to cook or will cook at some point in their life and it’s something that we can apply. Me personally I love cooking, I enjoy and I like this guy right here Byron Talbott, eggplant recipe, I like this recipe actually it’s a good recipe.

For me I enjoy the cooking and it’s something that kind of fun I guess relaxes me gets me away from the computer and we all have different hobby. This guy he cooks well, he was a chef and a lot of subscribers, a lot of the cooking shows, a lot of subscribers but that's not the point.

The point here is the fact of cooking so when you're first getting started and you’re cooking and you’re getting going in whatever recipe that you are starting usually you're horrible at it because you don't understand what you need to do, you don't understand what temperature to set things at or how much to add but as you progress and as you get better and as you watch the recipes then you start to really get a feel for what it is that you need to do.

You start to get a feel for how long things need to set there then you don't need a timer. You start to get a feel for how much of spices, how much sugar, how much things you need to do or add to make that recipe taste good and as you do it more and more frequently it'll get easier and easier eventually you won't have to measure, eventually you won’t have to even have that timer and you start tweaking things.

Now at the beginning you do your recipe and you follow it to the book but after a while you start tweaking things. As you get better you start adjusting things, you start tweaking things, you start modifying ingredients, adding ingredients because you got it. You start knowing okay this is what I like, this is what it tastes, the way it tastes good either this way or that way.

You start adjusting it to the way that you like the recipe and I think if you apply this concept to investing the same is true. First off, you’re trading or you're looking at trading at the beginning you may not like trading big stocks, you may like trading small stocks. Small stocks I like on the AMEX. The AMEX has a lot of small stocks.

Let's take a look at the AMEX and as you look at these stocks you notice there four dollars, you notice there 20 cents and the AMEX has a lot of weird things going on in it. So we got these two dollar stocks and this just might be one of things that you start raiding first and you start getting into trading because you like trading the cheaper stocks but as you get better as you fine-tune things when you're managing let’s say five hundred thousand dollars or million dollars.

march-19-2015-tweaking-things.0267

If this stock let's say for sixty cents it’s trading only 2000 shares and that's basically hundred and twenty thousand dollars. So sixty cents times 2.2 so 2000 let's just say for easy sake. You’re basically looking at a hundred and twenty thousand dollars to move this stock that's how much it’s trading in a day.

When you’re first getting started you may say well I don’t have a lot of money, I want to trade more shares and okay that might be your starting point but as you start getting better as you start tweaking things okay you're going to need the liquidity. That's why the big boys they can't trade small stocks you can't trade small stocks because you can't get in and out of them easy.

If they put in hundred twenty thousand dollars they move the stock easy, they put in three hundred thousand dollars the stock will go to the moon compared to where it is right now, it’ll go to a dollar fifty. I mean you’re trading 150 thousand shares at the most in a single day that’s at the most.

You'll slowly start adapting, adapting your strategy but you got to look at the end game at the end game of what you want and the picture so if you want consistent income, you can be selective and be patient for your trades.  If right now you're not patient you slowly start tweaking it you need to start tweaking these concepts.

Like for example on WYNN if you didn't spot that ABCD pattern so here's our A let's get the screen drawer here so here's our A pattern right here A to B, B to C, and C to D, it’s a classic set up and those of you that studied technical analysis for a little while you would have seen this pattern and it worked out beautifully but maybe you didn't see this pattern because you're used to looking at smaller stocks or you’re used to looking at small moves for one or two days.

If you understand then you want the longer moves, you want the longer-term moves because that's what you want to do, you want to be a little bit more calm then you’ll slowly start tweaking things just like a recipe, you’ll slowly start adjusting things to where you want to go or to the way you want it to taste or the returns that you want so it's an adjustment process and it takes time.

First you might trade the smaller stocks then you might trade the bigger stocks then you might start getting in the options later so it's an evolvement you’re constantly evolving. I want you to start looking at these things and slowly making adjustments because you're always trying to improve and you're always trying to get better and that's the key, that’s the goal because without that you'll be at that same level on same place at wherever you're at.

Always continue to grow and continue to improve that's the key.

Let's get back into some stocks and let’s just talk a little bit about some stocks, I talked a lot about theory here. So let's talk a little bit about some stocks, let’s just start with the Dow Jones. We have here little bit of a high here that's coming up here and normally I was more bearish because I’m still looking at the bigger picture.

I would want this stock market to come down at 13,000 to 12,000 - 9,000. I would love it for it to come down there because it creates new opportunities. Will we get that?

Maybe not and if we don't you have to be selective but you can look at this volume as it's been dying down slowly, you can see we're not increasing in volume. So it's building cost for something, its building cause and you have to be patient.

This means that if we break these highs here, let's just say these highs right here, we could see higher prices. Does that mean I'm still going to be close minded and say oh we're going lower? No! I'm going to trade with what the market is telling,  I'm going to trade with what it's giving me rather than go against the grain because you go with the trend.

In this case looking at all the other things that I watch like the SPIDERS, the IWM, watch some indicators some international markets as well you got the QQQ so I watch a lot of other things as well and we're starting to push a little bit and that fuel from the Fed kind of gave it a little bit of extra juice.

I'm still not on board yet for the long side because I have a hand full of short positions but we're pushing, were pushing on that level and as we push we can break through, we did on one position today.

march-19-2015-tweaking-things.0178

Simple Facebook position because if you watch the weekly and again I hate Facebook it's not my thing so anybody that's following me on Facebook, I don't post anything there it automatically gets Fed maybe one day we'll have an assist or somebody else to take care of that for me but normally I just make videos because I find the videos are helpful for you guys and that's what people get a lot of value out of.

I don't care to measure my likes my statistics, it's not important to me. What's important to me is when I talk to you, when I reach out to you, when you reach out to me. If I can help you and you're getting something out of it then you win so that's my goal. Here with this stock, with Facebook although I'm not a fan of the business model and it was pushing down right here at that 74-73 dollar level.

After a little while it did start pushing back up and it broke through so it broke through this today and I was watching this last bar right here and the reason I was watching it was because it was pushing against these highs. So we're pushing here once it sold off and it sold off heavy, there's the heavy volume.

march-19-2015-tweaking-things.0176

Tried it a second time, sold off again then we had light volume right here then we had another couple of attempts not enough juice but then now you can see the juice and the volume is picking up right here. So where did I enter? I entered right there on that position and I'm in fact they did tweet about it.

If we take a look at Twitter here you can see that a post of this one about 7 hours ago and again I don’t post a ton of stuff on Twitter but if you follow me there you can get a few alerts from time to time.

We posted it at 82.57 this was already when I was in the position and it was moving. We already had almost ninety million shares within a couple hours there of getting that stock out. Then what happened was 82.75, so we continued higher through the day and it continued to push so we entered huge on this position and as it continued to power higher you take a little bit of because what do I know can happen to the stock.

I know that the stock can come back to this 81.30 dollar level and test it. I know that it can come back so you're always watching that risk so this was just one position we added to and still have some of the other positions mostly short stuff.

march-19-2015-tweaking-things.0189

Apple as well here, this one we talked about this one powering here retracing and then potentially balancing. Now right now this stock is kind of it's not showing its hand one way or the other, I would personally if you're not in it and if you didn’t take profit on the strength wait till it clears this 132 level on volume to get into that stock or if you see it come back to this 121 and bounce you could add a little there are but wait for that bounce and confirmation because what can happen,

Let’s use Facebook as an example here is that it can come up to those highs BOM and reject them, it can come up and reject them, it can come up and reject them that's why you wait for the break and if you wait for the break you can get some good moves.

For example one stock we talked about previously was Cracker Barrel, again another nice long position a good win that has been working out really well for me. Here you can see that this stock right here broke the highs, nice heavy volume, right here; here's what we got nice heavy juice. We have a slight little consolidation pattern that happened right here.

Here was our consolidation pattern came up to another adding opportunity right there and you just continue to hold up well, we have some bigger up volume spike rate there which helped fill that stock again so we do need a little more consolidation but this stock’s holding up well and if it comes back to 148 could be my quick stop, 146 could be the hard stop because I know the potential of what the stock can do if it starts to sell off, we have a gap right here.

I know that that stock could come back to this 135 level and nothing be wrong with that stock because stocks pull back people take profits and then it can continue powering higher. So what else do I watch and why do I look at this? Well there you go guys we got the A to B, B to C, and C to D, pattern. Do you see it? Let's look at it here you're A point let's just take it right here, your B point right here, C point, D point it’s going to be up here.

So there’s a way to calculate that but I don't have time to get into it right now it's in one of the courses so here there's the ABCD pattern that's really being created that's my second confirmation on that stock is when I watch these things and I see things.

Most people they look at just but daily but you got to watch a lot of things and see what's in your favor.

march-19-2015-tweaking-things.0220

Let's take a look at ESPR working well, here again daily BOM three-day run. Little overextended we went from 80 to 110 in just a few days. I mean it’s a monster stock with a monster move. If you look at the weekly, again works well we talked about it last week we've been talking about it just review the recaps it's there.

You can see how we were watching the stock I think since February and massive run massive one for a lot of people that have been following me.

march-19-2015-tweaking-things.0224

Starbucks same thing BOM, right here we have sideways consolidation power higher, slight little retracement. Again breaking higher right here, here was your adding point and right here is your stop so it’s pretty simple stay in and that’s it you’re in and if you've been in this stock since even right here on this break, I mean you're just sitting, you’re chilling and relaxing and you're doing whatever you want to do.

If you want to read books you go read books. If you want to I don't know make videos on YouTube you can make videos, if you want to cook and take cooking lessons you go do that but in the meantime when you got it right here in this stock it continues to run, that's all.

That's all you got to do it's nothing complicated you got in and now you be patient glue your hands down but you got to know that, that entry point was good you got to know your charts and it takes hours it takes hours of studying these things and it's going to take time.

It's going to take time to build that confidence just like in cooking. It's going to take time to build the confidence when you're making recipes because you got to know the ingredients, you got to know what it takes to make something taste good.

Just like this guide you got to know what it takes to make to see a good healthy stock chart and not every chart’s going to work out, sometimes you get some bad ingredients and some bad stocks and it happens but in general if you have the right setup, you stick to your plan, your disciplined.

When you get into these stocks like this one even you got in it right here BOM, let it run and you just sit on your sand for a month, you sit on a beach, you’re sitting with your family you're reading a book you’re doing whatever you want to do it's totally up to you.

march-19-2015-tweaking-things.0246

Alright next one let's just do JetBlue. JetBlue again same concept, we got a little sideways pattern right here BOM, sideways pattern right here stock broke again, popping higher, nice heavy volume. There's your cluster of volume right there, working out well and this stock has been working out pretty well in a lot of levels.

Even if you take this our support line right here, even though it’s a cheaper stock you can see that this level it's been holding up and trying to hold up and then again we’ve been stair stepping in this fashion on the stock.

Let’s do one more ACT, here's another one. Talked about this one actually in the course I believe I mentioned this one in the technical analysis course. Right here, here was the highs and continued to break and really if you look at this weekly chart I mean this stock is pretty simple BOM, BOM, BOM, BOM.

Multiple stair steps, it keeps powering higher. I mean you could draw lines all over this thing and it's so clean, it's been clean. IT doesn't mean it can get messy but it's been clean and it's been a solid win as well.

I'll give you one more haven't traded this one but we did do it on the recap just because it's a cheaper stock and I didn't. For me this stock, it worried me so I didn't trade it but it's been a moving well because of these higher bearish volumes spikes.

For me this was a caution sign but it did end up clearing this line right here and this would have been your entry point because it still went on heavier volume but because I was already in a lot of trades and positions there to the short side for me there is no need to trade it but we did talk about it  a handful at times and so far it's paying off well, it's working out great for the last 13 days, 6 percent gain.

Can't really beat it and it powers higher today so working out so there you go that's kind of the recap. Couple other stocks just in case there’s CERN coming in, we have PTCT also powering higher I mean there's a lot of different plays out there but it's the, you got to pick the right little acorns.

You got to find the little things that are working in the market because the market itself if you look at the Dow, the S&P, IWM you know that they're kind of moving in and not the best way but there's ways to still trade if what you're doing and if you're watching specific stocks.

Thank you for joining me. I hope you got a lot out of this, remember of it in terms of cooking you're going to get better, it's going to take time after you make that recipe, the second time, third time, fourth time and fifth time you're going to get better and better.

The more times you do it the less focus you’ll need to be on it. Meaning you'll be able to kind of do things with the back of your mind. You'll be able to let the trade sit there and create an income stream for you or at least build your retirement or whatever it is.

For me I'm a simple person very simple, I like things very simple. I don't have wild and crazy vehicles. My emotions don't get the best of me. I know that some of you showed me some videos of some those stock traders that get really crazy and try to pump and promote their products.

For me that’s not my end game because I don’t need to do that, my goal is to teach and I don't worry about how many Facebook people are following or following my Twitter but if you get something out of it, if you get some knowledge if you have questions then feel free to ask me, I'd be happy and delighted to help you and reach out.

If you want to fill out that chit-chat request then go for it but just check mark a lot of times as many times as possible because if you don't then it'll be tough for me to reach out for you because I do value my time and I do want to help you if I can and we'll see how that works and then I may decide to keep it or we may decide to close that out.

With that in mind thanks for sticking with me for this half hour and I hope you got some stock ideas from it. I hope you got some improvement ideas to just get you better, remember that we all shop at the same store whether you're are making five hundred dollars a week, five thousand dollars a week or you’re making five million dollars it doesn't matter.

We all buy the same brand we’re shopping at the same store so be respectful, help each other out in the community, help one another, be positive and I'll see you guys next week.

Thanks again!

Author: Sasha Evdakov

Sasha is the creator of the Tradersfly and Rise2Learn. He focuses on high-level education speaking at events, writing books, and publishing video courses on business development, internet marketing, finance, and personal growth.

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

Join over 31,258 regular people who are bettering themselves in the stock market.

Click Here to Sign Up

This is a community that is motivated to learn & improve their skills.
Join us and get free training lessons, freebies, and exclusive promotions.

want some helpful advice?

pay per minute coaching

I am scheduling helpful coaching sessions for people who are interested in real-world advice & guidance where you only pay per session. No long term commitment required.

Learn more
This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.