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Welcome to this week’s Rapid Recap. I’m Sasha Evdakov, it is June 4th 2015 and thanks for spending a little bit of time with me today. Today we're going to talk about What if You Had All the Money That You Wanted.
If you had all the money that you wanted, what would you be doing and it's a good little exercise to do and to think about because it helps you plan your focus and plan your future.
I'm not sure if we'll get to all of them it did post on critical charts here for the members, for the charts just because some other things that caught my eye like AFAM and a bunch of other charts in there as well but we won’t be covering all of those obviously because that's more for the members and there's a lot more charts there but we'll talk about some charts today.
I had also few questions this week about the shorting book so some of the projects I'm working are right here on the right side on the website and it gets updated probably once a month here and there as I progress with projects you know just to give you some insight of what’s happening.
We’ll be coming out with a 245 Money-making stock charts book focused specifically on shorting so it’ll be also 245 Money-Making Chart book, specifically though on shorting. Now I expected it May 25th but because of the proofing, our people reviewing it, you know it just takes a little bit more time. I don't rush these things too much just because I don't want to have a lot of issues or mistakes with the product that I have.
I don’t want to have a ton of mistakes in the grammar in the book and you know that just really… A lot of people they just get unhappy with that, I could release it now but it would be unproof so we're going to wait a little bit and probably the to give you an estimate let's say the first of July, or July 4th that would probably be a good estimate of when it would be available and be ready for purchase so right around that weekend.
In either case I am also going to do a Penny Stocks Book although I'm not big on Penny Stocks just because of the liquidity that you have to go through, there's not enough for me. If you buy a couple thousand shares it just moves the stock way too much.
I usually can't trade those but I like studying the charts and i like studying all sorts of charts and those will be to the bullish side longs and also short so it'll be a mix between the two books but specifically focused on stocks under 10 to 12 bucks just because its penny stocks.
Usually five-dollar stocks and less or two dollar stock and less but this book will cover the cheaper stocks, ten dollar and less stocks, mostly ninety nine percent of those charts and I just enjoy studying the charts because it just makes me better even though I may not trade the penny stocks but looking at different types of stocks it builds your trading muscle and for me by creating these books it's not really the on the purpose of selling them.
It really helps me more by doing them, and I make much more from the wins than just from the book sales but it's a lot of great material to just learn from and review just to build up that trading muscle.
Then towards the end of the year, may not hit it this year maybe January of next year just because we may be going on vacation in November so we'll see but my last course of the year for stocks, will be the Options Mastery for this year so that'll be the last stock market course that I do for this year and that's just because it's so huge, it’s going to drain me mentally and it's probably going to be the biggest course that I ever make, I don't know we'll see.
Might make a bigger one but it’s a lot of material to go into an Options Course because options can be complicated and we need to break those things down so everybody can understand we already have a basic course and that'll build upon the basics course that we have.
In either case those are the news those are the updates, you know today actually I didn't read much, I didn’t have the market going on too much but I was helping a neighbor actually doing a little bit of move there with some boxes and you know he’s off to schooling into another our state over there New York and I would crank up the volume and it's kind of funny.
I crank up the volume to the stock's and if the alerts hit you get different signals and signs that are just yelling, blast off or you know an explosion effect or like a glass breaking kind of a sound effect and people would be wondering or looking around like what's happening and what's going on because you know I want to hear the alerts but just a little funny thing you know and for him his journey is he's getting here engaged soon and moving off to New York and building his life over there and for you,
You also need to kind of decide where is it that you want to go, what is it that you want to do? And if money was no object what would you be doing right now. For me personally I like to write books, I like courses, I like education. So the foundation for me is primarily education.
Now the tool that you use to get to doing what you want could be stocks or it could be something else but really essentially you're always moving forward and the end goal is knowing what you want and if you know what you want, you know the direction and path to go through.
If we use the tool, stocks, trading on the stock market to get to your why, to get to your reasoning of what you want to do. Do you want to party all day and all night? And spend a couple hundred dollars on liquor and booze or do you want to go when feed a family.
You know do you want to go help out at shelter? because you don’t have to worry about money you just want to donate your time and for me that's one thing I'd value and that's why I give so much of my time to this, to education because it takes a lot of time to teach people and I value that for me the most precious commodity is time.
I can always make more money. You can always replicate and multiply it you know get money through exponential means through leverage using other people's money and resources.
It's just a resource but time is not something I can get back so for me this is why I always love talking on the phone with some of you guys that you know really are hungry knowledgeable that just say hey I need five minute I have a question or that send me an email.
I'm always happy to write back and I write back usually paragraphs and that's usually due to because you know I just speak and it types for me that's one of the easy ways of doing it but in either case it's really just to give back based on you know my most valuable resource and that is the time and knowledge and education.
When you were looking at these stocks when we're looking at the markets you have to know why are you doing this. So whether you are trading micro trading, small training or trading larger for longer-term trades you have to understand when going into a trade what is it that you want to do.
If you're doing micro trades and you’re doing very tiny trades you could be trading right here in this region just for that little break when the stock broke out right here and then you know sold it off when I went back under the line.
For me I don't like those kind of trades but for you that may work out well for me that's not my goal and it’s not the way I like to trade. On the flip side, you could see that okay the stock or the market actually shall we say rejected prices over here, we tried to reject over in this level and then we also attempted more rejection here.
The stock couldn't even get higher. Now it came here and you can see it started that rejection on this line so this was your opportunity to go short. We played around right here a few bars but it didn't break through. A word of advice, strong markets, power-hungry markets, break to the upside very easily. They'll break these levels quickly.
Markets that are lagged, isolating you know doing these kind of things they’ll play around in this region right here and they don't break out so that's just the tip but right here was the opportunity again to go short and now you had this short even if you missed that you had the short opportunity for a few days.
Even if you got in late, let's say you got late because we know stocks bounce and if they bounce on lighter volume you got in late right here you still had a good little run. So that run would have given you 219 points to the downside because you noticed that it rejected higher price right here and you can take a look at that on the S&P very similar you know you can draw the line right there.
It’s a little bit different with the S&P, we had some isolation over here but the high bar rejection happened you know right here at this level there's the Y-price spread bars. Look at this one wide price spread bar. We power higher on lighter volume something I went over in the technical analysis course.
Lighter volume; let's say we had right here on this $125 million to the downside and then 93 million people tried to push it higher. Which one is going to break down? You know who's going to win?
If you had 125 million people, let’s say arm wrestling against 93 million people who's going to win? Right, which group or a tug-o-war whatever, right there rejected continued lower so you know it's an isolation market but that doesn't mean there isn’t stock picks that you can trade.
You just have to be aware what condition we’re in so let's just take a look at some stocks. We talked a little bit about SAVE. Previously we watch this longer-term trend line support line right here.
The stock broke giving you a nice twelve dollar run to the downside and even if you caught it lets say late and you’re exiting it right now late you still had a two to three dollar profit run right there and that's if you're late, tardy to the game and you're late to exit.
It's just getting in at the right trend lines and that trend line took five to six months to build, it took time.
URI same concept, look at this trend line. Here we have a couple months of trend line, stock breaking popped a little bit higher and now again it's starting to pull back. Now this one's potentially could you know get to 95 or maybe even a hundred, retest things and then could sell off again.
You watch the action so like in SAVE anytime we get these little bounces right here this stock is going on lighter volume. Anytime we get the sell-offs they’re on heavier volume.
Let’s take a look at Chesapeake, CHK same thing, here we have a long trend line and you can see that the initial energy, these things repeat time and time again. They repeat like human behavior think of this like your best friend if they like to work out every Wednesday, they're going to work out every Wednesday most the time so that’s what you're looking.
Here we have the upward support line, you know we had a huge break let's just talk about it here, huge break A pattern right here A to B, B to C, and C to D. So we had a huge breakdown then retracement on weaker volume then again volume picks up, huge break, retracement again on lighter volume and now we're breaking again all that energy, that energy.
Let's make it a different color, the energy from these trades and these traders right here and then the energy from these traders, all comes back and then they come back in here.
What happens is these traders right here they take profits during this time, right there. So you got people that take profits so they're selling here and then they're taking profits here. Then again they're selling again and they’ll take some profits if it pops a stock. They're selling again and then will take some more profit that's what happens.
GMCR the stock, it can't get out of its own way, look at the weekly. Looking at this weekly you know we reached the high, sold off heavy volume of the highs right there and then what happened with the stock is we continued lower, we bounced right here at this support, there it is right there, there it is there. We bounced here couldn’t go higher, rejected the higher prices. So there's our line.
Rejected higher prices here came back isolating for a little bit, broke through that line and now is continuing lower. If you got in at this stock right here that's at the right time, if you really wanted to be really picky you could have gotten in it right around at this level when it's wide bar to the downside.
Notice the difference, we have wide bullish bars here and this is where things change wide bearish bars and volume. Look at the volume descending and then a pop, decreasing and then a pop. Again bouncing here but the red bar comes down learning the breath of the stock and this used to take me hours, I’ll spend hours on one chart looking at that daily.
Then you're looking at the daily the same thing okay we got, if you look at this chart alone right here just look at the biggest bars let's make things simple the biggest bars, what do you see? Red bars, if we zoom out and we go a little bit to the other sides I got to zoom in a little bit so if we skip that area.
Let's just go here you can see that in this level where do you see most of the bars? Green bars, you got green bars right here mostly on the Pops. Now as we move a little bit over right here now we have one red bar right here that’s pretty big but then again we had green bars.
You know, just looking at things in context, you know on a simplified version just look at the big bars and it tells you the direction if you still can't tell change it to the monthly. Monthly chart that means what's happening for that month, each bar is month. So this month is red, second month red. Red, what do you think’s going to happen next month? Probably red, but no we got a fake out, we got a bounce that's what it's important to learn the patterns.
Then next month where was the trend? the last three times was red. Average it out with three to one where it's going to be red, red, red and green, probability is red. What do we get? We got a red one then again what's the probability? Probability we're going to get another red one but we got a light little green one then what's going to happen? Probability again red, we got more red out of that batch and we did get a huge red month previously.
If you simplify things down like that you add volume, volume tells you how fast, how fast if I’m looking at the monthly how fast things are going to be going and even if I look at the monthly right here relatively to the month, look at the overall A to B, B to C, and C to D we hit our projected move for those of you veterans that have been following me for a while A to B, B to C, and C to D.
Once we hit that move something new happens and what happens sell-off so you would have seen that, you would have seen them all.
Alright and I want to dwell on it too much, simple practice right. Just learn in the stocks how they moved CMG same thing right here, got in this trader here short the stock down thirty three dollars or up thirty three dollars in profit you had, let’s say thousand shares times thirty three dollars, come on, that’s now you're living the life and now you get to decide what is it that you want to do.
What do you want to spend time with? Do you want to go teach kids? Do you want to go feed the homeless? Do you want to help your friend move?
Do you want to go out and play basketball? What is it that you want to do? This one trade right here alone could set you up that one trade you just have to be in one trade. Just a few trades can make your year, that's all you need. You don't need to trade every single day that's why I have the pleasure of doing what I love to do and you know reading and writing education, all this kind of stuff.
Making videos helping you out because I can do that because I don't have to trade every day if I get in the right stocks I know that there are the right stocks moving the right way you sit on your hands. You sit on your hands duct-taped if you have to. Sit on your hands and be patient. By the time you're three to six months into the market, in terms are from January to let's say June you can already make most of your financial well-being and you could be done.
You could be done in 2-3 months and then the rest of the 10 months you could go on vacation if you want you know. So you have to decide what is that they you're going to spend your time on. You could sit and play video games all day you know we can sit and watch movies all day but you know after a while these things dwell on people because we normally and naturally we want to be productive and we want to contribute to society as you have all your life.
For me I like the education, for you, you need to define what that is and slowly start doing it. Slowly start doing it, integrating it so just because you're not in the state there yet doesn't mean you can't do what it is that you want to do at least a little bits and pieces maybe not to the extent that you want to do it but bits and pieces.
Here it is same thing Waste Management, upward trending BOM, break, I believe we had earning somewhere around right here so you would get out most of your position and then you enter it back again right around that level.
I don’t trade earnings just so you guys know. Again I stress that all the time but I get out of them. So you could trade this part, exit here before earnings. I think this bar was earnings bar so you don't trade there. So let's say you got in right here again and you had this run to the downside.
So you basically would’ve made from here to here a buck you would’ve made a buck and then from here you would’ve made A buck and 70 so about 250 on the trade.
250 is not bad you know for a stock that moves like this. 250 you know two dollars even, thousand shares 2000 bucks it's not bad at all. There’s a lot of people struggling to make two thousand dollars in a month. So 2000 bucks definitely not bad I’ve been there.
DRI, this one this one's an early one that’s starting to break again here we have the ABCD structure, A to B, B to C and now we're breaking that pattern just like some of the other ones we talked about. This one’s building, the volume isn't huge yet so watch what's happening.
Right here we went up this one right here on this bar. Now we're breaking that with more volume. So take a look we had 1.3 million on the break we had only 800,000 on the pop. So this one should potentially get lower to at least 61 if not lower if we do the projected move potentially 57 if it picks up speed but we'll see you have to really watch how the speed comes in on this.
GoPro again you know people get too antsy. Be patient when your trading and just want to mention that last point is that you know you had an opportunity to get into this stock back at the IPO price or near there. This was all the excitement right here stock sell-off and now again you have growth that may be coming in or value buyers or it could just be a retracement to this level and then it could sell off further.
You’ll have to kind of see but what I want to mention to you is that you have to be patient and when these stocks right here people are talking about it, people are yapping about it. The TV, the news channel, be patient because the opportunities are going to come whether it's to the upside or to the downside you don't have to trade in this first month or two months.
Now you could've you could have done a different right right here then waited for that stock to come back to the IIPO price and now you have the potential for that run.
Alibaba the same thing you know here was your IPO price and now we're getting back to that level. Just to let you know that it's a stock pickers market, we've had some other stocks that were running well. So if you take a look at GT we talked about that one for a couple weeks and the stock broke that pattern right there, it's a slow mover so you know you get three dollar gain out of this but.
Now the volume I told you that this bar, volume bar right there is a caution sign and now we're starting to pull back on more volume so always be cautious and mindful of what's going on and how's the stock behaving if there's a clue.
So always peel some in the strength so those are just some things and thoughts I wanted to share with you this week. Actually let's see we missed LEAF, one more this one right here getting into the gap starting that break you know watch it closely and it has the potential to get into this gap and then fill that gap if it picks up more volume.
Take a look at that weekly you can see that it's picking up on that speed so you’re just watching it closely right now. I'm waiting for this level right here to break actually rather than this early line. So potential entries for the short side would be probably 45- 45 -45 so give or take a couple cents on that line as well as a stop then definitely peel profits by the time it hits about 41.
I wanted to share with you some thoughts and insights, you know remember the bigger picture of why you're doing this and if you have had a lot of money a lot for you. You know a lot is a relative term but if you had enough for you to live what would you do you? What would you do with it? What would you do with your time? Think about that. Think about that because if you know your goal, if you know your direction then you know the path to go to.
If you don't know your direction or you don't know your destination you don't know where you want to be then any road will take you there. So if you don't know your goal your objective you don't know where you want to go, you know you sit in a car and just start driving you could drive around in circles because you don't know where you want to go or if you have a destination in mind you could travel from New York to California.
If you know the destination you know why you're doing it and what you want out of it, if you had all the money that you needed to do what you want to do, what would you be doing? Think about that as you approach this business, this business of stock trading and that will kind of guide you on the type of stocks that you want to trade.
It’ll guide you on the life lessons of being a day trader, swing trader or which ones apply more to you and which one kind of fits you a little bit better. It will apply to the trades that you take, the trades that you don't take. It's a lot of things that go along with this business beyond just hey I need to trade and hey I need to make some money if you approach it that way it's going to be a lot more difficult.
I hope you enjoyed this lesson this recap covered a few handful different stocks and like I said the shorting book should be out you know probably right around that early July month and just working on a couple other little material things.
Thanks again for joining me, spending your time with me. I truly appreciate your fellowship you have no idea all the emails that you guys send I’m really grateful because I then know and understand that I'm helping you out or at least giving you an insight to the future of where you want to make a choice or decision and what direction you want to go or maybe just answering a simple question.
As far as some videos I'll be doing some more broker review videos, my goal is for the summer months to release probably about five to ten different reviews of brokers so were doing Scottrade right now and we’ll probably do a four to five different videos on them and then we'll do like TradeKing.
We’ll do like Options MONSTER's, Options house a bunch a different brokers. We're going to put in 25 grand in one account some of the accounts they require 10 grand, some of the accounts require a hundred thousand dollars just to use their platform.
I think it's kind of silly because you don't have a demo of the platforms like you do with software which kind of really is annoying because you have to go through the paperwork but that’s actually what I'm doing for some of the videos is were actually putting in 20 grand, 15 grand to actually get the premium great software just so you can see what it's all about.
If you're trying to select the broker you know we’ll have a lot of those reviews coming in here over the next couple of months because we're doing a lot of different brokers and it's just a process of signing up to them and putting the money in and doing the review.
Thanks for joining me and if you have questions feel free to email me and I would be happy to answer them.
Thanks again and remember to do what you love, contribute to others, but most importantly live life abundantly.
I’ll see you next time.