I would have bought in Pre-Market at $24, added more at $25 and $25.6 plus grabbed the rest at $26.54. He's doing the opposite of how I perceived this stock, that's what is so wonderful about trading is we all have such unique views of how were going to play a stock. I feel he played this stock very dangerously, would you have kept shorting and quadruple downing as the stock fly's up? In life personally I have seen more people blow up using his style than making money, how do you view it? I feel he got lucky buy shorting more as it kept flying up. We all know amazing people with giant degrees who are competing as day traders and HFTS plus Goldman and JP Morgan traders. Do you think I am wrong thinking his style is dangerous? I am not advocating his style, I still would have gone long in Pre-Market at $23.5-$24.5 while waiting at the open to see the direction. Once it moved past $24.8 I would throw out 600 to 800 share buy orders probably until we hit $26.4-$26.5 having my sell order in at $26.8-$26.9 at most 3500 shares. I like how Clay responds to people who want free stock tips on other videos. Personally he's just hedging his bets by creating a subscription model like Greg and Oliver did during their time at Pristine. He wants to generate cash from people not willing to spend their time to study, good for Clay to charge them cash for his skills! I will not say Clay is Greg or Oliver nor a wild man like Tokyo Joe. The Subscription and Groups helped me make one of my biggest trades(I was holding a stock, made a market in it because I knew the stock very well. In between buying and selling I was lugging around 75,000 shares of a stock that only costed $.49-$.69 and when it broke past all the Elephants and Whales at $.8 I double downed adding a giant position. The stock finally headed towards $1, a price not touched for almost a year. I used ARCA and INCA to attack the Offer, once the stock hit $1 chaos ensued. Soon I would realize Tokyo Joe had just put my stock on his "Buy Now Action Alert List". What are the odds of someone's favorite stock getting a "Buy this stock now" by Tokyo Joe?
Lugging around giant positions costed one guy I knew several million dollars, he was so convinced the CEO and CFO were telling the truth he lost almost everything he made. Later he would see he was buying while the company officers were selling their stocks. He told me "I was the last fool standing", later he said "How come you never bought in the stock even though I did my best to convince you it was a great buy with inside information"? I explained to him, I do not take on anyone's advice on stock picks, plus the Vulture Fund that's good at buying good companies was selling all their stock down to $1, that's a sign to stay the hell away from a stock". For a man with a MBA plus another degree in Finance, how could he be so stupid? My method was watching the actions of amazing mutual funds and when their dumping who are we to assume we know more than trained professionals?
Well, to begin with, I'd've used a tick chart, not a candle chart. Makes no sense to use a candle chart if trading the ladder, much less candles that are colored.
Was anyone impressed on his short prices? I kept thinking, why did you short at $25 instead of going long at $23-$24 during pre-market? You road a stock up almost $3 on the short side and only added 5x your position because it was the only way you saw to make cash "don't frown average down". Clay's teachings on this particular trade was reckless, not that of someone who is a teacher bestowing wisdom upon people who are paying to learn from him.
Really comes down on back testing, and if you can develop low enough losing percentages to average down, do you why he enters and what is his losing percentages?
I started reading Humphrey B Neil's "Mastering the Tape" 1930 circa. A book almost 100 years old has timeless value of adding to stocks showing you a profit. If anyone has not read his book its a very fast read pushing valuable advice that Nick Darvas followed during the 1950s turning $20,000 in to $2.5 million by reading the tap and using "pivot points". Even with back-testing don't most traders want to add to positions showing them a gain? We all have come back from staggering losses by adding 2 or 3 times our original position recovering what could have been a nasty loss. The problem though is I feel like someone out of "Final Destination 3" where the kids got off that roller-coaster before it crashed cheating Death or Fate out of their Souls. I've been down $50k adding big to my position coming out with a $200 gain(It would have gone up a hundred times if I had the nerve to hold it back than). because I was so happy to break even but felt dread afterwards. In Final Destination, Death come's back for his due so don't you think someone who is trading like that is cheating the Stock Market? That saying "You can get away with breaking the rules but eventually the rules will break you" is appropriate. I do not feel good when I make a trade where I had to go up 3 or 4x the position because I did not follow the rules. I am much happier making $400 dollars scaling up than making $5000 double or triple downing.
Day trading futures I ave down on 90% of the trades no matter what is now traded by automation, but it is not bet the farm, it is same quantity and because I have time limits, something has to happen fairly quick or target plus one tick and where I do well as if I got in at minus 5, it gets dumped at original entry plus one tick so I make plus 6 ticks, exits and risk is based on original entry. When I day traded stocks when it was first possible via Internet, I never ave down, but then I was barely profitable in beginning when traded 16ths and not pennies, now I use intraday charts but for either long term, swinging or option system based on stocks as I trade directional. In none of my day trading do I add more based on last signal, since I have plenty of signals to take in the 60 minutes that is day traded on one minute bars. I do have some 23 hour systems running but on much less volume cause most of those hours traded have less volume. I am a collector of very old books but don't have that one, I will look for it, thank you. The older pre-computer I have found to be more informative than new books. People don't realize how emotions don't change even 100 years ago. When I buy stocks, I put whole position all at once, but I hedge every position at opening, so adding if it is gaining, at some point unless long term and only by more signals, I have makeable targets for swing trading, not seeking "letting profits run" concept that all think is doable, at least in swing trading, not able myself although I retain 10%, most of time retracements recently I get stopped out. Too many of my friends who some have traded long time busted their accounts on that last trade....I often wonder if something in their personality was they felt they didn't deserve all the money?
Handle, I agree with everything you said, your last paragraph hit me close to home because I had some severe issues when my trading took off to a higher level. I was plagued by guilt, unworthiness and allowed winning positions to turn in to losers because I became emotionally blunt and money did not matter. Reading what you wrote I am guessing your far beyond the emotions of trading unless it was a trade you broke the rules in. I doubt you get very excited even if you hit a home run you are business like and handle it like you did what you were suppose to do. Does it bother you when people ask you "don't you enjoy the thrill or rush of the game"? How do we explain there is no rush or thrill after we have traded this long? The emotions we battle with are "we did good so were not angry with ourselves" and "We made a stupid trading mistake we knew better than, even if the mistake turns out to be a profitable trade we are still not pleased because we cheated"? Even when I had my black swan trades there was no rush, no happiness. It only felt like "I did what I was suppose to do and got lucky the stocks were bought out". Why do people assume we are thrill seeking gamblers who live by the roll of the dice? When I saw Clay trading his Short his style brought back some of my old emotions of gambling from the 1995-1999 Wild Tech Machine. When was the last time you felt emotionally charged or got a thrill from winning a great trade?
Exactly, my thought as well.. Not impressed at all... he starts shorting at 25.35 and then shorts downwards... and the stock goes against him... He just adds to it x5-ish to try to get out at one point, which he does between 26 and 25.50... So... he keeps saying it goes the way he wants to... from 25 to close to 27... if he wanted that, why on earth did he sell earlier?... Then, the stock goes down to 23.50, so he was right in the beginning... but didn't make much from it, because he chickened out and closed early... So, I would say he's more lucky than smart... It looks like a gamble to me.
I trade this style all the time, and I would say he got lucky here. He didn't talk about stops, just kept adding. If he's trying to teach this method there's got to be some rules applied. He could have got steamrolled. Also...point-and-click trading??? Get some hotkeys set up properly and you can trade 5x faster than this. Not impressed. Edit: this video has nearly 60k views? wtf?