Fernando's Low float blog post 1 Good afternoon guys, I would like to start this thread to discuss some of the strats, rules, psychology, recaps and so on in the low float world. A Lot of our guys are interested in low floats and some of the other guys would like to learn to be more well rounded; whatever your reason is to read this "blog" I hope it helps you in a positive way. Today I want to touch on some basic rules and set ups I use everyday. Because of the nature of small caps you have to set up rules to minimize the risk that comes with trading low floats. Let's highlights a couple of those: - Recognize your strengths; accept your weakness: Off the bat low floats are not for everyone. It is a fast, high risk, niche type of trading, if this type of trading does not fit you style it's okay to find something else, don't force something unnecessary. It will save you money and stress. I eliminated all other trades, setups and stocks that I don't do well off my playbook, I only trade what i'm "good" at it. An example of trades I wrote off my book are pre-market high break. I have more losses at this strategy than winners, so why keep doing it? After recognizing if low floats is your thing, develop a play that you see success and stick to it, develop that, make it better everyday, polish it. My favorite set up is a bull flag or first candle to make new highs, well go over that with more details soon. - Don't chase; avoid FOMO: Low floats can run points in a matter of seconds, literally seconds. One of my biggest rules is to wait for a pullback regardless if the stock is moving 3 points without me. Sometimes these pullbacks happen inside a one minute candle but for the purpose of this rule lets keep it basic and say that is a more well defined risk to wait for one or two candle of pullback before getting in. This pullback will give you a more well defined "bottom" or stop loss and a better entry, minimizing your risk. - Wait for the set up to form; don't guess: Lots of people like to trade low floats because of its range and potential for a big reward, but thats is also true for a big loss. My next rule is to wait for the set up to come to you. Do not anticipate a move too much unless is obvious, but again for the purpose of this thread let's not anticipate anything and keep it simple. The most used set ups in low floats are "momentum break", "first one minute candle to make a new high" or a bull flag/ABCD, so wait for the set up to form in front of you, don't "guess" is the right time to get in, you can visualize the setup forming in front of you and than get in with confirmation of volume, order flow, level two and so on. - Tight stop; make it or break it: A important rule that helps me a bunch is to keep a tight mental stop. Low floats are trades to be done at a breakout point, if you don't get instant resolution at that point, than you better off exiting the trade with a small loss or break even and getting back in another time. Remember, the same way the stock skyrockets it can plunge like a rock. Breakout point is the key word. Those are simple rules that you can apply in your trading routine and hopefully will help you somehow. We'll revisit rules, pointers and more on upcoming posts, now let's break it down a basic strategy that I use everyday. On the picture attached we have a crystal clear set up that defines the basics of the play. $MTSL popped up on the scanners last week, so I went over my process to see if it was worth it: -Volume (check) - Daily levels (check) Intraday activity (check) So $MTSL made a pretty decent move from 1.70$ to 2$, in this play we need a strong move upwards to show us strength with decent volume on those candles (#1 and #2) so than the waiting game for the setup to form started. After the strong first push we have a really "weak" pullback to the vwap. When I say weak pullback im referring to the volume, play close attention on how much less volume we had on the pullback (#3, #4, #5) that tells me that people are not just yet interested in shorting the stock, most likely we have traders taking profit, also we have the vwap and 9EMA around that area, that gives me a well defined risk and some sort of support. My next step here is to look for the breakout point and that would be the 1st candle to make a NH (new high) with confirmation of volume, lvl 2 and tape. I got in around 1.95$ when I saw volume picking up (more than we had on the previous pullbacks), level 2 looked good, so did the tape. Volume is another indicator that I use to confirm a breakout, on candle #6 we can see that spike in vol. My first target was 2.15$ and the rest for a bigger move or out BE (breakeven). Like mentioned before, this is a very basic concept of low floats, that offers better risk management when trading those stocks. As you progress in the "World of low floats" you will develop into more advanced trades by getting lots of screen time and experience. The important thing here is to follow steps into developing as a trader. You don't want to jump in with 1000 shares on your first trade or maybe don't even try these out live right away. One last tip for todays post. Don't skip steps in learning, there is no magical shortcut, only hard work. If you are a beginner, embrace that. learn the basics, the patterns and than move into a simulator. Be a master of your tools and execution. Than start small. After all that stop losing alot of money, lose less, get to break even, make a little, than make more. Aim for consistency Understand that trading takes time to develop, be very meticulous with your learning experience and put all you got into learning (not all your money, just all your efforts). If you are serious about trading, you will need to work hard, it's not a game for everyone, but you need to give it your best shot to find out if its for you. The markets is a "eternal learning experience" and we all learning here. Hope this post can help all of our members in a way and looking forward to post more Best regards, trade safe and follow your rules. Fernando Duarte ps: Pardon any grammar mistakes, this is my second language.

Ok guys. Just had my 1st trade ever today. Virgin Voyage, so to speak! At my skill level, I don’t really have a strategy whatsoever and pretty much acted on intuition (with some caution). MU opened at $52.54 and seemed choppy. By 9:55am, it dropped down to around $52.15 and started to reverse. I thought it would be a good time to get in at $52.25 and acted on it. My stop loss was set mentally (don’t really know how to set stop loss in DAS yet and I would have to click “sell” manually if it started to drop) at $51.80. Luckily, it went upward steadily in that 20 minutes that I held on to it. By the time it hit $52.70, I decided to grab my first win! Lesson learned: It really takes a lot of concentration to day trade. I hardly took my eyes off the MU chart in that 20 minutes. So it will be awhile for my skill level to handle multiple trades at once.

I uncovered some sort of bug in DAS that lets you add new rows to a watch list without having to use the right-click menu. It can save time depending on how fast your keyboard skills are. Here's a GIF of the steps: I normally do this first thing every morning to quickly add 20 rows before building my watch list.

Nice trade @Abiel and I loved your entry and executions :DD, voice was perfect, I think it's the best time to apply for euro-vision xD @Bibonow I loved your patience, a stock moving 50 cents and more and you're still holding till it hits your target! I'm still working on that, but it's tough, I actually won't say you did a terrible mistake not covering there) You've the patience! Everything else can be worked on :DD

Aiman sweet set up man! I think if we all switched our careers from Day Trading to gaming we will be extremely successful! Saying that because we are building machines for gaming specs first, trading second!!! Nice set up!

Hi guys! I've been here for like a month but never introduced my self here :DD My name is Aiman, I'm an Arab, well, half an arab 😄 My mother is Russian, I've lived half of my life in Russia, the other half in Yemen, currently I live in Russia; Studying actually :DI'm a medicine student, I want to become a heart surgeon xD. I've never known that stock markets actually exist, and that everyone has a chance to trade! First time I heard about trading was related to cryptos, I thought it was an easy way to become rich, I read lots of scams, youtube videos that explained how easy it's to become rich by investing in cryptos, so I opened an account on some website, made a small deposit(500 euros) and on march bought at 12k hearing that it's going back to 20k and even 100k!! So dump right?)) Anyway, it fell to 8k, and I kept holding, then 9k, and I decided to get out, luckily my loss was 30% of 500 euros not 30% of 5000!!! I started reading about cryptos, support and resistances, and how to trade them, eventually I figured out that wasn't for me, and it's not a profession one can hold on to, maybe only hope. Along with cryptos I was reading about stocks, investing, and swing trading, but I figured out that with my capital I'll suffer there. Eventually I came across day trading! I watched tons of videos, read tens of books, got attached to it. My last book was Andrew's book'How to day trade for a living'. Honestly! Best book I've ever read, so simple, has everything summarized. It made daytrading simple! I was so confused with those lagging complicated indicators that I felt I'll need years to figure them out, I actually was ready to study even for years, :DD I mean comparing 6 years in medicine to 3 years studying indicators? It worth it:D Anyway, after Andrew's book, and how simple he explained everything, I searched for him in youtube, I watched all his recaps, emailed him a few times, and I actually was surprised how fast he was responding! I texted a lot of youtubers seeking for information but their answer was mostly"Sign up to my chatroom and you'll get everything you need, everything I do is taught there!" Andrew in compare to every other traders was humble, and helped for free :DD Answered all the questions I asked without asking for anything in return, I really loved that and after that I decided to join the chatroom, I paid for anual member ship+3 months das simulator, I might pay for 3 more months because I want to practice more, and hopefully in the next week I'll pay for a lifetime membership :DDD I really love this community, members here are nice, helpful, and overwhelming :DD Thank you for doing everything you do xD

Hi guys! I finally got my trading station ready! First of all I really want to thank everyone posted here, I read every comment, every detail and everything you posted, in conclusion I could build my own trading station! I actually lost all my trading capital building the station and hopefully becoming a life time member, but after thinking about it and reading @Andrew Aziz book I learned that it's an investion I've to do in order to become a successful trader. First lose money! Then make it :D, I'll be in simulator until I save money for trading 😄 So, let's go to the details! 1)Graphic card ASUS GeForce GTX 1080 8GB ROG STRIX Graphics Card (STRIX-GTX1080-A8G-GAMING) I wanted to buy the MSI Gtx 1080 gaming 8 x8gb but it wasn't available in my country, so I went with this 2)Mother board GIGABYTE H370 AORUS Gaming 3 WIFI (LGA1151/Intel/USB3.1 Gen 2 Type A,Type C/HDMI/M.2/ATX/DDR4/Motherboard) 3)Ram CORSAIR VENGEANCE LED 16GB (2x8GB) DDR4 2666MHz C16 Desktop Memory - White LED 4)CPU Corsair CX Series 750 Watt (2017) 80 Plus Bronze Certified Non-Modular Power Supply (CP-9020123-NA)I actually got 100w, but couldn't find it in amazon, you actually don't need 1000w, 750 is more than enough! I think even 650 will work, but I couldn't find 750 in my country as well 5) Cooler ARCTIC Freezer 33 eSports ONE - Tower CPU Cooler with 120 mm PWM Processor Fan for Intel and AMD Sockets - for CPUs up to 200 Watts TDP - Silent and Efficient (White) 6)Processor Intel BX80684I78700 8th Gen Core i7-8700 Processor 7)SSD, ADATA SU800 256GB 3D-NAND 2.5 Inch SATA III High Speed Read & Write up to 560MB/s & 520MB/s Solid State Drive (ASU800SS-256GT-C) 8)Hard disk 2tb WD Blue 2TB Desktop Hard Disk Drive - SATA 6 Gb/s 64MB Cache 3.5 Inch - WD20EZRZ you'll need an ATX box I believe but it depends on your style :DD With the box this whole setup cost me 1450$ from a local store, I also have 4 philips monitors 24 inch each cost 100$+ a cheap desk xD 60$, gaming mouse and keyboards because I love games, both cost 80$, and a stand for 6 monitors which cost 120$, 3 hdmi cabels, 1 adapted from vga to display port, another from hdmi to display port. I believe that's all!

This is a problem all traders face--beginner and advanced. Even Andrew and Brian mentioned this in the Lifetime Webinar. We go into a trade looking for 2:1 risk/reward, and end up coming out with 1:1 after scaling out. Our losers are almost always -1:1, if not greater. This means that with 50% accuracy, we break-even over the long-term despite claiming to take trades with a minimum of 2:1 risk/reward! My journal tracks some key stats to see how well I'm taking profit compared to the risk I take. The required variables are: Number of shares Entry price Stop price Target price Max loss = (Stop - Entry) x Shares R-Target, aka Target Risk-Reward = (Entry - Target)/(Stop - Entry) R-Real, aka Realized Risk-Reward = P&L/Max loss Let's use my $CAG trade from June 27 as an example of a good outcome. I entered the trade looking for a 4:1 risk/reward (R-Target). Based on how I scaled out (in 6 steps), I managed to come out with an R-Real of 2.9. This is the type of patient profit taking you want to see over the long-term. Entry 36.52 Shares 800 Stop 36.7 Target 35.75 R-Target 4.3 Max loss 144.00 P&L 412.78 R-Real 2.9 Now here is an example of a winning trade where the R-Real is less than half of the R-Target. Despite being a winner, the realized risk/reward was actually less than 1. Statistically, taking trades like this over the long term would result in losing money. Entry 42.87 Shares 100 Stop 44 Target 40 R-Target 2.5 Max loss 113.00 P&L 97.34 R-Real 0.9 I've been consciously trying to improve my long term average R-Real by taking profit more patiently. Similar to Carlos' advice above: (1) take first partial after a 0.30-0.40 (2) patiently take profit at original targets (3) keep the last 10-20% for as long as possible. This has helped bump up my R-Real, but it is nowhere near 2.0. As of right now, it is a mere 1.1 after 450+ live trades. My losing R-Real is -0.9. Both numbers are improving, but it takes a lot of practice. Improving accuracy of winning trades is another solution to this problem. If you can be right 65-70% of the time, then you can afford to have an R-Real of 1.0 and still be profitable.

That was really nice meeting you Andrew you are a true inspiration.