Stock Market Trading/Options

Guru Gru’s Trading LLC.

Education
Trading Camp 101
___

Coach Guru Gruden

INTRODUCTION
An educational PDF created by the trading team at Guru Gru’s Trading LLC. Disclaimer: This
PDF contains strictly educational material and is not intended to be professional advice. None
of the traders are licensed professionals nor do they claim to be financial advisors.

What will you learn?

This PDF contains each trader's unique style: swing trading, scalping, intraday trades, options
(puts and calls), and small caps. You will also find educational stock market material such as:
risk management, trading strategies, the mental side of trading, live examples, how to chart,
and much much more.
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Table of Contents

Introduction…………………………………………………………………………………….1

Meet The Team………………………………………………………………………………..3-4

Gruden Style…………………………………………………………………………………...5

About Me……………………………………………………………………………………….6

Gruden Trading Setup………………………………………………………………………..7-8

Money Mander Strategy……………………………………………………………………...9-10

Strategies……………………………………………………………………………………...11-16

Morning Flush………………………………………………………………………..11-15
Trade Around Core………………………………………………………………….16

Mental Side of Trading ……………………………………………………………………...17-18

Risk Management …………………………………………………………………………...19-23

Indicators………………………………………………………………………………………24-27

Charting………………………………………………………………………………………..28-32

Options Trading………………………………………………………………………………..33-34

Greeks………………………………………………………………………………….33

Taxes and Retirement Accounts……………………………………………………………..35-36

Conquering PDT………………………………………………………………………………..37

Building a Watchlist…………………………………………………………………………….38
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Meet the Team

Guru Gruden:

Bio: Coach Gruden is the founder of Guru Gru’s Trading as well as one of the head traders /
analysts for the team. Coach Gruden is only 22 years old and has turned the last $ to his name (a
$1,700 bond he cashed into the bank to begin trading) into a mass of over $200,000 or 11,000%+
annualized return.

Trading Style: Coach is one of the fastest traders in the game. He made a living off of scalping
high volume small cap stocks. Well-known for taking 50-100 trades a day he is a walking
testament that small gains add up. Additionally, he has added to his belt of tools in learning
how to play large cap options both long and short. He specializes in intra-day moves using 1m
and 5m timeframes and prides himself at finding intraday support and resistance levels.

Diamond Trades:

Bio: 22 year old options trader. When I started my trading journey in 2018, I began day-trading
penny stocks, blowing up several accounts along the way. About a year and a half ago I switched
almost exclusively to options trading, which has been my passion ever since. I’m the co-host of
our podcast “Trading Camp” and author of the weekly newsletter Diamonds in the Rough.

Trading Style: I’m a momentum trader generally trading options, though I will occasionally take
swing plays using both options and shares to express market views. I generate trade ideas using
daily chart setups like gap fills, mean reversion trades, and range breakouts. I also use vwap,
moving averages and news to make intraday trades.

Twitter: https://twitter.com/not_a_cfp
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AdamSliverTrade:

Bio: Started trading in 2019. Spent 2 years trading commons to pave the way for 2 years trading
options. Education and preparation are the key to success. Read the books and put in the extra
screen time.

Trading Style: Options day trader, rarely swings but when I do they’re only 1-2 days. Prefer
small/mid caps but will play large caps. I buy using key support/resistance levels, news, hot
sectors as well. Technical analysis based. Also an avid crypto trader. My watchlist-building
strategy is in my pinned tweet on Twitter.

Twitter: https://twitter.com/adamslivertrade?s=11

Moe_Mamba:

Bio: Intermittent options swing trader since 2011. Moe’s primary focus was school/work until
the end of 2020 where he transitioned to an ER travel nurse allowing him to put more time into
trading in hopes of trading full time one day. Experience is the best teacher, and the worst
experiences teach the best lessons.

Trading Style: Options swing trader who uses Harmonics, Fibonacci Retracement, and
Support/Resistance levels to short at pivotal highs and long at significant lows. Other indicators
such as RSI and MACD are used at times as confirmations.

Twitter: https://twitter.com/Moe_Mamba_
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Coach Gruden

My Trading Style:

● I am a day trader who focuses on purely intraday movements whether long or short in an
individual trading day. I do swing “sometimes” however it is rare for me to hold things
overnight unless extremely good reasoning.

● This removes the “Macroeconomic” factors for me as I do not have to sweat about if my
position will crash due to COVID, a global threat impacting or creating fear, treasury
yields, etc. I prefer not doing this because if I have a good company, outside factors such
as the ones listed above can cause my positions to still lose value and the time I spend
digging into the state of the economy, company earnings, etc. I can just play intraday
moves stress-free and then go about my day/life after 4pm.

● Also it allows me to strive for a daily target of income instead of taking large and volatile
swings in profit on days where a long term hold moves the wrong way. Everyday I can
consistently strive towards my annual goal and for me I can wake up everyday with full
buying power (100% opportunity cost), and a clean slate so I just judge the market for
what it is that day in the morning and repeat the cycle.

● I am 23 years old, although I have 200k to play with $1,000 a day is my goal. That is a
ton of money for someone my age my friends make 60k a year so 1k a day is $260,000
that is plenty. I do NOT have to become a millionaire in 1 day, I take base hits and let my
account grow through CONSISTENCY.

● I cannot stress enough that yes 1,000% gain is awesome but it's RARE and if u do not
properly scale in and out recognizing resistance and adding support then you can end
up bag holding waiting for miracles.

○ It is better to get 5/5 on 20% than 1 100% runner and 4 25%+ losses

About Me:
● As many of you know, just a year ago I had a net worth of -50k in debt all for a Penn
State business degree that warranted just a 60k job offer at Oracle. While Oracle is a
great place to work and I understand the value of climbing your way up or paying your
dues, I did not want to wait until I was 65 years old to be retired and finally “happy.”
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● God forbid, who knows maybe I will never make it to 65 years old. I want financial
freedom now because tomorrow is uncertain.
● I also have an enormous family (Italian) in Northern, NJ and we are extremely close, so
moving to Boston was not really enticing to me.
● I started with a $1,732.38 bond from when I was born, cashed it in early as the last $$$ I
had to my name as my paid internship was cancelled due to COVID.
● I declined the Oracle offer and followed my dream of being a full-time trader, since fully
committing I have made over 200k this year at just 22 years old.

Paper Trading:
● I began paper trading in 8th grade and in 2019 I opened an investopedia
simulated game “Warren Buffett Million Dollar Challenge”
● I am currently ranked the 51st best portfolio in the world amongst 50,000+
competitors
● I am up 7,711.77% or over 70M since beginning (if only it was real)
● This was the original place I began to learn and see what worked for me since I
had no money to start with, practice makes perfect

When transitioning to actual money it's definitely different because real money is on the line
and emotions factor in, but you can very much have the same results as myself:

Year 1 (Real money): $1,732.38 → $200,000+

Use this playbook as a means of motivation, and education for all those with smaller
accounts. Know you are capable of being next and creating your own financial freedom

My Trading Setup: (What I use)

1. TD Ameritrade / Think or Swim

a. I love this for charting as the layout is super clean, the indicators are so easy to
use and add, plus you can have like 5 charts on just 1 monitor.
b. This link is awesome to get setup to use key features on TOS:
https://www.youtube.com/watch?v=fdySZFsiDaU
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2. WeBull
a. I love WeBull for options, they show the spreads with clear second levels. Also,
they easily have the least amount of fees; it's basically $0 or unnoticeable. TDA I
got crushed in options fees especially on lotto or smaller priced contracts. It's
$1.30 per contract which is crazy. On a $0.04 contract you would need at least a
50% gain to even make money..
b. Sign up here: https://a.webull.com/iq6H46eyddFTh7eYAd

STOP USING ROBINHOOD

3. Trade Ideas
○ I use this platform and I know many from Atlas recommended it to me for day
trading. I use the premarket gappers list where I select a top 5 for small caps and
top 5 for large caps then I run through the catalysts whether its ER, FDA
approval, merger, etc. and base my stance on that to narrow it down more.
■ I grab 5 small, 5 large and peep the news then i put the charts up on TOS
and see which I like best

4. Atlas Trading / Sapphire Trading / GuruGrudens Discord)

○ Atlas got me where I am now. They have great content for small caps as well as
Sapphire.
○ Use discords as a way to find ideas on plays, use them as attention getters rather
than alert taking. Then chart a stock they mention if its at support then consider
buying it using your strategy and risk tolerance.
○ I would love a similar room but for options so I am in the process of creating an
elite team and discord to help you guys immensely for super cheap ($10/month).
This will include live alerts entry and exit exactly.. Stay tuned !!

5. Social Media
○ Social Media & Twitter is such a powerful tool these days and will only continue
to be. Major influences can reach mass audiences and get their attention on
certain trends, equities, memes, etc. Strength in numbers!

News Sources:

- Any market related news https://twitter.com/DeItaone

- More in depth about state of the economy https://twitter.com/SquawkCNBC

- This guy can move an equity 20% with one tweet https://twitter.com/elonmusk
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- Benzinga Pro has an Audio Box that speaks live time news to you while you
trade it does cost $ tho https://pro.benzinga.com/feature/squawk/

Great traders:

- Mystic Mac (intraday) https://twitter.com/notoriousalerts,

- Zack Morris (swings that go para) https://twitter.com/MrZackMorris,

- Ripster https://twitter.com/ripster47 (does it all, theme based trader good at

moving where the money is)

- Yates (Digs into companies, swings) https://twitter.com/yatesinvesting

- Tommy Coops (Intraday Trades) https://twitter.com/ohheytommy

- Hugh Henne (DD king) https://twitter.com/Hugh_Henne

- NotMrManziel (Options Beast) https://twitter.com/notmrmanziel

- Mini Tradez (Breakout Trader) https://twitter.com/Mini_Tradez

● Dell Monitor x 2 with 2 Macbook Pro’s

○ I use my phone to actually trade. I find it to be quicker.

○ Monitors have my TOS and WeBull opened with a watchlist & charts.

○ Laptops have 2 discords opened, twitter and trade ideas.

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Money Mander:

Mander’s Trading Style:

Before I release Mander’s top secret trading techniques, let me preface by stating that no
amount of reading this, other books/materials marketed at you, indicator services, or any other
“trading tool” will turn you into a walking lotto machine overnight. This career is too adaptive,
emotional, and even at times unfair for it to be that simple. Nothing will develop your trading
skills besides countless hours trading in the trenches (even and most importantly when it’s a
hard / red day), late nights researching and charting, and incessant mental discipline. This is
what will develop your trading senses and confidence, which, when coupled with motivation
and hunger, will be your one way ticket to financial freedom.

Unfortunately, there is nothing fancy, proprietary, or even special about my trading style. I
find I trade best when I keep things as simple as possible and follow the trend between price
levels. Following the trend requires you to find the trend, and this all happens premarket. If you
think the trading day begins when the bell rings at 9:30am EST, you will fail time and time
again, especially if playing options near expiration like I do. To walk through my trading
“strategy”, I start premarket looking through the watchlist I have cultivated of the stocks I trade
the best. One of my best recommendations is to find 5-10 stocks you feel that you see and
understand movement well with and stick to these names. There is no need to try and find
random stocks with scanners, because if you’ve never traded the stock before, how can you have
any clue which way the trend should go? Where support/resistance is at? Where should you
have your price target for exiting? I will sift through my top 20 or so stocks and see which
names are getting the volume flow and in which direction. I will then cross reference index
funds (SPY, QQQ) with the VIX to try and get an idea which way markets in general will be
trending. *If you’ve never used the VIX or don’t know what it is, I have an explanation on how
to use it within my ‘Mander Moves’ document linked in my pinned tweet.* At this point I get to
charting and see if there is anything to update, but since I trade these few names so often I
usually have all my technical analysis and price levels ready to go. I personally utilize fibonacci
retracements for price levels, and VWAP & EMA’s for trend analysis. When day trading options,
I find the most success on the 5d5m time frame with 8, 21, and 50 EMA’s. I use these EMA’s to
confirm the trend I’m seeing and give levels of support and resistance along the way. The lower
the number (shorter time frame), the closer it tracks current prices. For example, if we were in a
bull run, the current candle would be above the 8ema, which would be above the 21ema, which
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would be above the 50ema. These all act as support levels and when a candle crosses these it
can show a reversal in the trend. Say I’m up on calls and the current 5 minute candle closes
under the 8ema breaking support - I will scale out some profits here and see if the 21ema holds
as support to continue, and so on through the EMAs (along with trimming profits at expected
price level resistances). If we were bullish all day and the candles break all the way through and
are now under the 50ema, this would be a signal to me to now enter puts, since the ema’s are
showing a bearish trend and we now have a lot of resistances overhead (vice versa for calls when
crossing above the 8ema). I always choose my strikes out of the money at the next strike above
or near my targeted price level for the move, and if I get a bigger than expected price movement
to where my contract is now in the money, I will take the profits from this trade and enter the
next strike price that is still out of the money with the same dollar unit size I took for the first
play (this is called rolling up/down). I always use a stop loss at -20% so say I made +100% on the
first trade but my roll up/down trade hits my -20% stop loss, I am still net +80% by using the
same position size. This is a great way to try and follow a strong trend while still guaranteeing
profitability after the first winner. Always utilize stop losses and cut losers because there will
always be more trades to take but only if you still have money in your account.

Strategies

The Morning Flush:

- I learned this from Zack Morris; he has mastered it. Check out PGIR podcast where he
talks about it: https://twitter.com/PGIRPod/status/1423012109055561729?s=20
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- Basically, I use Trade Ideas or a Premarket Screener (FinViz, ThinkOrSwim) to find

moves to create a watchlist at 9am. Then, I quickly chart these out and identify
support levels or resistance. I pick my 5 favorites, usually ones with the most
volume, bullish theme, or news that was unexpected and good.

- Next I draw levels on them which I will explain below in example #3 and example #4,
say $MRNA is at $412, up from $398 previous close with good news out and volume,
plus I know $400 is support (major psych level that broke and held). It usually
happens where longs on the stock will take profits right at open as well as calls.
Then we get a nasty red candle down to support just above $400 say $403 and I
quickly load up. 9/10 times it will revamp right back up and trend bullish higher and
higher (as long as news and catalyst are good).

- So I added at $403 I have $400 support so my risk is low, if it goes under then you
can stop out quickly.. Premarket high is $417 so you have ways to go until resistance
and your calls can go 100-200% before then. Always scale some there too!

- Credit to Ripster for this chart

*Also I saw a great thread today of someone describing how they play it, similar but I try to
do it a bit quicker and more for that 1st candle at 9:30 where he waits for confirmation.
- Absolutely fine you have to do what WORKS for YOU

https://twitter.com/making_sales/status/1424313838292377604?s=20
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Example #1:

Coach Gruden POV for the morning flush on $TSLA 08/25:

1. Volume mover (TSLA jumped 1.5% at open, volume poured in)

2. Identifiable support, $706 is a major support/resistance level on TSLA. Has been for a
while..
3. Hold support (identified in chart) then rip back up

Example #2:

Diamond Trades POV for the morning flush on $AAPL 08/30:

“First of all, we have a slight gap up of about 0.27% at market open which is nothing crazy, this
play tends to work better the larger the gap up, but nevertheless it worked today because of the
absurd momentum $AAPL showed. Let’s run through the Morning Flush Checklist:”

1. Identify Support and Resistance: The two green support lines I’ve drawn are super
simple: previous day’s high of day, & previous days close. These are two important levels
to keep in mind when day trading/scalping or any other strategy as they can often act as
intraday support and resistance. The red resistance line is $150, a huge psychological
resistance for $AAPL. Now that I’ve got my support and resistance drawn, I’m ready to
trade the morning flush. Here is what that would look like at 9:29 just before market
open (1 minute candles):
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2. Flush Ensues at Open (WAIT) As you can see the stock actually opens green in the first
1 minute of trading. This is where composure comes in, @Money Mander could have
fomo’d into the trade at this point, but he didn’t. He waited for the stock to test key
support levels; he was trading with a plan. NO PLAN, NO TRADE. The stock rejects the
move higher in minute 2 and comes down to test support at 9:34.

3. The Stock Gets Bought Up and Closes Above Your Support **1st add — leave some
room to add again. When I made this checklist I was discussing a trade on which I used
the 5 minute timeframe. This is a personal preference, but as you can see in the picture
above, the same rules apply for whatever time frame you’re using. The stock closes
above 148.75 after testing support. This is where the first add should take place, leaving
room to add again on a retest and hold off your identified support.
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- Ideally, Retest and Hold of Your Identified Support — 2nd and final add ** I’ve added a 5
minute timeframe below to show the same rules apply there, we close above support and
then retest in the very next candle, which coincidently has a low of 148.75 (our
identified support). This is where the second add should take place.

4. Scale-out as Stock Breaks HOD or Approaches Your Resistance Levels The Morning
flush play works as we rip off $148.6 and 148.75 support levels to break the high of day
(point 3 on the chart below). This is the first place to think about scaling out. If you took
the 9/3 $150 calls at points 1 or 2, they’d be up about 20% here. Strong momentum
carries us through HOD, rallying all the way until $150, a huge psychological resistance
level for $AAPL (point 4 on the chart below). This is another great place to take profits.
Again if you’d taken the 9/3 $150 calls at points 1 or 2, they’d be up about 40% to 50%.
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These exit rules aren’t perfect, because in this case the stock smashed resistance and the 150
calls ended up running 350%+ however, this is gives you an idea of our thought process in terms
of entries and exits when playing the morning flush

Two more examples on $MRNA this week using the 1d:1m timeframe:

Example #3:

Profit taking right at 9:30am but we have COVID catalyst, earnings coming up and news out
so we eat up the red candle at open, look at that demand zone right above $375 support.

Example #4:
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See 9:30am IMMEDIATE profit takers. Long pile in quick as you can see it was holding that
$403 level perfectly all premarket, plus $400 support under that the risk was so low here
just put a stop under $400. Quickly at that $403 given the bullish news and COVID catalyst
last week longs did not hesitate to load up that 1st ugly red candle, ran the rest of the day..

Trade Around the Core:

Coming Soon
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Mental Side of Trading:

Emotions:

In order to fully commit to being successful in trading you must first conquer the 2 most vital
questions:

1. Why do you trade?

- Is it to better the lives of loved ones? To better your own life?
- To be able to give back to those desperately in need?
- To pay off student debts? Buy a dream house?

*Whatever the fuck the reason, store it. Never forget why you began trading, it's the one thing
in life that is truly individual. It's yourself and the market out there and you are the only one
who controls your own destiny. There are millions of different ways to win and infinite stories
of people starting with $500, $700, $1,700 you name it and amassing that to millions in just a
few short. Now I am not saying expect to be millionaires quickly, but anything is possible in the
stock market and you control your own destiny*

2. Why not YOU!

- Seriously, look at all the IDIOTS that have become rich in the stock market. Now
I am not saying that it's easy to do because it's not, the majority will fail. But you
only fail because you QUIT. If you work your ass off, study charts, learn from your
mistakes and ADAPT (find a strategy that works for YOU, will be different for
everyone). Believe me, I am a walking testament that $1,700 → $200,000+ in a
year with 2 years experience (1 year paper trading) can be done. I am only 22
years old and just a year ago I said literally: “if Dan Dips can do this, why the fuck
can’t I..” That answer was simple, Dan had the balls, Hugh had the balls. TCNJ is
a great college but it's not Harvard or Yale, Hugh is extremely intelligent but he’s
not Albert Einstein he simply put in the work and the difference between these
guys and me at that time was they truly believed in themselves and made losing
not an option.
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The Blue-Ball Effect:

Everyone has hit a massive trade if you've been trading for more than a few months. The blue
ball effect is one of the WORST mental blocks for traders that I see.

1. Have you ever won a lotto, or a YOLO trade for 50%, 100%, 200%?
2. Have you ever seen multiple of your plays run to 100%, 200%, 500% after you were
stopped out for a loss?

Everyone has been through this and it's one of the biggest problems traders run into. They think
because they got stopped out this ONE rare time and it turned all the way around into a big
gainer that next time they need to bag-hold for that crazy turn-around. Let me tell you
personally, 9/10 times it's not going to hit. Remember your stop loss is there for a reason and
you sold because it did not hold your support levels. Obviously, hitting that homerun is great,
but DO NOT think this is what every trade is going to be like and be left with blue-balls.
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Risk Management:

Rules:

1. NEVER let a green trade turn red.

- My rule is a 20% hard stop on all trades from initial entry
- Once my trade moves up (green) 5% I move my stop loss up to 10% risk.
- When my trade is up 10-15% I move my stop loss to entry.
- This can vary on volatile options or Lotto’s but generally always stick to
this rule.
2. NEVER buy a full position at once.
- Just think: “What are the odds that I nailed the exact bottom of the day in this
position?” Obviously it's extremely unlikely so ALWAYS leave room to add more.
- This has a mental advantage to it (a win:win scenario) if your stock goes up you
have a starter position. If it goes down you were wanting dips / cheaper shares so
you’re still happy.
3. ALWAYS expect that your position can go to $0
- If you have a support point drawn out on your TA, what if Jeff Bezos or Elon Musk
sells? What if SPY tanks 1%? Do you think Elon Musk cares that you had a
support line drawn at $707?
- Always remember what moves prices, supply and demand - do not overthink this.
If people are selling, the price will go down no matter what your chart says.
- Sometimes shit stocks go up a ton in value because people at the end of the day
care about ONE THING: “Will this position increase in value?”
- $AMC and $GME great examples
4. Find your TRUE risk tolerance
- If you do not do this you are doomed as a trader.
- At what point when you see red does it start to hurt. For some that may be $100,
others $1,000 and others $100,000. That pain point is your true risk tolerance.
- If using a 20% stop and my pain point is $1,000 then do not risk more than
$2,500. Why? Because let it have to be 2 red trades for your pain point to kick in
not just one trade. Give yourself another chance before emotions kick in.
5. ALWAYS stop trading if you lose 50% of your daily goal
- If my daily goal is $1,000 and I lose $500 I will generally stop trading. Especially
if new, this is so essential so the emotions do not kick in.
 20

- Why? If I hit my daily goal of $1,000 on Monday but lose $500 Tuesday and stop
there. I am still net gain $500 for the week. I NEVER want to set myself back 2
trading days by wiping out the entire daily gain in a day.
- Think like this instead (In the scenario where you: Win $1,000 Monday, lose $500
Tuesday) “okay so I am averaging $250/day so Monday $250 and Tuesday $250.”
6. NEVER use more than 2x your daily goal as buying power for options
- Don’t get crazy, know your true risk tolerance.
- Are you going to become a millionaire tonight? No one step at a time.
- “Move the chains, get first downs, and set yourself up to score. If you throw a
Hail Mary and go for a TD every play you will miss drastically 9/10 times” - Coach
Gruden
7. ALWAYS stick to your original plan for entering
- Never let a scalp become a day-trade, a day-trade become a swing, etc.
- If your original plan does not work IT’S OKAY! Hundreds of stocks moving 20, 30,
50, 100% as you are bag holding something in a downtrend
- Opportunity Cost of you holding something that's failing can be better
used in plays that are working as we speak
8. ALWAYS scale out at resistance levels
- If I bought at support and my trade is up 20% and approaching resistance levels
you will always see me scaling out and moving my stop losses up.
- This is important because while hitting 200% runners with full positions is great,
for me personally the base hits add up collectively to 200%+.

Important Practices:

1. Go light size on breakouts

- Often see the grossest red candles from HOD test or fake breakouts
2. Scale in ⅓ or ¼ adds. Expect the stock to dip but if and when it does ask yourself:
- “Why is it dipping? Is it holding the support level I drew?”
- “Where is my next support underneath to add?”
3. Always think in the perspective of the opposite side. If you are long, think where would
shorts come in? Where would shorts cover? If you are short, where would longs add or
trap shorts?
4. Recognize the dead periods of the market
- 9:30am → 11:30am are generally profitable period for me
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- Lunch time is usually when FOMO, boredom, chasing occurs and you either give
back gains or dig yourself in a deeper hole
- The market is going NOWHERE! It was here 50 years ago and will be here in 50
years, you do not need to make up that loss at lunchtime on September 14th
when SPY is down 0.70%!
5. Cut losers. Losses will happen, it’s okay move on.
- It can ALWAYS get worse and keep moving down or upwards.
*Every minute you spend crying about a position that is not working, there is 10 other
plays that are setting up to run 100%, 200%, 1,000% you could be reallocating your $ to*

6. Nothing goes up forever, every trend people take profits, shorts add in, etc. The odds you
are in the super squeeze of the month is slim, do not bank on anything.

7. The higher a stock goes, the more room it has to go down.

8. If you are bored, go jerkoff or something, DO NOT gamble. It is okay to take a day off.
Being neutral on the day is better than digging yourself in a hole / losing

9. Everybody takes losses, even Zack Morris and Michael Jordan have missed on occasion

10. If you are in just because a self-proclaimed “Guru” (like me haha) is in, do better.
Understand why you or they are in and if you like it, join. Know the levels, have a PT and
a stop if support breaks, etc.

Identifying Downtrends Examples:

Example #1:

This is $INDP which went up 200% today 09/15. One of the most common mistakes I see traders
make is adding into an ugly red candle.

1. You can see by my 1st arrow I have identified a “supply zone” on the 1m chart where a
lot of rookie scalpers will enter after that halty red candle because the shares just simply
appear cheap as compared to 5 minutes before. What almost always happens after is a
sideways green candle on the 1m where more shorts load and more longs get out of their
positions. As you can see, followed by the first arrow in my chart below is that sideways
green candle (shorts load, longs leave) and continued downtrend.
 22

2. You can see I have identified a second arrow pointing to yet another ugly red candle.
This is continued by some consolidation. You see it holds the $20 psych level multiple
times but knows when it tests over and over and over and over again (tested 4 times on
this chart) that usually means longs get exhausted out IMO and shorts keep pushing
every attempt for it to curl.

3. There is a 3rd example (last arrow) of on ugly red followed by sideways green 1 candle,
into more downside movement.

Example #2:

This is $MOSY from today 09/15 which tried to hold $6 support.

1. You can see it tests $6 4 different times and on 2 attempts to curl it gets stuffed down to
retest support. I always say if it tests 1-2 times you usually get a bounce the other way.
But if it keeps testing (3-4 times) you almost always see the break which we can see
based on the chart below it gives a nasty red candle to the downside
 23

Risk Strategies:

Rule of 7 → You take 4 trades per day that you do not sell until 28% profit. You put a 7% stop
loss on each. You only need to hit on ONE trade out of FOUR (25% win rate) in order to
maintain profitability.

Proper Sizing → Use proper sizing based on the conviction in your plays

- High Confidence = 7-10% of portfolio buying power (Still in scales so if I want 10% I will
buy with 3.5% each scale)
- Medium Confidence = 4-5% of portfolio buying power
- Lotto = 1% of portfolio buying power
- Super Lotto = 0.5% of portfolio buying power
 24

Indicators

EMA’s:

https://www.youtube.com/watch?v=jdYNaE5GJ0k

A simple moving average is an average price calculation over a specific time period. The average
is an arithmetic mean, and is not a weighted average.

An exponential moving average (EMA) is an average price calculation over a specific time period
that puts more weight on the most recent price data causing it to react faster to price change.

How to Use: (As per MoneyMander)

Mander uses the 8 EMA, 21 EMA, and 50 EMA. You should use the smaller EMA’s for day-trading
and scalping (8, 21, 50), however for swing trading they become too noisy and less reliable.
Mander uses the (21, 50, and 200) especially for longer trades or swings.

8 EMA → The average of the most recent 8 candles. The shorter the time length (8) the closer it
tracks the price intraday.

21 EMA → The average of the most recent 21 candles. Middle EMA

50 EMA → The average of the most recent 50 candles. Middle EMA

200 EMA → The average of the most recent 200 candles. The longer the length (200) the less
closely it will follow the daily price movement.

You can use EMA’s to determine the strength of a trend. Stocks that are trending very strongly
will consistently find support at the shorter EMA’s. Stocks that are trending moderately will
consistently find support at the more medium day moving averages, 21, 50. Stocks that are
trending weakly (not moving much, no momentum) will find support at the 100, 200, higher
EMA’s.

Use like VWAP as support and resistance or confirmation.

 25

VWAP:

VWAP is one of the most used indicators by traders in the discord. VWAP stands for
Volume-Weighted Average Price. According to Investopedia, VWAP volume-weighted average
price is the ratio of the value of a security or financial asset traded to the total volume of
transactions during a trading session. It is a measure of the average trading price for the period,
meaning it is reset at the open every day for every stock. VWAP is a great indicator for both
beginners and more seasoned traders. This is because unlike moving averages or Fibonacci
retracement levels, everyone is looking at the same VWAP. Furthermore, when institutional
buyers are trying to fill large orders, they may “VWAP into the trade” meaning trying to get the
VWAP price on their order throughout the day. This leads to potential buying/selling pressure at
VWAP, usually giving us enough price action to make profits.

Implementation

We like to use VWAP intraday as a level of support for stocks trending up, and as a level of
resistance for stocks trending down. Namely, VWAP is helpful when a stock has a nice run up
after the open, then pulls back for a breather before retesting the high of the day. Similarly,
when a stock takes a big dip out of the gates, then rallys back on weak volume to meet VWAP,
this is a good spot to enter to puts to the downside. Below we have an upside example for $xxx
where VWAP provides support into a rally, and a downside example for $SPY showing downside
continuation after rejecting VWAP.
 26

RSI:

The RSI is an indicator used especially by newer traders that is intended to tell you if something
is “oversold” or “overbought” for that timeframe you selected. Basically is it trading (when
compared to its average trading price) in the lower or upper range for the time frame chosen by
the individual.

Pro’s:

1. Identifies overreactions
2. Stock can have more upside from this point
3. If no news usually sees a bounce from this “30 level” on the RSI indicator

Con’s

1. Misleading → Be VERY careful the RSI does not account for some things such as:
a. News (Elon Musk sold, Disney news today that Goldman is dumping shares)
b. Market conditions (Ex: Pandemic, SPY tanking that day)
c. Offerings, reverse splits, etc.
2. Lagging → The move is always easier to see after it's happened. The RSI certainly lags
and even adjusts throughout the day so it should not be used as a support point
3. Technical Analysis → If a stock broke a major support level and is considered oversold
that does not mean it will just turn around where RSI says oversold. It takes a major
support or buyers to flip a stocks direction.
- Don’t try and catch a falling knife, volatility is hot in this market things have
overreactions can go well below the 30 RSI point

Also Note:

1. On the upside if a stock is overbought think of short squeezes. AMC and GME were
overbought at $5 and $50 but look where they trade now. This indicator can be used to
scan for plays but I avoid using it as a sole means to add or when to take off stock.
2. Also if TSLA does a reverse split they are going to get overbought, Goldman PT upgrade,
market bullish news, RSI does not account for these factors
 27

MACD:

The MACD is an indicator that suggests whether a stock is in an uptrend or a downtrend and
when the one line crosses the other (depending which way up or down) it shows which way a
stock will continue to move.

STOP → That just sounds sketchy. If it was that easy everyone would be rich. Throw this
indicator out IMO. It is the biggest lagger, the cross to the upside will happen when you get a
massive green candle and now you’re just buying at higher prices. Stick to support adds.

Level 2:

Level 2 is a great tool to see where big walls of resistance are or big support buyers.

Pro’s:

1. Helps know when is a good time to scale (right before the big wall).
2. Helps know when to add (right with big block buys (follow the big money is generally
following the smart money, not always but usually)

Con’s:

1. Flashing bids → A lot of times shorts can flash walls that are fake to scare out noobs.
This is especially prominent with penny or small caps because a big fund or investor can
moreso influence the price action than, say Apple.

How to use:

- I use the Level 2 to know when to scale out. Usually when you see a massive wall you can
scale out right before. I have noticed that I never see walls really break on the first test.
It usually takes 3. As a daytrader I will trade around the core and scale, for example the
wall is $2.50 on CEI. I will then exit 75% at the $2.50 wall at $2.48. My average is $2.05. I
dumped 75% at $2.48 and it rejects $2.50 hard and comes back to $2.35. I can add that
75% back and yes it technically raises my average but I am making a $0.13 profit so I am
up more than I would have been.
 28

Charting

Fib Retracements:

Fibonacci levels come from the famed Italian mathematician of the same name. Fibonacci,
who’s real name was Leonardo Bonacci, developed a mathematical sequence that often appears
unexpectedly in the natural world, the sciences, and mathematics. It works like this: starting
with 0 and 1, the next number is derived by adding the two numbers directly preceding it.
(Example: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 and so on.)

The fibonacci levels we use in trading are not derived from this sequence itself, but what is
referred to as the Golden ratios. You can get golden ratios by taking any number in the fibonacci
sequence, and dividing it by the following numbers. (Examples: 13/21 = .618; 55/144 = .382).
These ratios are calculated and used in trading to identify what fraction of a prior move has
been “retraced”, meaning a stock has pulled back 38.2% or 61.8% of the prior move. These levels
work because so many people are using them, including institutional traders and algorithms,
that buying/selling at these levels often leads to reversals.

Implementation:

We use fibonacci levels to identify where a pullback may reverse, leading to a continuation of
the original trend. The first step is to identify a trend. Different people have different styles, but
we like to use the daily chart and find the most recent uptrend following a pullback of 10% or
greater. In the $SNAP example below, we start our retracement from the bottom on Snapchat
back in March 2020, and end it at the top of the massive rally in late February 2021. The next
step is to wait for the stock to retrace to our fib levels, and use them as support along with other
factors to enter a trade in the direction of the original trend. While .236 and .786 are fib levels,
we primarily focus on the .382, .618, and .50 levels when considering trades (.50 is not a fib level
but many people include it in their fib analysis because it represents a level of psychological
significance.

As you can see in the second photo (labeled: 1), $SNAP retraces to the .382 fib level at 48.49,
representing 38.2% of the original bullish move. The stock consolidated here briefly for 3 or so
days in late March, before rallying 36% to the upside. Again in July (labeled: 2), the stock tested
the .236 fib level briefly on a pullback, before exploding 37% to the upside in just 6 days with the
help of a stellar earnings report.
 29

Fibonacci levels are not the end-all-be-all of indicators, but they can be a useful tool in helping
you assess the magnitude of a bull run, and how much we’ve pulled back from the peak of that
bull-run. In the words of Mr. Zack Morris, “Buy Dips, Not Rips”. Fibonacci retracement analysis
can help you determine where the dip may stop dipping, and reverse to continue the original
trend.

Identifying Support:
 30

Identifying Resistance: Coming Soon

Varying Time-Frames: Coming Soon

Patterns: Coming Soon

Candlesticks: Coming Soon

Harmonics:

Harmonic trading combines patterns and math into a trading method that is precise and based
on the premise that patterns repeat themselves. At the root of the methodology is the primary
ratio, or some derivative of it (0.618 or 1.618). Complementing ratios include: 0.382, 0.50, 1.41,
2.0, 2.24, 2.618, 3.14 and 3.618. The primary ratio is found in almost all natural and
environmental structures and events; it is also found in man-made structures. Since the pattern
repeats throughout nature and within society, the ratio is also seen in the financial markets,
which are affected by the environments and societies in which they trade. In summary,
harmonics are a combination of geometric patterns and Fibonacci Retracement levels.

Six Basic Harmonic Patterns:

● Gartley

● Butterfly
 31

● Crab

● Bat

● Shark
 32

● Cypher
 33

Options Trading:

Options are derivatives that are correlated with specific stocks and indexes. We go
briefly into options terminology here, but will be doing an entire PDF on options in the
near term future.

The Greeks:

Before we get started on the Greeks, here is a video that really helped me understand what they
were when I first began trading. Simply put, the Greeks are a set of risk measures that give
information about a specific option, that are named after Greek letters. Greeks are one of the
more intimidating aspects of option trading; this video helps make a solid introduction.

https://m.youtube.com/watch?v=GxmIvvROge4

Options Greeks:

Delta: Delta is a measure of the change in an options price that results from a $1 change in the
underlying security. For example, if delta = 0.5, a $1 increase in the price of the underlying
security would lead to a $0.50 change in the respective options contract. For a put option, delta
is negative because the value of put options is negatively correlated with the underlying
security. As options move further in-the-money, delta will approach one (for calls) or negative
one (for puts). As options move further out-of-the-money delta of both calls and puts will
approach 0.

Gamma: Gamma is a measurement of the rate of change of (derivative of) delta. While delta
changes based on the price of the underlying asset, Gamma is a constant that changes based on
the rate of change of delta. Gamma is going to be highest for options that are at-the-money.
Options that are far in-the-money or far out-the-money will always have lower gamma.

Theta: Theta measures the rate of time decay that is present in an options contract. Options
contracts have expiration dates. Holding all else constant, as an option nears its expiration date,
each day some of the value of the option will be eroded until the date of expiration. We call this
measure of erosion theta. Theta increases the closer you get to an option’s expiration date. For
 34

example, if an option is worth $0.50, and Theta = 0.05, the next day if the stock price hasn’t
moved, the options contract will be worth $0.50 - $0.05 = $0.45.

Vega: Vega measures the risk of changes in implied volatility, which is a measure of the stocks
expected price variance looking into the future. This is more relevant for longer term options
traders. Vega may increase when there are quick moves in the underlying security, and vega may
decrease as options approach their expiration date.

In-The-Money vs. Out-The-Money: In-the-money refers to a.) a call option with a strike price
that is below the current spot price b.) a put option with a strike price above the current spot
price. At-the-money refers to options that have a strike price equal to the current spot price.

*Understand that 35% of options expire worthless. 95% expire down in value*
 35

Taxes and Retirement Accounts:

Wash Sales Rule

https://www.schwab.com/resource-center/insights/content/a-primer-on-wash-sales

https://www.youtube.com/watch?v=gyhplC7AaVk

Tax Calculator (Estimator):

https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates

Roth IRA:

Contribution Limit:

Under 50 = $6,000/year and Over 50 = $7,000/year

Tax Deductible: No, you cannot deduct the money you contribute into the account from your
taxes

Tax on Earnings: No you are not taxed on your earnings you are contributing with after-tax
money so you are basically paying it upfront instead of later

Age for Withdrawals: Must be 59 ½ years old to withdraw penalty free (-10%)

Age Limit for Contributing: There is no age limit

Eligibility: Single filers making $140,000 or less can contribute. $208,000 for joint/married
filers.

Benefits:

1. If you think you will be wealthier down the line or tax rates will go up you should
consider getting a Roth IRA. This is because you are paying the taxes up front so you will
be at a lower tax rate now than you will be hopefully down the line when trading with
Gru and making milly milly a day.
 36

2. Tax Free Retirement Income. Retirement accounts that can be used for family, a new
home, car, living money, etc. it's a good thing to have money saved for when you may
not be able to work.
3. You can withdraw contributions without a penalty (the earned income is what gets
penalized).
4. Can compound your gains through actually trading and investing your contributions.
Uncapped earnings basically, the sky's the limit. (Can also lose it though).

Cons:

1. Taxed up front (can be a hit on you if you need that money now)
2. Maximum contribution is low, the earlier you start the better
3. Cannot see that money until 59.5 years old, a retirement account
 37

Conquering PDT:
Getting Over PDT:

Getting over PDT is the single HARDEST thing to accomplish in all of trading. I have a couple of
pointers, tips, and tricks for you since I was just in your shoes only 14 months ago.

1. CASH ACCOUNT → A cash account will allow you to use more than just 3 day trades per
week. This is essential if you want to grow more quickly.
2. MULTIPLE accounts → When I have just about $5,000 I created/opened 3 additional
accounts (4 in total).
a. Margin Account on TD Ameritrade
b. Cash Account on TD Ameritrade
c. Margin Account on WeBull
d. Cash Account on WeBull

*I understand this is hard to manage 4 different accounts but if you have dual monitors + can
trade from phone. You are basically now legally allowed to have almost unlimited day trades*

3. BASE HITS → I know it sucks to hear, but every dollar counts. Every $1 added is
compounded on your next play, and the next one, etc. so appreciate the base hits. You
do NOT have to get to $25,000 overnight
4. WeBull Overnight → You can buy plays at 7:50PM EST on WeBull then sell them at 4am
without using a day trade. This is the best way to gain an edge on being under PDT
because premarket a lot of times you can see stocks gap to highs before 90% of people
are even awake. (Not just any stock obviously should have bullish sentiment behind the
trade still).
5. Funnel Money into Account → I got a job working at DoorDash. Say I made $200/day I
put $50 into my investment account. I know it may not seem like a lot but it compounds
and if you stay consistent and disciplined with it, it will add up over time.

Getting over PDT is known as the hardest thing to do in trading, but I would argue that
STAYING over PDT is just as difficult.
 38

Building a Watchlist:

Indices:

$SPY → Tracks the 500 largest companies in the US. Overall picture of the market.

$QQQ → Tracks NASDAQ 100, largely tech based overall picture.

$VIX → Expectation of future volatility, basically it's a hedge or trades inversely from SPY. If Vix
goes up, SPY comes down and vice versa.

- Times of great uncertainty causes expected future volatility

- Uncertainty causes fear / bearish markets (good if VIX is low)

$IWM → Tracks the Russell 2000 Index which measures small cap performance in the US.

$AMC/$GME → I use $AMC and $GME as indexes basically that paint a picture of squeeze plays.

- If these two are hot I will go to WSB names:

- $SNDL, $CLOV, $PLTR, $SPRT, $BB stocks with high short %

Staples: (One main for each major sector)

$TSLA → EV’s

$AMZN → Retail

$AAPL → 18% of the S&P, carries the indices

$GOOGL/$FB → Tech

$MRNA → Vaccines

$AMD + $NVDA → Semiconductors

$BABA → China

$ROKU → Consumer services

$COIN → Bitcoin
 39

Market Scanners:

Coming Soon

How to Find Own Plays:

Coming Soon

Squeeze Candidates:

Coming Soon