Section Insights
Introduction and Personal Journey
What challenges did Justin face in his life and trading journey?
Justin shares his struggles with identity and memory loss, emphasizing how he felt disconnected from his past. He highlights the transformative potential of trading, suggesting that success in this field can redefine one's limits.
- Justin experienced a significant personal crisis, losing five years of his life.
- He believes that trading can offer limitless potential if one understands the market.
- The podcast focuses on insights from verified traders who have not been previously interviewed.
Trading Strategies and Market Realities
What insights does Justin have about trading small and micro-cap stocks?
Justin discusses the challenges of trading small and micro-cap stocks, noting that while they can yield high returns, they often lead to significant losses. He emphasizes the importance of finding an edge and understanding market dynamics.
- Most traders fail when attempting to trade small caps, with failure rates as high as 99%.
- Justin prefers shorting small caps, as it can provide a safety net compared to going long.
- Understanding market trends and timing is crucial for successful trading.
Mental Resilience in Trading
How does Justin manage the psychological challenges of trading?
Justin emphasizes that mental resilience is key in trading. He acknowledges the difficulty of handling losses and the importance of learning from them. He shares that he has developed strategies to avoid entering trades too early and to exit at the right time.
- Mental challenges are often the hardest part of trading, more so than finding a trading edge.
- Learning from losses can lead to better decision-making in future trades.
- Discipline in timing entries and exits is essential for success.
Work Ethic and Commitment
What does Justin say about the level of commitment required for success?
Justin reflects on his work ethic, realizing that he initially underestimated the effort needed to succeed. He acknowledges that many successful traders put in significantly more hours than he did, which motivated him to increase his own commitment.
- Success in trading requires a strong work ethic and dedication.
- Justin recognized that he needed to increase his effort to compete effectively.
- Maintaining motivation and hunger for success is crucial, even after achieving some level of success.
Trading Techniques and Strategies
What trading strategies does Justin employ during different market conditions?
Justin describes his approach to trading, including specific strategies for pre-market and after-hours trading. He emphasizes the importance of timing entries and managing risk effectively.
- Justin uses specific entry points to minimize losses while maximizing potential gains.
- He adapts his trading strategies based on market conditions and liquidity.
- Understanding psychological price levels can enhance trading effectiveness.
Transcript
0:00 Welcome back to Undiscovered Traders. This is Justin, also known as T-Bouse. I forgot who my wife was. I forgot I was a nurse. I basically forgot who I was. I lost about 5 years of my life just gone. So everything I learned in those 5 years completely wiped off the map and I kind of just had to put my head down and cry. I was told I had a very low ceiling and but with trading, you know, if you crack the code, the ceiling is whatever you want it to be. Welcome back after way way way way too long to undiscover traders, the podcast that focuses on the charts, the stats, the edge of the latest sixfigure verified traders who have not been interviewed before. This is Justin's first team on the camera, also known as T-Bows. He is up a staggering $32,000 and verified profits on the month. 199K on the year living in Tampa, Florida.
0:55 Jay is the first question. Is there any pressure to hit the 200k milestone? Oh, and I hit it today actually. Yeah. Yeah. Yeah. Keno was automating tonight. So, Ken was automating tonight and then it's going to show through. How does it feel? it feels great. No, it feel it feels awesome, honestly, because I have a a goal in mind this year and I'm on track. So, yeah, super super excited. and I love the the transparency with with Kinfo as well.
1:28 I check it pretty regularly to see how to see how it's keeping up because I use trade zero and I like trade zero a lot. But depending on if you hold positions overnight, it kind of skews the daily what it says you actually made that day where it seems like Kimfo just actually does it when the entire position is sold. So, I actually prefer that. No, nice. And look, I want to get in I'm looking forward to getting your charts, getting into your profit curve, but first of all, I kind of want to just know like how does it first of all, how does it feel to hit that 200k and like and and and how do you how do you plan so methodically like I've got this target, I'm going to hit it when there's so much risk and uncertainty in the markets. How how can you have this like almost reassurance?
2:11 Yeah. No, totally. I mean it it is a weird time in the market right now but weird times usually create you know great opportunities. it it is a little unpredictable right now but luckily with my strategy it's not it's not hyperfocused or not focused at all on the macros of you know the macroecon economics since it's mostly shorting small caps. They like to pop in bull markets. They like to pop in bare markets. a little more in bull markets for sure, but so you I mean bull markets they pop harder bare markets they don't pop as much but they go down quicker. So you know you just got to find your edge in whatever market you can. Yeah. And and just basically how long have you been trading? How long have you been doing this? Because you're making some staggering figures.
3:01 Yeah, I appreciate that. I I've been trading about four years. The first two years weren't profitable though. I mean, there were some there's some ugly days. I had to stick with it. I tried everything from options to going long, small caps, long large caps, spreads, and my edge my true edge is in in shorting. That's that's the only one I can consistently profit from to be honest. I mean, I would love to say I profited in those as well, but that's that's not where my edge is. No. And that's that's interesting what you're saying because a lot of people will say don't flip around too many strategies. Just try to stick to one and master it. But from from what I can hear from you, you kind of did tried this, didn't work, tried this, didn't work. I don't know. This makes sense in me head.
3:52 So how did you do it differently? Were you investing like a lot a lot of time into each one? Was it intense or Oh, that's an understatement. Yeah, I mean you kind of have to be obsessive to figure out your your edge between the back testing and you know this the studying of charts. I mean yeah I know it was it was obsession mode for sure. and I'm really into like data back testing and that's the luxury of I mean in today's time you can you know whatever your strategy is you can back test it you can automated back test it especially with you know there's great chart platforms out there I even use like yours I use trading view I mean I even the trade zero chart you can back test so yeah no studying like a crazy person to be honest and it paid off it it paid off so How crazy is crazy?
4:46 How crazy is crazy? How many hours would you say in a day? Because people think they have to work hard when they don't. Do you know what I mean? People think, "Oh god, I've done three hours. I'm exhausted. I've studied. I've studied loads." Oh, yeah. No, in the beginning. So now I I I'm just being honest. I I don't study charts very often because I know where my edge is. so minimal study and I do it all from my phone.
5:11 I don't use like every dollar I've made has been through mobile. I don't even know how to use the trade zero app. So, the like the desktop app. So, I do it all from mobile and I do that intentionally because like I was telling you, you know, I'm in I get into real estate. I lead retail operations for a cannabis company. so, I try to make it as user friendly as possible. So yeah, I just use my phone and I tried the whole 10 screen. Well, not 10 obviously I didn't have 10, but the whole excessive setup with all the screens, everything going at once and like it didn't do anything for me. So yeah, do it all from mobile. Do it all from a phone. That is that's absolutely surprising. But look, I mean it's cuz you cuz so many people sit on a screen for 10 hours a day looking at seven charts and overt trade. But you're telling me you you you work for a company, you work in retail and you're trading from your phone and you've just made $34,000 this month and you've made $200,000 this year. I mean, and it's from your phone. Is this while you're walking around going in house viewings and stuff like that or? Well, so I have I mean there's some discipline involved obviously and I'll gladly go over this shortly, but I you know between 4 to 6 a.m. there's a strategy if I want to trade that or 4 to 7 a.m. 7 to 9:30 10 or and then 9:30 to 10 when the volatility is the the most intense 10 to 4 there's a different style of trading and then after hours as well. So, whatever my schedule allows, honestly, I should be prioritizing trading more than anything else. But, like I was saying, I've gotten into like real estate recently with short-term rentals, and it's pulling me, away a lot. so I still trade, but it's not, you know, I I kind of revolve my schedule around trading in the morning and then I do all the activities during the day because I make the most money, I believe. in pre-market and or pre-market till about 10:00 a.m. and then after that I can kind of do my duties for the day.
7:26 There's still great opportunities during the day, but I like to trade the quick pops. and as you know, during the day if it goes up too fast, too quick, it gets halted and it kind of messes up my strategy. I can still do what I'm looking to do, but you know, I'm not going to get a a random 100% pop during the day. it's going to get halted before it does that and then when things get halted people tend to realize what's going on and it doesn't get pushed as intense. So So are you looking at the day one gapers? Is it like the gap crops? Are you looking into them? Yeah.
7:58 Yeah. Yeah. So the gaffers for sure and you know the pre-market they're just wild. they'll go up you know 50 100% 200%. It's just beautiful opportunities. and then majority of the time they come straight back down. But if they don't, you have levels at that point. What's the what's the high of the day? If it's bouncing, where is it bouncing at? Where is it breaking support? so, you know, you really have to learn how to read a chart and it's not rocket science, but if you can understand levels, and the only indicator I use is a moving average. I use a moving average, and I use that mostly for taking profits because that's where they usually bounce or if they break through, you know that, you're sitting, you know, in a much better position. Yeah, we'll we'll go into we'll go into your profit curve next, but I'm just curious and we'll go into some charts because I'm curious how you manage your risk because this this kind of day one premarket shortening I see a lot of people being like like I'll hit it here, I'll hit it here, I'll hit it here and that seems a bit scary. So, I'm curious to where you go, but how did you even find the strategy? I know you said back testing. Was that like on an Excel or is that on a platform? So, well, it it honestly I I use that term kind of loosely. It's just once you have a strategy just looking looking back at charts to see how often you know something plays out for lack of better words. There's it's not super complicated. I was trying to make the buying small and micro cap strategy work and some people do those those traders I'll say they're better than me that succeed. But me and you both probably know that most people fail miserably trying to trade long those I mean I I believe the stat you probably can speak to it better somewhere between 90 95 99% of people fail and I think it's because they go long for these small because that's kind of the cool thing it seems right now is is like these small micro caps they might go a thousand% true but a lot of times they also go to zero dilute all friends. So I just try to find my edge and after looking back at charts it was just like it finally clicked you know everybody's going long so what's the other side of this equation and if you look at small caps when they pop they usually come right back down. Yes, you can make money long, but I think it's much more complicated where even if I don't time mine right or execute perfectly sometime, most of the time if I give it enough time, it'll it'll come back to my profit zone where if you're going long on a pump, if you miss that take profit zone, it might not ever go back to that. By the time it pops again, it's might already been diluted offering. So, it's almost like a safety net in a weird way because probably a lot of people don't say that with shorts because you can have unlimited losses and I've had some bad ones. That's no doubt. I've had some some nasty ones.
10:56 But again, nothing is perfect, you know. No, I know. And and that's the thing like I think it's it's funny how like the industry changes over the years because I think there's definitely always been this h mentality of going long because people are just more comfortable. It's easier. It's more logical to think of buying things that go up because everyone buys the spy, someone's dad bought the spy, the dad's dad bought the spy, are invested in the stock that everyone's got those stories.
11:20 But it's also with shorting then you get this other group who all figure this out. But the main problem with all of these people is that they struggled with risk and and I struggled with risk as well. And I mean I remember having crazy results where I turned $600 into big amount of money but then lost 30k in a day. So, but we'll get into it. Let's go into your charts because I you have a similar kind of loss in October, but you've gone on to recover. So, I want to know what you can do that I failed to do.
11:52 Yeah. Yeah. Absolutely. So, let me screen share, because because I think you'll help a lot a lot a lot of people because a lot of people can look to short, but the they're struggling with that, they're struggling with that area of discipline to for the black swan. Okay. So, so talk me through this. So, June 2016, 0 to 150K, what are you doing?
12:22 What's up? What? Yeah. Yeah. Yes. Since right here. So, funny enough, this is when I created my entity. That's what the TBOS stands for. It's the bear of Wall Street. So, I was actually having a pretty good year in in 2024 before I even had this Kinfo. And ever since I've had Kinfo, I'll always have it now because it's it tracks it. but I never really knew much about it. But when I created this entity, I started tracking it. And as you can see, I was having pretty good solid success. I try to value myself on not having just these crazy insane days and then having, you know, back and forth negative days, green days. I like to kind of go on a run. And as you can see, I got all the way to what was it? 142K in in a few months, June to October 13. And as you can see from the curve, pretty pretty consistent. And boy did I make a mistake. So 140 down to 67. Still not in the bed best head space. And I took another massive loss. So I'm back at 39K. And listen, I didn't even tell anybody about this. My wife knows I trade. My friends know I trade. I just kept I just kept it to myself. And I don't know if that's the best strategy because like I I I was I'd be lying to say I was completely stable after that loss, but again that's that's part of the journey. And I actually have that chart pulled up and I I don't know if you want me to go over it now or later.
13:56 But yeah, go for it. Yeah, let's take a look. Yeah. So I think I think it's this one. Yeah. Drug. Oh, I hate even seeing this ticker. Okay. So, as you can see, it was trading in like the$1302 range right here. And you know, October, it was a while away. And I've tried to to you know, I've studied this chart to prevent it from happening again, but recently I haven't looked at it too much. But as you can see, let me zoom in a little bit. as you can see here, like hella bullish. like this thing is crazy crazy bullish and I actually I'm a little insane. I like seeing halt ups because that tells me that the fall usually is going to be so brutal. So brutal. Yeah. And I was averaging up into this position and see this already went from like two to like 17. So I learned a lot from this because I was already super red in this position right here. And when it broke right here, a new high, I should have just left. I should have just got out, re-evaluated the position, but I didn't do that. I like learning the hard way and I kept holding, kept holding, kept holding, kept holding. And then Trade Zero liquidated my account.
15:22 Right here. Literally right here is where they liquidated it. Then the following day, I think when I had that 26k loss, I got I think I got in somewhere right here where I thought it capped out previously and then it went on to shoot up even higher. So yeah, drug drug it destroyed me. It really did. And I know and it's funny because probably somebody will get enjoyment out of this because shorts are so hated. Shorts are so hated. But it's more just this one got me. This one got me. And I'll admit it. I should have gotten out way earlier. somewhere right here. I still would have took a decent sized loss, but that's that's part of my strategy shorting. Like, I'm okay being in the red. I'm okay waiting for the play to play out. I'm okay taking a a decentsized red loss, but it went from decent to just almost wrecking my account. No, because I mean I I know this strategy because I I've traded this this strategy as well. and and I and I've done the back test and stats on on a platform called Edge to Trade and I think you can get like an 82% win rate depending on the criteria that you enter. so when you've got like an 80 plus win rate, you can afford for the for the for one stock to go wrong, but it's like you've got to like not get sucked into the fight if it does break the new high a day after the halt up.
16:51 And that's a good way to put it. You got to be comfortable with taking losses. And it's still hard for me because like I said, I my strategy I have to let it play some. I don't know where the top is. I can find levels and they can guide me. But with my strategy, I'm okay if I'm in the red. and I average up, average up. But the the hardest part learning curve for me with shorting has been like when to throw in the towel, you know, when to just take the loss.
17:19 because I think I would have taken about a 10 or 15k loss there. I'm completely comfortable with that. I know for a lot of people that's that's large, but for my strategy, like I was like I have like a 90 what two 93% win rate. So I can win that 10 or 15k back. But when it starts getting above that, that's when it starts being extremely painful. But then you get in your head, you know, it's like how many green days do I have to make to make this up? And you can even see from this chart like it took from October 140 all the way to this year this year before I made it back. And I mean and the and that's really not that bad I guess in the grand scheme you know but it's not bad but but it was it was you know it it was a grind. There was I traded every day and it took a while to get it back. But to your point you casually mentioned the mental aspect of it. That's what a lot of people I think don't realize about trading is it will test you mentally. and that's the hardest part. Finding the edge is the easy part, but not letting a loss crack you and give up. I think that's that's by far the hardest part. It's not get it's it's like it's also not getting into positions early because you think it's a bit quiet. There's not been much momentum. I'll just jump in this one and that's the one that that goes.
18:43 So, I mean, how are you having that? A lot of people say that it's so much pain they've just learned, but have you done anything with your psychology or your discipline to to not enter early and to exit at the right time? I mean, it's something I'm constantly learning and I I weirdly enough, I am thankful for this loss because I learn you just learn so much from losses. So, I actually took another decentsized loss here recently. Not nearly to the the size of that, but I think I would have taken that loss again if I didn't already take the loss, if that makes sense. Because I saw it getting out of hand. It was way bigger than I wanted. But, cuz see, I got up 219, then dropped all the way to 186.
19:34 So, it's about a 30k loss. That hurts. But I've had 30k weeks so I can I can win that back pretty pretty quick. So but I mean it kind of goes to my like original story. I don't know how much time we have but I'm kind of telling if I have time. Yeah. Yeah. So, I really haven't shared this story, publicly too much, but I I'm actually kind of like proud of this story because I I made some little like notes, to kind of speak to kind of speak through it. and Oh, I'm sorry.
20:11 I didn't know if I quit screen. That's okay. Stay off. If you want to tell the story, tell a story and we'll come back. Yeah. So, it's kind of just kind of where I got like the mindset from. I won't I won't spend too much on it, but I was actually a RN, a registered nurse before I got into trading and I hated it. It was not fun. It was, you know, I nurses and doctors in the hospital settings are saints to me. But my career actually ended in a way that I would have never guessed. I was involved in an accident and I had a brain injury and I forgot who my wife was. I forgot I was a nurse. I basically forgot who I was. I lost about five years of my life just gone. So everything I learned in those five years completely wiped off the map. they called it I think it's called coupe counterc coupe injury. but long story short I it jacked up my short-term memory. I was like straight goldfish mode, bro. Like couldn't remember anything. started having seizures, personality changes because of the frontal lobe injury and I went to cognitive rehab and the conclusion was after a year that my ceiling wasn't very high to put it nicely. They told me I should consider like working at a like a toll booth, low acuity because of like my cognitive ability. nothing wrong with working at a toll booth, but if that's your ceiling, you know, that's that's that's not the best news to hear. but you know, I had good support. and I kind of just had to put my head down and grind. And that's kind of goes back to what you were, you know, what I was talking about earlier with that obsession mode. I kind of had, to create a new path forward.
22:00 And that's kind of where I started that obsession mode. overly studying because anything in life, you got to I mean, unless you come from money, and even if you come from money, it's a struggle. But if you, you know, I had nothing at that point. so I had to my wife wasn't working. She was in medical school, so we didn't have any money. And along the way, I I worked a few different jobs low acuity jobs like a sitter with brain injury patients, a jet ski, tour guide, and like just very low acuity things.
22:37 And then I broke into cannabis. Not gonna elaborate too much on that, but started as a bud tender, worked my way up in a, you know, a matter of a few years. Now I'm over retail operations for MSO. And the point I wanted to hit on all this is that like these dark moments, these, you know, 75K loss in a day, brain injury, all that. there. If people really just view these as a a good opportunity and learn from these opportunities, you really can go a long ways because my biggest the thing I see a lot of times is when people fail in trading, they just like give up. They just like don't try again or they or in life in general especially you know it seems like my generation can be bad about this too is like when things don't go our way just like flopping giving up.
23:28 what was I am 33 33 millennial millennial. and so I really wanted to bring that up because like you know at one point I bought my first stock and I just was I fell in love with it, you know, no boss, no customer, nobody else in the equation. but the part that really got me was like the no ceiling aspect because I was told I had a very low ceiling and but with trading you know if you crack the code the ceiling is whatever you want it to be. So it's kind of like a you know a bittersweet and I think that's why I obsess about it so much is because I study I back test and just keep going until you figure it out. And and now you know here we are. So, so long story short, the reason I wanted to share that is because I'm hoping that it connects with someone because, you know, that loss, the 75k loss is hard, but, your brain injury is a little bit tougher. So, I think once you have to deal with something like that, it makes things like that much more approachable, easier to understand. I mean, I didn't even know who my wife was. I had to fall back in love with my wife. Crazy, you know, it's like movie movie things. so just make sure whenever you have a moment like that, you just figure out how to capitalize on it. It's it's it's an incredibly powerful story and it it's like there's a a quote or a saying where someone says the hardest thing that anyone knows is the hardest thing that they've experienced. So when something so horrific has happened to you, the the difficulty of trading or the difficulty of the loss is nowhere nowhere near as bad because your your your tolerance of pain and suffering is so far beyond anything else. And and that's what makes it difficult for people who come up in more privileged life when nothing goes wrong.
25:31 the their their tolerance for pain is very low because they've not had to experience any pain. But that's a good way to put it. But you you've you've you've succeeded in retail as well. Yeah. You've had some success in in real estate. Sorry. Real estate as well. Yeah. I mean it goes in every aspect of you know life. It's just if you work hard enough odds are in your favor. You know what I mean? Because like if you outwork your competition, good things can come. And I get that's not for everyone, but I also don't want to hear, you know, it's hard for me to hear people complain that don't put in full effort. I get it. But, you know, that's the great thing about life in general. You can you you decide your destiny. You know what I mean? Like, yes, we all come from different backgrounds, but it's all about capitalizing on the opportunities in front of you. And I I embrace trading and I still think I'm just now starting on my trading journey. I've only been doing I've only been profitable for two years and and so, you know, embrace the darkness sometimes. rediscover yourself and just make the best of the opportunity because you only get so many opportunities and you just got to do what you can with it. And yeah. No, but I I completely agree with you and I often feel that anyone who can be a millionaire in trading can probably be a millionaire in a lot of other things.
26:59 They can be a millionaire entrepreneur. They can be a millionaire real estate person. They can be a millionaire in drop shipping because it's not cuz the one thing that they all have in common is they're all incredibly difficult things to achieve that require the right mindset and persistent discipline. And like for you, it's not a coincidence to hear that you're doing well in three different things because you have the mindset to apply yourself to all of those to all of those things. So, but it it's a strong message and it and it's really true and it it comes back to that people to be honest for me, I thought I was working hard when I was doing two hours after work each night. And I realized I wasn't working hard at all. I realized there's people doing 10 hours a night. And I thought I was, "Oh god, I'm doing really good. Oh god, I'm really I'm trying really hard, aren't I?" And then I just realized I didn't I didn't want it enough. I didn't I didn't want it as much as the next guy. And it's and it's a it's a zero sum game. But if you've got any thoughts on that, share them. Otherwise, we'll we'll jump back into the to the charts. Yeah. No, I I I agree wholeheartedly. But yeah, I'll I will share my screen again, get back to where we were. can I just ask, are you grinding like 20 hours a day or something or not so much now? on all of the things that you're doing. Are you very work focused, success focused, or have you've done the work? Yeah. No, definitely. I I probably a little crazy to be honest. but a little obsessive like I was saying. I The weird thing about it is yes, I I spend many you you got to fall in love with the hustle is the best way I can describe it. Like I enjoy it. Like my free time is doing this. I enjoy it. You know what I mean? But like I also have noticed that once you do become successful in c certain things that that hunger kind of goes away. So it's almost like making sure that hunger stays strong.
28:50 because I've noticed now I get a little bit more complacent. Like I was saying, I don't study charts as much as I used to. I don't do x y and z. But yeah, I I put in some I mean I you work I have a W2 as well. So, but yeah, so this is where we're at now. And I actually, have a few examples of, you know, I don't know where you wanted to go from here, but, I do have some examples of some charts pulled up of some trading styles that I, you know, my shorting strategy if you want to go over. Yeah. No, I think it'll be tremendous value to the community. Yeah, I think we've covered some really nice things here from mindset from what it takes to to have success and yeah, let's talk some technical so people can see exactly how you can have an edge for as much as you're willing to show.
29:41 Okay. Oh yeah, I I'm very transparent. so I kind of have it's like I was saying and I don't if you allow me to to give my handle out. I do have Yeah, I do have a little a group I'm I'm starting and I will gladly share any Like I said, I I appreciate the opportunity. I would love to teach, but I do have kind of like a breakdown of my trading style and I'll go through all of them. like I was saying, I do have a cheat sheet. I thought I had it pulled up here, but I'm not sure if I do. But I have I kind of trade based on like time frames. So, the very first time frame I'm going to go over is the 4:00 a.m. to what is it? 6:59 a.m. This is my favorite, but I have a hard time I'm going just be honest, just being real. I have a hard time making myself get up at 4:00 a.m. every day. because I'm a I'm a night owl. I usually go to bed after 12, usually one or two o'clock.
30:42 So, that 4 a.m. gets here pretty pretty quickly. so, this is the first. So, but this is the first one. It's called the pre-market heavy spike, or that's what I call it. This is my favorite out of all the trades. And as you can probably see why. and in from 4:00 a.m. to 6:59 a.m. stocks just pump. And it's usually not related to news releases. I don't know if it's Discord groups pumps or or what. You know, I I I'm not here to tell you what's happening, but I can tell you how I trade it. But as you can see, like this is a frequent occurrence. 4:10 a.m., especially from 4 to 4:30, because even if I do wake up, I'll I'll wake up from 4 to about 4:30 and then if I don't see trades, I just go back to sleep.
31:30 is that healthy? That's debatable. But, this is how I trade. you know, you can't have it all. But so this this pumped at $410 and went all the way from let me hide the zoom thing. So it went all the way from $4 all the way to $10. And as you know things like $10, they're like hard psychological levels. So I put in a short once it started looking red. And there's not much to say about this one.
32:00 This is how this is how these 4 a.m. trades play out. It's about as easy as it gets. Like I don't think the strategy is super hard where a lot of people because there's not enough there's not enough liquidity in the market at 4 a.m. Like it's easy to knock this thing right back down and and a lot of people like blaming it on shorts. A lot of times it's the long selling that's causing this more than the shorts.
32:25 but regardless, it'll dive back down almost exactly where it was at. So, that's what I call the like the pre-market heavy spike fade. And my Do you have any like are you looking for the first five minute red candle on that or something for the entry or is there a safe way to get in or is it scale it or Exactly. Scale it. So, I especially when you look at let's see what can we compare this to. Whoa, this was a new stock. So, yeah, this is a perfect example actually. There's no levels. I don't know if this is a new stock that hasn't been trading long, new ticker name, whatever, but for especially for something like this, if you want to enter this position, you you must realize there's high risk because there's there's literally no levels. So, what I usually will do is when I notice a pop, little scale, little scale, little scale, little scale. And to your point, it's all about small because when I've had my big blowups, it's usually because I've scaled in too early. So, I never go 100% in. I it's like I usually try to get in about four times. So about 25 or about 20 let's just say five times. It's 20 to 25% of my position and then once I get to where I because I I pick 10 because I had a feeling that it would not bust through 10 and you know it it it couldn't close over 10. So by the time I did that I probably had an average around 859 and then it just it just tanked. So, yes, good question.
33:58 Scale in with shorts. I think it's very ill advised to put in your full position immediately unless we're testing a zone, and I can get into that on another chart. but yeah, super. I think this is the easiest trade that I do. This happens quite frequently. And do you have a number where you say I'm out? Because it's like, how high can a high stock go? Yeah, you got to have those. I don't like actual stop losses. because I've learned like a lot of times like appropriate stop-loss is probably right above 10. Well, what would have happened here? It would have hit that and came all the way down. So what I've learned is have like a mental stop-loss. is that more high risk? Yes, it is more high risk. But you are going to lose some trades when this goes up. So I told myself 10. If it breaks through, if it goes from two to 10 and it breaks through that psychological level, get out. Get out, you know. And I got in around 850, probably average. So, yeah, that would have been a decent sized loss, but you know, a decentsized loss doesn't blow up your profile, your account, you know. So, but yeah, definitely scale in. And here's the little cheat sheet I was talking about, but I'll give my handle at the end with this information.
35:17 But the next one is very similar. same concept. I won't spend too much time on it. This is from 7 a.m. to the 7 a.m. trade. This is actually today. That's why I pulled it up. I shorted this one today. and insane levels. Like look at this. It went from like se 70s to $11. Beautiful opportunity, but if you get in too early, you you get blown up. So again, it's all about scaling into these positions because you got to have enough in your account for it to be a little red, but you just have to have a a certain position where if it goes here, I have to get out and played out beautifully. The next one is my kind of the 9:30 to 10:00. this is when you, as you know, the market's the most volatile. And this is where I'm talking about you can go in a little bit heavier. and obviously, you know, not financial advice. This is my strategy. I go in heavier whenever I see a clear pre-market high. So, these are one of my favorite actually, because I'm usually awake, alert, oriented. You know, 9:30 is a good time to trade. And I did go in a little bit heavier here because these you can kind of So, I know that if it breaks this pre-market high right here, I'm getting out. And it happens to be 10. Again, another psychological level. It's just hard for people to push past, you know, solid numbers, especially like 10. So, pre-market the highest it got up to 10.
36:53 I put an entry a little before that. That's the key. Don't put your entry or I don't put my entry right at 10 because it might not fill. So, I do it a little bit before maybe 975 or something. And I barely got it here. And then you can go heavier because see, even if it goes through this, your loss is minimum because it only went up a few cents. but those other ones I showed you, you don't want to do that because you don't know where the top is. I know where the top is right here. And if I'm wrong, small loss. If I'm right, it plays out beautiful like this. So, this this is one of my my favorite strategies.
37:33 I'll stay through this one quickly. same thing. scalping. I do this during the day from 10 to 4, you know, just find levels. and I use your Kinfo. I exported this to to Trading View. you know, just like as you can see right here, it's just whenever it pops because I actually like to to to kind of snipe like like trade like this, but I go a lot smaller because it's a little less predictable. Then the the after hours. like I was saying, you know, I have a different stylist for each time of the day.
38:08 It's all shorting, but depending on when I can trade for the day, this is what I look for. After hours are usually pretty fun, too. It has more liquidity than pre-market, I believe. I could be wrong, but for me, they don't seem to fall as hard. So, once you get a pop like this, see see if you can figure out where it's topping out. $1 is usually a psychological level as well, but it busted through that pretty cleanly. I took a a short position and often I'll look at, like I said, I don't use a lot of indicators and stuff, but I will look at their cash position. I will look to see if they have any offerings. I will look at you know, more fundamental things like that, especially if I'm going to hold it overnight. And I liquidated some here. And as you can see, a lot of times they just do not hold their gains. And then the last chart I have is sometimes I do swing trading as well because one of my favorite I I've never seen anybody talk about this so I'm sure other people trade like this but one of my favorite things is a pop Friday afternoon. That's what this was. And nine out of ten times people will completely forget about the stock come Monday. And some people might say well don't you have to pay borrow fees over the weekend? Yes, that's something I factor into the equation. Of course, like if it's insane borrow fees, the risk or the reward's not there. But I remember this one, this was very recently. What was it? Yeah, earlier this month. it was like 30 bucks overnight for like a 10k position.
39:35 So I think I paid like 90 bucks on a 10K position. so that's that that wasn't much for me. and then as predicted by the time Monday got here, straight liquidation. And I mean that's a solid, you know, 169 to 118. I mean that's that's a nice that's almost 50 cent 50 cent drop. so yeah no that's that's my strategy in the nutshell. just I have different time of days different strategies for those time of days and when I can trade I try to execute and I try to find a simple strategy. I don't think I'm the smartest guy out there far from it. I just try to make it as simple as possible so it's hard to fail and I do it on my phone and yeah that's that's that's it in a nutshell. No it's incredible. so I mean when you just a couple of questions and we'll close but do you have any like how far does your fundamental analysis are your technical analysis go? Do you are you looking into the news? Are you looking into kind of the history of the daily or the does float matter?
40:42 So float doesn't matter. I it probably should matter. I see some people that talk about it religiously. I more focus on the technicals. So I probably didn't talk about technicals enough because some of those examples like was a brand new stock. But it that's kind of the technicals are key areas for profit taking and to see how high this stock can potentially go. The fundamentals I if I'm holding a position that doesn't drop. So, my favorite stock is the ones that go up and straight down, of course, but sometimes they don't do that. So, to decide if I'm going to hold or sell is usually based on the fundamentals. I look at their cash position. I look and see if they have a history of offerings.
41:23 I look and see if they have a history of maintaining gains. And like I said, I don't look at float much, but I do look at market cap. I prefer anything. I prefer under 20 million. 50 million I I can do. And I rarely short things under 100 million because they just retain their gains. They just they don't they they're real companies. Yeah. They're real companies. Yeah. So they they don't always drop down immediately or ever.
41:51 You know, if it's good news, most of these, you know, stocks less than 20 market cap, it's just fluff. you know, it and I hate to say it, but most these press releases, you know, like you'll see Bioc release phase one data and it goes up 300%. Fundamentally, nothing has changed with that company. They're still not making money. They still have to pass phase two fast phase three FDA approval. So, that's kind of how I look at it. And it's it's nice. I I I see the strategy that you're talking about. It's nice that you've it's nice that you've shared it. I've seen similar traders trade similar things and make a lot of money just like you are. the reality is people get scared that it's going to lose edge, but it probably won't because no one's going to get up at four o'clock in the morning to do it.
42:36 And it's that comes down to how bad you want it again. Yeah. But I think I think that's pretty much a wrap from me unless you had any other any other messages. Any any links that you want to drop in the description, we'll drop in the description when the video goes live. So, if you want to shout out any links or any any places where people want to click, that will be in the description below. But otherwise, it's just if you've got any advice for for people to get started doing what you're doing.
43:06 Yeah. And I I appreciate that and appreciate you having me on and appreciate the app as well. wish I would have found it sooner so I could flex more gains, but that's this has been since the bear of Wall Street was created. But yeah, I mean it goes back to some of the things that we were already talking about is risk management. you know, you probably everybody talks about it, but you really have to find those levels and respect them. The times I did not you know, it it it ended ugly and coming back from large losses is so hard, especially when you have small wins. my handles I will I mean I'll give it a shout out. I I recently created a Instagram handle for Bear of Wall Street and it's called Bear of Wall Street. It has a period in between each word. So bear period of period wall period street is what it is.
44:05 And I also created a little circle group that's free. Don't plan on charging for it. maybe in the future, but I I've been blessed you know with learning this strategy and I would like to help others. and the circle group. I'll it's easier just to probably put that one in the the link, but I'll put you guys can click below the links. The links will be there. Just send us by email after the thing. But, and I guess that's the best advice to get started is to join the circle group, right? And, and start learning day-to-day. And then I might jump I might jump in there as well. Please.
44:44 Please. Yeah. I I again it's not it's it's not a I don't think it's a super hard strategy but to your point what we've talked about a lot you do have to you do have to respect the risk with shorting because it's the one strategy I mean there's other strategies but you can have unlimited losses that's why you have to make sure you you respect the respect the game or you'll get humbled quick and we'll end on that Justin thank you for the personal story.
45:15 Thank you for your time and thank you for the invaluable advice. There was a huge huge huge amount of golden nuggets there that most people don't share. So, thank you for your transparency. Yeah, absolutely. Anytime. All right.
Summary
- Justin's trading strategy focuses on shorting small-cap stocks, particularly during pre-market hours and volatile market openings.
- He emphasizes the significance of backtesting and understanding chart patterns to identify profitable trading opportunities.
- Mental resilience is crucial; he discusses how past experiences, including his brain injury, have shaped his approach to trading and risk management.
- He advocates for scaling into positions rather than going all-in, especially in high-risk scenarios.
- Justin highlights the importance of respecting stop-loss levels and knowing when to exit a trade to prevent significant losses.
- He operates primarily from his mobile phone, allowing him to balance trading with other professional commitments.
- The podcast encourages traders to embrace losses as learning opportunities and to remain persistent in their trading journey.
- Justin offers a free community group for aspiring traders to learn and share strategies, emphasizing the collaborative nature of trading success.
Questions Answered
What challenges did Justin face in his life and trading journey?
Justin shares his struggles with identity and memory loss, emphasizing how he felt disconnected from his past. He highlights the transformative potential of trading, suggesting that success in this field can redefine one's limits.
What insights does Justin have about trading small and micro-cap stocks?
Justin discusses the challenges of trading small and micro-cap stocks, noting that while they can yield high returns, they often lead to significant losses. He emphasizes the importance of finding an edge and understanding market dynamics.
How does Justin manage the psychological challenges of trading?
Justin emphasizes that mental resilience is key in trading. He acknowledges the difficulty of handling losses and the importance of learning from them. He shares that he has developed strategies to avoid entering trades too early and to exit at the right time.
What does Justin say about the level of commitment required for success?
Justin reflects on his work ethic, realizing that he initially underestimated the effort needed to succeed. He acknowledges that many successful traders put in significantly more hours than he did, which motivated him to increase his own commitment.
What trading strategies does Justin employ during different market conditions?
Justin describes his approach to trading, including specific strategies for pre-market and after-hours trading. He emphasizes the importance of timing entries and managing risk effectively.