Ep. 2 Of Transparent Traders - Top MILLIONAIRE Trader Huddie Reveals His Core 3 Trading Patterns

0:00 today we have huie I really love the way that the market has been we're going to discuss his trading strategies and that's what I've learned in my 9year trading career like pns they come and go the value of transparency my opinion on this is very personal and I think puers bring opportunity and his tips for you tra us both people are watching the wrong stop the first thing I think most F need to understand is side today we have hudie a top Trader on

0:26 kin for's leaderboard we're going to discuss his trading strategies the value of transparency and his tips for new Traders but first very quick reminder Kino pro and pro plus are now free for the first month so all you have to do is log in click upgrade and you'll get access to those Advanced reports and analytics but first of all hudie absolute pleasure to to speak to you today how how's life how's trading yeah long time no see you

0:51 Stephen it's good to see you it's good to talk to you thanks for having me on the podcast I'm very excited to talk about trading trading has been kind of you know every year you're still learning and even in year nine I'm still learning I'm currently living in Miami enjoying life out here enjoying the East Coast hours predominantly they on the West Coast Trading so this year has been great I really L the way that the

1:14 market has been the volatility has been exceptional especially in small cap and we've had some really cool events I mean Rory and kitty being one of them I'm sure we'll talk about it a little bit yeah I've got a question I wasn't sure I was going to ask you but I'll put it in a bit later but first of all just to get into your trading your trading Style I remember about 5 years ago you once said

1:32 to me mimic The Best The Rest in reference to adopt improving strategies do you do you still have that Mantra and trading I really do I mean I I figure at one point you got to find a mentor you got to find someone that you believe in you believe in their trading style you believe their profits and then your job whether it's trading or anything in the in the world that you have a mentor for you really want to be coachable you want

1:56 to be able to mimic exactly what your Mentor is teaching you and not try to have your ego you know take you in a different direction because you think you know best in my opinion the wheel has already been created for us why white create a hover car when driving on the road with four wheels works fine just make the wheel a little bit better or find tune it to whatever car you're driving yeah know it makes F I mean look

2:18 trading trading is hard enough without trying to figure out some sort of New Edge right sure yes in terms of of how you initially got profitable I kind of recall that you were you were very very focused on the first red day button is that still something that you're running with do you still Trad it has it changed it's definitely morphed over the years it's not the same setup it was back in 2017 2018 and 2019 main

2:48 frequency of how often that pattern's coming around is it really there and a lot of the times I am getting kind of squeezed on that setup so it's actually no longer my bread and butter and that's what I've learned in my nine-year training career like patterns they come and go and sometimes the pattern is still there but you need a different perspective on how to execute it maybe the short is not necessarily right at Market open but it's into a previous

3:12 High instead of where it once was right so so there's little minute differences that kind of go with each pattern first red days yeah that's something that I focused on for four or five years and since it's become still a pattern that I trade but less frequently definitely less frequently so so in terms of like observing and noticing the nuances is that statistics or data or are you using statistics and data to kind of measure points this this entry

3:39 is better here than there one of my main improvements to my trading this year has been using a company or a program called spy Gathering data to kind of have a better idea of what the daily expected value is where do I think this candle is going based off of the Open The Gap number of days in the sequence Etc so I have been adding a lot more data to my trading and yeah in the data like

4:05 alone like overextended gap down specifically the ones that gap down aren't that profitable I mean unless you're perfect in including slipit it's probably break even over the long run at least how I Define it so it's not what it once was yeah because I think it's personal to me I guess because I I really went on a good run with gaping crops and I went on a good run with gapin crops somewhere in 2020 and the

4:30 patent worked for about a year and I thought I was going to be I made the first 100K I thought it was going to be a millionaire I thought life was sorted and my ultimate downfall was one discipline but two not being able to adapt to patterns and you seem to have been able to make that adaption so what would you say to the Traders cuz I'll not be the only one what would you say to the traders who have failed to move

4:51 with the market and because it's it's really hard the first time to crack a pattern that works you've got to do it again and again and again yeah so the first thing I think mosters need to understand is size is overrated I think most of us are trying to size into the tightest risk level in order to experience the most reward relative to our risk I think often times for Traders that takes them out of the

5:11 play too early so a lot of times especially with dapping crafts you have a situation where they're trying to manipulate you up they're trying to wake it up they're trying to wake it down and so if you have tight risks whether it's high day or not you're most likely going to get Wicked out and the play will still kind of fade the way that it's supposed to but you didn't have the right risk level going in right you is

5:32 just general so yeah I forgot the question what was the question specifically no I was I was just thinking how do you how can you explain the traders that they need to kind of adapt or how do you what process do you follow for you to adapt because most Traders just get stuck on one pattern yeah so the first thing it is is like cracking your traits right you need to understand you know if you're trading

5:56 one specific pattern what's your average win what's your win rate what's your average loss and over months in many sample sizes you're going to get kind of an idea of whether you're hitting it consistently and the equity perur is kind of going up in a straight fashion or is there a lot of chop in between and then you have to decide is that chop because of me because I'm taking myself out of the trade too early or is that

6:16 truly because the pattern is broken and that's what I was you know kind of referencing with earlier which I I really think Sid is overrated because the second we start losing big dollar amounts is the second we want to really stay away from that pain we don't want to gravitate towards back to that so having some kind of consistent loss level where you can trade it 3040 50 times maybe it's not a 50% win rate but

6:40 with some type of good risk reward at the end of 50 trades you shouldn't be blown out if it's a good enough setup and you can kind of identify whether this is something we should continue to trade or not for me again a lot of the first red days that were gapping down we're just going green back in 2017 2018 you didn't see that as much it was a much more power level or a line in the

7:00 sand that never got crossed so it's a risk level that I trusted and now I don't trust it as much because I just see a lot more losses in my data yeah do you ever do you ever think of the reason or the rationale why the patterns are changing do you ever guess that or do you just think that the numbers are all I need to know about there are some things we're going to understand and there are some things

7:21 we're not going to understand right and I just try to put myself in situations that I understand I don't try to figure out the impossible I don't know if it's an algo I don't know what is going on in the market most of the time I just know what is supposed to happen and where my wrist bubble is right I Can't Tell You Why green red used to hold like like a GI it was like magic I would short I

7:44 would put my stop loss for needed to go at the end of the day I didn't stop out now if I do that I stop out right and I don't know why it rejected so well in the past and why it doesn't reject anymore maybe there's more short sellers I don't know I can't I can't tell you though but you're literally just following behavioral patterns and Trends and and waiting for what should happen to happen and then if it doesn't

8:06 happen you get stopped it's basically it exactly W yeah I and that that's the nature of trading right you have you have a setup you have a plan on how to get in what triggers the the entry and then you have an expectation of where you want to cover either a price Target or a time in the day that you want to cover in and you wait and it's a lot of waiting and not pushing buttons

8:27 because a lot of the times our Traders kind of M themselves up is when they start trying to add to a winner you you hear so many lines on Twitter and through the training community of like these like euphemisms of you know tight risk wide reward stuff like that and it's like I think when 90% of people start believing the same concept that's when the concept starts to break yeah absolutely 100% understand that and in terms of from 2020 to say

8:53 2024 have you adapted your trading approach now compared to the past so it's been so again I've been trading for nine years and it's kind of crazy to be saying that in the first three to four years where I was very consistently profitable I was trading majority first red days as we were just speaking about then in 2020 and 2021 it shifted in that moment first red days were actually turning into like first gday breakouts like the pattern was shifting where they

9:20 would kind of recover into the end of the day the the overnight interest was quite High to even swing them and then the next day they were kind of breaking out we were in a market where a stock and put out a toxic offering and it's gapping up the next day and no one cared about the fact that they're going to dump millions of shares and the stock would still go up so it became a market

9:39 again adapting right it became a market where it wasn't it didn't beho me to be a short seller I I along the stupidest trash and it might Gap up and there's pretty good odds of it happening so 2020 2021 I became mainly long biased I I pretty much only bought thops and and made a killing and then 2022 it shifted again and every stock that I bought was either a fake breakout or LED to an offering of some sort because these

10:06 companies needed to get cash even more now and so and so longing wasn't the thing anymore first red days weren't really paying me that well it was a lot of like $7,000 months and then minus $7,000 months so really not moving the needle forward although in the moment maybe felt good so that led me to this year where I said hey I'm coming in December you know I'm in Thailand I'm making my resolutions I'm making my

10:32 business plans I'm saying what do I want to achieve this year and how do I want to achieve it what patterns do I want to trade how much money do I want to start with how much do I expect to make at the end of the year risking this amount on every single trade and part of that Dynamic I mean the three trades specifically number one and the main one that I've been trading is the gaping

10:53 crap with some mixed results but predominantly net profitable that was kind of the easiest data sheet for me to attack on spiky and say hey what percent gaps likely fail how much do they specifically Spike or normally spike and where can I kind of identify Trend breaks or areas to get in to experience that all day fake and that's been predominantly the number one trade that I've taken all year there's been so many gaps that it's been a good market for it

11:22 and that's kind of the one thing that I keed it on it's it's a good frequency and even if some month it's not profitable it keeps me busy most days and has a decent amount of risk on the table where I don't find myself pushing buttons on setups that don't have data attributed to that and that's a really good thing for a Trader is to have a qualified setup that keeps you busy because if you're not busy and you're

11:45 searching for a setup you're going to find something sub part a trade and then take an unnecessary loss almost every time the other two setups that I F myself I trade this year but only the best of the best if I can identify them would be first red days and a couple breakouts here and there but predominantly you know this year I I want to focus on Gap GRS I want to have a year of data and at the end of the

12:06 year say okay this is how I've done on them you know am I going to continue this into 2025 we're going to quickly take a quick break here I'm just going to jump to a message from today's sponsor and then I'm we're going to jump into some interesting questions on burus and gurus if you're an active Trader then Centerpoint is the broker designed for serious Traders like you Centerpoint offers Advanced Trading tools flexible rooting options and an

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13:02 dilution tracker and more click the link in the description to elevate your trading experience with center point where active Traders get more so hoodie first question on transparency gurus and furus I mean what motivated you to join kall and and the second part is has it benefited you personally or does it benefit anything with Clover trading yeah so one of the way way that we wanted to differentiate ourselves amongst the other educational trading

13:33 rooms is to be 100% transparent I don't believe you can learn from someone unless you actually see their traits and you kind of get the confidence to know that it's possible so Kito was a really nice program or or use case for Clover because it allowed us to be verfied by third party but again some that's not affiliate with Clover at all and so our students or the people that are interested in learning from us can

13:59 actually see our trades our Equity curves our risk reward ratios and can actually make that that educated decision of is this someone that you believe in that can actually educate you and take you to the next level and without a company like kinfo it's hard to really show the public that you are profitable because you can hide trades or you can only post your best trades on Twitter and leave out all the ugly I mean you see it all the time right I'm

14:24 not really someone that posts traits I don't really care about showing off to Twitter about my loses or my wins but I am 100% on Kino my accounts are there and it allows my fos to backtrack what I'm saying and I think it helps with the learning process so it's really difficult for a new Trader because it's it's like a a swarm of people run into ATT track the new Trader to try and Mentor them so with all these

14:48 self-proclaimed gurus what qualities should someone look for in the right mentor and what red flat should someone avoid to avoid the furu yeah it's tough because I think it it it revolves around having some kind of wreath on a character I I I like to say like if he needs to pass you or she needs to pass the millionaire test okay do they care about how they they present themselves you know do they work out do they eat

15:18 healthy do they socialize do they not have a good time are they social you know social people I mean all that kind of matters so first of all are they likable you know and that that's just you're like judging a book by the cover and you kind of have to do that at the beginning because we're dealing with internet personalities right so do they jive with their their inner personal life like does that someone you want to

15:39 Aspire to be is that and generally like that would lead me to someone that I think is relatively successful or they have good discipline or or good routines and you're going to need that whether you're a guru and and stop treating or anything you need routines and disciplines across life and and then the next thing is what do they trade you know for me my my main person I looked up to was Tim gratani it's because I

16:04 really wanted to short first red days and he pretty much created the textbook for first red days so he was you know not only that I like the way that he presented himself but also I really lik the way that he traded I liked his transparency where you could actually see how much money he was making he wasn't footing around he was you know making 80k in a day sometimes if not more if not less it was just really

16:29 inspired it and I said okay I want to be more like that guy and so that's why I found Tim grani and that's what led me to be profitable yeah no I absolutely love those gratani webinars back in the day as well and they were amazing yeah unbelievable and and I don't know how relevant they are today I'd imagine it's always relevant because history is always going to repeat you think they're still relevant a lot of that education

16:52 to take away even as mind yeah I mean look if you're looking at like GameStop the other day and you have like a stock that's on a third Green Day gapping down for the first time has a conference call later in the day or webinar you know media sell the news event and that's all you know A+ type of Tim gratani setup where you had you know again I kind of just said it but third Green Day gapping

17:12 down sell the news event yeah he's going to want to go in and shortcut that is relevant today absolutely and and that I guess that takes us nicely on RoR and kitty and furus and pumpas in the market do you think these furus and pumpas have a more positive are more negative impacts on the market overall and it's sucks because I think my my opinion on this is very personal and I don't maybe maybe it's not true

17:38 for the entirety of the market I think they're great I think Pumpers again I don't know about the entirety of the market just for my perspective I think Pumpers bring opportunity you know I had a great May and that's because of you know a phenomenal trade between gme AMC and ffid and if you know how to trade patterns instead of drinking the kud you can find opportunity within this huge volle cycle that would not have been there if R didn't start tweeting

18:05 but that those opportunities wouldn't have been there right so for me it's really good because it brings in big volume brings in Big Range maybe it's a horrible ticker I mean we could talk about Zach Morris pumps from back in the day and cdii was one of the biggest trades I had from the previous years because I know it's CDI is and I know he's pumping so I can be on the right side of this chest match but if you

18:28 are a noice coming into the market and the only reason you've come into the market is because you know of a very Kitty well you do stand to lose a lot of money if gme doesn't go where it needs to go and you putting your belief in again some internet face is probably not good and I think that there's more people that are that narrative than they are my narrative which is like okay bring the opportunity bring the volume

18:51 bring the volatility I want to trade that whereas I think a lot of the newer people get stuck in that and then they become if it's a zero St game my win if their loss do you have a a favorite Poma or do you have a most hated Poma of foro I can name a lot of people but I think are Pumpers I think there's a lot of Pumpers out there some of them are my friends unfortunately

19:12 and I think my favorite is Bing Kitty though I mean he really kind of stolen the show he's the most baly out of all of them I mean the GU you only have one sequel right you only have one sequel you only come back from making a $30 million trade and what if the guy do he takes a $200 million position like that is exactly what you need to do in order to be the legend that you off and that's

19:38 why he's my favorite bumper because sure Zach Morris made some money but just think royan Kitty did it in an epic way and whether he wins on J or loses I just I respect it you know that that's a lot of money to put on the line publicly yeah I mean I think what the one thing that I would like to see I can't speak for Kino but it would be nice to see RoR and kitty or or zag on for don't don't

19:59 don't know if it'll ever happen don't know treat from from brory P they g& four years ago and GM today we'll get to some we'll finish on some trading advice for some new for some new Traders so do you have a best first setup for a new trade at the land I think the first thing a Trader needs to learn is the life cycle of a stock that is hot okay like the volatility like what what is generally

20:27 going to happen during just like Peaks and waves and then it's about finding that individual day that you understand the most maybe it's the start of it the first greed day where the volume comes in maybe it's the peak where the volume exhausts itself maybe it's you know more towards the backside where it's bouncing off the lows or you know make it a lower high to the bigger resistance or maybe it's when it falls off a cliff and no

20:49 one's interested right there's generally these there's a framework is what I'm trying to illuminate on that a stock that is in play or is being hyped up or has a forward looking Catalyst and it has tons of volume and interest it's going to go through these waves of emotions and psychological patterns that present themselves in Candlestick charts so first you have to be able to identify like a stock is doing this because most people are watching the wrong stocks you

21:17 need to get your eyes on the right stocks once you're watching the right stocks then it's like okay what can we do from here again I think you have to understand the whole framework to understand which specific day that you want to attack for me personally in the freight workk I love the first R day I really do I think it's the most obvious to kind of point out and it's got a really high win rate but there are

21:42 other parts of that cycle that I think are great too you know first grade days are good for beginners breakouts can be really good if you know how to track them and do them like in a very disciplined way but yeah I think first and foremost get your eyes on the right stop do you have any other kind of general advice for someone who's absolutely new to the game anything that you might say like clo trading what what do you say to

22:04 the new guys when they come through the door to get them started anything about risk management or yeah so the first thing we start to tell people is to scan for big percent gors trading volume those are going to be the stocks that are in play those are the active stocks and then the next thing we kind of tell people is focus on dollar risk so I don't care if I'm risk being I I focus on dollar risk and

22:26 consistent risk it's a marriage of the two so so let's say I have a setup and I want to risk X doll on it well sometimes I'll be risking 30 cents sometimes I'll be risking a $150 and whether it's 30 cents or a $150 I still want to lose that X dollar amount I want that to be very consistent so it doesn't really matter what the net difference between the two different plays are I want to be sized in consistently with

22:53 respect to Dollar risk and then you're going to start to understand once you start to do that different plays that offer different risk reward ratios some may be better built than others some intraday may be better built than others and you start to be able to qualify okay this one's so wide that if I have my consistent risk at the end of the day it's not going to be one to one whereas this one might be somewhere in that

23:16 sweet spot where if I'm getting in I'll lose one R but if I win I'll make three R and now I have a one to three risk reward ratio so I think that's most important is learning how to be consistent about your your position sizing yeah know that makes sense and I think I think you kind of covered a little bit of risk management there could you talk talk a little bit like a lot of people are wanting to get into

23:39 stats and Data Tracking because a a lot of good Traders a lot of professional Traders track stats and talk about a little bit on Twitter so how does someone start with that I think you start with a very general idea right for Gap gapers is like the easiest one for me to talk about right the first thing that I'm looking for is like what what what percent Gap do I want to see do I want to see 50% gappers do I want to see 100%

24:02 gappers do I want to see 200% gappers like what what field do I want to be playing in and then once I'm in that field I'm doing other very rudimental statistical work like what is the average open to higher debt how much do I expect these to spine if I put my stop loss somewhere stupidly wide is it going to touch me or is at the end of the day I'm going to have a winning result and

24:27 that's kind of how I play with stats it's just like what what is once I have the foundation of the idea what can I expect are likely intraday movements and then how can I position myself as best as I can within that General understanding of of what to expect does that answer the question no no makes absolute full sense I think it's a lot of golden nuggets it's going to be very useful to people on the on

24:50 the call I think that pretty much wraps it up Hy unless you've got any final thoughts or anything you want to say about Clover trading just just to wrap is no I mean look been an honor and pleasure talking to you Stephen it's good to see you you guys know where to find me Clover trading. or Mike udie on my on my Twitter or Instagram that's where we teach about stocks make watch list do webinars and if you guys

25:13 want to learn about small cat trading that's where you can find us but other than that it's just been good talking to you well guys just wait one second I just do want to remind you all the center point Edge offering is available to everyone we've got the link just down below in the the description check it out and thanks for watching