BY TRAVIS R.

MASTER THE
MARKET:
Day Trading Simplified
 Main Email: [email protected]

A quick background story on myself: I have been day trading

since my senior year in high school, about 4 year ago at the time
that I'm writing this. I have learned every lesson the hard way...
most multiple times, which is why I wanted to put together this e-
book so you hopefully will have an easier time becoming
profitable. As you can see by some of my profits I've included on
pages 7 and 8, I'm starting to find a great amount of success in
the market after years of studying, strategizing, testing, and
failing! Learning the market takes time on your own, but is well
worth the effort and can truly change your life.
Make show your support by sharing on Twitter, Facebook,
Instagram, and with your friends if you find this ebook
helpful!

*This document contains affiliate links.

Important Definitions... page 3

Intro to Penny Stocks... page 6
Brokers... page 8
Charting & Patterns... page 13
Managing Risk... page 22
Strategies... page 24
Scanners... page 30
Day Trading Equipment (Office)... page 33
Other – Cryptocurrency & More... page 35
 Important Definitions
3.

Bearish: Someone who is “bearish” or believes a stock is

“bearish” believes the stock will go down, meaning they likely
have already sold or have a short position.

Bullish: Some one who is “bullish” or believes a stock is “bullish”

believes the stock will go up, meaning they most likely have a
long position or are planning on entering one.

Dilution: Dilution is a reduction in the ownership percentage of a

share of stock caused by the issuance of new shares.

Extended-Hours: Refers to both pre-market and after-hours

trading. Pre-market hours are from 7:00am EST – the market
open at 9:30am, while after hours begins at the market close and
ends at 8:00pm EST.

Filings: SEC Filings are documents submitted to the U.S.

Securities and Exchange Commissions (SEC) to inform investors
about company information such as earnings, trial results,
awards, presentations, etc.

Float: The total number of shares available for trading by the

public. Float is calculated by subtracting closely-held shares from
the total number.

Fundamentals: The fundamentals include the basic qualitative

and quantitative information that contributes to the financial or
economic well-being and the subsequent financial valuation of a
company, security, or currency.

Intraday: Market hours. From 9:30am EST to 4:00pm EST.

4.
Long: A long (or long position) is the buying of a security such as
a stock, commodity or currency with the expectation that the
asset will rise in value.

Level 2: Level 2 provides the user with depth of price

information. It shows you the a list of all the bids for the
underlying stock ask well as the asks (or offers) with how many
shares are being bought/sold.

Outstanding Shares: Outstanding shares refer to a company's

stock currently held by all its shareholders, including share
blocks held by institutional investors and restricted shares owned
by the company’s officers and insiders.

Pump and Dump: A pump and dump is a scheme that attempts

to boost the price of a stock through recommendations based on
false, misleading or greatly exaggerated statements. The
perpetrators of this scheme, who already have an established
position in the company's stock, sell their positions after the hype
has led to a higher share price. This practice is illegal based on
securities law and can lead to heavy fines.

Realized PnL: A realized PnL (profit and loss) is a profit or loss

that you've locked in, meaning you've sold or covered the
position. (Compare to “unrealized PnL).

Technicals: A type of stock analysis using past price history,

chart patterns, and various indicators to determine where the
stock is likely to move in the future.

The Tape: A commonly used name for a stock's Time and Sale.
The tape show every transaction going through within the stock
and can be a great indicator for when to buy or sell.
5.
Short-Sell: Short selling is the sale of a security that is not
owned by the seller, or that the seller has borrowed. Short selling
is motivated by the belief that a security's price will decline,
enabling it to be bought back at a lower price to make a profit.
Often just called “shorting.”

Short Squeeze: A situation in which a heavily shorted stock or

commodity moves sharply higher, forcing more short sellers to
close out their short positions and adding to the upward pressure
on the stock.

Stop-loss: A type of order used to minimize loss when a security

goes against you. Stop-loss orders can be set to automatically
sell your shares of a stock if it reaches a pre-specified price.

Volatility: A statistical measurement of the dispersion of of

returns for a given security or market index. Generally, higher
volatility creates high risk.

Volume: Volume is the number of shares or contracts traded in a

security or an entire market during a given period of time.

Unrealized PnL: An unrealized PnL (profit and loss) is a profit or

loss that you haven't “realized” or locked in yet. In other words,
this is how much you're currently up or down on a position and
fluctuates with the price of the stock.
 Intro to Penny Stocks
6.

Penny stocks get a very bad reputation and most people will
automatically assume you're simply a gambler if you're trading
them. In all reality, they're just as predictable (if not more) than
blue chip stocks, such as Amazon (AMZN), Facebook (FB),
Netflix (NFLX), Apple (AAPL), etc. In this guide I'm going to help
explain and teach how to accurately predict and profitably trade
penny stocks... so let's start with asking “what is a penny stock?”
Penny stocks are typically defined as any stock priced at or
below $5.00 per share, but many people (myself included) often
think of stock priced at $10.00 or lower as penny stocks.

The reason they get such a bad reputation is actually for a very
valid reason. When you think about investing in the stock market,
you typically think of very well-known and reputable companies,
which, in most cases, is the complete opposite of penny stock
companies. So now you may be asking “well, why would I want to
put my money into one of these sketchy penny stock
companies?” The answer is simple... we're not investing into
these companies, we're simply taking advantage of their low-
priced stock's volatility by using chart patterns, price action, etc.
In fact, the fundamentals of the companies often become
completely irrelevant when volume comes in and increases the
price action and volatility. With that said, some of my best trades
and largest profits have come from the most untrustworthy
companies (large amount of debt, decreasing revenues, history
of dilution, etc).

Now, lets talk about a few of the benefits of trading penny stocks.
Well, the first is the potential for massive profits in such a short
period of time due to their increased volatility over larger priced
stocks. Secondly, penny stocks don't require large amounts of
7.
money to get into. You can make very worthwhile profits with just
a few thousand dollars. In fact, I started with just $2,000 and now
after years of trial and error I can easily make $2,000 per day if
the market provides opportunities! On the contrary, higher priced
stocks require much more money to make similar profits within
the same time-frame. The last benefit I want to mention is the
FREEDOM! Once you get a level where you're consistently
making strong profits, you can easily be done with all your
work/trading before noon. Most of the best traders I know trade
for less than 2 hours each morning, which is when most best
opportunities are presented, and make 6-7 figures per year!

Now that I have your attention with all this talk about profits... let
me teach you how YOU can make these kind of profits too :)
8.

Reminder:
This is free eBook and covers only the basics of investing in the
stock market. For full, in-depth information please check out my
day trading courses "Master the Market: Day Trading Penny
Stocks, Vol. 1" and "Master the Market: Day Trading Penny
Stocks, Vol. 2." Together they are 9+ hours of incredibly
valuable information. You don't need any prior market
knowledge before going through them and will finish ready to
trade and profit like a PRO!
COURSES (link)
 Brokers
9.

Different brokers have different benefits and having the right one
can greatly benefit your trading... and profits! In this section I'm
going to give brief reviews of some common brokers and explains
how each benefits slightly different trading styles.

Robinhood (link) - Sign up by clicking the link to the left and

you'll receive a free stock from Robinhood worth up to $500!
Robinhood has become widely known around the stock
community over the past few years because it's one of the few
brokers that allows you to trade without paying ANY commissions
and there's no minimum account balance! Typically with most
brokers, when you buy a stock you pay $5-10 (varies), which you
then have to pay again to sell the stock. Obviously this is a great
benefit to Robinhood since commissions can add up quickly.
However, you won't find many experienced traders using
Robinhood for a few reasons. First, Robinhood doesn't currently
allow short selling, which is a way of trading that you profit from a
stock going down.
Personally, short selling is a huge part of my success (I'll explain
my strategy later), but many traders don't short sell at all, which
makes Robinhood a great option to keep in mind. The other
disadvantage I should mention is their terrible charting software.
Analyzing charts/patterns is very important and impossible to
accurately do with Robinhood's software, so if you plan on
signing up For Robinhood I'd recommend also signing up for one
of the charting softwares that I'll be talking about in the "Charting
and Patterns" section. In conclusion, Robinhood is a great broker
to start with so you don't have to worry about making enough
money to cover commissions, but once you start to feel
more comfortable investing, it's best to move on to a more
advanced broker.
10.
Tradenet (link) - Save up to 30% by using this link!
I have personally been trading with Tradenet for well over a year
now and have had a very positive experience with them. They're
a little different than most brokers, but in a great way!

When you sign up for Tradenet you actually get funded by them
and get to trade their money. In exchange, they keep a small %
of your profits (15-30%) and you get to keep the other 70-85%.
There are several major benefits to this.
First, you don't have to worry about losses! You pay a small fee
to start but that's the only money you can lose. Secondly, having
the extra money they give you to trade with (they give between
$14,000 and $240,000 to their traders) can be a game-changer!
Third, there is NO PDT rule. You can day trade as much as
you'd like.
Last but not least, when you join you also receive access to
their trading education, mentorship and live trading room where
you can watch professional trader live every day.

For a bonus, because this is who I currently trade with: If you

sign up with my link above and email me a confirmation (email
is [email protected]) you'll also get FREE access to
both of my trading courses... that's an extra 9 hours of exclusive
training for free!
11.

TD Ameritrade - Email me at [email protected] and I

will send you a link where you can get up to $600 in free
commission!
TD Ameritrade is widely used by both beginners and
professional traders due to its extensive features and options
available for trading stocks, options, ETFs, forex, etc. Although
it's not completely commission-free, each trade costs only $6.95
and there are no other hidden fees (once again, you can get up
to $600 in free commission if you email me!).
TD Ameritrade also has one of the most popular trading
softwares called "ThinkorSwim." Thinkorswim is essentially
everything you'll need to trade in one program. It has high quialty
charting software with every imaginable chart indicator/study,
customizable price alerts, customizable scanners, and even chat
rooms. Not to mention that thinkorswim is also available as a
mobile app, which is far superior to most brokers' mobile apps in
my opinion.
Aside from their software, TD Ameritrade also has some of the
best market executions available. This basically means that
they're able to save you money by buying slightly lower and
selling slightly higher. In fact, they have a net improvement per
order of $2.17 per 100 shares. $2.17 might not sound like much
for 100 shares, but at 1,000 shares that equates to $21.70 of
savings and that will add up quickly when you're placing multiple
trades per day!
12.

Like I mentioned above, it's important to choose a broker that

is going to benefit you the most. The 3 I listed above I would
consider to be more "beginner-friendly," since the ones
reading this are likely new to the market. However, I
recommend experimenting with different brokers over the
course of your trading journey.
If you happen to already have a bit of background in the
market and/or have savings for more "exclusive" brokers with
higher account minimums, I'll list a few below... if you're
interested in them I recommend checking out their websites
and making sure you eligible to open account, since some of
them have account minimums of up to $50,000:

Interactive Brokers, SpeedTrader, Lightspeed Trading,

Centerpoint Securities, and Cobra Trading are a few of the
more popular "elite" brokers.

*I want to emphasize that it may not be a good idea to start

trading with one of these brokers even if you have enough
savings to fund an account because in the early stages you're
likely to learn some lessons (take some losses), which is why
it's best to start with a beginner-friendly broker with a small
amount of money at risk until you feel comfortable to size up.
13.

Charting and Patterns

Now I'm going to go through some technical analysis basics,
explain to you how you can do these as well, and show you
examples of some of the most common and useful chart patterns
that will help you predict where a stock is likely to move.

Support: Analyzing support levels is one of the most basic forms

of technical analysis and crucial to learn how to do. Support really
is just what it sounds like... it's a price level where the stock seems
to bounce back up as if it's being supported in that area. It's also
very easy to spot in most cases (see screenshot of a support level
on the following page). Support typically forms at a price where
there are many buyers, which can often be seen on level 2 with a
buy orders (bids) placed at that price.
There are a few reasons why support is so important to learn.
First, support areas are often great places to buy stock, because
they often bounce higher after hitting support. Also, they make for
low-risk trading also if you place a stop-loss order slightly below
the support. That brings me to the second reason... When there is
a clear level of support established, many traders will have stop-
loss orders set just below. For that reason, there is typically
increased selling when a stock breaks below its support level,
which means a stock breaking below support may make a great
opportunity to short-sell since it will likely move down lower. Notice
the significant price drop in the screenshot below after support was
broken, which is why cutting losses quickly if you bought above
support is so important. Lastly, notice how the support line (blue) is
the exact level where the price tops out at on the right... this is
because past support often becomes resistance and vice versa.
14.
Support

Resistance

Resistance: Resistance levels are also very easily spotted and

can be thought of as the exact opposite of support. Resistance is
a price level where the stock is unable to break above. This
occurs when there are a large amount of sellers at a certain
price, and just like buyers at support can often be seen on level
2, sellers at resistance can often be seen. When a stock is
running into a resistance level and unable to break above, it's
usually a signal to sell your shares (or at least some) or open a
short position.
With that being said, if the stock is able to break above
resistance and you are in a short position (anticipating the stock
to move back down), it's best to cut losses and cover because a
stock breaking over resistance shows the stock has strength. In
the screenshot above, the “breakout” level shows a stock with a
big gap up after breaking above resistance. It's important to note
that support and resistance levels aren't always perfectly
horizontal lines like in the above example, oftentimes they are
slanted. In that case it's best time draw trend lines on your chart
so you can see exact levels of support/resistance without having
to estimate. This can be done by going to your charting software
of choice, clicking “draw” followed by “line” and connecting key
levels (slanted support/resistance is often referred to as “neckline
support” and “neckline resistance”).
15.
Head and Shoulders: Often abbreviated as “H&S.” This chart
pattern looks just the way you'd expect it also. If you look at a
person standing straight in front of you, you'll see their 2
shoulders with their head sticking up higher in the middle. Look
at the screenshot example below on the left and notice the
similarities.

Head and shoulder patterns usually form when a stock is trending

up and can indicate a reversal to the downside when the pattern
follows through. For that reason if you see it forming, it may be
best to sell some if not all shares and possibly open a short
position. The first thing you will notice when this pattern is forming
is that the lows between the two shoulders form a level of support
(shown with the horizontal line. Like any other level of support,
once that support breaks the stock typically continues to move
down.

Inverse Head and Shoulders: You guessed it! This pattern is the
exact opposite of the head and shoulders pattern and is shown by
the picture above on the right. Contrary to H&S forming at the top
of an uptrend, the inverse head and shoulders pattern typically
forms at the bottom of a downtrend and can indicate a reversal to
the upside.
When you see this pattern forming you should notice a resistance
level formed between the two inverse shoulders (shown by the
horizontal line in the example above.)
16.
Like any other resistance level, when the stock is able to break
above, this is a strong indication that the price is likely to continue
to rise. For the reason, The inverse head and shoulders pattern
can be a great one to look for a buying opportunity. Ideally, you'd
want to anticipate where the right shoulder will form based on
where the left shoulder bounced, or you can wait to buy the
breakout over resistance.

Cup and Handle: As you may be starting to realize... stock chart

patterns are pretty descriptive and actually look just like you'd
imagine. The cup and handle pattern is no exception. It actually
looks like a cup with a handle (see example below). This pattern
most frequently occurs at the bottom of a downtrend, just like the
inverse head and shoulders, and can indicate a reversal to the
upside may be coming.

This pattern can sometimes be tricky to spot until it's already at

its breakout level. However, if you're able to spot a cup and
handle forming in the early stages there are two key areas I'd
recommend looking to buy. First, on the right side of the cup
once it's starting to curl upward. If you buy toward the left side or
even the middle of the cup, you're taking on a larger risk since
the stock hasn't proved to reverse back up yet. The second buy
level would be the breakout level (at the arrow in the example
above). The reason this is a good area to buy is simple. Think
back to the section about resistance... I mentioned that stocks
breaking above resistance often continue upward.
17.
Well, that also applies within this pattern. As you can see, when
the cup has finished forming and the handle is being formed, a
level of resistance will form at the top of the handle. A break over
this resistance, shows the stock has strength and has a good
chance of climbing its way up. It's important to note that
sometimes a pattern may be nearly formed and the stock will
start to trade unpredictable. These patterns are only accurate
when the pattern follows through , meaning once the stock
breaks above its "breakout level" or resistance.

Pennant/Bull Flag: This pattern is often referred to as either of

these names and is actually one of the most frequent patterns for
day traders. You will start to notice this pattern daily when a stock
is running or in a strong uptrend. This is known as a continuation
pattern, which means that if you see it form while the stock is
moving up the price is likely to continue up if it follows through
with the pattern. Of course, the opposite is true if the pattern
forms while the stock is dropping or in a strong downtrend.

If you look at the example above... this pattern forms when a

level of support and resistance are starting to wedge together,
getting more and more narrow. Eventually the stock will have to
breakout above resistance or breakdown below support once the
pattern gets too narrow. A breakout above resistance is an
indication the price is likely to continue to rise, while a breakdown
below support is an indication that the price is likely to move
lower.
 18.
Also, it's important to recognize where the wedge comes to a point.
Imagine a line extending out from that point. Depending on
whether the stock broke upwards or downwards, that imaginary
line often can turn into a key level of support or resistance in the
future.

ABCD Pattern: The ABCD pattern is a great "dip buy" pattern,

meaning it gives us an opportunity to buy a stock when it's "taking
a break" while running! This pattern is frequently used by day
traders and a great way to get a low-risk entry in a stock. Let me
explain... Check out the example below. A: This is the stock initially
peaks, forms a resistance level and starts to pullback. B: This is
where the stock's pullback comes to an end and support is formed.
You never want to buy a stock that is pulling back before B. C: this
is where you'll get the best entry in cases. Ideally, C should bottom
out slightly higher than B did, forming a "higher low." When buying
at C you get a low risk entry point if you place a stop-loss order
below the support that was just formed at B. Lastly, we have the
breakout above resistance at D. If you were unsure about buying
at C, a breakout above the resistance at D may be your last
chance to buy before the stock continues to move back up.
19.
Now, lets talk about the individual candles that make up each chart
and each chart pattern!

Green Candle: When the candle is green it simply means that the
candle closed higher than it opened. Keep in mind that candles
represent various lengths of time. On a 1 minute chart each candle
shows the price action for 1 minute, on the daily chart each candle
represents an entire day. However, the time frame doesn’t
differentiate the information that each candle shows us. The “real
body” (which you can see in the link above) shows us at what price
the candle opened and at what price it closed. On a green candle,
the bottom of the real body is where the candle opened and the
top is where it closed. The lower shadow of the candle shows how
low the price went while that candle was open, while the upper
shadow shows us how high the price went.

Red Candle: A red candle, just like a green one, shows us where
the candle opened, closed, and how high and low the price went
while the candle was open. The only difference is the candle
closed at a lower price than it opened. In this case, the top of the
real body shows us the price that the candle opened at and the
bottom shows the price it closed at.
-When looking at a candle, a long upper shadow means the buyers
were in control during that time frame, and a long lower shadow
means the sellers were in control.
20.
Doji: Doji form when the real body of a candle is very thin
because the candle opens and closes at nearly the same price.
When you spot a doji on a chart it can often give you insight into
where the stock is most likely to move. The tight price action
between buyers and sellers shows there is a bit of a standoff
occurring. This means that likely either the buyers or sellers will
soon gain control and a turning point is coming soon. A long red
candle followed by a doji indicates the selling pressure is nearing
an end and the price may be about to turn and head up. A long
green candle followed by a doji indicates that buying pressure is
slowing and the price may be about to head downward.

Dragonfly Doji: The dragonfly doji forms when the high and the
close of the candle are equal. This shows the sellers were in
control for a majority of the candle but the buyers took control and
drove the price up toward the end. This is often a sign of a
reversal after a long red candle or if the price is at or near
support.

Gravestone Doji: Forms when the low and the close of a candle
are equal, which shows the buyers were in control for a majority
of the time that the candle was open buy sellers drove the price
down toward the end. This is a bearish sign and often shows us
the the price will continue lower when we see this after a long
green candle or at/near resistance.
21.

As you can see, charting and analyzing is a crucial part of finding

success in the market. Unfortunately, some brokers don't have
very high-quality charting (especially within their web-based
software and mobile applications). For that reason, I highly
recommend checking out TradingView (link).
TradingView has some of the best charting software available
(screenshot of a TradingView chart below). Click on the link
above to try it out for free! You'll notice that the price on the
charts is delayed by 15 minutes unless you subscribe as a paid
member.
A subscription with TradingView includes ad-free realtime charts
(not delayed) with the ability to add any imaginable indicator, a
strategy tester, screener, customizable alerts, notes on your
charts, and you can easily share your charts/ideas onto social
media with the click of a button.
22.

Managing Risk
When it comes to day trading, there is nothing more important
than properly managing risk. Without doing so, you can easily
wipe out days, weeks, even months of progress in a single trade!
Of course, we all want to avoid that from happening... and lucky
us, there are ways that we can.

Position Size - Position size is simply the dollar amount that your
position is worth. Many times you will hear people say that your
positions should be no more than 10% your entire account size,
but this isn't realistic for most new traders since everyone
typically starts with a small account. So, I like to base my position
size off of my max loss instead.
Before getting into a trade you should create a trade plan
consisting of your potential reward (profit) and your risk (loss).
You can use the chart's support and resistance levels to get a
good estimate of where you'll likely lock in profits if the trade
works in your favor, and where you'll cut losses if the trade moves
against you.
To determine you position size, divide your max loss by whatever
the difference between your entry and risk level is. For example, if
your max loss is $300, you bought the stock at $1.90, and your
risk level (stop loss) is $1.75... your position size should be no
more than 2,000 shares because $300 / $0.15 = 2,000. By having
the proper position size, you don't have to worry about taking
substantial losses on a trade, as long as you cut your losses at
your pre-determined risk level.
23.
A very important aspect of a trade plan is to avoid taking any
trades that aren't worth the risk. I always recommend to avoid
entering a trade that doesn't have a potential reward of at least 2x
the amount that you'd be risking by entering it. This is something I
teach in great detail in my courses, but I'll share the basics here.
Again, your risk and reward can be found by analyzing the chart.
We know that many times resistance levels hold and the price of
the stock often drops after failing to break above. So, it's always a
good idea to lock in some, if not all, profits slightly below a key
resistance level. For example, if you’re buying a stock at $2.00
that has some major resistance at $2.30, you should expect to
lock in some profits in the $2.20-$2.30 area.
On the other side of the spectrum, we know that a stock breaking
below its support often continues to go lower, until new support is
formed. This is why it's a good idea to cut losses quickly when a
stock breaks below support and is why support can be used to
find your risk level before buying a stock. For example, If the
stock mentioned above that was bought at $2.00 has some major
intraday support at $1.90, you can use that support level to base
your risk off of by simply cutting losses (or using an automatic
stop-loss to do it for you) if it breaks below.

Again, your reward should always be at least 2x your risk... if it's

not, the trade is not worth taking. As long as you stick to your
trade plans, you can still be a profitable trader with only 50%
accuracy if your rewards (profits) are at least 2x your risks
(losses).
 Strategies
24.

Sympathy Plays: Sympathy plays are a common type setup

that we see when trading penny stocks. A sympathy play is
created by a stock that is in the process of making a massive
run. The running stock will cause other similar stocks to run as
a sympathy run, just because it's similar to the main (running)
stock. Typically, the sympathy plays will be within the same
sector as the main runner. However, sometimes we'll stocks
run in sympathy of another stock running just because they're
similarly priced and have a similar float size.
So how can you tell if a stock is a sympathy play or has an
actual catalyst for running such as an earnings report, trial
results, award, etc? First, check the stock's news! If you you
don't see any news that would cause the stock to move, then
look at the “Top % Gainers” for the day. The Top & Gainers is a
list of stocks that have increased the largest % for the day. If
you see a stock on that list that is similar to the one you're
analyzing, it may be a sympathy play.
The reason it's important to check the Top % Gainers list is
because typically sympathy plays occur from massive runs
(which is why the stock would be on the Top % Gainers list) of
at least a 100% gain. The example below is a very well known
set of sympathy plays, labeled as “the shippers” that took place
in 2016. The main runner was the stock with the symbol DRYS
in the shipping sector. DRYS went from around $5.00 to over
$100.00 in less than a week. This massive run created a
handful of sympathy plays that also ended up having huge
runs. SINO, GLBS, and DCIX are a few of them and can be
seen below. Notice the similarities in the charts.
25.

The reason I included this type of play under “Strategies” is

because of the great opportunities that come from sympathy
plays. There are two main reason to trade sympathy plays.
First, if you're able to find sympathy plays early while the main
stock is still strong and running, you'll be in a great position to
buy and take advantage of the upside move. However, many
times it's difficult to find sympathy plays until it's too late. So,
the other way to trade sympathy plays is to wait for the
main/leading stock to reverse to the downside and then short-
sell one of the sympathy plays. The reason is simple, Once the
hype and momentum has died in the lead stock, it will start to
crash and the sympathies will follow! Don't believe me? Check
the screenshots below showing 3 stocks with almost identical
charts starting to crash after the momentum of their lead stock
slowed down. Once again, notice how similar the charts of
sympathy plays will look.
26.

Dip Buying: While sympathy plays can be either bullish of

bearish, meaning they can be either a long position or short
position, dip buying is only done when you are bullish on a stock
and anticipating a rise in the price. Typically a dip buy will occur
after a strong move up in a stock. Of course, stocks can't go
straight up forever, so when it starts to pullback down, or “dip,”
this is when you'll want to look for a dip buy opportunity. One
thing I was to point out is that stock isn't always going to be a
good dip buy just because it recently spiked up and is starting to
pullback. Sometimes we see stocks spike up quickly and
immediately come all the way back down, which of course would
NOT be a good dip buy since we want to buy stocks that are still
strong and will likely go higher.
27.
So what makes a good dip buy? Well, there are a few different
chart patterns that you will see frequently and that often lead to
great dip buying and profits! The first one was already
explained in the section “Charting and Patterns” above and is
known as the “ABCD” pattern. If you missed that section, you'll
want to make sure to go through it. However, one that we didn't
talk about is the double bottom pattern. This can also be a
triple bottom, quadruple bottom, etc... but they all create the
same setup ultimately. Double bottoms occur after a stock pulls
back down, forms a level of support, bounces slightly, then
comes back down and re-tests that supports, once again holds,
and finally rebounds and starts moving back up. As you can
see from the example below, this pattern looks like the letter
“W.”
There are two ways I recommend traded a double bottom
pattern. First, by buying when the stock is at its “second
bottom.” This is after the stock has already formed a support
level and you're able to manage risk by setting a stop loss
below that support. Secondly, you can buy the breakout once
the stock has broken above the high that formed between the
two bottoms. This level often becomes key resistance and like
any other resistance, a break above it will often bring in other
buyers and push the price up further.
28.
Shorting a Breakdown: Now since we've talked about dip
buying as a long position strategy, let's talk about how you can
short a breakdown, which of course is a short strategy (meaning
we profit from the price going lower). Many people avoid short
selling because they thing it's too complicated and too risky.
While there are risks involved that buying a long position don't
have, short selling can actually be a very profitable type of
trading. Before getting too into this strategy itself, I do want to
mention the potential risks when shorting. As you know, when
you short a stock you profit from it moving down and lose money
from it moving up. For that reason, there is technically an
unlimited amount of risk when shorting, because there is no limit
to how high a stock can go. On the contrary, if you buy a stock
you're only risking 100% of how much you invested because the
worst that can happen would be the stock price going to $0.00.
This is why cutting losses quickly is so important in the market,
especially if you're in a short position!
Now that you understand the possible risks, lets talk about the
strategy of shorting a breakdown, which is fairly low-risk as far
as short selling goes. Shorting a breakdown is actually pretty
simple... here's how it works: A stock will form support and likely
trade above or at that support level for a while, eventually if
there's not enough buying pressure to push the price higher that
support will break, this is where we would enter a short position
to short the breakdown. The reason this is such a great strategy
is because in the period of time that the stock is holding above
its support, many people will start to buy the stock in hopes of
support holding and the price rising again. So, once the support
breaks, all those buyers + anyone looking to short the
breakdown all start to sell at the same time and the price
typically drops quickly, making a great short position.
29.
One thing I want to point out is the importance to wait for the
breakdown, not anticipate it. If you anticipate the breakdown and
short above support, that support may end up holding and then
you'll be in trouble. Also, you should know that support isn't
always just formed from a double bottom, triple bottom, or any
other chart pattern actually, it can also be a chart indicator. For
example the “VWAP” indicator is a very common intraday support
level and great for shorting the breakdown when a stock breaks
below it.
Check out the example below, MDGS. I drew the support level for
this stock on the chart as the white slanted line that goes all the
way across the chart. Notice the difference in the price action
from when the stock is holding above that support and when it
finally breaks below. Once that support breaks there were plenty
of sellers pushing the price down and it dropped about $0.70 in a
little over an hour! That means that if you would've shorted just
$2,000 worth of shares on the breakdown you could have make a
$700 profit in about an hour!
 Scanners
30.

Scanners are an essential tool for anyone serious about

trading. In most cases, the stocks that I trade on a daily basis
are found from a scanner. Below I'm going to link and give brief
reviews of some of the most popular scanning softwares. I
highly recommend signing up for one if the broker you use
doesn't come with high-quality, built-in scanning software.

Finviz (link) - Easily the most recognized name in the trading

community when it comes to scanners. This company has been
around for over a decade and has very useful
scanning/screening software. They offer completely free
screening for stocks on their website (delayed 3-5 minutes
unless you're a paid subscriber), but with a subscription you're
also able to scan in realtime for stocks meeting any criteria you
choose and set alerts for scanner to make sure you don't miss
any opportunities.You can even export your scanning results
into Microsoft Excel, which is great for finding which scanning
criteria is working the best for you. Also, at $24.96, Finviz Elite
is the cheapest scanner of its kind.
Lastly, With Finviz Elite you have access to their advanced
charting software. Since some brokers' charting isn't the best, it
can come in handy to have a backup software for analyzing
charts (see Charting and Patterns for other charting software
recommendations).

Investfly (link) - Click the link to the left to get a free 30-day
trial! Investfly is a very cool, unique program with a variety of
features that will give you an edge over the competition. Of
course with a subscription you'll have access to their
screening/scanning software, which enables you to set
31.
customizable alerts when a stock meet your criteria. Secondly,
they offer a variety of virtual trading platforms so you can
practice trading with fake "money" before diving into the market
and risking any of your own money. Their virtual trading allows
you to connect to a variety of brokers, which means while you're
perfecting your strategy you can also get used to your new
broker!
Lastly, let's talk about what is probably my favorite feature.
Investfly allows you to automate your trading. You can easily set
up your own trading algorithm to buy and sell any given stock for
you when it meets your criteria. Of course it may take some
testing to get a great/profitable strategy, but once you find one
you'll be able to make profits without doing any of the work
yourself! Below are screenshots of just a few of the unlimited
amount of automated trade criteria you can use with Investfly.
For more information or to try their free trial, visit the link above.
32.
Trade-Ideas (link) - Use the link to the left to sign up to their
FREE "Trade of the week" newsletter! If you sign up for one of
their paid services, use my discount code "TRAVIS15" (all caps)
for 15% off! Trade-Ideas is perhaps the most the most popular
day trading scanning software and for good reason. They offer
powerful, customizable scanners with realtime alerts, charting,
news, pre-market movers and a live trading room where you can
interact with and learn from various other traders... many of which
are professional/full-time.
Finding the right criteria to create successful scanners is crucial,
so if you sign up, please feel free to send me an email and I will
send you a document with some of the criteria/settings that I use
on a daily basis to find stocks to trade.
With all that being said, Trade-Ideas is definitely priced higher
than most of the other software mentioned, starting at $118 per
month or $1068 per year, but if you're serious about day trading
and what to create and test strategies, then it's well worth the
money in my opinion. You can try it out for FREE by using the link
above, clicking on "Pricing" and scrolling down to "Free Trade-
Ideas." However, please note that since it is the free version,
everything will be delayed 15-20 minutes, so it will not be reliable
to base any trades off of until you upgrade to a full, paid
subscriber.
 Day Trading
33.

Equipment (Office)
I decided to include some office supplies,trading equipment, and
other books that I recommend checking out along with the links
to them on Amazon!

BOOKS
Charting and Technical Analysis
https://amzn.to/2NIT3Br

How to Make Money in Stocks: A Winning System in Good

Times and Bad, Fourth Edition
https://amzn.to/2mdVa3T

High Probability Trading: Take the Steps to Become a

Successful Trader
https://amzn.to/2LdamZZ

Reminiscences of a Stock Operator

https://amzn.to/2Lcv7ou

OFFICE
HP 23.8-inch FHD IPS Monitor with Tilt/Height Adjustment and
Built-in Speakers (VH240a, Black)
https://amzn.to/2zuANZw

Acer R240HY bidx 23.8-Inch IPS HDMI DVI VGA (1920 x 1080)
Widescreen Monitor
https://amzn.to/2mqwaGE
34.

Apple 13" MacBook Pro, Retina Display, 2.3GHz Intel Core i5

Dual Core, 8GB RAM, 128GB SSD, Space Gray, MPXQ2LL/A
(Newest Version)
https://amzn.to/2JhOzOE

Apple 15" MacBook Pro, Retina, Touch Bar, 2.9GHz Intel Core
i7 Quad Core, 16GB RAM, 512GB SSD, Space Gray,
MPTT2LL/A (Newest Version)
https://amzn.to/2ug97ma

CORSAIR K55 RGB Gaming Keyboard - Quiet & Satisfying

LED Backlit Keys - Media Controls - Wrist Rest Included –
Onboard Macro Recording
https://amzn.to/2NnEPVT

NETGEAR R6700 Nighthawk AC1750 Dual Band Smart WiFi

Router, Gigabit Ethernet (R6700)
https://amzn.to/2NKDtW8

Mediabridge Ethernet Cable (25 Feet) - Supports Cat6/5e/5,

550MHz, 10Gbps - RJ45 Cord (Part# 31-399-25B)
https://amzn.to/2JhjR8H
 Other –
35.

Cryptocurrency and
More
I'm sure at some point you've heard about Bitcoin and other
cryptocurrencies, which is why I decided to include this small
section in the eBook. There's a lot of confusion about how or
where you trade cryptocurrencies because "normal" brokers,
such as the ones I reviewed earlier for trading stocks, do not
have access to trade cryptocurrency. That's where Binance
comes into play!
Binance (link) - Binnace is on track to become the largest
worldwide crypto exchange and highly recommended if you plan
on trading any cryptocurrcy because many other exchanges in
the crypto world are pretty sketchy and many are even scams...
so make sure to stick with Binance since it has a good
reputation! Also, signing up is very simple and only takes a few
minutes.
 36.

I should mention that, unfortunately, I don't have a ton of

experience in the bitcoin/cryptocurrency markets since I primarily
trade penny stocks. However, If you're looking for some
mentorship by a reputable Bitcoin Guru, I'll provide you with a link
below!

Bitcoin Crypto Mastermind (link) - Use this link to view free

crypto training! In this training you'll learn: how to start making
money from Bitcoin right now, proven Successful cryptocurrency
investment strategies, how to recognize cryptocurrency trends,
and get an exclusive look into Tai’s Bitcoin Crypto Mastermind.

In case you don't know about Tai Lopez, he is a mega-rich

investor, entrepreneur and mentor with a ton of valuable
information. If you're serious about getting into cryptocurrency,
then his program is the one to go with, in my opinion.
37.
PureVPN (link) - PureVPM is a VPN (Virtual Private Network)
for internet privacy and is highly recommend for anyone
investing online (especially with cryptocurrencies).
PureVPN is one of the most trusted and used VPN services
available with over 1 million satisfied customers and highly
affordable with prices starting at only a few dollars per month!

Reminder:
This is free eBook and covers only the basics of investing in
the stock market, for full, in-depth information please check
out our day trading courses "Master the Market: Day Trading
Penny Stocks, Vol. 1" and "Master the Market: Day Trading
Penny Stocks, Vol. 2." Together they are 9+ hours of
incredibly valuable information. You don't need any prior
market knowledge before going through them and will finish
ready to trade and profit like a PRO!
COURSES (link)