look there's nothing more frustrating than seeing a great trading opportunity wanting to get in but then missing it and watching it become a monster winner this video will give you the secret to avoiding this frustrating trading experience I'm Mike Bella Fury and we're one of the top proprietary trading firms located in New York City since 2005 and proud to develop numer seven and even eight figure Pere Traders watch take notes and learn from a professional Trader on our desk so you can grow your trading account all right so here's the story there was this huge
opportunity the trade with the most Edge for this op occurred right away near the open during the first 15 minutes I missed the trade and I was pissed I mean this wasn't just a stock that moved and I missed it this was my setup a trade that I will trade well consistently a trade that I should make my month on and help Propel me to the next level in my trading and I help lead a team that's focused on crushing Trend days and big breakout events like this now we were all able to get involved
in this opportunity and make money but we missed the initial entry which was the entry with the most Edge the entry that was the most crushable so missing that initial entry is unacceptable making money on a trade but underperforming on the trade is unacceptable especially when it is your bread and butter setup and like I said I was pissed so now when something like this happens I try to stay calm levelheaded trade the next opportunity with a clear mind which is what we did and then I get upset after the close and figure out ways
to never let this happen again so in this video I'm going to show you the setup and I'm going to outline the ways we have found to help make sure we are prepared the next time this happens catching this entry is all about preparation right because it happens fast so by the end of this video you'll have a clear understanding of what this play is and three ideas on how to create a process for preparing for a trade like this all right so first let's go over the trade this is a higher time frame breakout
trade and more specifically it's a relative strength sector play so here are the key variables for the trade all right so first we have the context right so we want a market theme or a sector Tailwind in this case it's the semiconductors we want a higher time frame relative strength or weakness right depending on the direction of the trade we want higher time frame compression on the daily chart a clear level we want a catalyst either technical or fundamental and then intraday we want the break to occur at the open on elevated volume we like
arval at least to be two on these preferably higher an intraday relative strength and weakness okay and the sector should confirm the move so here's our example this is arm on April 17th of this year here's the daily chart this is a huge higher time frame level at 120 and it broke in the morning after developing a quick opening range on increased arval all right so this is a breakdown trade so this is a short trade so let's go to the hourly chart shows 30 days of price action and on this hourly chart of the
last 30 days I want to point out some key factors that can help us prepare for this setup so first the stock keeps attempting to Rally off this 120 level and fails every time and these failures are getting lower and lower creating lower highs compressing against our breakdown level second the stock has actually been unable to truly hold below 124 which is the dotted line on the chart until the entire previous day something that can really help us set up the trade which is what we want to be doing because it happens fast off the
open so let's zoom into the two-day chart so we can see that okay so the previous day is highlighted in yellow and you can see it's holding cleanly below 124 and compressing the previous day low is the red dotted line so if we zoom into the intraday chart and check out how the prior day low aligns with the opening range that arm formed in the first 15 minutes of the breakdown day we can see what's happening here we can actually see this setup very clearly so let's go to a two-minute chart Inay we break the
opening range at 9:45 and this Cascades quickly into the big 120 level break and we see a huge increase of volume on this break the trade with the most Edge on this day is catching this opening range break hitting the stock on the opening range break and then adding on the 120 break especially because we see range expansion and volume expansion right so this is great for confirmation on a trade like this we cover some into momentum and hold the core for a swing so you can see how something like this is all about preparation
because it happens quickly near the open there was no big news directing our attention to this stock and the pre-market volume only comes in at the breakout so we have to be there we have to be watching the stock so how can we be ready for something like this are there tools we can use and add to our process that can help us prepare we want to track the marketting environment so that we know to look for breakdowns we want to scan for potential opportunities so that arm is on the watch list and we want
to alert ourselves to these opportunities when they trigger so here are three things we did to make sure we never miss a trade like this again so first let's talk about the context so how do we even know that we want to be looking for shorts and breakdowns in this market Market because these don't always work especially during a very strong Bull Run so we needed to emphasize and Implement tools that can help us with the overall Market context these are tools I've always found value in okay so the first one is the NASDAQ new
highs new lows so this grid shows us new highs and new lows on daily weekly monthly and yearly time frames so at the time of the the arm trade we'd been seeing an expansion of new lows on all time frames before the overall Market officially broke down all right second is the bread thrust okay so three days prior to this trade we had a negative breath thrust signal which means that Breath Right the advancers versus the decliners went from very positive to very negative in a short period of time time right this is the red
arrow on the chart this is a fairly rare signal maybe once a quarter and it's pretty reliable especially on the long side but this one we get on the short side which usually are shorter lived especially in a bull market of course there are other tools like these right it's always good to have some process that helps you track the overall Market environment these are just two examples of them so in addition to the market internals we had the overall Market breaking key support you can see this in the cu's and we also had the
entire semiconductor sector which arm is a part of breaking key support so we want to build into our process a way of looking at these contextual tools regularly because it's easy to forget so scheduling that time to look at these is is key right but this is not nearly enough we need ways to get more specific about the big opportunities that might be setting up and ways to find these Ops ahead of time so what did we do we developed alerts and we did this right after the arm trade that serve as Market scanning reports
before the market open and on the market close the squeeze report which is what we call it is an alert that we get every morning with a list of names that have been compressing on the daily chart and here is an example of our squeeze report here and then secondly the endof day report which is what we call it is an alert that we get at every market closed with a list of names that demonstrated top 20 of all the stocks in the market in a number of categories including strength weakness and volume there are
a number of ways to measure strength or weakness you can measure moves normalized by average true range you can use an RSI value which I've gone over in other videos before you can even find the sharp ratio of the closing prices of the stock and these are all the kinds of tools that we go over every Tuesday in the bionic Trader meetings all right so if any of these strong weak or high volume names have also been compressing on The Daily chart we get alerted to that as well in the report so how are we
measuring compression on the daily chart we use a Ballinger band squeeze indicator which is a fantastic tool for quantifying compression so when this Ballinger band on the chart here gets tight enough we know the stock has been compressing for a long enough time to build up enough energy to make a move and a few days later we had a few other key semis break key levels that were also in Ballinger band squeezes you can see this in smci you can see this in Nvidia right and these are all semis all in Ballinger band squeezes all
breaking down a Ballinger band squeeze is defined as when a two standard deviation Ballinger band gets inside the one and a half ATR Kelner channel right this is an indicator that is very common and be found on most platforms and I've gone over the math in Greater detail in other videos as well these premarket and endof day reports are essentially watch lless with specific criteria like volume strength Ballinger band squeezes right something you can do on any retail platform right you just input the indicator and sort by the indicator these reports help us scan the
market and find names that are setting up for big Breakout out Trend opportunities so we've added a way to find names that are setting up this is not enough we have to make sure that we're keeping track of these names and that we don't miss these names when they trigger how can we keep track of certain setups certain names that we like along with key levels that we want to be alerted about so what did we do we implemented A Team market filter so this Market filter allows us to input a stock that we're watching
like arm along with the key breakout or breakdown level that we're targeting and the entire row will light up when the stock trades within a certain ATR from the level or through the level and this allows us to curate a list of potential breakouts and breakdowns and be alerted when the stocks approach our level of Interest right and we get to see the rall of each name every day as well so we have a process for tracking the market environment we're using technology to scan for names that might be setting up and we're using technology
to curate a watch list that alerts us to when the trade might be close all so that we can be there at 9:45 watching the right name ready to pull the trigger when arm breaks 120 so I hope this helps there's plenty of ideas to get creative with in here I think it certainly helped me if you have any questions put them in the comments I'll do my best to get to them or you can message me on X Garrett drying so you're an active Trader not doing as well as you want not doing as
well as you deserve and you just can't figure out why you can't become profitable no matter how hard you try well let me show you why this is your competition the traders in this room this room right here is full of elite Traders some of whom are making seven and even eight figures a year in fact our top guys have made nearly 20 million each in net trading profits in a single year let's head to my office so I can share more so you're probably used to seeing videos of lavish Trader Lifestyles trading gurus trading
off of the laptop for an hour a day heck maybe even 15 minutes a day and then them relaxing on some secluded beach for the rest of the day well all I can tell you is that our Traders train like pro athletes they live and breathe the markets and are continually working on their trading skills because at our firm that's what we found it really takes to make it in this game I'm Mike Bella Fury co-founder and managing partner of S&B Capital One of the world's top proprietary trading firms located in Midtown Manhattan and we're
always looking for trading talent to hire and develop and not just to trade inhouse on our desk but also to trade from their own home entirely using our firm's capital and we have numer Traders doing just that allowing them to make upwards of seven figures trading the firm's Capital without risking their own money but to even get a shot at something like that you need to have the right training that's why we're doing a new free online presentation in which we share how you can get an interview with SMB to become an in-house a remote
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