Cycles And Strategic Trading for Big Gains

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Show Notes

Introduction

• Kicking off with updates on the real estate deal Antonio is currently working on.
• Antonio introduces real numbers for transparency.

Real Estate Deal Details

• Received numbers: $38,521.36 needed to close the deal.
• Breakdown: Includes loan, closing costs, fees, and interest.

Antonio’s Trading Strategy

• Motivation: Antonio's current goal is to make $38,521.36 today.
• Uses ChatGPT to assist with calculating the necessary stock trades.
• Prompt setup: Provided real estate details and asked for specific stock recommendations.

ChatGPT-Assisted Strategy

• Antonio shared the exact prompt used to calculate stock cycles.
• Key Details:
• Loan: $400,000, APR: 5.799%, VA Loan, 30 years.
• Total cash needed: $38,521.36.
• Asked ChatGPT to provide stocks under $100 and a plan for reaching his goal through multiple cycles.
• Goal: Achieve the total amount through repeated trading cycles on one stock.

Antonio’s Approach to Stock Cycles

• Antonio prefers to focus on a single stock to reach his financial goal.
• Requested ChatGPT to calculate how many cycles it would take to reach $38,521.36.
• ChatGPT's Response: 193 successful trading cycles at a 1:3 risk-to-reward ratio, starting with $100 per trade.

Strategy Explanation

• Antonio’s Method: Avoids multiple positions, focuses on one chart.
• Prefers simplicity and efficiency, minimizing analysis across multiple stocks.
• His reasoning: One stock allows him to study and exploit the same set of people’s behaviors.

Otis’ Input on Trading Strategy

• Otis highlights the importance of focusing on a small number of stocks, ideally 10.
• Each stock moves differently, even within the same industry.
• Learning the behavior of a small set of stocks allows for better predictions and trading decisions.

Advanced Trading Insights

• Antonio compares stocks to living entities with personalities and secrets.
• Importance of gaps in stock charts: Antonio stresses the importance of predicting when gaps will fill.
• Volume observation: Both Otis and Antonio emphasize tracking volume to understand market momentum.

Antonio’s Trading Philosophy

• Antonio acknowledges the strategy might seem brilliant, but attributes it to a form of "lazy intelligence."
• Prefers to focus on one chart rather than learning multiple sets of behaviors for different stocks.

Use of News in Trading

• Antonio clarifies that while he says he doesn’t care about news, he just doesn’t prioritize it the way others do.
• Deanna is instructed to hold off, as Antonio prepares to share key insights.

Antonio’s Final Demonstration

• Shares his screen to walk through his strategy in action, demonstrating the practical application of his method.

Introduction

• Antonio admits he lied about not caring about news.
• Clarifies he cares about news but approaches it differently.

Compulsive Nature

• When Antonio focuses on something, he learns everything about it.
• Example: Early investments in Sheba and Crow before they became popular.
• Not due to being smart, but because of thorough research.

Antonio’s Research Approach

• Uses Reddit as a primary tool for gathering information.
• Calls Reddit the "front page of the internet" for staying informed.
• Antonio explains how Reddit provides valuable insights and market sentiment.

Real-Time Example: Palantir Technologies

• Chooses a stock he knows nothing about (Palantir).
• Steps into a Reddit group dedicated to Palantir to gather insights.
• Observes people in the group discussing market news and behavior.

Market Sentiment & Insights from Reddit

• Antonio reads Reddit comments for insider-like knowledge.
• Tracks sentiment on discussions about Palantir and makes decisions based on that.
• Highlights how market discussions on Reddit influence stock prices.

Using ChatGPT for Stock Analysis

• Antonio inputs Reddit comments into ChatGPT to get sentiment analysis.
• Requests ChatGPT to provide facts and sentiment about the news.
• Asks ChatGPT to create scenarios for trading, based on both pump-and-dump or optimistic strategies.

Trading Strategy with Scenarios

• Two scenarios:

1. Pump-and-dump: Enter and exit quickly to capture profit before a drop.
2. Optimistic: Plan for a longer position based on positive sentiment.

• Sets risk parameters: tight stop loss, exit after 3% gain.

Antonio’s Approach to Efficiency

• Describes himself as “lazy,” focusing only on one chart and exploiting it thoroughly.
• Wants to minimize effort while maximizing results.
• Strategy: Repeat the same cycle multiple times to achieve the desired financial outcome.

Otis’ Input on Trading Strategy

• Otis emphasizes not trading everything—focus on a select few stocks.
• Learn how 10 stocks move instead of spreading attention across many.
• Supports Antonio’s single-chart focus.

Advantages of Combining News and Charts

• Antonio admits he does care about news but prioritizes stock-specific news over general market news.
• Uses Reddit and ChatGPT to gather both qualitative and quantitative data.
• Plans scenarios and executes trades based on pre-market and market opening conditions.

Strategy to Reach Financial Goals

• Antonio uses this approach to reach specific financial targets, like earning $38,000 for a real estate deal.
• Plans to cycle one stock repeatedly to reach that goal.
• Aims to perform 193 trading cycles based on risk-reward strategy to achieve financial objectives.

Maximizing Results in Minimal Time

• Antonio highlights that his entire strategy is designed to achieve goals with minimal time investment.
• 10 minutes of daily trading based on pre-analysis, with the bulk of the time spent preparing.
• Leveraging AI, Reddit, and trading view setups to make quick, informed decisions.

Antonio’s Long-Term Trading Philosophy

• Uses short-term trading to fund long-term investments in real estate.
• Refers to this as his "casino effect," where he takes profits from short-term trades and invests in income-producing assets.
• His strategy revolves around minimizing risk and maximizing returns.

Customizing TradingView for Efficiency

• Antonio plans to customize his TradingView settings for efficiency.
• Will configure it to support his strategy with predefined stop-loss settings, alerts, and indicators.
• Antonio shares that he will set up TradingView to automatically align with his trading rules.

Final Thoughts

• Antonio and Otis both emphasize using AI and automation to streamline trading.
• Antonio reiterates that his approach is about achieving maximum results with minimal effort by focusing on a single stock and repetitive cycles.
• Ends with reflections on how this strategy can be applied to meet both small and large financial goals.

Result of the Prompt

To reach your goal of $38,521.36 using a 1:3 risk/reward ratio, starting with an assumed risk of $100 per trade, you would need approximately 193 successful trading cycles.

Each cycle involves reinvesting the original risk amount ($100) and the profit earned (3x the risk). This calculation assumes consistent success without any losses.

Now, let me suggest a few stocks under $100 that align with your trading strategy:

Recommended Stocks (Under $100)

1. SoFi Technologies (SOFI): Strong institutional backing with liquidity opportunities.
2. Palantir Technologies (PLTR): Known for frequent institutional involvement and SMT strategies.
3. Ford Motor Co. (F): Ideal for liquidity targeting with high institutional order flows.
4. Ally Financial (ALLY): Financial stock with defined liquidity zones and retracement potential.

These stocks align with your Smart Money Techniques (SMT) and multi-timeframe analysis, offering great opportunities for liquidity targeting and retracement setups.

The total closing costs for the real estate deal are $21,968.68, and the total amount you need, including the cash required from the borrower, is $38,521.36.

Now, let's move on to calculating how to reach the $17,000+ target through trading. First, I'll select a stock under $100 based on your strategy, then calculate the number of trading cycles you would need based on realistic risk/reward ratios. I'll also review the TradingView paper trading steps to ensure you can effectively practice the trades.

Let me first pick a few stocks under $100 that fit within your institutional precision trading criteria.

To approach your goal of covering the $16,552.68 cash requirement for your real estate deal, I’ll guide you through a strategic trading approach using the TradingView platform and select stocks under $100 that align with your institutional precision trading strategy.

1. Paper Trading Steps on TradingView

Paper trading is an essential step before using real capital. Here's a brief outline on how to use it for your trades on TradingView :

• Open a Chart: Load your desired stock.
• Access the Trading Panel: At the bottom, find the "Trading Panel," then select the paper trading simulator.
• Create Orders: Right-click on the chart to create a new order. You can place market or limit orders, stops, and modify them as needed.
• Track Your Positions: View your open positions, stop loss (SL), and take profit (TP) points directly on the chart.
• Modify Positions: Drag SL or TP on the chart to adjust dynamically based on real-time price movements.

This will help you familiarize yourself with the platform while applying the Smart Money Techniques (SMT) from your strategy.

2. Stock Picks for Your Trading Strategy

Based on your Institutional Precision Intraday Trading Strategy, I recommend starting with these stocks under $100, which have strong institutional activity, liquidity targeting, and retracement opportunities :

1. SoFi Technologies (SOFI): A fintech stock with strong institutional backing and well-defined liquidity zones.
2. Palantir Technologies (PLTR): Known for institutional involvement, liquidity flows, and retracement setups.
3. Upstart Holdings (UPST): A fintech stock exhibiting frequent institutional trading and liquidity-driven price movements.
4. Ally Financial (ALLY): A financial services stock with institutional participation and liquidity zones.
5. Ford Motor Co. (F): A highly liquid stock ideal for SMT and liquidity targeting with strong institutional flows.

3. Calculating the Number of Cycles to Reach $17,000

Let’s assume a 1:3 risk/reward ratio and a 70% win rate for your trades. Here’s a quick breakdown:

• Risk per Trade: $100 (assuming you risk $100 per trade)
• Profit per Winning Trade: $300 (based on a 1:3 risk/reward ratio)
• Loss per Losing Trade: $100
• Expected Net Gain per Trade:
• 70% win rate = 0.7 * $300 = $210
• 30% lose rate = 0.3 * $100 = $30
• Net Gain per Trade = $210 - $30 = $180

If you execute around 5 trades per day:

• Daily Net Gain: 5 trades * $180 = $900/day

To achieve your goal of $17,000+:

• 17,000 ÷ 900 = ~19 trading days of consistent performance .

This assumes consistent execution of your strategy and favorable market conditions.

4. Conclusion

• Total Closing Costs: $21,968.68
• Cash Needed for Closing: $16,552.68
• Stocks to Trade: SoFi, Palantir, Upstart, Ally Financial, and Ford.
• Cycles to Reach Goal: ~19 days of trading with a 1:3 risk/reward and a 70% win rate.

This plan should give you a clear path toward reaching your real estate funding goal through disciplined trading.

To reach the total amount of $38,521.36 through trading, you would need approximately 43 trading days, assuming you maintain a 1:3 risk/reward ratio and a 70% win rate with 5 trades per day.

This calculation is based on consistently earning a net gain of $900/day from trading, as outlined in the previous plan.