Conditional Orders | Trading a Smaller Account

all right good morning everyone welcome to trading a smaller account today we are on tour we are uh broadcasting from uh north bay ontario which is about 250 miles north of toronto in the wonderful country of canada so um i'm delighted to be joining you this morning i have to confess i didn't look at the markets at all on tuesday or wednesday but i got online looked at our account yesterday we've got a jam-packed class for you today i was actually gonna broadcast it from my brother's deck but i thought the lapping of the water and the sound of the birds and the breeze and everything would be a little distracting so you've got my mother's um living room in the background i hope you like the new set um but yeah i'm enjoying this opportunity to be here with you so without further ado we have 45 minutes together this is always a jam-packed class so i want to thank all of you for continuing to show up every friday hello to radio wayne who was our official ambassador the first one into the chat this morning and started out by greeting everyone and michael and doug and deborah and vijay and peter and peter and the rest of the gang and i love that you guys all get in here early um and and start chatting with one another and and sharing our lives with each other can't wait until the time we can all get to meet live again which you know don't say don't tell anyone i told you but you know could be coming up soon opportunities for us to meet live which would be really wonderful okay so this is trading a smaller account it's an intermediate level class we have cameron may here with us in the chat he brings a wealth of experience with him in um in in charting he teaches getting started with technical analysis on mondays which is probably the class i recommend more than anyone else if you're new to looking at the charts if you're already approaching ninja status you'll want to join pat malali at two o'clock eastern today um for advanced charting but if you've got questions please type them into the chat in between cameron and i will do our best to answer if you are one of the thousands who catch this in the archives you too can ask questions just type them into the comment section i do look at those at the beginning of every trading day when i am not on because um and so i will look at those questions um on monday and i'll get back to you promptly um the last way for me to be able to communicate with you and you with me is via twitter right up here at the armstrong underscore tda cameron's handle at see may underscore tda if you aren't following us on twitter you are missing out my friends and i will say no more but um it is free so um i would take advantage of that if i could okay so know that everything we do in this class is for education informational purposes only none of it is to be construed as advice to trade any particular security or strategy uh in any particular way know that options aren't suitable for all investors there are special risks inherent to options trading that may expose investors to potentially rapid and substantial losses and we need to be aware of that we discuss our risk in every trade that we take also in order to demonstrate the functionality of the platform and to become more familiar with not only the thinkorswim platform but um how to trade particular strategies we use the thinkorswim paper money platform looks like smells like feels like real money um but it's not and there are some subtle differences between the platforms um one is that a short option will never be assigned early in paper money can that happen in your live account yes have i seen it happen yes did it freak me out the first time it happened to me in my live account you bet your sweet bibia did um but you know knowledge is power so once we're aware of things then you know we can figure this stuff out right okay so know that all investing involves risk including the potential risk of loss all right so on to our menu for today so and this looks remarkably similar every week doesn't it we're going to have a quick look at the markets i know that many of you attend multiple classes throughout the week and sometimes in a given day i'm not going to spend a long time on that um and then we're going to um you know play some new example trades and think or swim and we're also going to do a little bit of trade management as you know we are now doing some trade management mini sessions and i've got the next one lined up i will record it on monday when i'm back on salt lake city until you'll see it you'll see that one next week but there's a couple of things i want to talk about today because they're going to influence how we're going to place the trades that we do place today okay so that's what's on the menu um oh we've got somebody else who's from toronto also or you know the toronto area i actually lived i'm in toronto for about a decade i'm from you know a city 250 miles um north of toronto and um yeah it was a great place to grow up still a great place to live okay so let me just fix my screen here okay yeah cameron so cameron said the live events are back and there will be one in dallas on august 12th and 13th and these are free to attend how cool is that um you know what when i yeah as you guys all know i'm a product of this education um you know i signed up about 10 years ago actually my uh i signed up in uh july the long weekend in july of 2011. so this will be my 11th anniversary of being involved in the world of trading coming up and when i started i won't say that i didn't know a stock from iraq but i'd never you know placed a trade on my own i'd certainly never traded options i technically knew what an option was um but yeah i it was pretty sketchy my my knowledge on the market so it's amazing how much you can learn if you keep coming back and and i wouldn't hesitate i was living in michigan to get in my car drive to chicago get on a plane you know fly to dc um fly to salt lake city to learn more i considered it an investment in my education and it was okay so that's that okay so let's come and have a quick look at what's happening in the markets so here is our s p 500 um and you know when we look at this here's a year-to-date number so we can see that it looks like uh the markets appreciate my going out of town because you know since last friday when the markets were down we've seen you know a kind of a steady walk up the hill so if i take my drawing tool and we come down here you know it you know we've picked up about six percent um since the low on monday you know six percent since the low on monday although if we come and we look at sorry and today you know we're gapping to the upside you know it opened up up 1.15 show price is a percentage but you know still even with that you know increase you know five or six percent increase this week we're still in bearish territory we're still down 20 on the year you know which is not great now what is the challenge you know like if i come in and look at a three-month chart is that it's kind of moving to the upside in this class this year we've done a lot of very short-term trades much shorter term than we've done in this class over the last two years so why have we chosen to do that because there's been a lot of volatility in the market um and we weren't certain of what direction things were going to go even maybe over a three week to a month long time period we'd say hey it looks like for the next you know couple of days this stock may be moving to the upside so we'll get in and take you know do a very short term trade and when it moves up we'll get out or when it moves down we'll get out so we've done more bullish trades in the energy sector a lot of bearish trades everywhere else and that's worked out rather beautifully like if we look at our account um and and is there anyone that's brand new here today here for the very first time because we started with this account in january and uh i don't know why this insists on popping up you know just to make sure that i don't totally feel like the systems are working in my favor but we started the year at twenty thousand we're basically at thirty thousand so we're up fifty percent year to date which given that the s p is down 20 and the nasdaq is probably down closer to 30 we're certainly outperforming the market so the the account is is doing um actually pretty fantastic and is that a guarantee that it's going to continue to do fantastic through the rest of the year actually it's down from where we were last week but i mean year to date it's still up here is the deal so in this class we do not risk um we do not risk more than uh four to five hundred dollars on any one trade and our position size is never more than five thousand and you may say like back the truck up like five thousand that was 25 of the original account size but that allowed us to own 100 shares of something be able to sell a covered call against it do a buy right um use protective puts that kind of thing and so that's why we made it that way if you had a million dollar account you would not you know likely choose to have a position that was a quarter of a million you'd say that's that's way too many of my eggs in one basket but when you have a smaller account sometimes your rules are going to be a little different out of necessity um and and also if you had a million dollar account you might not be willing to risk two percent on any one trade you might say like i'm not willing to risk more than half of one percent or a third of one percent and that would be a totally legitimate guideline but those are the guidelines we set up in this class so that it gave us the opportunity to place trades that we might not have been able to place otherwise okay so that's kind of the the setup for this for this class so you know we're kind of in this in between land like the overall trend is down um but the last few days things have been moving up so you know which way do we want to go and sometimes it's hard to know which way to go and it's okay to say you know what i don't really know which way to go and so some days the best trade to place is is no trade at all and it's not that you're a failure as a trader or you don't know what you're doing maybe it's because you are a savvy trader and you absolutely know what you're doing that you choose not to place a trade you know so it's all in how we frame it right so okay so we're going to look at the nasdaq so again nasdaq like the s p has been rallying this week up eight percent you know which is is a nice bump but you know if we look at it's still down 20 in the last three months and you know year to date still down 28 that is not an uptrend that is not a an uptrend no we're you know somebody said we are in a down trending channel and so if we got rid of all of these lines and i'm just going to clear the drawing set and you know if we said okay i'm going to draw my line from here i like this this is a comment in the chat and i'm just going to duplicate this drawing and bring it over here so yes absolutely we're in a downtrending channel and where are we getting close to the top of that channel which also happens to be kind of where this 30-day moving average is and so you know the next challenge if we were looking at is this downtrend complete and might we be ready to break out of that would be to see it break above this channel and up through the 30-day moving average which it has not spent much time above year-to-date but you know it is still it is up trending right now within a downtrending channel okay so that's the skinny on that one the russell and and you know we could say well you know it was trading in a sideways range most of next year and then it was like chunked down to the next level chunk down to the next level it's within this sideways range you could also draw you know a sideways range on this one also you know but the net of it is year to date down 24 rallied over the last several days the dow so when we look at the doubt you know i had this downward trending channel and then it broke below it it's now come up to you know what was the floor right so we'd say okay this was the floor and it hit this floor once twice three times four times five times broke below it it's now back up so will this old support old floor become a new ceiling old support become new resistance we don't know yet but that's something that a technician would be watching for is it going to break back into this channel and if it does might it come back all the way up here and could we do a trade to benefit from that we absolutely could if it rolls over could we do a trade to benefit from that we absolutely could do we know today which way it's going we absolutely don't so would we place a trade on this index um the answer is yeah not today and that's okay okay how about our friend the vix you know our fear index or volatility index well not surprising it's been coming down it's kind of in this big kind of pennant or wedge pattern and this isn't uh an index that we tend to trade but it's an indication of kind of what's going on and um you know as far as consumer sentiment and all of that goes and you know when we look at this you know it's sitting close to 30. which you know two or three years ago we were sitting more like 10 12. and um this this is our new normal i mean year-to-date the lowest we've seen was right at the beginning of the year and it was 16. we haven't gotten back

there yet yeah so um that's a quick and dirty the last place i wanted to go wasn't to my speed test actually but over here to td ameritrade research and ideas sectors and industries so we can see today s p up three point two nine percent i mean that's a pretty bullish day but when when we come to the market monitor tab oh and energy is rallying rallying now energy has been getting the stuffing just absolutely knocked out of it you know and it's been you know the star of the show for most of the last now you know seven or eight months but in the last month the only sector that's up is consumer discretionary and that's largely because of a few big players that have been positive so amazon tesla dollar tree dollar general that's in the last month but you know a month ago we had a short put vertical on dollar tree and the thing tanked when walmart tanked and you know we took a full uh you know a hundred percent you know our our max our theoretical max loss we realize that max loss on that trade um yeah so that's the way it goes over the last three months s p down 18 13.8 percent and not a single sector in the green like if the title's in red it means the sector's down so the strongest sector has been consumer staples and even that is down four percent and just like if you're trying to get an idea of like where might one go to look for opportunities be they bullish or bearish um and then we look at energy you know up 32 but out of 11 sectors we've only got one in the green and you know over the last six months only one stock listed on the s p that's in the energy sector is not in the green and that was onono okay so that's that now what i'd like to do is come and look at a couple of potential opportunities and i've got some notes here and we'll just kind of see what's cooking okay okay so okay so um this is airbnb and airbnb has been trading in a downward channel and yesterday when i looked at this this was continuing down and so we may come back to this one we could place a conditional order because today it's up you know and but if we look at this and we say okay it's up but it looks like this old resistance this old floor has become a new ceiling and so you know what we're doing is looking at you know could this perhaps continue to fall and it could but it's not falling today so if we were to place a trade on this we might say well we do a conditional order okay so i've had a look at that one and we may come back to it uh that's airbnb because a lot of travel stocks like um this one and expedia we had placed a trade on expedia so yesterday i looked at this it hit a new low um and again this is the same type of thing so it hit a new low could we do a long put or a long put vertical yes but today it's bouncing and so if we look at that and say well again here's another one on the put side where if we were to do this we would place a conditional order and this is one of the charming things as cameron may well knows because he teaches a lot of classes that start at the beginning of the trading day and you don't really know what is you know happening in the market until the market opens and so you know again this is you know a similar situation bk it's down trending um you know recently within the week had a new low um but today it's bouncing now with booking someone who's uh you know um trying to take advantage of a small term bounce might say well what if it just moved up for one more day because it seems to have been in a you know a bit of a range here and and we could do that if we thought the market was going to continue up now this is in 1900 stock so this would be you know not within our snack bracket to do a long call on but could we do a long call vertical potentially we could but you know it seems to have bounced bounce this is a one day move the biggest move we've seen here is two days and so we might not say yeah i'm not sure that's a trend reversal pattern you know uh that we'd want to do an example trade on you know we might not okay so we've looked at that one honeywell let's have a look at that one and i'm going over some of these you know not because i haven't done my homework but because i want you know it's kind of the idea of teach a man to fish so this might be some of the thought process that a trader would be going through in their own mind as they're looking at things and you know with honeywell we could look at this and say okay um is this you know some might look at this and say well it's reached this support level is this support level going to hold well yesterday it came down and established a new year-to-date low if we come and look at this over the last year this is a new low over the year and you know we've seen this has been down trending started to go sideways um and come came down and hit this low and so some might look at this and say also you know i spy actually i want my other drawing tool what i spy with my little eye is this idea of bear flag is this another bare flag and some might say well is that a harami i don't think it's quite a harami but you know could this just be a one day up on this downward continuation you know and it could be and so again this is another opportunity maybe for a conditional order um [Music] yeah so we're going to look at a couple of other ones and then we're going to come back and we're going to actually do a conditional order um qualcomm [Music] and another place we can actually look is in the energy sector because we've seen a lot of things that have been breaking down um you know but have they bounced yet um and you know today there's a lot of stuff that's moving up but one day does you know not at a trend reversal make necessarily qualcomm so we're seeing you know a lot of similar patterns here we've got a downtrend and and it looks like okay trying to rally so bear flag bear flag this was another new low bearer flag is this a one day is this a one day so meda is asking how do we find these kinds of trades um and you know the way that i looked for these i simply came over here yesterday and i brought up the nasdaq and i linked my watch list to the chart and i just started clicking from chart to chart paypal was another one on the list you know because it's been down trending it's kind of hit this 30-day moving average the red line which has been acting as a ceiling but it's been kind of going sideways you know but today we've got a it's up six percent so i was thinking that with this one before the market opened like might we sell a short call vertical now we haven't done a lot of short call verticals in this class we haven't done a lot of short put verticals either this year and last year we did a ton of short put verticals and they worked very well for us why haven't we done as many this year well part of the reason we haven't done as many is because of the volatility in the market so you have a down something that's been down trending like this has been and then all of a sudden you get almost a violent move to the upside well if we had sold a short call vertical and now we're in trouble you know or you know you've done a short put vertical on a bunch of energy stocks and you know you're waiting you know you and the thing with with short verticals is we're waiting for time decay to work its magic and so if there's a change in direction even if it's just for a short amount of time that can be enough time to take your um to take your trade and slam dunk it into the loss category so part of the reason that we have done more directional trades both bullish and bearish and we've done a surprising amount of bullish trades mainly because the energy sector has been this island of bullishness in a bare sea this year um and so what we've done you know what we're we're trying to find something that that has a trend and then take advantage of both the trend of the market or the trend and the trend of the sector or the trend of the sector in the trend of a stock and just get in and out quickly you know be small nimble and quick and and get in and out quickly and so what's happening here is that we are you know in kind of this in between land today um which makes it a little more challenging so i want to go back to honeywell why honeywell well one if we come back to honeywell what sector is it in well honeywell is in the tech sector and how is the tech sector done well you know it's it's been kind of in a world of hurt hasn't it and so you know if we look at ixt it's part of the reason you know this is a very tech heavy index and so you want to talk about a downward trending channel um you know technology and this is a one-year chart again i'm gonna duplicate the drawing and then i i've got now two copies of that line and just bring it down so you know we're not even quite back into the middle of this channel and so you know is the market downtrending yes is the tax sector has it been down trending yes now we've seen you know a five-day recovery but is that a sign of a trend reversal well it could be the beginning of it but it could just be another bear flag on the way down and i'm just trying to present kind of both ways of looking at this and then if we look at honeywell and if you're saying well i'm kind of new to thinkorswim or i'm kind of new to the markets and like i i don't even know what this honeywell company does we can come to the analyze tab and it'll say okay oh sorry this is part of the industrial sector oh my bad it's a software industrial company providing tech solutions so you know it's kind of um in between they're in aerospace building technologies materials safety and productivity solutions so we have uh you know three of the four analysts on this chart are saying sell we have one that's saying hold now if we wanted to place a bearish trade like does this make us smile it could because like these guys are all saying you know this isn't a company whose stock we would recommend right now so rather than you know being sad about this we're saying well if we want to take advantage of a potentially bearish move on this stock this is not a bad sign and so if we come and and we look at this and we say okay it's come down we've got a one-day rally but if we look at it and we say okay this low was 172.92 or this previous low was around 175.

so we could have two or three different entries so it is sitting on a support level um but what we could do is we could say well you know what if it goes below this 172 92 what are the odds that it might continue to move down at least a little bit so if we and and the most conservative entry would be to to say if it goes below 170 292. so let's say if we said if it went to 170 192 one dollar below why did i pick a dollar well you could pick 20 cents or 50 cents but this is a stock that's upwards of 200 and so you know we're just giving it if it goes a dollar below that okay so if we look at this and we say now a more aggressive entry might be to say well today's low is 175.70 if it goes below that i'd like to place my trade yeah and and and some might say well you know could we do an iron condor on this and and the answer is you know one could but if it is down trending how far do we go we're kind of our short put vertical would be kind of in the middle of the road of that leg of the iron condor and what if this bounces then do we want our short call to get run over and so if we look at this and we say well if the downtrend 10 downtrend continues we'd like to get in so if we look at this and we say okay i'm going to come to the trade tab so once we've looked at that then we come to the option chain and we say okay you know if i come out to july if i wanted to do a long put vertical i've got 21 days um i've got a 20 bid ask spread so that's tight if my guideline on this is i want at least 20 times the number of contracts that i'm going to trade you know is is 196 contracts okay yeah we've got 40 cents on the 177.50

now we don't want to get in unless it goes to 171. and so you know if we look at this and we said well then what if we sold um this you know we could do the 175 170 or we could do because we you know and and if we come out here we could say well actually you know we could afford to do a long just as a simple long put because if we're willing to risk up to 500 how much could we lose on this trade well you know we could lose you know 500 right we could lose if we bought the 170 250 it would be slightly in the money when we bought it because we're not going to buy it unless it goes to you know one 171.92 but we could do our right click now before we get in where would our target be well if we said well based on today the average move for this is about 4.56 so our target would be let me close this it would be our entry price that 171.92 92 minus 458 because that's our one atr so it would be 167 34 is going to be our target and this is so here's our example and i'm just going to put it in right here example one atr and this is on honeywell so our atr is well now it's 460 and so our target is going to be our entry and we're going to have a conditional entry is the low minus a dollar and so that's going to be 171.92 uh yeah 171.92 so our target

is going to be 167 34. and our access we're going to take the high of yesterday and we're going to change we're going to manage this as we go along but if we just use this as a starting point 178.61 plus our for 460 and you can see we're live in the market so this is continuing to change uh 178 so if i get my little calculator 178 61 i'm just skipping the plus 460. so that's 183 21 and please feel free to do the math with me because we all know that i make mistakes on occasion okay so we're going to come in and how do we put this into the system yeah so we're going to come here and say well when we get in because we usually want to do something you know close to being um you know where it's currently trading so if we did this 170 250 now are we expecting the price to be 245 no we're expecting it to be closer to this 410 and we're also expecting that the delta will no longer be 25 if we get in it'll be closer to 47 to 50. so if we did this 170 250 or even the 170 um so if we do the 170 we just want to buy a put and we could do buy custom with oco i just find it a little faster to put it in this way we're going to change our order to a market order good till canceled and then we're going to hit our little sprocket and say we only want to get in if honeywell goes at or below 171.92 and then next week we'll have another look at this and see actually on monday i treat this class as a companion class to the long options class that start at noon eastern on mondays so we'll look at this on monday and see if if it's filled or we'll see if maybe we want to change the entry in our target so this is something that we are going to manage on a daily basis so we want to take this out okay so there we go 171.90

and then we want to put in both our target and our accent so we're going to say first triggers sequence and we could do first triggers oco but by creating an opposite order it's also a market order good till cancelled and i'm going to come in here and i'm going to change this i don't want to exit when it gets to 171.90 i want to exit when it gets to 167.34 because if it goes below yesterday's low our expectation is that that downtrend might continue 167 34 and if it doesn't then we don't get into the trade and we haven't lost you know any money 183 21 183 21. um when we do a market order you know do we have control of the price we don't so there can be some some slippage and there isn't a guarantee so we don't know exactly what we're paying but our best guess is that it will be similar to the at the money strike now what else can influence that price well a volatility goes up like crazy that could make the the price to get in more expensive you know so that's the price that we pay um for putting an order in ahead of time recognizing that you know there are people talking in the chat beforehand that they're going to looking forward to spending time with their grandkids or maybe they're on the golf course or you know maybe they want to be on a vacation or whatever it is they may not be in front of their computer when and if honeywell goes below the price where they'd consider getting in so we want to get out if it hits 167 34 or if it goes up and we're in the trade yeah we want to cut our losses so save confirm and send so we want to get into honeywell if it goes below 171.92 or if um and then we want to exit when it hits our target of 167 34 or if it goes above 183 21.

now the break even um this is is showing is not applicable okay so we're going to come down here and we're going to put that in our long put vertical bucket okay now let's and we're not going to hear any ping or ding because we're only getting going to get into this if it continues to go up so let's look at another one let's go back to air b and b so why would we choose airbnb as another one to consider well we might choose this as another one to consider because it's been trading in this channel and it broke below and it's sitting kind of with its head kind of pressed up against this old resistance level and so if we wanted to practice this strategy just and do another example we could say okay it broke below on this day and we had placed a trade um you know and it in another class and i believe it hit our target so it's come back and you know it's just kind of sitting here um and if it were to come back down might we want to take advantage of that yeah so tommy i'm going to do another example right now so you'll see the atr so atr if you're new to this class because we've used this a lot this year if you come up to studies and edit studies um and you type into the top here what is average true range it'll come up if you hit this little circle it'll even give you a definition but what we're basically looking at is in an average day how much does this stock move and how much has it moved over the last 14 days and so if we come out and and then if you want to add it to the chart you say add selected apply and okay now i already have it on the chart once and then when i come down here and i look at airbnb it says okay in an average day airbnb right now moves about six dollars you know when we come up here it you know it depends on what day you're hovering over so based on today it moves on average about seven dollars and twenty let's just go with 725. well it's saying 7 50. so on an average day over the last 14 days here we go sorry i'm just having cursor issues so you know let's say it's seven let's make the math easy we'll just say it's seven dollars so if on an average day this moves about seven dollars you know if it were to move down and we only want to place this trade because it's up today it's up six percent today is if it continues to fall so if we hone in and we say well yesterday it was a down day and the low yesterday was 93.02 so if it went below 9302 and we might say well this stock is under a hundred dollars so if it went below that by 50 cents so if it went to 92 52 i want to get in so that's not quite you know the low on this but if it goes below yesterday's low i'd want to get in and so it's a conditional order because we don't have an entry today it's moving up and we're saying only if it it rolls over and starts moving to the downside and comes below yesterday's low and then if on an average day it moves seven dollars so here's another conditional example and we're going to use this one is airbnb and the one atr is about seven dollars on this and we're going to make our at a conditional entry which was yesterday's low or recent low minus and why 50 cents because it's under 100 now you know i'm just making up a rule a potential rule everybody can do what whatever you know entry they want you might say i like the idea of a buck i want to be more conservative somebody else might say i don't know why you're using 50 cents i'm using 20. and a third person might say hey i want to get in if it goes below today's low and today's low is 96.33 so

if it hits 95.83 i want to get in and you know you just track this and and you know and then you can you know make your own make your own guidelines remember teach a man to fish right so and our target if we get in the one atr would be our entry that 92 52 minus seven dollars so if i come back up to my let me just use my phone okay 92 52 i usually have a high powered calculator sitting at my desk not that it always helps 92 52 minus a 7. i know i should be able to do that in my head 85 52 and then what would our exit be well what was that high for the day because we're this is a bearish potentially bearish trade 180 100 and 80 cents plus seven dollars so that would be 107.80 and again what you'll notice is we put these in the same way every time so we come to the trade tab we're going to come out to july and say if this goes below um and below what below this 85 dollars 85 52 so sorry our conditional entry and 92 52.

so we need more strikes so we'll go to 20 strikes so if we said okay we want to be out here around this you know 90 level uh do we have a lot of contracts well we've got 4 500 contracts at that strike level now are we expecting to pay this price no we're expecting to pay a strike closer to what the at the money would be although you know this is a a lower dollar value and again we may not even end up in this trade or we might say well if it's going to be 500 maybe we'd want to turn it into a long put vertical and we could do that we could say well you know what if i get in this and it's going to be around this 500 mark that might be too rich for my blood you know but we're just going to assume that we could go ahead and do this because i wanted the repetition of the trade that we would want to buy a single we are going to make it a market order good till cancel and then we're going to come in and say when do we want to get in we want to get in only if it goes below 92 52. so if airbnb goes below 9252 we're in and then we're going to come to single order first trigger sequence right click anywhere on this line opposite order and come to our sprocket and if it's at or below now we're putting our target in 85 52 85 52 and our exit if we're mistaken and it goes back up once we're in 107.80 and we will review these again on monday and look at one did we get in if not do we want to adjust our entry and our targets okay yeah and you know somebody typed into the chat and said you know i i have trouble with the condition conditional orders i've had trouble replicating them and you know this is why um you know this is why uh they're archived and i cannot tell you how many times that i went back and went to the archive and backed it up and played it and and then you know i'd bring it up on my laptop and on my desktop i'm trying to put the trade in myself and paper money and then i'd get stuck and i'd go back and i'd back up the recording and play it again and play it again and don't think like am i dance i can't get this like that's what i did in the beginning now there's a question why did i pick the 90 strike price it's because i only want to get into this trade if it goes below 92 52 with where it's currently the current low is we picked 92 52 as our entry and so because we pick 92 52 as our entry 90 dollars will be closer to being you know at the money now well now my drawing tool decides to work it'll be closer to where it's trading like right now it's trading at 101.90 so we only want to get in this trade if it starts going back down the hill if it goes up this is a bullish trade that we have set up that we oh sorry uh sorry and you know what guys we're out of time so i do have to wrap this up but you know we we chose this because of our entry okay so guys i fixed the screen um this is a wrap for today i will do a uh class on a trade management mini session on monday so look for that this week okay so and these are one atr they are short-term targeted trades that we will only get into if the market goes down keep in mind that everything we do in this class is for education and informational purposes only none of it is to be construed as a recommendation on the part of td ameritrade or myself as always thank you for showing up huge thank you to cameron may for adding so much value in the chat i hope you check out his classes as well so uh have a great weekend everyone i will look forward to seeing you in long options on monday take care everyone bye for now

2022-06-27 11:35

Other news