Discretionary vs. Non-Discretionary Trade Management| Technically Speaking: Trading Stocks & Options
[Music] [Music] good afternoon everyone welcome to our webcast on technically speaking trading stocks and options i'm connie hill happy to have you join me here today it's a beautiful sunny day here in the salt lake city area in fact it's about 75 degrees which is just nice and sweet not too hot not too cold and not really feeling fall weather come on yet which is nice now i have a question for you and if you would like go ahead and display your answer here go ahead and chat that in and that is how many of you struggle with getting out of a trade or managing a trade meaning maybe you're really good at finding your setups and your entries but then when it comes to really deciding should i get out should i stay in what should i do that that's a real struggle i would not be surprised because i've heard it from very many of you that that tends to be a problem so that's one of the things that i really want to focus on here today and give you some ideas as far as the thought process you can go through depending on what kind of a trade it is all right so yeah i'm getting some yeses out there that that definitely is can be a struggle i i appreciate that we have writing shotgun here today barb armstrong she is here typically every week unless she's filling in for me but between she and myself will answer your questions she's very knowledgeable i know a lot of you attend her classes because i recognize your names and so as you have questions chat those in if you're listening to this on the recording that so many of you do go ahead and put your question in the comment section and i will go back and answer those throughout the week as those questions come up now you know we're on twitter i'm at c hill underscore tda barb is at the armstrong underscore tda i really hope you're following us and getting those little tidbits that we throw out throughout the trading day that we think you might find interesting you if we found it interesting we think you probably might like it as well well what we talked about today is intended for educational and informational purposes only shouldn't be considered investment advice or recommendation of any security strategy or account type we will be discussing options and they're not suitable for all investors special risks inherent option trading may expose an investor to a potentially rapid and substantial loss while this webcast discusses technical analysis there are other approaches including fundamental analysis that may assert very different views past performance of any security or strategy does not guarantee future results or success please no soliciting take lots of notes uh take those to your heart's content all right our agenda is going to be this like i said i really want to focus on trade management techniques and really the thought process what is it that you're thinking about as you're managing the trade we're going to be looking at some of our existing trades we have a bunch that have that are different varieties and then we're going to look at a couple of potential new positions and when we talk about them i want to stress what we're going to do to manage those new positions sometimes i don't spend as much time there as i maybe could so we're going to do some changing up on that today all right let's jump over to my paper money account and i'm going to tell you from the get go there's the good the bad and the ugly we are going to start with the ugly for on our first example here now we got into a trade with moderna uh back here on this date july 7th let me just kind of zoom in here a little bit on that particular trade we bought 100 shares of stock and we also bought a long call option well here we went stock pulled ups or pulled back then it ran up and we were up a pretty significant amount on the trade and we decided we would put on a trailing stop-loss onto the stock and we did guess what happened we got stopped out pretty quickly on that little pullback at the trailing stop loss i got out of the trade made a good profit happy campers but somebody did not put the same stop loss on the longer dated option that we were treating as a stock substitute okay therefore what happened nothing happened okay because the stop loss didn't get entered profits weren't protected uh we haven't uh i haven't talked with you or worked with you for a couple of weeks so we've had a couple of weeks of action going on in fact i want to show you this i want to show you from the peak to where the point is right now as far as uh change of the price of the stock so i'm going to come down here where we are today and i'm going to run up to our peak point right there we have lost paper this is only on paper and theoretical and it's not uh book in the book so to speak 29 is what the stock is pulled back from so instead of being able to capture a gain on that long call like we did with the stock guess what we're sitting with we're sitting with ugly all right uh down 29 percent i'll show you what our option looks like so we come here open up the darna uh we paid a hefty price for this we paid 31.75 for it it is now only worth 11. so what does a trader think about right here do you think about well besides the fact that you're mad okay and then i ticked it yourself that you got lazy and i'll i'll tell you when i get lazy is when things kind of slip away but i'm not my sharpest one i'm not staying on top it's really easy for something that you have right in your hand to just fall out like grains of sand on the beach so i want you to answer me in this scenario and it could be different for every person would you get out of the trade now or would you hold on well in thinking about that and spending some time on that today i looked at several things i said well when's it in relationship to other moving averages we're going to be using the 5 and 20 here later but i put on a couple of other moving averages and we're just going to pull up a couple real quick we're going to do simple moving average we're going to make one a 100 day come on sunny i'm going to make this in 100 day we're gonna make a little bit thicker make it black and then we're gonna do a 200-day okay so we're going to modify this apparently my double click is not super great today all right many times when if moving or a stock gets down to a moving average that's a longer term moving average sometimes value investors could enter the pitcher so here's our 200-day moving average value investor did not come in and scoop it up all right that's actually pretty high because it had been upward trending for such a long time the other line we put on here was a 100 day moving average and look at that it didn't bounce at the 100 either all right well maybe there are some bargain hunters out there if there are and you like that fundamental approach which we're not going to talk about too much in this class then somebody might run the numbers and see if it looks like it's a value i ran some numbers you doing using the little spreadsheet that we have for you to calculate intrinsic value and it just didn't look realistic okay plus i didn't want to go into it this is a technical analysis class but that would be a natural thought processes maybe should i hang on to it for a value stock if there is not that much time left in the option probably not the best idea it's got to recover we already know a huge percent almost 30 percent to get back to even where it was here at peak time all right so some of you might say get out some of you might say you've got lemonade cotting or you've got lemons you already made your own lemons make lemonade out of it that's the approach we're going to take with this one we're not going to be we're not going to put on a very uh we're not going to hit the exit button but we're going to put on a stop if the stock is starting to build a base we've got about five days in a row here where it hasn't dropped that much looks like maybe it's trying to find support we'll give it the opportunity to bounce the support but if it doesn't do it we're out okay so we're going to put it on a real tight stop the lowest price it's gone would be today in the last five days uh that's 137.78
137 78 we're going to give it 2 we'll multiply that by 0.98 we're going to put in a stop loss here at 135. uh 135.02 well actually let's go uh o2
let's go just to shade under that because sometimes stocks bounce at even numbers okay and so it would be a pity to get stopped out at 135.02 and have it bounce at 135. so we're going to go down just a little bit we're going to go down to 134.90 we're taking on some additional risk if the stock doesn't do it we're out we're not riding it any further but we're going to try to make some lemonades out of the lemons okay and this is because what somebody did not put on the same stop loss now i don't know if any of you have ever done that where you think you've got yourself covered and you really didn't yeah uh that's not the case so let's go put it on we're going to base it based on the price of the stock not the price of the option so we're going to create a closing order where we're going to sell it bring it up we're going to do it at a market price it's going to turn out being good till cancel because we don't know when or if this stop loss would kick in and we'll do it under the condition that the price of moderna goes at or below 134 90. let's make sure that got locked in there [Music] it did not let's try it again 134 90.
we go uh let's just check it down there is less than or equal to so we've got that trigger pointed the right direction good till cancel we'll just get out whatever that might be now i want to point out one other thing to you uh that i recognize this approach i'm going to call it's a gambler's mentality right you're thinking oh it can't possibly get can't get worse and actually could get worse okay but we are going with the approach of yeah we're willing to take on a little bit more risk to see if we can get some recovery out of this option so that we don't sell it at as big of a loss as what we're sitting at right now it doesn't necessarily mean it's going to make it be a winner by any means okay but that's just the approach let's go ahead we're going to hit save and we're going to send this little guy on uh this red note here just lets it know lets the the trader know that sometimes if there's wide spreads out in the market in terms of getting placed on the trade that they'll go ahead and substitute with a limit order if that is needed so that's a nice little thing here okay that was the really ugly and next thing i want to take a look at are two trades we got into uh the week of august 4th so if you weren't here for us that day that's fine it's it's in the archives and we did our entries based on a 5 and 20 crossover meaning 5 period moving average crossing over the 20. the two trades we had on it were a i and a-l-l and how do i know this well i put a little note when we created the trade i let myself know yep that's the one we did on the 520 crossover so we know how to manage it because the rules are going to be if it's crossed back down we're out okay so let's go take a look both of these trades are down a little bit so let's take a look at ai first i'm going to clean up our moving averages here because really they should have no bearing whatsoever when we're doing a crossover system we are simply taking the cross of the 5 crossing above the 20 here like we did on the entry and we do not get out unless the 5 crosses below the 20. that's all we're looking at so as we sit here looking at ai we can see ow yeah we got in we had a nice little run and when did it cross over looks like it actually crossed on tuesday so two days ago is when if we were monitoring this every day which is kind of the approach we should have we would know what was going on we would have seen that cross and at the end of the day we'd have said okay time to cut our losses go ahead and get out now i know some of you are going to be really tempted by this next thing i'm going to tell you and that is you might back up here and you might look at this and say well what if we extend this diagonal support trend line what if we do that well let's go ahead and extend it to the right and lo and behold what does it look like well it kind of looks like it came down to that support level and is bouncing up that can mess up your thinking can it because it's normal technical analysis but in this particular uh strategy we said only are we getting out if there's a cross we don't care about where support levels are we don't care about anything else we make the plan 5 crosses 20 that's our plan we stick with it all the way through the trade and that's how you want to be with your trades you want to say this is my plan and then trade the plan don't deviate don't uh let all these other thoughts enter in if it's a system like this if it's a system that's discretionary like our previous trade yeah you're going to be sorting through those types of things so what do we need to do here we need to get out right we have our crossover we are not going to bring in all this technical analysis that muddies the water and even though you're like well coming i don't know if i really want to do that now tough we're going to do it all right we're going to stick with our rule so we're going to come over here to ai we have put an alert here just to let us know if it got down to a certain point but we just need to go ahead and sell it now maybe getting a midpoint price here would be nice oh it looks like they're priced about the same we're just going to go ahead we're going to send it off out of the trade we need to go next stock uh right next to ai uh we did aal american airlines and you're going to go man this looks like a repeat and it kind of does we got in as soon as the five crossed above the 20. had a nice little entry and when did it cross tuesday again tuesday this five moving average clock crossed below the 20 what does that mean exit do we care about support no do we care about candles no we're not going to let any other things influence the decision we made at the very beginning of the trade okay so with this one it's time to be out too we're not going to run fibonaccis we're not going to say well maybe it's at a fibonacci level no we're not doing any of that uh well while it says well maybe there's an inverted hammer at support and i think me you might be kind of keying in on these couple of candles here yeah so because it's a non-discretionary system that we got in on the trade we're not bringing discretion in on the exit that wasn't part of the plan uh again if we were doing modernity yeah we'd look at candles we'd look at some different things like that so let's go ahead what are we going to do we're going to trade our plan and we're going to go ahead and create a stop loss order here uh and actually let me go back here on ai um it looks like we we also have the stock here and i'm not sure when we exited that but this was just for the option on aal we we still have the stock and we have the longer dated option that we're treating like a stock see this is out for january and so we actually need to do it to both because whether you're trading the stock it crossed doesn't matter if it's the option that's replacing the stock you need to exit on that too so we're going to do both we're going to create our closing order we're going to get out and then we're going to do the same thing on the option uh we didn't lose a whole lot on it and you know 99 bucks but we're sticking with our plan great closing order out the door we go confirm and send now i'm going to look in the chat and see what kind of questions you guys are having here michelle i apologize i didn't see your question here at the time that you sent it you said what is the optimal time to exit this particular trade if you're talking about the 20 crossover the optimal time is at the end of the day you're going out you're looking at your stocks maybe it's after the market closes maybe it's before before it closes and when you see the cross the exact day it happens and it really closes there that's when you get out now sometimes it's really close sometimes you'll get what i call a kiss and a kiss isn't really a technical term for stock charts but you know sometimes you might see uh the moving average come here and it just looks like it's really close like you're like oh maybe it crossed by a tenth of a penny or something and so if it's doing something like a kiss here then you might just wait for confirmation the next day that it either breaks back up or truly crosses down below all right so sometimes on that little kiss you can give it a little bit more time uh duck says please just define discretionary doug i appreciate you asking that question there's probably others asking that question as well uh when we entered into this trade first week of august we talked about a system of rules to follow that you had absolute entries absolute absence you didn't have to think that much you either have a yes or a no that's a non-discretionary system discretionary means we think about all these other things about technical analysis we think has the trend broken do we have lower lows and lower highs uh do is the stock sitting at a support level if we drew a fibonacci maybe it came down to a fibonacci level all these other things that that we use in technical analysis and we decide which things are important which things aren't right if the trends change could be a big one if it's broken a major support area that can be a big one and so we're using our discretionary efforts diagramming and analyzing the chart to make the decision okay so that's the difference between the two i think we answered michelle's question there as well now i do notice out in the chat we've got a survey and you guys know we ask uh ask you for feedback once in a while in our webcasts i don't want you to do it quite now we're not finished with our session there's a lot i still would like to go through but you need to select the link while the session is active and so if you wouldn't mind wiley i already did this um wiley said i already did the survey thanks wiley we always appreciate that but uh go ahead click on it but just don't do anything with it let it sit in the background while we continue our discussion here and i will remind you at the end as well um mine says can you do [Music] cogent order on exit moving average cross uh wiley yes you can i'm just gonna i was gonna go back and uh determine the best way to do that um but i didn't so i don't want to demonstrate fumbling through it to you but yeah you could if i come back here uh what do we uh we'll use another stock we haven't traded out of um let's use this one if i come in here to ari that's another one we're going to take a quick look at we've got a stop loss sitting here so let's go ahead to cancel replace and in the year in our order rules box i believe that we can do this by a study but i can't remember exactly how to set it up so here's our study and i think we'd have to go find the moving average crossover and like i said i'm not going to fumble my way through it right now but i know that's kind of the direction you'd be headed okay on that wiley let me give me a chance to research that and i will bring it up uh and show you how we could do that the next time okay you help me remember as well please um oh and chris was letting you know as well yes you could use the study in there as well all right i think we've caught the questions so far very good thank you for doing the survey here as well okay we've got some more we need to do here i'm going to delete this uh we've got this little trade so we're done with our 520 crossovers okay so we had moderna we put in a stop loss should have been there before uh let's look at a couple trades here back on the activity and positions let's clean this up a little bit matador we've only been in this trade i think a couple of weeks is all we got in on august 11th and we did a short put vertical here our short leg you'll see here is the 5750 put so what do we want the stock to do well by the time it gets near options expiration and we're hoping to be out before that actually occurs we would like it to be above 57.50 let's go see where it is looks like we're up a little bit on this trade about six percent almost seven uh so it's kind of like it's got a little bit of a beginning uh the price uh when we got into the trade was 80 cents and the value of that spread is down to about 47 cents so let's look at it on the chart and that one was matador matador resources at this point i'm going to take off my actually i'll leave the moving averages on but no i don't want them to confuse you i don't want you to think that on every trade we should look at the 520 actually i am going to take them off because i want to kind of say we're not going to look at it to make a decision here we're going to go back to some discretionary things all right so i've i put in here and i like to do this on my charts i don't know if you have a way to keep track of things but i like to draw in my short legs so that i know where i want the stock to stay above or stay below so here i've drawn in this line at 57.50
how did i do that i'll just show you real quick pick your price level drawing tool come out to where you want to draw the line put it there it can be anywhere really go ahead and edit the properties and then you just put in that price so i just put in here 57.50 and then i put a little bit of extra information up here what the two strike prices are that it's a short book vertical i put that information in there by filling out this box by editing it now i'm going to hit cancel and we're actually going to get rid of that because i don't want it to muddy the waters right now stock is doing pretty good i didn't mark the 11th when we got in i think it was oh it was this day right here not sure why i don't have it marked but we'll go do it that's part of my documenting of the trade so i can keep track helps my thought process as i'm trying to manage it and so it's kind of doing what we'd like it to do we're going to leave it alone let it continue to work on that short foot vertical we have smr this one we haven't been in that long and we did a short put trade on august 11th as well we did those two trades together we did not put a hedge leg on this we just said hey we would wouldn't mind owning this stock uh therefore we're just gonna sell the put bring in that cash and if we get put the stock at fifteen 15 great would be happy about it and would kind of consider the buck 75 would kind of think of that as a way to lower our net output for the price of the stock right because if we did if we were assigned we have ownership of it we could say well okay the net effect here is we bought it for what 13 75. i think my math is right 13 13 25 13 25 is what it would be so right now we're up a little bit in the trade of about 32 we only did one contract because we only risk 750 per trade in this account let's pull it up smr uh let's zoom in this particular one this is interesting we got in on the 11th and i think i may have uh i'm trying to remember what rule we used to get into the trade because usually i like to let it break out of the flag pattern and it didn't but since that time it's pulled down it's run back up right now it's just a little bit above our 15 price tag but it's doing what we'd want it to do it's a bearish candle today but yeah it had already five bullish candles so again we're going to let it work now the last one we're going to take a look at is this stock a-r-r-y array technologies on a array this stock is a big mover it is really volatile okay when i say volatile what do i mean by that there's a lot of moving parts here if i come over to the trade tab and i open up this little area for information on the stock and i come over here to beta i see that it's a 2.03 beta what does that mean do you guys know uh a beta is basically telling us the movement of the stock and we're going to compare it to an average stock on the s p 500 well an average stock on the s p 500 we're going to say is a a beta of one and if we have something that's a 1.2 then it's 20 percent more volatile than an average stock on the s p 500 if it's a 1.5 it's one and a half times
i should say 50 percent more volatile than that average stock so here this bait is two it is a mover it typically moves about twice as much as the average stock on the s p 500 so that gives us an idea yeah that is a a stock that likes to move around there's some volatility in there uh chris says you got stopped out when it and then it ran up uh on this particular trade or was it the previous one i'm not sure which one you're making that comment to it might have been the previous one but let's look what we've got going on now we have an upward trending stock i had a great reception to its earnings i don't know what they said because i didn't go look it up but they had a great reception to their earnings and the stock gapped up and came and man it came really near our stop-loss okay uh it may have even been a little bit closer than that in any case it didn't stop us out i don't know if that might have been where you got stepped out uh stopped out okay but we're close to it now as we go back to the monitor page i want you to know we're up 41 in the trade now yeah it's volatile and maybe we didn't expect to get this great news we just kind of got in because it broke out here and it had great volume when it broke out whatever that news was institutions and others moved in because we had a huge trading volume that day and and that means it's more likely to stay up in a breakout scenario same thing here when the stock gapped up look at the volume that day you know that was maybe two and a half times the average volume when we see something like that the stock is likely not guaranteed but likely to stay above where it gapped to so on the day that it gaps up many times i'll come out here not just draw a little line and i'll say okay stock should stay above that and it did for the most part notice it never closed below it had a couple of days where it ran down below it but it looks like the bottom of that gap is going to continue to act like support for this stock so the question you have to ask yourself is am i going to want to do i mean maybe you should have done this in the first place we didn't really talk that way we were just taking advantage of this nice breakout but is it a stock you really see potential in have you researched it have you gone out looked at the news did you go out and see what the earnings said did they go out and say hey for the next year we're going to increase our forecast things are going so snazzy for us right you go out and find out what the news is and then at that point you're like i'm i'm going to treat it as a trend trade and when i say treat it as a trend trade what i mean by that is you'll let it run up pull back run up pull back and you stay in it and you don't get out unless it breaks a major support level you ride the peaks and the pullbacks that takes discipline okay i'm going to tell you there are some of you in here that don't have the discipline for that it's kind of like you'll love the writing up but oh it just tears you apart when it starts writing back down okay it is you have to have that mentality uh there could be others of you that say 40 we are up 40 in this trade we got in at the first of the month i don't want to give very much of that back i want to keep a lot of it and and either approach is just fine you just have to decide for yourself what it's going to be in this situation we're going to go ahead with the mentality of we don't want to give back a lot of profits okay so we are going to put on a trailing stop loss order now some of you are aware what trolling stops are some of you aren't a trolling stop loss works like this you decide how much room you want to give the stock to roam okay it could be a little bit can be done in dollars or can be done in percentages and so at the time we put it on and so in this case we're going to be putting it on right at where the price is right this instant and we're going to use a percentage of eight percent is eight percent magic no you just kind of decide am i willing to give up eight percent of those 41 profits in order to keep it going that's what i'm saying but if it pulls back more than eight percent from where we are here then it's going to get us out of the trade but suppose it pulls back and say this percent is only seven percent it doesn't kick us out of the trade and then the stock goes up well this continues you know at this peak and once that calculation once the price of the stock gets above that calculation it starts it again a percent from whatever the peak price is at that time okay and it follows it along some people like to do manual stop losses and i i don't um discourage that at all sometimes you'll want to it based on maybe 25 cents below the low or whatever it happens to be but let me show you how this one's going to work number one we're going to get rid of this stop loss here because we're going to change it oops let me get rid of my colors go away colors there we go i'm going to do a cancel replace and so instead of having to stop here we're going to change it to a trail stop and then when that comes up there's this box here that we're going to we're going to change it comes up and it says okay plus or minus it's going to be minus here 10 cents well if we put on a trailing stop for 10 cents we'll probably be out today okay we we're not going to take that approach we're going to click on this twice till we get a percentage and then we're gonna put in minus eight percent okay and then from that point on wherever the price is it's going to calculate it a it's going to give it a percent room we keep it good till canceled i've got a decimal there i actually don't want i just want it to be point minus point eight even we're gonna spring this up and it's gonna just kind of review yep our stop loss our trolling stop loss is going to be 8 and then keep in mind there's never a guaranteed price that the stock will get executed when it gets to that point or lower it's going to trigger market order it'll get it out at the next available price we don't know what that price would be all right we're gonna we're gonna follow along on that now that was a lot of trades that we just went through and i wanted to spend that much time because i wanted you to hear the thoughts that go through a mind and how you might process those different thoughts because we had several different types of traits here if you have any questions i want you to send them in right now so that i can answer them before we're finished and okay vijay's talking about that there are other ways to do a trailing stop loss and one study that can do that is called a parabolic stop and reversal acronym is sar and that might be a fun thing for us to explore another day i'm going to keep that in mind all right what else is on here i want to pull up a stock i've actually got a couple that i pulled off my scan called the early morning movers now you guys i teach you this scan in our exploring think or swim class and uh and sometimes some other places i'll teach you that scan but i'll put some results out almost every market day i'll put out some of the results that are coming back from this scan so there were three that i had picked that might be good examples to take a look at the one i want to go to first let's do this smci uh super micro computer all right of this we've got a clearly an upward trending stock even though we don't have moving averages on there to show us had a little bit of a pullback yesterday it had a nice close above the high of the low day it just did it by pennies this was the lowest day and it just barely closed by that now we're getting a little bit of follow through today stocks up about 5 pulling back off its heights though and so we might say well how might we project a potential target for this so for this particular one we're going to use fibonaccis if you are not familiar with how to use fibonaccis in cameron maze getting started with technical analysis class on monday he went into a lot of detail of how to use the fibonacci and what it even is what are these ratios etc my little shorthand for you is just going to be it gives us an idea of some potential places we might want to put a target and so we don't know that this is the full move here so i'm going to take the previous peak i've got my fibonacci selected because we're projecting upwards i'm going to start at the top of a move and i'm going to do a pretty decent size move we're going to start here at the top i usually will go for that top price and then you're going to do a full move so a move where we have a low now we have a low here we could go to we have a low here we could go to i'm actually going to do the little bit bigger move we're going to go ahead anchor that in and then i'm going to squish my price down and it's going to say the next potential target area is around this 161.8 percent retracement level uh say the price of about 86.44 that's about what a 12 12 14 move here okay that's pretty significant is it going to go there immediately we don't even know if it's going to go there but it probably isn't going to be a straight shot right it'll probably run up and pull back and run out they'll pull back we're going to put that on as our target and so i'm going to use this little space in here we'll get rid of that we already did our note there our target let's do it a little bit below 86 or 86 and not all the way to 86 44. that's going to be our target now our stop loss we can use the fibonaccis to help us determine where maybe the stock finds support sometimes it's founded there at those levels and sometimes doesn't even seem to be related at all and i didn't want to zoom in there want to zoom in here and so can you see here how this 78.6 percent line very short term seems to be acting like support so we're going to put our stop loss just a little bit below there you know i look at these candles here and the one that was the lowest was yesterday so we're going to go a little bit below that we want it to give it the space to penetrate if it needs to and then come back up and so here we're going to put our stop the low is at 71 uh no 66.50
and we're going to go a little bit below that so let's go 25 cents lower let's put our stop at 66.25 now as the trade my expectation and yours is that we're expecting it to continue to go up and we're going to ratchet the stop loss up a little bit every day we're going to come in here it's going to be we're going to try to as soon as the price of this gets past its entry point and it's gone up a little bit we want to move our stop up to a break-even point and then we're going to follow it every day as we look at it we're gonna go out and move the stop loss up 25 cents each day okay that's going to be our method we know it from the beginning we're going to put it in practice right now so we're going to go to our trade tab uh let's see this is a little bit more of a volatile stock as well not quite so much as the 2.0 but let's go ahead we're going to do a right mouse click we're going to buy a custom with an oco bracket that's where we can put on the target and the stock now i did some position sizing before class on this one i think we could do 43 shares okay so we're going to just change this to 43 and sync up the quantity there and then just the price we're buying it at this first order here we're going to put the as the target so that's the one we're going to set at 86.
if you want to go all the way to 86.44 you could we're going to make that good till canceled this one is going to be our stop loss we're also going to make it good tell cancel and then we're going to put in our stop loss price but no we're planning to change that if the price of the stock does go up so 66 25 is where that stop is right now if we hit our target we're out if it hits our stop loss we're out and it goes and cancels the other order for us notice here on the stop it would be a market order so it's not guaranteed as 66.25 but the intent would be to guess get price something close to that uh looks good that's what our red message means is that execution price isn't guaranteed and we've sent that off we're going to track that in future classes but i want you to have the idea here that managing your trade if you make the decision up front it hopefully doesn't you know put a knot in your stomach hopefully you're like i have my plan i'm going to trade my plan if you're tracking those in a trading journal you'll get a good idea hey is this plan working or not if it's not working several trades you're like well i maybe need to change something then or whatever the case may be okay that have the plan up front now i was looking to see if there were any questions that i needed to cover yeah vijay says to chris that you like to do that as well vijay no emotions involved and just some other tidbits bj sharing with our our class in here right now well i appreciate you being here today and your contributions your your comments your questions barb i thank you for being here as well today and answering questions i know uh we've kept you pretty busy let's go through our final disclosures as i do so i would love for you to fill out the survey okay and i would love for you also to have a plan for every single paper trade or live trade that you have going on go back now if you didn't have a plan create that plan and follow the plan okay that's how we manage things without going crazy all right uh i just need to remind you what we talked about today is for educational purposes only not a recommendation of any security strategy or account type a trolling stop loss or stop loss order doesn't guarantee an execution outer knitter to the activation price once activated they compete with other incoming orders appreciate you being here today next week we'll follow up on this trade and we'll get into some new ones as well coming up is trading the trend next i know james boyd's on vacation i can't remember somebody really cool is gonna step in for him though okay uh i can't remember who the really cool coach is but somebody will be all right stick around you'll enjoy that class we'll see you next week bye [Music] you