Identify Trend First to Determine Trade Type | Technically Speaking: Trading Stocks & Options

Identify Trend First to Determine Trade Type | Technically Speaking: Trading Stocks & Options

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[Music] [Music] good afternoon everyone welcome to our webcast on technically speaking trading stocks and options this is a class where we get to combine looking at technical analysis analyzing the charts see what we think they might be telling us and being able to place whatever kind of trade we think might be appropriate so we'll have information here for stock traders as well as option traders now i'm curious to know what you guys think of a question i'm going to post to you go ahead and chat in your particular answer the question is are we seeing reversals in the markets okay are we starting to see reversals in the markets go ahead chat into me what you think the answer to that question is now we are joined in the chat with barb armstrong she does such a fantastic job she's very knowledgeable i always appreciate barb being my chat shotgun because of the great job she does so we really want to answer your questions go ahead chat those into us if it's something barb can easily handle she will if it's something maybe i need to address then we'll take it that way as well well let's get started here i am on twitter you guys probably know this many of you i am at chill underscore tda and i'll post educational content throughout the day i've been a little bit busy this morning doing that things that i think you might be interested in seeing or maybe a resource now barbara's on twitter as well she posts a lot of great content you've got to make sure you're following her at b armstrong underscore tda in fact i think i saw a glimpse of something she posted here earlier today about a tip using the thinkers one platform and heaven knows we all need help with the thinkers one platform don't we all right well what we talked about today is intended for educational and informational purposes only it's not intended to be a recommendation of any security strategy or account type options which we will discuss are not suitable for all investors as the special risks inherent options trading may expose investors potentially rapid and substantial losses i'm going to say make sure you practice your option strategies in your paper account that's where you should do your testing and your proving while this webcast discusses technical analysis other approaches including fundamental analysis may assert very different views uh stock markets are volatile and can decline significantly in response to adverse issuer political regulatory market or economic developments the risk of loss of trading stocks can be substantial past performance of any security or strategy does not guarantee future results or success as we show you how to use the thinkorswim trading platform we need to use actual symbols but keep in mind td ameritrade does not give recommendations or determine suitability of any security or strategy for individual traders any investment decision you make in your self-directed account is your responsibility now our agenda today is going to be somewhat similar to what we've done in the past but number one i want to review the markets and with everything that we're looking at reviewing here today i want you to think hey are the markets reversing i appreciate several of you that chatted into me to tell me what your thoughts were about that umitra says not yet nicole says yes george says starting maybe so we're going to take a look at it and see if we have a little bit more clarity by the time we're finished with our class today we're going to look at some current trades and some that completed for us and of course we always want to put some new trades on depending on what we see going on in the marketplace so let's jump over to thinkorswim first of all and first thing we're gonna do is just take a quick look at the markets i don't want to beat the dead horse okay but i do want you to be aware now i've got the spx here we use that as a general overall gauge for the overall market and one thing i have here that some of you might find useful to see is that we have a little bit maybe of a channel developing okay a channel meaning our support is rising and our heart our high points are rising as well and if we were to examine this uh fairly closely we'd say okay well we've got a low here down here at the bottom of that shadow and then we also have a high point right here and that high is higher than the previous peak we saw which was over here okay so we've got one higher high one higher low now a rally in one days and one day does not change a trend doesn't we need to see multiple efforts and so it's helpful if we say okay let's find a higher high a higher low sometimes if they are not that big a kind of like a teensy high or high or a teensy higher low you might not feel as comfortable that the stock or the market in this case is really reversing you might want to see a lot more evidence but maybe who said maybe we're starting i loved what that comment was here just a second ago when i was reviewing it said george texas this is what i was interested in george said starting george texas was not totally convinced yeah things have changed as maybe they're starting to change okay let's take a look at the dow jones doing this under a similar point here and i'm going to see if i can get my drawing tool to work i wasn't being very cooperative here a minute ago we'll try it here again similar type thing maybe starting to happen here on the dow jones we have our low point here have kind of a long shadow and a hammer and when we see that we the idea here is that maybe for the very short term we're going to see a reversal of price action when we see a hammer type candle and sure enough we have we have what once four five six days actually i counted 25 days of some bullish candles a little bit of sideways action here and maybe a little bit of some bullishness here as well now the other thing that i have on the chart is something we looked at the last time we were together ken rose filled in for me last week gave a super class about maybe how to identify targets and and when you're looking at some charts based on some price patterns so what we're seeing here we've got kind of some sideways action but we do have that low point here we certainly have a higher high right this high is higher than that previous high so we're like good we've got a higher high and then if indeed the stock bounces up here then we might say we have a higher low right now it's not really definitive in fact people might be waiting for a little bit more confirmation that that's what the dow is doing i do have down here as well the relative strength comparing to the spx and it doesn't look like because the low points and the high points are kind of going downward doesn't look like the dow is outperforming the s p it looks like the s p is a little bit stronger than the dow right now if we were to bring up uh bring up the ndx there we go are we gonna see something similar no again we have kind of a lower point kind of a shadow here on a somewhat hammer-ish looking candle the head's a little bit big for a hammer that would kind of maybe be a sledgehammer but we're really only looking for hammers in any case we do have a nice little run up and if we say here that the previous high was right here do we see a higher high well yeah actually today we are starting to see this high point through here is a little bit higher than this here so what we're seeing really is a higher high again could it be starting yes do we have a lot of confirmation of that no we really want price action to confirm it when we see something like some bearish candles here right we've got two red candles and so somebody might go well is it a higher low well it didn't really pull back that much okay so really when we're looking for higher lows we're looking for say stock or mark whatever it is run up and then really have a pullback okay if that pullback's higher than the previous pullback great that's a nice to see nice to know so possibly i'm going to say possibly we might be seeing in the markets a little bit of maybe a reversal if we see it out in the indexes we are likely to see something like that develop at an individual stock level in fact if you see some price patterns developing like channels like we just looked at like in inverse head and shoulders which we haven't really seen yet or even if we start seeing flags if you're seeing that on the indices many times you're going to be able to see that in the stocks so just kind of be aware of that it since we are seeing a little bit of that out on the indices all right so let's move on to our next topic which is looking at some of our previous trades now i just want to look here real quickly yeah barb's got some comments here as well as far as what maybe what the market might be doing bulls and the bears are duking it out she says i am noticing in the chat a little survey some of you've seen these surveys before and you've filled them out for us we so much appreciate your doing that for us uh those of you that haven't seen a survey before there's a link in what you'll do you'll click on the link you'll have the opportunity to fill in the radio button pop pop pop whatever your feeling is on a scale of one to ten and then there's two places for you to leave comments if you'd like to okay so you can make it super quick as five seconds or if you want to communicate a little bit more uh there's going to be space for you to do that and i encourage people maybe to communicate something with me that they would like me to know for example hey we haven't touched upon xyz for a while or maybe at all is that something you could cover in another lesson and i take those comments and incorporate those into things that i teach you trying to meet your needs as far as what you're looking for if it's appropriate to cover in this section and because our leeway is pretty wide in here many times i can accommodate that really easily so at the end of our class i'll remind you to fill out that survey if you want to click on the link now great just leave it to the side until we get finished with our session here all right looking at some of our positions we're going to go to the monitor tab and go to our activity and positions page we have three positions currently uh bobbing along here okay two weeks ago we did this pdd trade and we did if you were here or if you've seen the archive we did what's called a buy stop order and the buy stop order said hey don't get into this stock unless it hits particular price now as i open this up we can see our trade price here was 45.50 and so indeed the price of the stock went there i've marked it up on the charts this is something that i do just to my trades to so that i can keep track of them is i'll put a little green oval on it the day that we enter into the trade and we had seen here we had seen a double bottom on this stock double bottom is a potential reversal pattern let's zoom in maybe about like this and in that potential reversal pattern what we want to see as a trader is we want to see the stock or the market whatever it is we're looking at we want to see the stock go above kind of this midpoint level between our two low points right so here's our our bottom here here's the second one so we call it a double bottom sometimes we'll refer to the u that is a w pattern and you can think w is for winner stock's starting to go up uh however they don't always come to fruition which is why we did our order that way and said if the price of the stock gets 2x then go ahead and fill us so it filled us right here i believe that was the 29th of may so we really you know that was on what uh tuesday that tuesday uh maybe not tuesday maybe friday actually i think that was friday and then what do we have right now well we have some continuation of the pattern which is nice we have a short term uh movement here if we were drawing some price patterns out and i'll do that here i'll use this trendline if it'll cooperate with me i want to draw here well i guess it doesn't want to cooperate we'll try something else we have a flagpole which is a sharp vertical move up pop pop pop that creates our pole and then we see a consolidation this little part represents the flag and then what we'll look for as a trader is we will look for a breakout in the flag some people use that for an entry in fact we talk about this kind of an entry frequently usually we're going to see a bull flag in a bullish trend and this one very early in the stage has started to to change its trend but notice we had a high we had a slightly higher high and of course now we have a higher high than that and i would say here represents the higher low so higher high higher low now bullish flag pattern breaking out of it now if we hadn't used up an entire position on pdd somebody could say you know um i could add to my position right maybe if you only took a half a position or a third of a position initially because you weren't so sure then somebody might consider adding on to that now we're not going to do that but we did put on an initial stop loss and it's down here at about the value it looks like about 39 or so in fact i think it was let's see if that'll balloon out for us yes it doesn't want to but the question i would have for you is should we raise the stop loss the answer should be if you're thinking about it if you're doing something shorter term yeah possibly so we should move up the stop loss and what we're going to do is we're going to use the rules we would use as if we were getting in the trade fresh and the rules would say if this the stock breaks back down into the consolidation area here see what price is lower in this little flag consolidation and then go a little bit lower than it you can use a percentage you can use a dollar figure you know you could have it be a dollar or 25 cents or even a percentage but what we're going to do here is i'm going to put my mouse here at the low candle which was just yesterday and that low was 48.06 what we're going to do is we are going to use calculator here so that value is 40. i get my mouse back here 4806 and let's grab the calculator at 4806 let's go a percentage below that okay so we're going to go 48.06 times 0.99 that's going to give us a value of 47.57

we're going to move our stop loss up we're going to attempt to start locking in some gains or at least minimize the loss if all of a sudden this stock just starts to tank okay so i'm going to do the click and drag method here and i'm going to look on the far right hand side you can see that grain number changing as i'm moving our stop and i'm looking for that number of that disappeared on me i thought it would stay 47.57 47.57 ooh that's pretty close 47.59 i'll take it okay now we got in here at our price we're locking at least in a little bit of a gain and it's nice to be able to do that when your stock is moving along the way you'd like it to don't get lazy on your stops i for me personally i find that my trading goes better if i'm active at looking at the charts in active on shorter term trades as well as trend trades but moving up your stop loss to help maximize those gains or minimize the losses now next trade we're going to look at is adi adi we have 62 shares here this again was from two weeks ago and we did another buy stop order we said i don't want to get into the trade until the stock approaches and gets to 167 or higher so it looks like it did on the 27th again all right that was last friday let's go see what this stock looks like we also have an exit here looks like we put that exit price at 155.

let's go see we are on this trade we're actually up only a tiny bit but we'll take a tiny bit right it's not as generous as pdd but we are up by twenty dollars so let's take a quick look at the chart adi we didn't have been in the trade that long you can see i've marked it here and really the stop loss is down here and the question is would we want the stop loss to stay so one thing you can think about is well is there a higher support level than when we put it in to get filled in this case we were looking for the price of the stock to go higher we did that by stop order 167 we were looking for it to get quite a bit higher above this diagonal resistance line at the time we put the order in which was on the uh 19th i believe this was this is where we were on the 19th where the stock was it would look like it was breaking out of this diagonal resistance but and it didn't go high enough to get filled until this day in this particular case because the stock really hasn't gone that far we're not it's not like we're up on the trade a whole lot this stop we're going to leave in place if you wanted to increase it and you wanted to say well let me move it to just a little bit below the diagonal resistance line there that should be new support you could certainly do that all right for our purposes we're just going to leave it now i want to show you one other trade and you'll see here we don't have a cop position a position but we used to have one and so what i did is i just went in the account statement i brought up the transaction associated with this now uh this was a closing piece of a different trade not the one that we focused on in our class but we did a short uh put vertical which was bullish a lot of the oil stocks had been quite bullish we collected on that short put vertical as 72 credit and then we went in at the time that we placed it we said hey if we get a majority of those 72 cents if the price of these spread gets down to about 10 cents let's lock in our gains early and leave the party with a profit and that's pretty much what happened and so as we bring up cop i'll kind of zoom in here a little bit this was our entry day bouncing off some diagonal support and then it just went up along just like we love them to right we love it when it does this for us it doesn't do it all the time uh but in this particular case it did and then this is the day we got out in fact the stock ran up a little bit and closed a little bit lower than where it opened but that is the day that we got out of the trade we locked in our profits we don't have to wait till options expiration day in three more weeks for us to capture the majority of it all right so hopefully that gives you some ideas now one last trade because we're going to use it here for a couple of things is our ual trade we put on two bearish trades the airlines were having a little bit of a pressure they were having a hard time getting employees we had jet fuel rising and so a lot of the airline stocks were were suffering a bit so we put on two bearish traits a long put vertical and a short call vertical on the long vertical we wanted the stock to drop below 41. in our short call vertical our short leg here was 45 so we wanted the stock to stay below 45. now let's go see what really has happened i'm going to point out we're down on both of these trades okay we're down uh four or four forty well that's the total of the two here no it's not it's the sum of these two down 444 on this trade down 260 on our short vertical so let's go see what the stock's done as we jump over here to the charts and let's bring up ual there are several things going on again we got into the trade after we were starting to see lower lows lower highs and a break of some significant support now i drew lines where we wanted the stock to go so on our 45 strike we did a short call vertical here 4547 we were looking for the price of the stock to stay below there well it did for a little bit of time but more recently what's it doing yeah more recently it's looking like it's got what a higher high right this candle is higher than the previous candle and if today holds up as a higher low right if it does really have some bounce action here we say yeah this candle this low candle is higher than the previous low here so does it look like maybe the trend is changing on us i'm going to argue that i think it is you may have a totally different opinion based on your technical analysis but if that's the case uh even though we're not down that much on this short call vertical might be a time to get out on this one on our long vertical we wanted the stock to go below 41. i mean it was pretty close to that on the day we got in but it certainly hasn't performed like it at all has it so i'm going to suggest one to actually i'm going to suggest two things one we should close down both of those bearish trades to let's put on a different trade now i'm not going to confuse it by rolling okay but what i will do here we're just going to close out both of these trades so create closing order grab the top one because that grabs both legs gives us our net uh we can get a midpoint price here it looks like a 41 or so there's no use holding on to something if you really think the trend has changed or if you think oh man i was wrong i don't know what i was thinking i don't think the stock's doing what i thought it was going to do because it's a vertical we have a little bit of time to work with but because we're seeing the trend change on that stock that's the reason we're going to get out early let's get rid of this vertical as well we're not down quite as much on that one let's get back a dollar well we're going to pay a little bit extra than what we brought in as far as a credit goes i think that was what 72 cents we're going to go ahead we're going to send that off close out on that order now what might be more appropriate okay this this stock united has a lot of trading activity let me go back to the trade page here traded over 5 million shares so far today as we're looking at this option chain the june options have a lot quite a bit of open interest i added in this volume count volume column as well so we could see what was going on i'm going to suggest we're going to go out to the monthlies generally speaking if you're selling a vertical or even buying a vertical for that matter sometimes 20 to 50 days can be an ideal window sometimes people might target for 30 or 25 days going a little bit below that sometimes circumstances are that sometimes these weeklies don't have as much open interest like this one here the july 8 expiration there's not a whole lot going on here if we were going to do use some long calls or even on the put side there's a little bit more open interest here but not a ton so we're going to use for our purposes today we're going to use the monthly expirations because yeah that's the kind of open interest we want to see if we can see three digit numbers great if we see four digit numbers even better right we want a lot of option contracts to be trading because then the difference between our bid ask spread is smaller and we can see here that these are trading in penny increments right they're not all of them aren't in nickel or dime increments which is really nice for a trader what kind of friend would you say united really has right now would anybody agree with me that maybe it's kind of in a sideways pattern and maybe what we could do is we could sell two verticals a short call vertical a short put vertical creating what we call an iron condor so let's re-look at this and i am going to remove the strike prices here that really were not successful we're done with the trade we're gonna put in if i stole the wrong one or not stole it i clicked on the wrong one let's remove it all right that's cleaned up our chart here a little bit and if we wanted we could even say let's activate the oval and i'm going to drag it over to here okay that'll represent our entry point now as we come back to the trade tab and look at these july options what kind of a delta would a short trader like to sell would they like the delta to be higher they'd like the delta to be lower okay if you know the answer to this question pat yourself on the back in a high probability trade if you're trying to create that selling a lower delta is is what traders typically might go for and in our case you know if we're just selling a vertical we might look between say a 0.4 delta to a high 0.2 delta if we're going to be selling two spreads that gives us the idea that maybe we could pull back a little bit more because we have two spreads to help us get the return we're looking for so here uh we've got a 5250 and a 55.

now i recognize up here we have single dollar increments and if we're going to do a put spread as well it's gonna be uneven okay that's okay we can deal with that let's go here with this uh 5250 strike price lots of open interest lots of open interest and then let's buy the 55. now what i'm going to do is we're going to build this trade as we go so i'm going to hold down my command key on my on my keyboard i'm going to start at the 5250 i'm going to click on the bid price because that's what we receive let's get that out of the way and we are going to select on the ask price all right it's built that first vertical for us and i kind of put it out of the way here let's go see if we see something similar similar delta right this was a 24 delta do we have a 24 delta over here uh maybe on the put side it looks like we have a 25 and a 22. now either one of these actually could be just fine with we could use but remember we want to spread out about the same amount as what we have on the call site this was two and a half dollars this we can only make it be two dollars and in that case that's okay we're just are going to know that our iron condor is a little bit lopsided okay we're going to be aware of that a strike price here that we might want to do uh let's do the 41 and let's buy the 39. okay again i'm going to hold down my control key i'm going to the strike price we want the 41. i'm going to click on the bid price here and then we're going to click on the ask price two strikes away click on that again and now it's built our iron condor for us there's a lot of ways that you can build this and put it in sometimes i don't even do it this way but sometimes it is helpful to just walk you through the keystrokes if you're trying to build something okay 86 credit what would be our max gain in this scenario it would basically be 86 times how many contracts we do okay uh in this case what's our max loss well typically we take the difference between the two strike prices and subtract the credit well in our case our strike prices aren't even are they we've got a two dollar strike and we have a two and a half dollar strike so it's going to be a little bit different we need to pick the one that gives us the most uh risk which one exposes us the most which one is that is it the two dollar wide spread or is it two and a half dollar widespread what do you think think through it do you want to chat in your answer too i'm always happy to see those answers come in but if we were to grab our little calculator here let's clear it out we could say all right what's 86 cents minus a two dollar spread so if we have two minus 0.86 that gives us a max potential loss of a buck 14.

okay that's on our uh two dollar spread what if it's the two and a half dollars spread do we have less risk or do we have more risk okay so let's take our 2.5 minus our well we'll still use 86 cents okay a buck 64. so which one truly has more risk yeah isabelle got it right charles you got it right helena perfect yeah the two and a half dollar spread has a little bit more risk okay something you want to know something you want to uh take note of because if everything in the world went wrong on this trade yeah that's what our max loss would be and we want a position size to our max loss so in our class and i'll show you over here we typically have we base our decision on 150 000 portfolio times a half a percent which means we don't want to risk more than 750 dollars per trade so as we position size this we're going to say 750 divided by 164 says we could do four contracts here okay don't round up if there if rounding needs to happen round down so you're not exceeding your risk tolerance so we're going to do that here we'll do four contracts we're going to see how this one goes for us we're going to have how many days in the trade about 43 so it's going to be a trade of patience and the idea here is we're going to watch actually the verticals separately because if we can close out of one side and get a majority of the gain great and sometimes that's how people wind out of iron condor trades is by doing it a leg at a time now i want you to keep track here 5250 and 41 all right so 41 is pretty close here to where we actually we actually had that initially didn't we and i got rid of it oh okay uh it's 41 i'll go change that and then what was our other number we wanted to stay beyond so 5250 would like the stock to stay below 52.50 let's draw our other line where in

the heck is that 52 oh we're so close 5253 we would like the stock to bounce around through here okay and again if it does that for us and it's already kind of already in that kind of sideways trend this gives us a lot more leeway than what we had on here before right because up here we had like 45 and then we had our 41 it wasn't dropping below 41. all right from where our entry point was so we're going to follow this through and keep tabs on it and talk about managing this particular trade we're going to hit confirm and send we're going to send it to our stocks and options trading bucket and have the trade be there all right next one okay that particular trade the exiting out and the entering in is based on a trend reversal right right now this is in a sideways trend now let's look at another stock here um i think we've really looked at a lot of oil and energy stocks because it has been the dominant sector that's proved beneficial we're going to look at some other types of stocks here today this stock bumble it's not a tuna fish company but it is in the communication services group it is an online dating company okay i think they probably have an app i probably shouldn't say that because i didn't go look to see if they had an app it's an online dating company we'll leave it at that what's happening to it right now wow look at this it's had some stiff resistance they're about 30 and today it looks like it's kind of going through it now in a more ideal world we would love this volume to be up here and be a little bit above average we don't see that that would make the breakout more uh evident okay but in this case it does like look like we started seeing the higher highs and the higher lows okay we had our low point down here stock ran up to about there and then it created what bears are higher low and then as of today we've got our higher height so again it's reversing the trend now some people might feel more comfortable if they see more price action manifesting that meaning maybe they want to see two higher highs and two higher lows before they feel comfortable that the trend has changed in the case that we're making here today we're going to try to get in early when we think there's enough evidence of that in this case a higher high higher low and a break of resistance is going to determine that now when we look at let me back up here when we look at where maybe a target could be or should be there's a couple things we can consider so as i go back a little bit let's see where old resistance was and so it looks like maybe we had some old resistance kind of in this area and i'm going to draw that all the way across so it looks like that's about what 35 maybe even 36 okay so we're going to put a target on this particular trade of going to 36. and is that a decent enough move that's about in the neighborhood of six dollars yeah six dollars on a 31 dollar stock that's a decent sized move isn't it if you wanted to say hey i want to hold it on even a little bit longer than that and still do a targeted trade let's go to a one year time frame and in the one year time frame where maybe was that resistance i mean we can go clear up here to 61 but there's going to be a lot between where the stock is now in 61 because that would be doubling its price essentially right or pretty close to that and so we might say well where are the other old resistance or old support areas and we might look here i'm going to zoom in here a little bit tighter maybe a little bit above the first target we selected we might have another area and i'm going to put it down here where i see at least a couple of areas touch it tried to run up got rejected ran up again got rejected and so yeah we could maybe have if somebody wanted to be a little bit more aggressive they might say okay i'm going to put a target near that 38.83 okay you obviously have the choice you could also say that you maybe you sell half your shares at one price and have your shares at a different price right just giving you some ideas of things you could do and none of them are right or wrong as it is so much hey you have the opportunity to choose but for our purposes we're going to get into the trade right now our target's going to be at 35.90 where should we put a stop

right you always want to make sure you have an idea of when should you get out now some people might say well where was old support here and maybe there could be some support maybe in this area about 25 and some change because we had some nice support here now it looked like it was resistance here so i'm going to try to match that line as close as i can and so maybe we say let's give it that wiggle room below maybe what was previous support okay let's grab our calen our calculator again here and let me put it in a spot that's out of the way so you can see the chart so let's go for our stop let's go three percent below 25.35 so 25.35 times let's go 0.97 to go three percent below there gives us a value of 2458 okay we're going to put that in that is going to be our stop and then of course our target we're going to put it up here instead of maybe going for the absolute highest point there let's let's pull back a little bit what if we were to say 35 70 okay a little bit lower so 3570 would be our target and we're going to say for our purposes of this class this paper trade and example trade we're just going to have the one target again you can use multiple targets if you wanted to so back to the trade tab we go we've got our bumble let's go ahead and do this we're going to do a right mouse click this one's going to be a stock trade we're going to say buy custom with the 1 cancels other bracket which means hey this first one if we use that as our target of 3570 great we get out of the trade we're going to make this good till cancel we're going to make this good till cancelled and then down here the second exit order p quarter that's going to be where our stop loss is going to go we said for that 2458 would be our stop there now let's figure out how many shares we can buy always make sure you run through the position sizing hopefully you're getting really good at it hopefully it's becoming second nature to you because ideally that's what we want to see right and so if we were to say here entry price is 31.46 minus our stop

of 2458 tells us we've got some risk about 688 now that is it is a bigger amount of risk but that's because maybe we don't want to use old resistance as what we think it will become new support so we are being a little bit more conservative with that trade which means we're not going to be able to buy as many shares we're good with that okay so let me put in our 688 here let's see how many shares we can buy if we close things out we don't want to risk more than 750 on our account we'll divide that by 688 we can do 109 shares okay so somebody if they wanted they could just go with that hundred but i'm going to change this to 109 and i'm going to click on this link and it'll make both the cell quantities the same right make these good till cancel we don't know if and when they would execute so we don't want to set that up every day so the good tell cancel will cover us for about six months and we'll see here just make sure as you double check that you've got things in the right order okay your targets and one thing that's nice here is when we did a first triggers oco it automatically put this in as a stop order type versus a limit so if it gets down to 24.58 it's going to trigger a market order market order says get out of the next available price the price might not be 24.48 that we get fill that but the intent is that we should get filled pretty close to that all right we got filled on it right away those of you that are option traders i might consider doing an option trade here i do want you to notice it has pretty decent open interest in this july contract okay if you wanted to pursue that very good now i think we've been able to keep up the up on the questions pretty good here barb's been helping me out which i appreciate i do want to remind you that there is a survey out in the chat and if you'll go ahead now because we're going to wrap things up go ahead and click on that link fill out the survey somebody already did it really quickly already it was vj vijay's always really good about giving us feedback as coaches and we appreciate that for all of you that do that for us so i'll just encourage you to fill that out and if there's anything you want to communicate to me use those fields to be able to do so all right what would i want you to do what would i want you to take away i want you to do the same things with the stocks that are either on your watch list or in your portfolio okay with those look and see does it look like we have any reversal patterns do we have some double bottoms is the stock making higher high and higher lows without a reversal pattern in it okay that's what i want your brain to be thinking about and make sure the type of trade you have on is consistent with what you think the trend of the stock is doing right now okay so that is going to be your homework assignment so to speak all right i do want to point out a couple of things here if you're a newer trader we've got a lot of events for new traders and investors if you're new on the thinkorswim platform go tonight 5 p.m eastern time ken rose is going to be doing getting started with thinkorswim ken does a fantastic job with that class now barb will teach this class in a couple of hours portfolio management basics she does a super class in there as well that you might decide hey today's a good day for me to join so let's have you do that now as we wrap up i just need to remind you that what we talked about today was for educational and informational purposes only it wasn't intended to be investment advice or a recommendation of any security or strategy i thank all of you for being here with us today and barb i appreciate you helping out in the chat she always does such a super job so you guys coming up next is going to be james boyd he'll be doing trading the trend so he would love to see at the top of the hour thanks everyone bye [Music] you

2022-06-04 11:00

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