Trade Management of Swing Trades | Connie Hill | 9-3-19 | Technically Speaking
And. Options. I'm Connie Hill I'm happy to have you here I wouldn't. Ask it if you find yourself in this scenario sometimes. Where you're in the middle of a trade we've been focusing on some sort to embarrass trades but, you're not exactly sure how to manage, the position, we're. Gonna wrap up on that today as far as swing trading where you spend a little bit of time on it that's gonna be our focus we're. Going to spend the whole class on it because it is something that is so important. Options. Are not suitable for all investors as. The special risks inherent option. Trading may. Expose investors, to potentially. Wrap it in substantial, losses. Spread. Straddles, and other multi light option strategies, can Intel substantial, transaction, costs, including. Multiple commissions which may impact, any potential, return. In. Order to demonstrate functionality. The platform, we need to use actual symbols, however TD Ameritrade does not make recommendations. Or determine, suitability of, any. Security, of strategy, for individual, traders any, investment, decision you make in your self-directed. Self-directed. Account is solely. Your, responsibility, we're. Gonna talk a little bit about stops, today so in stock market order will not guarantee an, execution. At, or near the activation, price once. Activated, the order competes with other incoming. Market orders, past. Performance, of any security or strategies, is not guarantee, future results or, success. Trades. Involving. Minimal potential benefit can also be significantly. Impacted, by transaction, costs, very. Good. Now. As we go along here today, this afternoon I appreciate, the greetings, from you guys, to. Each other and to me but, as you have questions, go ahead and chat those in, okay, I'm gonna try to keep my eye on, the. Chat box and remember you can only chat in if. You have logged into your gmail account if, you've logged into Gmail that's. How you can participate if, you're somebody that's feeling like I don't get a chat in that's.
What The difference is so if, you wanted to get just get a gmail account you don't have to use it as your email. Your primary email at all. Right that's how that works so. Good afternoon Michelle. Bruce, Tom, and Diane as, well, as everyone, else out there. There's. Just a little bit of information about me probably, one of the most enjoyable things I've done as being an education, coach here at TD. Ameritrade since, 2004. And trained it in, part to use some of the things that I've learned along the way that hopefully, will make your life easier. Now. We. Are going today to focus. On just a couple of ideas. And. We're trying to get and try to go a little bit deep with them we're going to talk about your initial, exit orders we're. Gonna talk about that trade management, that sometimes can be tricky but. It's what we do on a day to day basis, and. We're going to because. We haven't done this for a long time talk, about appropriate. Risk, and position sizing sometimes. In our class I'll just say we're just going to do one contract, we're not going to worry about position, sizing it but. Today we're gonna get into it all right. We've, been focusing more so on some swing bearish trades and so that's how we're going to focus here. As well so. Initially. And I'm gonna skip through a couple of these. We. Want we've. We've talked about our. Setups, and what we want to see before we get into the trade and then as we get, into the trades so the setups what we want to see before it and. The actual, pulling. Of the trigger is, what is our signal, to let us know it's, time to go now. As we get down here let me just go through these animations. Here on the. PowerPoint. We, identify. Here for example where. This the, the. Price of the stock goes before, it hits some support, how, it rallies, up here to some resistance, and then. Once, it hasn't closed below the lower of the high day which. Is this little candle, here, then. That's what we're looking for it to drop now. The initial. Stop-loss. Here. Is. Going, to be right. Above the high candle. Day, now. Some people might go, 20. Cents above it some people might go a percentage. Above it, we're. Gonna say just above. It and then you can make your own rules. As far as that goes however. Far above it you would like to go and so we just say southern national initial, exit signal, above.
The High of the high day. Alright. That's. The initial exit. Signal now as the trade progresses. Which, we expect, that it will we're. Going to adjust that order, that. Stop-loss. Order to help us lock in gains and. To, help take some risk off the table so, with, swing and Bear Flag targets. We. Want to, adjust the. Exit, order and. So what you might consider is if the stock, has made its a half way down to its target that. Might be a good time to, adjust. Your stop-loss reduce. Some rascal lock-in some profits, one, of the things we're gonna look at today is a couple of our trades and what they did over the last week since, we were last, together, and. We're gonna see that. That's. Exactly, what one of them did we adjusted. The we, ratcheted. Up our stop-loss put it on a little bit tighter so that we could at least gain, some profits, in that trade or minimize, any risk that was there so. You want to consider doing that on. The. Risk management piece. Whether this is a swing trade or a short, vertical type of an order what, you want to talk about or think about is would. You be willing to, risk, our. Example, here is $3.00, in order. To get that last little token. Of, credit. Or last, little it, doesn't even have to be credible, that. Last 50 cents or maybe that target. Was it initially. Except for is it, worth it. To really push, on in the trade for, just a little bit to gain all. Right and that's, why we say consider. Maintaining. A 1 to 1 ratio which, is okay if I can gain a dollar. Maybe, I'm willing to risk a dollar, but. Risking. Three dollars just to make up the last little bit of it might not be the wisest idea so you have to weigh that out and, then. On directional, trades which we do have one of those we're going to look at after. Five to seven days consider. Adjusting the, stop loss or, even, exiting. So, that you don't run into time to Kate issues, remember. On long. Calls and long puts that fatal works against, you time. Value starts to decay and so. Sometimes. It's not beneficial. To continue. To push the trade, on even. Longer than what you expected so, after, five to seven, days consider. Adjusting that stop so that you don't render though but, into those time decay issues. There. We go, now. The bulk, of where we're gonna spend our time today is talking about appropriate. Position. Sizing and, taking, on the appropriate, amount of risk I have to tell you when I first started trading. This. Was probably one of the least understood things. For. Me, meaning. Nobody. Really talked to me about it I was studying themself you know this this information on my own with my sister but. Nobody really talked about you know what's an acceptable, position of risk and so. Therefore when I started, trading I had. No position, to help me I I didn't, have anything to go off of because. I haven't haven't learned that yet now, you might be in a similar position where, maybe, you're. Just starting to to, hear. Some information on, this maybe you've, been focusing, on other things first, and now, it's time to say hey let's manage our risk do. You want to read an interesting, book there's a book, by Jack Swagger and it's. Called. The. Market, wizards interviews with market Wizards and what he did was interviewed several. Prominent. Traders, that was their livelihood in their business and none. Of them gave away their secret sauces to what their. System. Was per se but. What they have, seeing a lot of them what they said is the most important. Thing regardless, of the system whether, you're a long-term investor a short-term, trader is you, have to manage your risk in order, to stay in the game, all. Right so what we're going to talk about using our examples, here today is, we. Are going to say we have a hundred thousand, dollar portfolio, and we. Are willing to risk, 1/2. Of a percent, now. Is, a half to small, might. Be appropriate, for some of you if, you, have a really, small account. That. You're starting out with that you're trying to build you may need to, wiggle around these rules a little bit to, fit your situation. Could. It be more than a half a percent yeah it could be 1% or 2%, but. It's got to be something that you feel like if I hit, this max, loss and lost. Whatever that percent is today we're gonna use 1/2 a percent if, I lost a half a percent, in, three. Trades in a row and five trades in a row would would. I be blowing up my account, or would. I be able to sleep at night. Okay. And, just kind of go through that process with yourself, so. How do you go through this process. So we're going to talk about your. Your. Risk. Per position, that you put on here so for an example. Suppose. You, were getting into the price or getting into a stock and it was $50, and you, decided your stop-loss.
Was, Gonna trigger at 48 we're. Just pulling some generic numbers down okay that. Would mean the trade. Risk. Per share of stock would be $2, the, entry price minus, where the stop-loss, would. Get triggered, now, it's hard to know exactly where you would get filled on that so typically we'll just go with wherever, the stop-loss is triggered even, though maybe it's going to be a little bit. You. Know maybe the number runs to 47. 90. Okay. Before you actually get filled. All. Right so. We have our portfolio, risk, is this first one. And then, our. Position. Risk, is this. Second little formula. All, right you use those in conjunction with each other you, will determine how many shares, you could, by giving. Your risk tolerance and given where you think that. The resistance, is going to go okay. Let's go look at some examples. Of this. Let's. Come over here to. Thinkorswim. And. You. Guys probably know what the markets have been doing you've been being paying, attention just as much as I have, you. Know the S&P peaked, out there at over, 3,000. And then. Hit we have this drop-off but. Look at the book what the SPX, is done in the meantime that. Just look like it's stuck in a trading range, yeah. Kind, of is stuck in a trading range and every, time at least so far that it goes up to this resistance, area what's happened, let's, drop back down could. This if we were seeing stocks, do that as well could, that possibly be a good entry, point, okay. The answer is yeah it could be a good entry point, for. Something bearish, bouncing, off resistance, and if. Something was stuck side raises and you wanted to follow it as a bounce off support, obviously. You could maybe do a trade, that, was more bullish with the idea that the targets going to be up there by resistance. All. Right let's, do this. Let's. Look at, one. Of our trades from a couple of weeks ago. IBM. And. Let's back this out a little bit. IBM. We, did a couple of weeks ago in our class. We.
Had The. Stock making some peaks and some pullbacks Peaks and pullbacks. Finally. Kind of caps out here at 152. Dollars. Gets. Involved in the hard pullback and it. Does not, return. To, an uptrend. Instead. It forms, a low part here. It. Rallies. A little bit so we've got a little bit of a a. Bear flag going, on here, and then. On, this, day, that. Red candle. It had, a pullback and on that particular pullback. We. Were able to get in on the entry, for our class we had a closeable of the low of the high date what did we do here exactly. We. Had, we're. Gonna go over here to. You. Know the monitor, tab we're gonna come to the account statement, remember, the account statement is where you can go look up history. What, happened, what were the prices, primarily. We are going to let's, change this from all accounts to our trading, stocks and options account, and. We're. Gonna come over here, we. See our order, history we. See our trade, history, and we. See here we got in on the 21st, we bought a long put a 135, that was due. To expire October. 18th. It. Cost us 495. To get into that long put and, at, the time that we got into the trade we, did have. A. Point. Which we wanted we, set up as our initial exit, that was just a little bit above, the high of, that. High candle, day. Now. If we come over here and we see this. Bigger. Section, that's open is our order history, remember. Order history tracks every. Single, order you've placed, and in this case I'm, saying on, IBM, in the last 90. Days, now. We really didn't have to go back 90 days to see this but, that's. What it was set up. Alright, so we have. Let's. Move this little guy away. Let's. Move it over a little bit. And. Move him, away. So. Here, we have the. Price of the stock for. 95 that we purchased, and then, we have 5 dollars and, 10 cents, that. We got filled, on the, 29th. Of August. That was just at the end of last, now. Was it a huge gainer no. It, was not a huge gainer it, was all of 15 cents, it was a no Co order, we adjusted, the stop on it and what happened, it, kicked, the. Stop-loss, fact. Right here if we look the, this column, that shows the status this. Is the one that was filled. Ok. Initially. Let's see and then our second, one is right, here, when. It triggered, that market, order on the, 27th. Of August now, did we get our desired price. Well. We did it based on conditions. And the. Condition, here was if, the price of the stock went to 1 34, 36. Get. Us out of the trade and that's the value we changed, it to last week to help lock in some profits, in fact I think we took off, about. $2. Or so of risk off the table when. We set that up. All. Right so being active, with it helped. Us. At. Least get out of the trade with summit some, a, little, bit of profit now. Let's go look at what the chart looks like now so this, purple, is the day that, we exited, the trade based. On what we had changed, it to on. Well. I guess this day the 21st. All. Right one. So. This was Friday Thursday. Wednesday. Tuesday. This. Is where we were last, week in our class and. We said if it goes up past, this. High point here let's get us out of the trade and that's what it did now. We still, could be in the trade it had somebody not wanted, to have been so active with it but, with a short-term swing trades you really want to be able to lock in your profits, as. Soon as you can or not let the trap the trade, drag on. Jose. Is. Mentioning. That there are some buffering, issues Bruce, agrees, with him that there are some buffering, issues I. Apologize. For, that hopefully, that will. Work. Its way out quickly, and, if, it does and you're hearing me say that's go ahead and feel free to let me know that it's fixed okay, Jose, and Bruce.
Alright. Let's look at our trade our, trade, our primary, trade from last week. That, particular one was Tesla. Who. Does not know about Tesla. Maybe. Some of you have a Tesla car. They're. Becoming more and more. More. And more I. Mean, I don't know if the prominence, the right word but I'm seeing them a lot more on the road than. I ever, had before just, as, they're gaining in popularity. Now. Tesla. Let's. Move this out of the way. There. We go. Tesla. Had been downward, trending, for a while haven't it right. It would have a peak, hit. The 30 day moving average, drop. A little bit lower after. Forming. A peak and each of those Peaks you could see we're getting lower, and lower and so are the lows the lowest were getting lower and lower performing. That downtrend. Now. They. Bottomed out here, 176. And then look like they are starting to recover right, and they. Get clear up to here until, what happened. Dang. That earnings. Their. Earnings, whatever. They said was not positive right, so, it forces, them back into, a downtrend, again Lord, Peaks lower. Bottoms. And this, is where we kind of pick up on the trade, from. Our perspective, when we were looking at it last week so last week. We. Saw it pulling, back this was our date of entry where the green oval is and, sure. Enough two. Days later it hit, our, stop-loss. I've kind of made that oval, purple, that's our exiting, oval. And it. Didn't continue, to drop now that particular trade, when we got in and when I was looking at it was, a bearish, engulfing candle. Earlier in the day and then by the time we got to class it didn't, look quite as ideal now. This particular one, is a short, call vertical. All. Right do, use everybody, have to do a short call vertical no, you. Absolutely don't, have to. Now. On this one we, were not in the trade all that one let's come back here to the monitor tab. Let's. Bring up our Tesla, which it did. If. You recall in, class. When. I place this trade those of you who are here I. Made. A mistake yes. I can make mistakes, on occasion, just probably like everybody, else all. Right and what, I forgot to do is change our order, to, a stop, order so that's why we've got these ones, here there are quick ends and quick outs at, the very same second, okay, we got filled on it and, then. We're we, were out of the trade so. We did it one other time one. More time this time it. Was a 117. Credit that we bought it brought into the account now. On managing. This position, of again, we put on a. Target. And a stop this. Time based on the price of the option and, not based on the price of the stock okay. You can do it either way, so. It shows to, go ahead and say okay we've got 117.
Credit, It's. A $5, wide spread, and, so. We knew what our max gain was, which. Is our 117. We knew it our max loss was which is 5 minus. 117. Okay. We, loosely, position, sized on this. Ultimately. It. Hit that stop-loss, two days later on our stop, loss we said if the value, of that spread gets to. Let's. See what the order was here, it gets to. 1. 180. And, it goes higher than the price of the spread that's. When you're in trouble on a bearish trait so, if the price of that spread gets higher so we had put on a no CEO that says okay if it hits 180, stop. Me out, hopefully. It would hit the target, which, was about 80% of the max gain and 23, cents if it hits that first rate choose. That one and get us out of the the. Stop-loss. Site, well. In our particular case it turned out that. The. O Co order, the. Part that would lock in credits, or profits. Rather is the, one that got cancelled, the one that got filled, was. Our stop loss okay. That what's up for 180 and. What I want you to notice here. Is. What. I want you to notice, is. Down, here. That's. Our trade history, that's. The stop that was filled that, buck eighty it actually transacted. At the same price, that, we. Put it out. Here. Initially. Now does that always happen. It. Doesn't, okay. Many. Times it'll be a totally. I mean it'll be close to a dollar eighty or whatever your stop-loss has been set to but. It doesn't always necessarily. Fill. You at that price it just happened, to in this case now. Let's look at a couple of new trades and let's make sure we do our position. Sizing thoroughly. With, these okay because. When we're done today I want you to have some exposure like we've just done as far as. Managing. Some of these trades how, to do it and then. Also putting, in, your. Your. Do, your position, sizing formula. On all. The trades that you start doing so that you feel like yeah I'm taking on risk that I can live with and I'm, not taking on risk that it's gonna blow my account up. All. Right let's take a look at this one Mariette. Mariette. It's, been trending, along here pretty nicely and. What. Did it do for. Marriott. Of. Course. Here's their their. Their. Earnings, they. Were going along pretty good until they hit that earnings, and that's, when things started to drop on them now, those, of you that are familiar with price patterns, and this is a technically, speaking so I, feel, happy about bringing price, patterns, into it what, have we got here. Yeah. We have. Some. Diagonal, resistance. That's heading lower and lower and then, we had some support about, 125. Well. If you're familiar, with, what kind of a triangle that might be it's a descending, triangle, and on a descending, triangle, the primary, entry point is when it breaks down. Through. The support level that. Is the date of entry now, we've talked in the past about caching. Trays. That are bouncing off resistance, and then dropping, right. And using that as your entry a closed below the low of the high day this. Is another entry. That you could use a break. Of support. All, right now. Let's. Open up here. The. Our, little sidebar, here. Guys. Probably know this is more of an intermediate class. But, there's sometimes this. Topic. Is new to some people, okay, so Marriott. We. Have an entry, here let's zoom in on that. I. Assumed. In probably, too soon when. We're trying to decide what a target. Could be for a stock, when. It's, in a descending, triangle. Essentially. What we do is we measure the heights of the pattern. So. I'm going to measure the height of the pattern, from, there down to there and that scene it's about eight point eight seven dollars, so almost. A nine dollar move you wanted to be more conservative you could be we're. Gonna duplicate, that drawing and, I'm gonna move it right. Smack, here. To. Where the stock broke out now. We can see visually hey, there's a potential. Target doesn't, mean it's going to hit it for sure a potential. Target down, to one, 1569. So. One. 1569, from, 123, so we're looking at it still about a an eight. Nine dollar drop, from. The. Point it's already lost about two dollars and 20 cents today, all. Right it's, not a pretty decent target yeah that's a pretty decent target, as opposed. To a couple of dollars all, right this is a pretty tall triangle. Now. Let's. Do this I'm looking, at Paul's note here he said the sound track doesn't match the presentation. So. Either I'm ahead or.
I'm. Behind and, my guess is I'm gonna be behind and, not. Sure why it's doing that but I'm gonna report, all, the issues that we've seen come through okay. Now. We. Could if we wanted, to we could do, a long. Put here, somebody. Could also justify, doing a short call vertical, somebody. Also could say I don't really use options, yet so I'm going to short the stock. Don't get into talking about shorting stock too much because it's fairly, risky you. Have to put some controls in place, in. Order to even do your position, sizing but for our purposes, here we're just going to go with a long put alright so let's go to our trade tab I'm. Going to use this over here because we're gonna need our calculator. And. Running, out of the trade tab. We're. Gonna collapse the September, options you see Mary it has some weekly options so they're fairly liquid but, we're going to use these options that expire, October. 18th. Now. I've got my open interest column sitting, here so we can see which ones have some, liquidity, right. Because you do not want to be the big fish and a little seat you, want to be a little, fish in a big sea of contracts, and so. As we look at this we've got, 5,000. Here just slightly out of the money our. First one in the money is 865. Which isn't that bad. The. Next one up the 130, is a little, bit more on the money it would be a little bit more conservative, okay. Or, there's, quite a bit of open. Interest here so, if neither, one of these is right neither one of them is wrong it's more if you want it to be more aggressive do you want it to be more conservative where, do we go the more conservative route, earlier. Today there was a 20, cent spread, here it's it's, widened, to about a 30 cent spread. So. Let's do this we're going to. Buy. Custom. We're gonna do a no Co bracket, on it we're gonna put these controls, in place from, the get-go, now. Let's. Collapse, this just a little bit we. Need to use our feel price, calculator. To, calculate a couple of things for us let. Me get my, my. Trusty. Work. Worksheet. Here or, notepad it's, really what it is, if. We think the stock is going to drop in let's say we're going to be conservative and say nine, dollars rather than nine and a half dollars, right. And I believe, that's what it was. 220, well 124. Down. To. 115. Let's. Go $8 it's like nine and eight. And a half dollars let's go $8, let's. Suppose. That the price of the stock really will drop. Eight. Bucks in the. Period of time that. We're. Looking at here all. Right well if we were to come over here to our feel price calculator. You, have to have Theo Price selected. As one of the columns typically, you'll have to do that with a custom, column, which. Is fine we're just gonna reset this to make sure and let's. Say the price of the dress stock dropped, we said eight dollars, to. That 115, range you could add some more cents in there if you wanted to. Let's. Adjust the date how soon could. It drop there well. It could, drop, well. Stocks drop a lot more quickly than they go up but we, don't want to be too, optimistic about, it what if we were to say you. Know maybe it takes it, this. States here where the triangle, starts is August. 5th and, today's. The septum, September, 3rd we might want to plan at least a month that. It might take it to drop to that point. This. You know as we look at the activity, here we see it going up and down and up and down it's not just a straight shot down, okay. So. Let's. Do this let's put, our target, here, on. This, one. We're. Gonna add 8 or subtract, 8 dollars from it on our Theo price calculator. Let's. Change the date here, too let's. Go the, 24th. Of September. All. Right. Volatility. Adjustments. We could adjust for the volatility, if we had a clear, determination where, we thought it was going to go if we, thought it was going up or down we. Could adjust that here if you really don't know like there's not a big announcement coming up or earnings might, as well just leave it alone and not put anything in there so. We'll leave it alone now.
As I do that I'm just gonna click off and we're, going to look in the Theo price, calculator. Here, so. This option that we're looking to the 130 what. Six. Seven, sixty by seven, ninety would, get. Possibly. This is always a possibly, in the range to about fourteen, dollars, okay. For, the price of that option let's. Go ahead and put in 14, on our Oh, Co order. Here. So. This, first one is intended, to be your target, we're. Going to do it based on the price of that put. Now. What, about this, stop-loss. Right. If the stop-loss. And. Realistically. If you were trading price patterns, if, the price of the stock went, back and closed inside and, above this what. Should now be resistance, for it you, would get out of the trade so. Let's do this let's suppose. My. Mouse is about right here if it were there at 125, eighty-nine it would have been closing, above, that now. Resistance. Level that. Is about two, dollars away, from where the price of the stock is right now okay, so let's do the same thing let's. Come back to the trade tab let's. Bring up our. Let's. Bring up our field price, calculator. Here I'm, going to go ahead and select on, it. Here. Instead, we're gonna say the price of the stock goes up two. Dollars okay, so plus two dollars. Many. Times, when stocks. Go. The opposite way they break back into that triangle for, example usually, it doesn't take as long as it takes for it to meet its target so we're gonna be do the date, here a little bit different I'm, gonna go with the week, alright, instead, of two weeks so. If the price of the stock going up to. Roughly, 126. By. September, 10th and then. We'll see what, the Theo price value, is based, on that so. This. Is saying, okay in the neighborhood, this is not set in stone but the price of this option should be in the neighborhood, of about. 612. Okay. So, we're going to go put that value, in on the stops we're going to make that six ten. All. Right usually. The. Bottom. One when, you do in Osseo order is set up to be the stop-loss and, remember. It's always going to take a couple of lines, to do that if, it gets down to 6 10 it'll trigger a market order market. Order says yet. Just, fill me the next available price. All. Right contracts. This is where we need to focus right, now. We know, how much risk were willing to take in the trade we're, willing to take in the trade a difference, of 790, and 610. Right. So 790, minus 6 10 is gonna give us in the neighborhood of a buck 80, so. A buck, 80. Of. Risk. On this trade, giving. These assumptions, and we don't know that any of them will come to pass exactly. All. Right but we're gonna suppose, we. Have a hundred thousand dollar portfolio, we're willing to risk a half a percent, which means five hundred dollars on any. Trade. So. We'd say five hundred dollars. Divided. Essentially, by our hundred, and eighty here, so. Let's go five hundred, divided. By. 180. Of. Risk will. Tell us, you. Can do 2.7, contracts, but, more, likely than not you're just gonna stick with the two right, it's hard to do 0.77. Of a contract. So. We're gonna put this. -. You. Get that - -. Yeah. That's it - there we go all. Right so we've determined just. Based on that little formula, how, many contracts, we could do if your, risk tolerance would say one percent you could probably do four contracts. All. Right maybe. Five, might, even get into five contracts, okay. We're gonna make both of these good - cancelled, we. Don't know how long and they'll be, sitting out there till they get acknowledged. And triggered and. Remember it's going to trigger a market order to get out of the next available price. We're. Gonna hit confirm, and send review. It just make sure it says what you think it says, that'll. Help you. Times you catch your errors when you're reviewing this chiller to get a notice transaction, fees things. Look good hits and now, we should get spilled, on this immediately, and we do. All. Right. Now. We. Spend a little bit more time on the. Management, of the trade kind. Of reviewing, what happened in our class trades sometimes that's really valuable to. Go back and look and say okay well we put this trade in what happened, to it. The, last two trades have hit our stop loss so, we want to make sure that. We can live with that loss right. Though we put, actually. The last two one was just a tiny gainer the, other one was a small loss but you want to make sure that you're right you feel comfortable that, if that happened, you can hit that max loss over a series, that you'd. Still be able to sleep at night and feel good about, what's. Going on and that you manage the risk and you're moving on to the next trade alright, because that's really, what. It means now. Specific. To strategies. There's some classes, that you might want, to take advantage of I'm going to go to education. And. Let. Me bring up here. Our webcast page. It's.
Actually, Up at disappear, so we'll grab it again. You're. Probably familiar with coming, in here to the upcoming webcast, right we're right here technically, speaking next, up is going to be Cameron, mate with. The, trader talk Q&A, session, it's, about a 45-minute session, where you can answer or, ask any question, that is. Coming to your mind whether it's platform, related. And a strategy related, this, is the place to go if, you're somebody that's more working, with stocks. At this point as opposed to options, there's another Q&A, session, I believe, that's Wednesday. Afternoons. Actually Thursday, afternoons, at. Five, o'clock Eastern Brent, Morris leads that discussion. But. It's a place for you to get your questions, answered. There. Was a question here from Paul Paul, said can the sell order to, the downside, be a stop, limit Paul the answer is yes it, absolutely can, be a stop limit rumor. Stop limit, is. More limiting, though because it has to the. Price of the stock has to land on that price and you're, also saying you want to get filled on that price so, if the stock is moving quickly, one direction, or the other you. Might not give you might not have that protection, that you thought you would have, okay. And so, that's one thing to be aware of when you use the stop limit it doesn't mean you can't use it but you absolutely can, just, understand, what the limitations are make sure it's appropriate for you okay. Paul good question appreciate, you asking. Now. In terms of other classes, that might, be helpful. Adding. On to the things we discussed today well. You do know that, from. This time period. We. Have. And. I. Kind, of wrote, over it accidentally. Over here, we. Have technically, speaking all week long. Right. Where there's some sort of technical, aspect, that, we teach you about, James. Boyd's going to be tomorrow at the same time a technical. Analysis, and options, that's, going to go along with our class here today he'll. Do one on Thursday as well. Trading. The trend which is weeks to months as opposed, to the shorter term trades if you, really want to learn about swing trading a great, class, would. Be to come to John McNichols, class that. Is specific, on swing, trading and it. Is on Monday, so didn't, take place yesterday with the market being closed at nine, o'clock Eastern. Time, that, might be an appropriate class, for you to go to as, well. Now. Coming, back here, the, things we focused, on today really, were. Setting, up initial, stop orders where, they should go or could go we. Talked a lot about managing. Techniques, and the things we've done over the last two weeks to manage those couple of trades that we were working with and then, we did go through an example of position.
Sizing And how to do that hopefully, that was a review for most, of you and not a brand new thing but if it was a brand new thing it's. Alright you can start practicing that. As well now, what would I want you to do from this point forward I would, in a position sighs every, trade whether it's a practice, trade whether, it's a trade in your life account right, start. Incorporating, what, we've just learned so, that you can, minimize. And handle any losses that could come your way because we know in trading there's always gonna be some. Losses just the way it is now. I just need to remind you that in, order to demonstrate the functionality of the platform we need to use actual symbols, but, TD Ameritrade doesn't give recommendations, or determine, suitability of, any strategy, or security, to individual traders any, investment, decision you make in your self-directed account, is solely a responsibility. Now. Cam's class is going to start right at, the top of the hour I'm sure he'd love to see you there, next. Week as far as our class is concerned we are gonna start back on on, intermediate. Trend trading so, have a good afternoon everyone, thanks for being here buh-bye.
2019-09-05 23:56
