Trade Management Rocks! | Trading a Smaller Account
all right good morning everyone welcome to trading a smaller account i am delighted to be with you this morning i can see that we have a ton of people um here already so welcome welcome welcome um what happens when you give someone a bunch of highlighters well i'm not afraid to use them and today is friday the 13th we have 13 positions some are bullish some are pair a bearish that we need to review don't you know get your knickers in a twist we are not going to review every single one of them in this morning's class but i'm going to tell you how you can get the details on all 13 of those so we've got bullish trades we've got bearish trades we've got neutral trades we're going to look at those we're going to have a conversation around when to do a short vertical versus a long vertical and kind of the pros and cons of each and why we have kind of been leaning a little more towards long verticals of late although we do have several short verticals to uh look at as well today and um yeah so we have got a jam pack class as always we're going to put several new trades on so thank you for joining me for this wild and crazy ride that is known as trading a smaller account i would like to welcome all of you um you know we have a very interactive community here which is one of the things that i love about this class um so good morning to ap 514 and jules island gal and lamar and um whoops let me just come through the chat here and andrew and robert and deborah and lucy and the rest of the gang love having you all here it makes it so much more fun when we have an interactive class we also have ken rose with us in the chat and he brings a wealth of experience with him so if you've got questions please don't hesitate to ask and between ken and i we will do our very best to get to all your questions um and ken there was a question in the chat this morning about how um far ahead of the amazon split or a split do you have to own shares and i wasn't sure on that so if you know the answer to that and and could um you know it chip in with your experience on that if you know it that'd be great okay so um if you've got questions you're with us live type them into the chat if you're one of the thousands that watch this in the archives you can just type your questions into the comment section or if you liked the class you can type that in as well and um i do respond to each and every comment on a daily basis um also we are um in the world of twitter both ken and i and and it's going to become more and more important to be following me on twitter and you'll know why in just a minute but my handle is at b armstrong underscore tda kansas at k rose underscore tda he is posting great content on a daily basis as am i and it is for re my friends you are missing out if you aren't participating so there's my plug for um uh following us on twitter um and really you know i'm posting it regardless of whether you look at it or not um but you know i do it all for you guys so there you go um and know that this is an intermediate level class and we tend to move fairly quickly in this class um is so know that it is archived so if there's a point where you're going oh i'd like to see that again just jot down the time because you can always back it up and re-watch it in the recording but know that everything we do here is for education and informational purposes only none of it is to be construed as investment advice or a recommendation to trade any particular security or strategy in any particular way know that options aren't suitable for all investors um there there are special risks inherent to options trading that may expose investors to potentially rapid and substantial losses we discuss both the potential rewards of our trades and the potential risks every time we place a trade and i think it's really important that we do understand that um know that when it comes to trading options or futures at td ameritrade you have to apply for option trading privileges now we're going to use the paper money account it's a great way to demonstrate the functionality of the platform and we'll be using actual symbols you know and it's a great way to become familiar with the strategies and then how you place those on the platform but again not a recommendation know that all investing involves risk including the risk of loss okay okay so let's get to our menu for today so it always looks like deceptively simple we're going to have a look at what's going on in the markets today and ken said it looked like the opening was going to be strong so that'll be interesting and who knows like we've had so many days where the opening you know the markets were tanking and by the end of the day they were up or they were up in the morning and tanking by the end of the day so we'll just kind of see how the day plays out we're going to do some trade management and as i was preparing for this class last night you know i went nuts with the highlighter and and i i want to take a moment here and you know and then we're going to play some example trade so i want to talk about how we're going to do our trade management and it's interesting because it's friday the 13th and when i added them up we have 13 positions to review and so if we spent the enti you know if we reviewed all 13 positions you know we would have no class time left so what i'm going to do is we're going to cover six in today's class and then i am going to do a little recording and i know every time i do a survey there are people that that say can't we have this class more than once a week and trust me i'm still campaigning but and this was not my idea but i love it um you know i'm going to record um at like a five to eight minute video and i'm going to use that for trade management and so i'm going to do that right after this class hopefully it can be posted maybe not by the end of the day but by first thing monday um within 24 hours and i will post those links to those on twitter so at the armstrong underscore tda i will also come back and post production and post the link to the the short trade management video in um in this class in the in the archive for this class okay so um so that's how we're going to handle four of them and then the last three we're going to cover in long options on mondays and like i've said before we kind of treat the long options class as a companion class to this so we're managing our long option trades in that long option class and that kind of gives us a little more room and then we're also placing new trades for this account in that class so it's long options it's monday i'll put a link in to that class as well in post-production um you know if you want to sign up for it and i'll put it up here in the top corner as well so let me make a note of the time yeah so that's long options monday at noon okay so somebody's saying i i was told i could do options but not verticals why call our 1 800 number if you're a td ameritrade client and you probably just need to get a different uh approval level uh to do that okay it was a long time ago that i did all of that so i'm not the expert on on that okay so let's go out and have a quick look at the markets yeah and so um i'm getting a lot of p uh positive feedback on that and every time i post you know i create one of these i will i will let you know on twitter that i've done that and i'm going to use it for trade management as opposed to placing new trades which are just you know more time sensitive okay so um that's that let's get out to the platform okay and let me fix my screen okay so if you are brand new do we have anybody joining us for the very first time in this class today if if you're joining us for the first time i'd encourage you to just type a greeting into the chat so that we can welcome you um but we started the the year the first class of the year with twenty thousand dollars and uh we're now sitting at twenty five thousand dollars so you know we're up about twenty five percent year to date um we've had a lot of trades obviously that have gone well but we've also had many that have not gone well but we have been one thing we have been very diligent about is position sizing so we don't risk more than 400 to 500 on a trade which is two percent of the account value and some of you might say like whoa like i have a million dollar account i am not gonna risk two percent on a trade well nor should you but this is a smaller account and there are a lot of trades we couldn't even do it if we weren't willing to risk you know that 400 now if we got the account to the point where it was 50 000 would be you know still make that two percent we might not okay so welcome to all the first timers it looks like we do have a lot of brand new people here with us today and so here's the deal if you're new for the first time trade management is a is as important a component of trading as is um placing a trade and so what i you know don't think like oh this is boring this trade management stuff please pay attention because next week these will be trades that you have you know maybe placed in your paper money account because you're following along with us and um it will make you know make a far more sense because it's not just placing the trade that's that matters it's how how and when you decide to get out that is sometimes just as important because as a former coach with td ameritrade used to say not bob was really really good at whoops sorry guys not bob was really really good at placing trades and he'd be up sometimes you know it was a larger account um you know one two three four thousand dollars and then he would then slowly give all that back to the market and sometimes end up in a losing position and we do not want to be like not bob when we have profits we want to be able to take them and when we have losses and a trade goes against us we want to be in a position to admit that quickly and get out quickly um so you know one of the advantages of being what we are which is called a retail trader is that we can be small nimble and quick we can get in quickly we can get out quickly okay we're not like warren buffett where it takes us six months to lay into a position yeah no yeah so we think small nimble and quick okay so here we are uh okay i'm gonna write ebay down because that is looking like it's got potential for us okay so the s p 500 onwards and upwards okay so this is a three-month chart we're going to come to year-to-date and i always like to kind of when we're doing these just show prices a percentage and you know if you follow the markets at all you know that you know yesterday we were kissing uh you know the 20 down you know officially a bear market um you know today we're up a bit but i mean we're still down 17 year-to-date you know not fantastic right um yeah so you know the fact that we're up 25 when the market is you know down 17 um you know we could throw our shoulders out for patting ourselves on the back but you know what um the year is far from over now the last two years we've had really um and exemplary years in this account we've been up about 50 at the end of the year but that you know this year we could end up you know losing money who knows but we're going to continue to kind of work with that discipline of you know managing our position sizes etc etc so um anyway s p 500 down 17 you know and and at one point we were looking at this and having this conversation and saying like ooh it looks like it might be setting up an inverted head and shoulders here and then it's like oops yeah nope that didn't happen it's like oh it may be setting up a double bottom here and then it bounces like so this could be you know bottom number one bottom number two then it's like oh dang yeah that didn't happen either and if you're bullish you're going oh dang and you know for us do we really care now like for the majority of people they tend to be longer term investors and so you know yes we don't we would rather the market be bullish um than you know the whiplash that we've been seeing all year but if you know how to trade options we can make money you know there are opportunities to be profitable whether the market's going up down or sideways you know so we just have to figure out what's happening and then you know broke below this and when you look at this range you know just shy of you know 500 when it breaks to the downside if you say okay i'm expecting a 500 point move to the downside you know that would be maybe 30 uh 3536 you know that's not you know a happy story and so some might be saying well look at today i mean it bounced it gapped up on the open it's moving up and others might say yeah i heard somebody it typed into the chat is this a dead cap bounce um in other words is it setting up another bare flag where it's going to come up and then come down again who knows will this old support become a new resistance level we don't know yet but what we do know is that the market is down 17 year-to-date the s p okay now i don't want to spend the whole class on um okay let me get rid of this drawing tool why didn't it go away for me okay there we go okay so when we look at the nasdaq like as if this wasn't sobering enough you know here's our potential target here given you know we kind of go through that same thought process of you know we were kind of looking at this and again thinking you know could this have been setting up uh an inverted head and shoulders it's like yeah no that didn't pan out did it turn out to be a double bottom yeah no and so again is this a bare flag we don't know yet but what we do know is the nasdaq is bouncing up almost two percent today but you know down 26 year-to-date um and you know if you did this potential target based on this matching this you know it's got a ways to go okay now is it going to go there i mean who knows i do not have a crystal ball believe it or not yeah um how about the russell and often people would say the russell could be like the canary in the coal mine and so you know when this broke down and you know we've seen technic like i think technical analysis is just kind of fascinating um you know because it was trading in a uh you know this 230 point range for most of last year and then it broke down how far did it fall about 230-ish kind of points and now it's falling again and here's our next potential target and guess where it came to came close like i said said 1670 it came to 1701 and you know these aren't like specific dollar values they're kind of ranges or neighborhoods if you will and so it came down pretty close to the hood you know well at least it was kind of looking through the windows from a gate you know but and and yesterday rallied and today i mean up the most of all up 2.4 okay and then how about the vex let me guess i'm betting it's falling yep and we didn't look at the dow either which people often talk about um and so you know this is a year to date and you know i had drawn this diagonal resistance line and where did it come down to right down to that line isn't that fascinating and you know moving to the upside today up the least of the four indexes yeah but there you have it so that's a quick and dirty now if we come out to oh and i don't think oh i did so if we come out to research and ideas and sectors and industries you know today we're seeing consumer and tech rebounding energy still you know every once in a while these guys like nudge um nudge energy out um but overall you know when we come and we say okay let's take kind of look at look at this this is the s p 500 today each one of these squares represents a stock and so the majority of stocks in the s p are up to start the day out it'll be interesting to see how it looks at the end of the day but when we look at the last 30 days energy the only one in the green and when we look at and you know the strongest sector it's not the largest sector on the s p it's only about five percent of the s p but the strongest sector by far energy utility staples now this makes the bulls nervous when utilities and staples are close to the top of the heat and then when we come out and we look at the last six months you know spoiler alert same same three sectors and so if we wanted to look bullishly perhaps we ought to look in this arena okay and if we want to look bearishly maybe come down here and look for some opportunities you know kind of at the those sectors for stocks in those sectors that have been you know closer to the bottom of the heat and so if you're looking for a way to kind of sort things out and get a perspective on which direction you may want to go um yeah and somebody's typed into the chat and we're going to come back here now that you know they're looking at these a 30-day moving averages the red is the 30 the blue is a 10. um and you know none of these sectors are above any of these let alone the 200 which you need binoculars to see from where we are now yeah so um somebody has posted something in the chat about if you know more about options let me know i have questions there's a whole series called getting started with options it's tuesdays at high noon it's taught by yours truly it's actually a pretty popular class we take a different strategy each and every week i have a link in and post production to that series so if you just kind of when you go to the recording drop down and look below and you'll see that entire series and we you know i'd i'd encourage you if you're new to options to check that out because my assumption in this class is that you understand these strategies and if you don't understand them let me know as we discuss them and i'll just take 15 seconds but 15 seconds isn't enough so really what you'll want to do is go to that getting started with options series um and then you know look at the the specific ones on the the the strategies we're talking about also there are companion classes to each strategy that we talk about so for example we do a lot of short verticals in this class ken rose teaches a class just about short verticals so if you go and watch the getting started with options and then do the short vertical um go to ken's short vertical class you'll develop some mastery quickly and the same thing for long puts and long verticals there's a class on thursday mornings at 11 o'clock eastern taught typically by john mcnichol dedicated just to long verticals like the same way that i do long options on mondays okay okay so back to our regular programming okay so now let's get out and get after these six that we're gonna quickly look at today okay so we're gonna come to the monitor tab the first one i wanted to look at was walmart so walmart was a long call vertical so and you can see here that we have both a buy in a cell order and we're not in it so what happened with walmart is we said if walmart goes above 160 86 because we were kind of bullish on this when we put the trade on we said if it goes above 160 86 get us into the trade um and where is it sitting now well it's sitting at 146 so obviously it didn't go in the direction that we intended and we're so we're awfully glad we didn't put that trade in or we would have been in a losing position on it we did put the short put vertical trade on and we'll talk about that one in a minute um so this one we are just going to come out and cancel this because we had the presence of mind to say we only want to get in this if we get confirmation that it's going up and it didn't do that so i'm going to come out here to walmart this weight condition and let me close this this was a weight condition to open the trade and we're just going to cancel that all together so we're going to cancel that okay so that one's gone so that was trade number one if you were wondering whatever happened to that one the second two i want to talk about are long put verticals and on these i want to come to my long put verticals okay that one's done so these two long put vertical trades um adobe we got in this for 80 cents it's up a dollar 82 adobe is bouncing today i almost closed that out yesterday but i kind of hate to do that so it rallied yesterday and it's moving up again today so we have a nice profit um so you know i like to run a democratic class but in the interest of time i'm going to say we have a nice profit we are going to take it and so what we're going to do with adobe we've given half of that profit back today so we're going to come out we were originally going to get out when this was worth four dollars so we are going to cancel and replace that and say we'll we will happily take that dollar 82 in fact we'll take a dollar eighty and that was in our long put vertical and this this is a bearish trade and so if the stock starts moving bullishly do you know we want to you know be like bob and give our profit back my answer is no so yeah so that's that one okay so that was adobe we had a nice profit we're gonna get out okay how about crm that was the other one in that long put vertical group so we're up 39 on this one and we've given back a third of our profit on crm today and this is another long put vertical trade where let's come to the chart so this is another long put vertical and the idea with a long put vertical is that we're expecting it to go between through both our strikes so we're buying a put here and then because this is such an expensive stock and we are you know have limited resources we can't afford to just buy a put so then we sell a put to help fund it and we want it to go through both strikes and stay there and it was moving along just tickety-boo and the last two days it started to rally and you know what like this the downtrend is still intact but you know it it doesn't mean that we can't take a small profit now and then we could enter another trade if it continues to move to the downside so on monday you know if we look at this and it starts to move down again we could enter a new trade um it but if it continues to go up do we want to be like bob and the answer is no this is a hundred and thirty dollars of profit that we have i'm giving away profit by the moment here it wasn't you know we were we had given back 90 of it um a minute ago and you know a hundred dollars in this account at the beginning of the year that was like half of one percent so you know if like think about it if you know on a weekly basis you could improve your account by one percent that's 50 in a year you know just doing two trays that made you a hundred dollars you know so when you think about the position and if you have a larger account you may be saying like she's talking about such small amounts of money like that that's not going to have me drinking something out of a coconut in you know belize it's like well maybe not but you know what you add these up and it could start you know paying for cool things for your grandkids you know college fun for your grandkids or a trip to disney or you know whatever you want to do so with this one we're going to exit this position um as well okay so we're going to come to our working orders and this was crm and i've or you can you know organize these however you like where did crm go i'm organizing by symbol today's trade look at crm i thought i had an exit on crm oh i don't so we're just going to exit this trade create a closing order to sell that vertical we'll make it two cents less because we want it to get filled yeah small wins and you know somebody just typed in small wins are still great what you know we call this is base hits you know just base hit just get to first base small wins small wins small win we will take it okay so i haven't seen that fill yet but we'll assume that that'll get filled and i'll make sure that that fills today now vlo is another one that we had put in our portfolio now we're going over to the bullish side of of the walk and this was a long call that we did on vlo and so vlo is up today and we put a target on this one okay so if we come to vlo oh we got our fill and we are out of crm base hit complete the ump has spoken okay so you'd almost think i was a baseball fan wouldn't you yeah okay so with vlo we put the trade on here and it's a swing target and our target is just the previous high and so you know we're looking at this if we come in a little tighter you know is this moving to the upside it is we're just going to let this percolate okay we're just going to let it percolate what we may want to do though at the end of today is move our stop up and you know if we thought this might pull back we could move our stop up to try and protect some of that gain so that's something we could do we're not going to do that in this class but we're just going to let that percolate okay now we have three short put verticals and these are kind of in a world of hurt because as you may have noticed um yeah the market hasn't been too terribly bullish and all of these have only a week to expiration they all expire next friday so let's come and look at these well we've got delta and here we were expecting it to stay above both our strikes excuse me we were expecting this to stay both above both our strikes and it did not but we're seeing it trying to rally today and so what we could do because time is in our favor and one of the things that we like to see is time decay and we've got time decay happening on the weekend even when the market is closed so you know in a fit of enthusiasm we could say like let's just hope that this continues to go up or anticipate that this might go up and that the combination of it moving to the upside and um time working in our favor over the weekend you know we have lost the most we can lose on this is two dollars a share and we're at almost a dollar eighty so we could lose another forty dollars on this but if it goes up nicely on monday but it's at 37 it has to move pretty dramatically but what we might do on monday is just close this out so watch for another recording early next week because i will do some trade management on these prior to class next friday um the next one is dollar tree so this is a trade that didn't go against us or that has so far gone against us how much are we down 266 dollars how much could we lose we could lose about 300 and this is when we're grateful that we have position sized appropriately okay um dollar tree and again we're sitting kind of right on the line here with this one it expires next week we want this in order for this to be a profitable trade if you're not familiar with a short put vertical our expectation was that and i should have put a circle around when we got into this it was probably back here because we only it was two weeks ago about 10 days so maybe it was here and we were expecting it to stay above here dang it so you know when you have a trade that goes against you it is worth taking the time to have a look and say hey did this entry make sense so let's say whenever we got in we looked at this it was bouncing off this support level we said okay we think it's going to stay above this 30-day moving average so i'm going to sell this put here buy a put to help fund it and to define my risk um sorry i'm selling a put and then using some of that which i've sold and as long as it stays anywhere above this 160 you know we're good to go but obviously that hasn't happened but we're close so on this one we may just want to sit on our hands but some traders will have a rule and they'll say four days prior to expiration wherever i am i'm going to exit because they're we're out of recovery time okay so with dollar tree we're gonna wait um and then with walmart this is the one that you know here's our short we wanted it to stay above 155 and so when we looked at this last friday it looked like it might be rebounding and so we decided to wait and instead it's come all the way down to this previous high and who knows if this will hold and we have earnings so this was you know when i looked at this yesterday i just said wow we actually made a mistake here because part of the reason that um well we're through both strikes but we've got earnings prior to expiration and so typically we will not place a trade where the expiration date is um you know if there is an earnings event between when we got in and and expiration this is typically a no-no and this has not worked in our favor and why do we typically not do that well because our intention is not to do that because approaching earnings volatility goes up and this is a trade that you know we want volatility to fall not go up and so we're kind of setting ourselves stacking the deck that maybe that's not the right term we're we're not um creating an environment that is as conducive to a profitable trade if we have earnings in the way okay and so our we made a mistake in placing this trade with an expiration date that had earnings in between and sometimes you know so this is when you go back and you say oh was this you know and and some people will actually if you go to ken's class um and if you want to see how to use the journal i'd recommend going to ken's class on verticals by the way um but you know that you can also trade verticals over earnings as you know because you're trading the volatility crush um we tend to be a little more conservative in this class because if it goes against you then you can have a max loss in you know lickety-split and um we don't want to do that okay so believe it or not we have now reviewed our six um so let's go out and look at something new and i want to look at a firm today so a firm um came with earnings last night if you're not familiar with this company it's in the financial space um i'm a skier so i bought um three ski passes and i could either have paid for the three grand up front i bought some christmas presents early this year or um you know a firm let me pay you know over the next six months and there's no financing charges or interest charges or anything like that um i heard the ceo speak last night and you know this isn't back above the 30-day moving average and it's kind of starting to pull back but you know we m what we may consider doing um with this company that has been pretty badly beaten up because you know i think it's been sucked into the you know some might argue it's been sucked into the vortex of the market but we could actually afford to have this um in our account and so perhaps we could look at this and say well it's moving to the upside you know we don't know for sure that this is going to continue to move to the upside um but could we do a buy right which is we're buying the stock and selling a covered call which wouldn't eradicate a loss if it were to pull to the downside but if we come and we look at this out for june like the volatility is so high and if we put a stop loss on it like this 360 is over 10 percent now if it continues to go up you might say like well if you thought the fundamentals were strong on this company why wouldn't you just buy it well if we're trying to do this in a as a shorter term thing where would we put a stop and say you know what you weren't we weren't right about this well maybe we could just say hey we're expecting it to continue to go up its gap to the upside um if it comes back down to this previous high around 18 if it goes much below that we want to get out so you if we said okay eighteen dollars and if i take three percent off that it goes below 1746 um it's not heading in the right direction i'm you know if the expectation is that this might continue to go up um so let's just look at how much risk there would be if we did that so on this platform and and one of the things we want to look at if we're doing a buy right is are we are on the other side of earnings yes we are um the other thing we want to look at is do we have lots of volume well it's early in the day we're at 26 million shares so yes we do how about the option contracts will we be looking at a call and even if we're looking at the at the money call the 25 call you know if they're willing to give us three dollars and 50 cents we've got thousands of contracts and we've got a fairly tight bid ask spread even though the volatility on this is like ridiculously high um so if we come to buy well and maybe it's not ridiculously high but it is very high so if we looked at a covered stock if we said okay if we're putting our stop at 1746 and there's no guarantee that we'd get out at that um how much could we lose well at 17 46 let's say we're down you know two dollars and 30 cents that would be we're risking 230 dollars we could actually do two contracts but if you say well i think this is a higher risk because with the way it's trading now it would be considered a counter trend trade let's just do one contract okay how much could we make well the most we could make if it goes up to 25 is the difference between what we paid and this um and and the strike that we've sold so how much could we make well we could make about 520 well 510 let's call it 500. so we could make five dollars a share the multiplier is a hundred we could make 500 how much are we risking well we're risking about 200 and let's call it 250. so we're risking one to potentially make two so if we said okay we're okay with that um and we're going to take our single order first trigger sequence right click opposite order you know and if the market continues to go down could we end up out of this absolutely could we end up deciding to exit this position next week absolutely so if a firm goes at or below 1746 we want to buy back the call and sell our shares save confirm and send and we what we might want to do is put a little note in here to say hey um counter trend trade placed based on earnings results and gap up post earnings pardon me okay okay are there any questions on this one okay now i would like to go and look at ebay well now it's starting to bounce so let's go and look at another one xom okay so here we have exon it's starting to move to the upside if we thought that energy might continue to be strong and even though this is kind of consolidating in an average day how much does exxon move about three dollars and sixteen cents so if we looked at this and said you know what if this goes up three dollars and sixteen cents then i would like to take that gain and so we would take our 87.82 add three dollars and sixteen cents so 87.82 i'm going to add 316. so that
would be our target 8782 plus 316. uh you know before i finish this that would be our target would be 1998. let's go and look at the option prices okay so we could actually afford to do a call here and again 6 000 um shares traded today we've got lots of volume over 20 000 contracts on the at the money strike it's three dollars that's in our snack bracket because if we can risk up to 500 how many contracts could we do we could do one because how much could we lose on this trade we could lose the entire amount okay so if we looked at doing this 90 now when would we get out well if it doesn't go in our favor well if we look at the low for today at 86 35 and we subtracted 350 316 so 86 35 plus 3 16 minus 83 19 that's when we would get out okay okay so and this is a bullish trade now you might say why are you doing that when the market is so bearish because you know there are little pockets of bullishness even in a bearish market and and this energy sector has been one of them okay now when you are somebody mentioned you know that this pays a dividend and it does it pays a nice dividend four percent and you know when you have a lot of people looking for safety and looking for dividends energy utilities staples this is why one of the reasons they've been so strong but might that help put the price push the price up and you know if we're saying to ourselves yes even though as an option a buyer of an option we don't get paid a dividend we might benefit from the fact that in this kind of time frame dividend paying stocks appear to be more attractive so we you can right click anywhere on this line we want to buy and i'm just going to do it a simple buy first trigger sequence right click create an opposite order and we're going to do a market order to get out to get out when we're going to get out when it goes at or above because this is bullish we always put our target in first 90 98 90 98 or at or below 8319 83 19 we're going to make sure that these are both showing up here above check below 8319 check and confirm and send how many can we do we can only do one because we aren't going to risk 600 how much could we lose the entire amount this says we could make an infinite amount but we've got a target in here and often how much do we end up well if it gapped up we could you know end up with a bit of a home run but often it's 20 30 40 percent and the goal you know or the expectation is that we would likely be in this trade just for a couple of days so here's our one atr target and now my friends sadly we are out of time it goes so dang fast doesn't it but if you wanted to do an additional trade where might you look well maybe at something else in this sector like a devon and again you know moving today so i don't have time to put that class on that on today but your homework is um to do another long call trade with a one atr target um that we will follow up on next week so your role your mission should you decide to accept it and when you go to do this like if you're watching me in class it may look easy peasy but if you're new to this um you know it requires some thought right um and you can always go back and watch the recordings so um look for the trade management short video later today um follow don't forget to follow ken and i on twitter um i think we've covered what we intended to cover today um there is a survey in the chat so a lot of what we do in this class is as a result of the feedback that i get from you and the surveys so here's my commitment to you if you promise to fill it out i mean there's a ranking from one to ten one being this was awful i'm never watching this again to ten i loved it and everything in between but you can also type a comment in and and i promise if you fill it out i promise to read each and every comment and they help me make this class better for you um and then if you enjoyed this hit the like button if you haven't subscribed to this channel you're going to want to link arms with us and come back each and every week love having you guys all on board many thanks to ken rose for all that he does to make this a more valuable class in the chat and know that everything in this class we do uh if i can manage my own little one-man band here everything that we do in this class is for education and informational purposes only none of it is to be construed as a recommendation on the part of td ameritrade or myself all investing involves risk so take care everyone have an awesome day i will look forward to seeing you in a webcast coming up soon take care everyone bye for now
2022-05-16 07:50
