Using Moving Average Crossovers For Entry and Exits | Technically Speaking: Trading Stocks & Options

Using Moving Average Crossovers For Entry and Exits | 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 connie hill i'm happy that you would join me here today got a good group here that's joining me live but there may be many of you that listen to this on a recording that's fantastic continue to do that but anytime you might want to join us we do this live on thursdays at 1 eastern time so you feel free to join us anytime we've got lots of friendlies out there i appreciate you folks coming back uh week after week and i hope that you're incrementing your knowledge that you're feeling more comfortable about things we have out in the chat my good friend barb armstrong she's such a knowledgeable coach very helpful and so if you do have questions chatted in barb will help you out or i will help you out depending on what what the nature of the question might be but don't be shy if you're listening to this on the recording you too can get your questions answered go ahead put them in the comment section and i'll go back and review those throughout the week now barb and i are both on twitter we'll post educational content throughout the week and and little tips and hints that might be really useful to you so make sure you're following both of us i'm at chill underscore tda barb is at b armstrong underscore tda i know lots of you recognize your faces you attend her classes as well and so make sure you're not losing out on the content that's getting posted what we talked about today is intended for educational and informational purposes only it's not intended as investment advice or recommendation of any security strategy or account type uh options are not suitable for all investors as the special risks inherent option trading may expose investors to potentially rapid and substantial losses while this webcast discusses technical analysis there are other approaches including fundamental analysis that may assert very different views stock markets are volatile and can decline significantly in response to adverse issuer political regulatory market or economic development past performance of any security or strategy does not guarantee future results or success we will be using the thinkers one platform today using actual ticker symbols keep in mind td ameritrade does not give recommendations take lots of notes okay you are free to take all the notes you want to be a great way to approach this now our agenda for today i think i've uh have a problem with my mouse here there it goes all right our agenda today i want to talk about an address for those of you that have a hard time making a decision those of you that maybe say hi i question my technical analysis i'm not sure if i'm only seeing an entry signal it would be nice if i just had a yes or a no i've got a yes or no i know how to proceed we're going to do that i'm going to show you what's called a 520 crossover system i'm going to show you basically what that means i'm going to show you a scan to identify some potential candidates we're going to do some sample trades from those candidates and then of course we're going to follow up on some of the stocks that we've been working with in our paper trading account now i'm going to bring this up here first and let's talk about you know what is a 520 crossover system well essentially we're just going to put in a couple of moving averages here we're going to put up a 5 moving average that in this case is my red one and we're going to put up a i take it back that's the blue one my red moving average is a little bit longer it's not incredibly longer but it is covering 20 periods so we've got about a a week moving average crossing over a month moving average now why can this be helpful sometimes if you're just not sure what direction the trend is going or if the trend is strong enough being able to see these moving averages cross over each other can be a good indication that the direction they are going is the direction they will continue to go and it might be beneficial for us to take advantage of that kind of a situation so i've got a stock up here we're going to maybe use this a little bit later i'm just going to pull it up here but we have a stock you saw it was downward trending for a while and a couple of times we've actually had a crossover we've had this the 10 crossing above the 20. on this day here which was back in june it ran up and then it came down and it crossed again looks like that cross took place on july 22nd since that period of time that shorter term moving average was below the longer term moving average but then today we have them crossing over again fresh now as you look at a candidate you might say okay i can see why we need a little bit of time to to determine if we've got a bullish trend here if we were to look at the same thing on the spx which we'll do here for just a moment we'll see you guys know what have been going on in the market so we're not going to spend a lot of time there but we've got some downward trends and then more recently we have a crossover here of that short term five moving average crossing over the 20 moving average and that occurred back on july 19th so we've got about three weeks of the price of the stock continuing to move up that five day moving average clearly staying above the 20 for a period of time and so what some traders might do is they might say i have a hard time figuring this out when i see the crossover i'm going to make a trade if it's going the 5 over the 20 it's going to be bullish if it's the 5 crossing down below the 20 and if you have been in a bullish position that's what we might use as an exit now we can you that use this with bearish trending stocks as well right you could say okay yeah when the shorter term moving average maybe like back here in june crossed below the 20 yeah for a long period of time then the the it was it was bearish in this situation all right let's take a look at a scan how can a scan help us find what we're looking for it may narrow the field of what we're looking at but it's not necessarily going to bring back all sorts of trading candidates for you but i'll show you how this is going to work we're going to jump over here to the scan tab i've already created the scan i'm just going to walk you through it i i'm hoping this is an intermediate level class so i'm hoping that many of you already know how to use the scan functionality and essentially we are going to use the last price of the stock look for a minimum of ten dollars then we're going to look for average volume average volume over the last 30 days you know which is about six weeks worth of trading we were looking for volume to be greater than five hundred thousand now right now if you're a person that focuses pretty principally on stocks you could if you wanted you could lower that value to maybe 250 000 those of you that are really focusing on auction strategies you might consider changing it you might change that to say a hundred or a million rather than 500 a thousand just so that you have stocks that have lots of trading activity going on okay that can be something you can do there then we have the crossover we're going to let the system find the crossover for us so we're going to say all right when the this is comes from the study filter okay as well when the 5 crosses above the 20. let me know right we're going to say catch it for us find us on the scan and then something that's going to help us out i've added on there as well you can't do the crossover and that's fine but if i'm trying to find a bullish crossover it's helpful if we already have an established trend now it doesn't have to be an established trend of a year six months or something like that but what i have said here is let's look for stocks that are up at least 10 percent over the last 30 trading days uh which is about six weeks okay so we want the stock to at least be 10 percent higher that doesn't mean they've necessarily all the way recovered gone back to where they were previously but at least there's some inclination of a trend uh changing around or going up and in the market where we've been trading right now where we've had kind of a bearish market and actually in our portfolio we have gone through a series of some bearish trades kind of moving into bullish trades now uh it can be helpful to have the scanner find that for you uh so a couple questions here let me just it looks like barb's catching some of these here which i appreciate uh the last question here from wylie says should the 20 moving average be above the 50. you know wiley if you wanted to put that as an additional criteria for yourself you could do that there's not a problem uh but i am just going to use for our purposes here today we're just going to look for a 30-day moving average or you could even substitute it okay but we are going to be looking for that moving average to be up at least 10 percent in the last six weeks all right let's run this and show you what we get back here i'm going to go ahead and hit the scan it should look pretty similar to what i have over here i saved the scan and then when i did that i said well let me pull up the stocks that meet that criteria i clicked on whatever my watch list was here previously and i called this one 520 crossover so it brings up our numbers here first and so i'm going to find our 520 bullish crossover we've got that little icon over here that purple icon lets us know it's a dynamic watch list i'm going to go ahead and select on it then we see there the different stocks that meet that criteria you could look at the results this way or you could come over here you could save the watch list if you wanted to because maybe you have some other ideas to use it as well um question here from a future day trader says if you want to own the stock a trader might choose to exercise a call option that is true some traders just want to profit from the rise of value uh rising value in the stock actually that was from barb answering future day trader what we're doing here is a very technical search there is not any criterion here as far as p e ratios as far as return on equity it's very much just a technical look uh for what we're looking for today for the crossover meaning on the crossover you could there could be individuals that say all right i have my own little watch list and those are the stocks that i want to work with for my purposes maybe what you want to do is you could run this this scan and then you could intersect it with your own personal watch list okay you could do that it just to see where the crossovers are and that might be helpful for really somebody that has a lot of stocks they want to watch or you can just bring up your watch list over here come over to the charts make sure you have a 5 and 20 here if i go over to my studies all i did was two simple moving averages come over here to the left type start typing in simple you'll see simple moving average simple moving average i grabbed that twice once configured for 20 periods the others configured for five periods okay so pretty easy to do that now of course i had the opportunity to scan through here before we got together so it's able to identify some stocks that might be interesting for us to take a look at so let's take a look at the first one here which is aal maybe you recognize the name of that stock american iowa airlines uh we know that some of the stocks in the travel industry let's make sure we get the right look here there we go uh stocks in the travel industry kind of they they sold off pretty hard when the rest of the market did and now they two are starting to recover so we can see here and i can come and draw it in here we can see that there's a trendline that those lows are getting a little bit higher and a little bit higher that hasn't been for very long right it just kind of started at a higher low here the last of june so over the month of july we're not much into august yet but that stock has continued to go up and today you can see today is the crossover so again we're going to take away the discretion from you so that you don't have to figure out oh is it a cold is it a good enough bounce is it a breakout is it that resistance is it a support all of those things that you do with technical analysis in other situations you kind of set to the side and you say okay i know those concepts but that's not going to be my rule my rule is only going to be the 5 crosses over the 20. okay let's go ahead we're going to do a trade on this in our paper trading account as an example trade up to the trade tab we go it's a low price stock right now isn't it uh in the past we've kind of done a lot of option trading in this class and some of the stock traders might feel like hey you got to get some stuff for us too but when we were in such a bearish mode really option strategies are a consideration when you're when you know how to trade those options as a good way to take advantage of bearish or sideways trends so here we're going to go ahead we're going to do two things one we're just going to buy the stock out right are we going to put in a stop loss no we're not we're not going to put in a stop loss here why because every single day we're going to pull this up and at the end of the day we're going to see if they indeed cross over each other we're going to wait till the end of the day to take the signal now you and i aren't going to be sitting around together when the market closes today so we're going to go ahead and take action on this but generally speaking you really would want to make sure that the crossover occurs towards the closing of the market sometimes it's going to be really obvious sometimes it's going to be kind of close i mean i would say today i would say that's not one that's super obvious okay it's one that's just maybe a little bit of a cross so how do we figure out how many shares we should buy if we're not going to put a stop loss on we don't necessarily have that piece and i'm going to bring this up in my my scratch pad we don't necessarily know what the stock price is going to be to figure out our position risk over here on the left hand side where i have that formula so we're going to have to make an estimate just for position sizing's purposes even though technically we don't know when or if that crossover is going to come i imagine at some point it'll come but we don't know when that might be kathy has something here i like this kathy as she said i've always heard that you wanted the jaws of the crossover should be pointed up for bullish trades and down for the bearish is there anything to that you know kathy that's a great commentary some people might want to use that if they wanted to what we're looking at today is basically saying let's just see the cross some of them aren't going to be big jaws okay some of them are going to be minute okay if somebody wanted the big jaws then you're either get looking for a stock that's making a really big move on that date or you're looking for something that may be crossed over in the past and has that look okay so that's that you can determine what rules you want to make as far as that goes okay today we're just looking for the simple cross we will see a couple i can show you a couple that look ginormous like big jaws open uh so you can decide if you need that for you to be strong on the determination is this a good enough cross for me sure go ahead and use that but be consistent about it a question from or maybe this is a statement dd dddata says every time the smaller moving average crosses over the bigger moving average indicates a bullish trend uh this is of course not always guaranteed you're right some of the stocks that i looked at that came up here some of them i you know i might look at and i said uh i don't know if that's bullish enough for me which is why i went back to the scan and put in the filter that says okay it's got to be at least higher in the last six weeks to make sure we have a bullish trend there if we only went with the crossover we might not feel as comfortable with that you could even go back to the scan and you could say i want it to be over a longer period of time you know you could say i want it to be up say 10 over the last uh well actually wrong row uh 10 over the last or maybe 15 over the last 60 bars okay so you could play around in there to plug in the time period you want the stock to be upward trending right this is something for you to have a baseline of but not necessarily the end-all be-all okay could be a great starting point for some of you now i will share this wasn't hard to build but i will share the ring the link for this let me just say share the scan query it's going to bring this up here and i might just relabel this scan 520 co for crossover okay i'm going to hit share it's going to create that url i'm going to paste that link out in the chat okay you want it great if not no problem those of you maybe aren't familiar with how do you use that little formula i put out there for you uh one thing i'm going to do here for those of you that are looking at this on the recording you're like oh that went up and it kind of went out of my view pretty quick connie i'm just going to paste it over here i can get my text note to cooperate ah it's not cooperating try it one more time tax note make sure it's not coming up on the other screen i was going to paste it over here for you maybe what i ought to do instead is i might i'm going to paste it here in my scratch pad i'm sorry that that's not bigger all right but what you can do if you're watching this pause it zoom in a little bit you'll be able to see that i'll read it to you because it is cap sensitive we were looking at everything after the front slash lower case s capital c lower cases r and e and the rest of these are all caps p is in papa c is in charlie c is in charlie okay that's what you need to do you'll come up here to say open shared item and then you'll either paste it in or type it in there all right let's get to the question back to hand is how do we position size it we're going to have to come up with a an arbitrary stop okay a place where we might want to get out uh let's arbitrarily because we are uh going to wait for a crossover before we actually exit the trade but let's suppose that maybe if the price of the stock got lower than maybe the lowest point it's traded in recently that that might start moving towards a crossover of the bearish nature or the ex exit nature so let's do this let's go two percent below the lowest price which is here in the last few days that price is uh 1329 we're going to come over to our calculator we're going to say 13.29 and let's go two percent below you can decide what that percent is for you that means we're going to use for position sizing purposes us we're going to say okay 1302 could be a theoretical exit point we're not going to we're not going to hard code that in okay but 1302 bring this up here and we're going to say all right that is going to be our stop so then we can position size so let's go that price minus current price of the stock 14.82

that didn't work so good minus 1482 so about a buck 79 in risk and our class here we typically we don't want to risk more than 750 on any trade so let's uh say all right we've got our our 1302 was our theoretical exit which gave us about a buck 79 of risk so let's do our formula we've got 750 divided by 179 that says hey we could buy over 400 shares about 418 shares now this stock is not an expensive stock if we did buy 418 shares uh let's multiply that by 14.81 ah let me clear that out 14.81 times uh 418 would be spending about six thousand dollars and of 150 000 portfolio six thousand dollars pretty small portion of that so many traders would feel comfortable with that do not resize it differently okay let's go buy our 418 shares right mouse click we're just going to do the buy we're not putting in a stop stop has to be from your eyes on the crossover we're going to buy 418 shares i believe it came out too if i was wrong we're still pretty small position and the current price of the stock that's very reasonable let's go ahead let's send that off we're going to put this in our account trading stocks and options so that we can keep traffic of it and put a note on here this is based on our 520 crossover so if you go back or we go back we can identify oh what do we use as our entry oh yeah we're doing the 520 crossover and we're going to use that for our exit right we got filled immediately now what about you folks that say okay yeah it's a low price stock connie but i kind of like to use options instead okay what option could you consider you want to buy enough time that you could treat this option kind of like the stock okay so that means probably not going to go for anything in august or september not probably not even october we're going to go a little bit further out so we're going to go out to january here so on january we're just going to come out here we are going to get the first strike in the money we're just going to go with the 14 here we're just going to do a just a regular right click on it again we're not going to put a stop loss on it but we could theoretically lose this whole thing couldn't we uh let's position size for a total maximum loss of losing 285 that's going to allow us to buy two contracts we're just a little bit over for three contracts would be over our risk tolerance so we're just going to do two contracts here we're going to do the same thing we're going to bring that up we're going to put it in our little bucket again i'm going to put 520 crossover as the source of what we're using as our entries and exits i'm going to go ahead we're going to send that off and we're filled if you don't want january that's okay you could go out further in time you might want to go you could go a little less in time but remember we're going to treat that option like the stock so we're not going to get out until there's a crossover all right any questions on that if there are speak up all right a future day trader likes aal is one of your stocks that you like to pay attention to that's great let's go to the charts again let's take a quick look at another stock we are going to take a look at ai it was one of the stocks came back on that watch list from the scan on ai let's kind of zoom out a little bit so you see where it's been pulled back like the rest of the market and like some technology stocks are doing some of the sectors they are improving and starting to develop higher highs and higher lows this one too i could draw a trendline if i wanted to showing me yeah yeah the lows indeed are getting a little bit higher and today is the crossover okay we're seeing it right here should you worry about the fact that maybe there's resistance up here at 21 and a half no we're not going to worry about it that technical analysis goes to the side we only focus on the crossover right that's where we're saying don't you don't have to use your discretion we're going to just go cross over in cross over out so again we've got our crossover here today let's go see what we have on the trade tab now on the trade tab this one does have some options available with it too it's not as high a trading stock as american airlines is but not too shabby of volume here today we're going to go ahead and we're going to buy the stock here again how many shares could we buy again we've got to come up with our theoretical exit point that we're not going to put as a hard code but this is just to help us position size what if the price of the stock what if we do the same thing and we say okay if the price of the stock went lower than say this we'll take this as our most recent low this red candle day to make sure that we're not over exceeding how much we could buy let's go two percent below that again to use for position sizing purposes again we're not going to put it hard coded in i know i sound maybe like a broken record because i keep repeating that but i want you to understand how the exit really is going to work all right the low price on this day looks like 1742 we take 1742 times point oops nine eight instead of nine seven we're going to have a theoretical stop at 1707 for position sizing purposes only uh let's take the difference between that and the current price of the stock which is coming in at 2077 so that's that's some decent leeway okay that gives us 369 of risk if that's meant too much risk for you and you might interpret it differently you can you can change it you can put your theoretical stop out point you could put it below you know yesterday's candle if you wanted okay that part of it will be a little bit discretionary uh but i'm what i'm doing here what we're gonna focus on is one of the most recent low points in the last few days okay again we could lose i mean the stock could go to zero we don't expect that it goes to zero but we want to make sure we're not loading the boat too much so here we're going to take our 750 divide that by 369 the risk on the trade says okay 203 shares we could do 203 shares so let's go do it trade tab we've got it all queued up looks like the current price is 2097 we're going to hit confirm and send after we change our volume of 203 we're going to hit confirm and send put it in our bucket that we're tracking our stocks and option trades in and then again i'm going to put 5 20 crossover as the source i'm going to throw that in we're going to hit send okay got filled immediately we're going to track that and what a trader might want to do if you're maybe placing some of these similar trades in your own paper money account to experiment with what you might want to do is you might want to say let's look at the chart every day is the impossible it could have a crossover tomorrow it is possible but many times once we get that crossover it does run for a while like you can see the previous crossover took place here on the 27th of june and another crossover going back down didn't occur until 27th of july okay so we're going to look at this every day and now robert says you can also put an alert at the on the chart for the 5 cross below the 20. we could do that robert which would be a good thing to do i'm not going to do that here but maybe that'll be something i put into our next discussion okay got a couple more things to cover but that might be an idea or somebody could say okay when the price of the stock gets to 1707 our theoretical point we could put an alert out there for that price as well right we could do right mouse click create alert and if it gets out or below 1707. okay so we can do that as well i like your idea with the crossover probably better okay so that you're alerted when that does occur very good chris is giving some commentary on that as well um now future day trader says why not buy the call options for a few weeks you certainly could uh in the interest of time i'm not going to put an option in but what we could do to make it kind of similar to the previous trade come out here to our january options we've got loads of open interest here we've got a reasonable bid ask spread i'll probably come back after our class is over and put in this january 20 call so we can track the option and the stock all right next site on our agenda is to follow up on some of the trades we've been doing these pack practice paper trades and follow up on them sometimes it's easy to get caught up in just getting in but the managing of the trade the exiting of the trade actually takes a lot more brain work sometimes and consideration and it's helpful i think for you to be able to see some of the thought processes as we manage those trades so first straight up that we are going to take a look at is a trade we did last week let me zoom out here a little bit uh ticker was aehr we didn't use a crossover here okay so i don't want you to worry about that we use some of our basic technical analysis uh but it is interesting it crossed back here and maybe a little bit before earnings and it's continued to climb now we got in here last thursday in our class uh on the trade right now we have 418 shares we are up in a week about 22 percent now we might not have intended the stock or didn't think the stock was going to explode that quickly okay however we might say thank you market for that gift i like to manage my profits there therefore maybe what we'll do on this trade is put on a trolling stop loss we do have a stop on the chart already for down here because we had a little bit below this short term support level and it certainly has stayed well above it so we were for a trailing stop loss for those of you that are not quite as familiar with how that works essentially we determine the length of the leash on the stock we say we're going to give the stock this much latitude this much leeway to retrace and if it hits down that low exit out you can do it based on dollars you can do it based on prices so for our purposes here well let me actually uh draw a little bit here because as the stock pulls back if it doesn't get to your predetermined area percentage or dollar then you stay in the trade and it goes up and it moves that stop loss up with it as it goes above the point where you put the stop on or if it was at the peak that you put it on then it'll do that so this is what we're going to do we're going to come over to the monitor tab and we're going to change this we're going to click on the little cell button here we're going to do a cancel replace order and instead of having that stop order down there we're going to change this to a a trail stop and we're going to make it be based on percentages we have this little marker here it says plus minus i'm going to click on it twice until it comes up with a minus and we're going to we're going to give it the opportunity to pull back four percent for us right we're up 22 now some people might be inclined to say sweet i'm taking it while we have it we're gonna give it the opportunity if it pulls back say four percent or lower click in what we're going to have it click in a market order get us out of the trade we're going to keep it good till cancelled we're going to hit confirm and send and we're going to start monitoring it from this point and i want you or the system to monitor it we're always monitoring it it's kind of estimating at this point that's where that 12 stop loss would tick in pretty close to its low point today but if it goes down there we're hoping the intent is to to lock away a majority of the that percentage of the trade if that's too tight for you give it a bigger percent if it's too loose narrow it up if you do something like a one percent or 10 cents something really really tight you'll probably be uh triggered out of the trade pretty quickly now if you're somebody that said i'm happy with the beginning of this trade in fact i thought i was gonna trade this for seven eight nine months then you might not want this type of stop-loss on you might just keep where we have it so it really depends on your intent the intent with this one right now is let's lock in some short-term gains okay your approach might be different can you change from a call to a put emj asks um yeah wiley says we could sell half as well you would probably do it as a separate trade okay because this one we just have the stock only your question about a call to a put as far as the other stock that we're putting a new trade on that was um aehr or no that was uh ai you could if you wanted to sell a put you certainly could do that but again we're trying to mimic stock action selling a put maybe as more of a probability type trade where you're looking for the stock to stay above a certain point and so we really wouldn't be using the crossovers you could do it absolutely it's probably not one that i would put into the mix for what we're looking at here all right let's look at another trade we're in moderna we got in this last week as well let's open it up we bought 31 shares of the stock we also bought a long call option dated in january because we were going to treat it like a stock so we needed plenty of time uh we're doing pretty decent on it right now the call was 31.75 now it's worth about 44 so

that's a nice percent gain here up about 38 the stock itself uh they did go through earnings i'll show you the chart here in a minute uh and so both of these positions are doing quite well stock went from ones almost 172 now it's up to about 195 so we're up decent percentage right ways in this as well does that mean that we put a trolling stop loss on it and this one we're not going to okay we got into this trade because we saw the stock basically this day it created a hold type entry we got in immediately after and it's doing great but this one we're going to ride the peak the pullback the peak the pullback we've got to stop in here oops let me let it balloon out that basically is oh didn't get the right stock i apologize there we go okay there we go that looks more like it this is where we got in so i guess it wasn't last week it was a couple of weeks ago then says the earnings they went through they had positive earnings it hadn't pulled back that much our stop loss we moved up just a little bit we also put on an alert to trigger for somebody that might want to get out but what has it done here had great volume yesterday went kind of up to a resistance level uh that it had previously seen back in march today goes busting through it now it's we're already at about average volume today for the stock so it's likely to close with above average volume which is going to make this breakout a lot more probability-wise more likely to stay there if we have breakouts on low volume then the likelihood that it's going to stay there is less because we haven't had institutions and others buying in and institutions typically are not day traders okay so could we if we wanted to move up our stop loss we could absolutely cut here if we wanted to and we wanted to be aggressive if you don't want to be aggressive with it uh wreck and you recognize that hey the low is right here and we just have a stop a little bit below the most recent low you might keep your stop somebody wants to move their stop up aggressively and try to take some risk off the table might say now this should act as a support it's not guaranteed hasn't tried it since it broke through but it should act as support and we could move our stop loss off that's what we're going to do with that trade again you have different options available to you so uh that line looks about 186 186 65 times 0.97 that gives us about three percent wiggle room there gives us a 1 81.05 now i might take this down just below 181 because sometimes stocks options may have some triggers that go in at even dollar amounts so i'm going to put it just a little bit below 181 we're going to go 180 and 90 cents okay so we're going to grab this one we're going to do the click and drag to 180 and 90 cents oh that's pretty dang close connie 92 let's go just a tad oh okay i can edit this and put it in perfectly i'm just going to take 180 70 that's pretty close and we're going to adjust that and try to take some risk off the table yeah might not be what you want to do with your practice trade but i do want to show you different aspects and different ways that you could manage it and different pro thought processes for it uh aehr we did a trailing stop there uh should we consider and go with the crossover no that was not our plan when we got in we did not do it on a crossover so we're not going to take it okay we chose to just put a trolling stop-loss on it that's the approach we're going to take in the class if you want to switch your rules up you can but it's good to go in with a plan follow the plan exit using your plan okay that helps eliminate a lot of emotion in fact using crossovers that can be one of the beauties of using a crossover is limiting your own emotions and not second guessing yourself oh is it big enough move did it really break through resistance not using any of it okay uh one more i wanted to take a look at here was pxd phd we did a change of polarity on last week we had a short call vertical going on and in the short call vertical this is the day we got in and what did it do since then it just rallied boom boom boom so on this day last friday we said okay we're going to change our polarity we're going to say hey we've had a technical breakdown it's not doing technically what it had done before therefore we're getting we're going to buy back our short call which we did at a pretty decent loss and we're just going with the long call well right now actually that long call is down which is unfortunate however we've got about 15 days i believe left in the trade we're going to let this run for another week we're going to see it certainly has not made a lower low here uh we're not going to get skittish just because it's down a little bit we're going to give it the time uh to recover back up here we don't know if it will or it won't i'll be watching it this week very good any questions that you might have on the management of our trades that we've done and the new trades that we put on or building the scan if you have questions now's a great time to send them in you know just as we wrap up here as a summary we essentially said let's take discretion from us making the decision to the moving averages making the decision for us on our new trades that we did today and on the scandal that we built kind of showing us some ones that have crossovers today uh sometimes it's hard to find a crossover today and so you might create a role that says okay looking for a crossover that's occurred in the last three days or something like that you you can modify it to your liking however it seems to work best for you all right and uh going back to our agenda yeah we ticked through each of these items on our agenda here uh including reviewing some of our existing trades showing you the management of that now barb i appreciate you helping me out in the chat you've been so busy i do appreciate that but i've got some i don't want to call it homework but i want to call this apply what we've learned and you know what i made a typo here this should say a 5. i don't know how that zero got in there okay find a 520 crossover build that study set and put it on your preferred watch list if you like the dow jones if you like the nasdaq if you've got a nice long list of stocks that you prefer to trade maybe you have a list of favorites just build that study set and then look for your own crossovers and test it out in paper see if it's something that you like again this was to take out some of the discretion if that's hard for you and just have a yes or no it crossed or it didn't cross all right think you can do that i sure hope so we worked a lot on thinkorswim today if that's something that you struggle with a little bit maybe catch ken rosa's class tonight on getting started with thinkorswim that means getting started means beginning level he'll kick that off at five eastern time all right well what we've talked about today is intended for educational and informational purposes only wasn't recommended they're not recommendations of any security strategy or account type uh keep in mind that markets can be volatile keep in mind that past performance of any security or strategy does not guarantee future results for success next week we're going to follow up on some of these trades and introduce you to a different technical concept yeah coming up next barb's got it in there for james boyd trading the trend if you found this useful today go ahead and hit that the like button we didn't have a survey so you're off the hook today but if this is the kind of content you enjoy click on that subscribe down in the bottom right hand corner over here that'll allow webcasts that are coming up as well as some that have have already taken place that that filters into your information for maybe a webcast that you're interested in seeing so have a great day everyone we'll see you next week bye [Music] you

2022-08-07 10:18

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