A stop loss is an order to sell a security or commodity at a specified price in order to limit a loss. You have two options when it comes to placing a stop loss. Percentage Loss Technical Analysis The first option when placing a stop loss is determined by a percentage loss per trade. Let’s use 25%. This means you will never lose more than 25% on any single trade. If you’re average entry is $100, then $75 is your stop loss. The next option is technical analysis based. You should place your...
over 1 year ago • 1 min read
Check out this Weekly chart: ARRY beat earnings last week and price is up 32% the past 3 trading days. Most of the market was red last week which shows incredible strength. This weekly chart shows a clear inverse head & shoulder, a bullish chart pattern: Looking back at the weekly ARRY chart, 25 will be a huge resistance level. If price can break above 25, we could see new uptrend which approaches ATH at IPO levels. A break of IPO & all-time highs is a major move in new tickers. Big things...
over 1 year ago • 1 min read
How to pick an option contract in 3 seconds: As an options trader, build your watchlist around liquid stocks. These stocks have weekly expirations, tight ask/bid spread, and high Volume to Open Interest ratio. For an example of liquid contracts, look at AAPL’s options chain. Assuming you are trading liquid stocks, here is your criteria: Pick an expiration date. For intraday trading, think less than 15-minute timeframe, you can use same week or next week expiration. For daily swing trades...
over 1 year ago • 1 min read
ROKU crushed earnings Friday, July 28 closing +31.41% for the day. Anyone who bought call options the day prior saw insane profits. But buying options prior to earnings will give you less than a 50% chance of profiting. Here’s how to trade earnings: Set your levels on the 1-Day & 1-Week Timeframes prior to Earnings release Wait for Earnings Result before taking trade Identify pre-market highs & lows especially on gaps Use smaller intraday time frames to enter trades & identify risk levels See...
over 1 year ago • 1 min read
Quick trade idea. I just bought ~9.4k worth of AMD shares at ~110.50. See Weekly, 2D, 1D charts below: 1D: https://www.tradingview.com/x/IP6ZWeDM/ 2D: https://www.tradingview.com/x/Z7N7Q13P/ 1W: https://www.tradingview.com/x/oPyCIkGX/ Stop: ~107 Target: ~130 This is NOT Financial Advice.
over 1 year ago • 1 min read
Catching bottoms is a loser’s game: It’s extremely difficult Opportunity cost Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen. Scenario: The amateur trader buys the bottom of Stock A shown below for $10,000: The professional trader trader buys the retrace of Stock B shown below for $10,000: The professional trader sells 2 days later for +20% for a $2,000 profit and enters another breakout trade with original position plus profits of...
over 1 year ago • 1 min read
