Trade Recap Video Lesson
Pre-Market Game Plan
Entry and Exit Charts
You'll notice some of the charts have quite a bit of arrows. The takeaway for traders should NOT be to trade more. You don't need to place 50 trades on a ticker to take away a respectable profit. On these particular trades, I have a lot of entries/exits for three main reasons:
- Scaling - I like to scale in and out of trades while holding onto a core position. Scaling in can help solve a lot of the psychological trading issues. For example, I may start a position with very small size and add more shares if the stock behaves the way I expect it to. Similarly, as stocks ramp up, I will start selling some of my position to lock in profits.
- Low Float Shenanigans - When I trade low float stocks, I don't always want to show my full hand. When traders take the opposite approach, they draw attention that may negatively impact their trade ideas (i.e. "there's a 100k block at $2.5"). If I want to take a large position, I'm not going to put up a large bid or buy it all at once on the ask. I'll start building it over time - same goes for selling.
- Testing Liquidity - I like to see how fast I am lifted on offer or hit on bid ... if I'm hanging out best offer for quite sometime and no one has lifted me this can suggest there's selling pressure. Likewise if I'm hanging on bid and can't get fills this can be a sign a swipe may be close, time to size down, or exit trade vs. waiting for my fills. One of my strong traits as a trader is anticipating where things can wash to and thus many times nailing the flush as you can see, however if I'm having competition for fills and getting partials that's a sign to me to be cautious.