Review of Swing Trades | Connie Hill | 10-29-19 | Technically Speaking: Trading Stocks & Options

Review of Swing Trades | Connie Hill | 10-29-19 | Technically Speaking: Trading Stocks & Options

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You. Good afternoon I want to welcome each and every one of you to our webcast today on, technically. Speaking trading. Stocks and auctions you. Know sometimes the hardest part of trades is managing, the trade knowing. When to get it out. Can. Be a little bit trickier than knowing how to get in so, for our purposes today what we're going to do is, we're going to spend a little bit of time on. Seeing. Some of our, trades and how they've developed and, kind. Of doing a management, review of those traits, so hold on we'll go through some brief disclaimers, now, we'll get down to business. Options. Are not suitable for all investors as, a special, risks inherent option. Trading may. Expose. Investor's, potentially. Rapid in substantial, losses. Spread. Straddles and other multi like option strategies, can Intel, substantial. Transaction, costs including. Multiple. Commission's so you want to take a look there make sure you're aware of everything that could be going on in. Order to demonstrate functionality. Of the platform, we need to use actual symbols, however, TD Ameritrade does not make recommendations. Or determine, suitability of, any strategy. Or security, any. Investment decision you make in your self-directed, account, is solely your responsibility. Past, performance, of any security or strategy, does not guarantee. Future results or, success. Down. Here at the bottom we have the, Greeks listed, the. Delta, gamma vega theta, which. When you're trading options you want to be aware of how each of those Greeks could impact any potential, trade that you're in, alright, now if you have questions, please let, me know see, a few of you are logged in to the chat window which and. Have, been giving us some helpful, and wonderful greetings here so I appreciate, that. Mike, Anthony and, George Texas. Welcome. To all of you as well as everybody else that's attending here life as, well as any of them may join. Us as. You. Look at the recording, here. That'll. Get posted, as, soon as our classes, finished. As, soon as our class goes through some. Just, making sure everything's, in line with it with, our complaints, then they'll go ahead and post out medical. Charity demerit, trade sounds. 2004. Source. Or in that 15th year and enjoy, helping, you learn things that I learned along the way hopefully make. Your learning curve a little bit nicer, than my learning curve was. As I kind. Of poked around at different things here and there instead of having a base to build upon which is you, know something we encourage, you to do today.

What. I want you to walk away with is how. To review the market posture, determine. Are we bullish are we bearish are we sideways, what, should we look at most. Of our time I want to spent on looking, at our open positions and, seen. What. Potentially, could be done with, those positions again. When we're in the trade sometimes that's the hardest part we, might know our entry, we might nail the market forecast but then we. Struggle a little bit figuring, out what to do and then we're going to look at, a hopefully. We'll get to this point reviewing, a couple of new potential. Stocks. For. Trades. That. We can put into our paper money account, and follow. Alright, let's. Come out here to. Or. Thinkorswim. And. Let's. Go to our market forecast, here first. Now. On our market forecast. You'll. Notice what I have up here we have, our candles, but we also have. We. Have this section right here it. Is our market forecast. Let's. Try this again. Well. For some reason it doesn't like it let's try one other thing here. Alright. We'll see if this works we've. Got our green our. Red, in our blue lines in that market forecast the. Green Line is more of an intermediate trend, the intermediate, traders would follow and if we're trying to identify, what, the intermediate trend of the overall market is we're going to pay most attention to, the Green Line. We've got the, red line this, very, very short term it, could be like a one to two day type forecast, somebody doing real quick turnaround, trades might pay more attention to that then. We have our blue line, that. Is, more. Kind. Of in between it's, not quite as fast as that red momentum, wine but. It's called our near-term line and it's kind of like a three to possibly, 10 day forecast. Not, that anything is for sure when you're trying to forecast but, that's the timeframe that it's estimating. Okay, or reflecting. And so. What right here let's kind of clear this off for a moment our red. Line is up here in that upper reversal, zone anytime, that Green Line is above 80 in that zone then. The posture, that we're going to assume is going to be, positive. It's going to be bullish if it. Were down here. Below. 20, and especially headed, down then. We would be more bearish on it and so, as long as this green line is up above the reversal, zone we're. Gonna be bullish alright, so right now as we. Look at that we're gonna be bullish in fact let me zoom in here just a little bit so. You can see the, red line, I'll let you know is down, towards, that bottom reversal, zone it could reverse at any time could, even do with that before the day is over here. All. Right let's go to our next stock they're actually index we're. Gonna look at the Dow Jones it. Looks, similar to, SPI, or, SPX. Except. Out and I forgot to mention this on SP x x, SP, X had. Broken. Above its resistance. Right. Just a couple of days today was the second day that it'll busted above that the. Dow Jones isn't. Quite there. Alright, it is close and, it's moving that direction on its, market. Forecast we, see the green line at, or yeah, the intermediate, Green Line is at 78. So. It's close to the upper reversal, zone where we would be bullish it's, also been. Headed, up it has a little bit of an angle over, the last few days here, just. Kind of look at this so, you can see that better. One. More, time here, we go there we go all, right on. The. Dow Jones that. Red. Line that momentum, line is way down here at the bottom of the. Bottom, reversal, zone so it could be coming up at any time and, we are still seeing. The. Index being fairly positive, even though it's not up against that potential. Resistance area. All. Right let's go to our next one. All. Right we've got, actually. That I want to do the there. We go one but look at the Nasdaq Composite first. All, right similar. Thing here, we've. Got our. Our. Green. Line up, here in the upper reversal. Zone. We. Have, the. Red line down at the bottom and it could shoot and head up at any moment okay, is it's, down there and then. We also have, right here at resistance. Today. Is sitting at resistance, on the Nasdaq so what could occur one, or two scenarios well actually one or three scenarios one of those bullish, breaks. Through the resistance, continuing. About bullish momentum. -. It hits it as resistance. And comes down bounces. Down doesn't, mean the trend has changed it just means it's pulling back or, you, can sit here go sideways for a while and many, times that's what the market will do is go sideways but, our, overall posture, as we look through this we might determine, in essence.

The, More than anything, that. The. Market is still bullish for us and we ought to look through, that lens as we look at our individual, trades, now. I want, to review first of all the trades we did last. Week, okay. Let's come over here. It's. Going to read Jenner on pharmaceuticals. And. We. Had here, I'm going to kind of zoom in a little bit here, actually. Let's. Go ahead and. Let's. Get rid of our moving averages, here and just kind of clean up the chart a little bit. And. We have a, last, week what we were seeing was, a bull flag we. Have this nice. Pop. Pattern. Boom boom boom, almost. Very, vertical. See. If I get you can kind of see it today I have it outlined. In. Kind of a purplish, color, alright. It, Peaks and then, we get our our. Pullback, here, this. Is kind of our flagpole, that we look at, it's. Coming down here then. Last week when we were in class the. Stock, the, price of the stock had, broken above this. Diagonal. Resistance, line here, and it looked like sure enough that it was going to be an entry for a bullish, trade. Alright. So this day here is our flag breakout, we. Couldn't confirm it was going to stay there at the end of the afternoon right. We weren't gonna be together so, we went ahead place, that trade in our account well. What. Happened, was by the end of the day it actually pulled back a little bit back, some traders might not have been certain, or felt comfortable to take a bullet straight on it because of the extent that it pulled back fact. That it had here a reddish. Bearish candle. But. What's happened since then well. It's, continued. To march up here hasn't it yeah. We've had one two three four five positive, days. Of, price action on this now. When we set up the trade we. Had. We. Set a target and we set up a stop loss we. Said hey if it hits the target first great, we'll get out of the trade it's the stop loss first. Will. Feel a little bad about it, but it's not the end of the world we've. Got to protect ourselves in these positions so. Let's see where things stand right, now we're, still in the trade if. I come and put my mouse on top of here, it's. Gonna say all right we have a target at 3:33, we, have a stop loss at 290, 485, it, hasn't hit our stop-loss, I want to kind of draw in there to. 94 85, where that would be. Let's. Grab a price level. To. 94. Kind, of get it in here 294 85. Okay. That's gonna be close enough 87. Alright, that is where our stop loss is now. Now. In terms of managing, this trade there, might be some of you don't feel like okay, we'll just leave it there not gonna do anything about it we already decided where we wanted to get out which at that time was. A, little. Bit below the low of this day. Well. The stock is up to 312, now, all. Right so some of you might be inclined to say you know maybe we could move our stop loss up so, that if it does retrace, and, doesn't. Go to the full target, that we're expecting, maybe we could come away with somewhat, of a game now. I'm going to scrunch our price here. And. I want you to see where the full target, is. Right. Here up at the top that's where we put in. 333. Just a little, bit shy at the top of that target. Area. Now. As as you look at this I want you to have, a conversation with yourself I can't, be there to have the conversation. But I want you to ask yourself. If. It. Does not go and hit this target how. Tight would you want your stop-loss to be to, lock. In some games. Now. One of the things we can do in managing a trade if a talk if a price of the stock has moved halfway. To its target, we. Might want to bring up that. Stock, loss to, the, break-even point that's. One thing we could consider I don't. Know how many of you have done that before or not but we may consider doing that here even though, it's. A little hard to tell if, I were estimating. I would say maybe we were only a, third, of the way to the target maybe. Halfway to the target would be up here, well. Let's go take a look at those numbers and what. It might look like, like, let's, go over here to our monitor. And. Let's. Get. Our. Trading. With stocks and options open, here, here's. Regeneron, we were, placed, in the raid at. A. Price. Our, stock price was. Get. The right column. That's. The option let's, get up here for the stock, the. Price here. Oh. Actually. Do you know what I I was mistaken here, I was looking at this quantity of 141, on in info.

And Was, thinking we had a stock option in Iran and a. Stock. As well as an option, for, our trade and in reality, we. Have just. A November, nineteen to ninety call we. Have 17, days left until VAT, rate and, what we did is we put in a no Co order, based. On the price of the stock all. Right so. We're. Up on the trade right now about six, hundred forty, five dollars, that. Option, we paid. 1984. We, can see right there right, now the price of that option is up to 26 25. All. Right so, the question would be how would you feel about changing. Our stop loss to, may be lock-in a little bit of gains in. The event that this, the stock retraces. And knowing we, don't have a ton of time in this trade it's one of those we said it's, a fairly short term, these, swing options, we expect them to be very short-term trades not. That we get it right every time not, that we can anticipate everything. That the stock will actually. Do but we look for signals as far, as what it's likely to do what it might do all, right so, let's do this. Let's. Come over here I want you can vote with yourselves, you, know have a conversation with, yourself or the dog or whatever is in the room with you maybe it's just a computer all. Right but just kind of go through that process of what you think might be the best thing to do whether. We end up doing that in our class or not and feel, free to chat them in you're. Welcome, to do so, let's. Take this hour hour mark, price right now is, 26. 25, our cost was 1980. On the, price of the option. What if we were to say we're going to leave our target, alone at 3:33, and, that. We're going to adjust, our stop-loss, not. So much based on the price of the stock although we could we. Could if we wanted a just it to be the price of the option we, could go either way there let's. Go back and look at our chart, you. Come back over here to our chart I. Drew. In here approximately. Where. That would be let's kind of stretch. This out a little, bit because our targets not up here till 333. What. If, we. Were to put in, the. Stop-loss to, maybe be the low of a couple of days ago, okay. Not totally, let it go down here but, maybe look, at a couple of days ago some people might use, last. Night's low in, the, market that where the market is today it's open and then, after, that's the case after. The market closes today they might use the low of today to, cinch up that, price a little bit for, our purposes, today that's, the one we're going to go with all right so the low of yesterday. Was. Let. Me get on the right candle, here 303, 22. They. Might go a quarter below that they might go a dollar below that they. Might give it some wiggle room instead of that exact, dollar so. For our case let's go down a dollar this is a pretty expensive stock, let's go down to 302. 22. And increase. Our stop loss from that to 94 spot. Okay let's go ahead and do it. We're. Gonna come up here to our working orders, we're. Gonna see our two Regeneron, here. And let's. See which one of these it is okay, it's this particular one, so we. Are going to we. Hit. Escape, it's. Not gonna let it do, it if I just click on that but. We have to edit it so I'm going to do a right mouse-click I'm. Gonna do cancel, replace order. We're. Gonna come over here to the gear just like we did when we set this up except. I grabbed the wrong one this is our get order I apologize. I thought I'd grab the right one. Let's. Come up here to the top one. Okay. That is the right one right mouse click. Cancel. Replace order. Come. To the gear, sometimes. It seems like a lot, of steps it really isn't too bad now. We're going to change the price in here instead of our 294, and change, let's. Get rid of all of that we're. Going to put in 302. 20. To. Lock. That in place 302. 22, so, effectively. We're, saying we're gonna lock in hopefully.

Some. Gains on this if the, stock goes sideways for a while we may see the impact of time decay, which, could decrease, some. Of our profits on this train so, it will still be when you'll want to monitor, day to day because. It's made a significant. Move perhaps, you don't want it to turn into a loser when. It at one time has already been a winning type, of trade so let's go ahead let's hit save. And. We're. Going to hit confirm and sound. Review. Your box make sure it represents, what you want notice, any, transaction. Fees that might be in there go, ahead and hit Send. Alright. It killed, it, cancelled, our old stop-loss. Order put in our new one fact, if I go over to monitor, here yep we're gonna see it right up here at the top is, still cave, keeps, and maintains that Osio one, cancels, other. Order. Type. Anthony. Says what's, the trailing, stop now, we, actually Anthony. Don't have a trailing, stop on this particular one we, set it the, option to be based off the, price of the stock and take its exit, signals from, the option price not or from the stock price rather than the auction price okay. This, particular one, we have not used a trailing stop order, there have been some orders we've used in the past that. We see, here, in our price. Column, of our working orders, we, can see some of these that are trailing stops, let's, see. Here's. One it says TR. Down. 3%, TR, which means trailing, stop we, may have another one on here here's another one with. Starbucks that, it's an 8%. Trailing. Stop loss right, now it would get stopped out of the trade at 80 27. These. Are particular ones that we're gonna look in our session, today but yes you certainly could use, a trailing stop loss as, well. Okay. Very. Good Anthony it is actually, an options play but. It is based on the price of the stock versus, the price of the option alright. Appreciate you asking the question. Let's. Look at our next one here. We're. Gonna go next to. Walgreens. Boots. Alliance, all, right these are the Walgreens, stores at least in our area they're called Walgreens, I don't, know in your area if they're called something else we. Had a really similar thing here going on we. Had our nice flagpole. Running. Up there and peeking we, had it pulling out, and. Then the day we got into the trade it had broken out, of the, flag now. One of the things that we'll do in terms of monitoring, and, managing. This trade is if. The price of the stock falls. Back, inside, this flag, consolidation. Area. Typically. A, technician. Would consider, that the pattern, is broken and that, they might want to get out of the trade so. We had hundred. Shares of. 5549. We. Had. The. Price of the stock right. Here on, this day. Really. Broke into. That area now. I took some notes I went back to look and see what we had determined when. We went through our class. And. We. Had a target, of 58 50 and a stop, of. 54:27. Well. On this day the, price of the stock the. Low is 53. 55. Naturally. That's lower than when we put the stop loss at and. It should have stopped us out of the trade. However. There, are some times when paper money isn't perfect, you've, probably noticed that as while you're practicing you're doing things in, this particular case, it did not trigger our stop loss, might. Come back up paradorn monitor, page Walter we're gonna see we're still in the position with. A hundred shares, and, we don't, see any selling, orders off to the site sometimes. We can't explain, what's happened, in a particular situation, maybe. You knew you were supposed to get startup but the system didn't stop you out. So. You move on from there and you say well I didn't get stopped out, what. Should I do now so. As we go back to the chart here and I'm glad we have a little bit of reality, real-life. Scenarios, here that that occur because once in awhile that does happen to you all. Right so, the question is well should we stay in the trader should we not be in the trade. Alright, well. Maybe the answer is the, stocks performing, well maybe. We go ahead and set this up again, on the osio, order maybe, again we put in the target, and we, put back in this stop and hopefully. If the stock drops, there again then. It, will stop us out of the trade like we expected. It to and intended, for it to do when, we put on the Ossie order last, week all. Right so let's do let's write some numbers down here our. Target. Up, here, is. 58. 68. That's.

The Very top, of the flagpole once, we duplicated, it let's. See what we did last week we did we, lower that a little, bit 250 850, so, has just shy of the top part and. Then. Our stock loss we, had put at. 54. 27. Let's see where that is 54. Wow. Right about where my mouse is, 54. 27. So. The question is does it make sense to, put that stop-loss, there or, does it make sense to put it, in. A different area based on, something else because we do actually have. This. Looks like it was a positive, day. So. Two days ago positive. Yesterday, technically. Even though it's a red candle, it closed lower than weren't open still, is a positive, day and then of course today. The. Price of the stock is up a little bit higher than it was yesterday. Well. For. Purposes, of our class we're going to keep the target, at. The same price. Which. Is just a little bit below the top of that flagpole. Because, stocks. Don't always go to their target, we love them too but they don't always go there, then. Let's put our stop loss. What. If we were to go just a little bit below yesterday's. Low. Ok. Yesterday's, low, was. 54 93 what if we were to put our stop loss here, at. 54. 83. Some. Of you might feel like that's too tight, some. Of you might be good with it, let's. Go what's what was today's low, today's. Low is 54. 84 which. Is a little. Bit lower. Let's. Go a little bit lower than today's low 54, 84 let's go, 5474. All. Right we're gonna step out OCIO order up again. As. Though maybe we're just adjusting. It okay. Because there's nothing in there right now. We're. Gonna come over here to. WBA. We're gonna say create closing, order we're, gonna say with an O Co bracket, this. One because it's the stock it's not an option we're, just gonna fill it out on the screen that we're on right here so our target. Is going. To be up at 58. 58. 50. Our. Target. That's. Our target our stop loss is going to be down at 54. 74. Remember. We're never guaranteed. To be out of that price that's, we're expecting, it to trigger but. If some news happens, and the stock gaps down it might, jump over that price but it'll trigger a market, order after that's the case, all. Right so we've got that we're gonna make both of these GTC. It's good till cancelled, typically. That's gonna be in the six month area hopefully by then you're either done with your trade or you've already adjusted your, target or your stop whatever you need to do and. Let's. Go ahead hit confirm and send, review. It make sure it represents, what you want and notice, any transaction. Fees and. We're gonna go ahead and hit send. All. Right now, that should be at the top of our working orders, now the. W8w, be a. Ocl. Order and sure enough it is it's right there, working. For us now there's, one that I want to show you here quickly, I don't want to spend a ton of time on it but, it is one of the trades that was our last trade that we put in on our session, Juliet. Now. What, happened, with Gilead, we had a target, we had a stop, it, was. The very last trade, I showed, you as I. Went back and reviewed the recording, as it turned out I never hit. Send. Probably. Has never happened to you before we didn't hit the send button in my case I didn't I forgot. To hit the send button. This, is what would have happened, to us how I submitted. This submitted. That order with the target and a stop. Here. Three. Days, after. We got into the trade boom. The, stock just fell, didn't. It man it had a nice gap down I don't see that well. I guess this was her names right here. Just. Kind of, right. There so. The day after earnings, apparently, they disappointed. And, the stock gapped, down and, like, I said if we had a price there which we did it, would have gapped, over that price you, would have triggered the market order to go at that time okay, even. Though maybe realistically. We would want our stop to be you know up here a little bit higher but.

Since I didn't hit push, the send button it didn't, go in nonetheless, we. Should have been stopped out of that trade it's not a lot of management you can do with it because. It should should, be should. Be gone but. Nonetheless it's not even in our. All. Right, let's. Look at. Something. For the future, for. Us to take a look at, I. Wanted. To if we have time to possibly. Look, at some, potential, swing. Trade setups, right now. First. One we're going to do. Let's. Go to UNH. And. Let's. Want. You to see this a little, bit longer term here so let's, let's. Go six months daily. And. Let's go take a look at this one on the big board. Alright, UNH. It. Peaked up here at 268, back. Enjoy ok. It hasn't, approached. That again yet, right, had some lower lows lower. Highs started. A little bit of a downtrend, found, some support here about, 2. To. 13, or so maybe to 12, found. Some support in there several days and now, what is it doing it's making higher highs and higher lows, alright, so, this here. Could. Be considered, maybe a potential, flagpole, I'm, going to draw it with my finger, where. The stock runs, up it. Peeps and then. It pulls back two. To five days is ideal. Alright, but, it. Might not it might go longer it might go eight days okay, just know what the ideal is and what you're shooting for, okay. Let's. Zoom in here a little bit closer. So. We have our flagpole, here. And, some. People may have think okay. As we, look at what's going on today the question comes up is it, too late is it too late to get into that type of a trade actually. Here yesterday it was a small, move that it made to break, out of that flag pattern, if. This is a super. Long candle. Or. It gaps up in a run so you might feel like you're chase you know too much where. We are right now, the, stock is up today, less than 2%, that's, not a huge, huge, move. To try to feel. Like you're past it okay so some traders might feel comfortable, doing. That let's. Measure it out let's put her on the screen see what our target, and stop-loss. Is, going, to be in that case. All. Right we're going to draw some permanent, lines here, so I'm going to come up here to. That, looks like about 20, points. A little bit more almost 21, points, we're. Going to draw our. Consolidated. Flag. Looks. Something like that. I'm. Going to scrunch this down because we're going to need more room at the top to put our flagpole I'm. Gonna do a right mouse-click on, it duplicate, drawing. And. That. Didn't work out so good. Let. Me put it in another. Stock. Just so we can get it right. And. Zoom. In on this again all right, I'm. Going to say duplicate. Drawing actually. It's and we've already got it there so, I'm going to say. Duplicate. I'll, say that trendline. Will. Get the squished down here again. We're. Going to take it. And. Move, it to, the point at which it breaks out now. That's, a fairly, tall flagpole isn't, it, I'm. Going to put my master it's going to tell us the highest point here is, 265. 29. Some. People might go for that full target some people might back away from it a little bit and say you know let's give it a little room and not be totally. Optimistic that it's going to make it there, all. Right so that's. 265. 29 let's go to 64. 29. It'll. Be backing, off $1 off the top. Now. What about a stop loss here, where. Should our stop loss go well. If the price of the stock falls. Back, in it's inside, our flag, flag. Consolidation. Air that's. Where most technicians, will say the, patterns broken, it doesn't apply anymore we, need to get out of here and so many times people will say okay the, day before the.

Day When it broke out let's take that low that's going to be this candle, here and, we might just go a little, teeny bit below it so. The low this day is 240, 215. We're. Going to go a little bit below that just let go let's just go 242. Even. All. Right and then. We can do this trade we can do it based on the stock we can do it on an option, we're, going to have a mixture, of people in this class that know how to do stocks and they'll how to do options. You, want to allow if you're going to do the option. Enough. Time to make this distance, as you, look at the trade page. And. Let's get our UNH up as. You. Look at this trade, page. UNH. Has already traded twelve two million shares today, so it's pretty liquid, it. Has some weekly contracts, available which usually applies if it's something that's a little bit more liquid. November. 17, days might be a little bit too short of time because. We. Need it to run and not. Run into time decay issues, okay. So on a swing trade sometimes. Traders. They, might do a short put on it they might buy a long call on it looking, for it to reach that target, you. Don't, have to do those particular option. Trades though if you, are a person that's more comfortable doing. Spreads, whether it's a long or short spread, feel. Free to do it okay. As. I'm talking about different trades these are ones that people commonly boot do but you don't have to do it exactly, let's. Come down here to the December 20 options and let's just take a look. Here's. My column, on the call side of open interest we, can see thousands, in there we can see. Fairly. Tight spreads not as tight as I would want to see but when you have over, 2,500 contracts. It should be really a, narrow, spread, there, let's. Go ahead for our purposes, let's do. The, December 250. The price of the stock is slightly above that if you, wanted to be more, conservative. You. Might go in the money a little bit farther and maybe do the 240. Which. Has 2700. Contracts, so no problem, with liquidity there either so I'm going to just do a right mouse-click. But. I'm going to say by, custom. With. Osio bracket. Notice. It puts down here first triggers Oh co so, the trade has to go in before either of these targets, are met we're. Gonna change both of these to market. Orders. This. Bottomland, will still act as a stop loss don't, worry that it doesn't say stop we're gonna base it on the price of the. Stock. Here so the first one we're going to make the target and, we're gonna say symbol. UNH, system. Usually likes the mark we, want the price of the stock to be greater than or equal to. We're. Gonna do two, 64-29. Make. Sure that's in there 264. Very. Good. If. It, gets to that it's gonna trigger a market, order we, need to change the time in force to, be good tell cancelled, and. Let's. Go ahead and hit look. Down here the. Security is less than or equal to we actually need to change this. The other way so it says greater, or equal to, just. Kind of look down here so. You can see that we're, gonna hit save we're, going to do the next one this is going to serve as our stop loss. We're. Going to do the same thing here the price of the stock gets. Less. Than or, equal, to. Two. Forty two, point. Zero zero no. That sell it's kind of a little bit hard to see exactly, what I've typed in there because I made, the font bigger so, you can see what was going on so kind, of scrunches, that number a little bit, we're. Gonna do good to cancelled, here it's, going to be based off the market price because we don't know what the, right the rate is going to be when it finally hits top price if it does we don't know which one will hit first, but. Here we see that it is. Less. Than or equal to which it should be on our stop-loss, we're going to hit save. I'm. Gonna hit confirm and send. Position. Size wise. Typically, we might not want to risk more than, 50% of the price of the option this is almost $1,000, option, so, the risk here is about four hundred and sixty dollars if. We were using that 50%, but. Because we're basing it on the price of the stock we're not going to build it in based on the price of the option that's, just kind of informational, that. Some people might want to know let's do confirm and send let's. Review, it we're. Going to sell it if it gets to. 260. 429. The target, or, below. At 2:42, because, to that price our roller and. Just check any transaction. Costs, let's, go ahead and hit Send and now. It bought that, option, and now we've got our orders sitting, out there to execute when it's time, now. We've spent the last two weeks talking, about, swing.

Traits All right swing, trades might be something that's new to you it's, actually one of the first things that I learned when I was trading, that. I enjoyed, so much was that, anticipating. That short time frame that the. Stock was expected. To go obviously you don't know if it's going to do it or not but, if you're somebody maybe isn't as well versed in swing trades there's a great class that's. Being taught I'm going to go to the education. Webcasts. On. Tuesdays. Which was a little earlier today. John. McNichol. Teaches a class that is exactly, that swing. Trades it. Is he. Taught that class first thing in the morning at 9:30 Eastern, I'm. Just gonna hit archived and see if it's up here already yes it is here's John's class that he taught first. Thing this morning on swing trades and that, would be a good class for you to attend, be, able to pick up on some of the nuances, specifically. With this strategy if, you're somebody maybes a little newer to, option trading strategies, some that you might appreciate. I'm. Gonna put it it's a beginner level and I'm. Gonna choose barbi. Armstrong, as the instructor, because she does a series of getting, started with options, on Friday mornings. It, is at. 11:00. Eastern time when she kicks that off and. It's just a short 30 minute class and she'll show you some of those different strategies. Including. Swing trading amongst, a lot of others, she'll rotate, through now it would be a great, class for, you get to go to as well no, I just want to check and see if we have any questions that have been typed in that I haven't answered here. All. Right I think we're good here so how, can you reinforce. What we've talked about all. Right well. If there's somebody that's paper, trading the trades as, you know as we start going through them make, sure you're looking at them a whole lot more often then. What we look at them in our class right. We're looking at it once, a week now I'll try to see some things during the week and kind of track it a little bit but. For you you wouldn't want to look at it maybe twice a day okay. Just make sure you're. Staying, on top of what's happening, with it because. Swing, trades are really you're trying to see. A momentum, or potential, momentum, generate, then, you're just trying to get in the way of it with the trade either an option trader a stock train, alright. Until it, gets up to that point that one, it hits a target that you expect, it or two. It, starts, to lose momentum and you, start to see some some. Signals that it's running out of steam and so, you say okay I'm short of my target but I did have a nice little run and then, you lock in your profits, with it okay. That's what you're going to want to do so to practice. You. Know go through and see if you can find three, or four trades. That. You look think, have good set up opportunities, and good entries, which we've talked about in previous sessions, and paper, trade them in your account all the way through look. Like I said look at them twice a day and identify. Are, there places you can move your stop-loss up like we did on one of our trades here today to. Help lock in your, it's alright. Well, I do appreciate, you, being here, next. Week we, may take a little time to follow up on this particular trade, but most of our time we. Are going to spend on talking, about intermediate. Trend. Trading from a perspective we really haven't talked about much. So, far now coming up next and this will be at the. Very top of the hour Cameron, may, will have a trader, talk, question-answer. Series. It'll. Start like I said in about 15, minutes or so and you can go and you can ask him anything all, right about. Whether it has to do with the platform with it it has to do with strategies, he'll, lay out for you the types of questions that you can ask but it's a great place for you to get your questions answered where. We don't always have time to get to them, throughout. Our typical, sessions, here - like, today all, right appreciate, you joining me have. A great afternoon, success. To you in the markets and we. Will see you next week as we, talked about intermediate. Trend trading thanks everyone. You. You.

2019-11-02 16:33

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