Technically Speaking: Trading Stocks & Options | Connie Hill | 9-17-19

Technically Speaking: Trading Stocks & Options | Connie Hill | 9-17-19

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You. Welcome. To our webcast today this. Is technically, speedy speaking. Trading, stocks and options we're. Going to be focusing on an intermediate, term trading, today how. Many of you use. Some oscillators, as far. As indicators. When you, have a setup or an entry to a particular trade, we're, going to talk about that a little bit incorporating. That into the, trading rules that we've, been working with so hold, on for just a moment we'll go through some important, information and then. We'll get down to business here. Thank. You Ricardo letting. Me know that the, sound. And video are working, well right now that always makes me happy. Alright. Options. Are not suitable for all investors as. A special, risks inherent option. Trading makes. Those investors, to potentially, wrap it in substantial, losses. Probability. Analysis. Results. Shown, such. As the probability, of an option, expiring, at in the money or, theoretical, in nature not, guaranteed, and do not reflect any degree of certainty of, an, event occurring. In. Order to demonstrate functionality. Of the platform we need to use actual symbols, TD, Ameritrade does not make recommendations. Or determine, suitability of, any strategy. Or, security. So, any investment, decision you're making your self-directed, account, is solely your responsibility. Past. Performance, of any security, or strategy, does not guarantee future results or. Success. Alright. There's. Just a little bit of information about me, thank, you. Besides. Ricardo, we've got Andy. And. Tom. And, mr.. Bingo. All. Right giving, us some shoutouts of friendliness, appreciate. That today yeah. I've enjoyed being a co-chair with, TD Ameritrade. Since. 2004. It's coming up on 15, years here it's amazing to me, but. When I started, maybe I knew like this much about trading, and investing, and of course the. More you get into it the more you learn and you realize you stay there even more to learn and. I enjoy. That aspect of being, a coach and sharing, some of the information with you that I've learned over the years now. Today, what we're going to focus on as, the. Slide said, in the very beginning we're, going to be looking at intermediate, term, trading, setups, and then. Also the. Entry, signals. And how they're different, we're only not going to fit focus. Too much on anything bearish, okay. But we'll look at that set, up and then. We'll well. We'll talk about intermediate, term trading then recognize, the setup then recognize, the entry signals and, we'll be doing our work into thinkorswim platform. I really, hope all of you are working. With it and trying to get better with it, as. Far as. Your. Comfort, level the. Way you get comfortable with it is continue, to paper trade continue, to click on you know those buttons that you think are going to help you do what your you're, trying to accomplish here. Oops. That's not good let's get that back all. Right. So. Let's talk about intermediate. Term, trading. And setups. Intermediate. Term trading, tends. To last, and. Your intent, of it is that it lasts several, weeks to, several months. It's. Not exactly, six weeks or, six months it can vary but as long as that trend, that continues, to make higher highs and higher lows your. Plan, is to stay in the trade, alright. So typically it's not a quick in-and-out and that's not your plans going to be with it. Intermediate. Term traders. Typically. Define, their entry. Signals, a initial. Exit signals and trade management strategies. Before. Entering. New. Positions, what. Does that mean it means. Typically. You'll plan out everything. What. Do you need to see before you get in okay now that you see it when do you pull the trigger as well. As okay how am I going to manage this trade where should the initial stop plus go all, of that has to be figured out before you pull the trigger on it alright so try to get in the habit of doing. That. Intermediate. Term traders, often use. Indicators as part of their trading strategy, we're. Going to focus on that a little bit today because I'm going to introduce you to an indicator, that you. May have. Heard of before you may have used before but many of you probably not it's, called the direction momentum, indicator, its, abbreviation. There is DMI. Alright. As we get to this bullet. Point here, intermediate. Term traders, usually attempt, to trade the prevailing, intermediate. And longer-term. Trends. But, don't necessarily pay. Too much attention to, the short term but. They will look for short term reversal, patterns. All. Right. And again, kind of suburban chess setup is what, the stock price or the chart looks like prior. To an entry and an indicator, can be part of that and you want. To decide what that needs to look like and then, decide what gives me an entry all. Right. We're. Going to take a look at it several examples, here now this, is something you're probably familiar with, that.

You're. Saying seen something on the chart as far, as the. Price goes right. You see. Over. Here we see basically a breakout. Above that, 160, resistance. Pole. A run-up, after that and then a pullback here and. You're. Waiting to see what, else. Needs, to transpire, before you have an entry so. This could be a potential, setup all. Right and, notice. In here it also has some information about. The. MACD, which is the oscillator, that was used in these slides we're going to use that DMI, instead, like, I mentioned to you. Now. On a bullish, indicator. Criteria. For. Example stock, price moving above a moving average that could be one of the criteria, a two-line, MACD, above zero that. Could be another. Criteria. Indicators. To give you a crossover. Signal, if you're looking at moving average crossover, so you could look at those and so, these. Things all, playing here, together something. You might be familiar with is just. Doing a simple stock. Bounce and. A simple breakout, and then some people will use that young conjunction. With that additional, oscillator, that they, have their mind on all. Right so potential, entry signals what. Has to happen tomorrow, or in the future to make me take action, meaning, you see the setup you're, watching for it but it what, has to happen before you say great I can pull the trigger so, typically, you're looking for a breakout, which. Would have taken place here on this, candle this. Big. Green candle, going above resistance, how. Old can the signal, be and still be valid do. You want to see this Mac day within MACD. I should say down here, it. Looks like one two three four. Five days, the. MACD, was above this zero line here, and so you want to decide can. I am, I gonna restrict, my a my, use of that to only the first day it appears or, maybe, the. Second or third day it appears are you good with that those. Are kind of things each trader is going to want to work out for themselves, right. Some, of you might even say. You're, gonna look at the MACD, rolling, up towards, zero and, you.

Might If you're getting to. Be more aggressive in, your entry, strategy. Then. That's what you might consider doing is kind, of watching. The trend of the MACD, and seeing. What, actually happens, there okay, so we've got some, things to figure out here and we. Will talk through them. Alright. Considerations. For intermediate. Term trading, one. Trading. The trend. This. Long and that's not long term trend but you can lead, in two months takes patience, if you're, not a patient person you, I have trouble with this strategy. Or. If you're a very busy person and you don't look at. Your, charts regularly, like daily. It. Would be good if you could look at it once. A day maybe at the end of the day after after, the markets closed if you need to do that but. It still does take patience. Accent, signals, for intermediate. So long term trading may. Not occur, until the stock has dropped significantly. From. Its initial high prices. Right. So follow. My mouse here we've got this higher highs higher lows. We. Got a peak and, then, the stock starts to pull back let's. Say you notice, that it's pulling back prior, to the previous, low, so. You notice, in that you're starting to think a weakness, is creeping, in but, maybe your stop-loss is, placed down there you. Wouldn't necessarily, have. An exit signal until, maybe it violates, support, by 3% or whatever percent. That. You've determined there in it and it might not be under that exact, horizontal, support maybe you're going to use a moving average okay. It's, just the idea you're not getting out at the peak typically. You'd, be getting out after the stock has reached that peak and pullback now. Stock prices, may, gap down below, that your exit, that you have placed. And. That could create. Greater. Than expected losses if your stock price, jumps. Over your stop losses one. Can that occur. Almost. On any time but. Times you might see that frequently, might be at an earnings announcement, that maybe wasn't, well received it, could be a government. Issued. Report, that, impacts, a certain industry or impact certain stocks it, could be maybe. Surprised news comes, out, that. Wasn't. Expected, and you know there's a lawsuit or, one. Of the majors CC. Positions. In a company maybe somebody, resigns, or moves to a competitor. Does something, like that they create, big news certainly. The stock can go up down and you probably have seen that when. The stock does gap down sometimes, the trend may change, alright. So you want to be. Mindful. Of that. Let's. Go out to our thinkorswim here. Now. Right, now I have on the chart, one. Year, I'm. Gonna I'm going to shrink. This down a little bit we have the 30 period, moving average which is the red line and then. We have volume that, purple line down there is just my average volume so very simple chart but. One of the things I told you that we're gonna start incorporating into. The system today is not only, looking, at candle. Activity, but also looking, at us oscillator. Activity, so. I'm gonna zoom in here let's maybe change, this to six months instead oh. This, one is actually two years not one year let's. Go to six months so quite, a bit. Quite. A bit less. For you to see and let's. Show you initially. How to put on that DMI, all. Right it stands, for directional. Movement. Index. Now. I'm going to just click on my out of studies and I'm. Gonna type in here. DMI. And, anything, that has DMI, in the title comes, up as a choice we. Are simply going to use this really boring when all it says is DMI it's. Actually not that boring, but just, the simple name, there's. Our DMI, and I'm gonna move our, volume. Down here, so it's on the bottom and DMI is closer to the price and you. Can do this next step you can do but either by double-clicking or selecting, on the gear the, gear takes you back to, this. Screen where you can set things up a little bit more to your liking, all. Right now. The DMI. Is made, up of a, DI, positive, and a DI negative, actually, let me show it to you before we configure, it. Alright. The. DI positive. Is, green, and you might just want to make a note of that because we're going to look at a lot of charts here the. Di -. The directional, movement, index, that's. Going, down that's, negative, momentum. That's. Gonna be purple, and. Then, we've got another line in here that's red that's, called. The. The X wine. And. It. Is used to show the strength, of the trend and so, let me show you how this works the DMI and. Will just keep the stock up here for a minute. When. We have the green. DMI positive crossing. Above, the. Purple, di, negative that means that, the bullish, or the positive momentum of the trade has, taken over the, negative, or purple momentum, now.

You Can, see back here purple. Really. Was. Up. Here for a long long time and what that meant is that the bearish trend had more momentum, and we can see by the price activity, here that, yeah it makes sense the price of the stock was going down low so, it makes sense that the. DMI. Negative. Was the one that was really controlling, things now, I'm gonna go back to our studies here and let's. Go, to the gear bring this open and I. Want these. Lines. In, this in here, to be fatter. Whiter, okay. So. Here's this tab here, back let me just kind of point that out so that you can see. And. Let's go. Let. Me get rid of something, here there, we go right. Here is the width. Okay. That's the one we're gonna focus on and, this. Right here is telling us which. One we're looking out right now is the directional. Index. Positive, is essentially, what they call it well, let's make it whiter easier. To see we're gonna change that width to a five, okay. Then. We have our D I'm negative, that's, the one that's the purple and. If you wanted you could change colors in here I'm just going to leave the default colors we're gonna make that a five as well and then. We have our ATX, line which. Is the average directional. Index, and. We're gonna make it a five, so. All of these lines are going to be really big and bold and hopefully. You should be able to see them without. Squinting. All. Right we, don't like it when you have to swim. Now, we're going to look at a, couple. Things one. Thing I should mention to you this red ADX, line I. Mentioned. It it, tells you the strength of the trend but. It does by its numeric, number. You'll. Notice right, here. Let's. See if I can get it, in. This particular little, section. Right. Above. In, the upper left-hand corner of, this this. Little slice along here, it's. Going to tell us what. The value of the Green is what, the value of the purple is and want the value of the red is and. I did that when I was kind, of out here on this last day but. It'll do that as you're as you're moving along here, it'll tell you for whatever day that your mouse is on alright. So. Today. We. See, the. Green. Barely. At least right, now but markets, not closed. The. DMI. Positive. Is 29. The. DNA, negative, is 28, so they've just barely, crossed. One, over the other and, the. Red line is giving a value of 21. Now. In order for the. ADX to signal, 8 I'm going to use quotes here a strong, signal, usually. That a DX needs to be above 25, if. It's, below 20. We'll just flap say, it's weak any number. Below 20, if. It's between the two numbers 25. And 20 then that's kind of where you have your grey zone and of course the closer it is to 25, the, stronger it's going to be closer, it is to 20, the weaker, it's going to be all, right so some people might say well if, it's close to 25, the ADX is close to 25, you, know maybe it's 23, or higher than they might go ahead and say that could be their signal the. Ultimate, entry signal that you're looking for here and feel free to send me any questions, all. Right that come up as we discuss this. The. The key here is you're looking for those crossover. Days and, see. Them some people will say ok we're going to take that as one an initial matter, and then, the second international. Measurement. Might be and, this is where people, might decide to use it is if. That ad X is positive and, they're. Getting an entry, signal here. Up. In the price area okay. We're going to look at several examples here, let's. First go to chart. Snps. Synopsis. We. Can see overall stocks. Been, fairly. Bullish hasn't. It let's. Just kind of zoom in for part of the time here, we. See. That. The. Previous, low. Was. Right there, and now the new, low is, a, little. Bit below that it's a little bit below that a thirty day moving average here as well so. This low is slightly, lower than that previous, low so we'd kind of take that into consideration and, then, what are we seeing right here this. One you can see a little bit better that the green positive, is crossing. Above. The. Purple. Negative. Okay, so that's telling us hey the positive. Momentum is starting, to move in then. We consult with the ADX and we see well what is its number we. See that it's 22. So. It's not 20 where it's definitely, weak that it's not above 25. Okay. So somebody, could say if they wanted to they can kind of use this oscillator, how they want to add it to their criteria, they, could say for. A bullish trade you positively, wanted, the green above, the purple and if you were.

Fortunate. Enough to be there at the day of its crossing or maybe the day after its crossing then. There still could be more move in there you. Could also say. That, that's all you want to see is the green on top as well as a price. Pattern, here, like, a bounce or a close above the high of the low day let. Me get rid of this because today, looks like. This. The price of the stock if it were to close right now would be a cold. Right. A close, above the high of this low, day right here which was yesterday's, candle. So. Some could justify, entry, there some might say well I want my 80 X to be at least 25, I, think. That's one chart. Let's, look at another one. Microsoft. All, right Microsoft. Has. This, is kind of interesting. Microsoft. Has been kind of in a sideways pattern for a little bit hasn't it yeah. It's kind of been in this sideways pattern and. I'm, going to just remove that a little drying there what's. Interesting is, it's going back and forth sideways, here we. See, the. Purple and the green just, climbing. Over each other back and forth and back and forth don't we purples, on top and greens on top purple on top and so forth and so the. Ad acts that says these strengths, of the trend, bullish, or bearish that, values down at eight point six, okay. So. Definitely, lower than 20 and it's saying it doesn't really matter which trend is on top right now the minus. Or the positive it's. Very weak make. Sense, all. Right so you might say okay nothing. Going on with this particular, stock, on my watch list today let's move to the next one I want, to give you a lot of different examples to. See how you could use this. And. Like, I said on synopsis. That we looked at in. Ischl II some. People could justify. Putting. In or trade them and we may do, that. Right. Let's look at take to. Ttwo. Take-two. Interactive, I think these are guys I can't remember which games they produce but they produce a lot of games that people, the played lame games really like all. Right so we see pretty. Much a solid. Uptrend, for the period of time resumed on and on which is about six, months all. Right let's, come down here. To. Our DMI. Area. And. I'm just going to zoom in because it's kind of hard to tell exactly. It. Looks like that Green Line is trying. To cross back above the purple line, okay, and so. If I put my mouse here we can see in the upper left here the. Di+, is. 20.6. The. Di- is, nineteen point seven so, we absolutely know. That the green has gone above, the the, purple, at least right, now, and. Then. The ATX, line, the. One that says hey if you're lower than twenty the strength that the trend is not that strong, it's a nineteen, point seven nine so. It's just a little bit under. The. Twenty. However. If, you look at what this stock has been doing, you. Might say well, as. Long as the green is above, the purple, somebody. Might feel comfortable getting into the trade as long. As they also had here, say. A bounce type of an entry or it could be a breakout type of entry or a cold. Type of entry what, kind of an entry might we have here just, looking. At the price. Okay. Today, let's, see if that was actually today yes probably it's gonna be today the. Lowest day, in this pullback is this red candle, the, high that day was one twenty, eight seventy, nine and, it. Didn't do it here and it didn't close above it there this. Day the closing price was.

One. Twenty eight sixty three and. It. Needed to be one, twenty two sixty two so not quite so. Today. Right. Now the price of the stock is one thirty forty, cents, so, right now as of this point, if the market were to close we would get a cold, value. Okay. Or a, cold. That says sure if you want if you like to play this rule that, could constitute an, entry signal and, there, may be some of you that say well let's make this little, oscillator. Be, more and play more important, role where. You want to say one. Of two things I want to make sure it has the green line. Above the purple line, or. You. Want to say I want, the green above the purple line and I. Want the ADX to be above a certain number, remember, 25, means it's really strong, but, between 20, and 25, some people might take action, because they're seeing the trend develop, and they, don't want to go on for days and days before it finally gets up there 2:25. They. Just recognize okay, it's in it's getting to that zone when it's starting to be more. Positive. Momentum. Jerry, has a question here and so I'm going to go back here Jerry, let me pull back Microsoft. Back up. Technically. We, finished with our discussion, here on take. Two they, keep in mind you could you could, use. It different ways it's not a only. Got to use it this particular way all. Right Jerry has a question here, about, the. Microsoft, heart going sideways, Jerry, says would the chart of Microsoft, going sideways indicate. A likely, option trades such as a calendar, or a diagonal. Or a credit, spread and, the. Answer to you Jerry is yes, all three, of those could. Be possible. Considerations. Here I. Would. Even it out on, here credit, spread it could. Be a bearish, one or a bullish one maybe depending, on if you're bouncing, off resistance. Or if. The stock is bouncing, off support all. Right but. I'm. Gonna give you a thumbs up yes those definitely, all three, of those you. Could even throw. Other. Credit. Spreads in there could be possibilities. As well. Jack. Says, iron. Condor on the Microsoft, I think yeah, in fact when, I first came in here I had a big purple box in here kind of showing the Tri sideways, trading action. Of. Microsoft. At. That time yeah. Yeah that certainly could be one of the credit spreads very. Good yeah, Andy, notices that too that may be an iron Condor would be appropriate. Okay. Let's go look at another stock. WDC. Western. Digital. Let's. Give you a better look, before we zoom in so tight, the stocks been doing, so. We see it. Kind. Of sideways here a little bit of a pullback and then. Then. Finally, it starts to make higher highs and higher lows. What's. Happening, with it right now we see the 30 day moving average going up we. See the purple, the di- way. Down, here, the greens been above it for quite a long time and, then. Let's see when it finally got a value. On. The ADX, of 25, or higher, it. Looks like this day it finally hit 25, that, was September 4th. All. Right so, we can see okay, yeah that, activity. At that point was letting us know this trend. Was really strong. Just. A few days after it had that crossover, and so this is when you'd have to decide how, long after that would, you allow yourself, to get into a trade where. You were seeing the green i+, you, were seeing the. D-. On, the, bottom part and then, you were seeing an ad x-value, that. Was above 20. Or 25. So. You'd look at this and you'd say well does. It make sense to enter a trade here. What. Some people might do is they might say well let me get an entry up here with the price and then. Come down here and make sure that it's reflecting. In. A bullish manner before. You get into the trade because, what if you get, maybe. You say this pulls back quite a ways. And. It causes the, green to come down and the purple to come up you, would want to be able to consult that and, make. Sure that the green is still the, higher. Line. And that, it's above the purple, purple line, okay. Red, line it doesn't matter where it is it just matters. What that value is. Okay. Could. A possible, trade take place here, possibly.

It, Could. Let's. Look at one more and then we're gonna put in the trades that look the best to us right put in micron, here. Same. Thing. Has. Gone, sideways, quite. A bit, of the year there's. The six months that we're looking at here right. 44. At one point got down to 32, that was its lowest point but, it's kind of been running around and the 41, - I'm, gonna save 51, range. Kind. Of a $10 range here. Okay. Let's zoom in. We. Have the. Green Line the DMI positive, clearly. Above the negative, let's. See what the reading on the ad X's, the reading is twenty, six point eight, okay. Is that above 25 yes, does. That mean that bullish trend is strong yes. What. About today. Is a potential. Entry, well. We are getting a little bit of a pullback here, in this upward trend in stock micron, then. We're getting the. Load a was here yesterday. The. The high price yesterday was 50 24 and so today we want to see the stock close above 50 24, right, now it's at 50 74, so, if the market closed right now would we have a cold. Yes would. We also have some confirming. Information with, us as well the. The momentum. That's positive, is still going strong and, that ADX is above 25 yeah. Definitely. Okay. Let's go do a trade. On micron, here. Bring. Up the trade tab now if you're a stock person, let's do a stock trade that's, going to be filed followed, by an option, trade for those of you there are more options oriented, but, I want to have something, for each of you stock. Isn't super expensive 50 dollars all. Right and in. Our account we can spend. About. 5,000, per position, so. We're going to need our calculator. Here if I'm willing to spend. $5,000. And. Divide. That by the price, of the stock 50, point, 75. That. Says we could do 98, shares I know. A lot of you are gonna be tempted to say just round. To a hundred, what's the big deal, and. You could if, you wanted to but typically you'll want to round down rather, than round up so that you're keeping your risk in check, now. Bumping. Up by a share and a half probably would not make a huge difference, all, right but. I'm. For our purposes today I'm just gonna go ninety-eight shares alright I'm, going, to do a. Just. A regular, right. Mouse click or left mouse click on the, asking, price it, what's up chooses. I choose, it up for a hundred, shares. Of stock and then. The price it populates, here 50. Seventy eight and that's, the full asking price but it's such a narrow, bid-ask spread. That. We should get filled pretty quickly on it we're gonna hit confirm, and send. Review. It notice your transaction. Fees make sure it represents, what you really want and let's. Put this in our account, here, of the trading stocks and options portfolio. And. I'm gonna go ahead and hit Send. Okay. You, options, folks for. An intermediate, trend, trade you're gonna need a lot of time right. You're not gonna go. Say. Two months, and. Three months you're gonna look out further in time now. Micron, widely traded so it has a lot of weeklies but let's see what else it has further, out and. At this time of the year you might want to go out to the new year to some extent we, can go January. It. Would expire on the. 17th, of January or, we could go out to April, okay. If you really like the trend of micron, really think you want to stay in it then. You would consider the April one and. You. Would probably, consider. Looking. At. Yeah. You want to consider looking at the open interest for sure. Okay. Here's our open interest column remember. Yellows, are in the money background. Of yellow is in the money white, background, means it's out of the money has no intrinsic value whatsoever. So, we're looking for some good liquidity. Here as well so. For. You, just for a sample purpose, week I'm gonna go kind. At. The money with the 50 strike price it's, nice because it already has a point 6 Delta where many times it would have around, a point 5 Delta oh and.

The Bid-ask spreads, really tight, over, 26-hundred, contracts, I'm, just going to go ahead and click once do. The regular left click on, the micron we're, just going to do one contract. If we were going to position size, it and somebody. Said I'm going to put a stop loss as $7, half, of 740. What. Would that give us that would give us 3. 370. Right. That. There's a possible, loss of 370. On the plane and so. Somebody might say okay, I'm willing to lose that amount and, if. You're willing to risk. Let's. Just say a, half, a percent, out of our. 150,000. Dollar portfolio. That's. The case let's. Just position, size it real quick and we'll spend more time on position sizing and risk management, in our. Lesson coming up. But. Let's go ahead let's suppose what, do they say 370. Let's. Suppose you're only willing, to risk, $1000. In any trade, all. Right let's take $1,000. We're. Gonna divide that by the 370. That's gonna tell us how many contracts. We could do it's close to 3 but it's 2 so we're just gonna stick with 2 not. Gonna round it up I. In. The interest of time I will not put us well I can put a stop loss in here let's go first triggers. Sequential. Right. Mouse click and, create. Opposite, order and we. Are gonna put that in at. 370. A. Says, would you then, sell a short, term call on the. Micron, option. Trade. Jerry. If you wanted to if you wanted to, maybe make it into a calendar you could or diagonalize, it you could so. That you have some selling, going. Along with that but for an intermediate, strategy. You might want to time, when. You go ahead and try to sell that call against. It okay. So but maybe you're hitting it at resistance. As two opposed to having it coming, up on the slope with the bounce like what we're looking at right now, hopefully. That makes sense we, don't know. When. This would occur and I need to change this to a stop. Order. So. Stop at the price of 370, on the option trigger a market order we don't know we'll get out exactly. At 370, but hopefully close to that we're, good to cancel, which really mean six months and review. The details, transaction. Fees. And. Off we go on that side on micron. Now. We depending. On the rules that you might decide, to use for yourself, there's, a couple here that you could. Look. At I think one of the first ones to let's, see was it take, two. We. Were looking at that. Some people might say okay the Green is crossed over it, is now on top I'm getting, a cold up here on the price action, therefore. Using. That oscillator, in conjunction with the price action, on the screen they. Might see that as an entry as well so. Let's do. This real quickly 130. Shares or. 130, bucks a share here. Let's. Go. Let's. Go, if, we're willing to risk say a thousand, bucks on a trade let's suppose your stop I'm going to pull this out of the air is going. To be down here at 120, bucks okay, basically some, leeway below, where, it's impossible horizontal. Support is right now so we'll go down to 120, and, so. 120. From. 130, 82, is gonna give us what. 10 dollars and 82 cents, worth, of risk. And. If we're willing to risk a thousand, bucks a trade, let's. Figure this out so we have $1000. Per share that we're willing to leave. To. Lose not that we love losing, divide. That by 10 82 which is the risk on the stock and we'll pay, more attention to this now streak we, can do 92, shares. Alright. So this time I'm going to do a right, mouse-click from, the chart and I'm, just going to say by. Custom. With the stop-loss in this case. We're. Gonna do 92, shares instead of a hundred. And. I'm gonna click on this link and match those up and then. The stop price, that. I pulled out of the error was 120. And. We're gonna make that good till cancelled. What. I say I pulled it out of the air I just kind of move my mouse down I wasn't all that scientific. About calculating, it at this point all. Right but we've got us set up to do, a first triggers, the. Next trade, in here so our, sell order our, potential, stop order that may get us out of the trade they. Confirm, and send double. Check it notice your transaction, costs and send. It off and it looks like we've bought 92, shares of take two as, well now I forgot to stick that in our portfolio, we're, done I'll go ahead and move it alright, now. We. Talked about the difference it's kind of to summarize here of what, a setup looks like and what. A signal, looks like incorporating. Into. Here. Incorporating. That DMI, oscillator. In in. Your decision making okay. The. Incorporating. An awesome oscillator, might be entirely new to some of you okay, but, experiment, with it and decide okay do I want to make sure that that, ADX, line that shows the strength of the trend that it's above 20.

Am. I good with that. And just, make sure that you experiment, with that and see if it's something that you would want to incorporate I'm, not saying add EMI as a indicator. Everybody, should use but. It is one, that some traders, use that, are doing some, trend trades because. That's exactly what it's doing it's measuring, which trend is more is. Stronger, and then we get that strength by the ADX. All. Right hopefully that makes sense to you, want. To point out some other classes. Web. Web. Web. - ass that. Might go along with our class today, all. Right. So. Those would be kind of the some of the intermediate ones, I bring, up the webcast calendar, on. Tuesdays. So that's going to be later today. Investing. In value stocks it'll, be at 6 p.m. Eastern Time. It, is just out of the, way here, there we go portfolio. Mint for, let's know a little bit lower. I'm. In the wrong day that's why Mike. Fairborn, investing. In value stocks right, here 6 o'clock Eastern, Time and then on. Thursdays. At. 4 o'clock Eastern. So let's jump over there, we, have. Value. And growth strategies, with James Boyd and that is typically, at 4:00 Eastern so. Let's move up here. Or. An Eastern Time as this little purple block, here so, if you want to kind of continue down this vein of thought those would be some great ones to be able to catch this. Week. Yep. My little thing back here actually, I guess I just have to kill it here all right. Well. What did we learn today we just talked about it kind of find some, of it up a little bit talked, about what an either intermediate. Term trade, is we talked about what is the set up what. The stock looks like before you have. A go signal, and. How, to identify those potential, x entry, signals and again, that could vary depending, on how you want to use that DMI and then, of course we did our work in the thinkorswim, paper-money. Platform. Now. As we sum, things up here. And. I was just looking over to see if we had any other questions, looks. Like we'd answered them along the way which makes me happy but. In. Order to demonstrate functionality. Of the platform, we. Need to use actual symbols the TD Ameritrade does not give recommendation. Or determine. Suitability of, any strategy, or. Security. So any investment, decision you make in your self-directed. It's only responsibility. I appreciate. You being here and joining me here next, week we're going to continue down this vein a little bit more with intermediate. Trades we're, going to focus a lot on setting, stops and, managing. The trade and. Where those initial, stops should, be as. You're focusing on the, exit, piece of things all right so appreciate you being here next. Up I should mention to you is going. To be Cameron. May, with. Trader. Talks question, and answer and that's a session you can go in and you can ask camera, or whatever you want, throw. It out and whether it's over the platform or strategies. Whatever. Is on your mind it's, mainly, focusing. More around more. A. Less. Long term investing, style but more of an active trading style but you, might have some questions that just kind of fit in either category all, right so you'd.

Love To see you in there that's gonna start at the top at the hour so in about 17. Minutes all right hey thanks everyone have, a good afternoon buh-bye. You.

2019-09-20 22:16

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