RESULT OF OVERTRADING...

Anyway, that’s a very bad day for me; within my limits, there’s nothing special about how much money I lost today but you know every once in a while my average is one and a half losing days a week and I will consider it this way so there’s nothing really very special in what happened today I did over trade. I think it’s a kind of thing that is, you know happened to me after this long weekend we didn’t trade for a few days we had a long weekend.

It’s Tuesday today so you know I kind of got excited and overtraded, definitely overtraded and maybe its just because I didn’t trade for a few days I don’t know but I definitely over traded I just look at the results here and it definitely means over trading there’s just one trade I want to discuss here. I had too many trades, I don’t really want to go through this but there’s really just one thing I want to talk about which is kind of interesting from an education perspective and that would be GME.

Watch GME; one of you guys posted it today when you noticed that the stock was coming down quite a bit from the highs. So, stock came down quite a lot with a lot of downside momentum and a lot of volume look at the volume it looks like and I did not check it but it looks like something intraday happened this could be or it just could be the daily if you watch the daily the stock is way over extended on the daily it had some huge upside days does not mean that it’s not going to continue but there may be some profit taking there so this stock which was recently under $10, $5 or so just moved all the way up to $45 and if you take a look at the intraday it’s definitely coming down.

So why after moving so strongly to the upside today it kind of crashed down today? I don’t know. Maybe that was some kind of an intraday news or maybe just fear or profit taking or whatever so the point where we joined, under $39 over here the one I posted in the trading room turned out to be a successful trade but I want to talk about it a little bit more that was way too late the entry point should have been after the first big move down probably over here, you see that was the big crash with the major volume.

The way it came down here was the interesting way and then you wait for a pullback and then you short it once more. The entry should have probably been under $40. We joined under $39 does not sound too bad but you know one point in a stock like that could easily take it up and you know you could you could easily have a loser just because you just shorted it a point below where you should have now it’s a big move or definitely a big mover but when you show the stock that has so much downside momentum, but it’s already too extended to the downside you do not expect a continuation, I mean it’s not like a trade that you’re gonna sit on the rest of your day I’m still following it with 100 shares over two points right now but the fact is you take it as a scalp you just move in and out really quick so you see from $39 it came down to $37.

60 or so it was almost one and a half point or so it came down gave us plenty of space, I think my partial was a little bit more than $1, $1. 20 or something like that and then at that point I was very, very happy - relieved to be out, in fact still following it with a very small size but you know you never know what’s coming next and look at what happened next I mean it came up and moved all the way to $39. 70 or so and I’m still following it because with one other shares after taking a partial that that’s something I can do but when you come across a stock that behaves like GME and you want to join into the momentum because there was definitely a lot of momentum down here you can do it but please regard it as a scalp.

A scalp is you know if it works really quick you’re in and you’re taking the money if it goes against you you real quick out. If you count on the momentum and on the volume to take it down really quick and that’s what really happened when we moved in the initial move took us to our target very quickly and that was exactly how you should regard it if it comes down there fine take your partial and put the risk behind you if it doesn’t, if it starts going sideways, then the stock was way too extended to the downside you should be moving out if it doesn’t really happen very quick just get out of this trade if it happens take a quick partial ignore the fact that it can it can continue several points lower just ignore it it’s too dangerous just don’t mess around with this so we got it right we moved in at the right place we took our partial that was a nice trade one of my only winners and not a big one really just you know quick scalp and my average losers were bigger than that so, okay, that’s it for me today.

I’m having a red day I hope you guys are doing better than I do. Thank you guys in YouTube for joining us if you don’t mind give us a thumb up right here we will appreciate if you do that, so I’m gonna hope for a better day tomorrow. Thank you all for joining today and enjoy the rest of your day. Bye traders!.