No Excuses for VWAPians
Hello, VWAPians!
I’ve been telling you for a while now that my team of developers has been hard at work creating something MAGICAL for VWAPians…
And today is the first time we get to show YOU the amazing charting platform built just for us!
Hop in the room at 4 p.m. ET today (or come a few minutes earlier if you’re a DJ Russ fan!) and I’ll show you what I’m talking about.
See, the way I trade VWAP is based on two primary lines: the 1-minute VWAP (blue line) that a handful of charting platforms make available; and the Multiday VWAP (orange line), based on a formula created by Brian Shannon and Zach Hurwitz years ago.
However, the Multiday VWAP line requires a special code in Thinkorswim (TOS) — something I share with my Warlock’s World members on the first day of their subscription…
But I didn’t want to tell VWAPians that the only way to trade like me is through one specific trading platform.
So I built one myself.
Now, when someone joins my Warlock’s World team, they’ll have both my favorite lines — 1-minute AND Multiday VWAPs — courtesy of the custom charting platform we just built.
Of course, if they already have and like TOS, that’s fine — they can still get the Multiday code and the hours of live training me and my guys put on every single day, Blanche!
Get in the room at the close today (4 p.m. ET, for the new kids) and take a look at the platform (and all the bells & whistles) for yourself!
That said…
On Friday in my premium room, we stalked VWAP moves on Aquabounty Technologies (AQB) and Bitfarms (BITF), to name a few (cause there were more than a few, how you doin’?).
Come to think of it, one trade in particular reminded me of one of my signature KNOWLEDGE BOMBS…
KNOWLEDGE BOMB: A LOSS YOU TOOK THAT COULD HAVE BEEN WORSE IS A WINNING TRADE
Ask Garrett Baldwin. HIS loss on Aquabounty Technologies (AQB) turned into OUR VWAP trade opportunity (Sorry, Garrett).
But I’m a good sport, I’m not here to rub it in.
I want to talk about how MY financial loss turned into an opportunity for YOU to learn.
That’s right, I took a loss. I know, you’re shocked!
Unfortunately, losses happen. It’s part of the nature of the beast. Anyone who tells you they don’t lose every now and again is lying to your face.
But the more you learn from your losses, the better trader you will become. (That’s why we’ve included an exciting trade journal in our new charting platform, for all you Type A traders — stop by at 4 p.m. ET to see.)
In fact, I always say that a loss that could have been worse is a WINNING TRADE.
Let me show you. It all started when Marqueta Inc (MQ) caught my eye.
When I saw a triple top at $23.74, I opened a position.
After some consolidation, the stock eventually broke the high of the day, then broke the Multiday VWAP — the trade I was looking for — so I added to the position at $23.94.
I thought that the consolidation and a subsequent upside breakout would lead to the next half number at $24.50…
So what happened?
MQ went green, rising a WHOPPING dime… Then it rolled over. But was I going to panic? No.
Once it broke back below my entry price, I sold a little.
Then I started looking at where am I going to really be in trouble?
On the chart, the buttcrack pattern that MQ broke before became my stop; the red line at $23.69.
However, it didn’t take long for me to realize the trade just wasn’t working. I dumped the rest of my position and took the loss.
But look where MQ went after I hit the exits… It fell as low as $23.10 in the chart image above.
So if I hadn’t gotten out at my stops and accepted the trade wasn’t going to pan out, my loss on the position could’ve been more than triple what I took. And that’s how you blow up accounts.
Because of my VWAPian discipline, the loss I took that could have been worse was a WINNING TRADE in my book.
Because I managed my losses and moved onto the next, I was able to get back on the horse and ride Williams-Sonoma (WSM) to the right side of the “blueline to orange line” trade.
Right side of VWAP, right side of life.
Tune in for more BLUE LINES & ORANGE LINES LIVE at 4 p.m. ET!
Kenny “The Warlock” Glick
Comments
November 22 2021
Leave a Reply