I’m boycotting the market.
I’m putting myself in timeout.
OK, maybe not, but can you imagine if that were true? I just had a case of temporary crazy.
As members of my Warlock’s World family know, I’m prone to short-term bouts of insanity.
We laugh, we cry, we sing Broadway musicals! I truly am a triple, no, quadruple threat!
Yesterday I woke up SURE that the big market selloff was upon us. I was dreaming of building bomb shelters, buying trucks, and weaponizing my basement.
I was planning on having my Warlock’s World members join me at my new compound in the mountains.
Guess what? SURPRISE! Yuuuuuuuge gap up going into the open!
That’s what made me want to boycott the market. Is it crazy or am I? Are we both?
In this situation, what do you do?
I drank some coffee. I watched the charts. I breathed in the VWAP, breathed out the negativity.
Breathe in the VWAP
Psychology plays a HUGE part in trading. It’s how we’ve gotten familiar acronyms such as FOMO (fear of missing out) and FUD (fear, uncertainty, doubt).
If I go hunting for VWAP trades with the wrong mindset, I could end up making costly mistakes.
Sometimes it’s best to take a moment, reset, then get to work with big Warlock energy.
This is exactly why I have my friend, Coach Brian King, take over the Warlock’s World every day at 11 a.m. ET with his Foundations course.
Coach Brian is a master at helping traders build themselves up with the right mindset and approach.
On Wednesday in my Warlock’s World, after I took the time to quiet most of the voices in my head, I came back with the right approach and BANKED VWAP trades for the rest of the day.
After getting my mind right to start the day, I knocked VWAP trades out of the park on stocks like Salesforce.com (CRM) and Context Therapeutics (CNTX).
CPIX broke VWAP with the “Kardashian Bottom” on Dec. 1
When CPIX broke back above the VWAP at $4.14, I was quick to get in at $4.18. You gotta be fast.
I set my stop at my entry price, and took my first profit at $4.27, because I never exit my entire position at one price.
After taking more profit at $4.33, I thought CPIX had a chance to race to the Multiday VWAP of $4.62… and then it kind of stalled.
It sat there. And I sat there. And the numbers barely changed. So I sold the rest of my position at $4.27.
Why? I didn’t want to trade.
Maybe there was a little bit lingering from earlier in the session.
Maybe I was a little miffed from missing a bigger profit on Olema Pharmaceuticals (OLMA) a couple of trades prior.
Maybe I was frustrated that the custom software I’ve been building for my Warlock’s World family isn’t PERFECT and ready to fire yet.
And you know what? All of that is OK.
It gets back to the psychological aspects of trading that I mentioned earlier.
So we pivoted, and I listened to YOUR ideas. And I gotta say: I was impressed.
I turned to the chat and listened to your trades and it made me a proud Warlock.
We reviewed submitted VWAP wins on stocks like Ardelyx (ARDX) and Kezar Life Sciences (KZR).
As much as I LOVE showing off my sharpened VWAP fangs, I think I get more joy knowing that members of the Warlock’s World family are succeeding as much as I am.
That’s because it WORKS.
I’m your learning curve. I have done the dabbling. I have done the backtesting and experimentation.
That’s part of the reason I don’t give alerts. I want you to learn.
And it made me very proud and happy today to see how much some of my Warlock’s World members have learned.
That’s all for now, VWAPians, but I look forward to seeing how much more you’ve learned on your VWAP journey.
Best of luck in your trading!
Kenny “The Warlock” Glick
December 02 2021