We finally might be approaching time for my full bearishness to be on full display.
I may be The Warlock, but I’m ready to be the peacock of bears, strutting my stuff, and shorting stocks as they crumble back to reality.
Of course, now that I said it, the market will probably rally for nine more months!
If you weren’t around for a very special episode of Warlock’s World on Wednesday, what are ya even doing, Blanche?
The charismatic enigma that is Garrett Baldwin and I not only reviewed and traded the Fed minutes fallout, but stuck around aaaaallllll the way until the market closed! You got a BONUS 90 minutes with THE LEGEND (and Garrett lol).
It was truly special. And I KNOW just how much everyone enjoyed Money Morning LIVE’s version of “Starsky & Hutch” because YOU told us!
Feeling the love.
Usually this buddy-cop movie kick starts EVERY DAY on Money Morning LIVE from 8:30 to 9:30 a.m. RIGHT HERE.
Then I leave Garrett in the hands of my other beau, Mark Sebastian, as I shake, rattle, and roll my into Warlock’s World, where I LIVE trade VWAP until 11 a.m. ET!
With earnings season coming up, my goal is to prepare VWAPians the best that I can to hopefully rack up some BIG wins.
But recently, my brother 8-Baller – who will be making his own regular rounds in the big room soon! – and I have been diving into a crucial aspect of trading to understand: losses.
I’ll be the first to admit — I HATE taking losses. But I understand that they’re a necessary part of trading.
Any of these so-called “gurus” on reddit or Twitter that don’t talk about the losses they take are lying to you.
Everyone takes losses. It’s ALL about how you manage them.
For us VWAPians, the biggest part of taking losses that I can stress is that they are disciplined losses.
Staying disciplined is tough. That’s why I bring Coach Brian King into my Warlock’s World every day at 11 a.m. ET for his Foundations course.
Coach King does an incredible job of helping traders conquer their greatest enemy — themselves.
On Wednesday, Coach King stressed the dangers of “nomadic trading.”
He said that “when traders don’t have a system, they will follow any system.”
This really hit home for me, because it made me remember ME before I found VWAP.
Disciplined VWAP trading is making sure your charts are right so that you avoid the candles of death.
Disciplined VWAP trading is how we can successfully revenge trade.
And disciplined VWAP trading helped me conjure up another one of my signature KNOWLEDGE BOMBS…
That’s not only a natural part of trading, but a natural part of life.
If you’re going to be stubborn, you will DEFINITELY lose money.
If you’re trading a stock and you get stopped out, that’s OK. As 8-Baller likes to say “getting stopped out is a stock waking you up to price action.”
Sometimes you have to get to know a stock. Get familiar with how it moves. You might get stopped out of some of your shares. It happens.
Let’s take, for example, what could have happened on Wednesday with Mainz Biomed (MYNZ).
MYNZ was up and down on Wed, Jan 5th.
MYNZ was above both VWAPs (the 1-minute and Multiday) and appeared to be primed to go higher… until it wasn’t.
By the time MYNZ was on my radar, I was too late to go long, and was looking for a potential short.
But as VWAPian, this stock was exactly the kind of long play that I would consider.
The stock broke out of a range, and broke what was then the daily high around 8:15 am ET. For me, that’s usually a sign that the stock will move higher.
If I had seen this stock in time, I probably would have entered a long position. I hopefully would have sold some at the daily high of $21.41, but I most likely would have gotten stopped out as the stock moved back to the downside.
When MYNZ continued to move downwards, I would have been glad that I was disciplined enough to have already been stopped out.
I’m not exactly happy about taking the loss, but I’m OK with it. Especially seeing how it could have been worse.
Look what happened next. MYNZ continued to fall. My getting stopped out did EXACTLY what 8-Baller said it would do — it woke me up to the price action.
So what did I do?
Did I cry and complain?
I asked myself: You wanna stew? Or you wanna DO?
Snap out of it. Suck it up, Buttercup.
And that’s exactly what I did. Getting stopped out made me realize that I was on the wrong side of the trade.
Continuing to watch the price action and chart significant price leves lets me get on the right side of the trade.
I was able to short MYNZ from $19 aaaallllll the way to $15! On 1,000 shares, that’s a $4,000 return!
You gotta have the chutzpah to get back in for a same-session revisit.
But you also gotta have the discipline to give yourself that opportunity in the first place. and you gotta be in the Warlock’s World room to have the trading guidance from THE BEST.
Speaking of the best… the best part of the YEAR is almost upon us, so if you liked yesterday’s afternoon session with Garrett, you’ll LOVE the thrice-weekly earnings sessions I’ll be hosting exclusively for my Lifetime Warlock’s World members soon!
Last quarter’s exclusive sessions were a huge hit, and I’m kicking it up a notch this go-round by adding NEW PRE-MARKET SESSIONS. Not only will we stalk earnings reversals around the close twice a week, but I’ll follow that up with a short 8 a.m. ET session in my Lifetime Warlock’s World room.
That’s right, these VWAPians will get the very first intel on my daily Warlock’s Watchlist, even before I go on the Money Morning LIVE show at 8:30 a.m. ET.
Hope to see you there… It’s gonna be a PARTY.
That’s all for now, VWAPians!
See you in the room…
Kenny “The Warlock” Glick
January 06 2022