When To Lotto or Not to Lotto
Happy Monday, VWAPians!
Based on a couple of comments that I saw during my Warlock’s World stream on Friday, I wanted to address something very briefly.
I loooooooove taking some lottery plays on stocks like QQQ Invesco Trust (QQQ) on Fridays
Lottery plays are option trades that are a few dollars out of the money. For my lottery plays I look to buy options that cost around $0.10 to $0.05.
They are usually based on the market reversing direction, but not always.
But here’s the thing.
I’ve noticed folks coming into the day looking for lottery plays.
In Warlock’s World, we don’t look to gamble.
We look to make quality, disciplined trades first.
And what works is 1-minute multiday VWAP reversals on stocks that have reported earnings.
This is the trade that, for me, has had the highest probability of success.
I come in looking for my go-to trade, and after I have some money in hand, then I look for lottery plays.
Lotto trades are exactly like buying a lottery ticket – all or nothing.
That’s why I don’t want ANYONE putting fresh money into lottery plays.
Make money on quality, disciplined trades FIRST, then consider lotto trades.
In Warlock’s World, lottery plays are for fun. Don’t put your whole account toward it.
If you have a good day trading VWAP and feel comfortable letting some of those gains go POOF into thin air, that’s when lottery plays can be fun.
This is all about MANAGING RISK. This is what we teach in Warlock’s World.
With lottery plays, you’re risking 100%. That’s why it’s called a lottery.
So please, don’t get too wrapped up in lottos.
Stick to what works – VWAP.
Then once there’s a little money in your pocket and you want to have some fun, THEN it’s time for lottery plays.
To learn how to remain disciplined in this market (and when to trade lottery plays), you gotta be in Warlock’s World.
Live for the day, trade for the day, stay liquid and love it.
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
March 28 2022
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