How to Save a Losing Trade
The Warlock – Kenny Glick – here.
Well, well, well, Mr. Market. How your mood turns.
After an insane rally to end the week, the market moved slightly lower yesterday.
If you didn’t know what you were doing, you could have easily been chopped up.
Not for the VWAPians of Warlock’s World.
We even held a call spread over the weekend – and it worked. Just barely.
And call spreads STINK!
But I’ll get more into that in a second.
First, it’s almost time to tune in for my FREE DAILY PREVIEW of my Warlock’s World premium trading room.
So get in the room at 9:15 a.m. ET RIGHT HERE every day to find out HOW I plan to trade the stocks from my watchlist above.
And don’t forget that I’ll be BACK in the BIG ROOM today at 1 p.m. ET with more VWAP goodness!
But right now, if you’re ready to see not only which stocks that I’m hunting for VWAP trades today…
But also how to trade them…
On Friday I said “I’ve never been this bullish in my entire life. The market’s not going down today.”
The key word was TODAY.
That was Friday. The buyers were there and every dip was being bought.
Friday I carried a call spread in Invesco QQQ Trust (QQQ) overnight from Thursday.
I also said “If you’re going to hold the QQQ over the weekend, do it with PROFIT.”
The key word was PROFIT.
If you already held profits in QQQ, it makes sense to let some ride. Not all of it.
What I teach in Warlock’s World is selling into the move.
The key word is SELLING.
Take profits! Lock in the trade! Secure the gains!
Here’s what I teach in Warlock’s World:
- When the trade goes into your favor, sell (or cover) into the move
- Raise your stop (if long – lower if short)
- You can give the trade a little more wiggle room if profitable
- REMAIN DISCIPLINED
No matter how much I pound the table about it, DISCIPLINE seems to ALWAYS creep back into the conversation.
If you’re missing discipline in your trading, then you have to join Warlock’s World.
Now let’s get back to the QQQ trade….
On Tuesday I was asked why the QQQ wasn’t gapped up. Look at this chart.
We did gap up, then we faded. Just like we normally look for.
But now I’m holding these calls and I wish there was something I could do because the market doesn’t open until 9:30 a.m. ET.
What you need to be doing is follow 8-Baller – and that’s learn how to trade around your options.
QQQ is going down, but I can’t trade options in the premarket.
So what do I do?
SHORT THE STOCK.
This is the type of trade that 8-Baller is a master at.
One of the downsides to trading options is that they don’t trade premarket.
But what, are you going to sit on your hands and hope the market turns back into your favor?
OF COURSE NOT.
Especially in the premarket, you can short the stock that you currently hold options in. Then you’re still on the right side of a trade.
You want to know the real crazy thing?
QQQ did EXACTLY what I said it would. It went all the way to $311 on Tuesday.
That call spread I carried over from Friday? Actually ended up being profitable.
But I wasn’t about to sit and rely on hope and faith to get me there.
This is why you need to join Warlock’s World.
Because this QQQ call spread was a trade that could have seriously gone against you.
But if you’re remaining disciplined – and this trade was the last remaining profitable position after an INSANE two day rally to end last week – then there’s no reason to panic.
If you’re remaining disciplined you know that you can short stock against your long calls, offsetting any potential losses of your long position.
If you’re remaining disciplined you’re enjoying trading this INSANE market.
And if you’re not remaining disciplined? Then you absolutely need to join Warlock’s World.
CLICK HERE for FULL DETAILS on all that Warlock’s World entails.
To protect yourself (and your account), the first thing you can do is stop trading.
If you’re losing money in this market, you need to stop trading right now.
I mean it.
The next – and best – thing you can do is to trade with me. Because it’s my goal to help as many VWAPians as possible conquer this market.
So take your time, and check out my Warlock’s World right here.
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
June 01 2022
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