Conquer your trading fear
The Warlock – Kenny Glick – here.
Fear is the enemy of all traders.
But not me…
Because I AM FEAR.
Hmm. That doesn’t roll off the tongue like I thought it would.
But seriously…Fear is the enemy of all traders.
As traders, what are we afraid of?
We’re afraid of losing our money to the market.
I’m personally afraid that one day I’ll wake up and trading VWAP won’t work anymore.
What causes this fear?
You know the feeling. It’s all well and dandy watching stocks go up or down when you don’t have any positions on.
When there’s nothing at risk.
But something strange happens to us as traders the moment we enter a trade.
The doubt and worry kicks in.
Your heart starts beating faster.
Maybe you start to sweat.
Well I’m here to help you conquer your fears of the market.
It’s my duty to help you understand how to manage risk.
Here we go…
New to VWAP?
Start your journey down the path of trading salvation with a headfirst dive into the VWAP bible.
Conquer your trading fear
Never buy options before earnings.
Same goes for selling options before earnings.
I don’t care what you or CNBC or your idiot uncle think you know.
You don’t know. Nobody does. And if you can prove to me that you do, I’ll buy your service.
Recently I watched an “expert” recommend a credit call spread on a stock before they released earnings.
The stock went up two hundred dollars in the week after.
So your little call spread that you took in less than $100 credit for? Just a week later it was down over 1000%.
Think about that…you risked how much to potentially make less than $100 per contract?
That’s some of the worst risk management that I’ve ever seen.
You don’t know. Nobody does.
Stop thinking you know…well, anything.
Look at me. I’m a goofball who got an 800 on his SAT.
But I’m the Warlock.
I know that I don’t know anything.
I don’t know how many times I come waltzing into Money Morning LIVE and say “I’m not looking at anything, trades will come to me” and it ends up being true.
Almost every day.
Because I’m not worried about being right. I’m focused on making money.
I do this by reducing my risk as much as possible.
You can’t reduce your risk if you can’t define your risk.
That’s why it’s so important to learn how to chart significant price levels.
With these levels, and the most significant price level of all – VWAP – I’m able to find trades with minimal risk that can result in outsized profits.
For example, take Revlon (REV) yesterday.
This stock has been on my rolling watchlist for a while. When I trade a stock a few times, it garners a semi-permanent spot on my watchlist.
I’m always keeping a half-eye on these stocks for a potential revisit.
One glance at the chart…and WOW!
The stock went from a daily low of $4.27 to a high of $9.90.
But here’s the thing…
Even if just using the VWAP break as your entry, you never risked more than $0.09 – or $90 on 1,000 shares.
But Kenny, how did you get that number?
Let’s zoom in on the chart and look, Blanche.
There’s the VWAP break at $4.36. And there’s that daily low of $4.27. Let’s say I bought 1,000 shares of REV at the VWAP break at $4.36.
There’s no way I would let the stock break that low of the day with me still in it.
If it did – I sell out of my position and take the loss.
But because I have my significant level already in mind, there’s no fear.
I’ve removed the worry.
And I would have been rewarded because the stock never tested that level for the rest of the day, ripping to a high of $9.90.
Meaning that if I bought those 1,000 shares at $4.36 and sold at the top, I could have made over $5,000 profit.
That’s more than enough for a lifetime subscription to Warlock’s World.
But what I most likely would have done is sell into the moves upward, scaling out my position and raising my stop along the way.
That way I have profits locked in.
That way there’s no fear that a winning trade turns into a losing one.
And this is exactly what I teach to my Warlock’s World members.
By managing and mitigating risk, fear is defeated.
If you’re ready to eliminate your trading fear, join my Warlock’s World.
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
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August 02 2022
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