Yesterday was rough.

During the trading session in our Warlock’s Room, we had our eyes glued to Okta Inc (OKTA).

The stock opened down 25% and the was tanking on bad numbers from the earnings report.

It looked like the perfect setup for an earnings reversal, so we entered into a trade the minute we saw it consolidate and start to go back up.

We sold into the move, took a small gain, and got out as it plummeted again.

Yesterday was rough.

During the trading session in our Warlock’s Room, we had our eyes glued to Okta Inc (OKTA).

The stock opened down 25% and the was tanking on bad numbers from the earnings report.

It looked like the perfect setup for an earnings reversal, so we entered into a trade the minute we saw it consolidate and start to go back up.

Then, we entered another trade as the stock chopped along a second time.

We sold into the move higher for a small gain and got out as the stock plummeted again.

Now, a third time it went lower again.

And we repeated the moves from before with a small gain.

At this point though, volume was drying up, and it looked too risky to enter anything else.

We packed it up for the day with a good lesson though…

You need to stay nimble with any trade that you do.

If you’re day trading, you need to keep an eye on the price movement, and have your finger on the trigger for when to get in and when to get out.

OKTA for the rest of the day continued to move lower and well after we got out, it bottomed out at $58 before rebounding off the lows.

Who knows what it would have done though. Maybe it would have chopped at the same price for the rest of the day.

Or maybe it would have kept on going lower and lower with no end in sight.

IF, and only if, the stock broke the VWAP on a bounce upward it would have given us fantastic gains.

But this time around we were only able to exist with a small gain on our positions.

It’s better than buying it and going long though, or even trying to be a scalper in this market.

You don’t want to only shoot for $0.20 gains on stocks like OKTA because, in our case for instance, there’s so much more profit to be had.

And when a stock does move higher and higher, you’re stuck with a measly $0.20 gain on a stock when you could have had a 10x that amount.

Keep sticking to the fundamentals, and you’ll keep your head above water using the VWAP.


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