This is How You Can Secure a Winning Trade

Today, there were a couple of names to target.

But the easiest, and simplest thing to do is target earnings reversals on earnings reports.

Today’s option to do this was with Crowdstrike.

The stock gapped up, analysts raised their targets, and it was the perfect time for us to short it.

This morning, it shot up, dipped through the VWAP, tried to get back on top of it, and then sold off.

Once I saw that it failed to break VWAP and was making new lows, that was the perfect time to jump in.

And it turned out to be an incredible trade for my trader in the Warlock’s World.

So once you have a winning trade, the question is now what do you do, and how do you get out of your position?

The best advice I can give is to never get out of your position all at once.

You have no idea how low or how a stock will go.

All you know is that you currently have a winning trade.

So in the case of CRWD today, we had a winner and started shorting the stock at $131.50.

The stock moved down a little after that. And what you would do is immediately take some profits.

I suggest exiting your position for a profit in 1/5 lots.

So if we had 1000 shares of CRWD, we would have wanted to cover 200 shares for a $0.50 profit — putting $100 in our pockets.

You can see the entry and first exit as well as the rest of the day in the chart below…

But how do we know when we’re supposed to sell the stock?

I usually look for two things. The first is the break of a whole or half number (e.g. $131.00, $131.50, $132.00, etc.)

And the second is just visual. When there’s a bigger more significant candle, we then want to cover some profits.

Big candles mean that people are either buying or selling in massive lots and are creating momentum in the stock.

In the case of CRWD above, you can see that you could have theoretically been out of 80% of your position as the stock sold off from $131 all the way down to $126.00.

The key to selling off your position is that you want to lower your stops to the previous point that the stock broke down or out from.

We were shorting CRWD today and had no idea when the shorts would get squeezed.

It could have happened in a massive candle upwards, and if your stops weren’t in place, you would be on the wrong side of the trade, possibly giving up profits.

And sometimes you only get out of 1/5 of your position before you get stopped out. But taking a small profit adds up over time.

It’s still a profit. Don’t forget that.

If the first move didn’t get you a massive profit, keep at it until you get what you were looking for.

The more you do this, the faster you’ll get. And the faster you get, the more profits you’ll accumulate.

And if you want to get more lucrative trades like this, by joining me in the Warlock’s World.

Let me know if this all made sense by shooting me an email at KennyGlick@MoneyMapPress.com.

And feel free to shoot me any questions or comments you may have.

I’ll see you all tomorrow morning!

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Comments

One response to “This is How You Can Secure a Winning Trade”

1. I ‘shop’ the EarningsWhispers every morning and I see you seldom find a ticker worthy of your time to trade from that list.
   After my eyes have fallen out of their sockets, I trash the earnings list and ride your coattails in order to catch anything viable. I have not gotten in sync with looking at the right ticker at the right time to catch one that rises above my entry. My feet are getting flat from the big step down. I keep on trucking.

   Reply