This is the Only Thing That You Need to Worry About in the Markets

Listen, and listen well.

If you’re scared of trading because CNBC or Fox Business or the local paper or your cousin Billy is telling you the sky is falling…

You need to tune all of that out.

Put your head down, tune out the noise, and trade the only thing we care about: VWAP and PRICE.

I say price as well as VWAP because that’s all we care about.

The VWAP is a tool that we can use to get some fantastic trades.

But don’t forget that algorithms and big money traders also care about where a stock is headed to.

Drill this into your brain: Half numbers and whole numbers are significant.

If a stock is falling and it breaks the next whole or half number, chances are it’s going to go to the next one.

Just like how the VWAP acts as a significant point of support and resistance, so do half numbers and whole numbers.

That’s why if a stock breaks VWAP, a stock doesn’t just rip higher or lower. It tests half numbers and whole numbers. And if it breaks those levels, then momentum will continue.

And that’s also why I will always exit parts of my position at the next half or whole number.

You lock in your profits at these levels so if a stock DOES meet resistance, you can exit your position at the potentially highest profit.

Confused at all?

Click here, or the video below to get an even more in depth explanation about what I’m talking about…

Let me show you what we did today in the Warlock’s World to clear things up…

Today we were eyeing Pacwest Bancorp (PACW).

And because it was down almost 20% overnight, we were looking for a reason to buy it.

After chopping around a little, the stock dipped down and found some support at around $10.00.

The stock failed to sell off and after seven candles of testing the $10.00 mark it bounced back up.

Seeing that the stock didn’t want to roll over and die, I told my members of the Warlock’s World to jump in.

You can see the moment to buy in the chart below…

This stock was well below VWAP, but your risk-reward ratio is already intact.

Let’s say you bought it in that range at $10.05.

What would your risk is here of where you set your stop?

If you said if it breaks the low of the day, you would be correct.

That $10.00 mark put up a fight as even in the first candle, the buyers came back in and fought to keep it above $10.00.

Then it bounced back and kept ticking higher. It broke VWAP and a potential buy at $10.05 got you all the way up to $12.00.

15 cents of risk turns into two dollars a share.

You would’ve had to lose 13 times with a 15 cent risk to equal the reward of two dollars.

PACW could be delisted at zero dollars by the end of the year.

But we don’t care about any of that at all.

We get in, we make our money, and we get the heck out.

While everyone else is screaming that it’s the end of the world, we’re kicking our feet up and making money every day.

There is no fear here in this dojo.

The only thing you need to care about is PRICE and VWAP.

THAT is how we’re going to make money.

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