Yesterday, the Dow Jones Industrial Average declined over 250 points while DOW chemical rose over 5%.
This was a textbook “stock in-play”. It was gapping higher, the desk identified clear levels to buy from (as mentioned in Trader90 AM meeting and Big Picture Game Plan), and the potential trade back to resistance was greater than the potential risk below support.
This is not about predicting that it would go higher. It’s all about finding stocks in play, identifying favorable risk vs. reward, and letting it play out. If the stock traded lower for a loss, it still would have been a great trade. Because a great trade is one that can be repeated a thousand times and provide a positive expectation of profit.
AM Game Plan Notes Shared in Trader90
Subsequent Price Action
In Trader90, you get access to our best ideas each morning. Learn about in-play stocks, tradeable levels, second-day plays, and changing fundamental trades throughout the day.
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