Below is our newest installment of the 2014 edition of The PlayBook Checkup with Bella, author of One Good Trade and The PlayBook. During these sessions a trade archived by a new trader from our desk will be reviewed by Bella. Attendance is free for SMBU Tools subscribers, who can also ask questions during the event. Watch this video review of $TSLA Breakout Trade.
Highlights:
1) This trade offers an example of a news event that substantially moves a stock. In this case a surprise move to the upside on product sold.
2) Watch how this pro trader waits for price to confirm his long thesis and controls his R/R.
3) Aspire to be at your trading station with the feel that you are in the Real Trade, with your R/R opportunity, and in control of the trade. This is how you get paid.
You can be better tomorrow than you are today!
Mike Bellafiore
PS: After four months of waiting SMB DNA has reopened! Receive your free three videos on the core concepts for SMB DNA here.
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2 Comments on “The PlayBook Checkup: Breakout $TSLA (Video On Demand)”
Excellent trade description, thanks, it really made me think!
I find some ambiguity with the hard or manual stop. I always use a hard stop, partly because as you say a fast mkt can result in a much larger loss than planned. What is the advantage of using a manual stop only?
Terrific question! Inspired a blog post coming: What is the advantage of using a manual stop v a hard stop?