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.
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!
PS: After four months of waiting SMB DNA has reopened! Receive your free three videos on the core concepts for SMB DNA here.
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?