{"id":299,"date":"2009-01-13T19:30:09","date_gmt":"2009-01-14T00:30:09","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=299"},"modified":"2023-04-10T17:28:49","modified_gmt":"2023-04-10T21:28:49","slug":"the-shakeout","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-shakeout","title":{"rendered":"The Shakeout"},"content":{"rendered":"

When I am trading I do the right thing. \u00a0I am not concerned with my results. \u00a0If a stock is a buy then I buy. \u00a0If it’s a short then I get short. \u00a0If my trade doesn’t work out then them’s the breaks as they say. \u00a0And if I spot one of my better trading setups and it doesn’t work, then no big deal. \u00a0Today I had one of those nice setups. \u00a0I had one of those trades where I like to get aggressive. And oh boy did it not work.<\/p>\n

I was trading WLP on the Open. \u00a0One of our new trainees did a nice job highlighting this stock in our AM Meeting<\/a>. \u00a0And WLP was a great trading stock on the Open. \u00a0WLP held the 37 bid, after significant volume, it spread up towards 37.60 and did not go down. WLP followed this pattern till it ran out of steam at 39.50. \u00a0But what a nice move on the Open. \u00a0Some easy money on the longside here.<\/p>\n

And then things got a little bit more complicated. \u00a0If we would have just quit while we were ahead. \u00a0WLP traded down towards 38.50. \u00a0 And this was another important intraday level. \u00a0WLP could not trade below 42c. \u00a0And WLP was not trading much above 53c. \u00a0WLP was in a nice tight range. \u00a0 I was ready to play the breakout. \u00a0I got long in front of 42c a bunch. \u00a0But WLP would not trade much above 53c as noted. \u00a0And I held. \u00a0Finally 42c dropped and this is where all the fun started. \u00a0Fun for the Specialist that is. \u00a0And not so much fun for me.<\/p>\n

But this is a trade I will make 10\/10 times. \u00a0This is a trade with which to be aggressive. \u00a0This is a trade that will make you money over the course of your trading career. \u00a0Just not today. \u00a0Just not today in WLP. \u00a0Just not with this Specialist.I flipped my long at 41c and got aggressively short. \u00a0WLP traded lower. \u00a032c did not drop. \u00a0A huge print went accross at 33c. The stock never traded lower. \u00a0Ripper. \u00a0Ripper. \u00a0Ripper.<\/p>\n

I covered one of the lots that I was short at 33c. \u00a0But I got caught with two lots. \u00a0Most importantly I had trouble getting back in on the long side at good prices. \u00a0WLP slowly drifted up towards 39. \u00a0The least the Specialist could have done was included a violent upmove towards 39 after the shakeout. \u00a0I would have made back the money I ripped up below 41c if he had.<\/p>\n

Hey but this is one of the possibilities. \u00a0It is most likely that when 42c drops that WLP will trade lower and quickly. \u00a07\/10 trades I will make a chop in this trade. \u00a0Today was one of those 3\/10 times when the trade did not work. \u00a0When you short below an important intraday level you must consider the fake breakdown. \u00a0You must consider the shakeout. \u00a0And you must do this before you enter your trade.<\/p>\n

So I got out of some at 33c. \u00a0But I should have gotten out of another lot. \u00a0My mistake. \u00a0But I made a good trade. \u00a0I got beat. The Specialist can now afford that third vacation home he has been eyeing. \u00a0Good for him. \u00a0Chump! (just kidding) \u00a0He was better than me today. \u00a0We will see how that turns out over the next few days.<\/p>\n

Good luck with your trading!<\/p>\n

\"WLP<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

When I am trading I do the right thing. \u00a0I am not concerned with my results. \u00a0If a stock is a buy then I buy. \u00a0If it’s a short then I get short. \u00a0If my trade doesn’t work out then them’s the breaks as they say. \u00a0And if I spot one of my better trading setups and it doesn’t work, … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":302,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[4676,154,30,18],"class_list":["post-299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mike-bellafiore-bellas-blogs","tag-day-trading","tag-instruction","tag-prop-trading","tag-smb-capital"],"yoast_head":"\nThe Shakeout | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/the-shakeout\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Shakeout | SMB Training\" \/>\n<meta property=\"og:description\" content=\"When I am trading I do the right thing. \u00a0I am not concerned with my results. \u00a0If a stock is a buy then I buy. \u00a0If it’s a short then I get short. \u00a0If my trade doesn’t work out then them’s the breaks as they say. \u00a0And if I spot one of my better trading setups and it doesn’t work, ... 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