{"id":34756,"date":"2013-12-21T10:24:32","date_gmt":"2013-12-21T15:24:32","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=34756"},"modified":"2023-04-27T07:12:20","modified_gmt":"2023-04-27T11:12:20","slug":"trading-lesson-2nd-day-trade-adbe","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe","title":{"rendered":"Trading Lesson: 2nd Day Trade\u2014$ADBE"},"content":{"rendered":"

Adobe (ADBE) announced their earnings recently and the stock had a big change in price the following day. The stock had heavy volume, which is something I look for to setup a trade for the next trading session. This is one of the easier trades we teach in our\u00a0training program<\/a>\u00a0and it\u2019s\u00a0called \u201c2nd Day Plays\u201d.<\/p>\n

After a stock has some type of catalyst, it attracts many large market participants who take positions on the first day. As short term traders we are trained to\u00a0analyze that price action<\/a>\u00a0and then develop a plan of action for Day 2.<\/p>\n

TRADE MANAGEMENT<\/strong><\/p>\n

I like to see the stock pull back from the previous day\u2019s highs to look for a buying opportunity. ADBE did just that and gave me an opportunity to get long in the stock with a very favorable risk\/reward.<\/p>\n

ADBE did run up on a five-minute chart after my entry, but the upward energy faded and ADBE began to sell off. I closed part of my position and had a tight stop to keep any losses small. I was still looking to see the stock reverse and continue back to the previous day\u2019s close.<\/p>\n

THAT DIDN\u2019T HAPPEN<\/strong><\/p>\n

I ended up closing the rest of my position by hitting my stop and I lost overall on the trade. It\u2019s important to control your risk and have a trading plan before you enter the trade.<\/p>\n

HAVE A TRADING PLAN<\/strong><\/p>\n

I knew my game plan\u00a0before<\/i>\u00a0I opened the trade. I knew the longer term price action of the stock and where I felt the stock\u2019s support would be and the potential profit in the trade. I knew before the trade started where I wanted my stop loss and my profit targets to be. Don\u2019t enter any trade unless you know in advance what you are going to do if the stock gets to specific prices.<\/p>\n

CONTROL YOUR RISK<\/strong><\/p>\n

My\u00a0risk was small and controlled<\/a>. At the same time, I had excellent potential profits.<\/p>\n

CONCLUSION<\/strong><\/p>\n

These trade setups happen very often and offer the trader an excellent opportunity to make money. This particular trade didn\u2019t work out, but many of them do. The two lessons learned are:<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0Know what your plan is before you start the trade<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0Control your losses on the losers so the winners bring in more than you lose<\/p>\n

I\u2019ll keep doing this trades every time I see them.<\/p>\n

If you have any questions about this setup, please leave them in the comments section below and I will answer them.<\/p>\n

Are you trading these 2nd<\/sup>\u00a0Day Plays? How have they been working out for you? Tell us your experience or ask questions if you have them and I\u2019ll answer them in the comments below.<\/p>\n

\"\"<\/a><\/span><\/p>\n

Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, options, forex and futures. He has traded professionally for 17 years. His email address is: sspencer@smbcap.com.<\/p>\n

No relevant positions
\n\"tradingworkshop\"<\/a>
\nSteven Spencer is long $ADBE<\/p>\n","protected":false},"excerpt":{"rendered":"

Adobe (ADBE) announced their earnings recently and the stock had a big change in price the following day. The stock had heavy volume, which is something I look for to setup a trade for the next trading session. This is one of the easier trades we teach in our\u00a0training program\u00a0and it\u2019s\u00a0called \u201c2nd Day Plays\u201d. After a stock has some type … Read More<\/a><\/p>\n","protected":false},"author":143,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,8,3,1373],"tags":[2351,425,727,3658,38],"class_list":["post-34756","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-steven_spencer_steves_blogs","category-technical_plays","category-trading-lesson","tag-2nd","tag-day","tag-lesson","tag-tradeadbe","tag-trading","no-post-thumbnail"],"yoast_head":"\nTrading Lesson: 2nd Day Trade\u2014$ADBE | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trading Lesson: 2nd Day Trade\u2014$ADBE | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Adobe (ADBE) announced their earnings recently and the stock had a big change in price the following day. The stock had heavy volume, which is something I look for to setup a trade for the next trading session. This is one of the easier trades we teach in our\u00a0training program\u00a0and it\u2019s\u00a0called \u201c2nd Day Plays\u201d. After a stock has some type ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2013-12-21T15:24:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-27T11:12:20+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" \/>\n<meta name=\"author\" content=\"sspencer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"sspencer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe\"},\"author\":{\"name\":\"sspencer\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/8eabc642d328f902a341eb510c67ef27\"},\"headline\":\"Trading Lesson: 2nd Day Trade\u2014$ADBE\",\"datePublished\":\"2013-12-21T15:24:32+00:00\",\"dateModified\":\"2023-04-27T11:12:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe\"},\"wordCount\":514,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#primaryimage\"},\"thumbnailUrl\":\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\",\"keywords\":[\"2nd\",\"day\",\"lesson\",\"tradeadbe\",\"trading\"],\"articleSection\":[\"General Comments\",\"Steven Spencer (Steve's) Blogs\",\"Technical Plays\",\"Trading Lesson\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe\",\"name\":\"Trading Lesson: 2nd Day Trade\u2014$ADBE | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#primaryimage\"},\"thumbnailUrl\":\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\",\"datePublished\":\"2013-12-21T15:24:32+00:00\",\"dateModified\":\"2023-04-27T11:12:20+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#primaryimage\",\"url\":\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\",\"contentUrl\":\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.smbtraining.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Trading Lesson: 2nd Day Trade\u2014$ADBE\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"name\":\"SMB Training Blog\",\"description\":\"Lessons from the trading desk\",\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\",\"name\":\"SMB Training\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"width\":230,\"height\":81,\"caption\":\"SMB Training\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/smbcap\/\",\"https:\/\/x.com\/smbcapital\",\"https:\/\/www.youtube.com\/user\/smbcapital\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/8eabc642d328f902a341eb510c67ef27\",\"name\":\"sspencer\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/author\/sspencer\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Trading Lesson: 2nd Day Trade\u2014$ADBE | SMB Training","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe","og_locale":"en_US","og_type":"article","og_title":"Trading Lesson: 2nd Day Trade\u2014$ADBE | SMB Training","og_description":"Adobe (ADBE) announced their earnings recently and the stock had a big change in price the following day. The stock had heavy volume, which is something I look for to setup a trade for the next trading session. This is one of the easier trades we teach in our\u00a0training program\u00a0and it\u2019s\u00a0called \u201c2nd Day Plays\u201d. After a stock has some type ... Read More","og_url":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe","og_site_name":"SMB Training Blog","article_publisher":"https:\/\/www.facebook.com\/smbcap\/","article_published_time":"2013-12-21T15:24:32+00:00","article_modified_time":"2023-04-27T11:12:20+00:00","og_image":[{"url":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png","type":"","width":"","height":""}],"author":"sspencer","twitter_card":"summary_large_image","twitter_creator":"@smbcapital","twitter_site":"@smbcapital","twitter_misc":{"Written by":"sspencer","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#article","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe"},"author":{"name":"sspencer","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/8eabc642d328f902a341eb510c67ef27"},"headline":"Trading Lesson: 2nd Day Trade\u2014$ADBE","datePublished":"2013-12-21T15:24:32+00:00","dateModified":"2023-04-27T11:12:20+00:00","mainEntityOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe"},"wordCount":514,"commentCount":0,"publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#primaryimage"},"thumbnailUrl":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png","keywords":["2nd","day","lesson","tradeadbe","trading"],"articleSection":["General Comments","Steven Spencer (Steve's) Blogs","Technical Plays","Trading Lesson"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe","url":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe","name":"Trading Lesson: 2nd Day Trade\u2014$ADBE | SMB Training","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#primaryimage"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#primaryimage"},"thumbnailUrl":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png","datePublished":"2013-12-21T15:24:32+00:00","dateModified":"2023-04-27T11:12:20+00:00","breadcrumb":{"@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#primaryimage","url":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png","contentUrl":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png"},{"@type":"BreadcrumbList","@id":"https:\/\/www.smbtraining.com\/blog\/trading-lesson-2nd-day-trade-adbe#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.smbtraining.com\/blog"},{"@type":"ListItem","position":2,"name":"Trading Lesson: 2nd Day Trade\u2014$ADBE"}]},{"@type":"WebSite","@id":"https:\/\/www.smbtraining.com\/blog\/#website","url":"https:\/\/www.smbtraining.com\/blog\/","name":"SMB Training Blog","description":"Lessons from the trading desk","publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.smbtraining.com\/blog\/#organization","name":"SMB Training","url":"https:\/\/www.smbtraining.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","width":230,"height":81,"caption":"SMB Training"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/smbcap\/","https:\/\/x.com\/smbcapital","https:\/\/www.youtube.com\/user\/smbcapital"]},{"@type":"Person","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/8eabc642d328f902a341eb510c67ef27","name":"sspencer","url":"https:\/\/www.smbtraining.com\/blog\/author\/sspencer"}]}},"_links":{"self":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/34756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/users\/143"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/comments?post=34756"}],"version-history":[{"count":2,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/34756\/revisions"}],"predecessor-version":[{"id":53335,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/34756\/revisions\/53335"}],"wp:attachment":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media?parent=34756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/categories?post=34756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/tags?post=34756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}