{"id":409,"date":"2009-02-25T08:24:49","date_gmt":"2009-02-25T13:24:49","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=409"},"modified":"2023-04-10T17:07:40","modified_gmt":"2023-04-10T21:07:40","slug":"excellent-riskreward-trades","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/excellent-riskreward-trades","title":{"rendered":"Excellent Risk\/Reward Trades"},"content":{"rendered":"<p>This post is going to be short but sweet.\u00a0 I will highlight two trades from today.\u00a0 The first is a technical trade that was highlighted on our <a href=\"https:\/\/www.smbtraining.com\/blog\/trader-90-trader-365\">AM Ideas Sheet<\/a>.\u00a0 The second is an example of a low risk entry point in a stock that is usually quite difficult to trade intraday.<\/p>\n<p>Recently,\u00a0 gold has been very strong.\u00a0 For the past two weeks it has been trending higher.\u00a0 But the traders on our desk noticed relative weekness in some of the mining stocks.\u00a0 This type of divergence often offers incredible risk\/reward setups.\u00a0 If the mining stock you are following is making lower highs as gold is making new highs then you start to look for great entry points on the short side in case gold begins to show weakness.<\/p>\n<p>During the past few days ABX has shown support at the 35.50 level.\u00a0 In the premarket we saw some strength in the equity futures and weakness in the gold futures.\u00a0 This was a perfect scenario to short ABX below 35.50.\u00a0 The chart below illustrates the opportunity that this setup offered today.<\/p>\n<p>The second trade involves GS.\u00a0 My partner recently blogged about how difficult a stock this can be to trade intraday.\u00a0 The truth is that unless it is trading at a major inflection point or has shown great strength or weakness during the trading day then actively trading GS is a losing proposition.\u00a0 Today,\u00a0 as the financial stocks rallied it showed the most strength in its sector.<\/p>\n<p>From 12pm to 12:45 it was in a nice uptrend.\u00a0 Then it began to move sideways.\u00a0 After failing at 87.56 it had a pullback to 86.84.\u00a0 The next upmove breached the previous intraday high.\u00a0 But this breakout failed and over the next five minutes it pulled back to 87.\u00a0 This was a good risk\/reward entry point.\u00a0 GS had not violated the uptrend that began at 12pm and there was some support at the 87 level.\u00a0 Over the next few minutes GS traded through its high on very heavy volume.<\/p>\n<p><a title=\"ABX\" href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/02\/abx.bmp\"><img decoding=\"async\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/02\/abx.bmp\" alt=\"ABX\" \/><\/a><\/p>\n<p><a title=\"GS Uptrend\" href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/02\/gsuptrend.bmp\"><img decoding=\"async\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/02\/gsuptrend.bmp\" alt=\"GS Uptrend\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This post is going to be short but sweet.\u00a0 I will highlight two trades from today.\u00a0 The first is a technical trade that was highlighted on our AM Ideas Sheet.\u00a0 The second is an example of a low risk entry point in a stock that is usually quite difficult to trade intraday. Recently,\u00a0 gold has been very strong.\u00a0 For the &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/excellent-riskreward-trades\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":143,"featured_media":411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,8,15],"tags":[4676,135,18],"class_list":["post-409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","category-steven_spencer_steves_blogs","category-trading_theory","tag-day-trading","tag-levels","tag-smb-capital"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Excellent Risk\/Reward Trades | 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\/excellent-riskreward-trades\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Excellent Risk\/Reward Trades | SMB Training\" \/>\n<meta property=\"og:description\" content=\"This post is going to be short but sweet.\u00a0 I will highlight two trades from today.\u00a0 The first is a technical trade that was highlighted on our AM Ideas Sheet.\u00a0 The second is an example of a low risk entry point in a stock that is usually quite difficult to trade intraday. Recently,\u00a0 gold has been very strong.\u00a0 For the ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/excellent-riskreward-trades\" \/>\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=\"2009-02-25T13:24:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-10T21:07:40+00:00\" \/>\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=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" 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