Have you ever wondered what the professional traders are doing behind the scenes to pull money out of the markets, regardless of whether stocks are red or green on the day?
In this educational email, I'll be showing you exactly what I did to make $20,191 from Tesla on Friday morning (on a bloody day for most!)
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1. Figuring out which side of the market is stuck.
These gains were not due to luck. This morning I came to the market prepared and I noticed two things.
A. Most stocks were selling off on good earnings.
B. Tesla had trapped traders above $400.
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Knowing that Tesla has spent one month trading above $400, we knew that once it started to snap, stops would get triggered and the stock would slide as short term traders took their losses. |
2. Being patient for the "losers" to dump their positions. |
I rarely try to predict the market. In my opinion, trying to guess which way the market will go for the day is for suckers. We wait for others to play the "tug-of-war". Once one side wins (the bulls or the bears), we wait for the losers to puke their positions out.
Once Tesla had snapped below $400, the tide had turned. Now we go to step 3. |
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3. Understanding when a stock has moved too much, too fast, intraday.
Let's not forget that TSLA now has nearly 1b shares outstanding and 740m shares in the float after the 5:1 stock split. For every $1 Tesla moves up or down, the market cap increases/decreases $930m. |
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In the first 90 minutes, nearly $25b was wiped out from TSLA stock. That's a bit much, don't ya think? It was due for a bounce.
We had identified 382-378 as a high probability bounce zone for Tesla on the first touch into that area.
Knowing that stocks don't just go straight up or straight down, we bought the Tesla 10/30 390 strike call options when Tesla was trading at 380, right in the middle of our zone. |
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4. Not overstaying
Understanding that anyone who bought TSLA in the last 30 days is underwater now, I wasn't going to hang around for too long on this trade.
When you feel pain, what do you want?
You want the pain to stop!
Same goes for trading. When people are underwater, they try to sell for breakeven. This causes "overhead supply" or "resistance".
I was simply looking for one quick relief bounce and then I would flip short on the pop back up against $400.
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Tesla gave us the high probability bounce and I used that relief bounce to book my gains. |
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Those options that we bought at $1.77 and $1.74, we were able to close at $2.45, $2.76, and $3.25. This trade lasted less than 30 minutes.
Where else can you buy something at $1.7s and sell it at $3.2s thirty minutes later AND have the odds in your favor?
This is why I love day trading. |
5. Knowing when to flip sides |
Since the buyers were trapped in Tesla today, we knew that any pop back up against that $400 level would be a good short. I started in short at $392 by buying the October 30 $385 puts at $0.98 and $0.96. |
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Thirty minutes later the stock pulls back 10 points. I covered it for 6 points and left money on the table but it's always better to be safe than sorry! |
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Those puts that we purchased for less than $1, I was able to sell at $2.85 and $3.1
The proof is right above you, those are actual screenshots of my orders today. |
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Now there's only so much I can say in this one tiny email. I could teach forever, it's what we love to do here at TT.
If you like trades like these and aren't sure where to start, I highly recommend you check out our program out here. We trade live M-F and post our entries and exits in real time. You could've taken the exact same trades as us had you been in our room this morning.
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So if you're actually serious about becoming a consistently profitable day trader where you can make a full time income in the first 60 minutes of the market open to produce results like the above, this is where you want to be.
And to give back to all the struggling traders, I'm giving you a one time 35% discount for Halloween. This stacks on top of the current discounted price.
Coupon Code: HALLOWEEN2020 for 35% OFF
Looking forward to helping you succeed!
Trade Safe, Trade Smart, |
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