REV broke the high of the day after 9:45 a.m. And while that trade would've been decent if you took profits into resistance near Friday's high — the better play was to wait.
Because after the morning high of day break, REV pulled back. It dipped below VWAP to lure in more shorts…
Then it slowly worked its way back up and broke out to new daily highs again after noon. And that $4.75 level was also Friday's high.
That's exactly the move I said to look for in Pre-Market Prep…
So what's the lesson here?
We're entering summer trading. And there's an old adage in the market, sell in May and go away. So I don't think there's an edge in trading before 9:45 a.m. in the summer.
That means traders should adjust their expectations for every trade. Take profits into spikes and don't get greedy.
If a stock sets up for another leg higher, you can always get back in.
There's no need to be aggressive. Even on green market days...
Yesterday was an easy day for me to resist FOMO and stay patient. Because it only takes one good trade per day to grow your account.
But one mistake can take your account from $5,000 to $352 real quick. Right now is a good time to focus on developing good habits and staying conservative.
If you want to see how I help new traders find setups that can help them grow their accounts — join the SteadyTrade Team.
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*Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.
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