We start off today’s webinar about proper stop loss placement and some do’s and dont’s. The example we look at is quite a volatile one which brings up the always important aspect of risk management.

Today we interview community member Vic who traded NTNX on the 15 minute chart. Vic watched as NTNX announced earnings after hours. He really loved the volume data that was happening compared to past performance. After looking at history from the daily and below, he sees that the name is relatively in no man’s land on the 15 minute chart. As the chart approaches its recent lows, Vic takes a short position and admits that his RvR was not the best. Since he is not exactly sure of his entry, it is hard to know. As the trade bounces against him, he decides to scale in some more shares. In hindsight, Clay and Vic talk about what would have been some more ideal entries he could have taken. As we move the chart into the next day we see that it eventually cracks the support it was holding and he’s now well into the green. The beauty of his management at this point is that he did not just close the whole thing because he was profitable. He is now trailing his winner but didn’t want to hold for another night since a sizeable amount of his account was in it.

He points out many things he needs to improve on which should be what every trader strives to do.

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