This content is restricted to CTU members
Today we take a look at AAPL on the 5 minute chart. We see a bull pole and it starting to consolidate under a key moving average. Clay talks about how entry points can lose their attractiveness based on certain criteria (consolidation). Clay discusses how he uses size and stop loss amount to figure out how much he is willing to risk ahead of the trade. After discussing proper ways to manage our risk, we see that the price does move up but does not stop out anyone on the short trade. After talking about how much people have mitigated, we see that the chart continues to head down in our favor. Even though Clay got stopped out (because he uses tight stop losses to trail his winners) the chart continues to fall quite nicely. This is another great example of why we don’t believe in ‘profit is profit.’ Trades like this can happen and we have to leave ourselves open to them.