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Clay takes a look at SPY on the 5 minute time frame to determine what would be a logical trade plan. We take a look back at proper RvR setups and are reminded that we can NOT change our exit location. However, we can manipulate our entry point to reduce our risk and put the RvR back in our favor. While the ticker moved slightly in our favor it was not a large winner.
We see that about 2 hours later the SPY forms another pattern to which we can establish another logical trade plan. This provides a better idea of the pain undisciplined longs would be feeling had they not respected their stop loss.
We take a look at FB on the 5 minute time frame and create logical RvR plan to go short since it gapped down. Clay then discusses how he would trail his stop loss. Another shining example of why we respect our plans and adhere to strict risk management. There are no guarantees in the market.