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We take a look at LLY on an extremely short time frame. Clay discusses the importance of grandma numbers involved in his trading plan. When discussing profit taking we take a look at whether to be aggressive with our profit taking and that depends on the overall trend (river).
Live Day Trade: Starting The day In A Hole
We look at FB at the opening bell. Clay walks us through finding a logical stop and target locations. A student picked a stop location ABOVE the .50c mark and we talk about why this is not a good location. This provides a shining example as to why we respect our PREDETERMINED stop loss location. You will live to fight another day if you keep your risk small and your reward large.
We take a look at SPY which forms a range in the first 4 minutes. Then we formulate a plan for someone who is leaning toward the long side. Clay has a good discussion on why when we are exiting we are looking to be slick willy (cut in front of those whole numbers that granny resides at). This also shows how you could have managed your winner and easily paid for the smaller loss (or two or three or many) you experienced earlier.
We do a top down analysis on AAPL starting with the daily chart. It is back in a new formed channel that began in August. As we get into some shorter term time frames we see where the stock has spent a majority of the time in the range. When we get to the 30 minute time frame we see a pennant formation that could be played long or short.