Today we have a guest on the webinar to speak about his trades for the day and how he traded them. Nate primarily trades off the 2 minute chart but uses multiple time frames to confirm if he believes something is oversold or overbought (using bollinger bands) (xmas tree alert). Nate and Clay have a great discussion on why they may decide to pull an entry order depending on the time left for a candle. A wolf candle forms right after his entry and then the bid just firmly collapses. This leads for a great gain in 7 seconds. Clay and Nate then discuss how they would have managed this if it hadn’t been within the last hour of the day. They then discuss how he would manage it the trade were to go completely against him and it provides a good insight into risk management.

Clay discusses the psychology between a xmas tree to the upside vs the downside. When people see a stock roaring up, it is not uncommon for folks to chase and buy into those large over extended move. On the flip side, stocks that are crashing hard generally find it much harder to locate buyers. Most people are panicking and selling everything as fast as they can.

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