We start the webinar by examining a minefield setup on the 5 minute SPY chart. We formulate a trade plan and discuss what makes sense from a RvR perspective. After adjusting our risk box, we establish a logical location to enter, stop out, and initial target. After our entry we see that we did not reach ideal target and discuss how much we may have taken off for ‘risk mitigation.’ We then discuss how we would have managed it as it approached our entry and stop loss.

We take a look at another trade plan on the SPY 5 minute. We setup a trade plan similar to the last trade and then Clay discusses why he would not be keen on playing it the opposite direction. While the first one may have only resulted in a small gain or break even, this one had some good follow through.

Our third example shows many examples of grandma numbers in action. This time we plan a long trade based on the 5 min on NFLX. After establishing logical entry and stop loss locations we watch how the chart trades out. This is a shining example of a ‘panic buy’ from the Shorting for Profit course. This is another example of a trade that has worked out and was a nice gain.

We take a look at LULU based on a trade alert about the ticker approaching power lines (moving averages). This provides a discussion on how entry points can lose their attractiveness as time goes on and another pattern forms. We use the moving averages to establish a better entry location. After we choose our more ideal entry location we see that we get the quick spike up we wanted and an immediate pull back. The chart then proceeds to rip through the initial target and continues to head down. After polling the class to see what they would do to trail their final shares we see that this led to a very nice gain.

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