Today we take a look at a few trades one of our members took. It is a great example of why not to give up if your previous trade idea does not pan out. Paddy takes his first initial trade for a modest 8c gain. He is utilizing the 5 minute chart on FB. The emphasis is on GREAT risk managment. Paddy is willing to risk a little and be open to whatever upside (or downside) a stock has to offer. The second trade he takes he jumps into a hammer candle but doesn’t let it fully form and doesn’t wait for a break above the hammer. This trade resulted in a 10c loser. He then sat in observation mode until he saw another setup below the bottom bollinger bands and 2 wicks. After setting his entry and stop, he is filled and the trade is now moving in his favor so he is trailing up his stop. This leads to a nice gain that easily is double the size of his previous small loss.

The next ticker Paddy traded was FFIV on the 5 minute chart. Paddy takes an entry almost immediately after the stock un-halts. Clay emphasizes giving a stock off of a halt time to digest the news and halt before even planning a trade. He gives himself 1 add to scale in and eventually locks in half for profit before ultimately getting stopped out of the entire trade for a loss. He then takes another trade because he was pissed off he lost money on the first trade in this name. All logic goes out the window on this second trade but in the end he does wind up making money. Don’t put yourself in the TORTURE CHAMBER by doing that! Things are much calmer and simpler when you have a nice small risk on your trades.

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