If you think about it really most all trades are NEWS. I remember GW telling our class to take notes on the market, what made it move. Investing should NOT be done on news. You need research to invest. A trade is there to catch the ride not the knife. Researchtrade is a great example of using news combined with research on a company to invest and then use the research to do a covered call. Trade smarter not harder.
I'll share my trade step by step today and exactly what I look at in this type of set-up. My trade today (2/16) ..RBLX. In at 13:28 out @ 13:36. bought 10, 55 put contracts for 2.64 sold for 3.05 using moving averages on 8,13,21 and 55 charts I could see almost exactly where this stock would hit before turning around.
Gary said once in our class..."Turn your candles off". It isn't a CANDLE thing or else why would he say, "Turn your candles off"? I watch those moving averages. The Bollinger bands are also moving averages and affect trades. Learn these and use multiple charts. In my RBLX trade I could see about the same price range on the 8,13,21, and 55 as to where I believed my put trade would go before a turnaround using moving average prices and seeing the trade was down.
Those itty-bitty candles on the 8 chart makes some overlook the great trade that was setting up. The expanse the Bollinger band was making was telling me there was a profit forming. Smaller candles tell me the option isn't moving as much but the expanse of the BB was saying this trade is setting up. I watched as the candles hugging the 20-moving average on the 8 chart and waited until they started to pull away from the 20. Look at a 1-minute chart and you can see exactly what I am talking about in this time frame of my trade. Although it looks like I could have gotten in earlier the option was not moving UNTIL there was a clear signal which was when the Bollinger band began to close up. Those options were not moving until then. Is it that way every single time? No that's why I look at how the option is acting as well as my chart.
I jumped on the trade. Put in GTC .50 up and was out in 8 minutes. .50 is all I ever really ask for unless I am watching the charts which I seldom do once I am in a trade. I usually head into another work area and listen to the talking heads...NEWS.
Edited 1 time(s). Last edit at 02/16/2022 06:09PM by Darcy3.
