Morning Scoop
Happy Friday! Despite the short week, it’s been a short but choppy market, leaving us all with a bit of whiplash. But no worries, we’ve got some trades ideas and out first market tip to share with you today. Let’s dive right in and close out the week strong!
Markets
- $SPY’s have gone nowhere this week, we started the week around $4050 range dropped below $3970 and currently as I write this we are near the lows of the week.
- uncertainty is something the market does not like and it feels as if the market can’t make up its mind on if we start heading lower or break out of this range towards the upside.
- Expect to continue to see sloppy price action, there too much history to the left off us price wise, it will be a while before we get out of the big ups and downs.
Trade Ideas
$META
- Type of trade: Day trade
- Entry: above 169-170, currently sitting at 170 pre-market, go area for potential trade.
- Exit: below red line, currently 169, you can give yourself more room but don’t risk more than $1.00 here. can move down quickly.
- Target: range can vary, with it being a day trade, you can look towards yesterday’s high or right below. with it being a short trade i’d be happy capturing a $1.00-$2.00 move and moving on.
$SHOP
- Type of Trade: Day trade
- Entry: if it can hold at or above 41, id look for this area which is sitting on the 21 day Moving Average.
- Exit: below $40.85 and if you want more room go below $40.50 as exit.
- Target: Short trade, capture a $1-$2.00 move and get out, you don’t want to get caught up in chops.
**Market keeps pushing lower, these are some ideas today but I highly recommend watching today. There is potential for more downside risk today.**
Tricks of the Trade
Risk Management
Mastering the art of exits is often overlooked and deemed boring, but it can make or break your trading success. If only I had known this at the beginning of my journey, I would have focused my efforts on learning exits before entries. Being stuck in a trade where every cent move up or down against my position had me on edge, sweating and hoping the position would move my way. I prayed for any god willing to listen to my plea. After experiencing many losses and wasting tons of money, I began to size down, losing a little bit less. Trading doesn’t have to be so painful. Losses are part of the game, so it’s important to learn your threshold for pain when losing money and work from there. Start small and keep it simple. I risk no more than 1% of my total account and rarely hit that. I typically choose an amount for the day and if I lose that much, I’m done for the day. Trust me, your future self will thank you for keeping it simple.
Conclusion
We got some solid trades on deck, again as I mentioned yesterday. I’m not a huge fan of trading Friday’s, so if I do you can bet it will be small position. No need to waste the week on one bad trade today just to trade, sit back and just watch if you want, and if you absolutely feel the need to trade. Keep it small. Good luck and trade smart!
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