0 Q&A from Today’s Webinar
Kevin – 12:28 pm
Q: If you have 5 markets in the one sector all giving trade signals, do you take all 5 trades?
A: If you have enough money in your trading account to trade whole lots of 100 shares then there is nothing wrong with taking 5 positions but it may be better to trade in an ETF for that sector and only take one position instead. This will make it easier for you to place a stop loss instead of having to manage 5 separate positions.
Jeff B.- 12:37 pm
Q: Hi AJ, what’s your thoughts on STLD?
A: STLD is showing a nice long term upward trend on the weekly chart and the stock looks as though it is bouncing off of the 200 day moving average. I would take a long position on the next green candle if you are not already long and place a sell stop just below the most recent low set on 7/24. Should the stock close below 29 on higher volume I would close out of the position.
Bert L- 12:18 pm
Q: Can you relate resistance level to option?
A: Before anyone decides to trade options it’s important to know that the price of the option is based on the underlying stock. So if you are seeing one of your stock positions hitting resistance you would make a move to protect any option positions that would leave you in an equivalent long. This would include Long Calls, Long Call spreads, Short Puts, or short put spreads. As you learn more about option trading you will discover what the delta of a position is. It is also very important for every option trader to know what the net Delta is for their option positions. The delta is the amount the option will change for every one dollar change in the underlying stock.
Karl M. – 12:38 pm
Q: Can we look at ADBE?
A: Adobe Systems (Ticker: ADBE) is one of the more volatile securities out there and as a result of the added volatility it will have a tendency to attract the equity and option traders to it. ADBE has recently broken above the 200 day moving average. This would be viewed as a positive, however, it still needs to get above the 50 day moving average to convince me that we have broken out over short term resistance. Once it does this I would feel more comfortable owning a long position in this stock. Once long, you would place a stop just below the most recent low set on July 14th and should the stock close below 37 you would exit the long position and move to cash. Should you decide to ignore my advice about putting a stop on Adobe you may regret that because this is a stock that could easily sting you if you decide to fight it.
Frank L. – 12:50 pm
Q: When using 5 day 15 minute chart for day trading does it validate a true indicator rather then the daily 100 day
A: I’m not sure I understand what you mean when you ask, “does it validate a true indicator”. I always look at price as the truest indicator around supported by volume. It doesn’t matter if I am looking at a 15 minute chart of a 3 year Weekly chart, we read the pivot points just the same and support and resistance found in price is our indication of where supply and demand are for a particular stock. Don’t get too caught up in the indicators because most of them are derived from price or a range in price. Keep it super simple and learn to read the charts like a pilot reads weather patterns. You won’t be right all of the time but you will know when a storm is developing on the horizon. When it does, defend your position….and for the rest of the time keep the wind to your back.
L. B. Chamblee – 12:55 pm
Q: What’s the title of your book?
A: The name of our book is The Market Guys 5 Points for Trading Success by Wiley & Sons. You can find it in our store or you can go directly to www.amazon.com and search for it there. Please, if you buy it on Amazon, do us a big favor and leave a review so that others can get an idea of what they can expect from this piece of work.
Michael T. – 1:00 pm
Q: Thanks, one of the best webinars so far for me
A: Maybe this is not a question but I do want to thank everyone for joining us today on the call. Our goal is to continue to roll with the market and explain our strategies along the way. Each and every webinar will be different - we will continue to improve on them each and every week. If you have not had a chance to listen to this weeks On Demand Radio Show, then please do. Yes I am picking a fight with Jim Cramer simply because IT’S SOMETHING THAT HAS TO BE DONE. Too many people are getting hurt listening to the emotional feedback that is being flung across the airwaves and it is my opinion that the network should boot him off the air. Entertainment? That it is…good advice? That’s another story.
Have a great weekend.
Leave a Reply