good morning Traders let’s talk about
taking a half loss which I did yesterday
I was up three points before this trade
and ended up down four points and
this is not a core strategy trade this
was definitely an early adopter trade I
would call this a George trade
um
so I wanted to talk about that if you’re
live on Zoom it was a very
I think it was a fantastic lesson so we
had another high time frame level I
think here at 47 it was an hourly
uh level so
we opened yesterday this is Thursday
June 15th and shot straight up and we
went right up to the recent high within
the last day yesterday I think
um went right to that high tapped it
tapped it pushed it a little bit coming
down
I’m thinking okay
this thing has ran its course it’s done
what it needed to do it grabbed its
liquidity it took out the high and we’re
going to come back in so I was
anticipating a short and I was telling
the groups that I wanted to take out
this level here
and ideally I’d like to see it take out
this level
and then I would want to go short now
the highest risk trade here is this
comes down and it comes back up and you
take that short that’s the highest risk
short the higher probability short is
the second one the second shortest
confirmation of a move confirmation of a
change most likely and that’s a safer
move I went with the first one I was an
early adopter and it cost me a little
bit but this is actually a fantastic
fantastic lesson so
um hold on I want to
there we go candle replay so what I was
telling the group is that ideally I’d
like to see it take that out come back
I’m probably going to go short now why
am I going short when this shoot up well
we’re at the top of a range
third tap up coming in it’s leaving a
fair value Gap move down and so I’m
liking the look of this
um if you’re in our group you know what
the reversal boxes are this is like a
perfect reversal box
um situation
and I was going to go early adopter now
I only did it with one mes
because this did not match our core
strategy perfectly at all
um it did not match our core strategy
and so if I have a non-core strategy
entry if I’m being an early adopter I do
it at the smallest leverage possible one
mes because if I take this short here I
have
um
this level as a backup and then I have
this higher time frame so my stop for
this trade was much larger than I
normally do 15 points okay I was
somewhere up here maybe 16.
um normally I don’t enter a trade with
that high of a stop loss but I was
willing to take it up really nice this
week I mean oh my gosh the core strategy
was just bouncing ridiculous the last
several days just been a fantastic week
so I’m like you know what I’m going to
take this risk um here no big deal it’s
contained I understand exactly what it
is and it’s cool no problem
so that was my stop loss with two backup
levels and a high time frame backup
level
um
and not to mention this came up to a
daily
fair value Gap front side okay so
typically when we hit these levels we
experience a 15 to 25 Point bounce
so
15’s here
and 25 is down here
and at this time half back was somewhere
right here so I went okay I’ll take this
short take it down to half back uh
manage knowing that we’re probably going
to get a bounce manage the trade here
this if it goes the full 15 points all
right that’s six if it goes all the way
down to here that’s 15 points I’m okay
with this trade I’m totally okay with
this trade
um so that was my thinking top of the
range bouncing off a daily fair value
Gap and a front side with an hourly
backup
fair value gapping down Okay so
now you’ll see there’s a couple things
that I messed up on first of all
I require it to take out two brake
levels before I say change of trend this
is not the best trait
as I just outlined you want to be on the
second wave not the first wave the
second wave but I was going small early
adopter top of range all those reasons
um so I felt I could defend my entry
which is something I encourage everyone
to do could you defend your entry and
know where your weaknesses were and I’ll
show you where my weaknesses were on
this
so we’re watching and go boom there’s
the fair value Gap out of that now I
wish
this had taken out this level and not
just bounced off of it
because I did say because look at my
drawing I said I wanted to take it out
and come back so this is a traitor error
because it did not match my picture
so I did enter short here and I added at
this front side actually
um I have no problem in adding inside of
my stop loss but I’ll never move my stop
loss and I’ll never add past my stop
loss so I was willing to go here and
here
um but I actually didn’t add
um I just kept it and we’ll see here in
a second so
right there I went short on that push up
here and I went man I wish it had taken
this out I remarked it on Zoom I really
wished it would have taken that out so
early adopter here no two candle
clearance it didn’t follow the rule of
taking out the two brake levels so
um
and I almost got out right there almost
just got out I mean it didn’t bounce
that I wanted it to almost got out right
there but I didn’t I like just be
patient George it’s a high time frame
level here might tap it three times and
so I was just watching I went okay
I went ooh
when I went and I told the group I’m
probably gonna take a full stop here
like it doesn’t happen that often and
then I’ve got this move here
and I went okay all right be patient
boom beautiful
so here’s what I did
I had my stop up here
at this moment though I went this price
did not do what I paid it to do I paid
it to touch my line and bounce and it
just basically went through it so I told
the group I said I’m going to
hopefully price continues down but I’m
not going to allow this this loss now
so what I did is I took the high of this
candle right here and I went two ticks
above it
as my stop I said okay you can come back
into this equal high and if it continues
its Journey great if it takes out the
high of this candle I’m out
so let’s press
the candle and I went okay
okay
this is why I will do this because many
times you’ll see it just match that high
leave this fair value Gap and come down
that’s what I was hoping for but I was
prepared to take a much much smaller
loss
um because at the end of the day I only
took a four point loss
um
and I’m cool with that who cares Four
Points one mes it’s okay now in total so
I lost seven actually Sorry Seven
because I gave back the three I made and
I was down four and that’s how I ended
the day I I only traded the morning I
took my four point loss move on it
happens so once again see how it’s just
settling here trying to and I’m like
cool cool I’m still in the trade I’m
still in the trade
and then I think right yeah right there
got me out no big deal took a half loss
at this time this thing is not
rebounding down it’s actually laddering
up get me out so just because you set
your stop somewhere up here does not
mean you have to take the full stop
so once this came back in strongly I
went okay I need to manage my trade I
can’t allow it to make a new high and
then I moved it here but ultimately I
chose this
the high of this blue candle right here
this one and I was two ticks above it
and I said if it makes a new high there
I want to be out because yeah this thing
could have grabbed liquidity one more
time and then vomited down strongly
we’ve all seen it happen but a couple
things that for my members it did not
take out the second brake level I did
not have two candle clearance this is
not a core strategy entry this was an
early adopter George trade that went
against me but I think I managed it
really really well and I wanted to share
that lesson for the people who were not
on Zoom okay guys see you in the group.
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