Hubert Senters here.
Let’s take a look at BMY, Bristol Myers Squibb. I always have a hard time pronounce that name. I don’t know why. Anyway, let’s take a look at, in this example I’m showing you to be the ultimate breakout pro indicator and you can see in the last trade it was a $1.7X not too bad.
When you look at that let’s see the risk reward was $0.97. Not too shabby. Trade for that was $4.4X, restored ratio and that was $2.15, that’s a little high, so in this current trade right now, you could see the short was initiated at $62.82, stop-loss of $63.17, ATR $0.96.
As long as this ATR number is below $2, I’m ok. Target 1, target 2 and then trail to stop. It could potentially retrace all way up here and stop you out at $59.07. I don’t think that’s going to happen today because the market is about to close.
And then also I don’t think it’s going happen in the next few days, so I think BMR is going to continue to go lower so take a look at that. That’s really important that you know the difference between number 1, a risk. I know that my ATR risk is $0.96 and also how much potential you could have profit.
And you never going to be able to see in the future. But if you go back and look and say $1.7, $4.4, $0.1, $0.7 and then here we’re sideways, what you got to do is just avoid the sideway shop, minus one, very easy you can just put an ATR on that or an ADX.
And I can tell you to avoid these things and you only want to trade the ones that are trending well then you’re still not going to be able to delete all or avoid all the stop-losses and that’s how trading works but you put a trending filter on those things to avoid when it’s sloppy choppy and sideways.
I am going to hyperlink you to a webinar form where Mark is going to teach you on Friday at 12 PM EST ’’How To Trade Minnow Risk to Target Whale Profits.” It’s going to be Monday at 12PM EST.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
