Hubert Senters here.
Let’s take a look at E-Trade Financial Corporation. Their symbol is ETFC. A little bracket trade here obviously gap down on some news of them cutting commissions and stuff. Looks like a lot of broker turns are racing to the zero commission evidently.
No one like that had a gap down situation. And then what you had here is if you did the bracket here I will walk you through this because I get a lot of questions about this. Let’s say this is your first initial bracket after that gap down.
You don’t really care why it happened. Sometimes you do but not so much. If you did an execution below $35.11 then you got short. Obviously you always use a stop-loss and you can always lose money in the market so only play with money you can afford to lose.
But if you did a close below you never got a fill on $35.11. So you do need to know going in ahead of time or am I going to do a trade below the $35.11 and if you are you would got to fill here and here. If you’re going to do a close below then you would have never got a fill on the short side.
But today you would have and you don’t know that’s going to close out so you’d have just watch it is getting very close. Oh it’s almost 4 o’clock. And it’s at $37.22 coming down to $36.87. I’m going to go long into the market.
You can also do this. You can just wait until tomorrow and then get long, very important make sure that you have a plan before you go into battle because it’s all going to go to hell in a hand basket at one point in time.
Just because you’ve got a plan does not mean it’ll go according to your plan but you’re more likely to survive it if you do have a plane and you know how to react to your primary, your alternate, your contingency plan and your emergency plan.
Mark Helweg is going to be doing a special webinar on ‘’How to Potentially Profit from Huge Market Moves without Predicting the direction,’’ which would be very useful in today’s markets because you’ve got $400-$500 move to the upside and to the downside.
And when I say $400-$500 I’m talking for 500 points in the Dow. We still have these massive swings up and down or not a lot of reason to them lately so this is going to help you potentially make some money in the markets without happening to predict the direction. I’m going to HYPERLINK to this registration page.
Good luck. Hope it helps. See you on the next video.