Hubert Senters here.
I had a question on Amazon. I covered it in a video I think yesterday or the day before of the zone that I wanted to buy. And today, it gapped up so how do you deal with that situation? If you missed it yesterday like oh, my goodness. What are we going to do? First off you can just wait for the next set-up.
The markets will be open tomorrow unless somebody drops a bomb in New York or the United States somewhere like a big one. The markets will open the next day so don’t freak out. Use a little patience and just sit back, relax and wait for the next trade to happen and develop. Now, another thing you can do is since we think it’s going to go higher since we got Amazon here in this zone of area where you want to be a buy of then what I’ll do is I’ll use Mark’s magic math on his indicator.
And I’ll just come over here and just fit one to that actual time frame so I’ll go AMZN. And there you go. And then I’ll just look on the time frame here and I want to sneak in here and get a little bit better time frame on this situation, 15 minutes going to be a little bit too long for that situation so I’m going to hit control R, refresh this bad boy here.
And then what I’m going to do is I’m just going to put it on a smaller time frame so you can see yesterday, there’s that trade, there’s that train and then all I’m going to do is just valid down here and let’s go to 2 minute and see if I could have got into that little bit of a sneak trade there so there you have it. That’s how you can do it.
So in this situation, this is a perfect example of you waiting and being patient like you missed this first trade right here like oh, man I should have been long yesterday and if I had been long yesterday there would have been my stop, the blue line. First target yellow line. Second target purple or magenta.
And then you can see the trailing stop-loss would’ve paid you 12.8X based upon that risks. That’s not too bad if you got it. Let’s say you missed it like I did yesterday and you’re like oh man, now, it’s gapping up, now what I do? Well, it’s okay sunshine just sit and wait a minute. Don’t freak out.
Use a little bit of discipline and you go oh, my goodness, it’s gapping up at $1568 and now it’s at $1617. Oh, I’ve missed the whole move. I’ll just jump in here. No. Don’t do that. Let it pull back to you and let it initiate a new trade for you so in this case scenario it’s telling you at $1586.78 will be the entry route here.
The stop-loss will be $1578 so risking about 10 points on Amazon which is not bad. The ATR is 1.18 that’s below 3. That’s a good thing. Target one check, target two, check, trailing stop-loss, check. So just by being patient and following a plan you can still cheat. And it’s not really cheating what you’re doing is you’re hacking your psychology to let the market tell you what the next best trade is as opposed to chasing a trade.
I don’t know if you’ve ever seen dogs that chase car but most of them get hit. That’s why you say a lot of dogs with three legs so don’t chase trades. Let trades come to you.
Mark Helwig and I are going to be doing a special webinar on ‘’How to Potentially Profit from Current Market Volatility’’ in the markets and that webinar is going to be taking place Thursday, November 1st at 7PM EST. And what we’re going to be talking about is taking small risk for potential larger gains just like that example I showed you on Amazon.
I’m going to lead you over this page. Click this BIG YELLOW BOX right there to register for the webinar.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
