Day Trading Stocks With $100,000 | Episode 14

TL;DR

The trader recovers from an early loss by buying a DWT dip, averaging up as the position strengthens, and locking in more than $1,000 on the trade. The decision rests on the observed inverse movement between /zl and DWT, along with SMA, VWAP, support, resistance, and overbought signals. Read on for the entries, risk controls, and backup-plan logic behind the result.

Transcript

okay so we have $400 profit so far on the open 132 on the day so let me explain to you what happened so that's election only with 4,000 shares which is a little bit under $30,000 I'm actually gonna buy a little bit more so I'll probably buy another 4,000 shares as I mean let me explain to you exactly why so let me get my order fill that should be a... Read More

Key Insights

• 🎚️ The trader focuses on buying on dips and selling on price increases, using support and resistance levels as indicators.
• ❓ The correlation between the direction of certain futures, such as /zl and DWT, influences the trader's trading decisions.
• 🌱 The trader emphasizes the importance of having a backup plan and managing risk in trading.
• 🫢 The natural gas report is a significant event for traders in this particular market.
• 😉 The trader's overall profits for the day are affected by both wins and losses on different trades.
• 💌 The trader mentions the importance of staying disciplined and not letting emotions drive trading decisions.
• 😆 The trader has a positive attitude despite some losses and is satisfied with their overall performance.

Questions & Answers

Q: How did the trader make money in Day Trading Stocks With $100,000 | Episode 14?

The trader bought DWT after a dip and added shares as the position began showing an uptrend. As /zl made lower lows, DWT rose, allowing the trader to lock in more than $1,000 on that trade.

Q: Why did the trader buy DWT?

The trader observed that when /zl descended or sold off, DWT tended to push upward. After DWT became overbought and dipped following the report, the trader bought while expecting /zl to continue selling off.

Q: How did the trader use SMA and VWAP levels?

The trader watched the SMA line for bounces, support, and potential price targets. The middle VWAP was another key level: a break below it on /zl was expected to support a further rise in DWT.

Q: What happened on the trader's first DWT trade?

The trader waited for an overbought condition, confirmation, and a break below the EMA line, but the trade did not work out. The position was closed for a loss of about $239 before another opportunity appeared.

Q: How did averaging up contribute to the successful trade?

After buying the dip, the trader added shares as DWT showed signs of an uptrend. This averaging-up process increased the position only as the trade moved in the expected direction, followed by locking in profits.

Q: How did the trader manage risk and emotions?

The trader cut the losing DWT position, managed position size, and stayed calm when the original setup failed. Rather than chasing the closed trade, the trader followed a backup plan when a new opportunity emerged.

Q: What role did support and resistance play in the exit?

The trader expected generalized support near the area being approached and began locking in profits as DWT pushed upward. The trader also described old resistance becoming new support after the price corrected toward the SMA line.

Q: What was the final result of the trading session?

The successful DWT trade produced a little more than $1,200 on the open position before it was closed. After recovering an earlier loss, the trader finished the day with a little more than $1,000.

Summary & Key Takeaways

• The trader has made a profit of $400 on 4,000 shares and plans to buy more shares to maximize profits.

• The trader discusses their trading strategy and the correlation between the direction of certain futures and their trading decisions.

• Despite some losses on other trades, the trader remains upbeat and highlights the importance of having a backup plan.