It is tempting to blow off a Friday of trading before a holiday weekend. I was young once- the friends, the drinking, the parties, the beach, the golf, the young ladies.
The past three trading sessions we have been trading NEWL for a Reversal Trade. Day One was a rip, but a great learning lesson. Day Two more profitable than the rips from Day One. Friday was Day Three.
3.75 was a key level, learned from Day Two. But with a close of 3.35 a spike to 3.75 was only something for a trader to dream about.
What happened?
NEWL found 3.75 (chart below), even after showing more potential weakness by breaking below yesterday’s close. This was a gift from the trading gods, for those looking for a short.
Developing traders fret about being more patient with their trading. They ask for explanations of A+ setups. They are frustrated with HFTs shaking them out of excellent risk/reward trades. Well then yesterday NEWL spiked to 3.75. Every trader knew what to do there!
The trader at the top of our PnL leaderboard on Friday, because of his shorts in $NEWL, said it best:
$NEWL: That is why you show up!
Related posts:
Don’t Start Your Vacation Before Your Vacation
You can be better tomorrow than you are today!
Mike Bellafiore is the Co-Founder of SMB Capital and SMBU, which provides trading education in stocks, options, forex and futures. Bella is the author of One Good Trade and The PlayBook.
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