Sometimes the best trades just come to you

Sometimes the best trades just come to you.

Today was a perfect example in SUPN. During our 11AM mentoring session with our new class, we discussed this important trading lesson.

Yes! we need to prepare before the open. Yes! we want to develop theses for trades. Yes! stock selection best for you is important before the market opens.

But we do not want to feel pressure to have to predict the best trades before the open. We do not want to feel pressure to have to pick the best stocks before the open. We do not want to feel pressure to be clairvoyant about the next trading session.

Trades will come to us if we sit in our seat. Sometimes the best trades just come to us.

Today I was dickering around punching up a bunch of names:

NBRV

NVDA

NFLX

MRTX

SCS

BZUN

UBNT

KORS

EFX

APOG

ALDX

and then SUPN.

I noticed that it was down about 8 percent. I noticed it was barely hanging on at the bottom of its opening range of 45.25. I observed that it could not trade above 45.40. And then the most important information of the trading session just came to me. 45.25 could not hold the offer. Every time an offer stepped down to 45.25, it was cleared.

I developed a trading plan around this information that I could not have predicted before open. I developed a simple trading plan. I developed a good r/r trading plan. Any of the new traders just starting could have traded this idea.

I shorted a small position at 45.25 to track the stock and developed a plan to add size if it traded below the bottom of the range. My stops were above 45.40. Nothing special here. Just me bopping around looking for ideas and I found one. Nothing special here. Just me observing the market and developing a trade plan.

And then this happened after it dropped below the bottom of the range: