Below is our newest installment of the 2014 edition of The PlayBook Checkup with Bella, author of One Good Trade and The PlayBook. During these sessions a trade archived by a Junior Trader from our desk will be reviewed by Bella. Attendance is free for SMBU Tools subscribers, who can also ask questions during the event. See this review in PowerPoint: Scalping a Range Before the Drop in $GMCR.
Highlights from this trade:
1) It is possible to make cash flow while a trade is setting up to crack.
2) Learn how to put yourself in this position as a trader: if you’re right, it is possible to make serious $$; if you’re wrong, it’s possible to scratch or even make some $$ on the trade. Do you want to be that trader or someone who takes a rip when they are wrong?
3) When a Stock In Play consolidates so tightly as GMCR and it breaks, let the stock breathe. It is often a mistake to cover too quickly.
You can be better tomorrow than you are today!
Mike Bellafiore
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