≈ Rule based trading. ≈
When you buy 100 shares of stock, as a trade, how and where do you set your stop loss? If there’s too much variation in the way that you apply stop losses, it can lead to inconsistent returns and a lowered confidence.
Generally, traders will use analysis involving the Candlestick high or low, the support and resistance points or other catalysts to establish a stop loss rule.
If you’re not certain how to set your stop losses, try by defining your rule or idea and sharing it with the clubhouse to get input or feedback.
Clarity of rules leads to confidence. Keep it simple and define your stop loss rule.
Chart of the Day
Boston Scientific Corporation (BSX)
$BSX, Boston Scientific Corporation, is approaching its highs after strong earnings report this week. It’s a Tackle 25 stock. Remember to check the earnings dates on all the companies you track. When stocks you own have earnings, you can collar or protect them from downside risk. After earnings, consider removing the hedge or collar if the chart and risk profile open up.
Video of the day
Calculating ROI on a Covered Call Coaches Mailbag
Larry from the Tackle Trading Clubhouse asked a question about how to calculate ROI on a Covered Call. Coach Tim answers it.
Today’s line up
Clarity on Covered Calls & Protective Puts
Today we’re addressing an insightful question from Ryan that was initially posted in the clubhouse. There’s alot to unpack so let’s first look at the entire query below: “Is selling out of the money covered calls to finance the cost of a long put hedge on IWM realistic? I have been routinely finding that the premium is so low on the covered calls that it is not worth it. Today Isimulated a trade in which I bought 100 shares of IWM at $150.66. I then bought a 17 Jan 2020 136 put for $5.21. (…)
Traders Lounge 11PM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cash Flow Club Replay
If you missed last night’s episode where Tyler Craig talked about the Dirty, Sexy, Money candidate AMD. Take a Lemon and make some lemonade: build a naked put trade on AMD or would like to watch it again, check it out here.
Halftime Report 12:30PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.