If you find yourself a little confused in today's white-knuckle market, don't worry – you're not alone. And you don't have to just accept the volatility for what it is…
There's an invaluable tool available to you as a trader that can help you get the best price in this "unforgiving" market: limit orders.
If you aren't familiar with limit orders, these conditional order settings are available on any brokerage platform, and they allow you to automatically buy a stock or option if it falls within a specific price range. That way, you never have to subject your money to the market's whims.
Or as Chris says, with a limit order you can simply "set it and forget it."
This week, Chris Johnson has joined us on Fast Profits to tell you why limit orders are a must in today's trading.
And he's putting this knowledge to work in a prime limit order trade recommendation. As the corporate world continues operating from remote home offices, this communications stock will soon become a "must have" among professionals.
Chris is expecting a slight dip before this stock takes off for the long haul, so he's recommending a limit order to really cash in on the rebound.
Here's Chris with the recommendations…
Now's Not the Time to Be Passive – Take Every Advantage You Have
Action to Take No. 1 – Buy shares of Zoom Video Communications Inc. (NASDAQ: ZM) at no more than $120, using a Good-Til-Canceled limit order.
For those looking to leverage the move, buy the following LEAP option on ZM using a profit target of 50% or better.
Action to Take No. 2 – Buy to open Jan. 15, 2021 $130 ZM calls (ZM210115C00130000) for no more than $27.50, using a Good-Til-Canceled limit order. Aim for a profit target of 50% or more.
A key takeaway from today's video: Don't underestimate all of the tools and indicators available to you that could be adding profit to each and every one of your trades.
Other than the vitally important limit orders Chris has highlighted here, he has also briefly mentioned a few other tools he uses every day.
He calls them "technicals."
Basically, he's looking at various technical indicators that show when an opportunity is coming to a head. Here he is looking at the moving averages, a popular technical approach among traders.
But there are countless other technicals used by different traders under different circumstances. For instance, Andrew Keene, expert trader and multimillionaire, uses a system of his own making, and it's powered by a set of technicals called the Ichimoku cloud.
It's a time-tested formula coming from 20th century Japan, and in tandem with Andrew's knowledge of the inner workings of the American stock exchange, he was able to build his fortune during the 2008 financial collapse.
In fact, even on days when the markets lost thousands of points, Andrew's followers were still able to pull in multiple winning trades, all using this technical system.