Why do I do this to myself...
I've told you all before that I get mad when people abandon the VWAP and start making dumb trades.
One guy I knew blew up his account on futures...
Another threw all of his money away on gold speculation...
The list goes on and on.
I preach the use of the VWAP because it sets us up with good, moving, high-volume trades.
So then why on earth did I try and trade AIXI this morning?
Xiao Corporation (AIXI) is an illiquid, barely traded, Chinese stock that I thought I had a hunch on.
The stock only had a couple thousand shares traded on it in the premarket.
But because it moved a little in the previous days, I thought it could go even higher - to the moon one might say!
But no one cared about AIXI.
I bought it at 7.15 and I expected the stock to have a blow off top and head all the way to 8.00.
It didn't do that. It only went down and I got crushed by the market.
Meanwhile, you know what worked today?
AI, CVNA, QQQ, ZIM, SOXL, FRC.
All of these names had a chance for you to trade them.
AI and FRC were amazing shorts. CVNA had a fantastic long trade in it. Even the Q's you could have played on both the short and the long side.
I know people in the Warlock's World were making money on these names.
And as you can see below, when I called out shorting AI people cashed in on the trade...
And what did all of these names have in common?
They had volume.
The VWAP works best when you have volume.
That's why it's called VOLUME Weighted Average Price and not "Unknown-Chinese-AI-Company Weighted Average price.
The old adage "do as I say, not as I do" comes to mind here.
We have a good thing with trading high volume stocks. Let's not blow it by trading awful low-volume companies.
We find winners like AI every day in the Warlock's World.
So if you aren't a member yet, I encourage you to join us today so you can start making money.
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