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I've talked before about how if a trade doesn't work for you, you should stick with it and watch for a better opening.
But what if you miss your entry altogether?
Let's say you were bullish on a stock, but you missed when it shot up through the VWAP.
You could wait and hope and pray that it will come back down to give you another shot at it...
And a lot of times, that is a great way to play the markets.
But while this stock is shooting up, you have the ability to do a quick scan to see if other opportunities are out there.
Of course you can't just magically find another winning opportunity...
But you can narrow down your search a lot easier using a term called pin action.
Pin action is a term used by my brother 8ball. And it refers to the idea that if one stock is moving significantly in a certain way, other stocks in the same field will tend to mimic that movement.
The term pin action comes from bowling. Once the ball hits one of those pins, the pins hit other pins and cause a chain reaction.
The markets act the same way.
Take what's been happening to the banking sector recently with the stock market.
The bad news had made these stocks extremely volatile to both the up and down sides.
And often times the violent moves of one stock will be repeated across the sector with other stocks.
This happened today with First Republic Bank (FRC) and Pacwest (PACW).
In the Warlock's World today I missed the entry into FRC.
And I was mad that I was distracted with another stock while this one took off.
But did I just lick my wounds and go home? Of course not.
I looked at the rest of the banking stocks hit by the recent crisis.
And I immediately got into PACW because it just went green.
Click here or click the video below to see my entry...
PACW would eventually go from 9.38 all the way up to 9.60 this morning.
And I couldn't have been happier with the trade.
Sure, I didn't get in on FRC.
But for every trade you miss, there's 10 more out there waiting for you to snatch up.
I trades like these out in the Warlock's World every day.
So, don't just sit there twiddling your thumbs.
The post Here's How You Can Find a New Trade If You Just Missed Your Entry appeared first on This Is VWAP.
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