Today, I wanted to highlight one winner out of the Warlock's World today.
The reason, however, isn't to gloat about how much we win...
But to show you how the same trading mindset should apply to both a huge winner and a small one.
Let's take the trade of GFAI to start.
What's GFAI? I had no clue.
All I knew is that it broke VWAP and it was taking off.
We were eyeing to get into this stock around 10.50.
And though we were a little late to the party, we had our risk set as the VWAP as our stop loss.
I was saying to the Warlock's World members to look for this stock to get all the way to 11, then to 12 then to 15.
I said the last part as more of a joke than anything. But I'd seen it happen before, and so it wasn't out of the realm of possibility.
Eventually the stock would head all the way up to 18.00 as you can see in the chart below...
Did I know that this stock was going to head to 18?
Absolutely not.
This is an AI company that I just heard of. We tried to call them, but they're based out of Singapore and weren't picking up the phone.
The way we locked in a profit on GFAI is the same way we would do it with any other trade.
You parts of your position little by little in order to lock in the profit.
This stock could have jumped from 10.50 to 11.00 and then could have fell back to 8.00.
But if you trade like me, a 10.50 to 11.00 jump is a winner.
If you want to lock in a winning trade, you don't let it roll over and die on you.
Once you sell part of your position, move up your stops so you can't lose.
For instance, on GFAI, once we sold some stock at 11.50, your stops would have been at the previous breakout.
If you set the rest of your position to stop out at 11, that's still a profitable trade.
We did this constantly as the stock moved up as you can see in my instructions below (read these bottom to top as the top instructions were the most recent):
This is just a peak into what we do in the Warlock's World.
This morning, I saw absolutely nothing on my radar that I wanted to trade.
But once the day started, things changed and I hopped into a few trades between the QQQ, SOUN, and our biggest winner in GFAI.
Remember, when you exit your position, you never do it all at one price.
Think how much you would have been kicking yourself if you exited GFAI at 12.00 and it went all the way up to 18.00.
It's a good thing we sold and got stopped out when we did too...
Else we would have given up most of our gains...
Click here or the video below to see exactly what I'm talking about...
No one can time the markets perfectly and always buy at the low and sell at the high of the day.
We secure smaller more consistent gains as day traders.
Whether this was ten-cent winner or a fifty dollar winner, I would have been doing the same thing for both.
We sell into the move. We raise our stops. And we lock in our profits.
And if you want to be a part of one of the best day trading communities around, join me in the Warlock's World today.
The post This Trading Tactic Will Always Ensure You Keep a Winning Trade appeared first on This Is VWAP.
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