Technically Speaking Trading Stocks and Options | Term Trading | 6-11-19 | Connie Hill


[MUSIC PLAYING] Good afternoon, and welcome
to this week’s Technically Speaking. I’m Connie Hill. We’re going to talk about
trading stocks and options, and our focus today is going
to be on intermediate trades. Let’s go through some
quick disclosures, and then I’ll show you what
our agenda will be for today. Options are not suitable
for all investors as the special risks
inherent to options trading may expose investors
to potentially rapid and substantial losses. Spreads, straddles, and other
multi-leg option strategies can entail substantial
transaction costs, including multiple commissions. PaperMoney software is for
educational purposes only. Successful virtual trading
during one period of time does not guarantee successful
investing of actual funds during a later period of time,
as markets continually change. With a stop limit
order, because we may talk about
this a little bit, you risk missing the
market altogether. In a fast-moving
market, it might be impossible to execute
an order at the stop limit price or better. Past performance of any
security or strategy does not guarantee future
results or success. All right. Here’s just a little bit
about me and some of the areas that I focus on. I’ve been a coach here since
2004 with TD Ameritrade, and really enjoy teaching
you some of the things that I see in the market,
some of the things that I’ve learned along the way,
hoping to ramp up your learning curve so you can
get to where you want to be a little bit closer. Now I see nice greetings
from Paul Pierre and from Active Andy. Nice to see you
both in here today. And welcome to each
of you as well. For some folks, this
might be the first time you’re joining us. For others, like Pierre
Paul and Active Andy, I know you’ve been
in here before. Let’s talk about what
we’re going to focus on. I appreciated Brent
Morris filling in for me last week, kind of
trying to wrap up managing trades with
short-term swing trading. We’re going to move to
the next cycle here. We’re going to look at
intermediate term trend trading. And so we’ll talk about what
is the definition of that, how is it different, maybe
then, say, swing trading. We’re going to talk
about recognizing intermediate term bullish
trade setups, and then a separate line item here, how
to identify potential entry signals because
they’re different. The setup that we’re looking for
and the actual pull the trigger are different. Hey, welcome as well, Remy
and Bob and Wayne and Ricardo. Yes, greetings to all of you. We are going to spend some
time on Thinkorswim as well. In fact, we’ll spend
probably a lot of time there. And hoping to
execute two or three trades based on what we’re
seeing in the market. Now an intermediate term trade
generally last weeks to months. It’s not days like
we have been looking at the last few sessions. But it could last
a period of time. We don’t know how long
it’s going to last. It could last for– oh, looks like my closed
captioning was off. I apologize to those
of you who needed to see that closed captioner. But it is working now. So hopefully you’ll see
that come on your screen here really quickly. An intermediate term
trader typically identifies their entry signal,
their initial exit signals, and trade management
strategies long before getting into the position. So you’re going to map
it all out before you pull the trigger to get in. Many times intermediate
trend term traders use indicators as part
of their strategy, and part of what they’re
looking at on their chart. I’m going to show
you one today that we haven’t talked about yet. I’m just going to tell
you a little bit about it. We’re not going to look at
it with every single scenario that we’re looking at today. Intermediate term
traders usually attempt to trade with the
prevailing intermediate and longer term trends. They’re not trying
to fight that trend, trying to swim along
with it, but often look for a short-term reversal
price patterns that might enhance what they’re doing. Maybe something
is– in this case, let’s say maybe it’s
been downward trending but gives a short-term
price pattern that says, hey, this trend may reverse. A trend trader’s going
to look for that, meaning they don’t always
have to find everything at an up trend right at
the time that they find it. A setup is what the stock
price action or indicator looks like before getting
the potential entry signal. And so when we
leave today, what I want you to be able to
walk away with is knowing the difference between a
setup and a signal, a setup as far as what you’re looking
for on the chart, and a signal that’s saying pull the trigger
or set up a conditional entry so that the system can
pull the trigger for you. Now let’s just look at
a couple things here. A bullish price pattern
is the first one we’re going to look for. And we’re going to
look and determine when a breakout occurs. And so here what
we’re looking at is we’ve seen the stock
at resistance, resistance. Let’s change this. So we have resistance. We have resistance again,
kind of floating sideways a little bit. And then this day here, bumping
its head up to resistance again. And then boom. This candle here is
the actual entry day. That’s the pull
the trigger date. These previous times here,
we were seeing the setup. We were seeing the stock
run up against resistance, but it wasn’t time
to enter the trade. But we could be watching for it. We could look at that
setup and know, hey, we’re looking for the
breakout, all right? So this one right here is
when the breakout occurs. Now the other one
is when you’re using an oscillator in conjunction. So in this little
example here we have, a MACD histogram, and
the MACD histogram signal is given when it
crosses the zero line. So on this little slide,
you can see that green arrow comes on when that move– which was a pretty strong move– the stock gapped up, and it
pushed that MACD reading over zero quite a ways. And so if you’re using that
for part of your signal, then the setup would be– I’m watching for it–the
setup would be, hey, I’m seeing it roll up. It’s still below zero,
but it’s rolling up. And then the trigger would
be the actual, I would say, close above that zero line. Now a bounce or a breakout. The stock is trading near
potential support or resistance areas. That’s just kind of a
summary of those two. Generally you’ll
find this one is kind of your breakout scenario. Let’s get rid of that. This next one–
so we just talked about the breakout signal. Number three there says
indicator-based entry signals determine your
indicator-based signal, meaning what we just
talked about with the MACD. One question you
want to determine in there is how old can this
signal be and still be valid. We talked about this green
arrow here on the MACD. Can it be there for five
days and still be valid? Are you only going to do it on
the first day, the second day? When we’re looking
at trades that are intermediate
term, remember, we’re not quite as quick focused. We’re not as got to
jump on it, johnny, as we might be
with a swing trade that we’ve been studying
in previous weeks. We might have a
little bit more leeway because as we’re working
with this trend trade, the idea here is we’re
going to ride it up. We’re going to ride a little
pullback, going to ride it up, ride a little pullback. Ride it up, maybe it goes
sideways for a little bit. But the trend’s still intact. So when we’re looking
at those signals, you might get a fresh
signal here with the MACD. It might becoming and moving up. Might level off
here a little bit, might be pulling
back a little bit. And then boom, it
either surges again, or if it’s been below
zero, it pops up again. And so there could be multiple
points within this trend that you find those
entries that you can use. All right. We’ll come back
to that one later. Let’s go take a look
at some things here. Let me pull up my Thinkorswim. And let’s look at
an example here. We’re going to look at
several examples, actually. Get this up where I need it. The stocks that we’re going
to take a look at today, sometimes I get questions about
where did you find these stocks that we’re looking at today? The stocks that we’re
looking at today came off of this watch
list, which actually is the result of a scan. And my scan is called– I’ll show you here it’s called– Day Movers, meaning they’re
moving some degree today, with a 5% gain in
the last two months. Well, if a stock’s had a 5%
gain in the last two months, more likely than not
it’s upward trending. Doesn’t have to be. And it only has to be up 5%. So technically, it could
be a little bit sideways and then just maybe be up right
now in the last two months. But that’s where these came
from is from that little scan. I’ll show you that scan
really quickly here. We’ll come over here
to Stock Hacker. I’m going to come up here and
select on Load Scan Query. It’s called Personal. Day Movers with 5% gain
in the last two months. If I go ahead and
select on this, it’s going to show you
what my criteria is. The price of the stock
has to be at least $10. Today’s percent change. Up to this point in the
day, I’m looking for it to be up at least a
percent and a half. Many of them are more than that. The average volume
in the last 30 days has to be $500,000 or more. And then the price
change is we’re looking for a 5%
increase in the price of the stock over the last 40– This says 40 bars ago,
which is essentially going to be in the last six weeks. I think on my little
description here, I had a month. But technically, it’s a
little bit longer than that. And so if I hit scan
here, essentially we’re going to receive the same
results that we have over here. But because I have
that scan saved and the watch list saved– well, I should say
the scan saved– it’ll refresh that for me
every day when I pull this up in my watch list over here
in the left-hand side. All right, so that’s
where that came from. And you’re going to
see on our list today, let’s see, we had about 29
stocks that met that criteria. There are no fundamental
indicators in here whatsoever. You might want to add
fundamental indicators to the stocks that you look at. All right. Let’s look at one here in PH. This column, I should say, is
how much it’s up or down today, 5.37%. This column over here
is how much the stock is up over the last month. So we’re seeing both
of those together. This shows percent change. You don’t see the
full title of it, and so that’s why I’m
clarifying that with you. All right. So as we look at this
particular stock, I’m going to zoom in here. We can see my blue line
is a 10 day exponential. My 30 day symbol
is the red line. Kind of gives us
an idea of trend. We’ve got the MACD on. We have here–
what’s been going on with this stock is
it’s been hitting a very short-term
resistance about this 1637. So stock runs up to it
here, it pulls back. It runs up to it again
here, hits its head, pulls back a little bit. It’s kind of a
little bit sideways. And this is interesting. Yesterday, when the
stock opened up, it had cleared that barrier. It had cleared that
resistance area. But by the end of the day,
it closed down below it. Now if somebody were
looking at this setup, they would say, hey, I’m seeing
this having a hard time getting over resistance. Let’s look for a breakout. See if that stock breaks out. So the setup is up until
this time, and then any time after it gets above the
resistance, that’s where we’re looking for the signal. Now yesterday, if somebody
looked at this first thing and they saw it
gap up, they might, as part of their
structure, say, hey, I’m seeing that stock
move above resistance. And they might decide to
pull the trigger on it. Doesn’t mean you have to. Doesn’t mean they’re
the only right person. Just means that a
possibility for some people is to do it immediately. Now at the end of the
day, you might not have been sure it
really broke out because it closed
down technically a little bit lower than
that resistance line. So some people might say, well,
let’s wait and watch tomorrow and see what it does. Now tomorrow is actually
today, and we’re seeing a nice
bullish candle here, though it looks like yeah,
really is breaking resistance. If somebody wanted to have a
green arrow with their MACD to go along with
that breakout, they could wait for that
if they wanted to. The key here is
that the momentum that the MACD is showing is
going in the right direction. It’s headed up, headed up
meaning it was down sloping and now it’s starting
to slope upward. We can see a little bit from
this by the color of the MACD. The ones that are kind
of more brighter red are where it’s
dropping down more. Where it’s more of
this burgundy color, that means it’s sloping up. So that kind of gives
you a visual cue, even if sometimes these
bars on the histogram look a little bit
close to each other. So today, could we justify
an entry in end phase energy? All right. We’ve got an upward trend. We’ve got a breakout scenario. Many times people will like
to see above average volume. We’re not seeing
above average volume. That might halt some
people to say, mmm, I really want to see
that increase volume. Other people might say, you
know, I like the looks of this. Even on days when it’s
continued to go up and up, the volume hasn’t necessarily
surged because it’s already in that uptrend. Let’s go ahead and place
a paper trade on this. One thing we mentioned in
kind of how you structure things is you want
to identify where that stop loss is going
to go before you even get into the trade. Now some people might
say, well, let’s use the lowest price the stock
has traded in the last 10 days. Maybe that’s where
they want to see it. Some people might
say, I want to see it maybe 3% below this breakout
area where that resistance was. That should now be support. Some people may say, you
know, the 30 day gives it a lot of leeway. Sure, it’s been moving
really quickly along here. But if you were trying
to trade weeks to months, we probably don’t want that
stop on there super tight. All right, so let’s do this. Let’s do a couple
of calculations, and then I’m going to
have you say what you’re interested in putting in. I’m going to have you vote. Whoever’s vote I like the best
is what we’re going to use. And if I don’t like
your vote, then– no, I’m just kidding. All right. So let’s do a
couple of scenarios. We’re going to pull
out the calculator. Come on, calculator. All right. This number here, where it looks
like is new support is 1637. So on our calculator,
let’s go 1637 times 0.97. It’s going to give us
3% below that line. That value is 15.87. I’m just going to write
it in our margin here. So that’s going to
be 3% below there. Now, if I put my mouse in that
area– and you should do this, too– put your mouse where
that calculates, 1587. Trying to get close
to it with my mouse. And kind of look at it and say,
do I really want to stop there? Does it really make sense for
me, for this type of a trade, to have the stop,
in this case, I’m going to say fairly tight
because it was only two days ago that the price of the
stock was right in that area. All right. Let’s go to the next one. Let’s maybe go to
the lowest price that it’s had more recently,
where maybe the previous low was. That’s on this candle. That low was 1456, so
let’s clear that out. 1456 times 0.97. And you don’t have to use 3%. Many people like to. But it doesn’t mean you have to. And sometimes you may say,
depending on the stock or what you’re trading,
you might say, mmm, 2% looks better. Maybe 5% looks better. Just kind of play
around with that. For purposes of our class
and for examples, many times we might just use that 3%. Now this is saying
that could go down. 3% below the lowest
price is 14.12. I’m going to mark this as B. I’m
going to mark this as choice A because I’m going to
give you a choice. I want you to vote. And 1412– oh, it’s about
right here where my mouse is. Below the 10 moving
average and the 30, and just a little
bit below that 30. Definitely giving it a
little bit more space than down below the
30 day moving average. Now just because I
told you I would, we’re going to calculate
3% below that 30 day moving average. Right now it’s at 1471. See that red number on the side? That’s telling us that’s
where the moving average is because it’s the red line. 1471 times 0.97. There’s going to be– ah, that’s not right. I think I may have goofed. Let me just check this. The actual value here is 1471. Maybe I made a typo
in one of these. 14.71 times 0.97 would
give us a value of 1426. What if I made a mistake
on my lowest price? My lowest price was actually
lower than the 30 day. OK, that makes sense. All right. So we’ve got choices A, 3% below
support, B, 3% below this price here on this day, or 3% below
the 30 day moving average, C. And I know there’s a little
bit of a delay on this, but I want you to vote
what your preference is. Doesn’t mean your
preference is right, doesn’t mean somebody
else’s is wrong. We’re going to say
it’s just a preference. All right. So go ahead and I’d like
you to vote on that. Those of you that have chatted
in and logged into your Gmail account, you’ll have
that ability to chat. If you haven’t logged
in with your Gmail, you won’t be able to. All right, Bob,
you’re the first one. Awesome. Bob likes choice B the best. All right. Let’s see if you have
any company there, Bob. Not going to wait too
long because there’s some other things
I want to cover. So if Bob’s the only one,
we’re going to take Bob’s vote. Anybody else want to vote? Wayne votes for B.
OK, we have two B’s. We’ve got three now, Bob,
Jim, Wayne are all B’s. Laurie’s a C. And
those are really pretty close, aren’t They All right. So it’s maybe 3% below
that 30 day moving average. Good job, guys. Thank you for voting. I’m going to go– oh, Pierre Paul joins Laurie. He likes this one 3%
below there as well. I’m going to take
the majority vote. The majority of vote is 1412. So we’re going to set that
up as we set up the trade. Not going to really
look at options here. We could if we wanted to. I’m going to show you
something, which is– we probably have to
go out a little bit longer for an
intermediate trade, maybe about the
November options. And you’d come out here–
say if you were somebody that is interested in options,
check out this open interest column. Make sure there’s lots of
other contracts trading out their relatives
what you want to do. And check the bid ask spread. Make sure it’s fairly narrow. 275 by 290 is pretty decent. If you wanted to go
deeper in the money, you wanted to go, say, to a 71
delta, you might go 380 by 4. That’s only about a 5% spread. And what I did with that was
$0.20 divided by the ask price of $4.00. Comes back to about 5%. All right. We’ve got a few
more B;s from Ernie. Paul has his own. Sonia’s B. Remy’s fine
with that as well. Let’s load this. So what I’m going to do right
mouse click on the ask price. We’re going to say
buy custom with stop. I’m going to just go ahead
and give us 100 shares here. We have about
$150,000 that we play with in this particular
account for our class. And so filling it up
with $1,700 of stock is not going to be a big deal. Looks like that’s the
current ask price. There’s a narrow bid
ask spread there. Get that back. Just trying to get my
Apple menu out of the way. There we go. Let’s change this price to 1412. I think there was a big war
in 1412, you history buffs. And we’re going to make
this good till canceled. Now the one thing I do want
to draw your attention here. This is an intermediate
level class, but some of you might not have done
orders like this before. Want to point out here that
when we do a Buy Custom, it changes our order type
from a single order to a first triggers all. And what that means is the
first order, the buy order, has to get filled for first
before the second order, the stop loss, would
even kick into gear. If we don’t get filled on
this initial order here today, then it’s going to cancel both
the buy order and the stop loss order, which is what
we’d want to do. You don’t want a
stop loss sitting out there making
the system think you want to short the stock. All right. So we’ve got that. I clicked on that
lock to let the latest price come through here. We’re going to hit
Confirm and Send. Just kind of read
through it, make sure it represents
what you want. Sometimes you’ll
catch errors there. You’ll see your transaction
costs for the trade. And then go ahead and hit send. All right. Now I forgot to put this
in our class account, but I’ll go back
and do that later. Let’s look at
another chart here. Let’s look at one that’s been
a pretty quick mover lately, Pampa Energia. Looks like it’s maybe a
South American company. It’s an ADR. I should say that with my
Spanish or Portuguese accent, but my Portuguese accent’s
probably pretty poor. But my Spanish is not too bad. Pampa Energia. All right. So we’ve got a 30 day
moving average that’s barely starting to slope up. Remember we talked about maybe
stocks might look for reversal patterns when a stock has been
trending down for a little bit? Yeah, this might be a rough– maybe not a perfect one, but we
may have a rough shoulder here. Head here and another
shoulder here. That’s an inverse head
and shoulders pattern. That’s a reversal pattern. We can see our 10
day exponential moving average started to
sloping up quite immediately, so we know at least the
short term trend is bullish. Now this stock’s up a little
bit already today, 4.71%. However, in a trend trade,
does that matter so much? Now on here, let’s zoom in
over the last little bit. And I want you to notice– just
kind of follow my mouse here– the 10 day moving
average just sloped up, and so we’ve had a run
up, a little pullback, another run up, maybe about
three or four days, a two-, three-day pullback. And then this is the
low day in our pullback. And so the trigger,
the time to go, is going to be a close above
the high of the low day. Now the high here is 2697. Right now the price of
the stock is at 2822. We’re maybe about an hour and
a half from the closing bell. It’s very likely that this will
close here and therefore give us that entry signal. Some people may say, you
know, if it’s moved there and it’s looking good, they
might go ahead and do it. Because you and I don’t get
to spend the day together today, then for
purposes of our class, we’re going to go
ahead and consider this to be a CAHOLD
entry, a close above the high of the low day. The one thing I
want to say on this is we need to have an
upward trend in the stock to have a CAHOLD entry. And that’s why I want to iterate
it’s barely intermediate wise, starting to roll up. But we definitely see higher
peaks and higher troughs, and that’s truly the
definition of an uptrend. All right. Now what about our stop? We’ve got our signal. This setup was just
kind of actually looking for this pullback. You didn’t have a
signal here yesterday because it didn’t close higher
than this low pullback day, so we had to wait for
the next day, which looks like we’re getting it today. You know, we could
go with somewhat below the low and going a
percentage below that low. Bob’s asked, do you look
at the body or shadow for highs and lows? Technically, Bob, you
could look for either. But technically,
the low of the day is going to be the
bottom of the shadow, and it’s going to be whatever
this low number says up here when you have your mouse
on a particular candle. Right here is the low section. So if I come over here,
put my mouse on the candle, the low here was 2571. So we can see that went
lower than our previous day. The high of the low
candle day is 2697, and that’s what we’re seeing. At least right now it’s
made a move above it and it’s trading above it even
though the market isn’t closed. Now you may be a
person that says, I want the market to close. I’ll take action tomorrow. That’s fine. You can do that. Now, as far as a
stop loss, we could say OK, well, let’s go a
little bit below our low. Let’s kind of calculate
that out initially. All right. So our low here was 2696. Let’s multiply that by 0.97. That would give us
a value of 2615. I’m going to replace this. Let’s see where
that would put it. 2615 is going to be about– let’s see here. Do you know what? I put in the wrong number. I had put in the high number
instead of the low number. So let me recalculate that. Actually, I put in
the close number. I really should
have put in 2571. Let me recalculate that. 25.71 times 0.97. All right. That’s more like it. 2493. If you calculate something and
it just doesn’t make sense, go check it out again so
that you don’t make mistakes when you’re doing your orders. OK? All right. So 2493, we know, should be
somewhat lower than the low here on this candle. So 2493, that’s about as
close as I can get to it. OK? So it’s not quite down to the
30 day, but it is the low there. Some people might want to give
it a little bit more space. Some people might say, well,
where’s our next low prior to that, or use the 30 day. If we do the 30 day,
the 30 day is at 2450. Let’s clear this out. 2450 times 0.97. Again, you don’t have
to use the 3% below. Gives us a value of 2376. That’s going to be
about down on here. And let me just kind
of zoom out a little and give you some perspective. So 2376– oh, all right. That’s about as close
as I can get it is 2374. OK? That’s where the
stop loss would go. So for you personally,
you’ll decide how much room do I want to give the stock? We’re not swing trading it. We’re not saying jump
in immediately as soon as you notice that
momentum swing, and we’re not saying jump out
as soon as you hit a target. We’re going to plan to
stay in and out, in and out as it runs up and pulls back. OK, so that number’s 2376. All right. I’m going to give you
those two choices. I’m going to take away
choice C. Nothing there. Those are the two
I want you to say. You’re going to say,
OK, we’re going to go 3% below the low of yesterday. Or we’re going to go 3% below
the 30 day moving average. I want you to type in A
or B. What do you think? And again, nobody is
right, nobody’s wrong. More personal preference. Some people might say, well,
it’s new in the turnaround. Maybe I don’t trust it and I do
want to go a little bit tighter and put a 3% below that low. Would certainly do that
with a swing trade. Would they base it on
that lowest candle. An intermediate trade,
maybe you might give it a little bit more room. OK. So Bob is first
one to vote here. Yay, Bob. Bob’s a B, Jim’s a B. Let’s
see if anybody else wants to weigh in here. So far we’ve got two B’s,
which would put it at 2376. All right. I’m going to go
to the trade page. We’re going to do the same
thing here, where we set it up. Going to say buy
custom with stop. Low price stock again, $2,800
in our $150,000 account is very small. We probably could
afford more shares. We’ll do that on another day. So we’ve got a B, a
B, a B. Wayne as well. And then Pierre Paul says 3%. 3%. Yeah, it’s either
3% below the low of the candle of yesterday
were 3% below the 30 day moving average. Looks like the
majority here is going to go for 2376, which is choice
B. Give the stock a little bit more wiggle room,
which would make sense for an intermediate type trade. Again, it’s a
first triggers all. If that doesn’t fill today– I’m going to unlock this so
we get a price that’s fairly close to where it is right now. All right. Looks like we were
filled on that as well. Now I mentioned to
you that I forgot to put these to go
into our class account. So I’m going to see here real
quick under our unallocated. Here’s our Pam. I’m just going to move it to
our Trading Stocks and Options class. And then we were just
filled on ENPH as well. Let’s do the same thing. We’re going to move it
to that group, Trading Stocks and Options. All right. Let’s look at one that I
think will be interesting here for you. How many of you guys have
been seeing this little growth stock, Roku? Maybe you have Roku at home. Maybe you have Roku competitor. Basically streaming service
of different content that goes through
your TV or your device or whatever you want
it to stream through. I was going to say
initially I think a lot of people used it for TV. So this is a stock that’s been– what’s it been up
in the last month? Where’s little Roku here? I am not seeing it. Maybe I didn’t get
it off this list. Maybe I got that one
from a different one. In any case, Roku. What have we got going on at? We have right now– we have an upward
trending stock. It pulled back, ran up,
had a nice little gap here. It’s kind of making a– I would say if we were going
to say maybe a flagpole, that might be the flagpole. And then we’ve got two
days of pulling back. That’s our setup. It’s a flag setup. We don’t have an entry yet
because we need it to break out of the flag setup. Now typically, our
target would be the top here of the flagpole. But it’s really
not that far away from where the stock is now. So some of you might say,
let’s use a higher target, although technically– come on, little trend line. Time to draw. Here we go. All right. Bottom of that bullish candle
to the very top of the flagpole. I’m going to duplicate
this drawing, and I’m going to
take this drawing, I’m going to move it
about where I would view the breakout tomorrow. All right. Now couldn’t do it today? It could, but we
would want it to break this diagonal resistance
that’s making the flag. And now you would determine
how close that would be. You might adjust this
little duplicate here. So first target
is here at 10403. Not that far away,
maybe out $4.00. And then the higher target would
be in the neighborhood of, say, 114, which we’re seeing
the end up right now. Now because we don’t
have the trigger, it hasn’t broken
out yet, we could put in a conditional order. The conditional
order would be this. Let’s say you felt like– what’s the high here today? Today’s high is 101.44. What if you felt like at 103
that this was breaking out of the flag formation? Let’s put in a
conditional order for 103. And I’m going to put
that part in first, and then we’ll come
back for the stop. So we’ll say buy
custom with stop. And we’re going to say– what did I tell you? 104? No, I didn’t say 104. 103. I’ll double check that number. Was it 103? It might have been 102. What did I say here? Our high here was 101. 102. I think I said 103. If I’m wrong, you
guys correct me. Now if we put it in right
now as a limit order, it’s going to fill because
it’s at 102 or better, and it’s trading at better. So what we want to choose this
order type 2 is a buy stop. That’s how we tell it
to wait for that price to occur and then
create the action, which would be a market order. Now it might not happen today. It might not happen
tomorrow or the next day. All right. We’re going to make that,
as well as the stop loss, good till canceled. Now we’re going to come
back over to the chart. Where would be a place
to get out on this? Where would that
initial stop loss go? Well, the initial stop loss, if
we’re playing a flag pattern– and this is maybe where there’s
a little bit difference– oh, Remy says you couldn’t see. Oh yeah, I didn’t see
Roku on my list either. So I can’t remember
where I grabbed it from. But here, in terms of a
stop loss, many times what people do, they’ll
say if it closes within the body of this flagpole
again, then take action. It’s broken the pattern. And you want to get out of it. So sometimes people use
the lowest day in the flag. In this case, let’s go 9992. If you wanted to
give it more room– let’s go 9992. Let’s go to 9980. If you wanted to
give it more leeway, if you wanted to go 3% below
the bottom of this flagpole, you could. The idea with the flag
is that if it breaks out and it comes back,
typically you’re just going to close the trade. You’re going to say, oh,
the pattern’s busted. So what did I say here? 99 low. 99. Or 9771. 9771. So let’s make this 97. I’m going to go 51. I’m going to go $0.20
lower than that. That’s just kind of arbitrary. And that would be our stop loss. Again, we’re just going to
put 100 shares at this time. And I am going to say let’s
put this in our account that’s trading
stocks and options. Look it over. Make sure you notice
the transaction fee. Make sure it represents
what you want in the trade. Now one thing I’ve tried to do,
as we kind of summarize here, is distinguish in the charts
between setups and triggers. Setup’s what it looks like
before you enter the trade and what you’re looking for. Trigger is, ah,
I’ve got my signal. Now is the time to go. And with intermediate
term trading, you don’t have to be quite
as Johnny on the spot. You don’t have to
do it immediately. Now I’m going to pass
a survey out to you here in the chat that I’d
like you to participate in. It is five questions. If you haven’t seen it before,
click on the link right now. Our session’s active
so it’ll populate. And then it’ll give you a five
multiple choice questions. Go ahead and choose those. It’ll take you about 30 seconds. Now just to summarize, we
talked about the setup. We talked about
how to recognize– looking on primarily
the bullish side, and then to look at
those entry signals. We also played a little
bit with Thinkorswim and placed those orders, and
we’re going to track those. Next week, we’ll take a look at
them, see what they’re doing. Now for you, what
do I want you to do? I want you to go
through your watch list. I want you to find three setups,
meaning it’s not quite ready. And then I want you to see
if you can identify one when it’s time to pull the trigger. Now that might be today,
it might be tomorrow. If you want to identify
more than one, great. But I want you to
reinforce what we’ve talked about so you have
that cemented in your mind. Now next week we are
going to continue with intermediate trend trading. We’re going to get a little
deeper into the process. We’re going to check the
status of these trades that we’ve done today. Coming up next is Cameron May
with a question and answer session. It’s going to go
about 45 minutes. That’s going to start
here in about one minute. So I just have to remind
you in closing that in order to demonstrate functionality
in the platform, we need these actual symbols. But keep in mind that
TD Ameritrade doesn’t make recommendations
or determine suitability of any type
of trade or security. So any investment
decision you make in your self-directed account
is solely your responsibility. Hey, thanks for being
here today, guys. We’ll see you next week. Bye bye. [MUSIC PLAYING]

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