Yesterday, when I wrote “For the Love of Trading,” in the pool on my water cell, I was focused on how much I love this profession, and why sometimes I just can’t put it down. I even talked about streaming the trading room on my phone, and how I just had to make a TSLA trade.
Well, it was one thing that pulled me away from my pina colada. One somewhat simple, yet critical pattern. That ended up booking me $6k with a pina colada in hand.
Here’s how it went…
Here’s the pattern I saw on the TSLA chart as John pulled it up in the trading room.
Now, I’d recognize that pattern anywhere.
It’s the perfect short squeeze setup — where I place a trade, looking for an overnight gap higher. Trading these moves are risky, but when they work out how they should, they result in very quick moves overnight.
And, then I saw it yesterday, even with 10 minutes to spare before the close (barely enough time to get some mobile trades on, but definitely not long enough to share and post orders) I put on a couple calls and a put credit spread.
Yesterday, it was a story of love. Today, it’s a story of money.
TSLA gaped up overnight, and has traded almost $50 higher today. It’s still going as I type this, but this single trade has already paid for this vacation.
6k in a day, not so bad
I tried to go flat, but I couldn’t let go of AMZN, INTC, and AVGO, and then of course I just had to add TSLA — which made the biggest difference. That’s because it was the biggest move — and largest position.
Which, is of course, all based on the pattern.
P.S. As always it’s totally free to attend. Now back to vacation!