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Combining Phoenix + Stacked Profits

A Tuesday Trade Edition: One of the most important concepts in trading is to review your work, and learn from the good and the bad. It’s critical to identify what’s working — to do more of it. Each week, you’ll get a trade from my trading journal, in which I explain my whole thought process from start to finish. Trading is all about finding something that works, and applying it, over and over again. That’s how you find trading success. So study up on this “Tuesday Trade” and let’s get to work.

We’ve briefly touched on the topic of “alternate energy,” and it’s peeked more than a few Five Star Traders interests. So I wanted to take a look at another alternate energy ticker that I made a quick 60% profit off of.

So let’s start at the beginning…

Around the time of the election, it became obvious that there was money flowing into a new area of the market. What was that new area? The alternate energy space.

In fact, during my Options Freedom Class, I made a new grid of all the alternate energy names. The ticker that we’re talking about today, First Solar, was one of the companies on this list.

Take a look at the screenshot below which includes that new grid:

The reason I came across this ticker?

The Phoenix Finder — which you can see depicted as the grid above.

I wouldn’t even have this new grid if it wasn’t for Phoenix. So I got into First Solar by using the Phoenix Finder when it also had a Turbo VZO buy, and a squeeze, and a buy signal on the Trend Strength Turbo Candles.

This trade was truly a combination trade…

How It Played Out:

Naturally, I got into this trade on a pullback.

To start with, the most conservative entry was first an unbalanced butterfly. However, once it started shifting to the upside, I added a regular butterfly too. (Then I actually also added a debit spread.) So as you can see, I had a stacked butterfly trade on this ticker, an unbalanced butterfly, and a regular butterfly. 

The regular butterfly ended up making about 60% profit over the course of a few days. That trade was a little bit more of an aggressive trade because it was directional. Then like I said, I added an unbalanced butterfly at support, and with this one, I actually ended up taking in the initial credit received.

You can look at the profits in the screenshot below:

Because I was able to combine identifying the ticker with my Phoenix Finder and then actually carrying out the trade with my Stacked Profits Strategy… I was able to have not one, but two, solid trades in a short amount of time.

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