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Up $30K on a $6K account

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.

Let’s dive into a trade I currently have open.

I haven’t closed this trade yet but it’s already doing so well profit wise that I wanted to highlight it. Especially since I’ll be covering the “magic combo” strategy behind it during my upcoming webinar THIS Wednesday.

So let’s talk about Microsoft, and why I decided to trade it…

Why Microsoft?

I entered Microsoft on Friday because of the Turbo VZO and Trend Strength Candles first and foremost. Plus there was a run into earnings and a Squeeze. 

I decided to get into it right when Microsoft breached above the 50 period SMA on the daily chart. And as I said before this is also one that had the “magic combo” that I’ve been trading lately.

What’s It Mean To Have The “Magic Combo”?

If there’s a “magic combo” present on a trade, I know I should put a lot of size into the trade. That paid off here especially because as of the start of the week, it’s gone from about $210 to $220 in less than a day and a half. On this one I decided to go just a little bit bigger as I said. So I went ahead and got 6 long calls, 2 delta 70s, and 2 delta 50s.

As you can see, the delta 70s were trading at $7.72, and now they’re trading at $16 a piece. As for the delta 50s, they were trading at $3.60, and now they’re trading at $9.75 a piece. So basically the delta 70s are up more than double and the delta 50s are about at triple.

So far I’ve made $4,000 on Microsoft overall and the trade’s not even over yet.

In the grand scheme of profits, that means I’ve made about $30,000 on a $6,000 account now. That’s up from the last time I wrote about this account. So we’re rounding out to a 6X account gain with this trade in the books.

All thanks to a setup backed with a “magic combo” (which comes down to knowing when to go big). And is exactly what I’ll be talking about in my webinar on Wednesday. If you’re interested in learning how to do this yourself, click here to save your spot for the webinar.

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