Are You Using Rob’s Strategy To Protect Profits?

Welcome back everyone!  In these videos I like to look at things from a day and swing trading perspective.  Today let’s look at this primarily from a day trading perspective.

Right now we have a lot of rising support underneath us.  As you recall my strategy all alone has been that until we get all four Stock Indices below the speed lines, I don’t want to be aggressively short.  That doesn’t mean I won’t take short term intraday trades.  However as a rule I am going to shy away from those.  That is especially if there are certain conditions.  I will explain those conditions shortly!

I am letting this naturally come down.  I told you guys in last night’s videos that I was expecting a pullback after this extraordinarily wide ranged bar.  There is also a lot of short covering taking place there, and DOW 21,000 as well.  The number of people that joined our trading room shows how many people are getting it.  Here is why we usually tend to step aside from this condition.

We are still above the daily speed lines.  We also had hourly rising support.  Most of us wait for the big red bars before we finally jump into the trade.  What happens then is it spikes right against us.  It ends up just making another big red bar down.  Then people thing it is just going to keep going down, just for it to go against us again.  We then usually step aside and try to comprehend the lost money.  We cool off and wait and continue to see it going down.

One of two things happens at that time.  Either we shut down as a trader and freak out or we say that it isn’t right.  The big picture is that we are still above the daily speed lines.  We also still have rising hourly support behind us.  We have three hourly charts that have inventory retracement bars.  What does that mean?  We have this big rising accumulation where not only one or more institutions stop the market from going down, it drove it all the way back up.  It is a great way to watch a retail trader get chopped to pieces.  This is a major reason why I have been telling you that shorting into the rising supports can be hazardous to your financial help.  It is kind of crazy how many new students said that they saved so much money in the past couple days with that information.  It is not always about the money we make, it is about the money we make as well.  Make sure to keep those tight stop losses.  I had a stop loss yesterday for three ticks, and turned around and grossed more than that.  That is the kind of things we are looking to do.  I want to get you focused on why the four daily charts are so important on the intraday and end of day basis.  If we don’t wait for all four to go down below the speed lines, it could keep charging to the upside.   I have had some options traders come to me in the last several days who got blown up by some options gurus betting that this was going to go down.  There are also a lot of people shorting against this trend.  They are now looking at things differently.  I also want to help all of you guys look at things differently.

I hope you guys have a wonderful night!

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