Recovering from a Big Loss in AMD - Day Trading Recap

Table of Contents

1. Introduction
2. Trading Day Recap
   • Loss in AMD
   • Profitable Trades on Disney and Tesla
3. Trading Strategies
   • Thor's Signature Trades
   • Level 2 Signals
4. Trade Analysis
   • Disney
   • Tesla
   • AMD
5. Recommended Resources
   • Paris Webinars
   • SMB Capital
6. Conclusion

Introduction

Welcome to today's trading Recap! In this article, we will review the trading day and discuss the various trades made on the US Stock Market. We'll look at both successful and challenging trades and analyze the strategies employed. So let's dive in and see how the day unfolded.

Trading Day Recap

Loss in AMD

Unfortunately, the day began with a significant loss in AMD. Despite the initial optimism, a bad trade at the market open resulted in a large loss. The trader admits to not managing the position properly, leading to the negative outcome. However, the loss was later recovered through profitable trades on Disney and Tesla.

Profitable Trades on Disney and Tesla

The trader managed to turn the day around with successful trades on Disney and Tesla. Disney, which had experienced a beating in recent years, was ripe for trading opportunities. An open-range breakout strategy was employed, taking advantage of the stock's upward Momentum. The trader skillfully utilized level two signals to navigate the trade, resulting in a profitable outcome.

Similarly, Tesla presented a signature shorting opportunity. The stock was shorted near the premarket high, following the lead of experienced traders in the community. The trade showcased the effectiveness of shorting at resistances and utilizing key levels. Despite leaving some potential profits on the table by exiting the trade early, the overall outcome was positive.

Trading Strategies

Thor's Signature Trades

One of the trading strategies discussed is Thor's signature trades. These trades involve shorting stocks at resistance levels, particularly around R3 and R4. By identifying weakness and shorting near the premarket highs, traders can capitalize on downward momentum. While not every trader prefers this strategy, it has proven to be successful for those who employ it effectively.

Level 2 Signals

Another strategy showcased is trading based on level two signals. Level two data provides traders with a deeper understanding of the market depth and real-time buying and selling orders. By closely monitoring the time and sales, traders can gauge the strength of a move and make informed trading decisions. This strategy was particularly useful in the successful trades on Disney and Tesla.

Trade Analysis

Disney

Disney's earnings and its undervalued status presented a favorable trading opportunity. Trading was executed using the open-range breakout strategy, with a focus on the 5-minute timeframe. Level two signals played a crucial role in confirming the strength of the breakout. The trade resulted in significant gains for the trader, highlighting the effectiveness of analyzing key levels and utilizing level two data.

Tesla

Tesla, known for its volatility, offered a signature shorting opportunity. Traders capitalized on shorting the stock near the premarket high, following Thor's lead. The trade exemplified the importance of taking advantage of resistance levels and utilizing key moving averages. Although the exit was early, the trade still yielded positive results.

AMD

The day started off on a disappointing note with a significant loss in AMD. The trader admits to making a mistake by entering a trade without proper assessment and follow-through. The stock squeezed up, resulting in multiple stop-outs and substantial losses. However, it serves as a reminder that trading can be unpredictable and mistakes are inevitable.

Recommended Resources

Paris Webinars

For those interested in expanding their knowledge in trading, Paris Webinars come highly recommended. Paris, known for his prowess in order flow and time and sales analysis, offers a comprehensive 35-hour Course. The webinar covers various topics, including position sizing and trading terminal techniques. Paris also provides mentorship Sessions, an invaluable resource for developing consistency in trading.

SMB Capital

SMB Capital also offers a trading course that focuses on order flow and time and sales analysis. Their mentorship program provides guidance and support for traders looking to enhance their skills. SMB Capital's expertise in trading education makes them a reliable resource for aspiring traders.

Conclusion

In conclusion, despite the initial setback with the loss in AMD, the trading day ultimately proved to be profitable. Successful trades on Disney and Tesla showcased the effectiveness of various strategies, such as open-range breakouts and shorting at resistances. Furthermore, the analysis of trades emphasized the importance of level two signals and key levels in making informed trading decisions. As always, trading carries risks, and losses are a part of the journey. It is crucial to continuously learn and adapt to navigate the ever-changing market landscape.

FAQs

Q: What strategies were employed in the successful trades on Disney and Tesla? A: The successful trades on Disney and Tesla utilized open-range breakouts and shorting at resistance levels, respectively.

Q: What is the significance of level two signals in trading? A: Level two signals provide real-time data on buying and selling orders, enabling traders to make informed decisions based on market depth.

Q: Are there recommended resources for further enhancing trading skills? A: Yes, Paris Webinars and SMB Capital offer comprehensive trading courses and mentorship programs to enhance trading skills.