Ever since October Apple (AAPL) has been going down. That is great for me as it has given me a great opportunity that I took advantage of today. With my new Lightning Trade setup as I have called it Apple has fit perfectly into it. So much so that as of this writing with Apple at 193.5 it is a free trade. What that means is my exit that I won’t move will be higher than the entry price.
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The Setup
I won’t go into all of the details of the trade setup. I’ll focus on the entry and exit points for this trade. You are here to make money so lets make some money!
Currently price is at 193.5 that is just below the blue box. The current exit is just below the grey box at 228. I always go a little bit off of the hard exit point because too many times I have seen price barely hit it where you wouldn’t have gotten filled but it was enough to end the trade. So I try to not be too greedy and get out a little early rather than mile it for 100%.
I think 95-98% is pretty darn good out of a 100% for max profit potential on a trade. Don’t be greedy, that’s how I blew an account once that I talked about before.
So that’s the first ext point.
What if Price Goes Lower?
See that magenta bar at the bottom of the screen? That is your next entry point. I have my limit order sitting just above it at 161.50. If price goes down and touches the magenta line at 160.6 (or within a few cents because I always leave room for me drawing the lines not 100% accurate) then the exit will move to just below the blue box at 194.
So if you get in now at 193.5 you are guaranteed to make at least 50 cents (Go shorty, its your birthday!) if you don’t get in at any other time if price goes lower.
If price continues to go lower than 160.6. then just get in wherever you want because the exit does not move from 194.
For me I would probably get in around 142 if price continued to go lower, that would be my next entry point but it isn’t necessary if you don’t want to tie up too much of your money in one trade. I always try to keep every trade total investment around 5-8% of my total account size. I do have 2-3 stocks where I am over 10% which goes against my rule but even if all 3 of those go bankrupt (they won’t) then my account still is not busted. But that is the very worst case scenario.
And I never ever trade on margin. These trades can take months even though this is a 1 hour chart I am using for this Apple (AAPL) trade. I would like to use options but I haven’t figured out how to make them work with the time decay factor since I never know how long these trades take to get filled for my exits.
Conclusion
Well that’s it for today. The Lightning Trade is my new favorite setup I discovered a little bit ago. It works faster overall than my other trade setups on average and gives much higher returns. Also if you wait for the “free trade” to happen (it doesn’t happen too often) then you can set it and forget it. You don’t have to keep on adjusting your exit points like I have to with my Bread and Butter Trade.
My other two trades are the 127-143-161 and the 38-50-61 trade (really cool names I know).
If I had to rank them as my favorite then they would go:
- Lightning Trade
- 127-143-161
- 38-50-61
- Bread and Butter
Even though the Bread and Butter is the cornerstone of how my trading style was created, it is also the trade that can take the longest and requires the most adjusting the exits.
All of these trades were discovered from meditating that you can read about how to do it here: https://evancarthey.com/how-to-become-a-profitable-trader-using-meditation/. The lightning trade was discovered because I was looking for a trend or momentum trade. I didn’t have one of those in my arsenal so after a couple of weeks of meditating I had the frame work down.
Then after some trial and error, more tweaking, and a little more meditation I got it setup to what works for me. You can do the same. Look within, not to others who are trying to rip you off with their trading rooms and thousand dollar courses.
My goal is to set others up for lifelong success so you can create your own trading style and not have to rely on anyone else ever again. I hope to help other people destroy poverty.
P.S. – If this post benefits you and if you haven’t used Robinhood for trading stocks (they don’t offer forex) but are thinking to then please consider using my referral link when you do sign up: http://share.robinhood.com/evanc203.
This way each of us will receive a free share of a random stock if you sign up through my referral link.
My Robinhood Review: https://evancarthey.com/review-robinhood-trading-service-with-no-fees-part-1/
