Are you having difficulties trading the markets during the current bear market? Do you think it’s impossible to structure a day trade with 2:1 reward to risk ratio?
In this week’s video, I share with you a trade set-up from Friday, March 27th, 2020. My goal in this video will be to demonstrate to you that even during the massive, highly volatile bear market that it is possible to find great trading opportunities that meet a 2:1 reward to risk ratio. I also share with you my reason for this trade and how I managed this simple trade set-up.
As I opened up my charts on Friday, I was eagerly looking for a trading opportunity. My Bias indicator was signaling sell only, so it didn’t take long for me to realize the best trading opportunities would be to the short side. As the markets began to retrace higher, I was starting to get excited, thinking to myself I could get a trade set-up soon and be done trading for the day, even before 10:00 a.m. if the trade was profitable.
I quickly placed my sell stop order just below the closing candles low and waited patiently. But the trade never filled, and the next candle closed with a higher low. I once again quickly moved my order just below the low of the candle that just closed, and before I knew it, I was in a short trade.
Once I was in the trade, I grabbed my Fibonacci tool and measured from my entry price to where I placed my stop-loss order. I knew at this point; my target would have to be set at the 300% level to give the trade a 2:1 reward to risk ratio. Thankfully, I also have a trading system that uses rules for trade management.
The way I manage most of my Hybrid trades is by moving my stop-loss order once price has moved to the 200% level. I know what you’re thinking. What 200% level? The 200% level that I drew out when I first measured from my entry-level to my stop loss level.
In closing, I would like to once again remind everyone about the FREE live streams hosted by myself each week. These live streams are an excellent opportunity for traders of all skill levels to ask questions and interact with me live. Again, this experience is entirely FREE to you. So if you haven’t already signed up, why are you waiting? Please fill out the form below to be notified before any of my future live streams.