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Education
Managing Trades
Managing swing trades differs from day trades in several key aspects:
Key aspects
Swing Trades: These are typically held for a few days to several weeks. The goal is to capture price swings or trends within a broader market movement.
Day trading gets confused with with short term swing trading. When you day trade this means you are buying and selling during the same session.
Day trading does not include overnight swings.Swing Trades: Traders need to consider overall market conditions, news events, and potential overnight gaps when managing risk.
Flexibility in Holding Period: When you have 3-4 weeks or 2-3 months on an option contract that does NOT mean you have to hold your position for the whole 3 months. If you gain 30% early, money has been made. While the initial plan may be to hold for a certain duration, traders can exit earlier if their profit targets are met or if the market conditions change
Using stop losses are different. For the most part your option greeks will keep your contract valuable because you have time on your side. Its key to understand when to cut your contract if a level breaks or if you have 1 week left before your option contract expires.
Day Trades: Risk is managed on an intraday basis, focusing on the specific day's price action and market conditions.
In both swing and day trading, having a well-defined trading plan, understanding risk tolerance, and being disciplined in executing the plan are crucial for success. If you truly donāt want to lose more than $50 bucks per trade, then only trade with $50 per position. Will it take longer to make thousands of dollars? Of course, but its part of the process.
News
U.S. and China Cyber Attack, Invest in Cybersecurity
This is not surprising as you will find hacking news against the U.S., the Netherlands (here), the Philippines (here), and more.
I think this is why $PLTR Palantir can be so valuable as a long-term company that is designed to use technology as a way to protect their clients.
Here is a statement from their website.
āWe are in an era of unprecedented disruption.Ā Palantir recognizes our customers' existential need to utilize softwareĀ for trusted, secure decision making ā and to win in the warfighting context.ā
Overview of news
The report doesnāt name any specific victims but said the āPRC state-sponsoredā hackers have targeted key infrastructure, āprimarily in Communications, Energy, Transportation Systems, and Waste and Wastewater Systems Sectors ā in the continental and non-continental United States and its territories.ā
The hackersā āchoice of targets and pattern of behavior is not consistent with traditional cyber espionage or intelligence gathering operations,ā the report says.
Investment Ideas
Three companies to add to your watchlist if you donāt have and cyber security or information technology companies in your portfolio.
SentinelOne (S) - Newer company, Recent IPO in 2021 and CrowdStrike competitor.
Palantir (PLTR) - is a software company that develops data fusion platforms. The company facilitates machine-assisted and human-driven data analysis.
Zscaler (ZS) - Cloud computing and internet security software provider.
If you want specific levels for a good entry please ask via free discord.
Trading Levels
/ES
If 5913-14 acts as resistance intraday and we start closing below this level after the first hour of trading, I think we could see lower prices offered to 4990 and 4970s.
If the 5913-14 level is to hold, we could test 5030.
The best setup if you donāt want to short the market is to wait for 4970-74 with stops below 4960 if you are hoping for a swing trade back to 5010. Risking 10 for 25-35 points.
Now trading 5008
BABA - The last post said the following below.
The plan was right on the money! Equity is best as it can save you from trying to time the move.
In general, $BABA above 71 can retest 84. I am still in a small portion of March calls and still holding partial equity from 73. Stops are a daily close under 69.
PLTR
We alerted a bullish alert since $13, now 23. Alerted in Discord & Newsletter. I think buyers are interested in the $19 and $15 levels. As an investor, I like both levels. As a trader, I think unless the market takes a turn, it will be hard for $PLTR to trade back to 15. Therefore, the $19 area may be best for an equity swing.
I always use equity for very slow movers.
$TSLA - We were wrong to long at 200 a few weeks ago before earnings. We entered today at 184, and Tesla closed today at 187.