Practice What You Preach

May 5, 2008 by Al

Today I could not find any decent setups during the morning, so I sat patiently waiting for some sort of trading opportunity. Funny enough that opportunity presented itself in the form of Yahoo. If you visited the site over the weekend, you would have seen my post detailing how to make big profits on Yahoo using a basic options strategy. Well, what do you know, Yahoo hit the low end of the trading range we discussed and put in a nice bounce. I used this bounce in the middle of the day to put on a long trade. This was my only trade for the day with a total profit of $112. Today I was able to avoid the choppy action of the morning by simply doing nothing. Once you are comfortable doing absolutely nothing, you are on your way to becoming a master day trader. In the below video, you wil see how after Yahoo jumped off the roof this morning, it was slowly able to work its way back above the 10-ema. In conjunction with closing over the 10-ema, Yahoo also closed above its last swing high of $24.33. This created a great setup, which we were able to trade successfully.