Pre Market Gaps

How did you rest last night? I slept like a baby, must of needed it… Actually woke up an hour early today with no alarm, just got up and got going. We all need more days ( or nights ) like that..

Markets are pretty flat again this morning. The price on the S+P didn’t move much, it’s sitting at 5,597.12 Remember we want to see it up above 5,600 with conviction, meaning it gets there, rises up and holds, not wavering. That will be bullish ground.

Yesterday I spoke about a Vertical play on TSLA. A trader reached out to me afterwards, allow me to expand. I said that had I of gone with Blind Calls and not the Vertical my loss on it would of been $250.00.. Well that is with cutting the loss small, that is what we do here at investingwithfaith.com.. We let our winners ride, and cut losses small. The cost of a blind call for that trade would of been $1,362.00 per contract… Multiply that by 5 contracts our total potential loss would have been $6,810.00…That would of been if we had simply held to “Wait and See, or Hold and Hope” and it went further south.… We didn’t let it get to that point. Even if we had gone “blind” we still would of lost $1,250.00 yesterday. Instead we cut loose at a loss of $12.50 per contract, times 5 came to $62.50 loss…..

$62.50 was our loss since we used Verticals ( kind of like using STOPS for stocks ) Same cut loose method ( TSLA was down 1% on the day ) would of cost us $250.00 per contract times 5= $1,250.00 Or worst case scenario we went blind, and just rode it out total loss would have been $6,810.00

TSLA is now up 0.38% here in the Pre Market 😆 

What did “Uncle Warren” teach us? RULE #1 Don’t lose money, RULE #2 Go see RULE #1………… Time to grind…………..

Invest wisely, live charitably and be well

Brother Bill