A trader explains why he goes aggressive when he spots a market ready to spike up. He moves stops to break-even fast, avoids wicks that trigger stops, and watches for seller pressure that could kill the move. The goal: catch big upside while risking almost nothing.
The reason I'm being very aggressive here is just because the overall flavor of the market. We're in an area where I think we could have a really big move. So I'm happy to put on light amounts of risk because I think that in this scenario we could have a very nice move to the upside. And also I want to be able to de-risk very quickly. The market kind of starts to hold up this area. I don't want to see this get faded for too long. I don't want to see it really pop under this. I don't want to put a stop there because it could wick under it and pop back up. I want to see something sooner. Otherwise, I think that there's some sellers that might take control. So here I want to see us hold above this. There we go. I'm going to go ahead and move my stops up here now to break even. There you go. As you can see, we're able to take those trades and pretty easily move our stops up aggressively and possibly be in a trade that makes a nice move. Maybe it ends up stopping us out at entry. That's fine. It does not really matter if it stops at entry. It's not the end of the world. But you see how we're able to do this by understanding how the markets actually work.
