Lesson Video Locking in Profits on Breakout Days Video Lecture | Stock Trading: A Complete Guide (English) - Business Basics

hey what's up guys Allen here with eat
sleep Trinette gonna bring you guys a
little lesson video on locking in
profits on a breakout day sometimes it
can be hard to look at a chart and know
where to find you know specific support
or resistance areas so you know when you
should be locking in profits or you know
keeping the position open and trying to
see if it's gonna continue higher
locking in profits is super important
you know especially on a day where a
stock has good volume makes a large move
you know larger than what a you know you
typically see in that stock then you
know always expect to see a possible
pullback or a large sell-off followed so
you need to lock in profits to be
prepared for that stuff alright guys so
sit tight we'll be back in just a second
alright guys welcome back we're gonna
take a look at immu
this is one of the stocks off of our
watch list last week and we were looking
at a potential break out on this cloves
above 430 area of resistance so it
looked like we were breaking out of this
channel you have a higher low right here
so possibly you know starting an uptrend
and if we break that area that confirms
that uptrend and on top of that the
relative volume was high so I said hey
looks like this thing could break out
and we could see continued higher on
Monday on Monday that's exactly what
happened and gapped up and then pretty
much went straight up for the rest of
the day I didn't get a trade on it it
happened too quick for me I wasn't
watching it first thing in the morning
and once this already started for me it
wasn't worth getting into you know once
the move had already started being
unprepared going into the trade and the
next day on Tuesday it gapped down a
little bit and then pretty much sold off
for the rest of the day and this became
a perfect example of why you need to
lock in profits especially on days where
a stock is running larger than it
normally does expect a pretty big
pullback and you know to follow or a big
sell-off to follow after those days and
that's exactly what happened with immu
and I had somebody ask me you know what
I thought about this date right here and
if I still thought the stock was you
know just pulling back or might continue
higher and to me it looked you know more
than just a pullback or at least not a
healthy pullback or
something that was gonna you know
continue higher and I mentioned that had
I been in this trade I think you know
speaking in terms of of hindsight of
already knowing that this big sell-off
happened that at some point on this day
I would have you know stopped out or
locked in profits and not held on to it
you know into the clothes anybody who
held on to all their shares into the
clothes and was able to get on get in on
this and stay green and then held all
the way till this clothes didn't really
have a choice but to you know keep
holding it hope it goes higher or wait
to get stopped out wherever their
original idea started and it can happen
quick
so locking in profits is huge and you
don't want to find yourself in that
position following all the way back down
and you know looking at this chart here
just from a daily standpoint this 480
area is you know a pretty significant
area of resistance here that it broke
out of acted as support before this huge
gap down and that's definitely an area
you would probably want to try to see
hold you know once it's broken above so
you don't end up doing this again when
it doesn't hold and hopefully a spot to
get out but of course you know I was
saying in height sign in hindsight terms
it's easy to say that when you're
already looking at a developed chart and
then continuing forward it continued to
sold off you know exactly like I assume
that it was probably gonna do after a
big sell-off day like that so an example
of why locking in profits is you know
especially important you know all the
time but especially on days where stocks
are trading on you know high relative
volume and move larger you know than
they normally do you know expect to see
a big sell-off afterwards so another
example here
with the stock that we do have a trade
in that also decided to break out last
week is SF s and looking at this chart
here it's a little bit more difficult to
find support and resistance areas just
by looking at the daily chart you can
see this obvious area of resistance here
in the 1860s not really an area you
could use as support as where you'd want
to stop out so what you need to do to
find you know more support areas that
will represent the price action that
happened on this day which you can't
really tell just by looking at the daily
chart so you need to break your charts
down and you know the larger the day the
bigger the move the lower the timeframe
you need to use so let's look at like
you know a five minute time frame right
now so once you pull the tie the five
minute time frame up you can kind of get
a better picture on what this moved
looked like in that day and you could
see it started you know a slow kind of
grind up to where a gain volume started
breaking out and took off and pretty
much held on to most of that that big
run and before all this stuff was here I
mentioned on Twitter that I was going to
take off two-thirds of my position at
1840 and then the rest of my position
the last third I would take off at 18 if
we fell back down to 2 that price and I
ended up getting stopped out at 18
before tea I should have put it you know
a little bit below that because if you
put it right at that support area nine
out of ten times you're gonna get
stopped out of it but wasn't a big deal
I was in profits from 1719 so it was a
good trade and I wasn't too upset about
it but I definitely
wanted to you know lock in profits but
still give myself a chance to be
involved in a bigger move to a higher
breakout if it does occur with more
volume so right here as you can see into
Friday's close that 1840 area support
pretty much held up all day and right
now that's what I'd be looking at to
continue to hold up you know when that
breaks you next year's gonna be around
$18 all right guys that's gonna wrap it
up for this video if you have any
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alright guys thanks for watching and
we'll see you in the next video