hey traders in this video I'm going to talk about one of the most overlooked aspects of
successful trading and that's knowing when to not get into a trade lately I've been doing
the daily profit and loss recap videos on this channel talking about the trades that
I place for the day and my thought process behind those trades but today is going to
be a little bit different because I actually didn't place any trades and that led me to
make this video to explain why it's so important to not get into trades on some days and why
sometimes the best trade is no trade at all so in this video I want to go over some of
the trades that I almost got into today but break down why I decided not to get into them
and in doing so how I was able to avoid taking losses on these trades so the first one that
I want to talk about is elox elox if we take a look at the previous day was a big parabolic
Runner into the close it ran from a low of 3.54 cents in the morning up to a closing
price of 10.90 and it then hit a high of 14.70 later in after hours so elox was in the trade
plans in the market Master group and what we were looking for was ideally that the stock
was going to pull back into the key level which happened to be about nine dollars per
share we wanted to see that that nine dollar area was going to become a level of support
we could then buy into it for a dip buy and then make a nice profit assuming that it held
that level as it ramped back up to you know 12 dollars per share or higher however we
can see that obviously that didn't quite happen it ended up fading under that level in pre-market
so we changed the plans a little bit and I posted in the group that now I was looking
forward to reclaim that nine dollar level in order to get into a trade so although this
was at the top of my radar and I was ready to buy in if it reclaimed that nine dollar
level you have to keep in mind that key levels are key levels for a reason nine dollar is
a level where there was tons of volume traded the previous day so as it spikes up into that
level there's most likely going to be a lot of Sellers and a lot of Supply that's why
you want to make sure that level clears before you buy into the trade and in this case I
was able to avoid taking a loss by simply waiting for that level to clear and you can
see obviously it never clears above nine dollars per share it tested it got rejected and came
straight back down uh but that was one trade that I was ready to get into but I decided
not to just because the setup was not quite there now the next trade that I almost got
into but I actually missed the trade on was with mics mics was another big gap up in pre-market
we take a look here at the pre-market um we can see that it was kind of consolidating
a bit into the open and then it has this big opening Spike from the 1.30s up to 1.61.
we posted in the market master group that mics had an opening range breakout price of
1.61 cents as it was halted at that price and what I was looking for ideally was that
after that halt ended it was going to pull back into this 140 area which happened to
be a little bit of pre-market resistance on top of that the v-wap was sitting at 1.39
at the time and I was going to look for a dip Buy in that area simply risking off the
1.30 level but if we fast forward a bit we can see after the halt was over it had a big
gap up and ended up running to two dollars and fifty cents per share I decided it wasn't
really worth it to chase after this Gap up with the risk that it could very quickly reject
and come straight back down to fill that Gap back into the 160s so I didn't get into any
trade with this one either the next trade is GDC GDC is a really important one that
I want to talk about because if you've been watching these daily profit and loss recap
videos yesterday you know that I took a loss on the stock Wisa and if you watch the video
you know that what I was mentioning was these stocks that have these big runs early in pre-market
and then consolidate near the pre-market highs into the open tend to have these quick false
breakouts above those Highs at the open and then come straight back down and even though
I knew that information from tracking data I still kind of was a little bit eager to
get into the trade here with Wisa and I ended up taking a loss on that trade so with GDC
I was also looking for an opening range breakout but it was a very similar setup to Wisa so
I was a little bit more patient and I wanted to make sure that this was actually going
to clear above these pre-market levels inform some support above them before I got into
the stock and we can see it's actually breaking above pre-market levels again right now so
the key here is going to be whether or not it's able to start holding above the 7.50
level if it's able to do that there's a good chance that this could ramp up to eight dollars
nine dollars per share in the near future but if it comes straight back down under that
7.50 level like it's done every single time so far most likely we'll see this end the
day at six dollars or lower okay but anyway what I was looking for originally with GDC
that I knew not to get into was an opening range breakout Above This 7.57 level that
was the high of the opening range and we can see there were a few times here we're pushed
up into that level this second push is where I was really ready to get into a potential
trade but again I wanted to make sure that it was going to clear this level form some
support above and then I would apply into that support for a push-up to new Highs but
it rejected straight back down and I was able to avoid taking a loss on this trade by waiting
for it to give me some kind of confirmation okay so the moral of the story is simply that
sometimes the best trade is no trade at all and even as a full-time day trader there are
days when I don't take any trades okay so I know this has been a little bit different
than the recent daily profit and loss recap videos but hopefully you took some value from
this video and if you did please make sure to like And subscribe so you don't miss out
on the future videos and of course if you want to join us in the market Master group
to hear about the stocks that I'm trading in real time when I do actually play trades
of course there's going to be a link Down Below in the description for you to get signed
up the first week is 100% free so you can come try it out before you pay anything and
I'm looking forward to Growing the team and working with a team of successful traders
that are looking to master the market but anyway thank you again for watching I hope
you enjoyed and good luck with your Trading thank you
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thank you