I made a great short in the oil stock $WLL on Tuesday using the Parabolic Short Setup! This is one of my favorite day trading setups. If you’re going to day trade, having a toolbox of trading techniques and strategies is vital. As you can see in the image of my Profit and Loss screen below, I finished the day with a total gain of $8298 and $3176 from $WLL alone.
The trading strategy I used for $WLL is the Parabolic Short Setup. Here’s how it played out. This is one of my favorite day trading setups and strategies
- $WLL had run up from $3.5 to $8 in a matter of a few days
- It was hitting resistance at the $8 level
- The stochastic indicator was overbought on the five day time frame
- Oil (which I was tracking with the ETF $USO) had finally rolled over, but $WLL hadn’t followed yet
This was an ideal setup. There was a clear resistance area to set my stop ($8), the stock had exploded upwards over a few short days, and oil as a whole was gapping down. I starting shorting in the $7.90s. Here’s a brief video to help you learn how to trade this strategy.
How Can I Learn This Technique?
Trading education differs from many other types of education in an important way: it’s difficult to learn solely via video. In most online courses, you listen to a lecturer, take some notes, and memorize the material. But trading education is not like history, math, or English grammar – it’s a skill that requires practice and repetition, not memorization. That’s why stock trading education books and videos, on their own, cannot make a you a good trader. Acquiring knowledge is important, but you need acquire the knowledge, then you need to see how it’s implemented by experienced traders, and finally you need to practice it yourself. Here’s how we cover each of the three crucial steps in the Bulls Bootcamp.
The Bulls Bootcamp trading course provides that live trading education experience. We start with a month of live webinars, in which I teach the entirety of my trading system. These classes are dynamic; I expect questions and engagement from the students during every class session. During this portion of the course students are learning the fundamentals of how my trading strategies work, and they are demonstrating their knowledge in quizzes and homework. Students who ask questions, share their trades with me, and apply themselves on the homework and quizzes leave this period with a firm base of knowledge.
Step two is seeing those strategies utilized by someone who knows how to trade them. After the class sessions, we move onto a month of market recaps. These are also held live, three days a week, and are an opportunity to see the trades I made that day. We go over what worked and what didn’t, and connect the trades I’ve made with the trading strategies they learned in class. As with the regular trading class sessions, I answer all student questions and expect full participation. During the recap sessions, students will often ask me about stocks that they are currently watching in the market. This is a particularly valuable aspect of the market recap sessions, as I can comment live on stocks and then students can watch those stocks move in the following days. It’s just not something you can capture with a video.
Stock Trading Simulator
Finally, students move on to a live trading simulator. This is where they put everything they’ve learned to use in a live trading environment, without risking real money. We even have a trading simulator that allows them to trade after regular market hours as if it was live! Once a student has completed this final section of the course, he or she is ready to begin trading.
If you want to learn how to trade, understand that videos and books will only get you so far. Each step of the process above is crucial. You can’t replace the value of a live instructor walking you through his strategy and his trades, step by step. I speak from experience on this, not just as a teacher, but also a trader. When I was a new trader, working with a live mentor is what took my trading to the next level.
If you have any questions, I’m always happy to chat. Send me an email and I’ll help you out!