A perk of being a SteadyTrade Team member is gaining access to live training sessions from other successful traders besides myself…
It’s always valuable to get another profitable trader’s opinion on this current market, where they’re finding opportunities and their latest approach to trading them.
So today I’m sharing some killer insights from Bryce Tuohey’s Wednesday afternoon SteadyTrade Team webinar…
He missed some pretty epic trade opportunities in Sidus Space, Inc. (NASDAQ: SIDU) and AeroClean Technologies, Inc. (NASDAQ: AERC)…
But he’s not upset. Find out why and get his breakdown of why these stocks had such epic moves below!
Why It’s Okay to Miss Trades
In Bryce’s words, “Wednesday was a banger day.”
The market is definitely back with a ton of recent big penny stock gainers.
But even experienced, successful traders have off days. And on Monday Bryce took a significant loss in AERC…
He had too large of a position and got caught in an ugly red candle that broke through support. He sold with a market order and took his first five-figure loss in a long time.
It hurt his account and his trading mentality…
That’s why when Wednesday came around, he wasn’t even looking at the market.
He took Tuesday off and by Wednesday, he still wasn’t feeling quite right…
He knew he’d force trades and take too big of a position size trying to get losses back.
Looking back at the big runners, he says it probably would’ve been a good day for him.
But he made the right decision…
When things are working for you, that’s the time to be more aggressive. But if you’re on a losing streak or struggling mentally, that’s a good time to step away from the market.
So while Bryce didn’t take any trades on AERC or SIDU on Wednesday, he gave some great insight into their moves…
Here’s what he saw on the charts and how he would’ve played them…
If you’re a SteadyTrade Team member and missed Bryce’s webinar — watch it in the archives here.
What Bryce Liked About The AERC Chart
Bryce says AERC was an almost perfect day-three surge pattern. And it had an afternoon trend break on the chart that he looks for.
He says he probably would’ve loaded up with 10,000 shares around $15, sold most at $17, riding 2,500 to $19. And he might’ve scalped some from high $19s to low $20s.
Looking back he can see it was a beautiful trade opportunity. But in the same breath, you never know if a trade’s going to work in the moment…
And since he just came off a big loss, there’s no way to know if he would’ve executed it well.
But here’s what Bryce’s ideal theoretical trade would’ve looked like…
AERC chart: June 15, 2022, 1-minute candle — courtesy of StocksToTrade.com
Why did Bryce like this setup so much?
Here are the steps he saw that created AERC’s big move…
- Step one: It opened under a multi-day support level and it instantly reclaimed it.
- Step two: It consolidated over VWAP after having the key support break.
- Step three: There was more consolidation above VWAP for the majority of the morning. Fake HOD breaks indicate selling pressure but it held up.
- Step four: The consolidation area breaks with high volume and clean HOD break.
- Step five: A slow climb after the HOD eventually leads to explosive breaks over the previous day’s high and multi-day breakout over $18.
But AERC wasn’t the only big trade Bryce missed on Wednesday…
What Bryce Liked About The SIDU Chart
Now, while I think SIDU was a beautiful afternoon VWAP-hold high-of-day break. Bryce says it would’ve been a tougher chart to trade based on his strategy…
But it had all the classic signs he likes to look for.
Here are Bryce’s key levels and areas of interest on the SIDU chart…
SIDU chart: June 15, 2022, 1-minute candle — courtesy of StocksToTrade.com
After a gap up on news (alerted by the Breaking News Chat team), SIDU consolidated in the morning, and fake HOD breaks lured in shorts … And shorts thought the low of the day break in mid-morning confirmed their bias…
But SIDU didn’t break down.
Instead, it consolidated again just below VWAP, then reclaimed it again in the afternoon.
The consolidation above VWAP gave more time for shorts to add to their positions. And it broke below VWAP briefly again before smoking shorts with high volume on the real HOD break.
These are just a few of the key levels and simple things Bryce looks for when planning his trades.
He says it will look a little different for each chart and ticker. But understanding the idea of why these key levels and areas matter is what’s most important.
Because they can create some amazing afternoon moves like we saw on Wednesday.
If you missed these moves or had mad FOMO after taking a small gain — don’t feel bad.
Bryce says there will always be hot market days. And the market will always be here…
But you have to make sure you’re still here to take advantage of them. And you can’t do that if you blow up forcing trades when you’re struggling.
Get more of Bryce’s trading wisdom in live SteadyTrade Team webinars every week.
If you want even more of Bryce — join him and Matt Monaco in Small-Cap Rockets.
Have a great day my friends. I’ll see you back here tomorrow!
Tim Bohen
Lead Trainer, StocksToTrade