Introduction
Around 2020, I started my trading journey with a $2,500 account, relying heavily on price action trading. I’m B The Trader, and today I’m going to walk you through a live session where one trade became a loss while another delivered consistent profits. My process will illustrate how understanding market volatility in stock trading can yield results, even for beginners!
Trader Talks QnA
What exact price levels indicated entry on AMC?
I targeted the 18.50s for entry, with stop above 18.85 (risking ~0.35 per share initially). This formed a key zone of hesitation pre-market that offered reward potential to 17.70s short-term zone I held at.
Why did you cut losses early in the AMC short?
I realized after initial entries the stop was placed too tightly at 18.58 causing early exit. I adjusted to 18.61 (slightly wider) and doubled my position as confidence increased with failed breakouts – classic price action trading dynamics.
How did Veru work out compared to AMC?
Veru delivered consistent profits versus AMC’s loss. I averaged $16.70/share long position held through multiple profit zones included $14.50s first cover at $3/share (16% position), final stops at 18.61 vs. starting below 1850s. Yes, I do both long + short strategies depending on rejects.
When do you scale-out of winning trades?
I take baby pieces at closer zones (like $14.68 for partial covers) while holding chunks for bigger runs ($13.68-$11 targets at 7:1 R:R ratio). I usually scratch trades immediately when internet freezes – quick failure-handling matters.
B The Trader Trade Statistics
My $2,500 initial account eventually enabled intra-day shorting and swing execution on stocks like AMC and Veru. Here are the key moments:
- AMC short position loss: $0.10/share risk vs. ultimate Cobra Trading broker support for execution
- Veru long position gains: Took partial $3/share on ~16% size at early targets, holding 16% for bigger $7/share reward
- First cover at 14.68 after rejection from 17.50 area, with 1:2 time compression vs risk holding 8 hours
| Date | Time Frame | Type | Return | Exposure |
|---|---|---|---|---|
| 2023-04-05 | 1 hour | Veru Breakout | $3,000 | AMZN stock |
| 2023-04-05 | 1 hour | AMC Short | -$250 | AMC stock |
Key Trading Insights from B The Trader
These price action trading insights relate to live outcomes in defined ranges under uncertainty – what actually moves the markets with consistency:
- 1:5 reward is baseline for day ideas
- Always maintain secondary entries off failed setups
- Let react more by stepping stops >50% of target
- Close month and quarter strategies on major rejections
B The Trader Trading Strategy
My strategies blend tape reading, pivot zone alignment, and execution pressure with these rules:
Double Bottom Squeeze Setup
Identify failed breakouts under horizontal resistance lines while watching oscillator divergences (like RSI). Veru broke above downtrend confirming reversal – had I seen it hold then, would reverse to long thesis near 1790s support.
Stop Hunting Mitigation
On intra-day rally attempts, I place floating stops to avoid getting shaken out. For example, with AMC I readjusted stops upward to 17.95 to protect profits after touching $17.70 intermediary point successfully.
B The Trader Tools
These are the critical tools that enable my price action trading and execution
- B+ stock tape viewing from Level 2 depth
- Candlestick endurance elements watching close integrity
- Scroll indicators for dom near-box consistency checks
- Cobra Trading for fast execution with DMAs
Common Trading Mistakes to Avoid
Everyone hits these stumbling blocks when learning stock trading from live data like this session – I learned painful lessons live
- Don’t let profit zones define stops perfectly
- Never calculate risk solely on stock price (vs. account size)
- Avoid second-guessing shorts when strong pullbacks happen
- Don’t overestimate bounce potentials without volume commitments
Conclusion
Price action trading correctly sequences the battle between buyers and sellers based on order flow. This playback demonstrates how I work setups across stocks like AMC and Veru. Make sure to engage with the #Elitetrader community and find your own setups organically – what may look like random exchange movements is highly predictable when learning patterns with humility.