All that was just a warm up, a trader rant if you will, into my chief point.. below there's going to be a video where I'm going to break down step by step a long trade that I was looking at based on some pre-market news that we talked about in chat. This particular setup is the same setup that we see every single morning on these low float opportunities. Having said that, with every long setup I instantaneously apply a hedge thesis… meaning that if my long thesis fails I've already got a short thesis that will cover me on the back end. Which will allow me to take advantage of an opportunity while price action is sliding to the downside. Having a hedge thesis, in simplest terms, is being directionally neutral. Again I'm never long nor short. I'm simply neutral on any and all opportunities.
For example, if price action breaks a dollar long, I'm willing to get into the position and ride it to $1.25. With that said, if the long opportunity fails and $0.90 support breaks to the downside, I'm willing to short 90 cents all the way down to 75 cents. The point is we, as traders, need to be 100% directionally neutral. There is no value in caring about long stock or short stock, but understanding whether or not there is an opportunity that you can take advantage of.. Again the job of a Trader is to be neutral and to be completely opportunistic. This is an attitude that should be carried through the equity markets, option markets, forex markets, crypto, Bond and any other speculative asset class you decide etc trade.