Hello, traders! This is Barrie Einarson from Trade Ideas, bringing you today’s edition of “What Makes This Trade Great.” Let’s dive into an intriguing trade that our AI picked up today: Groupon (GRPN).To Subscribe: https://go.trade-ideas.com/SHQ
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First, I have to admit, every time I see Groupon in the market, I’m surprised they’re still going strong. I remember those endless coupons flooding my inbox years ago. Yet, here they are, continuing to make waves. Today, they released their earnings, and it triggered a short opportunity at $14.52. The stock has since dropped to $13.41, marking a 7.6% decrease. Quite a move!

Here’s where it gets interesting. The AI flagged this opportunity during the 9:45 AM, 15-minute candle, marked by a down arrow. Initially, you might think you missed the chance as the stock gyrated in that first hour. However, let’s break down what actually happened.

Despite the early volatility, there was a solid window for an hour post-alert where you could have entered the trade. The action hovered around the $14.52 mark, giving ample opportunity to short. Let’s look at the timeline:

• 9:45 AM: Alert triggered.
• Next 45 minutes: The price action remained close to the alert level, offering multiple entry points.

The key takeaway here is patience. Many traders get discouraged, thinking they’ve missed the perfect entry. But, as this Groupon example shows, sometimes the better trade setups occur after the initial alert. If you had waited until around 11:00 AM, you would have seen a much more orderly decline. The stock moved steadily downward, making it a smoother ride compared to the choppy action earlier on.

This illustrates why I always advise using the AI-generated alerts as a watchlist. Even if you miss the initial spike, the market often provides a second chance. Keep an eye on those levels, and you might find an even better opportunity down the line.

Not every trade will follow this pattern, but today’s Groupon example is a perfect illustration of why it’s crucial to stay vigilant and patient. The market rewards those who wait for the right moment. So, next time you think you’ve missed out, remember Groupon and watch for that second chance.

That’s all for today, folks. I’m heading back to the trading room. Have a great evening, and we’ll see you tomorrow for more trading insights. Check out my homepage for more information.