Hello everyone, Barrie Einarson here from Trade Ideas with today’s edition of What Makes This Trade Great — and this one’s a little bit different, guys. To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
Use Promo Code BARRIE15 for 15% off

We had an alert to short this stock at $14.15. Now here’s what happened: instead of working right away, the trade actually went against us and hit the stop up at $14.43. For a lot of traders, that’s the end of the story. But it doesn’t have to be.

After tagging the stop, the stock came back down to the halfway point between the stop price and the original alert price — in this case, $14.29. And that’s the opportunity. If you didn’t take the short the first time, or you got stopped out, that halfway retest gave you a second-chance entry at $14.29.

Now it’s working. And if this thing can take out $14, it could really start to move down. The one thing to watch is the VWAP sitting below — that level could hold it up. But even a move from $14.29 down to the VWAP around $13.89 is not a bad little trade at all. Forty cents, clean setup, and fairly relaxing.

And honestly? Relaxing counts for something. Some of the names we’ve seen in the trading room today have been just wild. Sometimes the best trade isn’t the craziest mover — it’s the calm, well-defined setup with a clear entry, a clear stop, and a clear target.

Trade smart, everyone. See you in the trading room.

— Barrie