After half an hour had lapsed, Netflix shares were traded at last day’s high, having filled the opening gap. I continuously entered multiple long positions at that level, being very confident that the stock will at least test the support level. I was long twice at 87.25, which was proven to be the day’s low, but exited tens of cents higher missing the forthcoming uptrend. Perhaps I should have scaled out and let some of the positions run, but the high stock price didn’t allow me to buy a lot of shares. Most of my trades included just 200 NFLX shares, which were enough though to secure meaningful profits due to the volatility.
Day trading Netflix stock didn’t require more than price action in order to make money yesterday. No need to watch for sophisticated indicators, to apply complicated technical analysis or monitor all NFLX-related news. Entering long when the gap was filled even after the support level confirmation and using a trailing stop right below the most recent retracement would have led day traders to exit their positions at the day’s close, making about 10 dollars per share! By setting a tight stop loss a little lower than the support level when the gap was filled (1-1.5 dollars per share) would define that trade as an excellent trade in reward-risk terms! Using lower time frames would obviously improve that ratio enormously! It would be then up to trade management for day traders to take advantage of Netflix uptrend.
Day trading Netflix stock at 15-secs chart - Gap filled
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The stock market is a market where stocks are traded. Just like the super market is a place to buy and sell groceries, a stock market is a place to buy and sell stock.
The stock market is a market where stocks are traded. Just like the super market is a place to buy and sell groceries, a stock market is a place to buy and sell stock.