So, let's talk about facebook, what's going on team, it's ricky with techbuzz solutions and for those that are asking. Why is facebook down 25 right? So if you look at this on the four hour time frame had a huge drop, your reported earnings caused the stock to drop. We talked about this in yesterday's video team. Please look out for facebook just like today, team.

Please look out for amazon. It reports earnings these tech stocks have such a large market cap that when they drop, if they drop or if they go up, they influence the overall market. So when we saw something like facebook drop, then guess what happened with ttq right, it also dropped and it's down eight percent on the day because of the influence that it has to the overall market due to its market cap, amazon is going to be reporting earnings. Today, the thing that i wanted to break down is my entire plan, and i broke it all down for you guys, please, if you guys, like these videos, smash that like button and make sure you subscribe.

If you have any questions about, my trade plan comment that down below now. One thing i need you to understand is: i was gon na make this video yesterday, as that's when i decided to buy a couple of shares today, i bought a little bit more. I am sharing with you my plan, unlike other people, i'm not here. I don't please do not copy what it is that i am doing.

I am taking on a form of risk that i am okay with. I can tolerate it. That is the difference. Do not put yourself in a position in which you cannot manage right, so, if you're, if your focus is to actually learn on how to do something, then take your own approach to it and learn from it.

You don't learn anything by copying. Others right. I don't need you to copy what it is that i'm doing, i don't need other people to jump into the same stock that i'm doing all i want to do within this. Video is share with you, my thought process, the risk to reward ratio and why i'm making sense of this trade you're more than welcome to share your opinions down below.

Just like, i am sharing my opinion and my thought about facebook stock. I was not holding facebook stock. I, like many other people, were just observing to wait for a tech stock to drop. I didn't know if it was going to be facebook.

I've never seen facebook drop more than 20 percent and guess what, when i saw that it dropped more than 20 or learn plan, profit group went crazy in the discourse out there, like. Oh, my god like this is insane. This is huge. You have to understand that, for those that were not invested, facebook was trading at three hundred and twenty three hundred and thirty dollars a price point and it dropped to lows of 250.

we're just like. Oh my god, right like this is facebook. It's it's down. So much it's viewed as an opportunity for those that don't intend to sell it right away and - and just hear me out right, i wasn't invested in facebook.

I was watching it. You know if you've been partaking in our swing trading challenge, it's a stock. That's been in my watch list. It's sold off, i decided to buy nearly 50 000 worth of facebook and i want to show you this is my unrealized pnl, i'm down 1800 since i purchased it.

My average purchase price is 250., so it's not a perfect entry and guess what i'm only 33 invested. I want to share with you my entire plan. I want you to know my in and my out my how much i'm willing to risk in comparison to how much i'm willing to potentially make right uh. This is a plan.

This is a goal. This is something to work towards, definitely not something that has to play out exactly according to plan. So, first off, one of the big risks that i'm open to talk about is facebook just dropped. It's super new all right this this.

This news of this earnings is super relevant. Can it continue to drop yes? So if you suck at risk management or if you don't want to take a loss, then buying the dip when it's still dipping is considered risky, so then don't do it again. I don't need you to jump into something just because i'm in it, that's that's not how i work. I always try to look out for especially our beginner traders.

There is a high form of risk with buying a stock, as it's still dipping. This is why we implement some form of risk management i'll get to that in just a little bit because it sold off so much. I was like okay to me. This is viewed as an opportunity.

Let's begin to break it down, i broke down the support and resistance level the support right around 240, the resistance, as of now right around 350.. This means that my support range and i can go ahead - and i can draw this out for us, so my support range would be right around this general area, so support range right around 230 240 and then my resistance range for this is going to be right. Around 350 to 340 based off of previous resistance levels, and again we can go a little bit further back. You can look at the day chart.

You can see that it's traded to highs of 384 again, i'm just trying to be a little bit more realistic. This is a very common resistance range and as of right now, this is the current support range. So this was great for me because i wasn't invested it dipped. I view facebook to be a quality company.

It's one of the 10 top most valuable companies. If i'm not mistaken, that are publicly traded and from where we're at right now, if it were to recover to 340, that's 41 roi. If it were to recover to 350, that's 47 roi if it were to recover to all-time highs, that's over 60 roi! Again, i'm not talking about a hyped up stock, i'm not talking about a penny stock. I'm talking about one of the most valuable companies, that's publicly traded in our tech market.

Today, that's that's what we're talking about right. So this is why i got so excited right, but again i need to control my motion, so this is where my position, size and risk management comes into play. So my entry point and my desired exit point. My desired entry point was around 250.

That's where my average purchase price is. This is where i showed you 250. 78. Again.

I don't have the best entry. I i'm not here to pretend that i'm a perfect trader right. I don't and i plan to buy three times as much as what i have right now, but i plan to buy at a higher price point and i'll explain that in just a little bit entry point 250 exit point 335, so 335. As soon as we begin to approach this resistance level, i'm not greeting i'm not going to hesitate to lock in profits if and when we get back to the 300 price point at any indication of resistance.

I have a goal to sell at you know 330 340, but if it begins to get rejected at 323 - and i see this based off of the moving average or whatever the case might be i'll lock in profits. My goal is to hit a specific number, but at the end of the day, if the charts are telling me otherwise i have to respect it right. I intend to average up at 265. right now we're at 241..

I intend to average up at 265, which is about 10 percent higher than where we're at right. Now, that's right on over here. Why would i do that? Well again, i have a and it might look like a lot of money again. It is a decent amount of money.

47. 000, as right now is about forty, eight thousand seven hundred and fifty dollars with my 195 shares. It is a. It is a good amount of money.

It's all about position size though, so it's the same concept. If you're trading with you know ten thousand dollars or five thousand dollars, you have five thousand dollars to work with. I have a hundred and fifty thousand dollars that i intend to buy facebook with so because it's cheap, i don't wan na - i mean buying 150 000 right now and then hoping it recovers. That's a little bit riskier again something that i technically don't want to do.

So i bought in with 50 000 and i can average up two more times. I intend to average up when it gets to 265 and again i want to see indication of an uptrend, the more it begins to recover. The more confident i will be in investing more money into this swing, trade - that's my thought, process behind it. It makes sense to me it works out.

Well for me, that's why i do it that way, you don't have to do what it is that i do. My position size as of right now is again: 50, 000, a little under 50 thousand. My intention is a hundred and fifty thousand that's about one third, so that's 33 percent, my max loss. Let me explain this because this really wouldn't make sense to a lot of you is ten percent well ricky.

Why are you willing to risk ten percent? Ten percent of a thirty 33 position size? This makes sense if you're part of lpp, i'm sure you've heard me say it all the time. It's all about position size and because my position size is lighter right. Now that i only have one third, i give myself more cushion and more wiggle room where, if i wanted to invest 150 000, i'm gon na have to be a little bit tighter with my stop loss or my exit plan, because i have more money on the Line, therefore, i have more dollar. You know a larger dollar amount at risk, so as of right now, with a ten percent loss, i'm willing to risk out of about fifty thousand dollars five thousand dollars right.

So ten percent again just hear me out - i'm willing to risk five thousand dollars of loss for the potential you know so so this trade to me is worth the risk of five thousand dollars my potential roi. So again i tried to be as realistic as possible and i didn't calculate my roi from the very bottom, so i calculated the roi from the very bottom as in like the total percentage, it's actually more than 40. But i wanted to be a little bit more conservative from so from bottom to 350 resistance. It's 47! I didn't take that into consideration.

I took into consideration my average purchase price being 265.. You saw it right now. My average purchase price is 250., but i intend to average up my average purchase price will most likely be around 265 260. So because of that, i took this into consideration with selling at around 340.

That's about a 28 roi i put 30, which is more of a realistic goal. My margin that i intend to work with is a 30 roi. That's the goal, even if i walk away with you know: 20 25. Who cares? I'm not a perfect trader? I'm not here to pretend to be my goal is to enter and exit when it makes sense.

Now this is where and what i wanted to explain by only being invested with fifty thousand dollars right now, i'm willing to risk five thousand dollars, which is about ten percent, so my downside potential, my risk is five thousand dollars now, if my trade goes according to Plan making a 30 return at an average purchase price of 265, and i make the 30. This would come out to be a 45 000 upside for the risk of a five thousand dollar downside. So the potential to make forty five thousand dollars versus the risk to lose five thousand dollars, it's a nine to one ratio for my reward versus my risk when it comes down to dollar amount. I am potentially because of my position size and how i intend to average up and the upside potential.

I could potentially make with an average purchase price of 265 and 150 000 invested at a 30 return. I will potentially make 45 000 and i'm willing to risk 5 000 of that to that to breaking down those numbers, i'm okay with taking that risk. My upside is nine times greater on the dollar, mat dollar value than my downside risk, and then my intention is to swing trade. I don't intend to sell facebook next week in the next two weeks, i'm okay with holding facebook.

I don't need this money right now and i'm trying to keep a well-balanced position size not just for best case scenario but for worst case scenario, and this is what i wanted to explain to you. I feel like a lot of people when they enter trades. They have very false intentions: they might go into it for a day trade, but then it turns into a swing trade. How many of you guys have ever done that it's one of the worst feelings, because it continues to sell off.

My intention is understanding that i'm taking on some form of risk. So if i'm down and i lose five thousand dollars that shouldn't catch me by surprise - it's planned. It's prepared. It's understood, i'm okay with that, but if things do go according to plan, i have steps in my plan that i intend to execute an effort to work towards making 45 000.

That is my complete breakdown on this swing. Trade. Please understand that facebook is bearish right now, it's selling off it just recently dropped 25. It is viewed as a risky trade based off of its current downfall.

I'm saying this because i want you to understand that i don't care for you to copy what it is that i do i'm not like other youtubers, where i try to encourage you to buy the same things that i'm buying. I don't i don't need to right. I'm okay, based off my experience and and the dollar amount that i work with i'm okay with taking on this risk myself, just like i'm, okay, with reaping up the reward myself as well. If you see value in it, set up your own plan set your effective alerts, especially if your kneewards are trading, i wouldn't buy the dip right now, there's no indication of an uptrend again trying to look out for you.

I would not buy the dip right now. I would set an alert if it begins to break above 250 255 and begins to indicate signs of a recovery. Then maybe you can revisit this. I want you to know that, regardless of my own intentions, i always want to look out for you, especially our beginner traders.

I can't stress that enough. I want you to be more conservative, more selective, more strategic with your entries and your exits, because i wish someone would have encouraged me to do that when i first got started now. I have the experience, i'm okay, with taking on a greater form of risk. As that comes with time, but understand that we all begin somewhere, so there's no reason to rush into it even with facebook.

It has a lot of upside margin. You don't need to rush into it. There's a lot of margin to work with. Remember that i want to encourage you to be the best version of your future self, and sometimes it pays to be patient, especially when you're just getting started and not wanting to get discouraged, and i really hope that you see that within these videos.

So again, i hope that i earned your thumbs up. Please consider subscribing, please be in the lookout for today's earnings, amazon reports, earnings after market hours, amazon has a market cap. If i'm not mistaken, almost twice the size of facebook, it can influence the market. So i'm gon na be on the lookout and what, if i get stop lost out today, i might right that's the risk that i take, but that's the market that i partake in and i'm okay with that friendly reminder again.

If you guys want to be able to watch me, trade live every single day. That's that second link down below it's. My learn plan profit group and you get to see my entries, my exit in real time and ask me questions in real time. Every single morning, at market open also, if you're new to trading - and you simply want to pimp out your trading setup - we're not only giving away a custom digital storm, pc and a thousand dollars on shoptechbuds.com, which is our fourth link down in the description.

If you want anything from a trading mouse pad wall, art flags, all of this is available at shoptechbuds.com and for every dollar you spend this enters you five automatic entries towards our giveaway. It's all automatic! You will get your entries at checkout and again we have everything from apparel everything that you need when it comes down to your trading journal, uh desk accessories, flags, all that good stuff and again all of this is available at shoptechbuds.com, which is the fourth link down Below, if you guys simply want to connect to our free discord group, that's going to be the first link in the description. I appreciate your time like always, let's make sure that we end the year on a green now, take it easy team.