So what is your favorite stock to swing trade in the stock market? What's going on guys, It's Ricky here with talk about Solutions I Thought that I would share this with you guys on one of my favorite stocks to swing trade that is under 15 a share. One of the things that I do want to remind you is that just because I see value and something does not mean that you need to, We all see value in different ways and I want to remind you that again I'm just sharing my thoughts. feel free to share your thoughts down in the comment section. Let me go ahead and start sharing my screen so you guys can see exactly what it is that I'm looking at.

This is American Airlines Now if you're part of my LBP team and you've been there for a while, you know that one of the stocks that I like to play around with is American Airlines I Like to Swing tradit and I don't trade it the same way that I trade Sqs and Tqs. And the reason I say that is when it comes down to trading Sqs and Tqs I trade with over six figures. Right when it comes down to American Airlines I never tried to take more than a fifty thousand dollar position, this is just to reflect how much more risky I see something like American Airlines especially as a swing trade when I expect to hold it for a longer period of time. So again, I'm just sharing that with you because I think position size has a lot to do with it on how someone manages or mitigates risk.

So the first thing that I want to talk about is on the technical side based off of recent patterns which of course it's not 100 perfect every single time as nothing is. but patterns tend to repeat themselves, but they don't always have to I tend to try to identify a common support range and a common resistance range. As you can see, a common support range is right around 12 or 12.50 Obviously 11.65 it can hit lower lows in that sense, but I like to call identify more of a common support range the same thing with a resistance range as you guys can see resistance range right around 1550. so again, not the highest.

definitely not the lowest, but a common level where it tends to hit often. Again, if you wanted to be a little bit more conservative I Guess you could say 15 is a more common support range. but even if it were or to be fifteen dollars right from a common support range of around 12.50 to a common resistance range of around 15 that is about a twenty percent ROI in a perfect world? Well, I don't know about you but I'm not a perfect Trader right? So although it might offer 20, I might try to just make eight or ten percent I like I need to leave margin for error and being a little bit more realistic. The second thing that I try to focus on is I try to formulate my trade plan well, obviously based off of recent patterns.

If I identify this to be a support and this to be a resistance, right? twelve dollars and fifty cents a support range where I would normally want to buy if it bounces here and normally want to sell right around fifteen dollars. Well, why do I have an open position? Well, it's actually during my live trading session today that I actually opened a short position. As you can see, my share quantity is negative 335 shares and remember what I said I don't like to trade this with more than fifty thousand dollars, 335 shares short at around an average purchase price of 14.92 is right under 5000 dollars. That's about a 10 position size.

I'm disclosing this to you because I want you to understand how I formulate my initial position and then I will only add more if American Airlines actually begins to sell off. So if I look at American American Airlines a little bit closer and we break below the EMA and it begins to show signs of an active sell-off Very similar to what we showed here, right? It was selling off, trading below the EMA trading below the moving average and formulating lower lows and lower highs. I actually had an active short position when American Airlines was doing this. As long as Direction begins to go negative right then I will add more to my short position from five thousand dollars.

As of right now, closer to fifty thousand. The more that direction is favorable, the more that I will add up to that fifty thousand dollar. Mark If things begin to go south or I guess North For me, right? because I have an active short. If things begin to indicate signs of an option, then the beautiful thing about this is that yes, I'm still going to take a loss, right? because I still have an open position In any open position is a position that's open to risk.

But it doesn't have to be an insane loss, right? Because my position size is smaller in the beginning, right? This is what we talk about in Lpp by taking my by making sure that my position size is lighter in the beginning of my trade. If things begin to go south, what often happens when you enter a trade and things begin to go south, but you're fully invested, emotions come out, at least for me, right? and then you're like man. I thought I bought the dip, but the Deep dip keeps dipping and I've been burned so many times when it comes down to that, This is why I have such a big focus on position size and I think a great way to manage a risk is to manage your position size. My job is not to be afraid of risk, My job is just to manage it and to manage that position size.

So I make sure that I put myself in a position if I choose to get in early as I did that I can tolerate, right? So, knowing that we're at a potential resistance but it could break above. That is the exact reason I only have a 10 position knowing that it could sell off and be in my favor, but knowing that it possibly can't which is why my position size is lighter just in case I do take a loss I need to manage my risk. Let's say it goes beyond 15.50 I can cut losses, but now I'm only cutting losses on a 10 position. not a fifty thousand dollar position.

Makes sense. So as Direction begins to be in my favor, I can add more to my short which means and I sell, add more, add more, add more. and then as we get closer to our previous support range which is right around you know, 1250, maybe 13 I can begin to buy to cover. Remember, if you've never shorted before, this is probably not something you want to get into if you're just getting started, but this is something that I do break down in Lpp if you want to learn more about it.

The great thing about this is that the swing trade is something that you can do Under The PDT rule, right? It's not a day trade, meaning that you're not limited to only being able to buy and sell three times within a five business day period. And that's the beautiful thing about this is that it has a decent enough margin. It's attractive because I don't have to do it with a super large position size. and it's fun because I'm not doing it, doing it with a super large position size where if things go south I get a sour taste in my mouth, right? It's enjoyable.

I Can I can embrace the challenge that I get from choosing to string trade something like American Airlines So again, in a perfect world I can make money from lows of 12 to highs of 15, but then I can open up a short from highs of 15 and come around 12.. So I'm very excited to follow up and we'll see. We'll see if we end up having to manage my risk. If this thing breaks about 1550, I'll cut losses on that short position and I'll take a small loss.

but in the grand scheme of things again, I Can just wait for that next opportunity to present itself. I'll size in into that proper position and then I'll lock in profits and I just thought I would share one of my favorite stocks to swing trade under 15 a share and of course that is American Airlines You guys let me know down in the comment section I haven't filmed a video like this. Let me know if you guys enjoyed this video. If you did, please make sure you drop a thumbs up.

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