So my next swing trade offers over 55% Roi Currently the price per share is less than $13 per share and it's an airline I Use all the time. What's going on guys? It's Ricky with Techbit Solutions and one of my favorite stocks to swing trade has been American Airlines I'm going to be breaking it all down for you again I Haven't uploaded a video like this so I Really hope that you enjoy and if you do all I literally ask you to do is drop a thumbs up and subscribe to the channel and turn on your post notifications. If you haven't done so already, let's go ahead and just jump right into my screen. This is A which is American Airlines I'm going to be breaking it down on the Weeble trading application.

It is a free and available application. uh, available in the US If you guys want to download it yourself right now, they do have a sign up bonus that you'll earn 12 free shares just for signing up and depositing $5 and that's the fifth Link in the description down below. But one of the first things I want to talk about is how important it is to not Chase What is going on I'm going to be breaking down my entire trade plan just so you can see I have no open position I've been waiting for American Airlines to sell off I shorted it originally as it was like at highs of like 17 or 18 cuz normally again based off of previous patterns. Just so you guys can see here, it tends to have a very common support range right around you know, 122 to $11 You can see the bounce is here.

It rallies and normally gets rejected right around $1,550 to around maybe $17 Right? Rejected pushes back up. Rejected support pushes back up. Reject Rejected Test support pushes back up. Sometimes it goes a little bit further.

This was 1750, pulls on back test support $12 $13 Then it rallies again. This time it hit nearly highs of $20 It hit $19 and then aggressively sold off due to again, um, lowering demand and and all the economic uncertainty that was going on, especially overseas. Obviously it discourages people to travel, especially with the idea of a potential recession coming soon. Makes sense right now.

We were extremely oversold and this is one thing that I share with my learn plan. Profit: Team All the time, right? People always love to ask rookie. when's the best time to buy a stock? Is it at the lowest price point? You can try to buy a stock at the lowest price point. but I'm just speaking from my experience I get burned every single time that I try to find the bottom of a stock.

For me, it makes more sense that instead of trying to predict the future which no one can, why not just wait for confirmation and wait to react right? So it makes sense to not just try to buy something at a good price, but it makes sense to try to buy something when it's making other people money, right? Why try to buy something when it's continuously selling off? Why are you trying to overpay? Well, what do you mean overpay? Well, do you not understand that if it continues to sell off, you will buy it at a cheaper price point? So why are you in a rush? Why are you so impatient that you're trying to overpay? Because at the end of it, it only makes sense to enter a position when it's indicating signs of an uptrend, right? So when something sells off, it takes time for it to sell off. It consolidates. It takes time for it to consolidate, and then we get confirmation right. Then it begins to actually indicate signs of progress higher highs, higher lows, and indicate signs of of of an uptrend.

And for that at that point, at least you're you know can ask yourself that genuine question: Are you missing out by not being invested in this position at that point? Yes, at this point, No, right? We talk about this in the Lpp LW and library. and again, if you guys want to check it out: I Do trade live with my Lpdm every morning. That's the second link in the description down below, but we call it the three stages of a reversal. There's the rejection stage when it's actively selling off trading below the EMA line.

Then there's a consolidation phase when it begins to establish its support level, right? Consolidation. Consolidation Consolidation Consolidation Consolidation. We still have not broken above the EMA line, so it's still in the consolidation phase and we're waiting for that confirmation. right? Looking at the 4-Hour time frame, it's very easy to see an active selloff.

Now it's beginning to try to test this reversal. This is great, but how many times have we entered a position and then it fakes as out right? it thinks that it's going to go up. We get excited, we jump in and then it just gets rejected and goes back down to previous support. So to help aid that.

I Like to wait for more confirmation above the moving average to wait for actual signs of progress of higher highs and higher lows and I like to size into it. So I wanted to go to the notes section and actually break this down with you guys. So I put my support So I Go uh. I Call this the ticker call out format which is just the format to kind of structure out the trade.

So S and R mean support and resistance. Support is where it tends to bounce and resistance is where it tends to get rejected. I put support at $11 I mean hit lows of 1086 but I just put at an average of $11 Um, and then I put my uh overall entry at well. this is what I wanted to talk about.

My overall entry makes the most sense at around $12.50 right? We could see that the moving average right now is right around $128 I'm not in a rush to get in Well Ricky Why are you not in a rush to get into American Airlines Do don't you want to make money? Yes, But I also want to look out for myself. Making money is part of trading but also keeping it is more important, right? And to avoid these fake outs to me is more and more important. So when we look at this, if I wait for 1250, that's going to be right around this general area. I give it some time for it to try to break above the moving average and maybe get rejected a couple of times before actually me just jumping in right? So I give it some wiggle room to for it to you know, hold above the moving average and then if it does begin to break above $12.50 Well what's my plan there? Well, one thing that like to do is I don't like to jump in all at once I like to dollar cost average in we call it position sizing right? So what's my intention? So I trade with over half a million dollars with the normal plays of Tqs and Sqs when it comes down to these riskier plays and I consider American Airlines more risky I like to size down so my position size is expected to be around 10% of My Overall, you know U account size.

So I'm going to go in Max with about $50,000 that's when I'm all in. Okay, so that's what I have allocated for American Airlines Now is that what my initial position is going to be? no And you get to decide how aggressive or how conservative you want to be. Your position size can start off light if you're unsure or your initial position can start off aggressive just depending on how aggressive or conservative you want to be. For me, my initial Position will probably be around 20K and then my secondary average up will probably be another 20.

or maybe I'll just go in for the full 30 right and then go in for a total of 50k. One thing that I also like to remind myself is I might have a goal of going in with 50k but if I end up not feeling as comfortable, if maybe the reversal is not forming exactly how I wanted it to, then there's nothing wrong with staying at 20K maybe 30k or 40K I don't always have to be all in right. And that's also something that I've learned throughout the years. is that the lighter I am with my position, the more comfortable I feel and more calculated I feel throughout the entire process.

Something to think about. Um, but now when it comes down to my potential exit plan, right? obviously if you were to ask a beginner, okay, where do you want to exit? well I want to sell right up here, right? Cuz if we look at this trend line tool from where we're at right now, uh, to all the way up here, this thing offers a 58 almost look at that 59% return. That's great. But guess what? I'm not a perfect Trader and I don't live in a perfect world, right? And most likely this thing isn't going to set up exactly like that.

Or at least I can't expect it to. So I'm going to aim for a more conservative resistance and that's going to be right around 16 bucks. Quite boring, right? It is what it is, right? It's a more common resistance range and I just want to be more realistic. So, 1550 could be something that I choose to aim for.

So right around, 1550 is going to be my designated potential. You know, exit at, 1550 again in the perfect Road I'm going to have $50,000 worth of American Airlines if once I get to, 1550 I see that it's still holding and still showing signs of progress I can reduce half of my position size so sell 25,000 and leave the remaining 25 if I want to let my winner to run right the the the method of calling of allowing your Runners uh, your winners to run. Um, it's a concept that you can test, but again, the idea of locking and profits should never be in my opinion, overthought, right? Especially when you're just getting started, but just want to give you guys, um, kind of more context behind what can happen, right? average up. So looking at this on the 4our time frame, my second average up would probably I would like to keep it in the low 13.

So I'm just going to say my average up is going to be right around 13 bucks from 1250 to 13 bucks I give myself 50 cents to kind of work with and then again, the goal is to get as close to ,550 as possible. so in a perfect world Again, from that would put me at a dollar cost average of nearly 13 bucks and from overall lows to overall highs in a perfect roll, that would be around a 21% return. even if I capture half of that I'm okay with that, right? Uh, I know realistically, uh I'm not going to capture that full 21% move even if I capture half or maybe 15% right? 10 or 15% I'd be more than happy with that and um, it would be a successful swing TR right? I'm sizing down I'm enjoying the process I'm doing it in in, um, you know, managing my position size and then we have to take and talk about risk management, right? Your max loss is something that you have to be comfortable with. Ignore my dollar value or how it correlates to my percent.

It has nothing to do with you, right? It's what you're able to tolerate. Uh, and I put 3K just as a Max worst case scenario and that's most likely only if I'm fully invested in a trade and then it just begins to go south. I'll probably cut losses before, but I like to have that figure in mind because if I see that okay, I see my upside potential versus my downside risk and then I see how much I could potentially lose again if you draw it out for yourself before you actually take the trade and then that if that number scares you, then at least you are aware of it before you actually take it and you don't actually have to take the trade right. It's a way that you can kind of plan out your trade ahead of time and then kind of ask yourself, do I actually want to open this position Very simple, right.

overall potential Ro Y and a perfect roll again. from overall lows to current lows to overall highs would be about a 50. What was it? 59% return? Um, I put 55% but realistically my margin that I'm working towards is right around 20% So I just wanted to at least have that broken down in my trade plan right? So now now that we talked about that, what am I waiting for all it comes down to right? We took time to plan out the trade. I've I've experienced this enough where okay, you know I know exactly what I'm looking for I Want to see progress on the up side above the moving average so steady, higher highs and higher lows I don't want to see pull uh, pushes and then pull backs below the moving average I Want to see steady progress and if I see that consistency I would love to open the $220,000 position size in American Airlines and dollar cost average up into it once and if it continues to indicate signs of an uptrend.

So again, American Airlines is one of my favorite stocks to swing trade I like to size down because I know how risky it can be right? Uh, but just like anything, my job is not to avoid risk. My job is simply to manage it and in my opinion, one of the great things that you can do to manage your risk is by managing your position size. If I go in with half a million dollars on something like American Airlines and it moves 10 or 15% That's a lot of money to me, right? But if I size down my position 50k and then it moves 10 or 15% I can tolerate that a lot easier. Remember, keep trading simple.

Stop thinking that you always have to put all your eggs in one basket and understand. Understand that a big part of trading is the emotional aspect. So how can you control your emotions by controlling your position size again? Some of these concepts are what we talk about in the Lpp lesson library and it's all available with the second link in the description down below. You also will get to watch me trade live every single day.

And yes, that means you get to see my entries. You get to see my exits. So probably when I Open This American Airlines Position It's going to be my Lpp team that's going to be watching me trade live and again. I Do this every single morning with them anytime the market Market's open.

I'm live for about 30 minutes to an hour every single day. If you want to take 2 minutes and check it out, it's the second link in the description down below and we're running our biggest sale right now which is $175 off. So really do appreciate you guys time. If you guys have any questions about what we talked about today, shoot me a direct message via Discord and that's the first link in the description down below.

Or don't forget to follow me on Instagram and that's the third link in the description down below. Like always, let just make sure that we in the year on a green now. and don't forget to download the Weeble application fifth. Link in the description down below.

Take Care Team and.