So how amazing would it be to be able to invest in the companies that you use every single day? What's going on team, it's ricky and i want to talk about spotify, so how many of you guys watching this video use? Spotify yourself. I know that i love investing in companies that i use every single day, especially blue chip stocks, but you know what i love most. I love investing in them when they're, cheap and due to earnings season. Spotify reported earnings today and if you check out the stock today s-p-o-t you can see that it dropped a little bit over eight percent at one point today, if you joined us for our live trading session today with the learn plan profit group, you would have seen That i took a light position and in this video i want to talk about why i personally see value in spotify.

So you can. Let me know in the comment section what you think about spotify stock and i'm sure one of the things that you guys have noticed recently is that a lot of tech giants spotify being one of them, but another one. That's very popular is apple. They report better than expected earnings, yet they still drop after they report these earnings, and why is that? If you guys want to learn a little bit more about that i'd love to make a video about that at a later time.

So let me know in the comments section, but when it comes down to spotify itself, let's go ahead and break it down. One of the things that i find most attractive about spotify is that they did beat expectations when it comes down to earnings. Just their overall revenue was still reported at a loss and, at the end of the day, long-term investors don't like seeing a loss on their balance sheet now, looking a little bit more into it. One of the things that you guys could see is that, based off of the 180-day chart, you can see that the overall lows is 211.

and based off of current price points. Today we hit lows of about 213., i decided and again this is my decision. I decided to buy 50 shares of spotify, which, in comparison to dollar amount, that's a little bit over ten thousand dollars. I'm going to be explaining that in just a little bit, but i want to break down the potential and the opportunity that i see by investing in spotify right now with a 10 position and what can later happen.

So if we look a little bit more into it and we use this little trendline tool on the weibull platform, you can see that from current price points, if it were to make a recovery not at all time highs, but simply at the price point that it Was trading at early july? You can see that that offers a little bit over 26 potential for upside recovery now if it makes a full recovery to previous highs, that would be a little bit over 50 percent. Of course, that is a goal to work towards, not something that i would personally expect in the next couple of weeks right. One of the things that you need to take into consideration right now is that, although spotify is oversold and it is cheap, it can still sell off right. That's a really big misconception with a lot of beginner investors or a lot of beginner traders right now.

Spotify is proactively selling off and it's been selling off. You can see that it's had a very, very strong resistance level at 300, a share and it's been making lower highs and lower lows. Ever since i took that 10 000 position, which is equivalent to a 10 position size for myself, because i want to make sure that i can tolerate a pullback if it continues to sell off. So if you're, someone that sucks at risk management or doesn't know how to manage their position, size, maybe he's buying spotify right now, wouldn't be your best bet, because the direction is not in your favor as it's still selling off right.

I wanted to have some skin in the game. Getting 10 of my position invested right now at the current levels that i find to be cheap, but spotify is not a stock that i intend to sell anytime soon. It's not a stock that i would mind holding for a longer period of time, so once it begins to indicate signs of an uptrend, i would love to add more to my position from 10 all the way up to 100, and what does that look like that? Would be a hundred thousand dollars and let's go ahead and head on over to the whiteboard, so i can break down my plan for you. So let's go ahead and break down my trade plan.

So one of the things that we currently talked about is the current support level for spotify. As of right now, on the 180 day, four hour time frame is right: around 2 10 to around 2 15.. One of the things that i can't stress enough is again just because it's oversold, just because it's cheap doesn't mean that it has to reverse anytime soon. It can continue to sell off so make sure you take that into consideration before going all in and buying the dip.

This is why i only bought 50 shares, which is equivalent to 10 of what i plan to invest. I got in at an average purchase price and you should be able to see my order right here at around 216. A share that is my current 50 share position, size which based off of how it's currently trading at at above 220, a share. I did okay, but now the question is: am i only going to invest in spotify with 50 shares, or when does it actually make sense to buy more? Let's go ahead and talk about that.

The current resistance level based off of that 180-day chart would be a little bit above that sma line, which would be right around 275 from around 215 to 275. That is equivalent to a little bit over 25 percent and that's the goal. But a goal like we know is something to work towards, not something that we actually have to hit every single time, and, let's be honest, especially with these market conditions. It wouldn't be much of a surprise if we don't hit that set goal or goal target.

But how is it that we can approach this in a conservative way? One of the things that i personally like to do is i like to average up into my position when the direction is in my favor and, most importantly, when do i have confirmation on spotify? Well, as of right now, if you guys look and do your own analysis on the four hour time frame, spotify with the ema line, is right around 230 a share and the really cool thing about this is when you ask the question: where do i get confirmation, If spotify begins to trade above 230 a share and if it begins to make higher highs and higher lows above that ema line, let's be honest: if something's making money, i'm going to want to put more money and invest more money into that stock, and it's that Simple once it begins to trade above 230 a share, i will be more confident in putting more money into something as it's actually showing signs of growth, which is where i can begin to go from 10 invested to 25 to 50 up into the point of where I'm 100 invested at a hundred thousand dollars. So although i bought the dip at 215 to 216 a share, it doesn't matter so much, but what matters most is once that direction is in our favor. That's when i really begin to step on the gas pedal really begin to invest into that blue chip stock and, most importantly, where do i plan to lock in profits? Well, we talked about 275 being the goal, but at the end of the day, the sma line has right now on the four-hour time frame is right around 250 a share. I can't stress this enough if you guys are part of the learn plan.

Profit group you've heard me say it all the time, never be afraid to lock in profits. We've even gotten to the point of saying where you know the fear fomo right, but at the end of the day, no one goes broke by locking in profits and although our goal from 216 to 275 is 25, if i'm up 10 15 and i'm seeing a Resistance level at 250 a share, i'm personally not going to be someone that hesitates to lock in profits to anticipate that potential pullback. I don't want to ride this stock all the way back down, especially if i've already gone through that process of that full reversal. So again, this is the goal.

This is something to work towards. This is where i plan to average up. I do intend to lock in profits right around 250 to 275 a share, but at any indication of a resistance level. That's where i'm personally going to lock in profits, regardless of what my initial goal is.

So let me know in the comment section what you guys think about my trade plan when it comes down to spotify. Is it something that meets your criteria and if it doesn't, what is it that you're currently looking to invest in when it comes down to a blue chip stock? I hope that you guys enjoyed this video i'll catch you tomorrow for our live training session, and if you want to learn a little bit more about our learn, plan profit group and how you can watch me. Trade live every single day. Make sure you click that.

Second, link down below and i'll see you tomorrow at market open. Until then, i hope i earned your thumbs up and, like always, let's make sure that we end the year on a green now. Take it easy team.