Robin hood stock to pull back aftermarket hours, what's going on team, it's ricky with techwith solutions, and this is a common question we've been getting today, as you guys can see robin had reported earnings yesterday, which acted as a negative catalyst. I like talking about stocks that report earnings, so let's dig a little bit deeper and make sure that if you learned something new in this video, you drop a thumbs up and consider subscribing. So one of the first things that i want to talk about is, please make sure you do your own due diligence, but i want to talk about how robin had reported a positive earnings. They beat earnings per share by a hundred and seventy percent, which is absolutely amazing.

They had an amazing q2. They beat revenue by one percent. Again, they still beat expectations. So why is it that robin hood stock is pulling on back it's down over eight percent right? Well, a lot of you guys know that when it comes down to earnings, it's not just about what they report, but it comes down to guidance and future guidance.

You know what's to come in the near future. A lot of you guys know that if you look into the q2, they had an amazing q2 when it comes down to overall revenue and demand levels being at all-time highs. As again. Cryptocurrency and trading was peaking during those times, but as of right now, as cryptocurrency and trading has slowed down, you can see why again robinhood having a big focus on making its revenue through order flow.

If trading slows down, then that acts as a direct negative catalyst for potential future revenue, so you can see why that can act as a negative catalyst moving forward and that's exactly what it is that they shared within their q2 that looking into future earnings, they have Seen a slowdown when it comes down to trading, and this is definitely something that you need to take into consideration. One of the other things that i wanted to quickly talk about. Is you know the question that everyone is asking? Should you buy robin hood right now? I want to talk about my trade plan and why it is that i'm going to be buying robin hood, but i first want to talk about something that not a lot of people talk about when they share their positive outlook on a stock. I want to talk about the risk involved first off if you're, someone that simply sucks at risk management or someone that simply sucks at position size robin hood stock is not a stock for you.

Robinhood stock is a stock that sells off over time. It's been making lower highs and lower lows, it's a very volatile stock when it gets going and it can aggressively pump and dump within a very short period of time, which is why i'm trying to emphasize that if you're, an absolute beginner with no experience, you need To learn how to walk before you run and robinhood is probably not going to be something that is up your alley. I'm just trying to be as open and as realistic as i can now. It doesn't mean that it's a horrible stock to trade or that it doesn't have any potential based off previous patterns and how it performs when it's uh sells off, it tends to have nice little rallies, which is exactly why i'm paying attention to it.

A lot of you guys know that i love buying the dip, and i'm gon na be sharing my trade plan with you. So make sure you share your thoughts in the comment sections down below so now that we talked about the risk involved when it comes down to trading robinhood. I am a lot more comfortable, formulating a plan on how it is that i intend to trade it. So you guys can, let me know in the comment section what you think about my plan and again friendly reminder, if you're horrible at managing risk, please do your future self a favor and stay away from this stock.

I want to talk about where i see there to be a support and resistance level. As of right. Now i see an established support level right around 45. A share.

This is not exactly at 45, but a general 45 dollar support range. It has hit lows of 44., so make sure you take that into consideration. I see a previous resistance level at fifty dollars a share and ignore my horrible fifty dollars, but one of the things that i shared in yesterday's video is especially if you're part of the learn plan profit group. I expressed the importance of locking in profits at overbought levels in preparation for a pullback.

Now did i know that robin hood stock was gon na pull back 10 today after being up 10 yesterday, of course not right, but i know - and i always try to do my future self - a favor and lock in profits or reduce position size. Where i see there to be a potential resistance level, and i'm very thankful that i did because now i wanted to share with you - it allowed me the opportunity to have enough money available to buy a thousand shares of robin hood at an average purchase price of Forty six dollars and three cents, so i already got filled with my 1 000 shares. I see there to be a support level here at 45 dollars and a resistance level at fifty dollars. So you can see that my upside, in my opinion, outweighs my downside, but when it comes down to my entry point at 46.03, i'm just gon na put 46 flat.

Where is it that i intend to exit? Do i plan to sell robinhood at previous highs of above seventy dollars a share or sixty dollars a share? Definitely not right. One of the things that i wan na share with you is, i do not hesitate to lock in profits and if robinhood returns to fifty dollars a share - and i see there to be any indication of a resistance - i'm not going to hesitate to lock in profits And i'd be more than happy to do so, even if robin hood continues to rally, i think that's one of the worst feelings and i'm sure a lot of you guys can agree is where you're in the green you, you have made a decent amount of profits, But you are, in fear of it, continuing to indicate signs of an uptrend that you refuse to lock in profits, and it goes from being a green trade. To now a red trade, and now all you want it to do - is to simply recover, because you have no more money to buy the dip. That's what i want to avoid.

I like to keep things simple, and this is why it's so important to set up a game plan and to stay disciplined to follow through with it, and i need to talk about risk management right. Where is it that i plan to cut losses if it breaks below and that's going to be at 44, we have seen it get really close to that 44 support range and the reason i'm sharing this with you is because if things were to go south as They easily can right robin hood on the four hour time frame is making lower lows and lower highs ever since its peak, so we can't be surprised if it begins to sell off. Do i want to bag hold 1000 shares of robinhood? Definitely not. I know that i don't so what is it that i can do? I can set up a game plan on where it is that i intend to manage my risk because, although it sucks to lose two dollars per share for 1 000 shares, you know what would suck a lot more back.

Holding a thousand shares all the way back down to 30, a share that would suck a lot more. So it's the idea of yes, it's not the best case, but it's the best case scenario based off of that potential outcome, and this is why it's so important to manage your risk. It's to understand the big picture that your upside always outweighs your downside, but if things are to go south or were to go south that you have a plan in place to be able to mitigate and manage that risk. So when it comes down to my ratios of my upside versus my downside, based off of my entry point to my exit and my entry point to my stop loss, there is a greater upside than there is for my potential downside, which is a two to one Ratio, one of the things that i also do want to share with you is this is a goal right.

So if all of a sudden, robin hood were to gap up right with my entry point at 46 dollars and it gaps up to 55 dollars, i'm gon na decide to lock in profits right, but vice versa. Let's not just think about the best case scenario and let's take into consideration the worst case scenario. What if robin hood were to open at forty dollars a share, but my stop loss was at 44 right, but stop losses don't get filled after market hours. You can't manage your risk when you hold a stock overnight.

The reason i'm sharing this with you is: i want you to always take into consideration what can happen and if there's unfortunate news and robin hood gaps right back down and loses 10 percent loses 20 percent. Make sure that the position size that you choose to take is something in which you can tolerate and if right away, you're like, if you do the math right, i don't know how many shares you plan to buy of robin hood. If any, but let's say you intend to buy 100 shares because you want to do the same thing right, but if you don't take into consideration that it from 46 dollars if it opens up at forty dollars a share, you know that's over a ten percent loss. You're, like i don't wan na lose ten percent, then guess what what's my simple solution for you do not buy before confirmation.

It's that simple! Just because i'm doing it does not mean that you should, if you can't tolerate that risk, don't put yourself in an uncomfortable situation. I am never here to share my plan in effort to convince you, i'm always here, to talk about the risk and why it is so risky. But it's because i see the upside to outweigh the downside that i'm okay with tolerating that risk and at the end of the day it is simply our job to take advantage of stocks and opportunity in which we see value in and with this plan. It makes sense to me if it doesn't make sense to you, then guess what you can wait for confirmation.

You cannot trade it at all or you can focus on stocks that don't move as aggressive. That's the beautiful thing about the stock market is that you are the final decision maker on where it is that you choose to put your money, so i hope that this video shines some light on. Why it's so important to set up a game plan when it comes down to any trade that you choose to take advantage of both risky or conservative, and why it's so important? If you feel like you, learned something new, please consider dropping a thumbs up and subscribing to the youtube channel. I'd love for you to join us to our live trading session, and if you want to join us at market open tomorrow, make sure you click.

The second link down below and i'll, see you at market open until then, like always, let's make sure that we end the year on a green note, take it easy team.