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Interactive Brokers Options Trading - Closing Options Trades for $1,800 In Profits - YouTube
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I want to take some profits.
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So I thought it would be fun
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to trade my account live
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so that you can watch how I'm
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closing a few trades where
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right now I'm up nicely.
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I think it's over $1,000, so
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I decided to take some profits.
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I want to show you exactly
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why I'm taking profits.
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I wanted to explain to you exactly
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how I'm doing it.
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And I want to explain to you what a
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trading platform looks like
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and how you actually place trades.
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Does that sound good?
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Then let's get started.
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In a moment, I'm going to show you
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my trading account, the smaller
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account that I've set up to trade,
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mainly options here in
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this crisis as we had the stock
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market crash.
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And the account is up nicely, and I
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want to show you how to close a
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few trades.
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So here you see my account, and
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we'll talk about all these different
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elements that you see.
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You see for today, I'm up $1,500,
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so that's pretty good.
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Now, when you're trading,
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it doesn't matter what trading
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platform you use, whether you're
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using Interactive Brokers,
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which is the trading platform that I
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have here, or TD Ameritrade,
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or Fidelity, or E-Trade
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or, God forbid, Robinhood
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but
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that's a different story.
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Anyhow, all of these platforms
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will have the same
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four elements that I'm going to show
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you here on my platform.
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First of all, right here you see
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in the upper left, there is a way
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where I can enter the
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orders. And that's what we're going
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to do in just a moment.
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Your platform will have the same.
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It doesn't matter what platform
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you're using, if you're using a
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broker or platform you will have
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a place to enter orders.
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Now, here you see some basic
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information about the stock
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or the option that you want to
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trade.
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So here in Interactive Brokers,
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there's a few bars or candles.
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I'm not using it a whole lot as you
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know, I like to use TradingView
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and PowerX Optimizer,
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my own software here in order
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to find the trades and place the
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trades. So down here
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in the lower right, you see the open
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orders and you see right now
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there is no open orders.
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But in the upper right,
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this is where you see actually
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the positions that I'm in right now.
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You see, I have a BA put
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that I sold, a Tesla
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put that I sold, a Disney put,
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an MGM put and a Delta
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Airlines put. So basically
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my bet was with these
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puts that I believe that all
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of these companies stay
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above a certain price.
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And you see the strike price is
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right here.
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I was betting, or I am betting that
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Boeing will stay above $100
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by April 9th.
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So out of the five trades that
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I have I want to close three of
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them today. And here's why.
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So you see Boeing, for example,
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I sold at a $1.34.
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And right now it is trading at
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$0.34.
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So that's okay there's still some
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value in this option.
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But take a look at this, Disney
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here, I sold it for
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$0.89 and a half cents, $0.90
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almost.
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And right now, there's only
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$0.06 left in there.
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Now, here, I
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did sell 5 of these
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puts and
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out of these 5 puts and they're now
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worth $0.06
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so if I hold them until
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Friday or Thursday, because Friday
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is Good Friday the exchanges are
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closed. But if I would hold it, I
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would make an additional $30.
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So as you can see right now, already
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made $420.
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And if I wait a few more
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days, I would make another $30.
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But for me, that's not worth it,
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because if something happens
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over the next few days and Disney
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crashes and burns,
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I might get in trouble.
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So here I like to say don't be
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a d*ck for a tick, all right?
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I mean, if you can take $420
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off the table and therefore reduce
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your risk in this trade
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to zero, to nothing,
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why would you go for
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the remaining $0.06,
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the remaining $30
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here? To me, that doesn't
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make sense. So this is why I want to
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show you how to close this trade.
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So I sold 5
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of these put options.
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So since I sold it a few days
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ago, I now need to buy
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it back.
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So I'm clicking on this and this
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will automatically bring me up here
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in the upper left where there's my
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trading window.
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See again, I sold 5,
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so what do I need to do now?
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I need to buy it back.
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So I select buy.
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The quantity I want to use
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my whole position size I want to buy
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5 back.
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Now I want to use a limit order.
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And here's why I want to show it to
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you. So right now, there
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are people who are saying, "I want
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to buy them for
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$0.05." And there's some people
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saying, "Well, I'm going to
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sell them to you for $0.06."
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Let me just see if I can
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hit up one of these guys
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who say, "All right, I want to sell
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at $0.06," and say,
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"I'm going to take you up on your
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offer." Because again, right now I'm
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buying.
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So that's why I'm using a limit
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order of $0.06.
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I'm going to hit submit.
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As soon as I do it will appear
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in the lower right, right here.
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And then hopefully get filled
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right away.
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All right.
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So let's do this.
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We are closing.
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We are buying.
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Double-checking 5
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of these Disney puts.
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I'm going to hit submit.
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OK. It said "order partially
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filled." You probably can't hear it.
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But you see right now out of my 5,
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1 person already said, "All right,
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let's do this deal." And look at
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this.
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Now, the ask jumped
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up to $0.07.
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Tricky. Tricky.
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So it seems that there was one
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person who said, "Yeah, I
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am willing to buy it from you
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for $0.06." And right now,
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let's see, we'll let it sit here,
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but you see the quantity
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on the lower right it says 1 out
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of 1 filled, 4
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are still outstanding.
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So we'll leave it here for a little
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bit. And otherwise, I'll raise my
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limit to $0.07
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because again, what is the
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difference?
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Options are trading in 100 packs.
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So a cent different means
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there's a dollar difference.
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Again, don't be a d*ck for tick,
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right?
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We don't have to really fight
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for the last dollar here.
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Again, I'm talking about
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$420 and you see up here
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realized.
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So this is what already happened
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today, I already got $82.
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So let's see if we can sell the
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other ones as well.
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By the way, as you can see right
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now, this account is at around
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$33,000.
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This is a small account that I
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started out two weeks ago
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at $25,000.
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So right now this account is up
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around $8,000
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in two weeks.
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Not bad at all.
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Are you enjoying this thus far?
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Because if you do, do me a favor and
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give me a thumbs up right now,
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because this way I know the videos
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that you prefer watching and I'll do
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more of these.
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And this is why it really helps me
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when you let me know, "Yes, we like
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this." So click on like right now.
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And again, if this your first time
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here, and you think "That's pretty
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cool." Click on subscribe
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to subscribe to this channel because
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this way you get a notification
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whenever I go live, which is every
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weekday at 3:30 Central
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Time. All right, let's actually
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close a few other trades.
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So I want to talk about the
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Delta Airline trade.
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So with Delta Airline,
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I'm betting that it stays above
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$15 by April
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17th.
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But let's take a look at this.
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Let's take a look at the chart here
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of Delta Airlines.
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And you see thus far it has
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been doing good.
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I did this a few days ago.
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We're still trading at $22.
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So we play I have plenty of room to
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go down to $15.
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However, Delta Airlines,
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look at this, is reporting earnings
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on April 8th in two
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days from now.
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I don't want to get caught in the
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earnings. Who knows what they're
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saying?
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They might plummet down.
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And on this trade thus far, I'm up
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$314.
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So might as well take some
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profits here.
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Because today is an up day, again,
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markets are up almost 6%.
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So on up days, these
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are great days to take profits.
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On down days when the market
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is going down, that's
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when we want to look for new trading
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opportunities when selling puts.
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So I'm going to Delta and the same
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here, here is my position is minus
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10. So I want to buy back
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10 of these Delta positions.
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And you see here,
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again, this is where I want to buy
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10. And somebody is willing to sell
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for $0.43.
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And there's a bunch of other guys
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willing to buy at $0.42.
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So I'm going to hit the ask here
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and placing the order, let's
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see if here we get filled with our
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whole 10 lot
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or if you have the same here, like
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with Disney that we get split
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fills.
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So let's click on submit.
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Yes, overwrite and transmit.
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And the same.
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It says order is partially
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filled.
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They filled all of it, all 10 are
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being filled.
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So you see right now my realized
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profits jumped up from $300
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and what was it?
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$83 before to
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$383.
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OK.
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So we are still sitting there with
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Disney.
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We might have to raise
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our bid a little
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bit here, because right now we
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are bidding $0.06
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and you see somebody is
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willing to sell to us
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at $0.07.
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Still have some time right now it's
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14 minutes until the markets close.
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So we'll let it sit here for just
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a moment. Now, MGM, and let
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me explain to you why I want to
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close out my MGM trade.
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First of all, this is a trade where
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I bet that MGM will stay above
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$3 by
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June 19th.
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Let's take a look at this.
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So MGM, which is MGM Resorts,
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will stay above $3.
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And yes, of course, look at this,
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they're trading at $12.
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Is it likely that they will stay
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above $3?
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Yes, it is.
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But I'm more
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of a short term trader.
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I do not want to remain
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in this trade for another two
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and a half months
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because if I do,
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I can make an additional
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$21 per contract.
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Okay.
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I have 20 contracts here.
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So this means an additional
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$400.
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I already made, I'm already up
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right now close to
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$1,100.
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So, and this was in a matter
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of a few weeks.
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I can't remember exactly when I
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entered, maybe two weeks ago?
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So if I can make in two weeks
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$1,100, do I really
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want to wait another 10
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weeks to make the remaining
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$400?
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Doesn't make sense to me.
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Let's get out of the trade, free up
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some of the buying power and then
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we can look for new opportunities
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when the market are going down,
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when markets are going down.
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So same here.
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How do we do this?
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We click on this one.
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And here we had a position of
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negative 20.
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So we want to buy
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20, and oh, that's
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good we can work the order here.
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So take a look at this.
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We have people who are willing to
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buy at $0.19 and
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we have others who are willing to
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sell for $0.22.
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Here's what we're gonna do.
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We jump ahead.
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Do you want to mess with these guys
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a little bit? We're gonna mess with
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them.
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So you see, I'm jumping out of the
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buyers because there's a bunch of
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buyers right now saying, "We are
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willing to pay a maximum of
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$0.19." I'm going to say right
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now, "I'm willing to pay
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$0.20."
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Okay, so here's what will happen.
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As soon as I submit the order
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this bid will jump from $0.19
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to $0.20.
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My $0.20.
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Want to do this?
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All right. So let's click submit.
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Yes, overwrite and transmit.
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Look at this. They're changed to
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$0.20. I'm the buyer now.
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I'm the one who is now bidding
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$0.20.
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There's a bunch of other guys who
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want to beat $.19,
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and I'm standing out of the crowd.
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So this is the cool thing about
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trading here.
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So you can see trading it's
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a level playing field.
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So I just submitted the order
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and you see it right now, if you
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open your trading platform right
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now, you will see me there sitting
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with my $0.20.
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See, nobody is taking me up on this.
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Nobody.
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I'm gonna raise this to $0.21.
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So I would get filled immediately if
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I would say, "Oh, yeah, I'm buying
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for $0.22, because on the
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one hand, you have buyers who are
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willing to pay a maximum
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price and then there's sellers
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who are willing to sell for a
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minimum price, right?
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And when we meet in the middle, when
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buyers and sellers meet,
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that's when a trade takes place.
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So that's what you're seeing right
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now live, I mean, this is
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actually how trading works.
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I want to buy something and somebody
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else wants to sell.
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And now we will see if I can jump
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in there. Woo, look at this, you
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see, the sellers were at $0.22.
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They are coming down.
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So I moved up from $0.19
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to $0.20.
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And the sellers are saying, "Hey,
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we don't want to have $0.22 anymore.
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How about $0.21?"
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And you know what?
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I'm going to take them up on the
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offer.
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I'm going to take them up, I'm
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changing it here to $0.21.
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And I'm submitting it and I say,
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"You know what?
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Since you are moving in my
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direction, you're a good guy.
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I'm going to buy from you." Let's
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click on update.
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Boom. We are partially filled and
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we are fully filled.
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So now thus far we realized
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$1,400 of the profits.
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That's pretty good. So $1,400
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right now deposited in my account.
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Again, you see the account is now
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at $33,000.
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Now we still have our, our Disney.
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Oh, there you go.
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Yes, we got filled
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on Disney.
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That's awesome.
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Okay.
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It seems that these people
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got tired. You see, we were patient.
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We were bidding $0.06 and they were
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moving up to $0.07.
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But now they came down and said,
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"All right, you can buy
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it from us for $0.06." So
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that's great.
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So you see right now the realized
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profit up here jumped up
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to $1,800.
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So $1,800
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realized today?
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Not bad at all.
[879]
Not bad at all.
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