What Am I Doing Day-Trading YELP Today?
As I figure, I probably have about a 60% chance that this trade isn't going to work out. So why the heck would I even make this trade to begin with?
Because of the risk/reward that goes with making this trade.
You see, YELP has seen a surge of buying interest in recent days, going from the $17's all the way into the $26's.
Today you have a huge market rally and YELP is down over 3% on the day.
So my strategy is as follows:
Wait for an ideal risk scenario where either the stock has to bounce, or I get quickly stopped out.
Make the stop-loss where if the trade doesn't work out, the minimum I lose is 4:1 to what I could've have made.
Because YELP is so volatile and a high-beta stock - this is very possible.
Now let's put it into practice.
Here's the rest of the post (with chart setup)