Stocks Trading Journal for ZM, Zoom

Stocks Trading Journal for ZM, Zoom

Stocks Trading Journal for ZM, Zoom

Back on the 13th April 2020, during the COVID19 Pandemic lockdown. I was still actively swing trading stocks and looking for opportunities for my Blend Investment portfolio that I share with my Inner Circle.  The “Pandemic Pullback” had found tentative support and there were certainly many stocks that had great value and potential.

At that point Zoom (ZM) had pulled back on an Elliott Wave profit taking pull back, a 4th Wave.  And as usual I was looking for a potential 5th wave move that met all my criteria.  Not only did ZM meeting criteria, but the risk was low with a stop at 107.09 just below the wave 4 pivot and an entry at 131.61.  Risking 1% on my trading account balance as usual, at that time, could have resulted in a 2% profit on my account balance.  So, to put that into perspective, risking $40,000 would have netted $80,000 and a standard type of swing trading opportunity for me.

The Buzz Took Over Technical Analysis

However, the buzz around Zoom being the go-to provider during lockdown for companies and individuals around the world, made me step back and say to my inner circle:

“This is not going to be a typical swing trade, ZM needs to go into our Blend Investment Portfolio”

It only took 9 days to reach the initial 5th wave target, then pulled back and tested our entry. Then by the end of April it was making new highs and had pushed through that $180 level. Whilst other stocks were suffering in the markets, zoom was indeed zooming…

Towards the middle of June the bullish move up on ZM had reprinted as an Elliott Wave 3 and momentum was gathering.  At this point I took half my position off at 226.49. This price was at 4% profit on my account balance, so halving the position would bank my original 2% profit target on account balance, whilst leaving the rest to run.

As of writing this article on 23 September 2020 the position, as per the chart below, is at 15% profit on account balance. So, with my half position, worth 7.5% profit on my account balance.  Not only that, my Inner circle and I placed a swing trade on ZM after the profit taking pullback.  Below the chart is a video outline of the trade then further screen shots as I managed it.

Click on chart image to enlarge, then click back arrow on browser to return to article

A Couple of Points from the Chart!

You will notice a Grey hashed EMA line and Purple EMA line on the chart. These are 55 and 89 EMA’s respectively and when using the Daily time frame for Swing Trading, I have found them to be very useful. For me the Daily tie frame is thr truest time frame for Swing Trading and also Investing! Why? Because each day has a High, Low, Open and Close. Then combining that with the volume traded each day we can really understand the behaviour of any given stock.

The Green and Red EMA’s are 6/4 MA High and Lows, respectively. These are part of the Tradethefifth ElliottWave Indicator suite and are useful for when stocks trading those 5th wave entries or indeed adding to positions after profit taking pullbacks.

ZM Swing Trade entered 15th September 2020

After Earnings, at the beginning of September 2020, there was a predictable profit taking pullback. This behaviour is normal and forms part of my Trading The Behaviour Course. Using an Intra-Day 2Hour Chart, I setup an Elliott 5th Wave Long with a fantastic Risk to Reward.  The video below is a recap of the trade as of 22nd September, then further updates and screen shots below this as I managed the trade with my Inner Circle.

Zoom Swing Trading Update video as of 21st September

Trade Management continued

After the close on 22nd September and a further move to the upside, I have gone tight with my Trailing Stop. This locks in 2% profit on my account balance. As you can see from the 2 Hour chart below, the trailing stop is below the low of the last two candles. This is an aggressive stocks trading management strategy when Swing Trading. I use trade management strategy when wanting to lock in as much profit as possible, whist still leaving a little room. I will have to watch the price action pre-market though, so that the price is not gapping below my stop. If it is gapping down pre-market, I will have to take into account pre-market volume and price action, before making a decision on where to adjust my Stop.

I don’t want to give too much away as profit taking behaviour could set in after new all time highs yesterday and I’m not interested in riding a pull back like that on my swing trade. I treat my trading just like a business and this profit would be a nice addition to my Quarterly P&L closing at the end of September. Remembering that the half position in my Blend investment portfolio will be carried over into the next quarter and is looking very strong.

Click on chart image to enlarge, then click back arrow on browser to return to article

ZM Chart using Elliott Wave Indicator for TradingView

What Happened Next

The open on the 23rd September 202 was very close to my trailing stop for the swing trade and it took the 2% profit on my trading account balance, as below. But what happened next was amazing….

Click on chart image to enlarge, then click back arrow on browser to return to article

Zoom Stocks Swing Trade taking out trailing stop for profit

Then Zoom turned around and shot into the tradethefifth automated 5th wave target zone!! SOme would say got out too early, but remember I am in ZM longer term on my Blend Portfolio and these new Highs have made that position at 8% profit on my account balance with my half position that remains. So to recap, a total of 4% profit taken on my trading account balance as of now with ZM and a further 8% profit as we as we stand. Just one of my trades and investments with my Inner Circle.. Charts below show the 5th wave target zone being hit on the 2Hr swing trading chart and the updated chart for my Investment in ZM.

Zoom hitting the automated 5th Wave target zone on the 2 Hr Chart
ZM Inner Circle Zoom Blend Investment updated chart as of 23 Sept 2020

Leave a Reply

Your email address will not be published.