🚨 Profit Panel is live at 9:30 a.m. ET🚨
Prediction markets have exploded to nearly $24B, and a major court battle is brewing that could reshape the fastest-growing corner of finance. I’m going live in the Profit Panel today alongside Chris, Kane, and Jamie to show you what’s at stake [tap to join us for Profit Panel]

 

Let me be honest with you — I don’t think most traders actually have a process for stops. They pick a level, hope it holds, and then react when it breaks.

That’s not how I want to be in the market.

So before I even think about entering a trade, I run through a simple 3-layer check. Nothing fancy. Just price, volume, and options flow — and I only act when they start pointing in the same direction.

I’ve used this exact approach in names like Wolfspeed (WOLF) and Cipher Mining (CIFR), and the idea holds up across different setups.

How I Actually Look at It

I always start with price. Where did buyers step in before? Where did sellers take control? I’m just mapping out the obvious structure — support, resistance, failed breakouts, that kind of thing.

Then I layer in volume. Not in a complicated way — just asking, “Did the market actually care here, or did it just pass through?” A volume shelf tells me price memory exists. A valley tells me it can move fast.

Then I look at options flow. But here’s the key — flow doesn’t lead for me. It just tells me where attention is building. I still need price and volume to confirm it makes sense.

When all three line up, that’s when I start paying attention.

Where the Stop Comes From

This part is actually the easiest.

If I take a trade, my stop is just the point where the whole idea stops working.

Not a random percentage. Not something I “feel comfortable with.”

It’s usually the level where price breaks through the volume shelf and invalidates the structure that supported the trade in the first place.

If that breaks, I’m out. No debate.

A Simple Example

Applied Digital (APLD) is a good example of how this comes together.

You had resistance around $40, support near $38, and right in that same zone you had a clear volume shelf sitting at $38.

Then options flow showed up — heavy in-the-money calls right around that same level.

So suddenly you’ve got price, volume, and positioning all leaning on the same line.

At that point, the trade isn’t complicated anymore. If $38 breaks, the idea is wrong. That’s your stop. Clean and simple.

The Bigger Point

Not every setup deserves action. That’s probably the part most people skip.

Some trades look good in isolation, but if the layers don’t line up, I’d rather just pass.

And honestly, a lot of damage in trading comes from forcing things when nothing is actually there.

One More Thing on Flow… People love chasing big option sweeps. I get it — it’s exciting.

But excitement isn’t an edge.

Flow only matters when it lines up with structure. Otherwise, it’s just noise that pulls you into bad decisions.

At the end of the day, this isn’t about finding perfect trades.

It’s about knowing exactly where you’re wrong before you even get in.

If you can do that consistently, everything else gets a lot easier.

To better trading,

Alex Reid
WealthPin

Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!

• Telegram: https://t.me/+MKMN30kDmVkwMDdh
• YouTube: http://www.youtube.com/@heywealthpin

Important Note: No one from the WealthPin team will ever contact you directly on Telegram.

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

P.S. Want Free Access To Oracle?

Insiders have moved their sneaky bets to the prediction markets…

Oracle helps track those bets and finds the stocks that could explode because of them!

Claim Your Spot Here

Disclaimer: The trades expressed are based on signals from Oracle in real time. While we have been using this tool with great success in our own trading including an 85.57% win rate, a 28% average return of winners and losers over a 4-day average hold time, and a profit factor of 5.94 on real money trades between 5/7/26 and 7/17/26, there’s bound to be winners and losers along the way. Since Oracle is a tool for traders and not a trading service, profits and performance will vary among users. Trade at your own risk. See our Terms on the homepage for more information.