What does Fastly mean, anyway?

Here's why we saw a weird day
Hey there!

Yesterday, my 1K Traders closed a nice little two-day win on Fastly (FSLY) for an 80+ percent win!

Congratulations if you were in that trade!

As I've talked about recently, this was a trade that set up perfectly off a pullback after earnings.

We told traders to be on the lookout late last week, then the trade triggered Monday, and we were out by Wednesday morning.

Trading is always a challenge, but these nice, clean wins can be really encouraging for us to keep going!

But there was a weird little aspect of this trade that I wanted to talk about in just a second…


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Back to Fastly…

If you were watching the trade closely, you may have noticed that FSLY gapped down early Tuesday morning. That caused panic for a lot of investors, understandably.

But why did that gap down happen?

Well, it's because Fastly, and a lot of the websites they support, went offline for a period of time Monday morning (very early Monday morning for those of us in the U.S.)

Apparently, a legitimate service change made by one of their partners led to the company going offline for an hour or so.

Fastly is a company that helps other companies load their website faster, so many of their customers, including CNN and Amazon, were also affected.

Understandably, this caused the market to gap down just a bit, but it quickly recovered by the time the sites were back online.

Still, it's an interesting lesson for us:

There are always risks in trading.

But when we're in a trade, we have to be careful to discern when those risks are real reversals and a signal to get out of a trade, or when they are temporary shocks that we can weather and withstand.

In this case, those of us who stayed in were able to claim a nice win. Sometimes, that faith in the trade pays off.

Hope you're having a fantastic day!

Chat soon,

Markay
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