Well, this week was another fantastic week in the Markets. It has been slow in the momentum land but there is still opportunity out there. The overall Markets have been down the entire week, which is significant since 3 out of 4 stocks follow the overall market. I only traded a few tickers this week, which is fine as $OOIL gave me the largest of them all. Yes! We finally got that crack that I have been waiting for since the past 2 weeks. Thanks to an Expose, $OOIL got crushed. I was well prepared. Today I will recap the trades, along with. the many lessons I have learned on $OOIL. Let's dive right in.
Firstly I will begin at $OOIL. As I have described in the past, we have a classic example of a paid promotion. In addition, there is numerous post about the paid promotion which I will leave you to read. Most importantly there are tons of online video lessons about Paid Promotions. Simply launch YouTube and search up Tim Sykes. Let me just say, you have a ton of information available at the touch of our hands. Due to your diligence and study up. I began my trading journey by absorbing every information on YouTube about trading. Remember that motivation is what fuels us, but great Habits is what keeps us going. Boring old Habits.
As I have described in the previous post $OOIL gave me tons of headaches. Simply I was shorting to large to early in the Pump. Never ever underestimate stock promoters. I was too eager too short and make the big money, and that is how you blow up. Remember if you trade thinking only about the P&L it will always lead to negative results. Focus on the trade. The money will always be the bi-product of your success. Those who excel understand that any amount you make in the Markets, it only takes on trade to give it all back. Your objective is to stay in the game. Just like in poker. If you lose your Chips you go home. It's the exact same in Trading. Secondly, $OOIL lead me to over trade which is another big downfall. Overtrading will lead to often frustration, resulting in emotional trades. It's OK to be emotional, but it's not OK to let emotions change your risk management. During the entire run-up, $OOIL lead me to over trade along with trades that were made with Emotions. In other words, I was revenge trading. Never feel the Market owes you something. The Market does not owe you a damn thing. Once you realize that you are responsible for every trade it easier it will be to let go of a loss. Take full responsibility for every trade. Moving forward this week we got that crack on $OOIL. Most importantly there was a $OOIL Expose by Fraud Research Institute, which has a dramatic effect on the price action. As the following day, $OOIL had a massive gap-down which I covered my initial Short. The Expose put the nail in the coffin. I already knew that $OOIL was a Paid Promotion. Other's were not aware of that unless you were apart of their mailing list. As I am writing this $OOIL is at .61 cents. Just absolutely amazing. I did lock in profits in the $1.30's. I left a lot on the table, but I am fine the pattern will be back again. This was by far the strongest paid promotion that we have seen in a long time. Next time I will be prepared as $OOIL handed allowed me to grow my knowledge account exponentially. I look forward to the next one. Make sure to check out the video recap.
t the end of the Week. $OOIL has gotten absolutely demolished. $OOIL is around the .25 cent range, absolute utter destruction. Congrats to those short who found shares to short. I have learned a lot about myself, which have benefited me overall. Overall this week has been relatively slow in low priced stocks. Where is there is no great play, I thank the Market. If there is one thing I hope you learn from me is that to have a Breath. Meaning to understand the times when to step away from the screens. Go explore the World, spend time with friends and family. The Market Will still be there when you get back. This week I only traded $OOIL, and the Market handed me my largest profit to date. The best trade is no trade. Your job as a trader is to recognize when your Playbook trade is present. Only trade Win/Win set-up, that have clear Edge. In addition, only bet what you are willing to lose. Again understand that Loosing in this game only accelerates your leaning IF you accept them. Don't let them carry onto the next trade be in the "Now Moment." A loss is never really a loss unless you gain something from that loss. Most Importantly leave your Ego at home. The Market does not give any sympathy for your ego. It's not about being right or wrong, it's not called Predicting. It's called trading. Tell yourself " I am Really good at Losing." Winning is easy. Loosing is what makes a great Trader. I thank all my Mentors and the Man above for showing me this side of the table. What I am trying to say is that Risk Management is your Job. Trading is the Broker's Job. Sounds Confusing. Let me explain. I stumbled on a book by Alexander Elder " Trading for a Living" which has been a game-changer. It felt like one of those moments when it all clicks. Early on in the book Elder emphasis that Risk Management should the job of every trader, while Trading is the job of the Brokerage. I was amazed by this Statement. At first confused, which Likely you are as well.
As Traders, in essence, we are trying to predict the future. Look to the left to see the right. Most of us ignore the idea of Risk Management. When I say most it's vastly the 95% of traders who lose. When is the best time to plan for an exit of a Trade? Before you get in. and Right when you Enter. The Market is always in constant motion. What I am trying to say is that Loosing is OK. I don't understand why the majority of Traders are afraid of losing. I only have two reasons why this is the case. Firstly they are too large in comparison to their account size and risk threshold. Secondly, they have admitted the fact that being wrong is fine. The trader who blames the Markets is someone who will continue loose. In order to break that habit, you must understand that Taking Full Responsibility for your actions is the key. Admit when you're wrong. There is absolutely nothing be afraid of when you predefine dollar risk prior to entering the Trade. Size is all based on Risk. For Example, if I am willing to lose $100, and my mental stop is 20 cents. That would give me 500 Shares. Of course, the next step is the toughest. Admitting your wrong. Setting Risk is one part, but sticking to your risk is another task. Again It's not about being right or wrong when your risk is Hit get out. There nothing better than a fresh start. It's much easier to get in that it is to get out. The Market will still be there. Sometime you may be able to exit with a small profit, rather than a loss. Aim small miss small. I will go into much more detail in the Sunday Video Recap. Make sure to watch them below.
Update: This upcoming week is going to be a unique change. As I have mentioned in, this was the last week of Stock To Trade. I will be taking a leave of absence from Stock to Trade. It will be very challenging since it has been a major part of my trading. I must remember that I must embrace the Journey. It will only be for about a month until I begin my Summer Job. Yes, I understand that it is very difficult. I must Adapt to Change. The Market will always be there. There is always another day and other trade. My area of focus will be I will Consistency, Sizing, Breath- Edge, Sophistication, see you next week. Go, Tiger. tradersmindset is once again Password.