Updated: Mar 10
"Round numbers attract crowds-put your stops a little farther away." Dr. Alexander Elder
Hey, there I hope you had a fantastic past week! Another week in the books! Time sure does fly by. Today I am going to describe the trades which I took last week, along with stock analysis. Overall this past week was not a great week, 3 total losses, but its part of the process. Again the sole objective with those with a small account is long term survival. 90% + fail within the 90-day mark, be able to outlast your enemy. Risk Management is paramount. Stay in the game, it’s just like a poker game, when you lose all the chips you go home. The casino is assuming risk, they are willing to do that because they know more or less the odds will be in their favor the vast majority of the time. With trading, you must take the risk! It’s all about you! Don’t lose all your chips. As Larry Hite once said “If you don’t bet, you can’t win. If you lose all your chips, you can’t bet.” The vast majority of Traders are solely focused on the P&L. Before taking the trade, they imagine how much money they will make if the trade goes in their favor. Your NOT trading your P&L, your Trading the Chart! Go into every trade Risk First. Ask what is the worst-case scenario, if this trade was to go against me, what is the worst possible outcome. As for the three trades which I will describe today, I had an Entry, Stop, and Target. For every single trade, you should know those three main components. People get confused that you make money when you Exit, I disagree. I believe that you make money when you enter, it’s all about how you position yourself for the trend to come. As well you always want to know the exit door. Have a stop loss, in both a fixed Dollar amount according to your account size. Ideally you a Mental Stop-loss or a Trailing Stop loss. This upcoming week I will be experimenting with a Trailing Stop. No matter what in any trade a always know the exit! So let’s dive right in!
Trade Recaps $ENZ,$OPK and $GLBS ( -$73.34 ) 0/3. Trade Executions can be found below.
$GLBS was a speculative trade. I was aiming for a potential afternoon spike as this was consolidating well above the whole 1$ mark. I was taking into consideration that this has gone full supernova in the past. Overall this is a well-timed trade, I had a game-plan. I had an entry, stop, and target. When my risk threshold was hit I did not hold and hoped. I cut my loss. It's ok to be wrong, but it's not ok to stay wrong. Onto the next!
$ENZ was not a great trade overall. More of speculative trade. I was aiming for a potential afternoon spike into the close, but the odds were not on my side. I was expecting this to break out. I need to be reactive, NOT predictive. I was buying mid-range and mid-day. I allowed FOMO- Fear of Missing Out take the trade! That is a big NO! I did have an entry, stop and target price. I did cut my loss when my thesis was busted. Overall this trade was a great lesson. Don't trade mid-day, don't buy mid-range, don't let FOMO trade. I admit my mistakes. Onto the next!
$OPK was more of speculative trade. I was dip-buying $OPK in anticipation of a potential spike towards the HOD. I did have an entry, exit, and target price. I need to be more patient next time for the key support area to hold. I was on the right track, I cut my loss when my thesis was invalid. Onto the next!
Out of those 3 trades, only $OPK I was fine with. $GLBS & $ENZ I was trading mid-day and mid-range! I must keep it simple. I do have weekly videos that I am going to upload on Wednesday! The overall market has been getting crushed! Again take note that three out of four stocks follow the overall market. The best trade if often none! Having no position is an option! Cash is King!
I will report back on Wednesday. I am currently long $PCTL 7,500 Shares @.037 AVG. I will have a trade recap drop some videos! See you soon!
$PCTL thesis: Look left to see the right- this is more of a speculative trade- I am long overnight as I would love to sell into a gap up. Ideally the high of .040- the long term breakout will crack- again this is a game of ODDS! I do have an entry- stop and target price- I did miss the dip, buy got the one before the close
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