One big loss taught me more than any winning trade I’ve ever had. It sounds crazy, but this one trade wiped out nearly a year’s worth of gains. And it was completely my fault because I got arrogant.
I don’t know the term, but in pool games, you have to call the ball and pocket. If it goes into another pocket, one you didn’t call, it doesn’t count, right? Trading works the same way for me…
Earlier this week, I was traveling and didn’t have good Wi-Fi. When I finally checked in, something caught my attention. There were 2 HUGE runners, but only a few of my students had traded them. That’s when it dawned on me…
We’re seeing some OUTSTANDING breakouts right now. But with solid breakouts, there’s always some risk… You don’t want to just buy any breakout (these are VERY volatile stocks). Mind you, I’m not a perfect trader.
There was a time early in my trading career when I bought breakouts. Later, I made a lot of money short-selling penny stocks when others said it couldn’t be done. When I came back from the dark side, my favorite pattern was the dip buy (it was SO reliable).
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