Last week we called a bottom in ROKU and initiated what I call a “position trade.”
These trades are typically longer than swing trades and less stressful. They last 30 days to 3 months. Best practice shows starting small and building your position on pauses as the stock moves in your direction.
For this trade we used our famous “failed test strategy.
After yesterday’s massive 25% rally, I’m adjusting the game plan and booking profits on a higher open today. Windfall profits were scarce the last few months so I am taking the money and looking for another setup.
Mentoring Lesson: Why I hardly traded during yesterday’s stock market rally.
One of the best traders I know, someone who makes seven figures every year once gave me this quote… “I’m a bull, that’s my bias. If a stock is down seven dollars today I am looking for a spot to buy. That’s how I get paid. I trade the hell out of my bias.”
I keep saying this again and again but I keep getting mail from trader wanna-be’s who are clearly losing money.
You won’t have a long, profitable trading career without sticking to your edge. Your edge is what does the hard work and gives you money.
It’s not the market, it’s not even you. It’s the probabilities that your edge offers. The trade expectation… the odds of your profit target being hit versus your stop loss.
If you believe the market has bearish order flow, you will never trade with conviction by trading against your edge.
Sure once in a while you might make money. But I want consistency. I want confidence. I want conviction.
I hardly traded yesterday because my edge was short. If you disagree with that, you’ve never quit your job and traded for a living. You can’t make consistent money flip-flopping every time the market changes direction.
Trust me. I tried that in the early 2000’s and it doesn’t work.
Be smart. Follow the smart money. Over time you will be profitable.
Stock Market Ignores German Recession Risks as Trade Optimism Prevails
It’s unusual to see such gloomy data on German economic activity having so little impact on European equities.
The nation’s industrial production slumped 1.9 percent in November, raising the risk of an imminent recession for Europe’s largest economy.
It’s the worst year-on-year drop since the end of the financial crisis, but it seems investors have brushed aside this risk to focus on potential good news from the U.S.-China trade front.
Apple and Tesla shares on the blockchain could be the next big thing in crypto
Cryptocurrencies had a wild 2018, tumbling well below some of the record highs seen toward the end of 2017.
On Monday, DX.Exchange, an Estonia-based crypto firm, launched a trading platform that lets investors buy shares of popular Nasdaq-listed companies, including Apple, Tesla, Facebook and Netflix, indirectly through security tokens.
Each token is backed by one share of the company traders want to invest in and entitles them to the same cash dividends.