Fallen angel stocks are very enticing because we dream about the ones which go from 50 cents to 50 dollars. That thought process is toxic. Wait for a recognizable setup, and take your shot – with a small amount of capital. Build your account over time, not in one shot. The dream of riches with one stock does not happen. Keep working hard everyday, that’s the little secret.
Here is the 12/9/2015 post about gold. As discussed in the video – about putting 2% in several individual miners (keeping the risk per company small), plus bigger positions in GDX and GDXJ. Yes they were highly correlated, so the overall risk was inherent, but that was the point – it was a sector bet. And these things are volatile. But I didn’t bet the farm on this either. It wasn’t about taking a wild bet on one individual stock.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.
3 Comments
Keep pounding the table on that, the little stocks can be a blessing and a curse.
Keep pounding the table on that, the little stocks can be a blessing and a curse.
Absolutely, and there are so few which are a blessing. And if they are, it’s often for just a few days.
The key is in not getting too attached to them. Let them go before they hurt you….and your account 😉