…for almost everyone. Readiness to move:
There will be many upcoming posts about my challenge for myself this year – starting with a very very small account, and having to deal with (or maybe not?), the PDT rules. There are ways around it, I’m employing 2 of those ways, but the trade sizes then must be kept extremely small. Doing a small account is something I’ve never done over my trading career, so there has been plenty to learn, and I’m really enjoying the challenge and the experience. All of this was discussed in the conference call recently. The way I’ve set this up and approached this, I am avoiding the PDT rules, small position sizing, but I do a lot of trades.
Markets are about TRADING – ALWAYS, EVERY DAY. And INVESTING is 100% about TRADING – TRADING. Only the time frame is different. Investing is much much riskier. The longer you sit in something, the more potential problems you put yourself up for – AND, the more guessing, predicting, and analyzing you end up with. And the more of that uselessness you do, the likelier you are to FAIL. And TRADING is about PROBABILITIES – 100%. Got it? People who think they are more erudite than the rest of us idiots who trade very short-term, these smart people are ALWAYS – investors. Investing is somehow more academic and upscale. You need a high IQ to be an investor. Trading is for losers.
Do you know what readiness to move is, RTM? If not, why not? There is a discussion about it here. If you are clueless about this, you are lost. How do you have outstanding success in this business, with performance FAR above avg? You need to be in something – for the biggest potential move – in the shortest holding period. And if someone tells you differently, they know ZERO about trading. RTM is why most of the greatest traders around employ some sort of BKO strategies, long-side. (And short-side is basically the reverse of that.) It’s all about SUPPLY.
For myself, everything I do in individual stocks, is based around accum/reaccum/phase 1,2,3/pre-bko, bko, post-bko and using springs and dips to enter – dependent upon the technical situation. Do you know what that means? And I have developed SPECIFIC setups for EACH one of those technical situations – STRATEGIES in total. Those have been discussed NUMEROUS times for subscribers. Yet I am well aware that only a SMALL minority of the subscribers ever took the time to do the very hard, boring, monotonous work/study/research to try to truly develop these strategies. So again, it is shocking to me how LAZY way way too many of the people in this business are. At the same time, the people who are working hard, I really respect and appreciate them, and will be very pleased to see their inevitable success. And for those people, keep at it, this thing just takes time, and working very hard at this EVERY DAY – consistency – which is way more important than some stupid method. Believe in your work. Ignore everything/everyone else.
In a Bloomberg article here, there is a discussion about CLD and the company’s problems, and anyone who has been INVESTING in this crappy penny stock is getting clobbered. HOWEVER, this stock has been an OUTSTANDING TRADING stock for me.
Technical (tech) setups in stocks/markets are PROCESSES, I have been over and over that. And those tech setups require tech tools to recognize the tech actions which set the stage for the actual high-probability tech trigger to enter. Most people are way too impatient. Not only that, they want to buy when something is “cheap”/”low-priced” – huge mistake. I only buy strong, strong, strong.
Remember, I’m a TRADER, looking to get in and out. I starting watching CLD way back on 1/16 when it showed up in my scanner work. And I RECOGNIZED the PROCESS of the setup beginning. Was the stock in ACCUMULATION? Yes, I was 100% correct, but we can only know for sure later on. But that is the whole point of trading. So I kept watching it – the PROCESS – (charts 1,2 below). The charts below are chronological.
I started, correctly, sensing that the stock was getting ready to move. Chart 3 and chart 4, I did my SECOND trade in CLD. The first one was a 15% IN AND OUT TRADE from .33. Then I patiently watched it reset, and the second trade was from .38, another 15% trade, IN AND OUT.
That second trade, I was concerned it could be an upthust, it was, glad I sold all. I had no idea if that is the end of the whole move. So then I watched it reset once again, charts 5 and 6.
Then I recognized, correctly, that CLD was setting up for another BKO, and this time I bought the retest, charts 7, 8, 9. My best trade yet in CLD, another 15% trade, but this time in about an hour, that is outstanding RTM recognition.
In chart 10, I discussed my attempt at buying it one more time as I recognized another move right when it was ready to move, but no fill on this one. Chart 11 is a kind of recap, chart 12 is where it is now. So while I had three 15% RTM in and out trades, very low risk/high probability, spent very very little time over all in CLD. And all the people investing in it? Good luck to them.
