Just after the opening bell today at 9:33 AM, ABIL embarked on a rocket ship rally. The stock was actually down for the first couple of minutes, reaching a low of .80, and then doubling in 10 minutes. The great thing about trading is there are numerous ways to do this business well, (and many more ways to do it poorly). Last night I did a video about this stock, and 4 other winning stocks. I had other positions and didn’t catch this stock today, but my partner Stevie did. She is very comfortable with trading pure momentum, I’m not. So she bought right into the blast off when the volume started picking up along with the upside price spread. And maybe more importantly (and professionally), she dispassionately sold the stock into strength with no second guessing – in @ 1.12, and out @ 1.58.
In what sector of markets can you see this kind of a move….with zero account leverage. To repeat this concept, in the small stock sector the leverage is in the price (volatility). The volatility is what allows us to build our accounts, or it can destroy us. Volatility is either our friend or our enemy. The only way to make it our friend, is to learn to stop it from being our enemy. This can be done well, but it will never be erased completely. Hedge funds and those who exclusively trade the big markets, need to use account leverage to achieve any kind of decent returns. To me, that approach carries much more risk than trading small stocks, if you have a professional approach to trading this sector. If you have a lazy attitude, you can kiss your account goodbye. This business requires hard work, there’s no magic, no instant wealth.
I’ll watch your Air-to-fakie in the halfpipe from the bunny hill.
I don’t ski, but air to fakie is a great visual of these momentum blast offs. And being able to quickly “pivot” out of the trade. There are people who actually feel comfortable doing these trades, they just don’t “feel” right to me. I’m basically over at the bunny hill also.