The realized profits are 4000+, the rest is still on paper. As you can see, all my positions are only worth around 10K each. What if I traded 50K each? 50K each position is too normal to even talk about it. It would still be the same signals and the same set-ups. I’d be up 30k in a week. This kind of money would make a brain surgeon jealous. That is what you and I are aiming for. But the journey to that kind of money is paved with the bones of dead traders. Most traders will fail. But if you can make it, it is extremely rewarding.
As for the remaining 3 trades of mine, If they die, they will not eat into my profits since they all have a nice cushion from where I opened them. If any one of them hits their target, that is extra bonus. I am very relaxed now, which is good for my trading. Of course, there is possibility of a huge gap-down. This is where the risk of swing trading is. I still clearly remember that a stock I traded last year gaped down 41% right after I bought it. I cut it in the pre-market hours. And it was delisted later. That is the kind of business you and I are in.
I received a few questions about how I select stocks and why I traded POT and WLT. My stock selection is very simple.
- anything that moves fast, which is volatility
- anything that is easy to buy and sell which is liquidity
- anything that might rise like THE rocket of all rockets or drop like THE rock of all rocks, which is sector leaders
POT. WLT, SOHU and STP
There is nothing complicated. Pay attention to the trend line I drew. They all have formed tripple or double bottoms. As for how these bottoms are formed, they are documented in Encyclopedia of Chart Patterns (Wiley Trading) All of them were in a short term uptrend. After I entered POT/WLT, they retraced slightly. It did not scare me since I was not even watching them. Here are 3 good things I followed religiously during those trades.
- No Fear. I f you pay attention to the trades I took in WLT, you know that I failed a few times. But I kept entering it when there was a signal.
- Still No Fear. I held onto them until they reached their targets.
- No Greed. My exits were very quick and clean. They were out once their targets were reached.
POT
WLT
SOHU
I was a bit late opening the sohu trade, But it was not too bad. It has formed a few solid bottoms. As for STP, this guy was the weakest. I was just following the best trading advice, cut the losers/weakest, ride the winners/strongest. Could I be wrong? Oh Yeah, But I do not care. All I care is following my game plan. That is it.
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