Sorry its been a few days since I've updated my trades. I have been enjoying a nice golf vacation playing 6 rounds (yes 108 holes) in 4 days. The weather was beautiful, I hit up a few wineries, and enjoyed some beautiful courses with a few buddies. More importantly, I'm all refreshed now and ready to battle the markets again for the second half of this year.
As I was playing over the weekend, I realized the similarities between managing risk in golf and managing risk when you are trading, and I'm sure you know what I'm talking about. Ever found yourself trying to go for the green in two on a Par 5 when the hole is surrounded by bunkers or water? Or when you find yourself in the trees and instead of laying up on the fairway, you try to smoke the ball and try to go for it? What normally happens in this case is you try to hit it out, your ball hits another tree, and you end up in more trouble. You end up getting quadruple bogey and this blow up ruins your score and entire round. That is exactly what can happen to you when you are trading and you don't limit and cut your losses fast. One trade (Yes one trade!) can destroy your returns and your portfolio for a long time if you trade too aggressively and don't manage your risk. Make sure to manage and size your positions correctly and know when to get out so you don't blow up your portfolio because it can take a long time to make up those losses over the long term. So remember, next time you want to drive the ball out of the woods instead of simply laying up and giving yourself another chance, ask yourself what the risk/reward is!!
Markets are looking fairly strong after pulling back a bit last week. There are many stocks breaking out of good patterns and giving you possible gains of +30% daily. Its possible to find these so look at your charts and find high probability charts, stay nimble, and don't trade too heavily to one side. I think the market will continue to trade in a fairly large range with certain sectors leading the charge. For example, I have been finding at time certain sectors are breaking out huge. This last day or two, pharma stocks have been on fire while other days all the financials are strong. Be aware of what sector is leading the markets and trade stocks in these sectors to be successful!
BUY CNO $4.39,
SOLD WTN.TO $3.07, +2%
SOLD ARM $7.82, flat
BUY CNXT $2.70
SOLD CTIC $1.62, -1%
BUY MEG $7.65
BUY SD $12.42
As I was playing over the weekend, I realized the similarities between managing risk in golf and managing risk when you are trading, and I'm sure you know what I'm talking about. Ever found yourself trying to go for the green in two on a Par 5 when the hole is surrounded by bunkers or water? Or when you find yourself in the trees and instead of laying up on the fairway, you try to smoke the ball and try to go for it? What normally happens in this case is you try to hit it out, your ball hits another tree, and you end up in more trouble. You end up getting quadruple bogey and this blow up ruins your score and entire round. That is exactly what can happen to you when you are trading and you don't limit and cut your losses fast. One trade (Yes one trade!) can destroy your returns and your portfolio for a long time if you trade too aggressively and don't manage your risk. Make sure to manage and size your positions correctly and know when to get out so you don't blow up your portfolio because it can take a long time to make up those losses over the long term. So remember, next time you want to drive the ball out of the woods instead of simply laying up and giving yourself another chance, ask yourself what the risk/reward is!!
Markets are looking fairly strong after pulling back a bit last week. There are many stocks breaking out of good patterns and giving you possible gains of +30% daily. Its possible to find these so look at your charts and find high probability charts, stay nimble, and don't trade too heavily to one side. I think the market will continue to trade in a fairly large range with certain sectors leading the charge. For example, I have been finding at time certain sectors are breaking out huge. This last day or two, pharma stocks have been on fire while other days all the financials are strong. Be aware of what sector is leading the markets and trade stocks in these sectors to be successful!
BUY CNO $4.39,
SOLD WTN.TO $3.07, +2%
SOLD ARM $7.82, flat
BUY CNXT $2.70
SOLD CTIC $1.62, -1%
BUY MEG $7.65
BUY SD $12.42
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