Evening folks! Happy sunday to all. Markets down for the week last week nearly 3% across the board. The trading was tricky as the updays involved gaps that if you didnt sell your positions into you watched your gains just disappear. We are in a very fast trading environment as 5% gains can disappear in hours or even minutes sometimes. Its very important during these times to be tight with all trades. You want them to develop and have some rope but the second the setup is invalidated its time to get out of the stock and find the next one. This is a hit and run market. They key is to spread the money around never focus on just 1 stock. If you do that its all about luck whether you make money or not as you basically have to hope that your in the right one. I have just 4-5 same setups i play over and over. When I see it I take it. i rarely know which one is going to be the homerun and which one is going to be the 2-5% gainer.
What I do know is that over time if I make 10 picks I will have 6 winners. Out of those 6 winners 2 of them will be small 1-3% gains. 2 of them will be the 3-7% gains and 2 of them will be the in the 7-20% gains. Out of the 4 losses if I can keep them small 5% or under then at the end of the week Im going to have myself a very nice sum of money and I can do that over and over.
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