It makes me sad to witness traders self-destruct over a losing trade.
Losses are an inevitable part of trading, but repeatedly making the same mistake is a recipe for failure.
The absence of a crucial skill, patience, is often the reason why many traders fail.
They tend to lack the willingness to wait for the right opportunities and impulsive force traders which ultimately leads to their downfall.
All of my millionaire students know it takes patience when it comes to trading, a trait most individuals don’t have, even outside of the trading world.
We live in a world of want, and before anyone thinks about making money trading, I want to share with you the importance of having patience…
And why I am patiently watching three stocks that may have some of the biggest potentials, without chasing.
Let’s dive in.
Table of Contents
Having Patience
Trading requires you to have patience. However, most traders are just in it for the thrill of looking to make a quick profit.
Fun fact, that’s not trading, that’s gambling.
You are not going to find success by lacking patience.
If you are constantly making multiple trades a day, you’re most likely not focusing on the best setups that are out there.
In a slower market like this, there aren’t always going to be solid plays to choose from…
And when you start forcing trades on these random setups, you’ll get random results.
Sure you may get lucky once in a while, but eventually, the market will humble you.
You can guess right only so many times until you start losing, it’s how the law or probability works.
In April, I proved that not having patience can be painful…
Here are just some of my biggest losses…
I was simply forcing trades that weren’t there.
Remember to ask yourself these 7 questions before you make your next trade.
Take the time to prepare and study the process…
By being patient and focusing on the process and execution you’ll do better.
You don’t need to trade every minute you get simply because you’re bored and you’re an adrenaline junkie.
Focus on what’s working and know how to spot the opportunities before it’s too late.
Now, let’s get into why I am patiently watching these three stocks.
Ocular Therapeutix, Inc. (NASDAQ: OCUL)
Let’s take a quick look at the chart…
On Friday you can see the stock broke out, and the last thing I wanted to do was chase it.
This recent spiker seems to be a little less volatile than others, but it’s still worth watching.
As the stock broke out on Friday it failed to hold its big spike as it pulled back.
Yesterday, the stock sold off early in the morning, and there was no bounce to follow, just a constant downtrend.
Looking at the history of the chart allows you to recognize where some of your opportunities are…
After all, it’s all a part of my 7-Step Penny Stock Framework.
If a dip buying opportunity comes your way, remember to sell into strength…
No overstaying or chasing is allowed!
Be disciplined and patient, the best thing you can do here is waiting for a dip buying opportunity.
If there aren’t any, forget about this stock and move on to the next possible trade that’s out there.
Netlist, Inc. (OTC: NLST)
On Friday, NLST had a solid run into the close, and on Monday morning the stock spiked up even more.
One may argue that this could’ve been a solid over-the-weekend play given its solid run into the close on Friday.
I didn’t trade this stock on Friday because I have been busy traveling, but it did offer a quick opportunity for traders to capitalize and sell early Monday morning.
If you decided to chase NLST yesterday as soon as the market opened, you bought the stock near its highs…
And just a few minutes later, the stock panicked from nearly $6 a share to $5 a share.
This is an important lesson as I see way too many traders buy at the open as FOMO kicks in…
They are afraid they are going to continue to miss out on the stock’s run-up and they want to get in on the action.
The worst thing you can do is chase, remember to wait for the stock to panic, don’t go chasing it.
Be patient!
If you go back and look at the chart, you can see where the stock broke out and tested resistance around $6 a share.
I’m not looking to buy this stock thinking it has to run, but instead, I’ll patiently wait to see if there is a panic dip buy to capitalize on.
More Breaking News
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- Dentsply Sirona to Reveal Growth Strategy at JPMorgan Conference
- Strategic Price Evaluations Shaping Market Reactions
Bullfrog AI Holdings, Inc. (NASDAQ: BFRG)
A.I. Stocks have been red hot lately, but it doesn’t mean it’s time to just buy and hold.
Just as quickly as one may spike on news, it can come down just as fast.
Looking at the chart, the stock soared from nearly $6.50 a share up to $9 on Thursday, April 20, but then it fell right back down on Friday.
Yesterday the stock bounced just a little before dropping even lower, and recognizing this early on I knew I had to be patient.
Going forward, I am going to look for a support level of around $5 a share for the stock to possibly bounce at, and if it does, that’s when I will be looking to enter a trade.
As BFRG is a little less volatile than the others, it’s still worth a watch to practice the dip-buying strategy, and remember, if the stock doesn’t bounce and continues to drop, be sure to cut your losses quickly!
Final Thoughts
Trading isn’t an exact science, but recognizing these patterns is what’s going to help you in the long run.
Don’t force trades just for the sake of trading, and when there isn’t much out there, keep studying so you’re better prepared for when the market really heats up!
I’ll see you in chat.
-Tim
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