Why do 99% of traders fail?
Because they enter and exit trades at the wrong time.
They try to grab breakouts that become fakeouts.
So, how have I made over $7.5 million, winning 75% of my trades trading those SAME stocks?
Because you don’t need perfect execution to be profitable.
Heck, I’m often getting out of winning trades too early.
But I know how to design a setup to manage my risk better than most.
Let me show you exactly what I mean by using my >Weekend Trade in Cytodyn (OTC: CYDY).
Even though this wasn’t a whopper, I still managed to turn a profit where so many other folks got smoked.
Picking Stocks With Potential
Think of the best restaurant experience you’ve ever had.
What made it so special?
If you’re like most people, it wasn’t just one thing.
Everything from the food to the service came together to make it perfect.
High-quality trades work the same way.
I don’t just look for one thing, but a combination of factors to support the trade.
Cytodyn caught my eye for a few reasons.
First, >Breaking News Chat highlighted this company.
They >noted in their 8-K filing the permanent FDA hold was now partially lifted.
Essentially, they went from a full stop to some potential. Management believes they can get the entire hold released.
For a stock that’s struggled mightily, this is incredible news.
Second, the reaction to the news in the premarket and at the open was extremely positive.
You can see in the chart below that the stock began to move higher before the main session and nearly doubled from the prior close right after the open.
Many traders probably tried to buy this stock, hoping for a breakout.
They got burned instead.
Why did this one not keep running while another stock might?
Here’s the secret – I don’t know.
All I know is how to read the price action in front of me.
And Cytodyn popped and then dropped.
But that gets me to the third point.
Cytodyn fell back towards $0.24 and held there for most of the midday on light volume.
Then, shares started to climb before pulling back to about $0.26 and held.
Even though the stock was well off its highs, it still had buoyancy, with shares up over 30%.
Now, let’s take a step back and look at the whole picture.
This stock has a history of multi-day runs.
Friday’s price action could conceivably be the start of one.
In fact, shares had run for about a week within the past month.
Is it a guaranteed run? No.
But, here’s where the rubber meets the road.
Cytodyn closed the day before at $0.19 or so.
Shares were trading around $0.27 when I decided to jump in.
The high for the day was $0.36.
If the stock didn’t do any better than that range, I had $0.08 of downside and $0.09 of upside, or about a 50/50 risk/reward.
Ok, but now add in the possibility of a multi-day run.
Even if the odds are 10% or 5%, the potential extra gives this trade a lot of potential.
However, if the stock dropped below the low of the day at $0.24, I’d cut it quickly.
So in reality, my base case was more like $0.03 of downside to $0.09 of upside or a nice 2:1 risk/reward.
Plus, I’m using the weekend as a way to let promoters build interest to get a nice gap up on Monday morning hopefully.
This trade didn’t become a monster winner. But it was a winner nonetheless.
And as my account history shows, small base hits add up over time.
Ready to Master the Art of Risk Management in Trading?
Many traders find themselves burned by sudden market shifts, but what if you could turn the tables?
I’ve amassed >over $7.5 million by winning 75% of my trades, not through perfect execution but through superior risk management strategies. The key isn’t just picking stocks with potential; it’s knowing how to manage risk to tilt odds in your favor.
🚀 >Join me in our upcoming live training sessions. Here, I’ll break down my recent Weekend Trade in Cytodyn (OTC: CYDY), demonstrating how I secured a win where others stumbled.
🚀 Learn how to analyze stocks beyond surface-level indicators. Discover how to blend news, market reactions, and price action into a cohesive strategy.
🚀 Understand why it’s not just about the highs and lows of a stock, but the story behind its movement and how to capitalize on it.
Are you ready to elevate your trading game? To shift from playing catch-up with the market to being a step ahead? Your journey to becoming a risk-savvy trader starts here.