Table of Contents
- 1 Guatemala Volcán de Fuego Eruption 2018: Thousands Still Missing?
- 2 Trade of the Week: Why I Love Ethical Shrimp
- 3 Fire At Will: What My Students Did Last Week
- 4 Question of the Week
- 5 Millionaire Mentor Market Wrap
Guatemala Volcán de Fuego Eruption 2018: Thousands Still Missing?
In last week’s update I told you about some of my experiences in Guatemala. I want to share something else with you from the trip. It’s heartbreaking but someone needs to talk about it.
It’s an example of why I want you to join the Trading Challenge. I hope that your goals include becoming a self-sufficient trader and then using your resources to help others …
I visited a town that got decimated by Guatemala’s Fuego volcano. Locals estimate there are thousands of people buried beneath the ash and mud. Volcán de Fuego erupted on June 3, 2018 — for the second time that year. More eruptions and explosions followed over the next few days.
What I saw was just crazy. This kind of eruption causes what’s known as a pyroclastic flow. A mix of mud, rocks, ash, and poisonous gases engulfed whole villages at the bottom of the mountain. It’s like the eruption of Mt. Vesuvius in AD 79 which buried Pompeii.
Here’s the deal. The official death toll from the volcano is 194. The official number of missing persons is 234. Locals and organizations supporting the villages most affected by the volcano tell a very different story. They estimate the number of missing in the thousands. (Some estimates say more than 15,000 total and 5,000+ in one community!)
Why would the official numbers be different? I wish I could explain it. Maybe the government doesn’t want to look bad … or they don’t want to look weak. Around 3,100 people were evacuated but it’s estimated over 1.7 million people were affected by the eruption. And the volcano is still active. Spitting ash. There are warnings of potential future eruptions.
I want to help the locals. I met people who won’t leave the town we visited. We have them on video — I shared one below. I’ll share more in the coming weeks. They’re still looking for their relatives. And there’s the volcano to think about. It’s not like the bodies are just buried. If they do find anything … who knows what state the remains will be in. It’s incredibly sad.
I had to do something to help. So Karmagawa donated $40K to a new school. A lot of the kids are refugees from the volcanic eruption. It was pretty cool. But there’s more to be done. We need to share this. Communities decimated and official numbers don’t match numbers on the ground.
Check out the Instagram post below. Make sure you watch both videos — the second one shows you just how devastating the volcano was. Please share so we can help these people.
View this post on Instagram
It’s my honor to announce a $40,000 donation from @karmagawa to @rotaryinternational in #guatemala to help renovate and make improvements to this school that will educate 2,000+ children when the project is finished in a few months! Most of the children here are living in nearby refugee camps setup by @rotaryinternational due to the Volcan Del Fuego volcanic eruption in 2018 and despite the press saying only a few hundred people died, in the last few months I’ve now visited twice and talked to countless locals who estimate the real death toll is more like 15,000 as there are 5,000+ bodies buried in just one community alone that I visited so it’s a disaster of epic proportions and we must do what we can to help! Thank you @claudiabosch @isajongezoon @meliwhitbeck and @casapalopo for all your hospitality and for helping me understand the situation here and I can’t encourage everyone reading this enough to go visit Guatemala and lend a helping hand, especially at the great charity @pintandosantacatarinapalopo where Karmagawa is donating another $10,000 to help them paint their town and bring tourists in to help the local economy. I’ve now had the good fortune of traveling to 100+ countries, but only since I’ve gotten involved helping the locals, especially children everywhere who are the future, has it gotten infinitely more rewarding…something for all my fellow #traveladdict friends reading this to think about 🙂 #iloveguatemala #hebrewschool
It’s almost difficult to transition from that to the trade of the week. Here goes …
Trade of the Week: Why I Love Ethical Shrimp
Aside from the obvious environmental benefits …
NaturalShrimp Inc (OTCQB: SHMP)
This stock has been my biggest earning stock this year. It pays to know your favorite stocks and watch them. If the setup is right you can trade them over and over again.
This is a first green day pattern on an OTC runner. It’s a hot strategy that’s working right now. I look for first green days with a big percent gain of 10%, 20% … maybe even 30% on the day. If it closes at or near its highs with a catalyst, it usually gaps up or morning spikes the next day.
Take a look at the chart:
As you can see, I re-bought this play on a nice dip into the market close. My goal was to sell into a gap up or morning spike. I wasn’t sure if there would be any news catalyst, but it was worth a shot because it was a sizable dip. My thesis was it could re-test the day’s highs. I had good patience on this one — waiting for the ideal entry.
This one had perfect price action the next morning. Look at the nice gap up on the chart. Without any news, I decided to take the single — which turned out to be an excellent decision. I had a 17.65% gain for a profit of $2,025 on this trade.**
It was a potential re-buy on a big dip or a breakout with news. So far that hasn’t happened but I’ll keep watching SHMP. Rinse and repeat.
Overnight plays like this are good for traders still under the pattern day trader (PDT) rule. Make sure you paper trade or take small positions at first until you know how the play works. This one worked well.
There were other, similar, plays I didn’t take — like Curaleaf Holdings Inc. (OTCQX: CURLF) and CV Sciences Inc. (OTCQB: CVSI). They’re proof that certain patterns occur and you should learn to recognize them. I’ve added the charts below.
And here’s CVSI:
Notice both stocks closed at or near the daily high on a strong first green day. Then they gapped up the next morning. On the CVSI play, I didn’t take it because there was no news catalyst and I wasn’t convinced. Sometimes I’m wrong.
These are some of the types of plays my students are making right now.
Fire At Will: What My Students Did Last Week
There are so many freakin’ plays I can’t even keep track. I love this hot market. It’s a little overwhelming if you’re new — there are just so many plays. But you have to plan every trade.
Here’s my tip to cut down on your learning time a little: invest in “The Complete Penny Stock Course” by my student Jamil. (I wrote the forward.) Jamil is an engineer and helped design StocksToTrade. He got sick of my video lessons being all over the place and organized the information into one book.
I encourage you to watch the video lessons, too. The details, nuances, and subtleties are all important. For access, join the Trading Challenge today.
Jamil’s book is a crash course. Reading it will give you a foundation for the video lessons. And it’s not optional. It’s crucial. If you haven’t read it, get it right now. Go order it and read it right away.
Back to my students. It was like fire at will. Like I said, so many plays. I encourage you to check my Twitter feed to see what students are doing. They love to share their wins. (Some even share their losses so everyone can learn.)
And … a special bonus for those of you reading these updates but still sitting on the fence. This might help you decide to join Trading Challenge or subscribe to Profitly. Most of my video lessons are for subscribers or Trading Challenge students only.
… I make them free to view.
Here’s my March 22 video lesson on Profitly. In it, I share my thoughts on this hot market.
There’s a really good lesson about news catalysts there at the 6:25 mark. I traded Kali Extracts Inc (OTC: KALY) on March 21/22. It was another recent runner spiking into the close. I held it overnight for $962 profit.** But the news was almost laughable.
The takeaway: perception is more important than actual news. Watch the video to understand how this works. Nuggets of gold.
Are you ready for the question of the week?
Let’s do it …
Question of the Week
This one from a newbie using StocksToTrade to practice paper trading. His focus is on learning how to play morning dip-buys. He keeps a trading journal and a spreadsheet of his paper trades.
He commented, “I get the thesis right but either get greedy and don’t take the profit, or I’m not patient enough and get shaken out. Two minutes later the stock does exactly what I thought it would do but I completely miss it.”
And the question …
How do you overcome the combination of insecurity, ego, and greed that gets in the way of a good trade?
This is why practice makes perfect over time. You have to learn what not to do if you sell too soon and the stock does what you want. Maybe next time on that trade, that pattern, that setup, you give it more time. You learn from the last trade.
If you get too greedy and give it too much time — if you should have cut losses or taken profits faster — you have to adapt on the next trade.
Insecurity is the same. All this gets fixed the more times you practice something. Everything is confusing and scary at first. But if you’ve done the same trade and the same setup — and won 8 times out of 10 or 80 times out of 100 — your insecurity goes away. It becomes mechanical.
So the best cure is practice, time, and patience. Too many people want it to happen all at once and it doesn’t. You need to test, you need to tinker, and you need experience. You need to experience when you’re too greedy or not greedy enough. And it’s always a moving target.
It gets easier over time. I guarantee you this question came from a student who’s been trading for less than a year or two. I didn’t learn a lot of my best lessons until year 7 or 8.
Now, thanks to all the resources my team and I created, you can learn pretty much everything in one, two, three … or maybe four years. Depending on how hard you study. But the information is all there. It’s up to you.
Millionaire Mentor Market Wrap
That’s another week in the books. I’ve been working 12–14 hours a day for 20+ years and I still love it. I love my life. I love my students. I love my team. And I love being able to give back.
I hope these updates inspire you to go out there and be the best you can be. Starting today.
Go get it.
Are you a trader? How are you playing the hot market right now? Let other readers know by commenting below. Just getting started? Comment below — I love to hear from all my readers.