Table of Contents
- 1 More Work and Play in Seychelles
- 2 Trades of the Week
- 3 What My Students Reported
- 4 Question of the Week
- 5 Final Lesson of the Week: A Champion’s Resurrection
More Work and Play in Seychelles
Hey there! Spent another week in Seychelles. I stayed at the Raffles Hotel, which has stunning views. I highly recommend it. I hope you dream of traveling to some of the beautiful places I get to visit. If you can’t plan it now, then add it to your bucket list.
None of this would be possible without learning to trade and now teaching. The top way I can help you potentially reach this level of freedom is via the Trading Challenge. If you’re accepted into the group, you’ll join my top students, as they’re all members.
Seychelles was a combination of work and play. I did a bunch of crazy boat rides, played with sea turtles, and chilled on the beach.
Also follow Save the Reef on Instagram. And please start using these hashtags on social media: #worldoceansday #saveourocean #savethereef #karmagawa. Help spread the word.
I got too little sleep while in Seychelles because I was trading at crazy hours due to the time difference. But I was trading …
Trades of the Week
Usually I talk about my biggest money winner of the week. Since that trade is part of the question of the week, I’m going to share two others here. Both trades show restraint and experience more than anything, so they might be a better lesson than the biggest winner.
Precipio Inc (Nasdaq: PRPO)
I bought this recent runner closing on a solid first green day. It had big volume and I wasn’t sure if I’d hold overnight. I decided to see how it acted around .37ish which was multi-day highs. My goal was to sell into the low .40s
Check out the chart:
PRPO was moving fast and choppy so I got out for small gains. I decided not to take overnight risk because it was, frankly, a scary stock.
So why do I call this my best trade?
Because even though it was my smallest profit, I was dead on. My thesis was correct and the first green day strategy worked. I just sold way too soon.
The lesson: You can’t judge a trade only by how much you make or lose. You have to consider how the trade worked out and how the chart played out.
Also, stay safe. PRPO traded after hours and was all over the place. I was fortunate to eke out a small gain on this one.
UP Fintech Holding Limited (Nasdaq: TIGR)
I dip-bought this recent runner into its big morning panic. I thought it would bounce off support from the previous day. It was a classic setup for my morning panic pattern. TIGR is a little higher-priced stock than I like, but I figured I could make 30 to 50 cents a share on the bounce.
Check out the chart:
I met my goals on this trade, taking 35 cents a share. Rather than get greedy, I played it safe. It was a good decision because the bounce failed and TIGR kept falling.
Notice the support line on the chart (blue line). My entry was based on support/resistance from the previous day. I also watched volume and Level 2 data for signals to exit the trade.
The Lesson: follow your plan. By taking profit according to my plan, I avoided having to cut losses later.
What My Students Reported
I can’t even keep track! There are so many different plays. Some of the tickers my students reported trading are:
- PRPO (Some had more patience and played this better than I did.)
- CBD Unlimited Inc (OTCPK: EDXC)
- Medicine Man Technologies Inc (OTCQX: MDCL)
Students reported looking for big, multi-week and multi-month breakouts followed by dips. Both EDXC and MDCL showed this pattern recently. This post explains when to dip-buy versus not dip-buy.
As always, one of the top ways to see what my students report is to follow me on Twitter. I retweet trades my students post so we can all congratulate and learn from them.
The other way you can see what students are doing is to join Profitly and the Trading Challenge. Students are there in the chat room throughout trading hours. They share wins, losses, and their thoughts about trades.
The chat room is also the place for questions during live trading webinars. Trading Challenge students learn by watching as potential trades unfold. When you join you’ll be able to ask questions about setups, patterns, and tickers. And you’ll learn more about news catalysts.
Which brings me to the …
Question of the Week
“How do you judge the quality and veracity of a press release?”
I believe you need to pay attention to news. News catalysts can have a huge impact on a stock’s price. This is especially true of penny stocks. So it’s important to understand it’s not just about price action. I look at price action, charts, and news.
Here’s an example: My biggest dollar winner last week was a play on Kraig Biocraft Labs Inc (OTCQB: KBLB). This former supernova is a company involved with using silkworms to spin spider-silk. They make freakin’ spider silk for clothing! It sounds like a scam, but …
… this press release on April 17 mentioned a partnership with Polartec.
Polartec is a big company. It’s not uncommon for a small company to mention a partnership with a big company. Over and over again I’ve seen this sort of press release drive price action. But it says in the press release they’ve been working on this since 2016. So they’ve been working on this for two or three years and nothing’s really panned out. What gives?
They say the spider silk is so strong it’s military grade. So they’re working to create military-grade textiles. Spidey-suits.
Here’s where it gets interesting and why I chose to go much bigger with this trade than other recent trades …
The CEO of Polartec was quoted in the press release. If you’ve seen my DVDs, then you know I really respect press releases when the big company is quoted. And especially when the big company mentions the small company. It can lend massive credibility to the press release.
In this press release, not only was Polartec quoted …
… and not only was Kraig Laboratories mentioned …
… but the big company gave the little company a big positive statement. Check out the quote from the Polartec CEO:
“This project combines two of our most important innovation missions: providing best-in-class textiles to our Nation’s military personnel, and our investment in a fully biodegradable product line. Our partnership with Kraig has the potential to be as revolutionary as when we created the first performance fabrics made from post-consumer recycled plastics in 1993.”
So this press release was the kind I really love. Here you have a mention of potentially revolutionary textiles that are biodegradable. You have the big company mentioning the little company. You have a strong positive statement. Wow.
I have no idea what this spider silk is going to do long-term. But when the CEO of a multibillion-dollar business gives spider silk and Kraig Labs a testimonial, who knows how high this could have gone? It had news, volume, and a big price move.
I played it twice but the second time was the big one. I not only opened a large position, but I also added to my position just before the market closed. Based on the news plus a strong first green day, I thought it would gap up nicely in the morning.
There was a little gap but then a fast sell-off. So, while I took my biggest profits of the week on this trade, it didn’t pan out the way I expected. But I loved the press release. You can learn a lot about press releases by keeping a link to that one for future reference.
Final Lesson of the Week: A Champion’s Resurrection
If you follow golf, then you know that we just saw a huge victory at the 2019 Masters. Some pundits are calling it the comeback of the century.
I watched the Masters. It was fascinating to see how the winner picked his competitors apart toward the last few holes. There was a big bunch — maybe five or six players — tied with about five holes to go.
Then the champ turned it up. It reminded me of the 2017 Super Bowl and other close-call championship games. In whatever sport — it’s very close, standard work they do most of the time … but they know how to kick it up to another level when the time is right.
How does this apply to trading? With trading, you don’t have to be aggressive all the time.
But if you’re ready …
… then when the right pattern presents itself, you can be more aggressive.
That’s what I did with the KBLB trade above. I was prepared. I also got out fast the next morning as the stock dropped in price. Preparation is key!
Late Addition to This Post: We Are All Human and Senseless Killing Must Stop
Please read and share the following Instagram post. Be sure to swipe/click right to see a graph of the number of terrorist incidents worldwide over the past 40 years. I was raised to believe the world is what we make it. Which is why I’m working so hard to help with Karmagawa, Save the Reef, Pencils of Promise and other charities. It’s our duty to NOT look away. #stoptheviolence
View this post on Instagram
Today is #earthday where we celebrate/demonstrate our support for environmental protection; go see my charity @karmagawa and @savethereef accounts to learn about the issues facing our planet, but I’m posting here about the recent bombing attacks in Sri Lanka that has so far killed 290 people and injured 500+ more, because not enough people are talking about this tragedy AT ALL…in fact, Sri Lanka currently has a social media blackout in effect and my local friends there can’t even post about what’s happening! Given that I recently spent nearly a week in this magnificent country just a few weeks ago on a @the.hungry.tourist trip, I’m currently in communication with my local friends on the ground there who are thankfully okay, and because I stayed in the beautiful Shangri-La Hotel that was bombed in Colombo, I take this situation VERY personally. After all, Sri Lanka is a truly incredible place, their people are so warm and friendly (they also have the best crab I’ve ever had) and they are a part of our Earth and the devastation they’re facing is due to this violent environment that’s poisoning our entire planet…I call it global killing. Swipe right on all the photos I’m posting and you’ll see a graph of the number of terrorist incidents worldwide over the past 40 years and the recent spiking is VERY very similar to our global warming/environmental issues and the worst part is that the vast majority of people just accept all of this bad news as just a part of the “sad world” in which we live. Well, I don’t because I was raised to believe that the world is what we make it so I’m doing what I can to help with @savethereef and @karmagawa and stay tuned for my plans to help lessen violence in the world too because no matter our background, race, religion or nationality, WE ARE ALL HUMAN AND THIS SENSELESS KILLING MUST STOP! I’ll have more details of my plans soon, but for now please share this post and help remind your followers about the ugliness that’s happening in the world right now and it’s our duty NOT to look away, but to recognize it and try to help protect each other and our earth. #earthday2019 #stoptheviolence
Are you a trader? What takeaways from today’s update will you apply to your trading? Comment below — I love to hear from all my readers.