Just when you think you’ve heard it all, the unexpected sweeps the rug from beneath your feet.
All the pundits were ready to ring the recession bell, certain that stocks were on a downward spiral.
However, they couldn’t have been more off-target!
With a wave of innovation sweeping the market thanks to AI, we find ourselves amidst a raging bull run instead.
Now, as we stand at the halfway mark of this roller-coaster year, it’s time for some real talk.
Not just about the home runs but also about those pitches we wish we’d never swung at.
No sugar coating, just raw, hard-earned lessons from the highs and lows of my trading journey in 2023.
Whether you’re sailing smoothly or battling the tides, it’s never too late to change course.
So, strap in, and let’s dive into my best and worst of H1 2023.
The Peak Performers
MGOL, an under-the-radar stock, exploded onto the scene due to Lionel Messi, AKA The Greatest Soccer Player Alive, deciding to move to Miami and play in the MLS.
Messi’s move hasn’t been in the headlines much yet, providing a unique opportunity. The secret sauce here was not rushing into the trade and waiting for the right dip-buying opportunity.
With a disciplined approach and a close eye on the news, a fantastic opportunity presented itself, resulting in significant profits.
One of the unique concepts I teach is the First Green Day.
But to highlight, when an OTC stock runs hard on its first big green day and holds its gains to the close, you play for it to gap up or run higher the following day.
It’s a pretty simple concept that can be a trading strategy in and of itself.
However, if you combine it with the other two concepts discussed above, it creates some pretty powerful trades.
Think about it like this…
GTII said it planned to investigate illegal short sellers on Friday aggressively.
That pumped the stock, which held its gains going into the close on Friday.
Sure enough, shares popped hard at the open on Monday, ripping another +30% before all was said and done.
BBAI and EFTR – The Learning Curves
Even in losses, there’s a goldmine of learning. BBAI was a harsh lesson in discipline and the importance of cutting losses quickly. Averaging down out of desperation proved costly.
This experience underscored the essential lesson of owning one’s mistakes and learning from them, not shying away from self-scrutiny.
I missed the breakout in BBAI. I tried to dip buy too aggressively, and then when the real dip buy opportunity came…I was already out of bullets.
What can I say…an absolute disaster.
I was forcing the action. Trying to get past $7.5 million in trading profits and pushing to get my monthly gains up.
But the market doesn’t care about my profit goals.
And that’s the funny thing about trading.
The more you desperately want to make money, the less likely you will.
EFTR served as a similarly humbling reminder. Not sticking to rules, succumbing to market pressure, and breaking discipline can lead to substantial losses.
The importance of focusing on A+ setups, understanding the importance of the right entries, and practicing patience were reinforced.
My loss in EFTR is an absolute embarrassment.
Not only did I botch the entry, but I also botched the order size and then completely forgot to watch the news. The company announced an offering while I was long the stock.
Everything that could go wrong did.
This is a problem.
Because I’m typically making anywhere between $400 to $800 on my winning trades.
I need potentially several dozen winners to make up for that one loss.
And that’s simply how you DON’T want to play this game.
But that’s what you get when you break the most important rule.
Mindset and Strategy Adaptation
Trading is as much a mental game as it is a strategic one. Emotions can often cloud judgment, leading to rushed decisions and loss amplification.
Thus, maintaining the right mindset, staying patient, and sticking to proven strategies are critical.
Embracing failure as an opportunity to learn is crucial in trading. Each trade, whether a loss or a win, holds a lesson.
It’s these experiences that shape a successful trader. Adopting a continuous learning approach, focusing on the process rather than the outcome, and setting process-related goals can steer the trading journey in a profitable direction.
Whether you’re a seasoned trader or just starting your journey, remember each day brings a new opportunity to learn and grow.