Table of Contents
- 1 Travels, Trading, and Charity
- 2 My Best Trade of the Week: Marin Software Corporation (Nasdaq: MRIN)
- 3 My Students Are Hitting Singles All Day Long
- 4 Question of the Week
Travels, Trading, and Charity
What’s up? Coming at you from Hawaii at the time of writing.
I was in Las Vegas last week. I flew there from Japan — which was basically a lot of eating sushi and hanging out with friends. I also met with some charities. As you know I’m constantly looking for charities to support.
Want to know how I have the freedom to travel so much and support charity? Trading. If you strive for this kind of freedom, apply for the Trading Challenge today. Money isn’t about money itself. Money gives you the freedom to travel to the places I get to visit. Money creates the freedom to give back.**
I was in Vegas for some meetings with my team and a friend’s birthday. Have to say, Vegas was a little cold and Japan was a little cold. It’s nice to be somewhere warm again! But there’s another reason it’s great to be back in Hawaii — I’m here meeting with two charities and planning a new Karmagawa project.
The charities I’m meeting with are pretty cool — one is an animal charity and one is focused on saving the reef. I really hope we’re a good fit and I can add them to the more than 30 charities we already support. As you can see, I’m traveling quite a bit. But one of my goals this year is to travel a little less.
The charity I co-founded, Karmagawa, has blown up the last year. So I want to slow down a little and really plan for what’s coming next. I want to make sure Karmagawa is in a position to take advantage of the opportunity to change the world.
I’m also trading — always.
It’s important for me to stress that. You can trade from anywhere as long as you have a laptop, a trading platform, and a decent internet connection. I love that about trading. It’s truly a laptop lifestyle if you want it to be.
The Trading Challenge is where many of my top students started. Come ready to work. There’s a lot to learn and you’ll have to study like never before — but the payoff, potentially, is freedom.
Want to learn how to be patient and wait for killer setups like my best trade of the week? What was the trade? Check it out …
My Best Trade of the Week: Marin Software Corporation (Nasdaq: MRIN)
This trade was on January 8. Despite my ridiculous jetlag, I absolutely nailed this stock for roughly 7% gain. It actually spiked a little more — closer to 12% — which means I took a little more than half of the potential profits but I still made $2,847.**
I was a little early on the trade. I made a video lesson and posted it for my students over on Profit.ly. You can watch it: I made it free because it’s such a good trade and a good lesson.
This was my best trade of 2019 so far and it took a lot of patience to wait for the right setup. But when the setup was there I didn’t hesitate. I even sized in a bit with my bigger Interactive Brokers account since it was such a solid pattern.
What’s the pattern? Buying on the afternoon of a probable first green day recent runner.
Check out the chart below:
There was a nice morning spike and then in the afternoon you can see the small spike, consolidation, and then the squeeze past morning highs. Also notice the volume spikes on the chart. Like I said, this was a perfect setup and it took patience and self-discipline.
I was happy to make nearly $3K even when I could have made $6K or $7K had I timed it perfect.** Locking in profits is always a good idea. This was all while traveling, so I’m really happy with the trade. You can check out the video here.
I also tried to trade the same stock a couple more times, but took small losses on both of those trades when the stock didn’t do what I thought it would do. I protected myself by following rule #1: cut losses quickly. And the small losses didn’t come close to the profit I made on the original trade.
The first of the two losing trades: I re-bought the stock late afternoon because it was a first green-day spiker which is one of my favorite plays right now. It made a new day high just before I bought. I was looking to sell in after-hours trading. Or on a gap up or morning spike. It didn’t gap up. No gap up, no problem: rule #1 cut losses quickly.
The second trade I bought the morning dip — taking a smaller position since it was a bit speculative. I ended up cutting losses quickly because it didn’t bounce. The lesson you can take away from those two trades: Protect your trading capital. Protect, protect, protect!
My Students Are Hitting Singles All Day Long
There’s been a major resurgence in small caps. There are literally dozens of stocks in play.
More of my students are learning to take 5%, 10% and 15% gains. They’re not going for home runs but learning to take singles. If you look through my Twitter feed I retweet so many students who report small wins of $100, $200, $500, or $1,000 on the day.** It adds up over time.
I’m so proud of my students for learning how to do this. It’s the difference between becoming self-sufficient and relying on ‘hot stock tips’ from promoters or shysters. It’s the difference between growing a small account and blowing up an account.
Unprepared traders blow up their accounts because they have no clue about risk management or they let their ego get in the way!
I just hope more and more students start to get this. Protect, protect, protect. Take small wins and build your account slowly. Learn how to plan your trades, execute your plan, and learn from mistakes. Cut losses quickly.
If you haven’t started trading yet, practice. Either paper trade or make small trades until you learn to build your consistency. Remember, it’s not just going through the motions — you have to keep working on this.
I often hear people say, “day trading penny stocks is risky.” It’s really not all that risky if you’re prepared and have knowledge.
I don’t take big risks. Many of my students don’t either. Some call it cowardly … my students and I call it smart trading. We’ll take gains — even if they’re small — over losses any day.
Question of the Week
Is It Safe to Dive Back Into the Markets?
I’ve been getting this question a lot, where people are like, “Is now the right time to get in or get back in?” I never left! My students never left. That said, I don’t force trades. Sometimes the best trade is no trade.
It’s Always Safe to Be in the Markets If You Have the Right Planning
When there’s no trade, your training is to study the past. Think about the samurai armies of ancient Japan. They didn’t sit around and be lazy when there wasn’t any war — they trained for the next battle.
Trading is a lot like this. The financial markets are a battlefield. You have to be training all the time. When there’s no trade, study the past. Do research, learn the patterns, and watch Trading Challenge webinars. If you’re totally broke then go watch my free videos. Time is the most important thing in the world. How are you spending yours?
If there was a great pattern today, 90% of people wouldn’t know how to play it. Would you? Do you know the right patterns? Do you have the right broker and the right risk management strategy in place? Do you know my 7 key indicators to determine whether a trade is good?
If You Always Trade in a Scared Way, Then It’s Not That Scary to Trade
I trade safely, so even if the market is crashing I pay attention to rule #1: cut losses quickly. Even if the market is spiking and there are dozens of plays (as you saw with the trade I did on the 8th where I took nearly $3K*), I play it safe.
Even though I could have — and probably should have — been more aggressive, I never really regret taking $3K in profits in a day. Those kinds of wins add up over time. You never regret it. You never regret cutting losses quickly!
You should always be “in the market,” but you should always have a plan. If you’re in the markets without a plan or you “dive back into the market” without a plan, you’ll get destroyed like most people.
There’s a commonly held belief that 90% of traders lose. I don’t know whether that statistic is perfectly accurate, but from what I’ve seen in over 20 years in the markets, it seems pretty close. And it’s all due to lack of preparation and lack of planning.
That’s why I’m here and why my top students are here: to teach that. I provide a great educational platform for traders. I’m not the best trader and probably not the best teacher. Tim Grittani is a better teacher — he’s meticulous in the way he explains everything. He has over 50 archived webinars you can watch as part of the Trading Challenge. Get in!
Let me know what you think of these new weekly updates. Are they helpful to you? Whether you’re a seasoned trader or this is all new to you, I love to hear from you! Comment below.