250 [Why do I keep selling too early? Dec 18, 2020]

  • FVRR has like a htf type of setup, looks really good, I think this thing looks like it wants to go higher, looks really good, just been relentlessly building hls, surfing the 20day and looks really strong, really really strong. If this looks like this by Mon it’s gonna be a 5* flag setup, so strong, relentlessly building hls.
  • VEEV another lcap name looks great on the weekly, building hls for like 6months, there’s so many of them, it’s kinda hard to get bearish on the market when so many things are breaking out, like leading growth stocks, just a lot of strength.
  • DQ, yeah that’s what happens when you buy a htf, in a hot sector in a good market, you’re supposed to make a lot of money, that’s what supposed to happen, good things are supposed to happen.
  • SKLZ, see what happened to it yesterday after I sold it, I sold it here low 17s near the open, then literally after I sold it went straight up since, you see where it bounced, this yellow magic line called the 20day, found support there, it was about to crash down then it found new rocket fuel and yeah, oh man. I’m so good at buying things, like I have literally perfect entries on both longs and shorts, but selling, I have specific rules etc but selling is just so hard, entries are so easy, you can get perfect entries on everything but selling is just so hard. You can perfect buying but you cannot perfect selling.
  • PLTR is one trade I’m really excited about, it’s gonna make a big move either way it resolves, it’s a very liquid lcap stock, if it breaks out of this triangle could very easily go to 40, breaks down it could very easily go down to mid teens or something. I really like these tight ranges on liquid stuff, this is a lcap stock 43B mcap, look at the ADR 12.7%, this is a lcap stock where the average daily move is 13% think about it that’s insane, the avg mcap fluctuation for this stock is like 5B that’s insane, whoever created the efficient market hypothesis should be castrated, or actually anyone who believes in it.
  • SBE is a non scam BLNK? Okay, well BLNK is a super scam and that’s the leading one, that’s what I keep telling, the sh*ttiest stocks make the biggest moves, kinda funny how it works. BLNK is the leading ev name right now, it’s gonna be a great short eventually, maybe in the high double digits.
  • This is the type of market we are in, you sell a stock bc you think it’s getting a bit extended and then it goes up another x% in just a few days, like everything is going straight up, literally everything, guys if you have stocks in your portfolio that haven’t gone up in the past week they’re prob sh*t. What a market, back in Mar2020 no one wanted stocks and now everyone wants stocks, this is human nature. this is exactly what happened back in ’98, there was a big sell off Q398 and that was literally the lows before the mania phase of the internet bubble, that’s what happened this time around also, we had the corona sell off and after that we had this non stop aggressive mania buying.
  • QS I got stopped out on the orhs buys yesterday took a 200k loss on it, and then I rebought it here, look at how it found support on the 10/20ema and then it started building these hls, you can just draw a straight line, so then I rebought it here 66/66.50 late day. It’s exactly what happened here [4/12/2020] when I rebought, I got stopped out of half on the orhs buys when the stock took out lods, then the stock found support on the 10ema on the 60min, started grinding higher and then I rebought half. Exactly what happened that time too. I still think this is the hype leader, they don’t have a functioning product yet but it’s a legit company with legit tech, potentially world changing tech so we’ll see, these are the things that are working rn. Yeah this QS I’m looking more on the hourly chart, these super fast stocks you kinda have to look at the intraday chart many times on those bc they’re so fast.
  • There’s so many ways to skin a cat, so many ways to trade, the key is that you buy the stocks that are gonna go higher, that’s the key. High momo stocks, hot sectors, big stories, big growth etc, that’s what’s hot rn and you gotta go with it, you gotta go with what’s hot, that’s our job as traders, that is our job as traders.
  • ABNB is gonna be a great short setup, it’s already up what 3 days in a row, this is another one lcap stock 82B mcap, it’s up 32% in just a few sessions, that’s a huge move. If it can get to high hundreds or so by Monday that would be awesome, and it’s one of these high priced liquid stocks.
  • COHU yeah idk, this is like the third flag in a short amount of time, when you get like the second flag you usually want the 20day to catch up, or third flag if you’d call this a flag also, idk I’m a skeptic about these ones.
  • TAN, I do regret I sold on this day here [30/11/2020] like $85 or something, then it pulled back a little bit more found support on this magic yellow line. Isn’t it funny how these momo stocks tend to find rocket fuel on these magic lines, just lines on the chart and these stocks and etfs tend to find rocket fuel on these lines, 10/20/50day mainly on these momo stocks. These are pipelines with rocket fuel, if you zoom in you see some pipeline just pumping rocket fuel, and these lines have been working for line 100 years, if you study leading stocks from early 1900s or mid 1900s or late 1900s or early 2000s or every time period, whatever country, whatever continent of the world, it’s the same thing over and over again, and once you realise that, you will make tens of millions. Well if you do it right, and a bullmarket helps obviously, you only need like a couple of bullruns, if you learn the language of setups, the language of stocks, you only need a few bullruns to make life changing money, heck maybe just one bullrun to make life changing money. The MA stands for magic yep.
  • You don’t know if it’s gonna be a clown bull run until after the fact, I think you should always stick to your sell rules, that’s why you trail 1/3 to 1/2 with the 10day, bc you know in a choppy market the stock may only go 3-5days and then pullback into range and stop me out b/e, and then you will be happy you locked in 1/3 to 1/2 after 3-5days. But if you’re gonna have a really nice bullrun that goes on for months, you’re happy you kept 1/3 to 1/2 and trailed with the 10day, you should stick to your rules no matter what, don’t tinker with the rules. Trust me I tried to tinker with the rules, it doesn’t work, you won’t outsmart the 10/20day, I tried so many times I just haven’t figured out a way to outsmart it, it’s pretty damn impossible. Sometimes you’re lucky and you’re like oh yeah I made the right decision and then the next 5 times you do it you make the wrong decision.
  • Let the market show you [the next theme] you don’t have to look at any predictions or this or that, let the market tell you, the market is always gonna tell you what it’s gonna do in advance, all you have to do is listen, the only thing you have to listen to is the market. The market is gonna show you which stocks are gonna be hot, not some analyst, some talking head on tv, just the market. Your job is to find these stocks showing momo and relative strength etc.
  • You break a rule or do something stupid like lets say you avg down on a stock and then it works and turns around and goes higher and you’re like oh yeah buying the dip worked, then you do it again, and again, and once that bullmarket ends and buying the dip doesn’t work anymore, you’re gonna blow up, and all that money you made, its gone. That’s what happened back in 2007/2008 a lot of traders blew up they just kept buying the dip that never turned around. Same thing 2001/2002, there’s so many stories, if you read trader interviews and stuff like that, people tell about their experience, it’s the same things over and over again, most of them do the same things, same behaviours, that’s why rules are so important as a trader.
  • Here we only rent these stocks, they’re just pieces of paper. If you’re gonna trade you have to be in a trader’s mentality, if you’re gonna invest you have to be in an investor’s mentality, it’s two different types of mindset. Investor you want to be an owner, you want to own a good business, you don’t just want a piece of paper you want to own a good business that you think is gonna perform well. As a trader we don’t care about the business we care about the stock, it’s just something we’re in for a while. It’s two different mindsets and a lot of people mess these things up. I saw someone in the chat yesterday wrote they bought a stock using my breakout method and the stock went higher, and then they read up on the business and now they’re gonna hold the stock forever, idk what to even say to that, it’s just completely the wrong approach. You have to decide what are you, am I a trader or an investor. I like a lot of businesses, there’s a lot of stocks I like and I wouldn’t mind holding them for 5/10years, but if I buy them on a technical breakout, I’m gonna sell when I get a sell signal, I don’t hesitate, bc I know it doesn’t matter how good the underlying business is, the stock could go down 50/70%, doesn’t matter, it could be the best business in the world. The best businesses in the world were down 50/70% back in Feb/Mar2020, and if you’re an investor you’re gonna hold for 5/10years then it doesn’t matter you can buy more on the cheap, but as a trader it’s two completely different things.
  • AMZN went down 95% when the internet bubble deflated, 95% and at the same time it was growing revenues 50/100% per year, it was a great business but the stock went down 95%. This is why I’m so cautious about these things like SNOW, if the speculation money gets turned off this thing goes down 90% it’s not even gonna blink, 200x sales and it’s almost a mcap stock. We get a little bit of multiple contraction in some of these software names, oh man.


  • Candlesticks were created by a Japanese rice trader back in 1500s or something, the guy became pretty rich, made a lot of money, trading rice off candle sticks.
  • The MA stands for magic.
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