@CTUCyberGroup Lesson: NO OVER NIGHTS!!! #CTU
So far we’ve started the week off real strong in the CyberGroup Room. Today we had some power house stocks making us some big money! $WAVX was a great winner along with $NQ, the $ARWR short and what I want to talk about today is our $TKMR short.
I just finished the second lesson in my Phase 2 class, and the topic that we ended on was NO OVER NIGHTS. For my students I told them of a friend of mine that use to trade beside me and exactly what happened to him. It’s full of broken cardinal rules and at the end it’s the perfect imagery of why we do not do these things. Now some of you reading this might be thinking, but why shouldn’t I swing trade. This is far from what I’m talking about. The reason behind a huge percentage of people holding their position over night is because they are afraid to take a loser. Instead of controlling this loser they hold the stock and pray. Take a look at this chart of $TKMR. If you were to have been wrong and took this stock long yesterday morning, you would have been down around $3.50 at the end of the day. Unfortunately instead of taking, what already is a huge loss, people will hold onto it and hope for it to come back. Today’s chart is a perfect example of why you don’t want to do this.
$TKMR opened today and dropped another $3.50! That’s a total of $7 over two days! Swing trading is a great way to create profits, but only when it fits the criteria of a swing trade. When you hold onto a loser overnight because the fear of taking a loss, 9 times out of 10 it’s going to backfire on you. Teach yourself to control your losses so this way you won’t end up being the trader in the story I use to teach my students!