When I was in high school and college going late to parties was the cool thing to do. However, I try to never be late when it comes to my trading.
You see, trading stocks is risky. That’s a good thing, because if there wasn’t any risk, I wouldn’t have been able to bring back the types of returns I did last month (nearly $50K in trading profits). That said, most traders wait to long for “confirmation.”
However, if you want to get paid as being a stock trader you’ll have to buy rumors and sell into news. Because if you wait too long… you’ll get caught in situation like many traders did today.
And if you want to stay in this game for the long-term, remember this: Only suckers chase big gap ups and gap downs.
Just ask yourself, “Why would you buy something a few percent higher if you could’ve bought it for cheaper?”
It doesn’t sound like a brilliant idea once you say it out loud.
Beginner traders are often scared to pull the trigger. They’re scared of taking an overnight position, thinking, “What if I wake up and the next thing I know the market is gapping down?”
Well, millionaire traders don’t let fear run their minds.
Rather than buy stocks on the open with the market gapping up higher today…I was taking profits off the table.
That’s right… I was selling into strength.
I kicked off the month right, locking in $12,787 and ready to dominate December.
It only took me about 5 minutes on Friday and 5 minutes today to execute…
With just 10 minutes of work, I was able to pull in these results.
Now, how was I able to figure out that small-cap stocks would have such a massive gap up?
Well, I looked at charts and catalysts.
Just looking at this chart of the iShares Russell 2000 ETF (IWM), I realized it was a high probability set up.
How did this trade come into fruition?
Well, on Friday between 3 – 4 PM EST, I loaded 100% of my portfolio into small cap stocks anticipating there would be a big gap up.
The market started ripping Friday afternoon…initially, I didn’t think I was going to take any shots going into Monday. However, I couldn’t ignore the bullish price action and my go-to indicators were saying.
Additionally, over the years, I’ve found that many small-cap companies release good news on Mondays, so having a basket full of these could be a great way to kick off the week.
Well, it paid off handsomely.
Next time you hear good or bad news, ask yourself, has the market priced in this news or not.
The diary of a real $ trader,