Last week we saw several stocks continue to heat up due to the overall strengthening of the market…
Just take a look at the SPDR Dow Jones Industrial Average ETF Trust (DIA)
Despite the solid run-up we have had over the last few weeks, I haven’t been as aggressive as I wanted to be…
But I am ok with that because it’s all about understanding the process and recognizing these patterns.
Remember, small profits continue to add up and over the last 30 days, I have been able to profit $6,400!
We have seen a lot of multiday runners and stocks breaking through key resistance levels over the last few weeks…
Which ultimately sets us up for one of my favorite patterns, the morning dip-buy.
Remaining disciplined and knowing how to spot these opportunities is going to be crucial over the next few weeks…
As I expect the January Effect to start ramping up, here is what you should start preparing for in the coming weeks!
Stay Disciplined
No matter how long you have been trading, you will make mistakes…
We are all human, and we all make mistakes at some point in our lives.
Just think about it, how many times have you made a mistake in your life?
The same thing applies to trading, you will eventually make a mistake…
But you need to be aware that any mistake you make while trading could cost you money.
Let’s say that you wanted to hold onto a stock thinking it’s going to bounce back…
And all it does is go down more and more…
Next, you know you just lost the majority of your trading account by holding and hoping.
That’s not trading, that’s just hoping you get lucky with every trade you make.
You have to accept the fact we will all make mistakes and it’s crucial that we learn from them.
Last week I made a mistake and realized missing opportunities like these is something I should never miss again…
So what I did was make sure I was prepared for the next opportunity that came my way.
Don’t Miss These Perfect Setups
When you have these multiday runners, they could offer you some amazing opportunities.
Last week I traveled to the west coast and I was tired, so I didn’t wake up in time for the opening bell.
When you know about these perfect runners as we have had over the last several days, you need to wake up!
There was no excuse for me missing this perfect setup.
I am not going to let this missed opportunity let me down, or become frustrated about missing it…
Instead, I learned from that mistake and I was going to be sure that I wasn’t going to miss the next opportunity.
Over the last few weeks, we have seen Meta Materials Inc. (OTC: MMTLP) have a nice run.
But when you have a runner like this, you have to expect the stock is going to have a panic, eventually…
As the stock broke through another resistance level, it started to panic when it hit its highs…
And that was the opportunity I missed.
Here you can see the stock nearly dropped from $12.00 a share to just below $11.00 a share, and bounced back up over $12.00.
These are the panics that you want to look for…
And after missing this opportunity, I knew there were others out there and it was just a matter of time before they panicked.
Over the last several days, I have talked about Cloudweb, Inc. (OTC: CLOW)
CLOW has had an impressive multiday run, and it continues to trend upwards…
But we have noticed a few morning panics along the way, but it has continued to close strong at the end of the day.
Above you saw the morning panic I missed from MMTLP, but a day later, I was prepared and was watching CLOW and was hoping for it to panic…
And boy it did!
More Breaking News
- KULR Technology’s Soaring Momentum: What’s Really Driving This Uptrend?
- Applied Digital Gains Momentum Amid Key Developments: Should Investors Make A Move?
- Vistra’s Ambitious More: How Recent Developments Could Shape Its Market Trajectory
I was able to dip buy this off its bounce and profit 12.31% from this trade.
Moving Forward
We all had a moment in our lives where we had to put things behind us and look ahead to the future.
I did just that with the trade I missed and looked for the next opportunity instead of dwelling on the past.
At the end of the day, we all want to make money…
So it’s important to find these opportunities, take quick profits, and cut losses as soon as possible if things don’t work out as planned.
I want everyone to study this pattern and everything leading up to it that made this a perfect morning panic.
It doesn’t matter how old the trade is, it all boils down to being able to recognize these plays before they happen and to be ready.
Study up!
Cheers,
Tim
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