One of the most underrated skills in trading is knowing when to press it…and when to lay off the gas.
This skill has allowed me to stay consistently profitable…year-after-year.
However, most traders struggle to grasp this vital concept. And because of that, they tend to leave money on the table…or even worse…wipe away gains and accumulate losses…when they should be sitting on their hands.
As my student, I don’t want you to be one of those traders.
That’s why I’m going to explain to you the “tells” I use to determine when it’s time to get aggressive or sit on my hands.
Table of Contents
Adapting To The Market
Nobody likes change, I get it…
But if you are narrow-minded and are only focusing on fundamentals…
And unwilling to adapt to what patterns are working…
You’re going to miss out on some of the hottest stocks in the market.
What could’ve worked at one point in time may not always work the next…
And right now, we are starting to see the market heat up, so I am looking to become a little more aggressive with my trades.
You can see my latest training video here
At the start of the year, I was a little reserved with the size of my trades…
Simply because the market wasn’t doing what I expected.
But then, just the other week, I started to notice solid play after solid play…
Just because we are starting to see things heat up doesn’t mean to go full throttle with your trades…
Instead, here is what you need to do!
Focus On Position Size
You don’t necessarily need a large position size to make more money.
In fact, I’ve taken a small position size on some of my biggest winners this year!
I’ve had a 72.41% gain, 60.89%, 38.18%, and more!
You can see all of my trades right here
A lot of these trades came thanks to StocksToTrade Breaking News…
But I didn’t risk 75% of my portfolio just because things are heating up.
Instead, I increased it just ever so slightly because I’ve seen the impact these news catalysts have had on these stocks over the last few weeks.
But it’s important to remember not every trade will work 100% of the time.
Just imagine if you thought this was a perfect dip-buying opportunity…
And you risked a lot more than you usually would…
Fritzy Tech Inc. (OTC: FRFR)
There was a perfect dip buying opportunity early on…
But the thing with these promoted stocks, they will eventually collapse…
We also saw this with Cloudweb, Inc. (OTC: CLOW)
So it’s important to remember that all of these plays end the same…
Even in a hot market, being too aggressive can be crippling.
Stay disciplined and understand how to manage your risk.
More Breaking News
- Archer Aviation: Is the New Investment Wave a Signal for Growth or Volatility?
- Hecla Mining’s Stock Surge Amid Leadership Changes: Path to Growth or Temporary Spike?
- JetBlue Airways Faces Turbulent Times: Will It Affect Your Portfolio?
Because even if you risk the same amount, there is a way to increase your profits by recognizing plays like this…
Using The News
Let’s face it, StocksToTrade Breaking News has been on FIRE!
With news play after news play, I couldn’t keep up with them all.
Right now we are seeing company after company going after illegal short sellers…
And with this news coming out, we are seeing a lot of massive spikes.
Here is Genius Group Limited (NASDAQ: GNS)
And it’s nothing other than a massive short squeeze!
Short Squeezes + Breaking News = Potential Supernovas
Short squeezes can be great if you are on the right side of them…
And if you are shorting them, you may end up like this guy…
SAD BREAKING NEWS: Michael Burry has again deleted his account after tweeting the word “Sell.” yesterday. This is EXACTLY why I work about short sellers, they're not mentally stable & when you get massive $DIA $SPY $QQQ $META $TSLA runups they just can't handle it. It's very sad pic.twitter.com/Czz3sZN725
— Timothy Sykes (@timothysykes) February 1, 2023
Eventually, shorts will be right, but it’s like you’re trying to catch a falling knife…
That’s why I don’t short, and when the market is this hot…
I usually tend to stick with what works…
Breaking News Plays are giving a lot of traders some of the best opportunities we haven’t seen in a while…
So even with a small trading account…
Traders are able to capitalize on these big percent movers in the last few weeks.
But with a lot of these stocks spiking from short squeezes, or from the news…
This is going to potentially be your next play…
Plan For This Pattern
This is one of my favorite patterns, and in fact, for some of these recent runners, I am sitting on the sidelines waiting for that perfect panic…
Take a look at my exit comments…
With any strategy, it’s important to recognize what’s happening with the majority of trades.
Do they keep on running for multiple days and have slight panics…
Or do they just completely puke like National Asset Recovery Corp. (OTC: REPO)
Always follow my #1 rule and don’t chase what isn’t working…
Right now we are seeing a lot of stocks spike, so as I am a little bit more aggressive in my long positions…
But for dip buying opportunities, we aren’t getting the bounces we once did…
So I will continue to adjust my strategy and keep a close on many of these recent runners…
Looking for that morning panic of 10%, 20%, or more of its highs…
And if we get a panic that doesn’t bounce…
I’m exiting quickly!
Next Steps
I will continue to slightly increase my position size if the market gets hotter…
But I don’t like to increase my risk too much because nothing is ever perfect.
Even with the market as hot as it is, I am still locking in quick gains…
And I am starting to see that a lot of these stocks are spiking quickly…
Then fading just as fast.
Be sure you adapt to the plays the market gives us…
And right now things are spiking, so keep an eye out for those early morning movers.
So study hard as things are getting really exciting!
Until next time…
-Tim
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