Newsletter Sent 6/5/10
Dear Trader,
Here is the plan - click to view: Sunday Night 8PM EST
Why are we going back to basics? I had 3 members cancel this week that when I asked if they had any feedback or suggestions they replied - “I lost on ABC and XYZ and I’m still holding, not sure if I should sell or hold” and they were all trashy stocks even after I specifically warned on one of them in chat “They are selling huge, be very careful this is not one to hold.”
The difference here is we are not your typical bag holding chat room or message board. We trade the stocks, we don’t marry them. If you can’t break that bad habit of holding them… then you’re not going to be successful in the chat room.
We all trade for a living, we’re here to help you make money and stop sinking it into “investments” and “hot stock picks” - we’re here to help you trade them.
Losses are part of the game. I take losses and I encourage you guys to. The reason I always go over in seminar where I’d take a loss is to a) drill the importance of taking losses into your head and b) get you in the mindset that “hey I was wrong, I probably shouldn’t be in this stock”
The worst part is I get into PM battles about how the .01 stock COULD get FDA approval or … They have the BEST TECHNOLOGY etc when they’ve been averaging down for months and months and months…
WE ALL STARTED THIS WAY - I STARTED THIS WAY and lost lost lost lost for 3-6 months before I realized that OTCBB and Pinks are not investments.
When I started I knew I was a good trader because the stocks I traded I DID make money overall but the reason I LOST was I kept putting it into my bag holds, shoving money down the rat hole … like many of the people I private message with who try to rationalize why whatever POS is hot this week is going to $1.00.
So long story short - the point of the email is to go over something very simple in seminar and then review how we trade again, what tools we use and what your mindset should be while trading.
You need to stop INVESTING and thinking you are going to be the next millionaire because you own 500k of a .01 stock. It’s happened twice maybe three times in the 7 years I’ve been trading and I can name each one. VRMLQ –> VRML … SPEA —> CKXE now … and SPNG which turned out to be a scam anyway.
That’s enough for now… !
What I want to do Sunday is show chart set ups, show what we are looking for and show the highest probability breakouts and/or shorts.
Sound good?
See you Sunday.
