My swing trade suddenly became a day trade ... then things got CRAZY...
| | | Lessons from My Recent $100K Profit | ✔️ My swing trade suddenly became a day trade ... then things got CRAZY...✔️ What the 90/10 rule is, and how it applies to trading… | | I've gotta tell you about a recent trade. It made me $100K* ... do I have your attention? Last Monday, there was an IPO (initial public offering) for a small company that makes a type of disinfecting light. I'm primarily a swing trader, but in this case, I actually ended up making a day trade. I didn't plan it that way — but my trades aren't about a specific timeline, they're about following a trend. I had a plan going into the trade based on risk vs. reward … and I stuck to it. When I exited, I was rewarded with a massive profit.* I'm not just telling you this to show off my big, impressive profit.* I want to teach you the rules I followed that resulted in my most profitable trade of the year. There are so many lessons to learn from this trade — let's review. |
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| | | A couple years ago, Roland Wolf took $1,200 and opened an eTrade account. It didn't go well… So, after some big losses, hard lessons, and a lot of studying - he finally figured it out (and just crossed the $1M profit line). |
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This year, IPOs and SPACs (special purpose acquisition companies) have been huge. Any shiny new stock seems to have huge potential in this bull market. So when I saw that Applied UV, Inc. (Nasdaq: AUVI) had its IPO on Monday, August 31, I took notice. The float was low — one million shares, which isn't a lot. Yet over seven million shares traded hands that day. It's basic supply and demand: low supply and high demand drive the price up. So we have a low float stock in a hot market. The icing on the cake? A hot company and sector. | As you know, we're still in the midst of a global pandemic. Germs are being spread. People are getting sick. Right now, any product or service that could eliminate the spread of germs and keep people safe is getting people's attention. We've seen it time and time again this year with testing, vaccines, and mask suppliers. If a company stands to profit due to the pandemic, its stock price could potentially spike. AUVI sells disinfecting light systems that are used in hospitals, hotels, and homes. Does it kill the coronavirus? Nobody made that claim ... but they didn't need to. Traders made that connection all by themselves, and it created a buying frenzy. | |
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Like most IPOs, AUVI started trading a little after the market open. It started trading just after 11:00 a.m. EST … the momentum was insane. The price swung from the $5s to the $7s in a matter of minutes. After dipping a couple of times, it looked like it wanted to stay near the high of the day. I decided it could be a good swing trade. I bought into the second dip at $6.67. My stop was in the mid to high $5s, so I was risking about $1 per share. My profit target was $8-10, so my reward was $2-4. That part's important: I risked $1 per share to make $2-4 per share. The potential reward was much bigger than the potential risk. My position size was 22,500 shares.* But anyone who was prepared could've traded with 100, 500, or even 1000 shares.* It's scalable — the risk vs reward would be the same no matter how big your position. | When I bought AUVI, I was prepared to hold my position for a few days, maybe even weeks — however long it took to let my thesis play out. But the market had other ideas. I bought it at 12:30 p.m. EST. By 2:30 p.m., the stock was soaring! The price had practically doubled from my entry in the $6s, surging past $12.* Since my profit target was $10, there was no point in holding the whole position any longer. I sold half my position for $12.35.* Within a few minutes, the price was dipping but still well above my $10 target. So I sold the rest at $10.47.* In just over two hours, I made over $100K.* Going into the trade, I was anticipating a swing trade. I figured it could take a few days or even a few weeks to reach my profit target or hit my stop. My thesis was sound, but it played out bigger and faster than I possibly could have anticipated. I wasn't going to hold my position longer than I had to. Sure, I'm a swing trader, but in this instance, I was a day trader. I took profits when my target was hit! This was by far my best trade of 2020. I don't get trades like this every day. You shouldn't expect to, either. That brings us to a very important point ... |
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| | | Tim Sykes is a self-made multi-millionaire... He became one by trading one simple penny stock pattern over and over again…
What could you do with a secret weapon like that? | | |
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Sure, it would be great if every trade earned me $100k profit* in two hours. But that's definitely not the way it works. When you enter a trade, you never know what the end result will be. Sometimes you'll have a small win. Other times you'll have a small loss. Once in a blue moon, you get a crazy trade like this. That's where the 90/10 rule comes in. 90% of your trades will be insignificant in the long run. It's mostly small losses and small wins that don't have any real impact on your account. But if you're managing your trades properly, every now and again you might just hit a home run. It's awesome when it happens, but remember: home runs are the exception, not the rule. Don't expect trades like this ... but know that if you're trading according to the rules I teach, a small percentage of your trades could potentially become big winners. | Be Prepared the Next Time the Stars Align If you're always going 'all in' hoping for big profits, you might get lucky every now and again. But you'll probably have some massive losses, too. As a trader, I look for ideal setups. AUVI was an ideal setup. It was a low float stock with great volume. It was in a hot sector, in a hot market. Every now and again, when all the stars align, I nail a big profit. But it's rare — I'm also wrong sometimes. As many as 45% of my trades end with a loss. Big wins like this are great, but on a day-to-day basis, it's a grind. It's about taking small gains and keeping your losses small. A super trade is not about making a big profit — it's about making a plan and sticking to it. Keep your eyes on the prize, Paul Scolardi Editor, Swing Trade Millionaires P.S. Tim Sykes recently had another student pass the $1 million profit mark… And he did it quietly... (Most people don't even know who he is) His name is Roland Wolf… And Tim Sykes interviewed him to see exactly how he did it… So if you want to see how Roland passed $1 million under the radar… You can check out the replay here | | *Results not typical. Paul Scolardi teaches skills others have used to make money. Most who receive free or paid content will make little or no money. Most traders lose money. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services. Past performance in the market is not indicative of future results. | This is for information purposes only as Millionaire Media, LLC is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. We are not a licensed investment professional, and we do not give investment advice. Always consult a licensed investment professional when seeking investment advice. Millionaire Media, LLC cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media, LLC in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media, LLC accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns. | | |
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