"I don't chase big winners when it's most tempting." Nate Bear, Lead Technical Tactician, Monument Traders Alliance The market was on shaky ground yesterday after Goldman Sachs CEO David Solomon said the Fed is unlikely to cut rates this year. To make matters worse, the FOMC minutes indicated worries over the lack of progress on inflation. A deeper sell-off was possible if tech's biggest name posted a disappointing earnings report. But they didn't disappoint. Naturally, the market was giddy, with several stocks up big in the pre-market. But as soon as the opening bell rang, we witnessed non-stop selling for the session's first hour. AMD went from $173 to down to $160.39. It was a messy morning… So, what did I tell my Daily Profits Live Room? First, the market was weak, which should be your guide when picking individual stocks. So, despite the early morning massive sell-off in tech stocks, I told them that now isn't the time to play hero ball and buy the dip. Of course, wanting to chase the big earnings winner was very tempting. However, that's not how I trade earnings winners. And that's not how I turned $37K into $2.7 million in trading profits in just four years. In fact, I have no intention of trading any day-one earnings winners. |
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