Small caps are not exactly what they used to be.
When I started nobody read filings, no-one did statistics, no-one worked nights and only a handful pulled big P&Ls.
Nowadays we space is so much more competitive.
Indeed so competitive that you have to step aside during low liquidity periods. What I mean here is that cash is expensive during high interest rates and low liquidity periods(FED QT).
It makes it incredibly hard for the worst companies to raise cash.
The result is that the worst companies in markets are dying off more easily and can not freely raise money which led to gaps and major fade trades in the past.
Now offerings happen with semi decent companies which decreases the amount of good fades all while competition increased and trades are more crowded.
I will be stepping back from small caps until we get the FED pivot which in my view will increase odds drastically.
Until then the focus will remain on mid and big cap swing ideas for 6-7fig P&L target(reason I mention this is for you to understand I wont be actively trading each day, but waiting for my shots a few times per quarter).
I have built my capital up in order to compound to the centi-millions and eventually billion and I don't want to waste my mental capital on a difficult market all while missing time to network, learn more about investing and doing research.
Doughnut trades: you take entry, it goes into profit but you don't take any off, you just lock your stop at entry, then you get tapped for $0.
Popcorn trades: it pops in your favor, you take no profit and you don't lock the stop, then it comes back down and turns into a negative trade.
If you cut the doughnuts and popcorn trades, you will see a dramatic improvement in your consistency.
Profit taking and risk mitigation are HUGE.
Trading...
They call you crazy, but you only face your emotions.
They call you gambler, but you only take calculated risks.
They call you workaholic, but you only work on your financial freedom.
Keep going.
Morgan Stanley strategist Michael Wilson says a rally in tech stocks isn’t sustainable and that the sector will return to new lows https://t.co/pmQq2TSNyE
I went from making $0 a day trading to averaging $3,000 a day.
Throughout my journey there is a lot of things I learned.
In this thread I’ll talk about the reality of becoming a full time day trader:👇
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China cuts US Treasury holdings to lowest level since global financial crisis. And the sales are accelerating.
At the same time China is increasing its gold reserves. #gold