Below are a few of the biggest losers I bought and where I stopped out before the carnage. These charts highlight two things:
1. I have in the past bought stocks that went to zero (and I and you will buy many more).
2. I never hold stocks that go to zero (I cut ALL losing trades short of double-digit losses).
In the stock market there's a simple truth. If you are not willing to accept small losses, you will take big losses. That's my guarantee! Without the use of a stop loss, you will get caught holding stocks like this... it's just a matter of time. The key is to go where there's big potential upside, and cut off the downside. This is how you create asymmetric leverage (an edge), and it's precisely what I built my personal fortune on over a 41-year career. Best wishes!
This morning I officially closed out my $IBIT position nailing down a 52% profit. I know I posted that I had no intention of selling my back end shares after de risking the trade with partial profits. But I'm taking the money and running like a chicken. Yes, guilty as charged... I love to hear the cash register ring and I hate volatility. Yesterday's big swing and today's gap back up essentially made my decision for me. I will be looking to re enter on a pullback or new setup, maybe sooner than later.
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