Thanks to @801010athlete for his post this weekend about $QCOM Weekly from 1999.
Want to highlight it as well because it has been sitting in my head!
Look closely at that upper wick weekly candle in the early part of that move. The stock was extended by many metrics.
One thing you don't see is many many trims and sells along this rally. A lot of ADDS though as it pulls back and forms new short term bases.
Does that weekly with that upper wick early out of the base remind you of any charts right now?
Do your actions and thoughts even allow you for a potential move of this magnitude over 1 year?
I can't help but think this reminds me of $ARM $DELL $MRVL and many others also.
This exact structure and path is found in many big winners in the stock market. It is an incredible example of what "America's Greatest Opportunities" can provide.
Again though, do any of your actions, thoughts, and strategy even allow for a move like this to be captured? Or would that one weekly candle and short term extension early out of the base prevent you from capitalizing?
Food for thought!
You want to know a secret that changed my mentality around money?
Scenario: April 1st your portfolio was 100k and we went on this magical run where it climbed up to 140k as of yesterdays close. Then a day like today comes along and you happened to get stopped on all your positions and you are now sitting at 130k. Did you lose 7.14% today or is your portfolio up 30% in a month?
Unrealized gains ARE NOT YOURS. They belong to the market! If you want to mitigate volatility, trim into extensions. But if you are going to stress out about every down day as if the money was yours on an open position, you'll never truly be able to scale up comfortably.
Treat every new buy or sell based on it's individual price action. And stop looking at your portfolio value every evening as if the money on open positions belongs to you. Checking portfolio value every 10min only leads to emotional and sloppy execution when you look at the whole and not the individual parts.
If stock A is still acting great then it shouldn't be sold just because you took a small loss on stock B. Exit stock B and continue to let stock A work for its own merits. The minute you start to make emotional decisions because of money is when you ruin your chances at real growth.