You don’t know, you never know. If you did know which ticker will rip tomorrow you wouldn’t be a trader. You would be a Christina Aguilera, she is the original genie in a bottle, baby! So how do you know which tickers to get in for the rip?
This is the biggest secrets revealed episode on earth. No knows which ticker will rip or tank. Instead they feed you lies and tell you they somehow knew that volume was going to come in. Volume precedes price, yes, but what precedes volume? LOL. How can anyone on earth tell you who is going to buy next and when. The point is this, if you see a trade you like and you think it will go up, enter the trade with a reasonable about of risk with a stop loss that fits your trading plan and portfolio and see what happens. That is all you can do. After you take an entry, you can only wait.
So each morning 5 tickers run and you never get seem to get in any of them. The reason is this, you are picking and choosing which tickers will run and predicting the outcome of the stock market which is something you simply cannot do. If you see a bunch of tickers running, you are to take an entry at support or over the break of resistance with a stop loss on the ones you have time to trade and catch. If you are wrong, you take a minimal loss and if you are right you try to maximize your gain by holding as long as you can. I know this is easier said than done.
Again, if you missed the point I am trying to tell you, it is this. The stop loss will save you from being homeless and going broke. Of course, being able to use a mental or hard stop loss consistently is a very difficult habit to master. It requires mental amplitude, insane discipline, being machine-like. Here is the last lesson, if you take too big of a position you will be stressed when the market doesn’t go your way and you won’t be able to stop out because you are in shock. I know right? So if you want to safely stop out of trades you need to get into a trade with the correct position size, one you are comfortable with.
Sometimes I think, if life gave me a chance to use a stop loss on things I thought was risky would I use it? And if I did use it, how successful would I be in life?