This morning one of the worlds greatest stock promoters (or potentially former great promoters) released MULI as their alert. This promoter hasn’t released many promotions in recent months and their last couple haven’t been too great so I went into it not expecting much. Today I bought 30,000 shares at $.60. I wasn’t expecting to hold for long, but certainly didn’t think it was only going to be 1.5 minutes. I sold 20,000 shares at $.66. I held onto the remaining 10,000 shares just in case the momentum continued but it did not and I ended up being stopped out break even at $.60 a few minutes later. My profit on the trade was $1200 which isn’t horrible, but for the position size that I took, and the level of risk that I accepted, I really should have made $5k on this trade. Trading is all about risk per unit of return.
Right as I stopped out of the trade MULI plummeted down to $.37. This goes to show you why you have to be so careful with these type of stocks. Yes the stock rebounded and actually closed up 18.87% on the day at $.63 but the fact is I don’t gamble and I don’t guess. When to enter, taking profits and cutting losses are one of the only things that traders have control over. Nobody has any idea what actually is going to happen besides the promoters and the dirty market makers. Trading successfully is about positioning yourself correctly at the right time and having a plan of action that you follow religiously. If you lack discipline trading is not for you.
The promoters released this stock to all there lists after the close so I am expecting a gap up tomorrow. I would never blindly buy a gap up because gaps usually fill and after a gap fill you never know if a stock will rebound or continue to drop so you have to be careful. If MULI gaps down it may give a nice trade.
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