Feb. 8 at 2:09 PM
$AAPL $MSFT $NVDA $AMZN $NFLX
Below is a post I made this morning on our Discord server entitled:
"MAKING BIG MONEY"
I thought I would also post it here in case it could help anyone interested in learning how to become a more advanced trader.
Here is the post:
I am in the process of re-reading "Reminiscences of a Stock Operator."
The version I am currently reading also has editor's notes to make sure the reader doesn't miss the big ideas.
Here is an editor's note regarding the chapter I just finished:
"This chapter marks the birth of his lifelong trading philosophy. It is here that he learns to distinguish between the noise of day-to-day fluctuations and the powerful music of the primary trend. He learns to trade for the "big
swing," to have the conviction to take a substantial position when his analysis of general conditions is favorable, and then to have the "intelligent patience to sit tight." The speculator's job is not to catch every wiggle, not to buy at the absolute bottom or sell at the exact topâthose are the "most expensive eighths in the world." His job is to correctly identify the market's character and then ride it until the character changes. This is the hardest lesson to learn, but once mastered, it is what makes a man truly rich."
To that end, I want to share some charts that broke out from their bases during the recent primary trend higher in the markets. I am posting these because I have begun to talk about base patterns in our weekly calls and I wanted you to see some examples of stocks that made serious moves after breaking out of their bases.
I have attached 27 charts. When you view them I want you to ask yourself the following three questions:
1) Do I have the mental fortitude to buy a stock when it is making a new high or does my mind try to tell me "It's too expensive, find something cheaper."
2) Do you have the self-discipline to sit through the inevitable ebbs and flows of a move higher without losing your stake in the position. That is, can you "sit tight" and ride the primary trend even though the stock will have natural pullbacks that is part of the process as it moves higher in the primary trend.
3) Do you have the mental strength to ADD to a winning position when the market gives you confirmation that your thesis was correct or do you only typically add to positions that move against you to "average down"?
Again, attached are 27 charts for your perusal [The charts were posted on Discord]. Think of have much money you could have made if you had identified the primary trend and had the self-mastery to sit tight through the entire structural move instead of trying to trade every tick of almost every stock you read about on message boards.
For those interested, the charts were of the following stocks:
AMCR, AEIS, AIR, ASX, ATRO, AUGO, CAMT, CENX, ERO, FORM, FTAI, GILD, GILT, GLW, KRMN, MKSI, MOD, MTSI, MU, NVMI, PAAS, PACS, SNDK, TTMI, VIAV, VICR, XPO
Best,
DC77
