Being Too Patient With Winning Stocks!

Today I ended with a 1% gain but sacrificed a 10% gain by being too patient with a stock. Some people would be happy with a 1% gain but when you know you could've made more it makes you feel uneasy. Everyday when I trade I always ask myself how can I improve today. What I learned is that it's ok to take profits you don't have to max out every trade.

Going forward I'm gong to start having my trade exits planned before I place my trade. When I place my trades I will always set me stop loss immediately. As the my trade passes 2% I will adjust my stop loss to break even. Once the trade passes 5% I will adjust my stop loss to 2%. Once it passes 5% I will adjust my stop loss to 5% but if it's moving fast I will do a trailing stop so worst case scenario I would generate a 4% gain if the stock turns around on me with my trailing stop loss or I take 5% if I get stopped out with a regular stop loss.

I learned that pre-market data is powerful. I've been tracking this for the past two months and it's been pretty consistent. The only issue with pre-market data a lot of website doesn't show the data in real time. Robinhood has a feature where you can see real time pre-market data. So to help improve your odds of finding a successful stock for the day check out the premarket data from 7:30am to 8am so you can analyze the movement up or down of the stocks. From my analysis I've identified that if a stock over a $1 in the premarket is up trending more than likely the stock will continue up trending in the open market. To confirm your idea simply set a limit order higher than the ending price. By setting your buy limit order higher it will give you more room to confirm your idea instead of doing a market order.

My conclusion for the day is be patient with your winners but no too patient because you can cut your gains signicantly by being too patient. Make sure to plan ahead so you can be prepared for these stocks big moves.