I Forced a Trade…Should Have Been Patient
BLRX hadn’t been on Jason’s Watch List since 4/16, suggesting the stock was no longer in play for him, but I decided to enter the trade yet again, purchasing 498 shares at $2.11. I held these shares for much too long from 4/22 – 5/8, and ended up selling my position at $2.01 for a $49.82 loss. This stock moved up and down slightly but never made the move into the $2.30’s like I was hoping, and I just couldn’t let it fall below $2 again. Overall, the portfolio is +$7.43 so far.
Most Important Lessons Learned:
In my eyes, there are always lessons to be learned when you lose on trades, and Jason shares this sentiment with me as well. In his teachings, he never hides from his losses. He remembers them, learns from them, and tries to avoid his past mistakes in the future. So here are my notes from this trade reflecting on some of my biggest mistakes:
I Completely Forced the Trade: 4 trading days went by without BLRX showing up on Jason’s Daily Watch List, suggesting it was no longer on his radar, but I still decided to take another crack at it. Thanks to my decision to force the issue on BLRX again, I missed many other high-potential opportunities. While I was holding BLRX waiting for a move into the $2.30’s, Jason was scouting the likes of GEVO, which popped up on his watch list on 4/22, 4/27, 4/30, 5/6, and 5/7. This is Jason Bond’s “stalker method” at its finest and he completely nailed it. Here it is right off the Daily Watch List:
On 5/7, GEVO dropped big news concerning a strategic alliance agreement with Alaska Airlines just like Jason predicted, causing the stock to surge over 150% inside the day! It hit it’s peak at $6.69 per share on the morning of 5/8. This could’ve been an outstanding trade for my small $1,000 account had I been patient, but I chose to force the issue on BLRX again. Unfortunately with such a small account, I need to pick my spots better in the future because I don’t have the luxury of being able to split up my portfolio and take advantage of multiple opportunities at once.
I Held My Position Much Too Long: I held my BLRX position for 12 trading days, which is much longer than the ideal 1-4 day holds Jason preaches. Swing trading isn’t about fundamentals or long-term growth potential, it’s about short term momentum driven by a strong catalyst. As soon as I got in the trade and the price action wasn’t cooperating like I wanted, I should’ve sold my position even and moved on to the next opportunity. If I simply did this, who knows, maybe I would’ve caught the 150% GEVO move on 5/7. It’s like Jason always says: “1-4 day holds. 5-10% gains, rinse and repeat. Selling positive is better than even & even is better than negative. Lock up gains and pay yourself. Never marry the stock – buy the story, ride the momentum, and sell into strength. If a stock doesn’t deliver within a few days, cut it loose and move on to the next great opportunity”.
I’m Still Confident in My Goal of 40% in 90 Days:
Although this trade didn’t deliver like I’d hoped, I’m still confident I will hit my goal of $400 within 90 days. I will continue to study Jason’s material and review his Daily Watch Lists, and I believe the results of these efforts will pay off handsomely in the end. So far this year, Jason’s portfolio is +114% ($106,698) and there’s no reason why I shouldn’t be able to capture just a fraction of these gains alongside him within the next 2+ months.
If you want to start studying & practicing a fairly simple swing trading strategy from the best educator there is on Wall Street, then I suggest following Jason Bond’s Free Stock Alerts. You can paper trade as you follow his alerts in order to get a feel for his alerts and reduce risk. After a few short weeks, you may already be able to pay for the subscription cost and receive even more perks.
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Written by Matthew Thomas