Starting off in the Market - A Retailer's Journey
Rewind back to the beginning of 2020 when I had 2 international business trips planned and at least 1 leisure trip to look forward to. Of course come March, that all changed.
I had a lot of free time and was glued to the news. Then the March bottom hit and stocks started to rebound.
That’s when I took a Udemy course on trading and started learning the basics. After that I started intermediate courses & honestly I didn’t finish that. I was trading and making money by then.
I always had a passion to trade since Boiler Room, except more transparent & less manipulative. I was offering unsolicited advice to anyone who would listen. It was exciting.
Soon after I started making bad trades and being impatient with blue chip stocks. Lost a lot (relatively) with option calls and puts. Which was humbling.
That’s when I changed my strategy for the first time. Despite all the bear hit pieces bemoaning the valuation, I invested more in TSLA.
“If the major finance news picks up a stock it’s either too late or you should wait for it to cool off.”
If You're Reading This Then It's Too Late
If the major finance news picks up a hot new stock it’s either too late or you should wait for it to cool off. This would be advice that proved right a majority of the time.
Psychology plays such a huge role in trading. As a person who hated missing gatherings with friends when I was younger or limited time sales, the fear of missing out, aka FOMO, was all too real.
Now, if the news is talking about it then I started to watch it run and strategized my exit strategy to take profits.
I had to be more disciplined. Sell on a 3-4 day run up because the major players, institutional money, is going to take profits. As large as we now say retailers are, institutional money are the big boys.