1. A Strong Start: Unveiling My First Position
Embarking on my CAN SLIM investing journey, I experienced an ideal start with my first position on this account. The timing was impeccable, setting the stage for a compelling exploration into the dynamic world of stock trading.
2. Navigating the Peaks and Valleys of Trading
Opening and closing positions strategically in three parts between February 23, 2022, and March 7, 2022, allowed me to navigate the peaks and valleys of the market. This methodical approach laid the foundation for a nuanced understanding of market dynamics.
3. The Art of Profitable Decision-Making
The highlight of this venture was the remarkable average return on investment of 23.8% achieved in just 8 trading days. Delving into the art of profitable decision-making, I set and met profit targets, showcasing the potential of a well-executed trading strategy.
4. Adapting to Market Dynamics
As I observed the chart, I noticed a temporary decline in the stock price, followed by a robust upward trend. The pivotal question arose: Why did I choose to sell during this apparent upward momentum?
5. Rule Modification and O’Neil’s Influence
The answer lies in the simple fact that I had reached my profit target. Post this experience, I decided to refine my trading rules, drawing inspiration from O’Neil’s influential book. The new rule stipulated holding a stock for at least 8 weeks if its price rose by at least 20% in the first three weeks after purchase—an adjustment that aligned with proven strategies.
6. The 8-Week Dilemma: Analyzing the What-Ifs
Contemplating the ‘what-ifs,’ I pondered on the hypothetical scenario of holding the stock for 8 weeks. With a selling price of 97.13, the potential gain could have been approximately $10 higher, reaching around $106. Exploring these possibilities adds depth to the learning experience.
7. Embracing Volatility: The Unregrettable Decision
Despite the opportunity cost of leaving $10 on the table, the decision to sell proved unregrettable. Analyzing the chart’s right side reveals increased volatility, reinforcing the notion that CAN SLIM investing isn’t about collecting every dime but strategically playing the probabilities while minimizing risks—a testament to the importance of discipline.
8. Discipline in CAN SLIM Investing
Discipline emerges as a cornerstone in CAN SLIM investing. This episode underscores the need to adhere to core principles, emphasizing the art of calculated risk-taking and disciplined decision-making.
9. The Challenge of Letting Go
One of the greatest challenges for individual investors is the emotional hurdle of letting go. I reflect on the psychological aspects and personal growth associated with releasing a position for the sake of strategic alignment.
10. Ego vs. Trading Realities
The perennial battle between ego and trading realities surfaces. The urge to prove oneself right competes with the sobering reality that taking a loss doesn’t necessarily equate to being wrong. Balancing these conflicting forces is a key aspect of successful trading.
11. The Irrelevance of Right or Wrong
In the grand scheme of trading, the dichotomy of right or wrong fades into insignificance. What truly matters is the ability to follow a well-defined trading plan, allowing for adaptability and continuous improvement.
12. Learning from Mistakes: A Key to Success
Concluding this insightful journey, I emphasize the paramount importance of learning from mistakes. Pinpointing errors and evolving as a trader are integral steps toward sustained success in the ever-evolving landscape of investing and trading.
