introduction
In the world of stock picking, there’s a fine line between being a visionary investor and just another person throwing money into the wind, hoping for a miracle. As I’ve navigated the tumultuous seas of the stock market, I’ve had my share of wins, losses, and those “what was I thinking?” moments. Let’s dive into the heart of stock picking and the crucial adjustment needed to not just survive but thrive in this game.
The Early Bird Gets the Worm… And the Profits
First off, let’s talk timing. If I’ve learned anything, it’s that getting in on a stock early is like finding a secret door in a video game that leads to untold treasures. It’s not just about the profits, though those are nice. It’s about the thrill of discovery.
- Why Early Matters:Jumping on stock in its nascent stages is akin to betting on a rookie athlete who shows promise of becoming a world champion. The growth potential isn’t just substantial—it’s exponential.
The Late Stage Conundrum
Reflecting on my journey, I realize I’ve often boarded the stock train just a tad too late. Yes, investing in AMZN when it was already a household name seemed safe, but safe doesn’t always mean lucrative.
- The Drawbacks of Being Fashionably Late:
- Increased Risk: Like deciding to learn to skateboard in your 30s. It’s possible, but you’re going to feel those falls a lot more.
- Diminished Returns: Similar to arriving at a buffet just as they’re packing up. Sure, there’s food, but the prime choices are gone.
A Tale of Caution and Optimism
This journey has taught me invaluable lessons, not just about stock picking, but about patience, timing, and the courage to trust my instincts.
- Embrace the Early Stage:Finding those under-the-radar stocks requires diligence, research, and sometimes, a bit of luck. It’s about being part of a story from the beginning, not just a spectator as it unfolds.
Learning from Missed Opportunities
Looking back, I see missed opportunities not as failures, but as lessons. They’ve taught me to be more agile, to question the status quo, and to recognize the potential in the unlikeliest of places.
- Missed Opportunities as Lessons:
- Every missed chance is a lesson in market dynamics, timing, and the importance of doing your homework.
The Strategy for Success
So, what’s the game plan moving forward? It involves being proactive, staying informed, and never underestimating the value of timing.
- Be Proactive, Not Reactive:
- Stay ahead of trends, and don’t be afraid to take calculated risks on emerging stocks.
- Continuous learning and adaptation are key. The market evolves, and so should your strategies.
details at a glance
opening
- Underlying: AMZN
- Date of Trade: 10 Jan 2024
- Underlying Price at Open: $153.40
- Stop Loss: $144.20
- Profit Target: $184.08
- Market Outlook: Confirmed uptrend
- RS Rating: 92
- Position Risk, %: 5.96
- Position Risk to NL, %: 0.42
- Potential Profit (position), %: 19.87
- Risk to Reward Ratio: 0.30
- Position Size, %: 7.06
- Reason for Opening the Trade: Price was in the base and broke above EMA-21. Strategy based on CAN SLIM, EMA 21.
- Assessment of Ideal Buy Conditions: No, it was not an ideal buy because the volume wasn’t high enough.
closing
- Follow-up Date: 30 Jan 2024
- Price at Close: $160.85
- Market Outlook at Close: Confirmed uptrend
- RS Rating at Close: 91
- RS Change: -1
- Remarks: Sold the position because the earnings release was 2 days away, the profit cushion was less than 5%, and the stock was slightly down for the day.
results
- Position ROI, %: 3.53
- Position ROI (portfolio), %: 0.25
- Position Open Time (trading days): 13
- Position Open Time (days): 20
- What Went Well: Decisive selling action was taken according to the plan.
- Cause of Error/Improvement Needed: The stock was bought in a late stage of the trend, indicating a need to refine stock selection strategies.
- Lessons Learned: The importance of controlling what can be controlled, such as decisions and actions according to the plan, rather than market movements. Acknowledgment that selling early was the right decision in hindsight due to the unpredictability of the earnings release.
Wrapping It Up with a Bow
In conclusion, mastering stock picking is as much an art as it is a science. It’s about understanding the market’s rhythms, recognizing the potential early on, and learning from every step of the journey. The main thing to fix in your stock-picking strategy? It’s timing. By focusing on early-stage investments, you not only maximize your potential for astronomical gains but also become an integral part of the growth story.
Here’s to the future of investing, where we not only chase profits but also become pioneers on the frontier of financial growth. To all my fellow investors, may your decisions be bold, your timing impeccable, and your portfolios ever-expanding. Cheers to the adventure ahead!
