What to Do When You’re Too Late for a Hawk Stock
MONEY MONDAY BREAKFAST CLUB
Money Morning Live is kicking off the first trading day of the week in style.
Please join me for another edition of “Money Mondays.”
In today’s show, I do what I do every single day at 10:30 AM – show you which market trends to take advantage of.
Remember, cash flows in the market daily… and if we know how to position ourselves… we can siphon some of this money straight into our wallets.
It’s a beautiful Monday morning to make some money.
Click here and join me live as we kick off another week!
PENNY STOCK HIGHLIGHT
Last Friday, I wrote about an explosive stock, Regen BioPharma Inc (OTCMKTS: RGBP).
Boy did this thing take off… and I have to admit it – I was angry.
Shares were up 23% in the first nine minutes of the morning… just as my email was landing in your inbox.
Traders like us hate taking a loss… but we hate missing opportunities even more.
I already knew a lot of our fellow Penny Hawks might miss this spike.
I woke up early in the morning just to write out my stock thesis for you… and it proved too correct and moved fast. Needless to say, it made me a tiny bit cranky.
You know, it can be tempting to chase a stock when it takes flight like this… especially when it’s just two cents.
But here’s what to do when you’re just a little late on a trade.
A “SHARK WAY” TO BEAT FOMO
You know, one of the best ways to “beat FOMO” is by getting in the company very early.
There’s a reason why every investor dreams of finding a startup with extremely high upside before everyone else.
For example, the past few days we discussed the startup that the People’s Shark – Daymond John – is eyeing.
This startup has an industry-disrupting technology that would propel it to the top of its sector.
Daymond predicts it could grow 2,500% bigger over the next few years… that would turn every $1,000 invested into $25,000.
Well, the sharks better share, because I’m spilling the secret to the Penny Hawks.
Click here for more details on this company.
LET’S GET TECHNICAL
It’s important for us traders to remind ourselves that missing an opportunity is okay… but chasing a stock higher is not.
There’s a reason I give “limit price” recommendations, and we learned it on Friday.
The limit price represents a price just below what I call a “trigger price.” This is the price where my research and chart analysis indicate we’re likely to see a rush of buying (or selling).
The limit price is always set below that trigger price to make sure that we beat the crowd to the rally and participate in the market doing the heavy lifting to push the price towards our target.
When you chase the price above the limit price, you take the risk of being part of the “crowd,” something that I always warn to avoid. You want to be ahead of the crowd, and then sell when it (the crowd) causes a buying frenzy.
If you start buying alongside the crowd… then you risk becoming a bag holder when the stock drops.
But there is a silver lining.
My charts show me another upcycle is on the way. And all we have to do to get in on the second wave is sit on our limit price and wait patiently for the market to shake off this volatile spike.
Patience always pays off.
ACTION TO TAKE
We are keeping the exact same action as last Friday.
Instead of exiting the trade at a specific price, we set the stop at a specific percentage.
In this case, instead of exiting at $0.04… we set a trailing stop of 10%… this way we can chase bigger profits.
For example, if the stock reaches $5… then drops down to $4.50… our 10% stop-loss kicks in and we profit $4.46 more than if we set a hard stop at $0.04.
I will keep you updated with this stock and provide all the latest developments.
Until next time,
Chris Johnson
Comments
August 23 2021
