Let Your Winners Run
I wrote an article a few weeks back essentially describing my comfort with taking losses in a trade when proven wrong.
I made the argument that you can take a loss quite often and still have a net positive by ensuring your “winners outweigh your losers”.
It didn’t dawn on me that while the concept of winners overshadowing losses might be easy to conceptualize; the “how” might not be so easy.
(Beginning stage of the pump)
This is where the orchestrators of the pump accumulate the stock. The accumulation time varies but it’s usually a few days to a few weeks. It’s virtually easy to detect when the accumulation is occurring by looking at the company’s chart. If you pull up the volume (as shown in this real life example), there is an instant spike in volume. The stock virtually goes from dormant to active overnight. This is where the beginners of the pump “buy-in”. Notice, while there is a spike in volume; the range of the stock doesn’t go far. This is purposeful. You want to buy up in huge quantities without spiking the price too much.
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