Yesterday morning started off great.
I followed targeted stocks that were breaking the VWAP, and made a killing.
Our two of trades Bed Bath and Beyond (BBBY) and AMC Entertainment (AMC) put me up $600 on the day.
And let me tell you, if you’re up $600, no matter who you are, you’re sitting pretty. Do that every day of the week and that’s $3000 in your pocket.
And that’s where the greed set in.
I felt unstoppable and blew up my day trying to swing trade on momentum stocks.
And I didn’t stop until I was down $100 for the day.
What should have happened was that I should have stopped after the first bad trade – pack it up for the day and enjoy the multi hundred-dollar cash out.
FOMO set in, I went away from the VWAP trades that booked me $600, and I went in for swing trading.
And you know how many worked out?
0 of them. Squadoosh.
So what can we learn from this…
First off, and most importantly, don’t get caught up in the fear of missing out.
It’s incredibly likely that you will do what I did today and buy at the top while someone at the bottom is selling the stock to you and getting the heck out with a nice profit.
Next thing to never do is swing trade.
It’s gambling. Plain and simple.
As I’ve said, a failed VWAP trader is a swing trader.
And a failed swing trader is an investor.
Don’t be either of these. Because with the VWAP and me guiding you through trades, you’ll be able to guarantee profits on any stock out there.
Finally, and I can’t emphasize this enough, stop while you’re ahead.
When I took my first bad swing trade, I should have stopped right there yesterday.
You can get into a mindset that’s extremely toxic if you’re trying to make up the losses or are trading on tilt.
And if you’re like me, you’ll turn a $600 profit day into a net-loss.
Don’t be like me, stick to what works with VWAP trades.
Kenny “The Warlock” Glick
August 23 2022