Our biggest winning trade in 2017 was ADBE. We entered on 01/19/2017 and as of this writing over a year later, we are still holding it for what has been a +75% run… That may sound like a lot… What actually made this a significant winner for us, however, actually had more to do with our position size!
The closer we’re able to enter to the price that we intend to exit at if we’re wrong gives us a HUGE EDGE! Here’s what I mean…
For this trade we entered at $111.09. Our initial stop loss was set at $106.87. Only -3.8% from our entry price.
75% / 3.8% = 19.71… So far we have made 19.71 times the amount that we initially risked!
Now lets look at this same trade had we risked the conventional 8%…
75% / 8% = 9.375… Our biggest winning trade is cut by more than HALF if we drop our initial stop loss down to 8%!
Don’t arbitrarily place your stops!
As you’ll see in the video (click the image above), where we place our initial stops and how we raise those stops has everything to do with the chart. Some of the questions we need to ask ourselves include:
- Where is support?
- Is there a significant moving average?
- Have trend lines been formed?
Once we know the answer to those questions, ideally we are able to place our stops below all 3. The reason why is because when all 3 are broken, it is typically going to result in a definitive change in the trend. Our goal for the trade is to capture the bulk of the move and to ride the trend for as long as possible. We never catch the exact top BUT we are able to ride massive trends like this and while we had other BIG winners last year, this one trade alone could have easily made our entire year!
Never Give Up!
Prior to this trade, 4 out of 5 of our previous trades had been losers… HAD I GIVEN UP I would have missed out on my BIGGEST WINNING TRADE OF 2017…a stock that I’m still holding!
It really does take perseverance and sticking with a system that you know works in order to achieve massive returns! I urge you…DO NOT STOP, DO NOT QUIT! What you’re seeking is just around the corner!
This trade and others like it were part of the Advanced Stock Reports “Model Portfolio”. This portfolio gives the full trade plan ahead of time and shows you exactly where to get in, where to get out, and how much to risk. It is super easy to follow along with even for someone that still has a day job like me.
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