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Wow Traders. I don’t know exactly what
to say, but I feel obligated to give you the best explanation I have
for the situation we all saw today. MNRJ started off nicely.
It hit a high of .17 with a very nice 20% gain in early trading — but
then it completely fell off a cliff, hitting a low of .07 just a few
hours later. That is NOT THE KIND OF VOLATILITY we are ever looking for. I don’t think anyone could have ever predicted that kind of swing.
Myself and everyone on our team were completely shocked today when we saw this happen. We always encourage our members to "bracket their trades" and "remember to use stop losses".
Personally, I try to limit losses to about 10% on the downside and I
always sell at least half my position at around 25% on the upside.
Those are just my rules, and they have kept me profitably in the game
for a long time. Today, it was a lifesaver.
When
a stock makes this kind of dramatic move lower all I can hope is that
all of my members were cautious and were not too hurt. I know that is
not the case for everyone, and I am sincerely sorry for anyone with big
losses right now. This is the kind of situation that makes me honestly
hate the stock market. Yes, you read it right. I never claim to love
the market, I just try my best to grind out profits from it.
I
know these kinds of trades are rare, but they are inevitably going to
happen sometimes. That doesn’t help me or anyone else get over these
kinds of trades though.
So
what happened? I still don’t know for sure and not that it matters, but
my guess is simply that the stock finally ran out of steam this
morning. Remember, MRNJ gained over 100% in just a week on massive
volume. While we all thought it was going to go higher still, clearly
we were wrong.
Lots
of stocks hit a wall, but why did this one crash so hard? My guess is
that there were already so many speculative traders already in it and
when the momentum was gone there was a stampede for the door. And
selling induced more selling, etc.
Before
you know it, we had a full blown panic. If there is a silver lining it
is this — when there is panic, there is also opportunity. I have no
idea where this is going to settle down at. All I know is that when the
dust settles, there could still be another powerful rally and you
should watch out for it.
In
this situation, I think it is best to take a step back and let the
super-aggressive traders sort out where this is going settle down at.
Wait until another trend is established and try to profit from it.
Why try to pick a bottom here and take a complete gamble?
I am going to recover from this the best way I know how — BY BAGGING ANOTHER BIG WINNER.
I know there are plenty of other great ones out there just around the
corner, we just have to find them. Our team already has several great
looking ones on our watchlist. I will be working all weekend to find
at least one more great one for us next week, so be on the lookout for
it!
Thanks
for staying with me on this. The "Congregation" is a powerful force,
and we will continue to rock the market. This is just a minor set back,
but we will come back with a vengeance. Lookout for my next big alert
next week.
Best Regards,
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