Making One Million Dollars in One Year

Making One Million Dollars in One Year

Making One Million Dollars in One Year 1024 546 Steven Dux

Example: $SMIT

This week’s lesson is about knowing when to take profits and an excellent example is $SMIT. The stock traded up towards $4.10, and as the resistance was holding tight, I shorted the stock at $3.95 at about 10,000 shares.

This trade made about 5k in profit, however, I could’ve been more patient to earn $7-$8k, but taking the profit eliminates any risk of losing. When looking at your own trades, taking partial earnings can be safer if it ends up going against you.

We call this locking in your profit, and by doing so, you cover your cost just in case.

Micro-float stocks

I also want to talk about micro-float stocks, and these types of stocks are something to be wary of. Two stocks to watch are $MTSL and $PED because both have super low-flow floats.

When it tries to consolidate and the volume starts spiking again, you can treat this as a bounce short. However, if you find yourself doing this a couple of times, the price will begin to neutralize. Try to stay cautious when the press starts to neutralize, you only need about 20, 30% to get a bit of resistance, and that’s very easy to do.

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