I'm pretty excited! Quite a few blog posts coming from me for this weekend. First, I'm going over my weekend play.
First, for reference:
My Thoughts Series: WKHS
My Thoughts Series: WKHS (Update 1)
I first checked out this stock back in June when it had some hype around it about the SureFly. I decided not to play it though, because I'd been overly-cautious playing stocks I thought would have an upcoming offering, and at the time, just wasn't experienced enough to make a smart play on it. Looking back at that missed opportunity, and others previously, I'm going to revise my thesis on those types of trading plays for the future.
Anyways, after more studying the past month (still have months more to go!) I remembered something today as I was checking over all the stocks on my watchlist. There was a PR earlier this month on July 10th about another airshow, but this time in the US:
Workhorse Group Inc. To Display SureFly™ Helicopter Concept at EAA AirVenture Oshkosh
"That's this week!" I proclaimed as I was re-reading the dates. Pre-announced news taking place after a weekend, when the stock is trading at a favorable buying level, with not much interest on the trading day before, "Where have I seen this before?"
Oh right! It's a Tim play.
#4929-4941: The Best Stock For Tomorrow And How To Plan Ahead Of Time
#4942-4944: How I Made $5,000+ Today Buying The Rumor, Selling The News
Now, since I had been checking on this stock the past week, keeping my chart up to date with trendlines to get a feel for how things were going, as I had already planned a future trade back in June for late July/early August as I expected more hype going into earnings season, I saw what I hope to be a great play developing.
Here's my chart:
Now, Tuesday had some interesting late afternoon buying. I wasn't going to buy into that, no real reason to so I waited. Yesterday all around had some crazy morning selloffs and runs, so I decided I wasn't going to touch it either. Today, I missed most of the trading day, but I came in for the mid-late afternoon session and saw the price and thought, this is absolutely perfect.
For the first time, I see a play like this developing in front of my own eyes, without a TimAlert going off, or without reading someone else's blog about the opportunity, and I'm referring back to a previously learned lesson about a month ago on the same stock in a near identical setup.
I confidently took the trade. I'm in 2k shares at $2.87 over the weekend.
The chart shows the stock wants to stay about $2.82. Even though my risk is $2.70, that's a possible $340 max loss. Upside, well recent high of $3.23 and a recent history of being able to trade quite a bit above that, but let's say I use the high as my max profit. That's $720 profit.
About 1:2.1 risk/reward which might not sound great, but that's using my 'sell no matter what' risk level of $2.70. Not being so extreme, let's say I risk down to $2.82 instead, so my risk is now only $100. Now, my risk/reward is 1:7.2, which is far more favorable and inline with a trade Tim is trying to teach us to take. I should also lower the reward as well some, but you should get the idea.
I basically see this as a very low risk play that has the potential for great reward, and if it doesn't work out, it doesn't work out, but I had a solid reasoning to take it in the first place, and you can't really ask for more than that with this stuff.
Taking this trade is going to be representative of my current progress, and actual results of the hard work and effort in watching lessons, videos, studying, and paying attention to Tim. This stuff is not easy, and I already know I have a lot more to do, but being able to have a meaningful trade so soon really speaks to the potential of Tim's teachings if you keep at it, and really work towards your goals.
Anyways, at this point, I'm getting more and more hyped to keep watching Tim's materials and really studying and preparing for future trades. I'm on the second disc of "How To Make Millions" right now, and it's just great. I can't wait to get through that, then get on with the other videos, then eventually sign up for Silver and start working my way through the lessons from the start, then join the millionaire challenge program once I feel like I'm ready to step my game up to the next level. Still months/years maybe away, and quite a path in front of me, but I'm ready to roll.
That about wraps up this blog post. I'm really excited to see how this trade turns out as I feel like I am starting to get what Tim is trying to teach us, and starting to understand how to actually apply it.
i basically learned or did the same thing, i had a sticky note on my wall since that pr. Good thinking but we should both realize now that we arent the only ones looking to do this so we have to sell into strength. gl to us on monday
@christianjohn7 Awesome! Good luck to you too today!
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