In our first episode of Hungry for returns, we are going to talk about what to do when your stock drops dramatically, 20% or more. Should you stay in the position and wait for a bounce, or should you get out?
Posted at: https://tradersfly.com/2018/07/stock-dropped-20/
★ REGISTER FOR A FREE LIVE CLASS ★
★ GETTING STARTED RESOURCE FOR TRADERS ★
* Please note: some of the items listed below could and may be affiliate links **
* Trading Software / Tools *
★ SHARE THIS VIDEO ★
★ SUBSCRIBE TO MY YOUTUBE: ★
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
FREE 15 DAY TRIAL TO THE CRITICAL CHARTS
GET THE NEWSLETTER
STOCK TRADING COURSES:
STOCK TRADING BOOKS:
MY YOUTUBE CHANNELS:
- TradersFly: http://bit.ly/tradersfly
- BackstageIncome: http://bit.ly/backstageincome
Aaaannnd that's why I don't hold through earnings. And also why I don't give 50% of my portfolio to any one stock. When you assume that kind of risk profile you're asking to get burned, imo. Risk management is everything.
Bobby Bobby there’s nothing calculated about holding through earnings, it’s a pure gamble. The opposite happens all the time, good earnings and stock plummets, bad earnings and stock breaks out (look at Tesla this week). There are always plenty of high probability moves to be made, one should never have to resort to gambling. And if you do at least do it with an options spread so you have some protection in an opposite move.
Holding through earnings is a calculated gamble.
If I see a stock declining before earnings, I usually go long, never short.
If I see a stock having no dips before earnings, I usually go short, never long.
If it's going sideways, I stay as far away as possible. I'm not a mind reader.
I always do smaller position sizes on those swing trades, but for example when I saw AAPL and SQ dip a bit before earnings, I couldn't resist. The fact that other people are afraid of earnings, can often be a good reason to play earnings yourself, but I totally understand the risk management thing. Personally though, I find earning reports plays my most profitable plays.
Thanks for your help! For me I think he needs to know sale off sometimes is working even if I lost money ! Coz I will take some hit ! But later wait the stock to take it foot to the upside and take all my money out from it and gain everything I lost !
Yvan Roy Sasha has videos out there that will answer any questions you have. I have been following him going on 4 years now almost had to believe that I have been following him that long. He’s good and I hope you will continue to follow him like I have been doing. Options will open an entire door to your learning curve, so I hope you will take the time to learn the basics on how they work and will/can have an effect on your portfolio
Michael Perry - Very true. I've purchased several books and will be buying more. Options are something I will learn about, because I need to know how different things work before I settle on a specific area.
I also see things a little different because I option trade. In my opinion everyone should learn how to option trade a little just so you can hedge when market condition change. Its also opens the door to make money no matter what direction things are going if done right and your time is right. I just asked Sasha what he thought about a calendar spread on Apple. If your not familiar with Options/ Calendar spreads go through Sasha's Videos on Options, Calendar spreads.
I happen to like the Financials with higher interest rates coming in the future. So in my opinion load up on the shares now and wait on the Feds to raise rates. Sure some people would disagree with me, but that's ok. I keep in mind that we all are speculators in the market, some are better at reading market conditions better then others.
I said Calendar spread. The call would be in the further month and put in the closer month for that short term sell off after all that hype over their earnings. Long term play on Apple I would have to agree with you if you are going to buy and hold and keep buying on the dips. I would not chase it higher at the 200 mark, I would wait to for a little bit of a pullback($195) maybe before I would pull the trigger and buy.
Owned buildings at another site may be used as alternate workspace if a building cannot be occupied. This depends upon the location of the building and whether the building would be affected by the same hazard that prevented use of the primary building. The alternate facility may be a viable business recovery strategy if the building can be configured with the required equipment or existing equipment can be configured to need business requirements.
Systems and Equipment.
Evaluate these systems to determine whether they meet the needs of the program. Identify and plan to overcome emergency communication system limitations such as weak radio or cellular service or areas where a warning system cannot be heard. Upgrading this critically important system may be required. Verify that these systems are in reliable working condition.
If fuel, battery backup power or batteries are required, make sure the system can run for the required time and chargers are available. Document how to operate these systems and mark the locations of controls. Make sure the information is available during an emergency. Many of these systems also require periodic inspection, testing and maintenance in accordance with national codes and standards. Train staff so a knowledgeable person is able to operate systems and equipment.
Materials and Supplies.
Be sure to compile a list of available resources using the Emergency Response Resource Requirements and Business Continuity Resource Requirements worksheets as a guide.
Preparing for an emergency, responding to an emergency, executing business recovery strategies and other activities require resources that come from outside the business. If there were a fire in the building, you would call the fire department. Contractors and vendors may be needed to prepare a facility for a forecast storm or to help repair and restore a building, systems or equipment following an incident.
The following external resources should be identified within plan documents. Include contact information to reach them during an emergency and any additional instructions within the preparedness plan.
Public Emergency Services.
Contractors and Vendors.