Fistful of Dollars

Nearly all of our trades did well in 2020 which was helped by the momentum of the big dogs coming out of the COVID crash.

The reality is most trades will be average to bad.

However, a few will be the big winners - and they are the ones we need to watch so that we can add to them.
Failing to add to the winning trades will often mean missing out on good profit over the long-term.

Traders spend a lot of time trying to time the market to perfection - but profit can still be made by entering a trade at not such an optimal time.

Remember LLY and AMD?
LLY went into consolidation for almost 6 months in what seemed like a good entry at the time.
It is now over 75% in profit, excluding the compound.

AMD also seemed like a good entry at the time but decided to go into a shorter term consolidation before breaking out and moving up over 150%, (excluding the numerous compounds).

While we expected to see growth in LLY and AMD, which is obviously the reason we entered the trades, we did not expect either to provide such good returns so quickly.
And these two stocks were not even our biggest winners for 2021.

The point is we want a low-risk set up and we test a few different trades.
Most will be average, some will fail but a handful will go on and exceed our own expectations.
It is when these specific stocks offer the opportunity to compound, we should consider doing so.
These compounds are normally done when price is going against the emerging or primary trend, so will often feel a little uncomfortable.

Again, we do not need the optimal entry to make money from the markets.
Time offers us longer-term traders an edge.

Let's go trade!