I always kick myself when I don’t listen to Trader Scott and I miss out on opportunities to trade moving stocks, or better yet, moving sectors. He continually nails them and oftentimes my attention just gets focused on something else. This happened with the cannabis sector which has been on the move in the past month or more. Yes, I did trade in and out of OWCP a couple of times with good profits, but I really regret not paying more attention to CANN. This stock was 1.08 on October 30 and hit a high of 10.49 on January 3. That’s a 10x return on an investment in 2 months for anyone who would have read the pre-market comments and followed Scott’s lead.
From December 29 pre-market:
We really nailed the rally in the pot stocks – 4 weeks ago we started saying to buy the pot stocks into reactions, for more than daytrades, and gave a list. That’s exactly what we did. I have a double in CANN in one week. And looking to take some profits today. It’s at huge resistance. I gave that trade out for anyone who bothered to look at the trading video. And we gave MSRT, with the SOSes, in the 12/7 premarket at .29. It has been a real beauty, .70 today. And back into resistance. The pot stocks are in a huge bull market, and the big reactions are the opportunities. You know the list, we’ve discussed them numerous times.
And he even gave warning to cut position sizes and get out on January 2 saying:
Still long some CANN from 2.67, but volatility is coming into pot stocks (you know the list) and they are loved by a lot of people right now. Still trading opps, but “cut way back”.
It doesn’t get much easier than that and then what happened? The pot stocks got clocked yesterday, pretty much the whole sector. CANN was among them. It had closed on Wednesday at 10.38 and opened yesterday with a gap down and just plunged from there all the way to 6.18. That’s almost a 40% loss.
Lucky for me, it captured my attention. Maybe I’m just attracted to drama and bloodshed, but the more it fell, the more interested I became. There’s nothing like the site of the weak hands letting go, so I just had to sit there and wait like a predator stalking it’s prey for that perfect set up and get in on the bounce, because it was going to bounce.
The question is – when? Well, lucky for all of us who have watched Scott’s videos and read his posts about 123 set ups like this one, I was almost 100% certain where this thing would turn around. I didn’t nail it at the very bottom, but got pretty close at 6.35. I got a nice trade in pulling out about 25% + in profits while having to only hold on for a little over an hour. I was happy with it. Hitting singles is what I do best. Lots and lots of singles.
Trader Scott and I often joke about how too many people focus their attention on gold and markets that don’t move. Meanwhile, there’s plenty of gold to be found every single day, many times per day in stocks that are on the move. And there’s plenty of gold to be found in the pre-market comments.