We Want to Be the Momentum, Not Enter on It

I want to give you one rule today, and it's the opposite of what feels right, so pay attention.

We want to be the momentum, not enter on the momentum.

Here's what I mean. When a move gets big enough that you notice it, the people who are going to make money on it were already sitting there before you showed up.

You're not catching the move at that point. You're the person they're selling it to.

So I do the whole thing backwards from how most people trade it.

When one of my positions gets a big boost, that's my signal to take the money.

Not to add, not to let it ride, take it.

Because a boost like that is momentum, and momentum is when everybody wants in, which means everybody who wanted in already is now looking for somebody to sell to.

And when something I want is getting hit? That's usually where I'm mapping out where support is and finding the levels where the buyers usually defend.

I know. It feels awful. It's red, it looks scary, nobody wants to touch a stock down there.

The big guys are buying it right there.

So you get it at a cheap price, at a nice point, and you're on the team you want with them on your side.

Try this on something you're watching this week. When it rips, ask yourself who's buying it up there. When it dips, ask who's buying it down there.

One of those answers is you and a bunch of people who just noticed. The other one isn't.

Rock On,

Voz

P.S. Trade with me for the next 30 days and let’s see if I can make you a better trader. It won’t cost you a dime, just give it a shot.