Lesson Learned, Again
Fool me twice, shame on me
Last week, I placed a buy stop on $OKLO to pick it up if it bounced off the 20-day moving average. In a matter of hours, the price spiked, triggered the buy stop, then plunged below my 5% protective stop, and I said goodbye to just shy of 0.5% of the portfolio.
This shouldn’t have been a surprise to me. I actually wrote this when I placed the buy stop order:
We have had trouble getting into nuclear stocks because they tend to move more than 5% regularly, and we’ve never been able to find an Advanced Entry Point that would allow us to take a position with a 5% protective stop below a visible line of support.
Next time I describe why I shouldn’t take a position in my explanation for why I’m taking a position, I think I’ll stop and reconsider.
Besides that, the model portfolio is almost 90% invested, everything else is up, including three and a half positions with double-digit gains.
The charts are courtesy of StockCharts.com. We use Adam Sarhan’s FindLeadingStocks.com for market research. This post is for educational purposes only and does not constitute investment advice. Trading in the market is risky, and you are responsible for your own trades. Consider working with a licensed professional for a complete financial strategy. This is a model portfolio, which means the decisions are real, but the trades are simulated for demonstrative purposes. You can check out a Google Sheet of the model portfolio any time.