Trade what you see, not what you think or feel... bulls win, bears win, pigs get slaughtered...Pumpers should be slaughtered but they are only half guilty. The other half of the blame is with the trader that fell for the pump.
Fear and greed are your main foes. Overcoming these 2 string emotions is the key to succesful trading.
Trade on your own convictions, not someone elses. The person in some chat room who alerted it will not be there when you need them most. And 98% of the time he/she bought it a day or 2 ago much cheaper, then went and started pumping in his/.her chat room, message boards, etc. When the sheep flock he dumps his cheap shares on their heads at a healthy profit, leaving them holding the bag. Why? Because once he is out of the trade he/she wont be there to hold your hand and let you knwo what to do. you will be left at the mercy of greed and fear. This is usually done with low float, cheap stocks because it doesnt take much volume to pop it. Likewise, it does not take much volume to drop it.
Stocks generally move like this--stairway up, elevator down.
Hence why i prefer the short side. Yes, i am capped at 100% gain and theoretically unlimited loss, but that is only a case when a trader hasnt planned the trade prior to entering it. I limit all my shorts to a 10% loss--if it hits, closes automatically.
Risk management--If you cant learn it, dont bother trying to trade. Took me many years and many blown up accounts to overpower my personality traits that made it impossible for me trade profitably and consistently.
Im impulsive by nature and in my regular life, a pretty emotional person. The only area of my life where ive been able to train myself not to be at the mercy of my emotions is in trading. Althouh it took many years and lots of money. That being said, my old self occasionally creeps out and i have to beat it back down with a stick lol
Plan your exit/entry/profit targets/loss BEFORE entering a trade. If you dont then you are at the mercy of emotion and every move of the stock. Plan it and stick to it, hell or high water. Even worse if you enter based on some persons alert, 'boooom', 'vaavaavoom' 'i called it' or any other attention grabbing headers.
By this time the trade is done. Some who do this, do it to feed their ego. Some do it to prove to others but mostly themselves) that they are competent traders. And the nefarious types do it to entice new buyers so they can sell their shares.
Be wary of traders that call out a dozen alerts without any definitve info as to if they entered or not and what price. Usually the post will be, " XYZ somethings up"..... Then 2, 3 days later... "Booommmmm, taking 40% gains"... Thats great but abt the 11 others you called that did nothing? And if you entered the trade why not be direct and upfront with your entries? Example-- " Taking a starting position in XYZ at $6 will add if it is acumulating...stop loss 5.80, 1st target 6.60...2nd target 7..."
Trade to trade another day. You wont become a millionaire in a day, week or month. Consistency over a long period of time is the tao (way). But without capital this not possible.
Dont take it personally. The market doesnt know you are there, nor does it care. Leave your ego at the door.
Having no position ( being in cash, on the sidelines) is a position too.
Patience is imperative. Wait for your edge/moment/price and strike. Impatience leads to impulsive/emotional trades.
Have rules and stick to them. If you cant do this dont bother trying to trade..It wont work
p.s. Ive been here at the lion since 2009/2010 or so... If interested i know who the pumpers are, who are paper traders out for worthless glory and whose alerts i wouldnt follow if my life depended on it. I mostly lurk because i dont feel im of any service by just yelling out alerts. I trade for myself, not for anyone else and so should any trader.
p.s.s. current folio is the 3rd one..ive reset it 3 times. Holding some dogs from begofre switching to short side. But all in all, have done 10x better on the short side then long...