- Jason Bond Picks
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- Managing risk when a trade pays off
Hey Guys and Gals,
Sometimes you just make the right call on a trade.
But as much as I like to grab as much cheddar as possible, I’m also hyper-focused on protecting my money.
When you’re dealing with penny stocks, that’s a HUGE deal.
Volatility is all over the place.
Sometimes, if you don’t move quickly enough, you miss the peak - and the profits.
To illustrate this point, let’s look at a trade that I nailed yesterday: Conifer Holdings (CNFR).
The company just completed a big sale of some of their business operations, so there was an opportunity there for a potential move up.
I bought at $1.06, hoping for a strong move.
CNFR then started its march north on the charts.
Up and up it went.
It became Decision Time: do I let it ride and see how high this can go?
Or do I cash out my chips and get away from the table with a profit?
Well… both.
I started cashing out some of my position early - both at around $1.24 and in the $1.30s.
By selling at intervals, I can take profits and still keep some money in the “game” to see how it goes.
I was out of my position in the $1.30s, but I kept traders on top of this one because it just kept going.
This morning, CNFR opened up around $2 on what I call a supernova breakout:
That’s some good stuff!
But it bears repeating: for my personal comfort, I play these breakouts in stages to manage my risk.
In my mind, profit potential and risk management go hand-in-hand.
Look at that chart again: it’s not like it moved up in a straight line.
And right after that peak, the stock settled down and a lot of percentage points came off the board.
It’s the double-edged sword of trading smaller-priced stocks like these.
That’s why you need a clear trading plan to trade penny stocks.
It doesn’t have to be fancy or complicated.
It DOES have to be clear.
I give traders my trade plan in detail inside Jason Bond Picks.
And every time I use it to make a trade - just like this CNFR trade - I send out a real-time alert.
Traders in Jason Bond Picks saw when I bought CNFR.
They saw each time I sold off portions of my holdings.
And I even kept them alerted to the potential after I was out of the trade myself!
What better way to learn to trade than by watching them go down in real-time?
I’ve got a 3-step process for handling any penny stock trade.
Let me show it to you so you can understand how I trade… and make trades with it yourself.
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