News Trading Strategy - Positive Return Challenge Review #7
1) I took the opportunity to buy a stock that favours Trump's winning the US presidential election also known as Trump Trade.
2) I am trading based on the prediction from various "reliable" sources that Trump will win the race. $Trump Media & Technology (DJT.US)$ and $Phunware (PHUN.US)$ were also up +10% and +20% in the past 14 days further reinforce the forecast is correct.
3) At 5 pm (SGT), the stock soared 13% in the pre-market when Trump was projected to win in several swing states. When the intraday market opened, the stock surged +15%. Although I was tempted to hold for a higher price (greed), I decided to paper hand and earn +6% ROI or weekly P/L +5%.
4) Lesson learned: News Trading Strategy is risky and the key is to have a few "reliable" sources of information. It is important not to let greed cloud your decision to sell at the P/L target set. One must have an exit plan to cut loss if the stock price goes in the opposite direction (Discipline and DYODD).
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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