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Quick question.

Would you trade this VCP pattern in the making? Yes/No? And, why?

To all those who are saying No because the current market ain't right for upside breakout trades, please look at the timeline of the picture. It is from 2016/17 when almost every stock exploded.

The majority answered Yes but for me, it's a NO. I'd pass this 2T VCP/CnH because even though the 2nd U shape is smaller in size by 70% but this U formed at a huge distance away from the 50 DMA line a.k.a EXTENDED.

1/n

The odds of profiting from the get-go are much better when breakouts happen 'closer' to 50dma.

As you can see in the picture, the price stayed sideways until the line caught-up with the price. Had you traded this breakout, you would have sat on a dead trade for 5-6 weeks

2/n

After covering the distance, when that same bloody formation was spotted, look at the result yourself. This is an eye-opener for everyone who said YES and for everyone who said no for a different reason.

3/n

3/n

I don't check DOW late at night and worry about what it will do. Never done it in many many years I can think of. Yes, when I started out I used to. Futile exercise it is.
#BroTip

4/n

I don't worry about gap downs like most of you do. No gap down can wipe me out because I position myself that way. It can at max damage me 2-3 or maybe 5% something I can recover from.

P.S: No gap down has ever hit 2% of my port forget 5. Position size is the key.
#BroTip

5/n

I don't have any indices on my screen. I can swear by my life that I don't know where NIFTY and Sensex are. They don't make money for me. Stocks do. And stocks make those indices.
#BroTip

6/n

From the time I have gathered the right skills to make money, I have NEVER had any large losses. I will not let a small loss snowball into a big one. Will happily take a small hit, step back and hit again when I see a trade.
#BroTip

7/n

I catch falling knives contrary to what has been preached by many (Including me in my starting years). Every falling knife slows down at some point which is what I try to catch. The R/R they offer is way better. Best is you can do SIZE as..