14 Jul 20 Market Watch

Hi, The Growth Hunter here.

A quick update on the market condition. Continue to stay nimble until the general market shows a clearer picture. Once things smoothen out, we can start to add into potential setups.

Do not beat yourself up for the stocks that hit your stop losses.

Instead, evaluate whether you took the correct setup. During your evaluation, if you believe that you bought at the breakout point from a proper base setup, then the stock coming back into your stop could either be (1) normal(cause about 40-50% of stocks fail their breakout) or (2) you bought at the wrong timing as the overall market could be extended.

Stop losses protect your account from taking huge blows and it should help you psychologically. During better times, your profits that you will continue to ride will outweigh all the small losses that you took.